Carbon Reduction Policy

1. Carbon Reduction Policy

1.1 Our Commitment to Achieving Net Zero Emissions

Kays Medical Limited is profoundly committed to addressing the global challenge of climate change and playing its vital part in transitioning to a sustainable, low-carbon future. We recognise the scientific consensus on climate change and the urgent need to reduce greenhouse gas (GHG) emissions.

Therefore, Kays Medical Limited publicly commits to achieving Net Zero emissions for its UK operations by 2043. This ambitious target aligns with, and aims to exceed where possible, the UK Government’s legally binding commitment to Net Zero by 2050.

1.2 Guiding Principles and Strategic Intent

Our Carbon Reduction Policy is founded on the following core principles, which will guide all our actions and decision-making:

• Responsibility: We accept our responsibility to minimise our environmental impact and contribute positively to climate action.
• Transparency: We commit to accurately measuring, reporting, and openly communicating our carbon footprint and progress.
• Reduction First: Our primary focus will be on reducing our direct and indirect emissions through operational efficiencies, technological adoption, and behavioural change, prioritising actual emission reductions over offsetting.
• Continuous Improvement: We will regularly review our performance, identify new opportunities for reduction, and adapt our strategies to ensure ongoing progress towards our Net Zero target.
• Collaboration: We will engage with our employees, suppliers, customers, and other stakeholders to foster a collective effort towards sustainability.
• Compliance: We will adhere to all relevant environmental legislation, regulations, and industry standards, including the GHG Protocol Corporate Standard and the UK Government’s Procurement Policy Note (PPN) 06/21 requirements for Carbon Reduction Plans..

1.3 Policy Governance and Review

This Carbon Reduction Policy has been formally reviewed and approved by the Board of Directors of Kays Medical Limited. It will be reviewed and updated at least annually to reflect our progress, evolving best practices, and any changes in regulatory requirements. This policy serves as the foundation for our detailed Carbon Reduction Plan.

2. Carbon Reduction Plan

This section details the operational steps, measurements, targets, and initiatives Kays Medical Limited will undertake to implement its Carbon Reduction Policy and achieve its Net Zero commitment.

2.1 Baseline Emissions Footprint

Baseline Year: 2024 (Provisional)

Emission Source	Scope	Description	Estimated Emissions (tCO2e
Direct fuel use (vehicles, generators)	Scope 1	Company-owned vans, warehouse heating	120
Purchased electricity	Scope 2	Office and warehouse operations	95
Business travel, commuting, waste, purchased goods incl. Upstream & Downstream Transportation and Distribution	Scope 3	Estimated via proxy data	185

Total Estimated Baseline Emissions: ~400 tCO₂e

A full carbon audit will be commissioned during FY2025 to verify and refine these figures.

Note: Scope 1 emissions have been estimated based on gas heating of ~42,000 sq ft of operational space and company fleet usage. As of 2025, the fleet comprises two electric vehicles (emitting zero Scope 1 emissions) and one diesel double-cab truck, estimated at ~3 tCO₂e annually based on average UK mileage. Emissions from gas heating account for most of the Scope 1 output. These figures will be refined upon completion of a formal carbon audit.

2.2 Current Emissions Reporting

Reporting Year: 2025
We are currently tracking emissions internally, using best available data. Scope 3 categories reported include: business travel, employee commuting, waste generated in operations, and upstream transportation and distribution.

The actual figures will be established upon completion of a formal carbon audit at the end of FY2025.

Note: This section shall present our most recent carbon footprint data, allowing for a comparison against our established baseline and demonstrating our ongoing progress.

Progress against Baseline:

• Overall Reduction since Baseline: [Total Baseline tCO2e – Total Current tCO2e] tCO2e, representing a [Percentage]% reduction against our [<>] baseline.
• Narrative on Progress: Environmental Management Measures are implemented during all contract delivery and business operations as the key drivers for any reduction.

Hint: [Clearly state any increases/challenges faced during this reporting period. For example: “The reduction is primarily attributed to the successful transition of our office electricity supply to a certified renewable energy tariff, alongside ongoing efforts to optimise our logistics network.”]

2.3 Emissions Reduction Targets

To achieve our Net Zero commitment, Kays Medical Limited has set the following specific, measurable, achievable, relevant, and time-bound (SMART) carbon reduction targets:

• Near-Term Target (Scope 1 & 2): Reduce absolute Scope 1 and Scope 2 GHG emissions by 25% by 2029 from our [<>] baseline.
• Medium-Term Target (Scope 1 & 2): Reduce absolute Scope 1 and Scope 2 GHG emissions by 50% by 2035 from our [<>] baseline.
• Long-Term Target (Net Zero): Achieve Net Zero emissions across Scope 1, Scope 2, and the identified subset of Scope 3 emissions by 2043. We aim to achieve this primarily through direct emission reductions, with any unavoidable residual emissions addressed by high-quality, verified carbon removal projects only as a last resort.

2.4 Carbon Reduction Projects and Environmental Management Measures

Kays Medical Limited has implemented and plans to implement a comprehensive range of measures to achieve our carbon reduction targets. These initiatives are integrated into our business operations and will be considered and applied when performing any contract or tenders.

