Our purpose is to provide optimal material solutions for the benefit of society.

This encompasses our belief that plastics, when used appropriately, can be the optimal solution both functionally and environmentally for our customers. Zotefoams materials frequently form part of customers’ sustainability agenda, thanks to their lightweighting and insulation properties.

The first recorded use as insulation of materials made using our unique three stage process dates to 1925: today our products – notably our T-FIT® Insulation range – are used to insulate some of the most demanding production and industrial environments.

Lighter loads, greener future

Many of our products boast a superior performance to weight ratio relative to competing materials. For the aviation and automotive industries in particular, this offers the potential to reduce the weight of some components by as much as 65% where our foam products replace traditional materials such as silicone or Kevlar composites. When replacing our competitors foam, this can still achieve weight reductions of up to 25%.

The hierarchy of waste

reduce, reuse, recycle

Most preferred
Arrow up
Least preferred
Hierarchy of waste


Minimise the volume of material entering the supply chain by only using what is strictly necessary for the task at hand


Keep materials in circulation for as long as possible


At the end of its useful life, and where possible to do so, recycle the product rather than sending it to landfill so that it can be transformed into new products

Our products enable weight reductions of up to 65% where we replace traditional materials


Only 15kg per
cubic meter – our
lightest foam yet

*Plastazote® MP15 Flame Retardent foam 15kg/m3
Many of our materials offer a superior performance 
to weight ratio compared to those of competitors. For example, in the automotive industry, a 15, 18 or 24kg/m3 AZOTE® polyolefin foam material can outperform a 30kg/m3 competitor foam.

This reduces the volume of material entering the supply chain, and in turn, the reduction in vehicle weight increases fuel efficiency and lowers lifetime CO2 emissions.
A piece of ZOTEK F 38 measuring 100 x 100 x 15mm weighs the same as a US quarter, around 5.7grams

We recognize the role that continuous improvement plays in both enhancing the sustainability credentials of our products and helping us to operate efficiently.. to reduce the Group’s environmental impact – learn more about our progress in our Environmental, social and governance (ESG) report.

Hexagon foam environmental

Longer life
less waste

Over 20% of our 2023 sales were in the product protection category. In practical terms, these are typically used in long-term applications such as in archival solutions or in automotive totes and tool control packaging and storage applications, where the unparalleled durability and purity of our products make them the preferred solution.

T-FIT® insulation delivers sustainability on account of both the unmatched energy efficiency that the insulation helps customer achieve and the lifetime solution that it provides in industrial, pharma and food/beverage manufacturing environments.
ReZorce Cartons
Going full circle
Our ReZorce® mono-material barrier packaging solution is designed for circularity, unlike conventional liquid paperboard. Our Ecozote® block foams range incorporates 30% recycled content. We are also evaluating the potential of a foam produced entirely from recovered ocean plastic.
Four aspects of our business will enable us to thrive in a lower carbon economy

Our nitrogen-based process

  • Our core high-pressure autoclave foaming process uses nitrogen borrowed from the atmosphere
  • Energy and raw material become the only environmental impact
  • Process becoming more efficient as we invest

Efficient use of raw material

  • Our technology delivers foam products with  better performance per unit of weight
  • Less material, with the integrity and durability  to necessitate less frequent replacement

Our products’ role in avoiding emissions

  • Zotefoams products are typically used in ways that reduces emissions and conserves scarce resources
  • These include thermal insulation, protecting products in transit adding minimal additional weight, replacing heavier alternative materials

New product development

  • We have developed and marketed lighter, more efficient, less wasteful, longer life products – including the world’s lightest closed cell crosslinked foam.
  • We have set out to improve post-consumer recycling rates of single-use packaging by designing ReZorce® mono-material barrier packaging for full compatibility with HDPE recycling (stream 2)

While we do not measure ourselves against the SDGs, many of our Environmental, Social and Governance activities align with many of the goals:

1 No Poverty
2. Zero Hunger
3. Good health and well being
4. Quality education
6. Clean water and sanitation

Our 2023 Environmental, social and governance (ESG) report


All pages and notes referenced in this report refer to the 2023 Annual Report

Zotefoams’ Board considers that managing ESG contributes to long-term value creation, supports resilience, enhances the Group’s reputation and helps safeguard the business’ future. Sustainability is embedded through our strategic planning and decision-making. Below, we set out our ESG priorities, how we are progressing against them and our plan going forward.

