CARBON REDUCTION PLAN

Supplier name: Blackhawk Network EMEA Ltd.

Publication date: 31st of August 2023

Commitment to achieving Net Zero

Blackhawk Network EMEA Ltd. (BHN) is committed to achieving Net Zero emissions for its UK Operations by 2050

Baseline Emissions Footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

Current Emissions Reporting

Emissions reduction targets

In order to continue our progress to achieving Net Zero for our UK operations, we have adopted the following carbon reduction targets.

• Carbon Neutral in Direct Operations Scope 1 & 2 by 2030 for UK operations
• Reduction in absolute Scope 1, 2 & 3 GHG Emissions by 50% by 2035 for UK operations
• Reduction in absolute Scope 1, 2 & 3 GHG Emissions by 92% by 2045 for UK operations
• Carbon Neutral in absolute Scope by 2050 for UK operations

Progress against these targets can be seen in the graphs below:

Carbon Reduction Projects

Current Carbon Reduction Initiatives

The following environmental management measures and projects have been completed or implemented since the 2019 baseline. The carbon emission reduction achieved by these initiatives equates to 13 tCO2e, a 95% reduction in scope 1 emissions against the 2019 baseline and 49 tCO2e, a 39% reduction in scope 2 emissions.

Hybrid Working

After instigating a home-working model to protect our colleagues throughout the Covid-19 pandemic, we have now moved to Hybrid and Virtual working models. This ensures every employee can either work a Hybrid working pattern (2-3 office days per working week) or a Virtual home-working arrangement where their home is their main office location and on-site attendance (Apsley & Bath offices, client visits if part of role) is very occasional. Current ratio is 83% Hybrid and 17% Remote employees, with only our Facilities Team permanently office based.

The positive impact of this two-tier model includes a drastic reduction in the amount of transport required across the workforce and energy expended on office facilities. BHN is tracking the environmental impact of this new initiative which will help significantly reduce our footprint. BHN have also conducted employee surveys which indicate these working models are having a markedly positive impact on employee wellbeing.

Virtual Meetings

BHN is also encouraging a continuation of virtual meetings whenever possible, in lieu of face-to-face attendance on site at client, supplier or our own office sites. This initiative will help reduce the scope 3 category 6 emissions.

Reduced Office Space

In an initiative linked to the Hybrid/Virtual Working Models outlined above, BHN has been able to reduce the amount of office space required, reducing the energy used and associated costs in conducting our business activities. At our Head Office in Apsley, Herts., we occupy one-third of our pre-pandemic office space. Our Bath office has been re-located from our longstanding Charlotte Street location to a site around 50% smaller in Oldfield Road. It remains within a short walk of Bath Spa Station making the train a very viable commuting option. Like the previous site, the new Bath office also offers extensive facilities for cycle-commuters including safe storage, showers, and a drying room.

Digital over Physical

A key focus area within our operations is the use of single-use plastics when distributing gift-cards. BHN has been a leading player in the shift away from physical cards to digital distribution of eGifts, which now comprise >50% of our issued rewards. Our Hawk Select voucher redemption platform sees >90% of redemptions for digital rather than physical gift cards. When our affiliate company, Gift Voucher Shop DAC, was acquired in 2020, our first key project was to launch a digital version of the popular One4all multi-retailer gift-card.

Recyclable Materials

We are committed to the reduction of single-use plastics in our supply chain and are actively converting our own products, and encouraging our partners to convert their products, to sustainable alternatives such as FSC-certified paperboard. We have set an aggressive target to convert over 75% of all products globally to be on sustainable substrates by the end of 2024.

Cyclescheme

BHN operate the UK’s largest cycle to work employee salary sacrifice benefit, Cyclescheme. In 18 years of operation, we have helped over one million employees across thousands of organisations save tax and NI on the equipment required for a healthy and environmentally friendly cycle-commute. We have always been and will remain passionate advocates of the benefits of cycle-commuting. Our annual Cycle to Work Day is national campaign aimed at getting people out of cars and onto bikes. The amount of emissions savings we have enabled for our client base are hugely significant. Barring our own employees’ use of their bikes, that data does not feed directly into our own emissions reporting, but is a part of our operations that we feel is hugely valuable to our wider ESG responsibilities, aims and goals.

Future Carbon Reduction Measures

BHN operates two facilities in the UK, responsible for a combined 75.809 MT of CO2e (scopes 1 and 2). To reduce the scope 1 and scope 2 emissions associated with BHN UK facilities, the following mitigation measures will be considered: staff behaviour changes, efficiency improvements, on-site renewable generation, power purchase agreements, virtual power purchase, and carbon credit purchases (after all other options have been exhausted). The measures will be assessed based on financial feasibility.

UK-based scope 3 emissions are more significant than scope 1 and 2 emissions and will therefore require the cooperation of BHN value chain partners. To reduce scope 3, category four, and nine emissions, BHN will continue to engage with value chain partners to report and reduce emissions. In addition to partner engagement, BHN will work with value chain partners to prioritise low and zero-emission transportation and distribution options. Where this is not possible, BHN will reallocate distribution partnerships. When all other mitigation measures have been exhausted, BHN will purchase carbon offsets.

BHN UK facilities currently contribute minimal scope 3 category five emissions because the facilities only produce office waste. BHN will continue to work with these facilities to divert as much waste as possible and eliminate waste inputs that cannot be recycled or composted. BHN will continue to work with UK-based employees to utilise the ongoing Cyclescheme when remote work is not possible. BHN will evaluate options to offset associated emissions for employees unable to cycle or use alternative transportation to commute. BHN will reduce overall business travel to reduce scope 3 category six emissions. When business travel is still necessary, BHN will prioritize traveling via rail and will offset all emissions associated with necessary business travel.

Declaration and Sign Off

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard² and uses the appropriate Government emission conversion factors for greenhouse gas company reporting³.

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard⁴.

This Carbon Reduction Plan has been reviewed and signed off by Blackhawk Network EMEA Ltd. Board.

Signed on behalf of the Supplier:

Chris Ronald, VP Incentives

Date: 31/08/2023

¹https://ghgprotocol.org/corporate-standard

²https://ghgprotocol.org/corporate-standard

³https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting

⁴https://ghgprotocol.org/standards/scope-3-standard