Owner of G4S Publishes First ESG Report

Allied Universal® is a security and facility services company. With about 127,000 customers in 96 countries and 800,000 staff, Allied Universal earns 84% of its revenue providing staffed security services including cash management. It has just published its 2021 Environment, Social and Governance (ESG) report, its first ever. This lays out its strategy, targets and progress across all ESG areas.

In 2021 Allied Universal bought G4S and this is the brand name it mostly uses outside of the US. Its environment report pays particular attention to the work of G4S, which is a leading participant in the UK’s Cash Industry Environmental Charter group.

GHG emissions

Allied Universal has adopted the protocols of the World Business Council for Sustainable Development and the World Resources Institute for Scope 1 and 2 GHG emissions. It also measures Scope 3 emissions for employee air travel. The data collected accounts for 90% of Allied Universal’s business activities.

The ESG report publishes data for 2019-2021 across the business, starting with carbon intensity and total GHG emissions. It breaks total GHG emissions down into total vehicles and building emissions, including related refrigerants. For buildings it also shows electricity emissions. Scope 1, 2 and the air travel component of Scope 3 emissions are shown.

Finally, it reports energy consumption, including building and vehicle consumption, measured as KWh. However, given the impact of the global pandemic, it is hard to establish meaningful trends behind this data.

Since 2016 G4S has reduced its Scope 1 and 2 emissions by 45% even after taking into account the impact of the COVID-19 pandemic and the sale of its Cash Solutions business. Smaller actions include exploring options to systematically recycle uniforms in Canada and the Netherlands. These are now sent to local textile processors for recycling.

In 2022 Allied Universal is working on moving its climate-related disclosures to be in line with the Taskforce on Climate-Related Financial Disclosures (TCFD) framework.

Key Performance Indicators have been set for carbon intensity measured as t/CO2e per million dollars. The target is to achieve an annual reduction of 3.5%.

Allied Universal also reported the total GHG emissions, including Scope 1 and 2 and Scope 3 air travel. While the G4S in the UK has clear GHG reduction targets, Allied Universal will extend its net- zero carbon strategy to its global footprint.

Buildings and facilities

Allied Universal has almost ten million square feet of building space around the world, ranging from offices to vehicle depots and cash centres. About 30% of Scope 1 and 2 emissions come from heating and cooling this space.

The UK, which accounts for 13% of Allied Universal’s global energy consumption, now uses entirely renewable energy in its buildings. In Turkey G4S has moved its headquarters to be based in a campus which is gold certified by Leadership in Energy and Environmental Design.

UK climate action

In 2020 in the UK G4S established a base line for its Green House Gas (GHG) emissions across Scope 1, 2 and 3 (simplistically, internal, direct and external supplier emissions). These are expressed in tonnes of CO2 equivalents, t/CO2e.

G4S UK’s scope 1 and 2 emissions were 27,672 t/CO2e, 16% of its total emissions. Of its scope 1 and 2 emissions, fuel for its vehicles accounted for 72% of the total, electricity 20% and gas 7%. It has set a target of reducing emissions by 2030 by 42% and its scope 3 emissions by 25%. By 2050, if not before, it will achieve net zero emissions.

G4S UK has a clear plan of action to achieve these reductions. It has moved to green electricity procurement, is on track to achieve zero emissions from cars by 2030 and has a fleet reduction plan for vehicles weighing less than 3.5 tonnes. By April 2022 a quarter of its fleet were low emissions or hybrid. It has started managing and measuring its scope 3 emissions, and is planning a fleet charging strategy and a supplier carbon reduction strategy. It has not yet started work, but plans to, on a property gas reduction plan.

In addition to these actions, it has also submitted it strategy to the Science Based Targets initiative (SBTi) and hopes to get verification in 2022. It has started to implement near-term actions for further data quality improvements and carbon reduction initiatives and planning the implementation of a new employee awareness and communications plans and a long term decarbonisation and residual emissions strategy.

G4S UK is collecting data on business travel with company cars using a business travel management app.

The UK business has been investing in telematic systems in its vehicle fleet which, combined with driver training and behaviour monitoring systems, has allowed significant fuel efficiency improvements and lower emissions. Where possible, more efficient engine options have been chosen. 70% of Allied Universal’s Scope 1 and 2 GHG emissions come from its 19,000 vehicle fleet.

European climate action

G4S launched a ‘road to zero’ strategy in Europe in 2021. The European region accounts for a quarter of Allied Universal’s vehicle fleet.

As of 2021, all new European region company cars are either hybrid or electric. By 2025 car emissions will be zero, 30% of vehicles weighing less than 3.5 tonne will have zero emissions and for those over 3.5 tonnes, 10% will be zero emissions. By 2035 all vehicles less than 3.5 tonnes will have zero emissions and half of those over 3.5 tonnes. By 2040 the entire fleet will be at zero.