Inchcape : Sustainability Report 2023 (10.97 MB)

THE GLOBAL MOBILITY TRANSITION, DELIVERED LOCALLY

Inchcape Sustainability Report 2023

CONTENTS

3	ABOUT US	17	PLANET
5	CEO's introductory statement	18	The lowest carbon route
7	The global mobility transition,		to market
	delivered locally	21	Achieving our Targets
8	Inchcape's role in the	23	Circularity and Waste
	mobility transition	25	PEOPLE
9	Inchcape's global
26	Talent and Development
	perspective on the
	mobility transition	31	Early Careers Programme
12	Culture and Values	32	Health & Wellbeing
13	Materiality Assessment	33	Health and Safety

34 Integration and Onboarding

- Welcoming our new colleagues

1. Expanding our footprint in APAC: The Philippines
2. Inclusion & Diversity

1. PLACES
2. The Places Pillar

1. Social Mobility
2. Safe Mobility

44 PRACTICES

1. Ensuring world-class standards
2. Cybersecurity and Procurement
3. Governance

1. APPENDIX
2. Appendix - GRI Content Index

62 ACRONYM GLOSSARY

About this report

This report contains information about Inchcape's approach to sustainability and sustainability performance. It has been prepared in accordance with the Global Reporting Initiative (GRI) reporting standards. Please refer to pages 51 of this Report for the GRI content index.

Inchcape's disclosures on the recommendations of the Task Force for Climate- Related Financial Disclosures (TCFD) can be found in the Annual Report.

This Report has been reviewed by the Board of Inchcape, including the CSR Committee.

References to 'Inchcape', 'the Group', 'the business', 'we' and 'our' refer to Inchcape plc. Data provided is for the period 1 January 2023 to 31 December 2023, unless otherwise stated. All financial figures in this report are in £GBP, unless otherwise stated.

INCHCAPE SUSTAINABILITY REPORT 2023 2

Introduction

Planet

People

Places

Practices

Appendix

INCHCAPE AT A GLANCE

Inchcape is the leading independent global automotive distributor. We are a business delivering sustainable growth and cash returns, with a diversified geographic presence in over 40 markets worldwide.

We partner with our mobility companies unlocking opportunities through our people and technology. We use our in-market expertise coupled with our advanced data analytics to deliver outstanding performance for our partners and to build stronger automotive brands.

				Introduction
				Planet
Our Purpose
Bringing mobility to the world's
	People
communities for today, for
tomorrow and for the better
				Places
£11.4bn	175+	40+
Revenue 2023	Years of successful	Markets		Practices
	international trade	worldwide
22,000	60	43
	Appendix
Colleagues	Brand partners	Deals since 2016

(includes M&A and contract wins)

INCHCAPE SUSTAINABILITY REPORT 2023 3

2023 SUSTAINABILITY HIGHLIGHTS

ACHIEVEMENTS
6.6%	40+	800+
Reduction of Scope 1 and	Installed solar power at	Enrolled people in our
2 emissions year-on-year	over 40 Inchcape sites	Early Careers programme
100+	35
Women graduated from	Markets rolled
our Women into Leadership	out updated
programme	Code of Conduct
21	28%
Road Safety initiatives	Women in senior
deployed across our regions	leadership positions

Carbon Disclosure Project	Sustainalytics
(CDP)	Our ESG Risk Rating score of
We scored a B on our climate	11.4 places us in the low-risk
change disclosures, awarded	category for ESG Risk.
for our work in managing the
environmental impacts of our
business. This is an improvement
on our score from any prior year.

OUR 2023 HIGHLIGHTED ACHIEVEMENTS

ONSITE SOLAR

GENERATION

20

WOMEN INTO

LEADERSHIP

29

'MOBILIZING HEARTS' PROGRAMME

41

CODE OF CONDUCT

ROLLOUT

45

INCHCAPE SUSTAINABILITY REPORT 2023 4

Introduction

Planet

People

Places

Practices

Appendix

CEO's introductory statement

Duncan Tait

Group Chief

Executive

I am pleased to share Inchcape's Sustainability Report for 2023, detailing a year in which we've enhanced our approach to sustainability, adding significant focus to our role in the mobility transition.

We have made excellent progress

since launching our Responsible Business framework in 2021, and it is now time

to take the next steps on our journey. In this foreword, I'd like to reflect on the changes happening in our industry and our position within them.