Our purpose is to provide optimal material solutions for the benefit of society. We believe that, used appropriately, plastics are frequently the best solution offering the lowest environmental impact for the long-term applications typically delivered by our customers.

As a new Chair, it is important for me to see that we can drive growth which is both sustainable and inclusive. Significant progress has been achieved in ESG matters in the past three years and we continue to work with all our stakeholders to enhance our corporate disclosures. Our efforts have been rewarded with external recognition. Zotefoams holds an MSCI AAA rating reflecting very good standards of governance and well-established social practices. And as 85% of our revenues arise from green activities, the London Stock Exchange has awarded Zotefoams the Green Economy Mark. Our ReZorce® mono-material barrier packaging product was named Best Recycled Plastic Product of the Year at the 2023 Plastics Industry Awards. We began reporting voluntarily against the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in 2021, ahead of statutory requirements. The recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) were also considered during 2023. Following a preliminary gap analysis, the Board has concluded that the support of a specialist consultant is required to map nature-related dependencies, impacts, risks and opportunities against our internal controls framework. This work is planned for 2024.

We recognise that ESG is a journey and, as we continue to improve our sustainability performance, we will look to set increasingly ambitious targets in order to remain leaders in sustainability.

We have embedded ESG considerations within our risk and opportunity management process, described on page 45, through alignment with the Sustainability Accounting Standards Board (SASB) requirements and the Financial Conduct Authority (FCA) listing rule LR 9.8.6 R(8), which implements the TCFD recommendations. The risk management process aims to support the achievement of our strategic objectives through the identification and management of risks which may impact the long-term prospects of the Group. Corporate ESG objectives, which flow down to all areas of our operations and incorporate long-term aims, have been set and are frequently reviewed.

A Group Sustainability Steering Committee was formed in 2021 with Executive representation from all business units and locations. Its purpose is to ensure that the Group’s activities align with the expectation of stakeholders. Its responsibilities include:

  • providing governance and setting the direction for environmental sustainability matters for the Group
  • establishing environmental sustainability objectives and ensuring their continued suitability, adequacy and alignment with the direction of the Group
  • monitoring that the risks relating to environmental sustainability are identified and appropriately mitigated by the relevant steering committees and reporting any exception to the Group Internal Controls Committee.

Our HR and Training Steering Committee manages social matters. Governance issues are managed by the Board.

The Board has ultimate responsibility for environmental governance and performance and oversees a system of policies, practices and procedures that are implemented Group-wide to support Zotefoams’ environmental objectives. The Group CEO is directly responsible to the Board for environmental performance. All environmental matters are overseen by steering committees which are chaired by the Group CEO in the UK or the appropriate responsible person in subsidiary companies). The steering committees meet quarterly and consider environmental risks and opportunities, overall performance, and the impact of current and impending legislation. Under the internal controls framework outlined on page 47, the Audit Committee monitors the Group’s risk management framework, including the review of risk matrices identifying key environmental risks and opportunities faced by the Group. 

The Group takes the reporting of all environmental incidents very seriously and requires employees to report all incidents, including any near misses. All environmental incidents are investigated by appropriate levels of management to ascertain the root cause of the incident and, wherever possible, working practices and procedures are improved to minimise the risk of recurrence. In 2023, there were no prosecutions, fines or enforcement actions taken as a result of non-compliance with environmental legislation (2022: none).

