Zero Carbon

Our ambition is to be the partner of choice for innovative and sustainable transport, accelerating the transition to a zero‑carbon world by eliminating carbon emissions from our operations and supporting a modal shift to public transport, while building climate resilience across our business.

Environmental policy

Our Group Environment Policy governs our approach to the environment, including carbon emissions, and is applicable to all FirstGroup operations. In addition, our various divisions also have their own environmental policies that are bespoke to their operations and we have introduced environmental commitments into other policies such as our Code of Ethics and Supplier Code of Conduct that outline our expectations for employees and suppliers respectively, with both groups required to sign annual attestations.

Group Environment Policy


Group commitments

As a Group we are committed to reaching net-zero emissions by 2050. This is in alignment to the UK governments broader climate change strategy and the reductions needed to meet the global commitment under the Paris Agreement to limit climate warming to 1.5°C by 2050.

First Bus are focused on becoming a leader in the transition to a low-carbon future and are committed to operating a zero-emission bus fleet by 2035. In 2020, First Bus pledged not to purchase any new diesel buses after December 2022. To achieve this, they are focused on replacing existing diesel buses with electric or hydrogen powered vehicles. Additionally, they are committed to upgrading depots with solar panels and working in partnership with local businesses to offer electric vehicle fleet charging.

First Rail, in line with its dedication to environmental sustainability, is committed to a goal of reaching Net Zero emissions by the year 2050. This aligns with the government's own targets, particularly the goal of having all diesel-only trains phased out by 2040.

Group science-based targets

In line with our commitment to reach net-zero emissions by 2050 or earlier, we have set a Group science‑based emissions reduction target aligned with a 1.5°C ambition and approved by the Science Based Targets initiative.

Our targets are to reduce Scope 1 and 2 GHG emissions by 63% by FY 2035 from a FY 2020 base year. Importantly, we also commit to reduce absolute Scope 3 GHG emissions from fuel and energy‑related activities by 20% by FY 2028 from a FY 2020 base year, and that 75% of our suppliers by emissions covering purchased goods and services and capital goods will have science‑based targets by FY 2028.

Other science-based targets

South Western Railway were the first rail company to have a long-term decarbonisation goal to be net zero by 2040 that has been verified by the Science Based Targets initiative. The DfT approved Phase One of their decarbonisation roadmap and 2040 net zero carbon target and will support SWR’s plans (subject to available future funding). Their priority is to mitigate their impact on climate change by setting robust carbon targets to hit each year in line with the science-based target of 4.2% reduction per year. This will enable them to make significant emission reductions in the short term, putting them on a decarbonisation pathway that is in line with the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.

At Avanti West Coast, the ambition is to achieve Net Zero by 2031. This goal encompasses efforts to reduce emissions from various operational aspects, including traction, stations, and offices. The primary focus is on reducing emissions produced by traction, which involves a careful, phased approach to eliminating the use of diesel fuel in operations. West Coast Partnership that includes Avanti West Coast successfully submitted three near-term targets that we validated by the SBTi. These were a commitment to:

·       Reduce absolute scope 1 and 2 GHG emissions 40% by FY2026 from a FY2020 base year. The target boundary includes land-related emissions and removals from bioenergy feedstocks.

·       Reduce absolute scope 3 GHG emissions 15% by FY2026 from a FY2021 base year.

·       90% of suppliers by spend covering purchased goods and services, and capital goods, will have science-based targets by FY2026.

Carbon reduction plans

Within First Bus and First Rail we have published carbon reduction plans that serve as our comprehensive strategies towards reducing our carbon footprint and have been produced in accordance with the guidelines outlined in the Technical Standard for Completion of Carbon Reduction Plans. These guidelines ensure a stringent and standardised approach to managing and reducing carbon emissions in an effective and measurable manner.

First Rail Carbon Reduction Plan

First Bus Carbon Reduction Plan

In addition, South Western Railway and Avanti West Coast have published their own detailed plans to achieve net zero. Great Western Railway are in the process of finalising their plan.

