REG-FirstGroup Plc: Publication of Climate Transition Plan

FirstgroupAnnouncement

12/03/2025 07:15

 

FIRSTGROUP PLC

PUblication of climate transition plan

FirstGroup plc (the `Group') is pleased to announce that it has today
published its first Climate Transition Plan setting out our comprehensive
strategy to meaningfully reduce emissions, manage climate-related risks, drive
modal shift and contribute to growth and prosperity in the communities we
serve.

 

Buses, coaches and trains contribute less than 5% of the UK's transport
emissions, compared to over 50% for cars. As one of the UK's leading transport
operators carrying around two million passengers a day, FirstGroup has a
critical role to play in the climate transition. We have already received
recognition of our commitments and progress to date, such as our inclusion in
the most recent S&P Sustainability Yearbook and Clean2001 report as well as
receiving MSCI2's highest possible ESG rating of AAA.

 

In addition to the Group's 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; and

-          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.

 

The Plan also highlights the progress the Group has made to date and how we
plan to build on this progress to achieve our goals. In First Bus these
include:

 

-          more than £300m already invested in our commercial bus
fleet and infrastructure decarbonisation, with more than 650 zero emission
vehicles now in service in our regional operations, and more than 300 in
London;

-          ten depots in the UK now electrified and electrification
underway at a further five depots (c.30% of our depots) - we are the first UK
bus operator to offer access to its electric vehicle charging infrastructure
to other organisations that include DPD, Openreach, Centrica, eHGV and smaller
bus operators;  

-          a commitment to continue our investment and use of
innovative financing arrangements with an aim of achieving our target of a
zero-emission fleet by 2035; and

-          a proactive approach to make use of our expertise to work
with our local partners to tackle congestion, connect communities, enhance
customer experience and promote the bus as reliable, affordable, digitised and
accessible.

 

First Rail's two open access rail operations contributed just 1.3% of the
Group's overall emissions footprint in FY 2024 thanks to Lumo's fully electric
and Hull Trains' bi-mode fleet. The Plan also highlights how both operators
are stimulating demand and driving modal shift:

 

-          Lumo has carried almost four million passengers and
successfully helped grow demand for all rail operators on the East Coast
Mainline since its launch in October 2021, reporting seat capacity utilisation
of 75% in FY 2024; and

-          since its launch in 2000, Hull Trains has steadily
increased capacity and thanks to a £60m investment in a new bi-mode fleet
that entered service in 2019, emissions have been reduced by 65% and seat
capacity utilisation grew to almost 70% in FY 2024, significantly above the
industry average.

 

Looking ahead, the Group is actively growing its open access rail business by
adding capacity, enhancing timetables and applying for new and complementary
routes. Recent developments include:

 

-          the acquisition of track access rights for new services
between London Paddington and Carmarthen and London Euston and Stirling; and

-          the placement of a £500m order for a fleet of UK
manufactured Hitachi trains to deliver the Group's growth plan, with an option
to invest a further £460m should the applications the Group submitted last
year for new open access routes be successful.

 

For First Rail's Department for Transport contracted Train Operating Companies
(`DfT TOCs') the Plan highlights:

 

-          high level decarbonisation goals set by the DfT TOCs
including reaching net-zero emissions by 2050 and removing diesel-only
traction by 2040, aligning with the UK Government's targets;

-          First Rail-led trials of battery train technologies,
low-carbon fuels, and collaboration with Network Rail to improve energy
efficiency and expand track electrification; and

-          initiatives to stimulate demand through enhanced customer
service, flexible ticketing, the introduction of digital technologies,
integrating routes with onward travel and improving accessibility 

 

The Climate Transition Plan is available on the Group's website:
https://www.firstgroupplc.com/investors/reports-and-presentations.aspx

 

Commenting, FirstGroup Chief Executive Officer Graham Sutherland said:

"As a leading public transport operator, we have a critical role to play in
the climate transition. Investing in decarbonisation, enhancing our operations
and driving modal shift reduces our environmental impact and supports growth
and prosperity in the communities we serve. It is also a key driver of our
commercial success. The publication of our first Climate Transition Plan
setting out our structured and ambitious approach to achieve this is an
important step in our sustainability journey."