2.4.1. Completed Carbon Reduction Initiatives:

• [2017] Green Building Design – Our purpose-built site won Gold (Built Environment) and Bronze (Beautiful Building) at the International Green Apple Awards, recognizing its sustainable design and performance.
• [2017] Smart Lighting & HVAC – Occupancy-based lighting and high-efficiency HVAC to minimize operational energy use. These include using Smart energy systems and LED lighting.
• [2021] Digital-first documentation policy.
• [2021] Energy-Efficient Water System – Installed Quooker filtered boiling/chilled water taps to reduce single-use plastics and energy waste from conventional kettles and bottled water.
• [2021] Kick-started waste segregation and reduction initiatives.
• [2022] Fleet Electrification – Transition to electric/hybrid vehicles in logistics operations. Our vehicle fleet now includes electric vehicles (EVs), significantly cutting transport-related emissions.
• [2024] Kick-started sustainable procurement initiative with preference for certified low-carbon suppliers.
• [2024] Site-specific carbon assessments for major contracts.
• [2024] Inclusion of environmental KPIs in project management.

2.4.2. Planned Carbon Reduction Initiatives:

• Energy Efficiency & Renewable Energy:
  • By Q4 FY2025: Conduct a detailed energy audit of our main office facility to identify further energy-saving opportunities and implement recommended upgrades (e.g., HVAC system optimisation, improved insulation), targeting an additional 10% reduction in energy consumption in Scope 1 & 2 emissions by 2027.
  • By FY2026: Investigate the feasibility of installing on-site renewable energy generation – Solar PV Panels by 2027 at our main office to further reduce our reliance on grid electricity.
  • Ongoing: Implement a smart energy monitoring system to track real-time energy consumption and identify areas of inefficiency for immediate action.
    
• Transportation & Fleet:
  • By FY2028: Transition 50% of our company vehicle fleet to fully electric vehicles (EVs) or plug-in hybrids, supported by the installation of additional EV charging infrastructure at our premises.
  • Ongoing: Ensure the continued operation ability of the existing EV charging infrastructure at our premises, exploring upgrading options, if necessary.
  • Ongoing: Continue to promote and facilitate remote working and virtual meetings where appropriate to minimise business travel.
  • Ongoing: Collaborate with logistics partners to explore and implement lower-carbon transport solutions for our supply chain.
    
• Waste Management:
  • By Q1 FY2026: Implement a new comprehensive waste segregation and recycling program across all our sites, aiming to increase our overall recycling rate by 10% and reduce waste sent to landfill.
  • Ongoing: Work proactively with our suppliers to reduce packaging materials and explore opportunities for reusable or recyclable packaging solutions.
    
• Supply Chain Engagement (Scope 3):
  • By Q3 FY2026: Develop and launch a supplier engagement program, that is, carbon questionnaire as part of Net-Zero Supply Chain Initiative, to encourage our key suppliers (representing around 40% of our Scope 3 emissions) to measure and set their own science-based carbon reduction targets.
  • Ongoing: Integrate sustainability criteria into our procurement processes, favouring suppliers with strong environmental performance and verifiable carbon reduction plans.
    
• Employee Engagement & Culture
  • From Q2 FY2026: Implementation of Carbon Literacy Training for all staff.
  • Ongoing: Conduct regular employee awareness campaigns and training sessions on sustainable practices, including energy saving, waste reduction, and promoting greener commuting options.
  • Ongoing: Establish an internal “Green Team” or “Sustainability Champions” network to drive and champion environmental initiatives across the organisation.
    
• Achieve Net Zero by 2043
  • Ongoing: Establish an internal monitoring system to track and review all the above listed initiatives and project at regular intervals to effectively address any lagging or failures to ensure that the target is on track.
  • Ongoing: Include the review of the Carbon Reduction Plan as part of the regular Management Review Meetings to maintain senior management interests and delivery of the environmental initiatives across the organisation.

2.4.3. Environmental Management Systems:

Kays Medical Limited maintains a robust framework for environmental management to ensure the effective implementation of this plan. This includes:

• ISO 14001 Certification – “Certified to ISO 14001:2015 by [Citation ISO Certification Limited], Certificate No. 378932021, valid until 09/11/2027.”
• ISO 45001 Certification – “Certified to ISO 45001:2018 by [Citation ISO Certification Limited], Certificate No. 378932021, valid until 09/11/2027.”
• We regularly conduct internal audits and management reviews as well as subjected to external audits to assess our occupational health and environmental performance, identify risks and opportunities, and set objectives for continuous improvement.

2.5 Governance and Review
This Carbon Reduction Document is reviewed annually and overseen by the CEO. It will be updated to reflect progress against targets, emerging regulation, and improvements in emissions reporting capability. All initiatives align with ISO 14001 environmental management principles and contribute toward sustainable growth and procurement compliance.

2.6 Declaration and Approval
This Integrated Carbon Reduction Document (Policy and Plan) has been reviewed and formally approved by the Board of Directors of Kays Medical Limited.
We are committed to maintaining the accuracy of the information presented herein, regularly updating this document and publicly publishing it on our company website to ensure full transparency to all stakeholders.

Signed on behalf of Kays Medical Limited: