CSR Strategy Plan

Storm Technologies Limited

CSR Strategy Plan

Prepared by Mark Smith

March 2024

Our Approach

Storm Technologies is committed to being a successful and sustainable business, where profit, people and planet are at the heart of how we operate.

We recognise the challenges of climate change and the need to transition to Net Zero, and this has shaped our sustainability strategy.

We are committed to delivering wider positive sustainability impact for our employees and customers, reducing impact and supporting improved practices to deliver a more sustainable future.

We are active participants in industry frameworks to improve sustainability in our sector, as signatories to the Microsoft Pledge and as a Cisco Environmental Sustainability Specialist. Our emissions management is externally verified and our work in this area has delivered our Net Zero targets which build upon work we have already undertaken to limit our emissions impact from our operations. Aim

At Storm Technologies we wish to be at the forefront of efforts in our sector to deliver a successful transition to a lower carbon economy, whilst supporting overall commercial sustainability.

The targets we are setting in our sector are designed to support our leadership position on through both our own performance in direct emissions reduction, but also on supply chain emissions.

Our focus is on emissions reduction as a priority and the use of carbon offsets will only be considered where residual emissions remain, and robust offsets can be obtained to balance their impact.

Commitments

We are committed to reducing our Scope 1&2 carbon emissions by 50% by 2030 We are using 2021 as our baseline for this target and have prepared our target using external specialists. Storm Technologies Limited’s financial year 2023 is their third year of measurement.

Targets & Reduction Strategy

Storm Technologies Limited has affirmed its commitment to reducing its Scope 1 and Scope 2 emissions by 50% by the year 2030, based on the FY21 baseline. Furthermore, Storm Technologies will extend the scope of its impact assessment to encompass emissions originating from its broader supply chain. This expansion is slated for integration into the company's emission reduction targets by the year 2024. Storm Technologies has expressed its dedication to establishing stringent Net Zero targets for the period spanning from 2030 to 2050 within the forthcoming 18-month timeframe.

Delivering on our commitments

Emissions reduction and Net Zero planning is supported by our internal governance and frameworks to deliver on our goals. From board level responsibility through to dedicated senior management focus, we are developing a framework to support our Net Zero roadmap.

We have engaged carbon accounting specialists to understand our own impacts and reduction potential, as well as support the roll out of our continued measurement and reduction efforts. This provides support and expertise to our in house team.

Our transition to Net Zero will comprise the following core elements:

• Reduction of carbon emissions from our operations and staff, supported by monitoring through regular measurement and assessment.

• Reduction of carbon emissions from our logistics.

• Reduction of carbon emissions from our supply chain. These reduction areas will be driven by:

• Education to drive behavioural change and support suppliers.

• Innovation in process and service delivery

• Investment in energy and resource use efficiency

We have been measuring our Scope 1 & Scope 2 emissions since 2020

In accordance with mandatory GHG reporting, Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased electricity, heating and cooling) are required to be reported. Under SECR, it is not mandatory to report Scope 3 (indirect emissions from all other operational activity), excluding business travel impact. However, Storm Technologies Limited continues to report on key Scope 3 emission categories in order to provide a more complete picture to stakeholders and investors.

The intensity of our emissions is measured against both our employees and our revenue.

Data Estimations & Exclusions

Overall, approximately 76.8% of Storm Technologies Limited’s total emissions were generated based on estimation (6876.37 tCO2e). Best endeavours have been undertaken by Storm Technologies Limited to provide the required data, however in some cases data was not available for reporting. Full details are provided in Appendix Table 2. Where actual data was not available, data have been estimated in line with GHG and SECR reporting guidelines. Accepted estimation methodologies have been applied where data was incomplete or inexact. All estimations have been calculated using company-specific, actual data, with no proxy data used. Where input data was found to be inappropriate or missing, estimations have not been made in the absence of actual data.

It must be noted that the high estimation percentage for this reporting period comes largely from the methodologies adopted to quantify employee commuting and supply chain emissions rather than the quality of data provided. Employee commuting data was calculated via a survey, where employees provided details of commuting activity for a typical work week. Both mode of transport and distance travelled by each mode was captured for a sample of employees. This activity data was then multiplied by the number of working weeks to provide an estimated annual commuting impact for each respondent. Although employee commuting data was provided to a high quality, given the number of respondents the total emissions had to be extrapolated in accordance with the total FTE.

Supply chain emissions were quantified for Storm Technologies Limited’s top 20 suppliers by spend. Ten of these suppliers had disclosed their Scope 1 and 2 emissions on their websites. For these 10 suppliers, an average Scope 1&2 emissions factor per unit revenue has been calculated and then multiplied by Storm Technologies Limited’s 2023 spend with each of these suppliers to obtain Storm Technologies Limited’s emissions from each supplier. For suppliers that did not disclose any emissions data, an average emissions per revenue factor was estimated based on the available data for the other suppliers, and it was then multiplied by spend to estimate the rest of Storm Technologies Limited’s supply chain emissions.

Where verifiable data is not available, organisations may estimate data by:

•Direct comparison29;

•Pro-rata extrapolation30;

•Benchmarking31.

29 Direct comparison means using figures from another comparable time to fill the gap, (for example the same day/week/ month in another year).

30 Pro-rata extrapolation means using figures available for one period to get average consumption figures for a shorter period. For example, an organisation may use the average day rate of energy use for 1 April 2019 to 25 April 2019 to estimate the energy used between 26 and 30 April 2019.

31 Benchmarking means using the energy consumption of one asset or activity as a proxy to estimate the consumption of another asset. For example, an organisation may use the annual energy use of one retail outlet to estimate how much energy another retail outlet uses, particularly if they are similar size, age, or build. When calculating energy consumption from transport activities, organisation may reasonable estimations based on verifiable data (e.g. expenditure) in cases where they do not have actual usage data (e.g.. litres).

Page 4 of 6

Energy Efficiency Actions

Storm Technologies Limited has undertaken several initiatives to enhance energy efficiency and reduce carbon emissions within its operations. Firstly, the company has upgraded its lighting systems to energy-efficient alternatives, resulting in reduced energy consumption and lower carbon emissions.

Furthermore, Storm Technologies Limited has installed electric vehicle (EV) charging points on-site, as part of its commitment to promoting less emitting transportation options. This initiative aims to encourage the adoption of electric vehicles among both employees and visitors.

Moreover, the company is currently in the process of transitioning its company fleet to hybrid vehicles. This strategic shift towards hybrid technology is anticipated to significantly reduce fuel consumption and greenhouse gas emissions, thereby contributing to the overall reduction of Storm Technologies Limited's emissions profile.

Page 5 of 6

Roadmap

Delivering on our short term 2030 targets and evolving our longer term targets to fully Net Zero will require our focus on a clear roadmap to deliver our commitment to reduced emissions.

Our roadmap is based upon two elements, reduction initiatives and continued improvement of data to manage our full impact and progress to targets.

2024

Set our Scope 3 targets for 2030, using our expanded reporting and analysis of Scope 3 emissions.

Publish our progress to our Scope 1 & 2 2030 target.

Set a full Net Zero Scope 1,2 and 3 target for the 2030-2050 period.

2025

Implement supplier emissions targets as a component of our contracting and tendering process and deliver regular workshops to support our suppliers to measure and reduce their emissions.

Contact

For more information on our emissions commitments and wider strategy please contact:

Mark Smith – Operations Director mark.smith@storm.tech Page 6 of 6