GROUP ACTIVITY REPORTS

Corporate Social Responsibility 2021

We recognise sustainability to be that which “considers the economic, social and environmental needs for us and others at the present time and the needs of future generations”. This means we believe it is crucial for businesses to behave fairly and ethically towards society, customers, suppliers, environment, and employees. At the Traffic Group Ltd we are committed to a CSR policy that enables sustainable development. We treat all our stakeholders, including the environment, fairly and ethically. This has always been central to our product design and throughout our business activities.

We are committed to supporting the internationally-recognised ‘Sustainable Development Goals’, and we take a holistic approach to being a good neighbour in local, national and international communities. We hope to be pioneering in our corporate social responsibility within our sector and seek to encourage and collaborate with our industry partners to magnify our collective efforts.

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THE BIGGER PICTURE

WASTE & WATER

DECARBONISATION

COMMUNITY RESPONSIBILITY

SKILL DEVELOPMENT & KNOWLEDGE SHARING

CIRCULAR ECONOMY

SUSTAINABLE VALUE CHAINS

GOOD BUSINESS PRACTICE

INTRODUCTION

Our sole purpose as a family business is to offer safer, greener, more efficient highways products and operations.

A dedicated team of 130 employees helps drive a culture of continuous improvement across all aspects of our business and ensures that treatment of all our stakeholders, including the environment, is fair and ethical.

Previously, our contributions across the three areas of sustainability (the environment, the economy and human society) have only been demonstrated in our product design and our everyday business activities.

We have now reached a size that means we have the available resources to start effectively reporting our Corporate Social Responsibility (CSR) activities. This will allow us to benchmark our Group’s efforts against previous years and hold ourselves accountable to commitments and continuous progress towards holistic sustainable development.

A Word From Our Group MD

“Our business focus is safer, greener, more efficient journeys. The average road user will almost certainly overlook everything we do as a business but there are very real, very valuable societal and environmental benefits in our core offerings. As anyone who works for the business will know, if you speak to friends or family about motorways, car parks, traffic lights or bus lanes there is nearly always a business context you can bore them to death with. This means they all have interactions with what we do somewhere in their lives which is a unique opportunity.

With the issues brought on by Coronavirus and the on-going international climate emergency, our impacts on our society and the environment have now come to the forefront – both at The Traffic Group, but also in all our personal lives. We’re in a strong position to affect change where our specialist technology covers a wide range of traffic management solutions which gives us an opportunity to make a magnified difference compared with some sectors. We are now looking at CSR as more than just an add-on to our current operations but an integrated part of our everyday routines and practices.

On the environmental side, there is a perception from some people that COP26 happened to everyone else.

We need to start moving in a motivated way, both in the business and at home, to make the changes we all need to make to make a better future.

Every product from The Traffic Group is designed and made in the UK with most parts locally sourced, we promote use of solar power and electric vehicle charging facilities, and we try not to use 100% virgin material in anything we manufacture. These are some of the easy things to identify and work on. As our policy and activities move forward, some of the issues we need to address and resolve will become more complicated and difficult but I trust, as individuals and collectively, we all embrace the challenge. Ultimately, we all benefit.”

Peter Hutchinson – Managing Director

The UN Global Compact

The UN Global Compact provides universal principles on human rights, labour, environment, and anti-corruption.

We believe that it is fundamental to adhere to these out of respect for global societies and to allow sustainable development for everyone our organisation may impact, and for our own long-term success.

To prove our sincerity, it is our intention to become signatories once we have created an effective and transparent reporting structure.

Further information on these principles can be found below.

UNGLOBALCOMPACT.ORG
safer, greener, more efficient

Sustainable Development Goals

The UN Global Compact has outlined detailed indicators in the form of Sustainable Development Goals (SDGs) to help structure responsible business efforts.

Although we inherently contribute to a wide range of SDGs, we have chosen to consciously focus our efforts on eight. These are evenly spread across Biosphere, Society and Economy Goals to ensure diversity within our CSR strategy. The table below explains in more detail the logic behind our choices.

Zero Hunger

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

  • Far removed from sector, therefore increases variety of CSR activities in relation to industry closeness.
  • Fairly easy to find related organisations.
  • One of the worst performing SDGs.
  • Area where major challenges remain for the UK.

Good Health & Well-Being

Ensure healthy lives and promote well-being for all at all ages.

  • High relevancy for all employees.
  • Specific target linked to reducing road traffic collisions.
  • One of the worst performing SDGs.