A changing industry

In delivering mobility, Inchcape meets a key societal need. Mobility allows people to live their lives, perform their jobs, and visit their friends and families. There is also an intrinsic link between greater mobility and faster economic development. By delivering on our purpose, which is to bring mobility to the world's communities, for today, for tomorrow and for the better, we are making an important positive contribution to the communities that we serve.

However, the way in which our industry currently delivers mobility is unsustainable. The industry is overly reliant on fossil fuels and is a significant contributor to global emissions, with road transport accounting for over 15% of global energy-related emissions (IEA). Beyond direct emissions, there are other challenges such as the lifecycle of vehicles, and their components, not being sustainably maximised.

In many of Inchcape's markets, there are still more obstacles. Much of global thinking on the mobility transition has been in the context of developed markets rather than the developing ones, in which Inchcape operates. Different countries will need different solutions across different timescales.

This is where we can help

Our mobility partners are actively responding to these changes, with vehicle portfolios shifting to New Energy Vehicles (NEVs). Demanding sustainability goals are being implemented by our mobility partners and governments. And we must play a role in guiding our partners to the best solutions for our markets.

The changes underway in our industry, which involve both the mitigation of environmental impacts and the recognition of societal role, mirror those happening more widely as we move towards a sustainable economy. These changes are of enormous importance to our mobility partners, and they should therefore be considered central to our own strategy.

As the leading global automotive distributor, we have our own duties within this transition

Introduction

Planet

People

Places

Practices

Appendix

1 https://www.iea.org/energy-system/transport/electric-vehicles#tracking	Read more
	INCHCAPE SUSTAINABILITY REPORT 2023 5

CEO's introductory statement continued

Playing our part

The strides that have already been made by our industry are impressive. In 2020, EVs represented 5% of all car sales globally. In 2023, that number has more than tripled to 18%. This progress is not happening automatically, but is the consequence of extraordinary work from engineers, scientists, companies, communities, policymakers and more, who are recognising and responding to the scale of the challenge.

As the leading global automotive distributor, we have our own duties within this transition.

For our mobility partners, we can help them meet their aspirations by being the best partner for the roll-out of sustainable mobility solutions.

We can play a key role in helping to close the knowledge-gap in developing markets, as our on-the-ground presence in diverse markets enables us to share local expertise and insight.

And to help partners meet their sustainability requirements, we provide them with the lowest carbon route to market, as we work to reduce our own greenhouse gas emissions.

These responsibilities and opportunities are

united in our enhanced approach to sustainability, under the banner of The Global Mobility Transition, Delivered Locally. In the following (see pages 7-8 ), you can find our renewed view on our position and role, and see how we are delivering sustainable mobility alongside partners in each of our regions.

2 https://www.iea.org/reports/global-ev-outlook-2024

This Report

In order to be a part of the sustainable transformation of our industry, we must operate sustainably ourselves. This means measuring and reducing our environmental impact and adhering to strong standards of business conduct. And it means having a positive impact as a member

of our communities, and creating an inclusive environment in which our talent is recognised and developed.

Our sustainability framework captures our approach to these principles under our four pillars: Planet, People, Places and Practices. The body of this report is organised around these pillars, and in each section you can find out about the work we're doing under each pillar, along with disclosures and details on how we govern different topics.

Looking ahead

In many ways, while the world is changing, the core of our Accelerate strategy remains the same: continuing to be the best partner for our mobility partners, and unlocking opportunities for them through our people and technology. The fact that the pace of change is accelerating will make our role all the more valuable. I'm hugely excited about the opportunities ahead of us, which are immense. And I'd like to thank our colleagues, partners, communities and other stakeholders for engaging, challenging, and supporting us on our journey.

This is our first Sustainability Report, and it represents a milestone in the maturity and scope of our reporting. We're constantly working on embedding sustainability further into our business and improving how we measure our impacts.

I hope you enjoy this report, and we look forward to continuing to update you on our progress in the following years.

Duncan Tait

Group Chief Executive

Introduction

Planet

People

Places

Practices

Appendix

INCHCAPE SUSTAINABILITY REPORT 2023 6

The global mobility transition, delivered locally

Why is Inchcape well positioned to respond to these changes?

Introduction

Planet

As one of the most disrupted industries worldwide, the automotive sector faces transformative shifts driven by consumer trends regulatory pressures, emerging technologies and evolving supply chains. The need to reduce global emissions produced by the industry is being met by new low-carbon technologies, changes to infrastructure and shifts in the modes through which transport is delivered.

