Building a smarter, more sustainable future: Highlights from SMS’s 2024 Sustainability Report

Progress with purpose

Our 2024 Sustainability Report reflects a year of meaningful progress, with sustainability firmly embedded across every aspect of our business. From low-carbon infrastructure and advanced energy data to the ways we support our people, partners, and communities, these principles continue to guide both our strategy and day-to-day operations.

The report provides a comprehensive overview of our environmental, social, and governance (ESG) activities, highlighting where we are making a tangible impact.

“Within this report we are proud to share our strides and standards across all relevant aspects of environmental, social and governance progress with our customers, partners and wider stakeholders.”

Tim Mortlock, Chief Executive Officer

Accelerating the low-carbon transition

Our commitment to decarbonising the UK’s energy system remains central to our work. In 2024, we continued to grow our suite of low-carbon smart energy services, encompassing smart metering, energy data, grid-scale battery storage, and behind-the-meter solutions.

Key achievements:

• 80,981 tonnes of CO₂e (Scope 3) mitigated through our smart meters under management as of 31 December 2024.
• 5,921 tonnes of CO₂e avoided through energy efficiency projects, resulting in a total estimated carbon mitigation of 86,902 tonnes.
• 320MW of grid battery storage capacity operational across the UK by year-end, with two new sites commissioned during the year.
• A branded version of our smart energy data platform launched for a major utilities client in October, providing real-time insights to over 150,000 users.

Staying on track for net zero

SMS is targeting net zero operational emissions by 2030. During 2024, we recorded measurable reductions across key areas:

• Fleet emissions reduced by 11% compared to 2023, supported by reduced travel and ongoing investment in electric vehicles.
• Total energy consumption at Prennau House (Cardiff) decreased by 49%, following targeted sustainability upgrades.
• Scope 1 and 2 building emissions reduced by 29% due to improved monitoring and efficiency measures.

We also partnered with the Electricity Storage Network to help shape a consistent, industry-wide methodology for calculating carbon emissions from battery storage, using time-of-use grid carbon intensity as a baseline.

Supporting people and communities

Our people play a vital role in delivering sustainability outcomes. In 2024, we enhanced our focus on wellbeing, inclusivity, and recognition.

Highlights include:

• A 50% reduction in Lost Time Injury Frequency Rate (LTIFR) year-on-year, reflecting ongoing efforts to improve workplace safety.
• Introduction of an Employee Participation Plan, enabling eligible employees to benefit financially from the long-term success of the business.
• 97 employees recognised through our Living Our Values Awards, with over 395 nominations submitted across our five core values.
• Launch of the ‘Kudos’ peer recognition platform, generating 942 messages of appreciation by year-end.
• Continued accreditation as a Real Living Wage and Living Hours employer, alongside enhanced support policies for family leave, wellbeing, and hybrid working.

In partnership with Oxfordshire County Council, we contributed to a smart meter-enabled energy trial supporting residents to lower bills and reduce energy use. This initiative forms part of a wider government programme spanning up to 50,000 homes and businesses.

Acting responsibly, growing sustainably

Our approach to sustainability extends beyond carbon and energy. Strong governance, ethical leadership, and robust ESG oversight are integral to how we operate.

In 2024:

• We maintained certification across all five of our ISO management systems: ISO 14001, 45001, 27001, 9001, and 50001.
• We achieved a Gold Award from EcoVadis, placing SMS in the top 5% of global organisations assessed.
• We continued alignment with the UN Global Compact and mapped our reporting framework to the European Sustainability Reporting Standards (ESRS).

Looking ahead

As we enter the second half of 2025, our focus remains on delivering meaningful, measurable sustainability outcomes.

Key priorities:

• Continued reduction of emissions from fleet, buildings, and battery operations in line with our 2030 net zero target.
• Expansion of our behind-the-meter services through platforms such as Metis and Horizon Energy Ventures.
• Increased support for circular economy practices, including refurbishment of returned meters, contributing to an 82% recycling rate in 2024.
• Biodiversity net gain targets integrated into the development of new battery storage sites, with a flagship project underway in Warwickshire.
• Ongoing validation of our net zero pathway, supported by modelling aligned with science-based targets.

These actions reflect our enduring commitment to sustainability – as a core business principle and a shared responsibility among our teams, partners, and communities.