Product Green revenue definition Sector revenue
Green revenue
Polyolefin Foams   Applies to: products typically manufactured using 30–50% less raw material than comparably performing foams products used for thermal insulation in construction, aviation, railway and road vehicles to replace heavier materials, enabling benefits in fuel economy products providing durable protection designed for multiple reuse. 67.6 49.6
High-Performance Products (HPP) Applies to: foams that allow for considerable increases in the efficiency of resource usage products used for thermal insulation (predominantly building and construction but also aviation) and to replace much heavier materials, enabling benefits in fuel economy (aviation systems where foam replaces heavier materials) footwear components designed with the intent to use less material. 58.1 57.4
MuCell Extrusion LLC (MEL) Applies to: microcellular foam technology licences and related machinery designed to allow considerable increases in the efficiency of resource usage by reducing the raw material used in components by 15–20%. 1.3 1.3
Total revenues   127.0 108.3
Percentage green revenues   85%
The environmental sustainability approach adopted by Zotefoams is centred on the twin principles of: i) minimising the use of natural resources through a series of internal measures aimed at reducing our carbon footprint; and ii) preferentially operating in markets where Zotefoams’ products offer unique sustainability advantages which benefit society through their use-phase resource efficiency. This is a concept defined by SASB as a product that, through its use, can be shown to improve energy efficiency, eliminate or lower greenhouse gas (GHG) emissions, reduce raw materials consumption, increase product longevity or reduce water consumption. Targets are in place to manage our Scope 1 and 2 emissions through the reduction of energy consumption, material used in manufacturing processes and waste; see pages 67 to 69. In order to align our commercial approach with customers’ use-phase efficiency, we have created a Life Cycle Assessment (LCA) template which can be used to assess typical products and applications. Our Scope 1 and 2 emissions data, along with these example LCAs, are made available to customers to enable them to make informed decisions. We continue to monitor the Scope 3 emissions under our control, or alternatively over which we have influence, and use this to guide our decision-making; for example, we preferentially select polymers with a lower carbon footprint. We are committed to using renewable electricity where feasible and 100% of the electricity used in our UK, USA (Walton) and Poland sites comes from renewable sources.
Our criteria for green revenues are products which, during manufacture or use, provide a substantial increase in the efficiency of resources used. The applications we serve are varied and diverse, so, in calculating green revenues, we have assumed that all applications within a market achieve the same benefits in resource efficiency. For transportation markets, the benefits are reduced weight products which not only use less material but also allow improved fuel efficiency. For both Product Protection and Sports and Leisure markets, the products are designed to be lighter so they use less material for the same or superior performance. For Building and Construction markets, our products are designed to save energy by sealing or insulating buildings and pipework. We have excluded revenue from sales to Industrial and Medical markets as, while some applications will undoubtedly offer resource efficiency benefits, many will use our products primarily for other performance attributes such as purity.

Environmental performance


ISO certification is focused on the three main sites (Croydon, UK, Brzeg, Poland, and Walton, USA) unless required locally for operational or financial reasons. For smaller sites, the costs arising from some ISO certifications outweigh the operational benefits and are therefore not sought. Structures sufficient to manage processes to a good standard are replicated from the larger sites.

We follow the guidance provided by ISO 14021:2016 when making environmental claims. Where appropriate, we have products certified by independent organisations when making environmental claims, such as for recycled content.

A Renewable Energy Guarantee of Origin (REGO) accredited supplier has been in place in the UK since 2021. Our foam manufacturing plants in Brzeg, Poland, and Walton, USA, also use 100% renewable electricity.


Environmental Policy



Environmental Steering Committee

Health and Safety Steering Committee

SASB requirements integrated in internal controls framework

TCFD compliance


Waste reduction

Sustainable product development

Energy consumption reduction

1    The Information Security Management Sytems ISO 27001:2022 accreditation was successfully obtained for all stated locations in Q1 2024.

A decrease in Group energy usage of 458 MWh in 2023 mainly arose through better energy management across all sites. The year saw a continuation of our focus on energy reduction for the Group. Increased visibility and daily trend analysis were combined with improved energy and waste engagement.

Key metrics

Internally recorded environmental incidents   
Level 1000
Level 2010
Company metrics (UK only)   
Energy usage (MWh)45,169*46,483*50,078*
*Specific Energy Consumption (kWh/kg)7.73**8.58**9.22**
Group metrics (All sites)   
Energy usage (MWh)68,559*69,017*72,007*
Energy usage (GJ)246,812*248,463* 
Proportion of energy from grid electricity (%)4445 
Proportion of energy from renewable sources (%)   
UK site46  
USA sites40  
Poland site46  
China site28  
*From 2022, the reported energy usage includes electricity, gas and other fuels (LNG, diesel and propane.) In prior years, not all fuels were included as they were not material. The 2021 comparative figure has been recalculated on the same basis as 2022. We are committed to using renewable electricity where feasible. 100% of the electricity used in our UK, USA (Walton) and Poland sites comes from renewable sources.

Calculation shown as mix-neutral assessment of energy usage per kg of polymer processed.

Our sustainability targets, focus on the reduction of Scope 1, 2 and use-phase carbon emissions.