Quality Education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

  • Qualified workforce with high levels of knowledge and expertise to leverage.
  • Employees have participated in educational events and activities in the past.
  • e.g. school, college and university visits; internships; apprenticeships; work experience placements.

Zero Hunger

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

  • Far removed from sector, therefore increases variety of CSR activities in relation to industry closeness.
  • Fairly easy to find related organisations.
  • One of the worst performing SDGs.
  • Area where major challenges remain for the UK.

Good Health & Well-Being

Ensure healthy lives and promote well-being for all at all ages.

  • High relevancy for all employees.
  • Specific target linked to reducing road traffic collisions.
  • One of the worst performing SDGs.

Quality Education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

  • Qualified workforce with high levels of knowledge and expertise to leverage.
  • Employees have participated in educational events and activities in the past.
  • e.g. school, college and university visits; internships; apprenticeships; work experience placements.

Zero Hunger

End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

  • Far removed from sector, therefore increases variety of CSR activities in relation to industry closeness.
  • Fairly easy to find related organisations.
  • One of the worst performing SDGs.
  • Area where major challenges remain for the UK.

Good Health & Well-Being

Ensure healthy lives and promote well-being for all at all ages.

  • High relevancy for all employees.
  • Specific target linked to reducing road traffic collisions.
  • One of the worst performing SDGs.
CSR REPORT 2021

SDGs and Our Chosen Aims

As CSR is such a broad field, we have developed 5 encompassing Aims to categorise our activities. SDGs have also been chosen as focus areas within these categories to ensure we make a meaningful and varied contribution. Example CSR activities have been added to the below matrix to demonstrate what this will look like:

CSR REPORT 2021

Decarbonisation

We will be using the Green House Gas Protocol’s methodology for GHG accounting to communicate our decarbonisation efforts.

Emission figures will use the unit CO2e to encompass equivalent GHGs, and calculated using the UK Government Conversion Factors¹.

SCOPE ONE

Company Facility Emissions
51.62 tCO2e
Company Vehicles
81.33 tCO2e

SCOPE TWO

Emissions from Energy Consumption
22.39 tCO2e

Additional Reporting Figures

Green Gas (consumed)
1838.33 m³
High-Level Radioactive Waste in Energy Procurement
193 g

Renewable Energy Generation

AGD generate the equivalent of 12% of our total consumption through in-house solar PV generation, which is fed into the grid.
This off-sets 3.29 tCO2e of our scope 2 emissions for 2021.
This allows our radar manufacturing and testing facility to operate carbon-neutrally

Energy Efficiency Initiatives

LED tube lighting upgrade in AGD manufacturing facility in 2021 will create C02 yearly savings of 866 kgCO2

Emissions Breakdown by Depot

AGD

Emissions
28.35 tCO2e
Solar PV Generation
26.471 kWh
CO2 per square foot
2.18 kgCO2e
EV Charging Points
2

MAV

CO2 per square foot
0 kgCO2e
EV Charging Points
1

TGS - Pike Works

Emissions
40 tCO2e
CO2 per square foot
2.31 kgCO2e

TGS - Hollco

Emissions
3.44 tCO2e
CO2 per square foot
0.57 kgCO2e

Company Vehicles

Emissions
81.33 tCO2e
CO2 per Vehicle
3.87 tCO2e
Hybrid Vehicles
1/3

TGS Other SItes

Emissions
1.47 tCO2e
CO2 per square foot
0.66 kgCO2e
EXISTING INITIATIVES

Waste & Water

  • Eliminating single-use plastic throughout value chain:
    • Reusable plastic moulds designed for regular deliveries to replace single-use packaging.
    • Paper packaging reused where possible.
    • Foam inserts and bubble wrap packaging replaced with specially designed cardboard inserts.
    • Polypropylene Brown Packing Tape dispenser for product packaging across entire group negates use of plastic tape and reduces volume of tape used.
    • ANPR Camera packaging has been redesigned and fully stress-tested to become 95% cardboard.
  • Old IT equipment is donated to local charities IT Schools Africa and Wiltshire Digital Drive to assist children who have difficulty accessing computer equipment.
  • After introducing a digital-based production system at the end of 2021, we have reduced our Hollco depot’s production paper-consumption rate to zero, eliminating the use of almost 10,000 sheets of A4 each year. This is soon to be adopted across all Traffic Group Signals sites.
  • AGD production have introduced tablets for paperless work Instructions and TEAMS meetings.
  • Excess consumable items such as gaskets are donated to The Resource Centre to be repurchased for arts and crafts.
  • Our old demo products have been donated to organisations such as The Yard, an adventure playground designed for disabled children.
Waste & Water

Current Waste Streams

TTG 2021 Annual Average Waste by Type (KG)

TTG Annual Average Waste to Landfill (KG)

WASTE & WATER

Water Consumption

Our current water consumption is minimal and owing to general facilities and kitchen use, as well as cleaning of company property. In 2021, AGD saw a one-off increase in water consumption from the planting of new hedges and greenery.

