ESG Policy

Fit for the Future – our commitment to sustainability

Our strategy is aligned with, and depends upon, the responsible treatment of all stakeholders and the natural environment.

Focusing on the material issues for Termo Teknik and its stakeholders, our Fit for the Future sustainability framework represents an evolution of our historical ways of working. It is centred around our core purpose: helping to heat homes sustainably. This reflects our vision of the significant role we can play in facilitating the transition to a low and zero carbon heating industry.

Our framework sets out our approach to delivering our business strategy whilst also delivering on our sustainability commitments to stakeholders and the environment. Fit for the Future comprises two strategic pillars. The first, “Driving better environmental performance”, will focus us on reducing our impact on the environment whilst also engaging, educating and influencing others throughout the value chain to achieve an effective transition to the low and zero carbon heating systems of the future. The second, “Enabling an exceptional workforce”, helps our people contribute positively to the delivery of our strategy and our sustainability objectives.

Finally, our sustainability strategy is underpinned by strong governance, exceptional safety standards and effective oversight of supply chain management, which are the structural foundations for achieving our objectives.

Driving better environmental performance

A key pillar of our sustainability strategy focuses on reducing the direct and indirect environmental impacts of our products and on helping to drive the decarbonisation of heating. We recognise the urgent need to reduce global emissions and manage resources efficiently, and our actions will ensure we play our part in meeting these global aims.

Our existing products can operate effectively with all heat sources, but as alternatives to fossil fuels are developed, we will continue to innovate and introduce complementary products as part of a coherent offering for lower and zero carbon heating systems.

In the design, manufacture and distribution of our products, we are working to understand our environmental impacts and will target improvements as part of a long-term journey to net zero emissions. We will engage our value chain in this work, looking to optimise our packaging design and reduce the environmental impact of the raw materials that we use in our products. We also have a clear role to play in influencing positive behavioural change for consumers to encourage the decarbonisation of heating.

Enabling an exceptional workforce

Our people are fundamental to the success of our business. We aim to retain key personnel, develop the skills and knowledge of our workforce and attract talented individuals to aid our future growth and competitiveness. At the same time, we want to ensure that everyone at Stelrad is encouraged to fulfil their potential and enjoy a long-term career with us.

To help us achieve this we focus on key areas including training and development, diversity, equality and inclusion and wellbeing, whilst building on our employee engagement programmes to ensure our employees’ voices continue to be heard. Outside of our business, we are committed to community initiatives tailored to local needs across our broad geographical spread.

Conducting business responsibly

Conducting business responsibly is a key foundation in everything we do and underpins all aspects of our business including our sustainability strategy. Our approach to business is guided by a clear set of Company values and a culture of safety that is overseen by the strong corporate governance of our Board. Internally we have robust operational structures, controls and polices that ensure good communication, oversight and effectiveness.

We hold ourselves, our employees and our suppliers to high ethical and governance standards which include international labour standards and human rights. We continue to offer our employees a fair income, with opportunities for personal development and progression. In pursuit of our goal of zero harm we continue to invest in training and manufacturing processes to keep our colleagues safe and healthy and to reduce accident rates.

Corporate Governance

The role of the Board is to provide leadership to the Company and to deliver shareholder value over the long term. The Board sets the Company’s values and standards, making sure that they align with its strategic aims and the desired business culture. The Board is responsible for setting the Group’s strategy, understanding the Group’s stakeholders, while maintaining a balanced approach to risk within a framework of effective controls. It has also established the Company’s purpose and values and monitors culture to ensure alignment. It sets the tone and approach to corporate governance and is responsible for the overall financial performance of the Group. The Board delegates specific powers for some matters to committees, details of which are set out below.

Board composition

The Board members have separate, clearly defined roles and responsibilities and all the Non-Executive Directors are required to devote sufficient time to meet their Board responsibilities and demonstrate commitment to their role.