ObjectiveKey performance indicator (KPI)Target AchievementScore
1Achieve a 10% reduction in the energy used to manufacture our products by 2026From a baseline of 0.74 kWh/£ in December 2021, reduce the energy used per unit revenue generated (kWh/£)20220.73 kWh/£0.66 kWh/£🟢
20230.72 kWh/£0.56 kWh/£🟢
20240.70 kWh/£  
20250.68 kWh/£  
20260.66 kWh/£  
2Further develop our product portfolio by designing and developing new products which offer our customers more sustainable solutions such that, by 2026, they will account for 5% of revenueShare of sales from products introduced from 2021 which are designed for use-phase efficiency (% of revenue)20220.5%1.20%🟢
3Halve the polymer purchased that is not in the end-product (internal waste and oversized materials) by the end of 20261Reduction in the mass of excess polymer purchased to that sold (% reduction) from a baseline at the end of 202120222.5%4.70%🟢

1    The objective to halve the polymer purchased that is not used in the end-product is calculated on a running rate at the end of 2026, whereas the KPI provides intermediate targets for the full year.

See the environmental reporting guidelines

There were no significant environmental incidents during the year (2022: none). Previous years have been analysed against an internal categorisation introduced in 2018, guided by the environmental reporting guidelines.

Environmental incidents are categorised as follows:

Level 1
Reported to Environment Agency
(e.g. polluting incident)

Level 2
Reported to local authority
(e.g. waste concerns)

Level 3
Internal report only (e.g. small
granule spills)

The Company ensures that all environmental reports of incidents are taken seriously and appropriately investigated and that the responses given are appropriate to their level of impact or potential impact. 13 internally reported Level 3 incidents (2022: 15) relating to minor machine oil spills and plastic granule spills were recorded during the year, all of which were contained. The incidents are captured by daily inspections and actioned as required. The continued yearly decrease is attributed to high levels of safety observations, employee education and ongoing implementation of the 5S method to reduce waste and increase productivity.

We continuously review opportunities to reduce our energy consumption or switch consumption to renewable sources. Opportunities are prioritised and initiatives undertaken. These include both investment in equipment and changes to processes or behaviour. During 2023 we undertook the following initiatives:

InitiativeLocationDescriptionEnergy impact
Gas compressorsCroydon, UKSoftware management system optimises the use of the most efficient compressors199 MWh electricity usage avoided during 2023
HeatersCroydon, UKInstallation of efficient variable speed drives to optime energy usage21 MWh electricity usage avoided during 2023
HeatersCroydon, UKOptimisation of running time, backup and standby of thermal oil heaters83 MWh electricity usage avoided during 2023
Low-pressure autoclavesCroydon, UKOptimisation of running times and standby of low-pressure autoclaves auxiliary systems37 T of natural gas usage avoided during second half of 2023
Air compressorsCroydon, UKOptimising operating patterns of the 450 psi air compressors57 MWh electricity usage avoided during 2023

In October 2009, the Company entered into a Climate Change Levy (CCL) agreement, which involves meeting specific voluntary targets to increase energy efficiency and reduce carbon dioxide (CO2) emissions. Provided the Company meets the requirements of the CCL agreement, it receives a rebate on its electricity bills and is also exempt from the Carbon Reduction Commitment Scheme for the plastics sector; the scheme is run by BPF Energy Limited, to which unadjusted SEC figures are reported quarterly. The scheme will run up to 2025.

The Company measures energy efficiency by taking energy consumption and dividing it by the amount of material (in kg) that passes through high-pressure autoclaves. The increase in production of our HPP foams, which generally require more processing energy than polyolefin foams, prompted us to update these metrics to be product-mix neutral in 2018. In 2023, our adjusted energy efficiency measure, Specific Energy Consumption (SEC), decreased 10% to 7.73 kWh/kg (2022: 8.58 kWh/kg), continuing a downward trend initiated in 2015. In 2023, the Company completed its third assessment under the Energy Saving Opportunity Scheme (ESOS) and remains compliant.

The SEC value has been reported in the Annual Report as a mix-adjusted value since 2018. This allows a product-mix-neutral assessment of energy efficiency improvements made.

Zotefoams’ products are used globally to improve people’s lives and reduce energy consumption, primarily through insulation and weight reduction. The processes we employ to create these foams allow us to use less raw material and produce lighter foams than rival processes, both of which are beneficial for carbon reduction. In making these foams, energy (both gas and electricity) is the main source of carbon emissions from our facilities.

Overall carbon emissions for 2023 were 13,335 metric tonnes (2022: 12,961 metric tonnes). Despite the Group’s energy consumption decreasing by 0.7% in 2023, carbon emissions increased by 2.9% due to an increase of 7% in the electricity conversion factor used in their calculation.

