Last Updated 17.12.25

Emissions Summary (year-end 31 August 2022 baseline)

• Overall, emissions have gone up as the business has grown, however, revenue has increased by 83% since the baseline year and emissions have only increased by 57%.
• Scope 1 reductions of 4% have been achieved due to changing vehicle fleet from diesel / petrol to hybrid / electric vehicles despite an increase in mileage of 8% since the baseline year.
• It’s worth noting that Tugo increased their floor space in June 2024 by 67% and despite this, still reduced their kWh electricity consumption by 22%. This is a 53% reduction in kWh per sq ft.
• Scope 3 emissions have gone up, however, spend data is being used to estimate emissions from purchased businesses services and these figures have increased due to business growth. Emissions per £1M of revenue, however, have fallen by 14%.

Net Zero Targets

To continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets in line with the Science Based Targets Initiative:

• Near term target: 42% reduction in Scope 1 and 2 emissions by 2030 to 35.526 tCO2e and long-term target of 90% reduction in Scope 1 and 2 emissions to 6.125 tCO2e aligned to a 1.5°C pathway
• As an SME Tugo has aligned to the SBTi’s approach for small and medium sized businesses and has committed to measuring and reducing our Scope 3 emissions. However, we have also made the decision to go beyond this minimum requirement. We are in the process of enhancing Scope 3 data through our supplier engagement program which launched this year with a view to setting a specific Net Zero Scope 3 target by 2027.
• We are committed to achieving Net Zero by no later than 2050 for Scope 1, 2 and 3 emissions.

Carbon Reduction Projects to Date

The following environmental management measures and projects have been completed or implemented since the 2022 baseline.

• We have shifted away from diesel/petrol company vehicle fleet to hybrid/electric vehicles resulting in an 4% reduction in Scope 1 emissions
• We have developed an Environmental Management System in line with the ISO 14001 standard which provides the framework for achieving our Net Zero target and ensuring we improve our environmental performance year on year
• We are rolling out our supplier engagement program to gain better visibility of Scope 3 emissions rather than relying solely on spend data.
• We achieved B Corp certification in March 2025. This will ensure we are addressing our social impacts as well as environmental.
• Based on year end 2025 data, we know that nearly 70% our Scope 3 emissions come from our downstream freight and our delivery partner has set their own Net Zero target which will help to support our own targets
• We have implemented ongoing monitoring and reduction of food waste
• We have upgraded the lighting in our office to LEDs which will support a reduction in Scope 2 emissions.
• Just over 20% of our emissions are from purchased food and drinks and so we are undertaking a carbon lifecycle assessment on some of our popular products to better understand their environmental impacts
• We prioritise UK manufacturing and suppliers to reduce delivery miles
• We introduced the collection of food waste for bio-digestion
• We are engaging with our supply chains to mitigate the risks of biodiversity loss and deforestation

Planned Carbon Reduction and Environmental Projects

While we have made significant progress over the past 3 years to reduce our environmental impacts, we are committed to ongoing improvement.

In April 2025 we swapped our energy contract to 100% renewable electricity, and this has started to reflect in our Scope 2 emissions in this reporting year.

Our Environmental Management System (EMS) is designed to facilitate continual improvement. As we progress year on year, we plan to update targets and introduce new projects to reduce overall emissions and achieve our Net Zero goal.

We recognise that our impact extends beyond our own operations and so one of our biggest projects is our supplier engagement program which we commenced this year to improve visibility of our Scope 3 emissions. Not only are we collating information pertaining to our supply chain’s carbon emissions, but we have extended this to wider environmental impacts including deforestation risks and our wider social impacts from community support to suppliers who pay the real living wage to their employees.

We will also be transitioning to the new B Corp standards by March 2028. The new standards were released in April 2025 and there are now two separate environmental sections that we will be aligning to:

1. Environmental Stewardship & Circularity
2. Climate Action
   In addition to continuing the work in support of our Net Zero target, we will be working to minimise our wider environmental impacts, ensuring we support the shift towards a more circular economy and minimising negative environmental impacts across our value chain.