Dechra - Sustainability Report 2022

Our Sustainability Framework

The Sustainability Framework is aligned with our ambition to make a difference through the sustainable improvement in global animal health and welfare. The culture of the Group has enabled sustainability to be embedded into achieving this ambition.

Our businesses deliver high quality products and services to veterinarians worldwide. We are committed to acting responsibly and with integrity, respecting the laws, regulations, traditions and cultures of the countries within which we do business. Everything we do is underpinned by our Values and this is the basis for our Sustainability strategy. This strategy is centred around four Sustainability pillars: Business; People; Environment and Community. Our priorities are:

to provide sustainable innovative products, technical and educational support and to act responsibly and with integrity with all stakeholders;
to be a great and safe place to work;
to minimise the impact of our operations on the environment by adopting responsible environmental practices and complying with applicable environmental legislations; and
to contribute to the social and economic welfare of the local communities in which we operate through the donation of our time, products and cash.

The Board is ultimately responsible for the oversight of Dechra’s sustainability impacts, risks and opportunities and has delegated responsibilities to specific Board Committees, the Senior Executive Team and other key committees (ESG, Health, Safety & Wellbeing, Packaging & Logistics and Regional Giving committees). We are committed to implementing a strategy which creates and maintains long term value for all stakeholders.

Our Sustainability Ambition: Dechra Making a Difference

Corporate Governance

Task Force on Climate Related Financial Disclosures (TCFD)

Our Sustainability Strategy

Our Business

Our Environment

Our People

Our Community

Our Value

Our Purpose:
Sustainable improvement of animal health and welfare

TCFD

Our response to climate change

For the first time this year, we have reported under the requirements of the Task Force on Climate-related Financial Disclosures (TCFD). We welcome the opportunity to be transparent about what we consider to be the risks and opportunities arising from climate change and how we plan to respond to those factors to create a more resilient business.

Further details about our approach to climate change can be found in our full TCFD disclosures within our 2022 Annual Report, but we have summarised below the key conclusions resulting from the four themes within the TCFD recommendations.

Governance

The Dechra Board is accountable for approving our Sustainability strategy and overseeing the delivery of our climate-related objectives
Executive responsibility belongs to the Chief Financial Officer with support from the Group Sustainability Director
The Senior Executive Team (SET) is responsible for delivering on these objectives within their functional areas and business units
Factors relevant to managing climate risk are specifically included in the bonus objectives of each Executive Director and SET member

Strategy

We have assessed the potential impact of climate change over a 30-year time horizon under two scenarios:
- 1.5°C temperature rise
- 4°C temperature rise
Our Making a Difference plan has been developed and includes the following long term commitments:
- Submission and verification of GHG emission reduction targets with the SBTi
- Long term target to reach Net Zero by 2050
- Supporting the UN backed Race to Zero campaign

Risk and Opportunities

Following an extensive review of the possible impact of climate change on the Group’s business model, we have identified four key risks and one opportunity:
- one physical risk resulting from the increased frequency of extreme weather and climate-related natural disasters
- three transition risks relating to carbon pricing and future environmental taxation, the supply-demand of renewable energy and the change in raw material or sourcing cost
- A possible opportunity from the increase in demand for low carbon products

Metrics and targets

We report our Scope 1, 2 and 3 GHG emissions on page 65 of the 2022 Annual Report
We have five climate-related targets as follows:
1. Scope 1, 2 and 3 carbon emission science based targets to be verified by SBTi in 2023
2. All paper and wood material to be FSC by June 2023
3. Zero waste to landfill by 2025
4. Perform a sustainability review of all sold products by June 2025
5. Achieve Net Zero by 2050