The methodology we have used is in accordance with the guidance published by the Department for Environment, Food and Rural Affairs in June 2013. We have only included emissions for which we are directly responsible. We have not included emissions for activities over which we have no direct control. For example, we have included business mileage on a company van and mileage claimed by employees in the UK, but not other forms of business travel, such as travel made by employees elsewhere in the Group or travel using public transport or air travel.

Global carbon emissions

Group: carbon emissions (CO2 tonnes)     
Scope 1 emissions (direct emissions from our operations
which includes fuel)1
Scope 2 emissions (indirect emissions, primarily electricity)6,3146,0296,7927,4646,787
Carbon emissions (kg) per material gassed (kg)

1    We do not generate our own energy.

Global pollutant emissions

NOX (excluding N2O)2.52.5

NOX and SOX calculated from Scope 1 emissions.
Volatile Organic Compounds (VOCs) and Hazardous Air Pollutants (HAPs) measured on a number of typical production days at factory emission points and scaled for total annual production volumes.

Many companies consider carbon offsetting. Zotefoams’ view is to report as a primary metric the absolute carbon emissions calculated using the UK government carbon cost of energy. We buy electricity from renewable resources, wherever available, and we do not buy carbon credits or subscribe to offset schemes such as tree planting or felling avoidance. This is the primary reason we do not set a “net zero” carbon target for the Group.

To facilitate a comparison with those who consider renewable electricity to have a zero-carbon footprint, our total carbon emissions in 2023 would be 7,055 tonnes, 53% of that quoted above.

While none of our sites are located in regions where water is scarce, we recognise that water usage is a key environmental metric which supports our sustainability proposition. Our water consumption is metered and we have specific programmes to improve efficiency and reduce water usage. Our largest contributor to water usage is our Croydon plant. Continuing a trend started in 2020, water usage decreased by 14% in Croydon in 2023 following several successful projects delivered by cross-functional teams. Minor increases in water usage in our other sites were due to higher production volumes. Work continues to monitor and ameliorate water usage.

Water consumption (000m3)




UK site




USA sites




Other sites




Global consumption




Percentage in regions with Baseline Water Stress1    



Extremely High



  1. Our Croydon, UK plant represents 82% of the water used by the Group. Although Croydon is identified as an area of high Baseline Water Stress by the Water Resource Institute, our plant is not at high risk of water scarcity or of impacting local communities’ water supply. No water was withdrawn and not consumed.

In 2021, Zotefoams put in place a Group-wide waste hierarchy framework to support decision-making on waste management. The waste hierarchy ranks options on the basis of environmental outcomes and seeks to encourage the alignment of operating improvements with minimising the impact of waste on the environment. The Group has made sustained progress through the waste hierarchy framework.  Waste recycled has increased from 27% in 2021 to 50% in 2023. Of the waste we were unable to recycle, 63% now goes to an energy recovery facility, compared to 20% in 2021. This has significantly reduced the waste we send to landfill from 58% in 2021 to 19% in 2023.Targeted recycling training through staff briefings has greatly helped gain traction and engagement at all levels. In 2023, a new collaboration with Biffa brought additional expertise and helped deliver further gains in Croydon, where we have seen a significant improvement from 15% of waste being recycled in 2021 to 51% in 2023. Overall, waste that is not recycled by the Group has decreased from 2,268 tonnes in 2021 to 1,413 tonnes in 2023.

Hazardous waste constituted only 0.5% of the total Group waste in 2023. This remarkably small figure is due to our unique manufacturing process. See pages 18 to 19.

Recognising the key role to be played by plastics companies in recycling, Zotefoams became a member of RECOUP in January 2024. RECOUP is the UK’s leading Plastics Recycling organisation and works across the plastic supply chain to promote best practice, provide information and aid the sustainable development of UK plastic recycling. 

Group waste metrics1202320222021 
Waste recycled (tonnes)1,3871,126856 
Waste not recycled (tonnes)1,4131,877


Total waste (tonnes)2,8003,0033,124 
Total hazardous waste (tonnes)21356  
Percentage of hazardous waste recycled20%63%  

1                 Excludes India, where waste generated is not material.

2                 2022 was the first year these metrics were reported.

