DCC : Sustainability Report 2024

THE WORLD NEEDS PROGRESS FOR ALL

Sustainability Report 2024

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

WE KNOW WHAT THE WORLD NEEDS TO GROW AND PROGRESS​

THE WORLD NEEDS

SOLUTIONS

for cleaner energy, lifelong health, and the technology to make progress happen.

WE INVEST AND REINVEST IN WHAT THE WORLD NEEDS Future-focusedbusinesses and people with the enterprise and innovation to make progress happen.

WE RETURN WHAT

THE WORLD NEEDS The world needs shared value that grows and grows. Our purpose and strategy generate value for our investors - and for our colleagues, our customers, the societies we serve and the planet.

We have been doing this for 30 years as a listed company.

Contents

3	DCC at a Glance	27	Pillar Three: People & Social
5	Highlights of the Year	32	Pillar Four: Governance & Compliance
7	Introduction from the Chief Executive	35	Supplementary Information
8	Business Strategy	36	Independent Assurance Statement
9	Our Ambition	37	Definitions of Relevant Topics
10	Our Impact on the World	38	Application of EU taxonomy rules
11	Our Sustainability Framework	39	GRI Index
14	Materiality Assessment	46	SASB Index
15	Pillar One: Climate Change & Energy Transition	48	TCFD Reference Table
24	Pillar Two: Safety & Environmental Protection

Unless otherwise stated, this report covers the same group of companies and financial year as the DCC Annual Report and Accounts 2024. DCC publishes a Sustainability Report annually. For further information on sustainability in DCC please contact [e-mail].

Find out more

- DOWNLOAD OUR 2024 ANNUAL REPORT - READ MORE ON OUR WEBSITE

INVEST IN

WHAT THE

WORLD NEEDS

Annual Report and Accounts 2024

DCC plc Sustainability Report 2024

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DCC at a Glance

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

WHAT WE DO

We invest in growth and progress in three transformative sectors

DCC ENERGY

The trusted partner for commercial and industrial energy customers, reducing the complexity of the energy transition and delivering energy solutions across processes, heating and fleets. DCC Energy is leading the transition for off-grid homes, making decarbonisation simple and affordable.

-  READ MORE IN OUR ANNUAL REPORT PAGES 16 TO 23 

DCC HEALTHCARE

A leading healthcare business, partnering with consumer brands to create and manufacture high quality health and beauty products, and supplying primary and secondary care providers with essential products and services.

-  READ MORE IN OUR ANNUAL REPORT PAGES 24 TO 31

DCC TECHNOLOGY

A leading specialist distribution partner for global technology and appliance brands and customers, providing reach, simplicity and scale.

-  READ MORE IN OUR ANNUAL REPORT PAGES 32 TO 39

Volumes (litres)

15.2bn-2.2%

Adjusted operating profit

£503m+9.9%

Employees

8,789

Revenue

£859.4m +4.6%

Adjusted operating profit

£88.1m-4%

Employees

3,269

Revenue

£4.8bn-9.3%

Adjusted operating profit

£91.7m-13.6%

Employees

4,562

Profit by division

13%

13%

74%

DCC Energy

DCC Healthcare

DCC Technology

Profit by geography

11%

20%

43%

Continental Europe

UK

26% Rest of World Ireland

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DCC at a Glance Continued

OUR OPERATIONS

We are focused on growth and enabling progress.

We acquire, improve and grow diverse businesses that provide solutions for what the world needs.

We do this in 22 countries across four continents creating long-term value for our investors, our people and customers, society and the planet.

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

SUSTAINABILITY

We want to add value for everyone we deal with and we are clear on where we can do this.

Employees

16,600

Over the past decade, DCC generated total returns of more than

124%

compared to 76% returns for the FTSE 100 index

Countries

22

Continents

4

Climate Change & Energy Transition	Safety & Environmental Protection
Our goal is net zero. We are committed to leading our	Our goal is no accidents. Safety must be grounded in a culture
customers in their energy transition by providing innovative	that encourages every DCC employee and contractor to
and cleaner energy solutions, reducing carbon emissions.	identify and raise concerns.

People & Social

Our goal is to provide a vibrant, diverse and innovative place to work and be a positive member of the communities we serve. DCC is a people business, and developing and investing in our people is a key strategic objective.

Governance & Compliance

Our goal is to operate in accordance with the highest standards of ethics, compliance and corporate governance.