Despite unfortunately not being able to get figures for all our sites’ water consumption in 2021 for, we look to report on all sites in 2022.

AGD

Waste by Site Turnover (KG/£1000)
0.8
General Waste
2834
Hazardous Waste - WEEE
244
Mixed Recycling
5108
Other
0.007366
Cardboard
2
Water Consumption per Employee
21 m3

MAV

Waste by Site Turnover (KG/£1000)
4.4
General Waste
11543
Hazardous Waste - WEEE
327
Mixed Recycling
23135
Other
0.014732
Cardboard
N/A
Water Consumption per Employee
N/A

TGS - Pike Works

Waste by Site Turnover (KG/£1000)
1.4
General Waste
5460
Hazardous Waste - WEEE
450
Mixed Recycling
N/A
Other
0.007366
Cardboard
2830
Water Consumption per Employee
8.1 m3

TGS - Hollco

Waste by Site Turnover (KG/£1000)
1.8
General Waste
1811
Hazardous Waste - WEEE
175
Mixed Recycling
1026
Other
0.007366
Cardboard
5409
Water Consumption per Employee
38 m3

TGS Other Sites

General Waste
131
Hazardous Waste - WEEE
-
Mixed Recycling
197
Other
-
Cardboard
-
Water Consumption per Employee
N/A
CSR Report 2021

Community Responsibility

TTG have a history of donating to charitable causes in many ways, shapes and forms, but unfortunately much of this has gone undocumented.

  • In the past 5 years, we have donated:
  • All old IT equipment to IT Schools Africa,Wiltshire Digital Drive
  • Our most recent donation in 2021 filled the company van
  • £1000 sponsorship of local youth rugby team
  • £800 funding for local choir
  • Old solar panels to a local Birmingham school for their science department
  • £1529 Investment on a defibrillator in external cabinet for community use
  • Old demo equipment to a disabled children’s play area
  • £215 in 2021 through an employee-led charity book shop
  • £2000 donation split between two local hospices
CSR Report 2021

Charitable Schemes

  • Our employees operate several different charitable schemes, including a charity bookshop, and a charity sweet shop:
    • The sweet shop donations are in aid of Teenage Cancer Trust and Mencap, and £165 has been raised since March 2020.
    • Unfortunately, although the bookshop has been raising money for Birmingham Children’s Hospital for over 5 years, we only have a figure available for 2020.

Skill Development & Knowledge Sharing

In the past, members of the senior management team have participated in events at local educational institutions such as Cirencester College, University of Gloucestershire, Warwick University, and have made Radio show appearances – most recently joining John Darvell on BBC Sounds. Our senior management team also includes a STEM ambassador.

Work experience is offered to Year 10+ students from local schools giving them the opportunity to work across different areas of the business, including Production, R&D, Customer Services, to get an overview of working life and how a business operates.

Apprenticeships have been offered to employees of all ages, where it is felt there is either a skills gap or to assist them in progressing within the business. Recently, two employees have completed their L3 Advanced Apprenticeships in Electrical & Electronic Engineering, which has resulted in one of them transferring from Production into Engineering as a PCB Design Engineer.

UNIVERSITY PLACEMENTS

Skill Development & Knowledge Sharing

Over the years placements have been offered to University students, during their GAP year, to primarily work in Research & Development or other areas of the business dependent on their studies. Many students have graduated then returned to the business in full-time employment to gain further experience and to put their knowledge into practice.

TGS welcomed a University placement student from Aston University in 2021, who took on responsibilities in operations, project management, and marketing. By bringing their university learning to the placement project, they encouraged employees to think differently and adapt to a more digital way of working, whilst deepening their understanding of business culture. After completing the placement year, the student continued to work full-time through a flexible working arrangement that will assist in their professional development, whilst allowing them to balance university commitments and a personal life.

The Traffic Group are a member of Greener Highways. This will offer opportunities to collaborate with the highways sector with the aim of helping education and implementation of sustainable initiatives, products, services and operations.