Our climate-related financial disclosures for the financial year ended 31 December 2023 in accordance with the Financial Conduct Authority (FCA) listing rule LR 9.8.6 R(8) are provided below. The rule requires relevant companies to report on a ‘comply or explain’ basis against the TCFD recommendations. We have considered our ‘comply or explain’ obligation in respect of the 11 TCFD recommendations which we fully comply with. All page references below are to our 2023 Annual Report.

a. Describe the Board’s oversight of climate-related risks and opportunities
b. Describe management’s role in assessing and managing climate-related risks and opportunitiesThe Board sets the strategic aims of the Group, ensures that the necessary resources are in place to achieve the Group’s objectives and reviews management performance. The Board has oversight of climate-related matters (which include risks and opportunities) and is updated on these matters as necessary through:the Audit Committee, which is responsible for keeping under review the adequacy and effectiveness of the Group’s internal control and risk management systems, which consider climate-related risks by the appropriate Control Committees (see pages 83 to 86); andbi-annual business unit presentations, which consider both the physical and transition risks of climate change and opportunities arising from climate change and are made by the executive function head to the Board. For examples of how we integrate sustainability and climate change considerations into our strategy, see pages 26, 27 and 30.

The sustainability targets linked to climate change that we have set were incorporated into the 2023 corporate objectives. The Executive team reviewed and discussed progress towards the objectives at its meetings in January, April, September and November 2023.

a. Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term
b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning
c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C
or lower scenario

Our risk exposure to climate change is partly mitigated through operating foam manufacturing facilities in countries with high regulatory standards and through the implementation of well-established environmental management systems in all locations. The risk management framework on page 47 aims to assess the Group’s principal risks and ensure these are effectively managed across the entire business. Climate change is considered in our risk section as a principal risk. The financial impact of key climate change scenarios is reviewed below.

Physical risk such as adverse weather event disrupting manufacturing or our supply chainZotefoams sites are not located in areas under physical threat from climate change over and above an increased number of severe weather incidents. The likelihood of a severe weather impact is increasing, which in turn generates a higher expectation of supply disruption, including transportation. Most key suppliers are dual sourced, thereby mitigating this risk. As we invest in new, and update our existing, infrastructure, new designs accommodate more frequent extreme weather events arising from global warming. 
A significant increase in the
cost of energy would increase manufacturing, raw material and transportation costs and create inflationary pressures

Energy prices are a significant direct cost to our business and also to our suppliers. We have set objectives to reduce our direct energy consumption across our manufacturing sites and to reduce consumption of raw materials.

As well as reducing the consumption of energy and raw materials, we also have recourse to increasing prices to our customers. To ensure we understand the market response to such price increases, which are often implemented with a lag compared with cost inflation and after consultation with our customers, we monitor demand through our Controls Framework and Sales & Operational Planning processes. Over time, we seek to invest closer to markets which are expected to account for most of our sales volume and to improve our mix so that it includes more higher-value products, both of which mitigate the risk of higher transport costs.

A significant increase in taxation to drive behaviour, such as a carbon, plastic or waste tax

Environmental taxes are a relatively low proportion of tax revenues. They have been used to change consumer behaviour (plastic bag tax, Climate Change Levy, landfill tax) and offer opportunity as well as risk.

It is likely that taxes will be used to incentivise and force quicker change as emissions reduction targets are accelerated. Passing on increased tax costs through pricing would be more difficult to achieve than for increases in the cost of energy and materials. Our Controls Framework monitors taxation trends related to climate change and plans accordingly, whether through energy efficiency initiatives, investments or product developments to accommodate changing demand patterns.

A significant shift in market demand pattern such as a move away from plastics or only sourcing circular plastic products. An increased demand for thermal insulation and lighter weight products. Increasing energy costs increase transport costOur technology produces foams with better performance and a clean foaming agent that can be used in applications which directly and indirectly save energy. This is aligned with a low-carbon economy. We have low exposure to single-use plastic markets. We have proven benefits in markets where weight saving is beneficial and where society values performance. Our product offering, managed through our Controls Framework, is evolving to meet the needs of a circular lower-carbon economy. The main challenge comes from faster transitions which reduce the time to react. In 2021, we added a Group Sustainability Steering Committee with a remit that includes monitoring and reacting to customer and market trends. 
Significant increase in water costs, directly or indirectly through taxation or levyCompared with other manufacturers, Zotefoams is not a big user of water and the relative cost is small. Any change in the cost of water will have a small impact. An environmental management system is in place to monitor water usage and identify improvement opportunities. 


Short-term: Our business model is centred around sustainability. The opportunities available to Zotefoams are detailed on pages 20 to 25. Details of our strategic objectives, including those relating to sustainability and climate change, are provided on pages 28 to 30. Progress has been made against the sustainability targets previously set. See page 67.