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Highlights of the Year

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

30 YEARS AS A LISTED COMPANY

20m

Our Scope 3 carbon emissions reduction ambition between 2019 and 2030 is 20m tonnes CO2e

35%

Proportion of services, renewables and other ('SRO') EBITA in DCC Energy this year

This year, DCC celebrates 30 years as a listed company. Over that time, we have delivered safe and reliable products and services to millions of customers, we have provided rewarding careers to thousands of colleagues, and have generated a total return to shareholders of 6,413%.

30	6,413%
Years as a Listed Company	Total Shareholder Return since Listing

We are working with our suppliers and customers to deliver the lower carbon energy solutions that the world needs.

Our ambition is to double the profitability of our energy business between 2022 and 2030, while also halving the carbon produced by the energy we sell - reducing it from approximately 40 mtCO2e to 20 mtCO2e.

Services, renewable and other income ('SRO') accounted for 35% of EBITA in DCC Energy this year, up from 28% in the prior year.

WE INVEST IN WHAT

THE WORLD NEEDS

To Enable People and Businesses to

Grow and Progress

£490m

Capital committed to acquisitions this year

Investing in entrepreneurial businesses that deliver products and services that the world needs is a key part of our business model.

In the year to 31 March 2024, we committed £490 million to acquiring 17 new businesses. Each of these businesses expands our capabilities and opportunities to deliver growth and progress.

17	This year, our investment was concentrated in the
	energy sector, enabling DCC Energy's transition to low
	carbon energy products and services.
Businesses acquired this year

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Sustainability Highlights of the Year

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

WE ENABLE PEOPLE AND BUSINESSES TO GROW AND PROGRESS

The world needs shared value that grows and grows. Our purpose and strategy generate value for our investors - and for our colleagues, our customers, the societies we serve and the planet.

CLIMATE CHANGE AND

ENERGY TRANSITION

13.6%

Reduced our Scope 1 and 2 carbon emissions by 13.6% and by 45.6% against our 2019 baseline

3.1%

Reduced our absolute Scope 3 emissions by 3.1% equating to a reduction of 1.2 million tons of CO2e in the year

£346m

£346m invested in 9 Energy Management Services acquisitions

PEOPLE

AND SOCIAL

40%

Board gender diversity

Implemented

new & expanded organisational structure in DCC Energy to deliver on strategy

SAFETY AND ENVIRONMENTAL PROTECTION

Strong performance

on process safety

Maintained

our lost time injury frequency rate ('LTIFR') below 1 incident for every 200,000 hours worked

Delivered

new Group-wide Health & Safety system enabling enhanced reporting and insights

GOVERNANCE AND

COMPLIANCE

Maintained

very high standards of corporate governance with full compliance with the UK Corporate Governance Code

Enhanced

colleagues' awareness of key supply chain, human rights, corruption and privacy risks.

7,979 colleagues did online compliance training

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Chief Executive's Introduction

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

Our commitment to operating sustainably is a direct reflection of DCC's purpose, values and strategy. It's good for our business and everyone we deal with.

OUR FUTURE FOCUS IS CLEAR

We believe that being sustainable means investing in what the world needs and providing a wide range of positive returns for our stakeholders. It means actively reducing our carbon footprint, championing improved safety practices, fostering supportive workplaces that nurture diverse talent, upholding the highest standards

of governance and, of course, delivering strong financial performance. These interconnected elements are the foundation of our Sustainability Framework.

DEAR STAKEHOLDERS,

Welcome to our 2024 Sustainability Report, covering our most recent financial year to 31 March 2024.

In a world facing significant challenges, from climate change to social inequality to increased geopolitical tensions, it's more important than ever for businesses like DCC to be a force for good.

This means that we deliver not just strong financial returns for our shareholders, but also positive outcomes such as reduced carbon emissions, safe operations and a diverse and inclusive workplace.

We are clear on where we can add most value to society and focus our efforts in those areas. The areas where we focus are set out in the four pillars of our Sustainability Framework, which provides the structure of this Report.

Building on the strong foundations laid in previous years, I am pleased that we made further progress against many of our sustainability goals this year. We're particularly proud of our achievements in the energy sector, where we are not only reducing our own carbon footprint but also actively enabling the transition to cleaner energy for our customers.

