Low Emission Transport

Our Climate Transition Plan outlines the concrete steps we are taking to decarbonise our operations, drive modal shift, and align with the UK’s net-zero ambitions. By investing in clean technologies and enhancing our public transport services, we are making it easier for communities to choose low-carbon travel options

Our Climate Transition Plan

This plan outlines our comprehensive strategy for achieving our climate transition goals, detailing our approach to reducing greenhouse gas emissions, managing climate-related risks, and contributing to an economy-wide transition through modal shift by encouraging more people to switch to lower impact forms of transportation. It sets out our targets, actions, and dependencies across all of FirstGroup’s operations and tells our climate transition story with more detail than ever before. 

Group science-based targets

In line with our commitment to reach net-zero emissions by 2050, we have a number of science-based Group emissions targets validated by the Science Based Targets initiative (‘SBTi’) including:

·       to reduce Scope 1 and 2 emissions by 63% by the end of FY 2035 from a FY 2020 base year;

·       to achieve a 20% reduction in absolute Scope 3 emissions from fuel and energy-related activities by the end of FY 2028 from a FY 2020 base year; 

·       to ensure 75% of our suppliers by emissions covering purchased goods and services and capital goods will have targets aligned to the science‑based approach by the end of FY 2028.

Since 2020, we have reduced Scope 1 and 2 emissions by 26%. Over the same period, we have achieved a 4% reduction in Scope 3 emissions from fuel and energy-related activities. 50% of our suppliers in scope also already have science-based targets in place.

Implementation timeline

Decarbonising our operations 

Decarbonising our operations is at the heart of our climate transition. By transitioning to low and zero-emission transport solutions, we are reducing our environmental impact while improving the efficiency and reliability of our services. This approach spans our bus and rail operations, ensuring we contribute meaningfully to the UK’s net-zero transition:

First Bus

·       aims to transition to a fully zero-emission commercial bus fleet by 2035, with more than 650 zero emission vehicles now in service in our regional operations, and more than 300 in London.

·       invests in depot electrification, smart charging infrastructure, and on-site renewable energy.

·       ten depots in the UK are now electrified and electrification is underway at a further five depots (c.30% of our depots.)

First Rail

·       our open access rail operators (Lumo and Hull Train) contributed 1.3% of our overall Scope 1 and 2 emissions in FY 2024, with Lumo operating a fully electric fleet.

·       thanks to a £60m investment in a new bi-mode fleet for Hull Trains that entered service in 2019, our annual Scope 1 and 2 emissions from this business have been reduced by 65%.

·       trials of battery train technologies and low-carbon fuels are underway; and we collaborate with Network Rail to improve energy efficiency and expand track electrification.

Driving modal shift 

First Bus

·       utilises AI technology to provide more convenient and reliable bus services.

·       invests in bus priority measures with local authorities to reduce congestion and improve journey times.

·       enhances affordability and accessibility through flexible ticketing and digital innovations.

First Rail

·       actively grows our open access rail business by adding capacity, enhancing timetables and applying for new and complementary routes. Recent highlights include the acquisition of track access rights for new services between London Paddington and Carmarthen and London Euston and Stirling.

·       enhances customer experience through improved station facilities, onboard services, and digital ticketing options.

·       integrates rail with other forms of public transport to create seamless, end-to-end journeys.

Financial planning and investment 

Transitioning to net-zero requires significant investment, but we are confident in our financial approach. Our strategy balances short-term capital expenditure with long-term cost savings and revenue opportunities, ensuring financial resilience as we decarbonise our operations. The implementation of the transition plan is expected to have a positive impact on the Group’s financial performance, with this impact expected to grow over time:

·       over 80% of our capital expenditure in FY 2024 (£108.3m) was invested in our commercial bus fleet and infrastructure decarbonisation.

·       we leverage a mix of joint ventures, debt financing, and operational cash flow to continue our investment while maintaining financial stability.

·       the transition to an electric fleet is expected to yield efficiencies in fuel and engineering costs over time.

·       there are also new revenue opportunities. We are the first UK bus operator to offer access to our electric vehicle charging infrastructure to other organisations that include DPD, Openreach, Centrica, eHGV and smaller bus operators.

Scope 3 and supplier engagement

Our Scope 3 emissions account for 49% of our total carbon footprint and we work with over 4,500 suppliers, spending approximately £3.2bn annually on goods and services. By collaborating and sharing best practices, we aim to minimise climate impact across our value chain and support the achievement of our Scope 3 reduction targets.

We have introduced the ‘Link-Up’ supplier toolset, requiring key suppliers to provide data on carbon emissions and sustainability measures. This platform will become an integral part of our supplier onboarding process from FY 2026.

Looking ahead, we will increase supplier participation in this programme, integrate sustainability further into our tendering processes, and continue advocating for enhanced industry-wide data sharing. We will continue to engage and collaborate with our critical suppliers to support those yet to set a science-based target.

Governance and culture 

·       our Responsible Business Committee of the Board meets four times a year to review the practices and performance of FirstGroup with respect to our climate transition.

·       climate-related KPIs are embedded into our variable remuneration practices. Our Long-Term Incentive Plan (LTIP) awards, made to the CEO, CFO and other senior leaders, include non‑financial and ESG-related targets with a total weighting of 15% to climate-related matters.

·       we will provide performance updates on our plan and wider climate-related disclosures in our Annual Report and Accounts and Environmental Performance Report, providing transparency on our progress and challenges.

·       our plan aligns with key industry and regulatory frameworks, including the Transition Plan Taskforce (TPT) Disclosure Framework, Carbon Disclosure Project (CDP) and the Task Force on Climate-related Financial Disclosures (TCFD.) 

Read the full plan

For more details, download our full climate transition plan [insert link].

Discover other ways we are reducing our environmental impact

Avanti West Coast

First Bus

Great Western Railway

Hull Trains

Lumo