This upheaval - termed the 'mobility transition'

• is acknowledged for its risks, but also brings unique opportunities for Inchcape to play a pivotal role in steering the course towards sustainable mobility. And we recognise that engaging with and responding to these opportunities is what our stakeholders are asking of us. In our materiality assessment conducted this year, which collected inputs from over 1,200 individuals, 'Sustainable Mobility' emerged as Inchcape's leading priority.

We recognise that the transition is uniquely local in nature

As with other areas of sustainability and decarbonisation, attention has typically been focused on the economic centres of Europe, North America, and Asia - resulting in gaps in data and understanding of other regions of the world, particularly in developing markets.

The transition in the automotive and mobility industry is inherently local, and influenced by factors such as geography, economy, energy mix, local policy, culture and social preference. The mix of transportation solutions found market to market is dictated by longstanding social and historical factors.

The rise of new mobility solutions has further complicated this picture, making a nuanced understanding of the uniqueness of each market crucial for developing winning solutions.

Our core expertise is to provide the most effective route to market between mobility partners and the countries we operate in. This is what we do. As the mobility transition proceeds, this expertise will be of even greater value to our partners, as we share our detailed understanding of the uniqueness of each market. This is particularly important in the case of NEVs, where assessing suitability for a market depends on a careful understanding of the present means and infrastructure of that market.

We can enable an inclusive mobility transition In practice, this means recognising that the mobility transition will unfold differently, and at inconsistent speeds, across different markets. Our presence in over 40 markets worldwide gives us a view on these local variations, and the ability to translate knowledge and learnings from region to region.

At the same time, it's important that advancements aren't forced where they aren't ready. A 'top- down' perspective to determining what solutions to deliver where will inevitably lead to incompatible solutions, as NEVs aren't always the right answer

in all locations all at once. It's important that no market or customer is left behind and that widespread access to mobility is maintained.

This is what we mean when we describe an 'inclusive' mobility transition - one which is informed by local insight, and which respects the requirements and speeds of different markets. Our broad perspective and local experience means we can guide our partners in this, helping them to deliver sustainable mobility in a way that sticks in the long term.

Mike Bowers

Group General Counsel and

Chief Sustainability Officer

People

Places

Practices

Appendix

Read more

INCHCAPE SUSTAINABILITY REPORT 2023 7

Inchcape's role in the mobility transition

Inchcape's role is not just to expedite the transition, but to create a transition that is inclusive and long-lasting, with a commitment to work collaboratively with stakeholders to shape a future where sustainable mobility

is a reality for all.

Expertise and data to support our partners The talent of our people worldwide is at the core of our ability to understand markets and support partners and customers, with a dedicated colleague base of around 22,000 worldwide supplying local expertise and knowledge of their communities. We aim to use our experience and data to serve as a source of expertise for multistakeholder understanding of the transition.

And our industry-leading digital and data analytics capabilities enable us to understand consumers and their needs, providing decision-useful market intelligence for our partners. This supports mobility providers in delivering the right sustainable solutions for each market, while ensuring inclusivity and a wide range of product choice for customers.

An active enabler of new technologies We take an active role as an enabler of new technologies and solutions by supporting our partners in implementing their transition plans. We do this by providing comprehensive end-to-endsupport in the roll-out,lifecycle management and aftersales of products.

We are a trusted route to new markets, and the premier partner for rolling out innovative products and services. This also includes assisting brands in taking EVs to new markets with limited public charging infrastructure.

As an ally in the transition, we support our partners in embracing the next phase of mobility, emphasising sustainability, customer- centric solutions and responsible practices across diverse markets.

Providing the lowest carbon route to market Inchcape is actively committed to playing

a significant role in reducing greenhouse gas (GHG) emissions within our sphere of influence. We provide the lowest carbon route to market for our mobility partners.

As part of this commitment, we have set ambitious targets to reduce our absolute scope 1 and scope 2 emissions by 46% by 2030 from a 2019 base year, and to achieve net zero across scopes 1 & 2 by 2040. You can read more about our emissions goals on (see page 18 ).

Concurrently, we are working on developing intensity metrics to help us understand our emissions per car sold, an important next step in measuring and managing our impact.