South Western Railway 2040 Plan

Avanti West Coast Responsible Plan

Reporting

We were the first UK transport operator to pledge our support towards the recommendations of the Task Force on Climate-Related Financial Disclosures reporting since 2021. We also report to Carbon Disclosure Project (CDP) annually. This year we are working on our first report to the Transition Plan Taskforce that will outline our transition plans in more detail.

Our carbon footprint has been calculated according to the international Greenhouse Gas (GHG) Protocol’s Corporate Accounting and Reporting Standard (revised edition). Our environmental data collection system allows us to track and manage our direct operational impact. Our latest data can be viewed in our Environmental Performance Report and Annual Report.

Collaboration and advocacy

We play an important role in terms of collaboration and advocacy, by participating in workshops and taskforce groups which share learnings and promote a cohesive approach for the transport sector:

·       Signatory to the United Nations Global Compact.

·       Signatory to the UN Business Commitment for 1.5 pledge.

·       We were the first UK transport operator to formally commit to setting ambitious science-based targets. 

·       Signatory to the Green Travel Pledge.

·       Committed to the United Nations Sustainable Development Goals.

·       We support the RDG as a cross-industry group member including projects like the Sustainable Stations Guide. 

·       Active member of the Rail Safety and Standards board and supporter of the Sustainable Rail Blueprint. 

Governance

Climate considerations are integrated into a multidisciplinary, company-wide management processes throughout the group. We see management as active participants in the mitigation and management of climate-related risks and opportunities:

The Chief Executive Officer takes ultimate executive responsibility for all ESG issues including climate-related risks and opportunities.

The Executive Committee provides leadership and direction for the Group on sustainability matters, including climate change, with material issues presented by the Group Corporate Responsibility and Finance teams for discussion and decision‑making as they arise throughout the year. Executive responsibility for sustainability matters is held by the CEO. Executive responsibility for climate‑related financial risks and opportunities is held by the CFO, who represents these matters at Board level.

The Responsible Business Committee coordinate ESG efforts across geographies and businesses from both a strategy and policy perspective. The Committee specifically monitors the group’s performance in terms of social, environmental (including climate change and net-zero transitions) and governance (ESG) indicators. The Committee consists of directors with experience in sustainability and meet four times a year. At each meeting, the Committee receives a detailed performance update from Bus and Rail against specific commitments and targets and discusses strategic priorities going forward. Over the last year, the Committee reviewed and guided for example FirstGroup’s plans for further embedding the TCFD recommendations across the business and our approach to Scope 3 emissions.

The Audit Committee supports the Board in the management of risk, including climate‑related risks, and is responsible for reviewing the effectiveness of risk management and internal control processes. The Audit Committee reviews climate‑related risks as relevant in relation to going concern, viability statement and the assessment of impairment.

The Group Director of Corporate Responsibility is a member of the Responsible Business Committee and collaborates with a range of senior leaders on ESG issues.

The various group sustainability teams report to the Group Director of Corporate Responsibility and are tasked with supporting the risk teams in identifying environmental and climate-related risks that may have an impact on the group. They are also responsible for defining sectoral policies aimed at limiting the ESG risks to which First Group may be exposed to and for implementing net-zero and other ESG strategies and projects.

Executive remuneration

Non-financial and ESG-related targets are included within executive remuneration with a total weighting of 15% related to sustainability-related matters. The Committee determined in 2022 that Long-Term Incentive Awards should include a Sustainability Scorecard, comprising two environmental measures, over a three‑year period. One related to the number of zero emission vehicles in our bus fleet, and one linked to a reduction in our absolute Scope 1 and 2 emissions.