Here are some highlights of our progress:

• Meeting Expectations on Carbon Reduction: We're on track to reduce our Scope 1 and 2 carbon emissions by 50% between 2019 and 2030. We are also making steady progress against our ambition of reducing our Scope 3 emissions by 50% over the same period, principally because of the strategic shift that DCC Energy is making away from fossil fuels, but we expect to accelerate the rate of progress over the next few years.

• Leading the Charge in Renewables: DCC Energy is focused on putting cleaner energy in our customers' power. Over the last year, we significantly expanded our offerings of renewable energy solutions, including through new partnerships with renewable energy suppliers and the acquisition of businesses that bring important new products, services and skills into DCC. Last year, the proportion of DCC Energy's earnings derived from services and renewables (such as the sale and installation of solar panels and energy efficiency offerings) increased to 35%, compared to 28% in the prior year.
• Progress Across our Sustainability Framework: While our work in the energy sector is a major focus, we continue to make progress within the other pillars of our Sustainability Framework. The safety of our colleagues and the people we work with remains our top priority. We continue to support those colleagues in growing and developing and in ensuring our culture remains healthy. And, as we grow, our commitment to high standards of corporate governance and compliance with applicable laws and ethical standards is undiminished.

Our commitment to operating sustainably is a direct reflection of DCC's purpose, values and strategy. It's good for our business and everyone we deal with. We are clear on our priorities and committed to performing against them.

To all our stakeholders, I express my thanks for your continued support. I encourage you to take the time to explore this report and learn more about how DCC is driving positive change.

DONAL MURPHY

Chief Executive

13 May 2024

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Business Strategy

Introduction

A STRATEGY FIT

FOR THE FUTURE

We invest in businesses with	We reinvest and optimise the performance of
solutions that the world needs	those businesses, providing the support they
and with future growth potential.	need to enable their future success.

Strategy	Climate change	Safety	People	Governance	Supplementary Information

We invest and reinvest to deliver returns that	This future-focused strategy
are well in excess of our cost of capital and	delivers long-term, sustainable
that add value for all of our stakeholders.	value in line with our purpose.

WE LOOK AHEAD TO INVEST AND REINVEST IN FUTURE-FOCUSEDBUSINESSES THAT CAN MAKE PROGRESS HAPPEN.

WE MAKE		WE GROW
FUTURE-FOCUSED		FUTURE-FOCUSED
DECISIONS		BUSINESSES
WE LOOK FOR		WE FOCUS ON
GROWTH TRENDS	CAPITAL ALLOCATION
• Businesses that provide what the world	• Invest to generate returns well in excess
needs today and in the future.		of our cost of capital.
GROWTH POTENTIAL	• Convert profits to cash.
• Reinvest cashflows to enable further
• Talented, entrepreneurial, values-driven
management teams.		sustainable growth.
• Opportunities for organic and inorganic	• Remain an attractive buyer of new
development.		businesses.
SUSTAINABLE GROWTH	OPTIMISING PERFORMANCE
• People, products and services that can	• Proven processes for financial management
deliver progress for investors, the societies		and strategic development.
we serve and the planet.	• Central support in key areas such as
• A strategy that is integrated with the four		strategy, M&A, HR, sustainability and risk
pillars of our sustainability framework.		management.

SUPPORTED BY OUR KEY ENABLERS

• Focus on Decarbonisation	• Support for Innovation and Use of Technology
• Excellence in Safety and Operations	• Market Leadership
• Development of Future-Focused Skills	• Financial Discipline

WE CREATE

SUSTAINABLE

VALUE

WE ENABLE PEOPLE AND BUSINESSES TO GROW AND PROGRESS.

CLEANER ENERGY WORLD

Our ambition is to give all customers the power to choose a clean energy future today with inclusive and independent energy solutions.

• READ MORE IN OUR ANNUAL REPORT ON PAGES 22 TO 31

HEALTHIER WORLD

Our ambition is to enable people to lead healthier lives, throughout their lives.

• READ MORE IN OUR ANNUAL REPORT ON PAGES 32 TO 39

PROGRESSIVE WORLD

Our ambition is to make progress happen in every industry we enter with enhanced technology solutions.

• READ MORE IN OUR ANNUAL REPORT ON PAGES 40 TO 47

DCC plc Sustainability Report 2024

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Our Ambition

DCC Energy Businesses Ambition:

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

We will deliver this through our two businesses:

TO GIVE ALL CUSTOMERS

ENERGY SOLUTIONS

We bring decarbonisation closer to our customers and focus on:

ENERGY MOBILITY

We are the leading multi-fuels network focused on:

THE POWER TO CHOOSE A CLEAN ENERGY FUTURE

Commercial and industrial

We are the trusted partner of commercial customers, reducing the complexity of transition and delivering energy solutions across processes, heating and fleets.