Introduction

Planet

People

Places

Practices

Appendix

INCHCAPE SUSTAINABILITY REPORT 2023 8

Inchcape's global perspective on the mobility transition

As the mobility transition proceeds at different paces in different regions, the breadth of our business affords us a global perspective on how to deliver sustainable mobility.

On the next pages, you can read on how we're currently supporting our partners with their ambitions.

22%

of vehicles sold in 2023 are new energy vehicles

2.4%

of vehicles sold in 2023

are battery electric vehicles

CHILE (AMERICAS)

Supporting partners' New Electric Vehicles (NEV) ambitions across a continent

REGIONAL EXAMPLES ON

THE MOBILITY TRANSITION

UNITED
KINGDOM				BELGIUM AND
Removing barriers to				LUXEMBOURG
customer adoption				Launching a leading
				NEV mobility partner

SINGAPORE

Supporting the evolution of mobility needs

Introduction

Planet

People

Places

Practices

Appendix

Read more

INCHCAPE SUSTAINABILITY REPORT 2023 9

Inchcape's global perspective

on the mobility transition continued

SINGAPORE

UNITED KINGDOM

SINGAPORE

Supporting the evolution of mobility needs

As a facilitator of Singapore's sustainable mobility transition, Inchcape Singapore plays a significant role in the country's mobility journey through enabling EV upskilling, Mobility as a Service (MaaS) solutions and the adoption of low- carbon vehicles.

This is key for supporting our mobility partners in the market, like Lexus and Toyota, who have strategies to increase the proportion of electric, hybrid and hydrogen cars they provide.

Advancing EV upskilling

Singapore's nation-wide 'Green Plan 2030' targets 100% of vehicles running on clean energy by 2040. To meet the demand for EV adoption in this market, there's a need to develop EV capabilities including technician skills, charging provisions, aftersales and more.

To address this, we established the Singapore Future Mobility Academy in collaboration with Singapore Polytechnic. In 2023, 236 Inchcape colleagues in Singapore attended our internal courses to enhance their EV skills and understanding through 'EV 101' and 'EV Fundamentals' courses. And we conducted an external course on National EV Specialist Safety (NESS) Certification, with plans to expand the programme in 2024. The initiative underscores our commitment to upskilling our colleagues and communities to address an evolving mobility landscape and help meet national ambitions.

236

Colleagues attending EV courses

Enabling MaaS

As part of a collaboration between Inchcape Singapore, Toyota and Singapore Power, we launched an electric car-sharing initiative - FlexiGo - in Tengah Township, the country's first smart energy town. Providing Toyota BEV and HEV models, the initiative enabled a MaaS solution across Tengah - Toyota's first sharing programme in the region. Additionally, we supported MaaS company Grab, by supplying and servicing vehicles to enable flexible, sustainable mobility.

Partnerships for charging

Charging availability is a key customer concern. Recognising this, we've built an electrification package for EV customers in partnership with ABB, Shell and SP Group. The package delivers home charging through ABB's wall charging solutions, and public charging through Shell and SP Group's networks - totalling over 850 charging points and growing - with the goal of creating peace of mind for customers.

Partnerships

UNITED KINGDOM			Introduction
Removing barriers to customer adoption
The UK is moving quickly towards EV adoption.
Across the entire market, EV sales increased by
18% in 2023, with battery electric vehicles (BEVs)
now representing 17% of all new car sales. In the
		Planet
UK, BEVs represented 20.1% of all of Inchcape's
sales in 2023, with total sales of BEVs increasing
by 68% between 2022 and 2023. Total sales of
hybrid vehicles increased by 34% in 2023.
To support our partner Volkswagen, in 2023
we launched a customer awareness campaign
in the UK focusing on their key EV needs and
		People
concerns. Addressing worries about range
anxiety and battery life, the campaign shared
insights on charge times and charging
solutions, and guidance on the cost profiles of
EVs and ICE to boost customer knowledge. We
invested in our salespeople to make them 'EV
specialists' - equipped with tools to educate
		Places
customers on cost benefits, EV servicing
options, home charging and more.
The UK continues to be our largest market for
EV sales, with customer-facing initiatives such
as this one supporting the rapid growth of the
segment in 2023. As new technologies create
new customer needs and concerns in markets,			Practices
our goal is to approach these systematically
to remove barriers to adoption.

Appendix

INCHCAPE SUSTAINABILITY REPORT 2023 10