Sustainable Value Chains

All products from The Traffic Group are designed and made in the UK

Our supplier portfolio predominantly comprises of local suppliers;
almost half of all Group suppliers are located within 50 miles from their TTG partner.

  • Plastic moulding comes from Worcester
  • Die Casting comes from Doncaster
  • Circuit boards from Stroud
  • Cable Assembly from Gloucester and Eynsford

As a group we adhere to our company policies on Modern Day Slavery, and Conflict Minerals.

Policy adherence is step one. We hope to work closely with our PCB suppliers to gain further transparency down our supply chain.

To give you an idea, we have provided the locality of each company’s suppliers according to percentage of suppliers in each category of straight-line distance from the relevant facility.

Decarbonisation

  • Scope 1 emissions
  • Scope 2 emissions
  • Scope 3 emissions
  • Renewable energy generation on-site
  • Scope 1 & 2 emissions per square foot by depot
  • EV charging points
  • CO2 per vehicle
  • Statistics on vehicle electrification

Waste & Water

  • Average total mass of annual waste
  • Average mass of waste to landfill
  • Average mass of waste diverted from landfill (by waste stream category)
  • Average mass of waste per waste stream category by depot
  • Average mass of waste generated per Åí1000 turnover by depot
  • Average annual water consumption per employee by depot
  • Percentage of recycled materials in products
  • Number of products repaired and refurbished
  • Percentage of products with end-of-life care diagrams

Community Responsibility

  • Charity Partnerships & Case Studies
  • Annual monetary charitable donations
  • Hours spent volunteering by employees in company time

Skill Development & Knowledge Sharing

  • Number of employees participating at knowledge sharing events.
  • Employee attendance for internally held events and training days.
  • Work Experience placements.

Sustainable Value Chains

  • Contact with key suppliers in relation to:
  • Conflict Minerals
  • Modern Day Slavery
  • Rare Earth Elements
  • Employee attendance for internally held training sessions
  • for value chain sustainability

Good Business Practices

Ethical Practices

It almost goes without saying that we ensure compliance with all statutory and regulatory requirements related to our activities, products and services and their environmental aspects, and in-line with the context of the organisation and having considered our interested parties.

All group organisations look to operate according to ISO 9001, 14001 and 45001 Standards, as these provide a clear base level for our social obligation to: Quality, Health and Safety, and Mitigation of Environmental Impacts.

 

Fairness, Inclusion and Respect

In addition to upholding our Gender Identity & Expression Policy and our Diversity & Inclusion Policy, The Traffic Group has a zero-tolerance attitude to bullying, harassment or victimisation of any kind. Naturally, we offer any reasonable adjustments to support employees where necessary.

Empowering Employees

The Traffic Group is committed to an ethical, inclusive and diverse working environment that respects our employee’s human rights and freedom. Naturally, employees’ safety and wellbeing is paramount and we hope to ensure that we can address any issues swiftly and effectively. All employees are given the opportunity to work flexibly, and this is done on a case-by-case basis to ensure the best outcome for both parties.

As a group, we are in the final stages of promoting all employees’ pay from the UK Government’s National Living Wage to the Living Wage foundation’s ‘Real Living Wage’. We plan to receive official certification by the end of 2022.

We are keen to support our employees’ financial well-being. Historically we have provided financial advice sessions to employees which we look to continue offering in a more structured manner.

Training and career progression opportunities are taken seriously as a group.

  • We look to further develop individuals as and when this is requested, as well as when opportunities arise within the group before looking to recruit externally. Additionally, we approach employees to offer further training and education for their job roles to allow for career path progression when opportunities arise.
    Continuing Professional Development activities are available to all employees, where training, support, and memberships of an associated professional body are provided to help our employees become more competent and effective professionals

Empowering employees and assisting any CSR activities undertaken in personal time is a priority for management regarding CSR. Flexible working arrangements, matched donations and sponsorships have been granted in the past upon request.

Circular Economy Statement

1. Product design & testing

Examples included in the product design section of our Good Business
Practices. Investment in product testing for durability and Recycled Content of Products.

2. Reducing & eliminating waste

Please see our ʻWaste & Waterʼ efforts

3. Services to extend product life

Repair and re-manufacturing services offered by each group company.

4. Services to extend useful life of materials used in product

38% of Products with End-Of-Life care diagrams.

5. Education on shared benefits of Circularity

Design team focus on circular and modular design training.