The LTIP aligns to the emissions reduction measure with the Science Based Targets (SBT), set during FY 2022, for a reduction in our Scope 1 and 2 emissions. Emissions reduction aligned to our SBT is the main emissions metric that we report on and a key performance indicator for the Group. In addition, we consider that using an absolute carbon reduction metric is ultimately more appropriate than a carbon intensity measure, on the basis that the latter is affected by changes in revenue as well as carbon performance. The Scope 1 and 2 emissions reduction targets are quantifiable, capable of being independently verified and are closely aligned with our strategy and investment case. 

Culture and skills

To reduce emissions, training and engagement with our supply chain, customers, and staff is essential for creating a low-carbon culture, and in turn helping to achieve our decarbonisation goals. We have already undertaken stakeholder benchmarking and engagement across the rail industry and will continue to engage and communicate with our stakeholders in line with existing communications and reporting channels.

We will communicate with customers to develop a wider understanding of individual impacts, for example, from waste brought onto trains and emissions associated with travelling to and from stations.

All our business divisions are engaged as part of data collection and as a collaborative opportunity in which options for carbon reduction can be shared. 

Training and awareness raising

Creating awareness among employees and customers to influence behaviour and improve carbon and energy efficiency is also critical to success. We provide staff with information and regular updates outlining key targets and current performance and deliver training and campaigns such as ‘switch off’ events such as GWR's 'Turn it Off if you can' campaign or SWR's monthly 'Carbon Challenge'. This will support the development of a culture of energy efficiency and low-carbon behaviours. Social Value Plans in the TOCs which also include commitments to create regular communications for staff on sustainability issues is a key part of our strategy to sustainability awareness across the business, guiding future decision making and the trajectory of our progress.

We are embedding online environmental training for key staff to further educate and encourage engagement on sustainability matters this includes for Environmentally Appointed Persons (EAPs) that have been credited with driving improved environmental performance at these facilities.

Property

The emissions from our stations and depots result from the consumption of gas and electricity used for heating, lighting, and operating our stations and depots. To achieve our net zero emissions targets, we will introduce a number of energy-efficiency measures, and transition to low and zero-carbon technologies as existing infrastructure comes to end of life and requires replacement. Our measures include:

·       Energy monitoring from building management systems.

·       Achieving best practice standards such as ISO14001 and ISO50001.

·       Heating system optimisation including HVAC, boilers, fixed heating and heated anti-fatigue mats. 

·       Monitoring water usage and reducing consumption.

·       Lighting system optimisation including the installation of LED's, automatic lighting, remote monitoring and retrofitting.

·       Building any new depots and stations in line with our decarbonisation plans. 

·       Working with our partners to procure and access off-site renewable energy for use at our sites. 

·       Investing in on-site renewable energy generation such as solar panels. 

·       Installing electric vehicle charging. 

Further details can be found on our Environmental Management webpage and in our Environmental Performance and Annual Reports.

Bus fleet decarbonisation

By carefully balancing operational needs, customer expectations, budgetary constraints, and sustainability objectives, we will maximise the opportunities to reduce emissions through vehicle changes.

First Bus has been steadily replacing the existing diesel fleet with zero emission alternatives towards the aim of having a fully electric fleet by 2035. First Bus and our local authority partners have been successful in securing government co-funding to implement Zero Emission Bus Regional Area (ZEBRA) projects various locations around the country. This allows depots to upgrade their power to become fully or partially electrified and fleets to shift towards fully electric. We now have 574 zero emission buses in service, making up 13% of our bus fleet, and direct current (DC) fast electric charging infrastructure at ten of our depots across the UK, including three fully electric depots in York, Leicester and Norwich. Our Hoeford depot in Portsmouth will be partially electrified by June 2024.

The signing of a new, innovative £150m Green Hire Purchase Financing Facility to support the purchase of electric bus bodies with further our decarbonisation goals. The Group has also agreed a strategic partnership with Hitachi to create a newly formed joint venture to support the purchase of up to 1,000 electric bus batteries and provide battery and charging management services for 1,500 buses powered by the new batteries as part of First Bus’s fleet decarbonisation.