Domestic

We will lead the transition for off-grid homes, making decarbonisation simple and affordable.

*DCC-owned brands.

Key brands

ENERGY MANAGEMENT SERVICES ('EMS')

AEI*, Centreco*, Copropriétés

Diagnostic*, DTGen*, eEnergy,

Freedom Heat Pumps*, Hafod*,

Isolatiespecialist*, Next Energy*,

Protech*, Secundo Photovoltaik*,

Solcellekraft*, WeWise*

TRADITIONAL AND LOWER CARBON

Benegas*, Brogan*, Bronberger & Kessler*, Butagaz*, Butler Fuels*, Campus*, Carlton Fuels*, Certas*, DCC Energi*, Emo Oil*, Energie Direct*, Flogas*, Gaz de Paris*, Gulf, Hicksgas*, Jones*, Northeast Oil*, Pacer Propane*, Pacific Coast Energy*, Progas*, Propane Central*, QStar*, San Isabel Services Propane*, Saveway Petroleum*, Scottish Fuels*, Shell, Swea*, TEGA*, Texaco, Top Oil* (in Austria), United Propane Gas*

Retail network	Fleet Services	Key brands
We operate a network of retail	Multi-fuel bunkering and value add	RETAIL BRANDS
forecourts on motorways and in	services for small/mid-sized fleets.	Certa*, Esso, Great Gas*, Gulf,
urban areas providing fuel and EV		QStar*, Shell, Spritkonig.
charging.		FUEL CARD BRANDS
		Allstar, BP, Certas*, Diesel Direct,
		Esso, Fastfuels, Gulf, QStar*, Shell,
		TruXtop*, UK Fuels.

*DCC-owned brands.

DCC Healthcare Businesses Ambition:

TO ENABLE

We will deliver this through our two businesses:

DCC VITAL

PATIENT HEALTH

DCC HEALTH & BEAUTY SOLUTIONS

CONSUMER HEALTH

PEOPLE TO LEAD HEALTHIER LIVES, THROUGHOUT THEIR LIVES

What we do	How we do it
We help to improve patient	We supply healthcare providers
outcomes by providing products	with high-quality medical and
and services that enable	diagnostic products for use in
healthcare providers to diagnose	hospital and primary care settings.
and treat illness.

*  DCC-owned brands.

Key brands

BioRad, Carefusion, CSL Behring,

Comfi*, Diagnostica Stago, Espiner

Medical*, Endo-Flex*, Fannin*, Fannin

LIP*, ICU Medical, Martindale

Pharma, Medi-Globe*, Medisource*,

Mölnlycke, Neo*, Nova Biomedical,

Rosemont Pharma, Siemens,

Skintact*, Smiths Medical, Smith &

Nephew, SP Services*, Urotech*,

Urovision*, VacSax*, Williams

Medical*, Wörner Medical*.

What we do

We help people to maintain and improve their health and well-being, enabling them to live well every day with self-care products.

How we do it	Key brands
We develop and manufacture	Alliance Pharma, Apoteket, Elemis,
nutritional supplements and	Estée Lauder, Force Factor, GOLO,
beauty products for brand	Glanbia, Groupe Rocher, Haleon,
owners in the growing health and	Healthspan, Holland & Barrett,
beauty market.	Lintbells, Nestlé Health Science,
	Omega Pharma, Oriflame, P&G
	Health, PZ Cussons (Childs Farm),
	Quincy Bioscience, Ren, Space
	NK, Target, Unilever, Vitabiotics.

DCC Technology Businesses Ambition:

MAKE PROGRESS HAPPEN

We will deliver this through our three businesses:

PRO TECH

WE MAKE ENHANCED

EXPERIENCES HAPPEN

INFO TECH

WE MAKE FASTER CONNECTIONS HAPPEN

LIFE TECH

WE MAKE HIGH-QUALITY LIFESTYLES HAPPEN

IN EVERY INDUSTRY WE ENTER WITH ENHANCED TECH SOLUTIONS

Key brands

Allen & Heath, Barco, Chauvet,

Dell OEM, Focusrite, Kioxia, Micron,

LG, Poly, Samsung, Sharp, NEC,

SuperMicro, WD.

