Fair Pay & Worker Respect

The company's Lost Time Injury Rate (LTIR) was 1.7 in FY21.

However, two employee deaths due to COVID occurred in the US in 2021. The UK Gender Pay Gap was 2.8% in FY21 for specific subsidiaries, indicating a pay equity ratio of 0.972. The employee engagement score was 55% in FY21. No modern slavery or human trafficking matters were raised within the businesses in 2024. The Code of Business Conduct supports the right of employees to participate in collective bargaining and commits to compliance with wage and working-time laws.

Fair Trade & Ethical Sourcing

The company conducts annual audits to fulfill its obligations under the UK Modern Slavery Act

and requires annual reviews for each key supplier. An annual audit program focuses on high-risk areas, including on-site audits for suppliers in India and China. Zero incidents of modern slavery or human trafficking were raised during the 12-month period to 31 December 2024. The company's policy prohibits child labor, and it monitors countries supplying materials by comparing them with the Global Slavery Index. Standard purchasing contracts and long-term supply agreements across the Group must include requirements for ethical operations, such as compliance with the UK Modern Slavery Act. These policies prohibit child labor, discrimination, and threats of violence. Key suppliers are expected to sign annual compliance certificates or evidence their own ethical policies, with violations serving as grounds for contract termination.

Honest & Fair Business

Hill & Smith PLC reported zero environmental penalties for 2022, 2023, and 2024.

The company operates with a Group Whistleblowing Policy, issued in January 2024 and approved by its Board of Directors. This policy protects employees from reprisal, allows for anonymous reporting, and provides multiple channels for concerns. The number of whistleblowing reports investigated increased from 10 in 2023 to 44 in 2024. The company also maintains a strict Group Anti-Bribery and Corruption Policy, approved by the Board in March 2023. This policy prohibits bribes and kickbacks, commits the company to complying with the UK Bribery Act 2010, the Corporate Finances Act 2017, and the US Foreign Corrupt Practices Act 1977. It includes specific gift and entertainment value limits and mandates appropriate due diligence on commercial intermediaries and suppliers, with provisions for terminating relationships in case of violations.

Planet-Friendly Business

The company's near-term, long-term, and overarching net-zero emission reduction targets were approved by the Science Based Targets initiative (SBTi) in December 2023.

The company reported zero environmental penalties for five consecutive years from 2020 to 2024. It reports in response to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, stating compliance with recommended disclosures apart from partial compliance with Metrics and Targets. The company performed a high-level assessment based on climate change scenarios of 1.5°C, 2°C, and 4°C, considering timeframes of 2025, 2030, and 2040, and completed a physical climate risk vulnerability analysis for 67 operational sites. This scenario analysis is beginning to influence strategic decisions.

Zero Waste & Sustainable Products

The company reports that all packaging is recycled.

In 2024, the waste diversion rate was 77%. Hazardous waste generated at galvanizing sites, such as waste acid and degreaser, is disposed of in line with environmental regulations and recycled where locally possible. The company has incurred no environmental penalties for waste disposal from 2020 to 2024. Waste reduction initiatives include collecting and reusing rainwater at all sites, conducting energy 'treasure hunts' at five sites, implementing energy efficiency measures in UK and US galvanizing operations, and trialing a 'smart burner' system at one galvanizing site which reduced natural gas consumption by 15-20%.