Bus driver performance

We aim to manage our timetabled services to be as efficient as possible, minimising bus and train idling as much as is practical. For all buses, First Bus is measuring key fleet performance indicators using Greenroad telematics, a cloud-based system. These performance systems allow for more accurate rerouting, for shorter bus routes and maximised diesel efficiencies and electric battery life depending on the vehicle.

Rail fleet decarbonisation

In First Rail, fleet upgrades are being rolled our across the networks such as Avanti’s new £350m fleet of Hitachi Class 805 and 807 trains, which will replace the current diesel-only Class 221 fleet in 2024. This fleet upgrade is a critical step towards Avanti reaching net zero by 2035.

Decarbonisation of the our fleet is dependent on the shift towards electrification as power can be delivered using renewable energy. Currently 76% of our fleet is electrified an increase of 3% on previous years. 

At GWR, we have invested in low-carbon transport innovation through the purchase of intellectual property, rolling stock and equipment from emissions-free and hybrid trains manufacturer Vivarail, in partnership with Network Rail. This has allowed us to trial fast-charging battery electric technology on the Greenford to West Ealing line with the aim of replacing the use of diesel in running trains on the line. The Class 230 battery trains to be used in the trial are made from repurposed ex-London Underground trains, with trial operations that began in March 2024.

Driver Advisory Systems

In First Rail, Driver Advisory Systems (DAS) monitor driver performance on behaviours such as idling and unnecessary acceleration and braking, which improves the energy efficiency of our operations. DAS will likely be incorporated into our specifications for any future rolling stock upgrades across our rail division. SWR have successfully deployed DAS across their electrified and diesel-powered fleet which led to average energy savings of between 5% and 10% across the fleet compared to before it was implemented.

We are looking to implement connected-DAS (c-DAS) on our open access routes – Lumo and Hull Trains. This more advanced system is programmed with route knowledge, such as the line speed and gradients, as well as train capabilities in areas such as acceleration and braking. c-DAS crucially has data on the locations of other traffic on the network, which we can then use to calculate an appropriate speed for a train to travel at. This reduces the number of conflicts at junctions and the need for braking and acceleration. Therefore, our trains coast more often allowing for more efficient driving and consuming less energy during operations. This, in turn, reduces our carbon emissions. GWR have tested c-DAS across our Class 387s and Class 802 fleet, with a view to then rolling it out more widely in the medium to long term.

Carbon calculators

Our trains and buses are some of the greenest ways to travel. We are proactively helping our customers understand the impact of their journeys using carbon calculators to compare journeys with driving and flying or emissions avoidance studies.  

Avoided emissions

To meet the UK Government’s net-zero commitments, journeys made by car or plane must reduce. A modal shift is required whereby people choose to use buses, trains or other public transport instead. Hull Trains and Lumo both conducted avoided emissions studies, in collaboration with Arup, to understand how using their services between two destinations can save carbon emissions when compared to driving or flying on the same route. The studies found that travelling with either operator can save up to 95% of emissions compared to flying or driving in different scenarios.

Hull Trains Emissions Avoidance

Lumo Emissions avoidance

Staff transport

Being a major public transport provider, we actively encourage our staff to use sustainable forms of transportation for business, commuting and leisure.

Our IT systems allow for remote access including video, telephone and web-conferencing to reduce unnecessary business travel. Where business travel is necessary it is booked using our digital system that promotes the use of public transport and includes emissions calculations to inform employees of their impact. Our vehicle fleet is steadily being upgraded to electric vehicles and many of our offices, stations and depots are fitted with electric vehicle charging points.

For commuting and leisure travel we have a comprehensive suite of sustainable travel incentives, provided via our bespoke platform First Xclusives for all staff, that include discounted rail and bus tickets, cycle to work schemes and other travel related discounts, savings and benefits. Staff are encouraged to commute using public transport or by active travel such as bike or on foot with bike storage provided at various locations across our estates.
 

Discover other ways we are reducing our environmental impact

Avanti West Coast

First Bus

Great Western Railway

Hull Trains

Lumo

South Western Railway