What we do

We bring technologies together to create elevated experiences.

How we do it

The world needs more ways to display, process and store information. Pro Tech enables the seen and unseen management and transmission of data and content, be it solution design and building, or installation and on-going support, we bring them to market and make them work for vendor, integrator, and customer.

Key brands

Acer, Apple, Asus, Dell, Epson, HP,

Huawei, Lenovo, LG, Logitech,

Microsoft, Netgear, Meta,

Samsung, Toshiba.

What we do

We put the latest technology in people's hands, quickly.

How we do it

From laptops to mobile phones, tablets to trackpads: when the world decides it needs the latest piece of tech kit, it needs it immediately. We serve B2C and B2B markets with the latest technology, swiftly and efficiently.

Key brands

Electrolux (Frigidaire), LG,

Marshall, Midea, On Stage,

Samsung, Washburn, Zephyr.

What we do

We provide technology solutions that enrich people's lives.

How we do it

Technology has the power to improve lifestyles in many ways

• from the enjoyment of using
  smart kitchen appliances to the excitement of playing advanced musical instruments. Life Tech offers products and services designed to enhance our quality of life.

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Our Impact on the World

OUR IMPACT ON THE WORLD

Introduction	Strategy	Climate change	Safety	People	Governance	Supplementary Information

The industries where we operate are responding to some of the most important needs of society and the planet. We are committed to meeting those needs in a way that is sustainable as well as commercially successful.

TREND

PROGRESS

DCC Energy

THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE

The world needs cleaner energy to progress to net zero and to enable sustainable progress. We bring decarbonisation closer by focusing on solutions that work for our customers.

Demand for Clean Energy

Global energy demand will outstrip supply to 2030. At the same time customer desire for renewables is​ rising.

Demand for Clean Mobility

Customer desire for electric mobility will continue to rise above clean energy supply; therefore a multi-energy model is needed.

70%	£3.6trn
of energy consumed by 2050		of investment required every year to meet
will be electricity and renewables1		the Paris Agreement 2050 net zero target1
3.4m		37%​
operational public charging points		of global GHG emissions
needed within the EU by 20302		comes from fossil fuel3

Source: 1 International Energy Agency, 2 McKinsey, 3 International Energy Agency

£346m

capital committed on 9 EMS acquisitions in FY24

505	90
EV chargers across	retail sites supplying HVO
DCC's network

DCC Healthcare

THE WORLD NEEDS LIFELONG HEALTH

DCC Technology

THE WORLD NEEDS PROGRESS- MAKERS

People are living longer, and whatever stage of life they're at, we want them to be healthy too. So we support everyday health and wellness, as well as providing products that enable practitioners to diagnose and treat illness.

We are progress makers. Whatever the industry. Whatever the challenge. We make technology provide the whole solution. Acting as an enabler between global technology brands and the people and businesses who use their products, we create solutions that save time, enhance experiences and improve lifestyles.

Ageing Populations

Life expectancy has increased, yet healthy life expectancy has stayed proportionally the same. This means that we are spending more years in poor health, creating a greater need for healthcare services.

Self-Care

To stay healthy for longer, more people are taking personal control of their well-being. Making positive lifestyle changes could enable us to enjoy extra years of good health.

Powering the Tech Future

Technology has become increasingly ubiquitous in our lives and experiences, however that growth is both seen and unseen. Whether it is the digital signage in a public centre, or the data centre and networking engine sitting behind it, these need Pro Tech experts.

Supply Chain Insecurity

Climate change, war, political instability and inflation are negatively affecting businesses in all industries, across the world. And this has major implications for the security of global supply chains. Info Tech is key to assisting these insecurities.

30%	of the EU population will be
		65+ by 2060, 21% in 20221​
5.8%	compound annual growth in
		US nutritional supplements
		market 2018-20262​

Source: 1 Eurostat, 2 Nutrition Business Journal

	revenue to be added to
	professional AV industry over
£80bn the next five years1
75%	of companies felt negative
or strongly negative impacts
on their business due to2
	supply chain disruption

Source: 1 Avixa, 2 Accenture

>120	Medi-Globe medical
devices products
are supplied in over
	120 countries globally
	investment in enhanced
	capability and capacity
£40m across our health and
	beauty solutions facilities
	over the past 18 months
#1	global AV specialist
distributor by revenue
6,000	hours saved per annum
in Exertis UK with robotic
automation in logistics and

warehousing

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