From Carbon Neutral to Net Zero

At the beginning of our sustainability journey, Matthew Algie aimed for carbon-neutral operations. With advances in climate science communication and a deeper understanding of our environmental impact, we are now updating our climate strategy and removing references to carbon neutrality. We are today setting a Net Zero target. This confirms our primary focus on reducing emissions from our operations and engaging actively in the decarbonisation of our supply chains.

Achieving Net Zero by 2040

We are committed to taking significant steps to reduce the emissions associated with our business. Our “Net Zero by 2040” roadmap will define specific goals and milestones required to reach our target. This roadmap will include both near-term and long-term targets and will cover the full Scope 1, Scope 2 and Scope 3 carbon inventory of the organisation.

Science-Based Targets

Our Net Zero targets have been aligned with industry best practice and follow the guidance provided by the Science Based Targets Initiative (SBTi). This alignment provides a clear, structured and transparent pathway for our emissions reductions. Although we have not yet sought external validation for these targets, we will continue to report progress transparently through annual sustainability reports.

In setting 2040 as our Net Zero target year, we are choosing to be more ambitious than the minimum requirements outlined by the SBTi and the UN Race to Zero.

Our near-term targets commit Matthew Algie to reducing Scope 1 and Scope 2 emissions by 63 percent by 2035 from a 2023 baseline. We also commit to reducing Scope 3 emissions by 63 percent by 2035 from the same baseline year.

Our long-term Net Zero targets commit Matthew Algie to reducing Scope 1 and Scope 2 emissions by 90 percent by 2040 from a 2023 baseline. We also commit to reducing Scope 3 emissions by 90 percent by 2040 from the same baseline.

Partnership with Normative

Our climate strategy has been developed in partnership with Normative, our climate accounting provider. Normative uses a science-backed emissions calculation methodology based on the Greenhouse Gas Protocol. To produce the most accurate calculations possible, Normative’s carbon accounting engine is able to use both transaction data and activity data, selecting whichever method best suits the dataset.

The platform uses automated processing to combine business data with Normative’s extensive database of scientifically validated emissions factors. Additionally, Normative can request emissions information directly from suppliers, improving the precision of upstream Scope 3 calculations.

Carbon Accounting Data

In collaboration with Normative, we have calculated our carbon emissions annually since 2021. This enables us to map our impact, establish realistic targets and reduce emissions within both our operations and supply chains. Although we had previously calculated emissions, 2023 is now our baseline year because Matthew Algie integrated Capitol Foods and Tchibo Coffee International to form Matthew Algie UK and Ireland.

Below is our emissions summary for 2023 and 2024 presented in website-friendly paragraph format.

Scope 1 – Stationary Combustion:
2023 emissions were 461 tCO₂e and 2024 emissions were 457 tCO₂e.

Scope 1 – Mobile Combustion:
2023 emissions were 909 tCO₂e and 2024 emissions were 787 tCO₂e.

Scope 2 – Electricity:
2023 emissions were 27 tCO₂e and 2024 emissions were 14 tCO₂e.

Scope 3 – Purchased Goods and Services:
2023 emissions were 20,655 tCO₂e and 2024 emissions were 25,068 tCO₂e.

Scope 3 – Capital Goods:
2023 emissions were 1,123 tCO₂e and 2024 emissions were 202 tCO₂e.

Scope 3 – Fuel and Energy Related Activities:
2023 emissions were 360 tCO₂e and 2024 emissions were 326 tCO₂e.

Scope 3 – Upstream Transportation and Distribution:
2023 emissions were 1,737 tCO₂e and 2024 emissions were 1,408 tCO₂e.

Scope 3 – Waste Generated in Operations:
2023 emissions were 36 tCO₂e and 2024 emissions were 552 tCO₂e.

Scope 3 – Business Travel:
2023 emissions were 153 tCO₂e and 2024 emissions were 250 tCO₂e.

Scope 3 – Employee Commuting:
2023 emissions were 414 tCO₂e and 2024 emissions were 441 tCO₂e.

Scope 3 – Use of Sold Products:
2023 emissions were 1,823 tCO₂e and 2024 emissions were 2,095 tCO₂e.

Scope 3 – End-of-Life Treatment of Sold Products:
Emissions recorded were negligible in both years.

Scope 3 – Downstream Leased Assets:
2023 emissions were 2,483 tCO₂e and 2024 emissions were 2,420 tCO₂e.

Year-on-Year Emissions Analysis

Between 2023 and 2024, Scope 1 and Scope 2 emissions decreased. The primary reason was a reduction in emissions from mobile combustion. In 2024, twenty-two diesel vehicles were replaced with petrol hybrid models. Due to the specific fieldwork requirements of our workforce and current limitations in UK charging infrastructure, transitioning to electric vehicles is not yet feasible. Petrol hybrids therefore represent the most practical alternative.

Alongside this, improved route planning reduced mileage, resulting in a 13.4 percent reduction in emissions attributed to mobile combustion. Electricity emissions also fell by 47.2 percent following a switch to 100 percent renewable electricity in our owned buildings. Emissions from stationary combustion remained consistent year-on-year.

Despite these reductions, overall emissions increased by 13.8 percent from 2023 to 2024. The most significant increases occurred in the “Purchased Goods and Services” category. This rise was driven largely by the adoption of updated emissions factors that more accurately estimate FLAG (Forest, Land and Agriculture) emissions ahead of expected future regulatory requirements. Although the quantity of green coffee purchased remained similar, the updated emissions factors resulted in a higher reported footprint.

An error identified in the 2023 calculation for “Use of Sold Products” caused emissions to be overcounted. This has now been corrected by reallocating emissions appropriately between “Use of Sold Products” and “Downstream Leased Assets.” Due to an increase in machines sold and a decrease in machines leased between 2023 and 2024, emissions for “Use of Sold Products” rose by 14.91 percent, while emissions for “Downstream Leased Assets” fell by 2.52 percent.

Despite increases in overall emissions, the improvements made to data quality in 2024 provide a stronger foundation for future reductions. With more accurate information, we have identified specific emissions hotspots and begun developing targeted reduction plans throughout 2024. The focus for the coming year is to implement these actions and achieve measurable reductions in Scope 3 emissions, with results to be reported in 2026.

Data correct as of 15 April 2025.