Codan Limited has announced a net zero emissions target for its Domo Tactical Communications (DTC) UK operations by 2040, alongside significant reductions in Scope 1, 2, and 3 emissions by 2030. The company has also implemented various measures to manage its carbon emissions, including travel and fleet management, distribution optimization, and facility upgrades. These actions are part of Codan’s broader efforts to align with the UK’s commitment to achieve net zero emissions by 2050.
Material actions and disclosures
Codan has taken several steps to manage its carbon emissions, such as engaging with key suppliers on emissions reduction strategies, installing rooftop solar and EV charging infrastructure, and prioritizing lower-emission freight options. The company has set a baseline year for DTC UK emissions from 1 July 2022 to 30 June 2023, recording a carbon intensity of 86.44 tCO2-e per million USD of revenue.
For FY26, Codan reported Scope 1 emissions of 487.08 tCO2-e and Scope 2 emissions of 1,116.06 tCO2-e, totaling 1,603.14 tCO2-e. The company aims to reduce Scope 1 and 2 emissions to zero by 2030 and achieve at least a 42% reduction in Scope 3 emissions by the same year.
Forward commitments
Codan plans to continue engaging with key suppliers on emissions reduction initiatives and monitor cost pass-through risks. The company also aims to expand its internal capability for climate-related reporting and product compliance in key jurisdictions. Additionally, Codan intends to incorporate emissions-related considerations into procurement, logistics, and distribution decisions where commercially appropriate.
Codan will review and report on emissions reduction targets annually, maintaining flexibility in pricing and margin management in response to input cost increases. The company will continue to focus on efficiency and process optimization for renewable energy and resource efficiency initiatives.
Codan’s approach to managing climate-related risks includes working with external consultants to evaluate materials and components used in its products and identify opportunities to reduce associated GHG emissions. The company also engages with key suppliers to enhance the quality of data on GHG emissions associated with the manufacture of Codan’s products.