Medium and long term: We believe the benefits of plastics will be recognised and scarce resources will be managed to ensure optimal use and a circular economy. The processing of polymers uses less energy compared with many other materials which, with our technology benefit of producing lighter, longer-lasting products using less material and which have inherent thermal insulating performance, represents a significant opportunity as sustainability increases in importance.

Risk management

  1. Describe the organisation’s processes for identifying and assessing climate-related risks
  2. Describe the organisation’s processes for managing climate-related risks
  3. Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organisation’s overall risk management

Refer to our risk management framework on page 47 and environmental sustainability and climate change risk on page 51.

Metrics and targets

  1. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process
  2. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks
  3. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets

The SASB framework provides performance metrics for our functional steering committees to implement. See further details below.

Our Scope 1 and 2 emissions are disclosed on page 68. Our approach to managing Scope 3 emissions is detailed on page 65. The risks are managed through our risk management framework detailed on page 47.

Progress against our sustainability targets is detailed on pages 67.

In the table below, we list the principal risks most likely to be materially impacted by climate change. We also set out examples of events that could cause financial losses or impact our strategy.


A risk assessment, looking at impact and likelihood, was conducted reviewing three climate change scenarios and five risk events. The assessment was first undertaken by the Executive team and later revised following review with the entire Senior Management team. The following methodology has been used to assess the potential risk impact and the likelihood of the risk event.

Potential risk ImpactNegligible (1)Minor (2)Moderate (3)High (4)Major (5)
Business disruption / asset damage and other consequential loss<1%
Operating profit
Operating profit
Operating profit
Operating profit (ca.£1m–£2m)
Operating profit (ca.>£2m)
Politico-economic impactMinimal financial impactMaterial financial impactSerious financial impactMajor financial
Extreme financial impact
Technology impactNo need to change existing technologiesInsignificant technology update requiredSignificant technology update requiredNew technology needs to be implemented in the medium termNew technology needs to be implemented urgently
Social impactPublic awareness may exist but no public concernLocal social issue or public concernRegional social issue or public concernNational social issue or public concernInternational
social issue or
public concern
Physical impact of climate changeMinimal impactMaterial impactSerious impactMajor impactExtreme impact
Risk RatingLikelihood
 RareUnlikelyPossibleLikelyAlmost certain
Impact Major▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲

▲ Very low  ▲▲ Low   ▲▲▲ Medium   ▲▲▲▲ High    ▲▲▲▲▲ Very high

Likelihood of the risk event

Rare (1)Unlikely (2)Possible (3)Likely (4)Almost Certain (5)
Never occurred or is
highly unlikely to occur
in the next 20 years
Occurred several times
or could happen within
the next 20 years
Occurred at some point within the last 10 years and may re-occur within the next 10 yearsOccurred infrequently: less than once per year and is likely to re-occur within the next 5 yearsOccurred frequently: one or more times per year and is likely to re-occur within the next year

The following risk events arising from climate change or the transition to a low-carbon economy were considered:

  • physical risk: adverse weather event disrupts manufacturing or supply chain
  • significant increase in energy costs during transition: manufacturing costs, raw material costs, transport costs, inflationary pressures
  • significant taxation increase during transition: carbon tax, plastics tax, waste tax
  • significant shift in market demand pattern during transition: move from plastics or to circular plastic products only; increased demand for thermal insulation and lighter weight
  • significant increase in water costs: directly or indirectly through taxation or levy.

The ongoing transition to a low-carbon economy was considered through the prism of achieving global net zero carbon emissions to limit global warming. Three scenarios were considered: no target, net zero by 2070 and net zero by 2050. The transition at the global and national levels brings about political, legal, economic, technological and other changes which produce transitional risks. Transitional risks primarily affect economic performance, which we have considered in terms of our planning cycles of 1 year, 1-5 years and >5 years.

 Climate change impactBusiness as usualParis Agreement
Sustainable development scenarioAdaptions
  Unlimited global warming (>>2˚C)
No global net zero target
Limited global warming
to >2˚C
Global net zero by 2070
Limited global warming
to >1.5˚C
Global net zero by 2050
Short term
(> 1 year)
Physical riskMitigate supply chain.
Energy costs 
Demand shift 
Water costs 
Medium term (1-5 years)Physical risk▲▲▲▲▲▲Mitigate supply chain. Develop environmentally sustainable products that are part of the circular economy in markets the products benefit or are less likely to be impacted. Better use of water as we update equipment and processes.
Energy costs▲▲▲▲▲
Demand shift▲▲▲▲▲
Water costs
Long term
(>5 years)
Physical risk▲▲▲▲▲▲▲Modify existing and new infrastructure to accommodate changing climate. Business interruption insurances. Product range and pricing evolves to address taxes.
Energy costs▲▲▲▲▲▲
Demand shift▲▲▲▲
Water costs

There are significant risks from climate change and the impact increases with faster transition to a low-carbon economy. The impacts of climate change and the transition to a low-carbon economy are no greater than other risks faced by the business such as energy pricing and currency fluctuations. Our core products present opportunities in a low-carbon economy and the mitigations already in place for the current slower transition rate will help if the rate of transition increases.