 

 Contacts at FirstGroup: Marianna Bowes, Head of Investor Relations Stuart Butchers, Group Head of Communications corporate.comms@firstgroup.co.uk Tel: +44 (0) 20 7725 3354  Contacts at Brunswick Group: Andrew Porter / Simone Selzer Tel: +44 (0) 20 7404 5959  

 

 Contacts at Panmure Liberum: Nicholas How / John More Tel: +44 (0) 20 3100 2000  Contacts at RBC Europe Limited: James Agnew / Jack Wood Tel: +44 (0) 20 7653 4000  

 

Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR
6 Annex 1R: 3.1.

 

Definitions

1 The Clean200 lists the 200 major companies from 35 countries that are at the
forefront of the green energy transition. These are the companies that are
leading the way by putting sustainability at the heart of their products,
services, business models and investments, helping to move the world onto a
more sustainable trajectory.

2 MSCI Inc. is a leading provider of research and ratings for the global
investment community. They use a rules-based methodology to rate companies on
a AAA (industry leaders) to CCC (industry laggards) scale according to their
exposure to ESG risks and how well they manage those risks relative to peers.

Scope 1 (direct emissions) - emissions from activities owned or controlled by
our organisation. Examples of Scope 1 emissions include emissions from
combustion in owned or controlled vehicles, boilers and furnaces.

Scope 2 (energy indirect) - emissions associated with our consumption of
purchased electricity, heat, steam and cooling.

These indirect emissions are a consequence of our energy use but occur at
sources we do not own or control.

Scope 3 (other indirect) - also known as value chain emissions, they represent
the carbon associated with our supply chain. They are emissions we do not own
or control but have been generated through our business needs.

 

Forward-looking statements

Certain statements included or incorporated by reference within this document
may constitute `forward-looking statements' with respect to the business,
strategy and plans of the Group and our current goals, assumptions and
expectations relating to our future financial condition, performance and
results. By their nature, forward-looking statements involve known and unknown
risks, assumptions, uncertainties and other factors that cause actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. No statement in this document should be construed
as a profit forecast for any period. Shareholders are cautioned not to place
undue reliance on the forward-looking statements. Except as required by the UK
Listing Rules and applicable law, the Group does not undertake any obligation
to update or change any forward-looking statements to reflect events occurring
after the date of this document.

 

About FirstGroup

FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public
transport services. With £4.7 billion in revenue and around 30,000 employees,
we transported almost 2m passengers a day in FY 2024. We create solutions that
reduce complexity, making travel smoother and life easier. Our businesses are
at the heart of our communities and the essential services we provide are
critical to delivering wider economic, social and environmental goals. Each of
our divisions is a leader in its field: First Bus is one of the largest bus
operators in the UK, serving more than 25% of the population in the UK with a
fleet of over 5,7500 buses, and carrying more than a million passengers a day.
First Rail is one of the UK's largest rail operators, with many years of
experience running long-distance, commuter, regional and sleeper rail
services. We operate a fleet of c.3,700 locomotives and rail carriages through
three DfT contracted train operating companies: WCP (incorporating Avanti West
Coast and West Coast Partnership Development), GWR and SWR) and two open
access routes (Hull Trains and Lumo). We are formally committed to operating a
zero-emission First Bus fleet by 2035, and First Rail will help support the UK
Government's goal to remove all diesel-only trains from service by 2040.
During FY 2024 FirstGroup was named as one of the world's cleanest 200 public
companies for the fifth consecutive year and achieved Industry Top-Rated
status for the first time with Sustainalytics. We provide easy and convenient
mobility, improving quality of life by connecting people and communities.
Visit our website at www.firstgroupplc.com and follow us @firstgroupplc on X.



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