FirstGroup

FirstGroup has a comprehensive low-carbon transition plan that covers its entire business and includes realistic actions the company plans to take to achieve its targets. The plan is informed by climate scenario analysis, taking into consideration the implications of a 1.5°C scenario. The results of the analysis are expressed in financial terms. Moreover, FirstGroup has implemented board-level oversight of climate change and there is some evidence of climate expertise amongst the company’s board members. The incentive programme of the company’s executive directors is linked to climate change with 10% of the long-term incentive plan linked to meeting emissions targets.

FirstGroup aims to achieve net-zero emissions for its Rail operations by 2050. However, the current rate of electrification of the UK rail network is not in line with achieving net-zero rail emissions by 2050, which threatens to undermine the credibility of the company’s target. If rail electrification is not completed, the company will have to invest in developing alternative fuel technologies. FirstGroup does not disclose financial information related to research and development (R&D) spending. The company should ensure that a significant proportion of its R&D investment is in low-carbon vehicles and fuel development.

FirstGroup has set a net-zero target for 2050, and an ambitious target to decarbonise its road fleet by 2035. It has also committed to set science-based targets in line with a 1.5°C scenario. However, the company has not set any intermediate targets . To align with its 1.5°C pathway, the company needs to reduce its emissions intensity by an average of 4.5% every year. Setting regularly spaced intermediate targets at gaps of no more than five years will help the company incentivise near-term actions on its longer-term goals.

FirstGroup does not currently have a publicly available strategy for engagement with customers to encourage them to reduce their greenhouse gas (GHG) emissions. Along with technological solutions , one of the main drivers of transport operators’ GHG emission levels is the demand for transport. The company should set out a clear strategy to promote its low-carbon solutions to customers. This could include providing financial incentives such as discounts or engaging in marketing campaigns.

FirstGroup has committed to achieving net-zero emissions by 2050, with an interim target to run an entirely zero-emission bus fleet by 2035. The company has also committed to having its net-zero target validated by the Science-Based Targets initiative (SBTi).

FirstGroup is planning to transition its entire bus fleet to low-carbon vehicles by 2035 with a focus on electric vehicles and the use of alternative fuels such as hydrogen and biogas. The company is also supporting the electrification of the UK rail network and is developing battery-powered and hybrid trains.

Zero-emission buses currently account for 3.3% of the company’s 4,900 buses and First Bus has secured funding for another 260 electric buses to come into operation in the next two years. Furthermore, First Rail is piloting bi-mode trains to reduce the company’s emissions from parts of the UK rail network that are yet to be electrified.

FirstGroup’s emissions intensity decreased in the period 2016-2019 at a rate faster than required by its 1.5°C pathway. However, the company’s emissions intensity increased significantly in 2020 and 2021 due to a reduction in passenger numbers as a result of the COVID-19 pandemic.

First Bus’s strategy is reliant on a significant expansion of its zero-emission fleet and there is evidence of action being taken. First Rail, on the other hand, is primarily dependent on the electrification of the UK rail network to reduce its emissions intensity. However, it is also trialling new technologies , such as battery-powered trains, as an alternative route to reducing emissions.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Additionally, the company discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. It does this through management development programmes for female employees and employees from Black, Asian and minority ethnic backgrounds, to offer opportunities for promotion into managerial roles. However, no relevant disclosure was found of the company’s assessment of employment dislocation risks. Furthermore, the company can increase disclosure on specific measures it has taken to create green and decent jobs.

The company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition. However, no relevant disclosure was found of a process for identifying skills gaps for workers and affected stakeholders in the context of the low-carbon transition. Furthermore, the company can increase disclosure on specific measures it has taken to provide reskilling, upskilling, training and education opportunities to workers and affected stakeholders. It can also disclose measures taken to embed equality of opportunity for women and vulnerable groups in these actions.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. It also expects its business relationships to respect the ILO fundamental rights at work. However, the company’s Code of Ethics does not disclose a commitment to respect all of the ILO fundamental rights at work in its own operations. Furthermore, it can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders to report human rights concerns.

The company expects its business relationships to commit to respecting worker health and safety. However, it can strengthen its commitment to respecting worker health and safety in its own operations. The company discloses that 42% of its board members are female and it discloses the gender of its workforce by employee category. However, it can strengthen its broader-level commitment to gender equality and women’s empowerment. Furthermore, the company can increase disclosure on its living wage, working hours and collective bargaining practices.

The company commits to protecting personal data. However, no relevant disclosure was found of the company having a privacy statement regarding the collection, sharing and access to personal data of employees and customers. Further, the company discloses its global tax strategy and executive-level accountability for compliance with the strategy. Additionally, it has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no evidence was found in the company’s policy documents regarding its lobbying and political engagement approach.