SASB standards identify the subset of ESG issues that are reasonably likely to have a material impact on the financial performance of the typical company in an industry. The following table summarises our response to the sector-specific standards for chemicals companies.

TopicAccounting metricCategoryUnit of measureCodeSupporting disclosure
Greenhouse gas emissionsGross global Scope 1 emissions, percentage covered under emissions-limiting regulationsQuantitativeMetric tonnes (t) CO2
Percentage (%)
RT-CH-110a.1See Group carbon emissions table on page 68. 0% of Scope 1 emissions were covered under emissions-limiting regulations
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targetsDiscussion and analysisn/aRT-CH-110a.2See Group carbon emissions table on page 68 and targets section on page 67
Air qualityAir emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX, (3) volatile organic compounds (VOCs) and (4) hazardous air pollutants (HAPs)QuantitativeMetric tonnes (t)RT-CH-120a.1See Group carbon emissions table on page 68
Energy management(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable
(4) Total self-generated energy
QuantitativeGigajoules (GJ)
Percentage (%)

See key metrics on page 67

We do not generate our own energy

Water management(1) Total water withdrawn
(2) Total water consumed
(3) Percentage of each in regions with high or extremely high baseline water stress
QuantitativeThousand cubic meters (m³) Percentage (%)RT-CH-140a.1See water data table above
Number of incidents of non-compliance associated with water quality permits, standards and regulationQuantitativeNumberRT-CH-140a.2None
Description of water management risks and discussion of strategies and practices to mitigate those risksDiscussion and analysisn/aRT-CH-140a.3See water data table and TCFD disclosures above
Hazardous waste managementAmount of hazardous waste generated and percentage recycledQuantitativeMetric tonnes (t) Percentage (%)RT-CH-150a.1See waste data table above
Product design for use-phase efficiencyRevenue from products designed for use-phase resource efficiencyQuantitativeReporting currencyRT-CH-410a.1See Key targets section on page 67
Safety and environmental stewardship of chemicals(1) Percentage of products that contain Globally Harmonized System of Classification and Labelling of Chemicals (GHS) and Category 1 and 2 Health and Environmental Hazardous SubstancesQuantitativePercentage (%) by revenueRT-CH-410b.1Less than 5% of revenue is generated from substances that are regulated1 or are considered to be of international concern.2 100% of goods purchased and sold undergo hazard assessments. The hazardous substances, such as flame retardants and low levels of stabilisers, are non-hazardous in the finished products as they are bound into the polymer matrix
(2) Percentage of such products that have undergone a hazard assessment Percentage (%) 
Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/or environmental impactDiscussion and analysisn/aRT-CH-410b.2 
Genetically modified organisms (GMOs)Percentage of products by revenue that contain GMOsDiscussion and analysisPercentage (%)RT-CH-410c.1No products contain GMOs
Management of the legal and regulatory environmentDiscussion of corporate position related to government regulations and/or policy proposals that address environmental and social factors affecting the industryDiscussion and analysisn/aRT-CH-530a.1

Zotefoams follows all local regulations relating to health, safety and environment as well as social factors. We have a low risk appetite towards safety

See pages 75 to 77

Production by reportable segmentn/aQuantitativeCubic meters (m³) or metric tonnes (t)RT-CH-000.A7,488 tonnes of AZOTE® Polyolefin Foam and 2,074 tonnes of HPP were manufactured. There is a lag between manufacturing and sale
  1. Substances of very high concern under REACH and the EU’s Restriction of Hazardous Substances Directive or substances listed under California Prop 65.
  2. Substances controlled by the Montreal Protocol, Stockholm and Rotterdam Conventions, GHS category 1 and category 2 health hazards.

Please see the 2023 Annual Report for the full social section of our ESG report.

Please see the 2023 Annual Report for the full governance section of our ESG report.