introduction.
Each year, we see climate records broken and the impact extreme weather is having on communities globally. At Randstad, we actively promote policies and practices that support the green transition, including actions to minimize our climate impact.
We are privileged and proud to be in a position that enables us to develop more skilled talent for the green economy. As the energy transition is creating huge demand for talent, we are committed to closing skills gaps and help meet the demands of new technologies, organizations and markets.
upskilling and reskilling.
The green economy is growing rapidly and new skills will be critical to its success. Randstad’s specialization approach will help markets develop more skilled talent in this field and help meet the demands of new technologies, organizations and markets. Randstad aims to reskill and upskill talent for green jobs in order to support the green transition.
minimizing our climate impact.
Because Randstad is a people business, our direct impact on the environment is less than that of other sectors such as transport or manufacturing. Almost all of our business is conducted in local markets and we have many offices close to both clients and talent, greatly reducing travel and CO2 emissions. Our commitment to environmental protection is reflected in our global environmental policy, which addresses, among other things, our commitment to energy efficiency, renewable energy deployment, waste management, reusing or recycling and limiting business travel.
net zero ambition.
Randstad pledged support to the UN's net-zero initiative in 2021, which aims to reduce global emissions by 45% by 2030 and deliver a healthier, fairer environment for all. Our company has established comprehensive greenhouse gas (GHG) emissions reduction targets aligned with global climate goals, including commitments under the Paris Agreement. We designed an action plan to reduce emissions by more than 57% across scope 1 & 2 and by over 30% in scope 3 by 2030, compared to 2019. We will continue to work toward net zero by 2050. Randstad commits to reduce absolute scope 1, 2 and 3 GHG emissions 90% by 2050 from a 2019 base year. Our net-zero targets are validated and approved by the Science Based Targets initiative (SBTi).
The progress towards our targets is reported yearly in the annual report. Additionally, our Scope 2 (indirect emissions) via the market-based approach and location-based approach can be found here.
Net-zero governance ensures the implementation of our climate strategy, environmental policy and the achievement of our net-zero goals. The net-zero journey is led by our net-zero business program lead and global head of sustainability, who are responsible for aligning the overall sustainability strategy with our net-zero commitment and for steering the net-zero program as a business to achieve our targets. They report to our global steering committee, with our Chief Financial Officer (CFO) as the executive sponsor. Our CFO is responsible for the oversight and management of climate risks and opportunities.
Our Net Zero climate strategy is part of a broader sustainability steering committee represented by Executive Leadership Team members. Climate issues are discussed annually with the Supervisory Board as part of the update on environmental, social and corporate governance (ESG) strategy, performance and reporting, as well as an update on Randstad's net-zero ambition. The climate policy assessment can be found here.
We have identified key focus areas that will drive our road to net zero. For each focus area, a global working group is headed up by a business lead. Their responsibility is to achieve the yearly reduction target related to their area by working closely with the country representatives of our six highest carbon-emitting operating companies. These representatives make sure the climate strategy of their operating company is in line with the global program. Please find more information about the focus areas below.
employee engagement with net zero.
The engagement and communication team ensures internal awareness and activation of our environmental policy, environmental impacts and net-zero commitment. Our worldwide net zero ambassador network empowers employees to engage other colleagues and contribute to net zero and green initiatives locally. Colleagues around the world had the opportunity to participate in initiatives such as a global gamification sustainability competition, global tree-planting, external business coalitions and initiatives, digital and physical clean-up events, waste-reduction campaigns and more.
sustainable mobility.
Our aim is for a significant reduction in emissions associated with our company vehicles. This includes the adoption of low-emission and electric vehicles (EVs), as well as the implementation of sustainable transportation practices. Randstad is transitioning to EV and other more efficient vehicles where possible. Several operating companies have already switched away from diesel to hybrid or more efficient cars. Most of our operating companies now have a capped CO2e emissions policy directing the choice for employees when choosing a company car. The number of sustainable company cars as part of our total fleet currently accounts for approximately 23% EV and 17% hybrid. In the Netherlands (67% EV) and Belgium (7% EV), have adopted a mandatory EV policy. AUSY, Randstad France and Germany have added EVs to the catalog for employees. The conversion of fleets in southern Europe is lagging behind due to charging infrastructure limitations.
For the remaining internal combustion engine vehicle (ICE) fleet an initiative is launched to start influencing driving behavior. A pilot in France has shown promising results that will fuel discussion for implementation of the program in all key markets.
In addition to transitioning the company fleet to EVs and influencing behavior, Randstad is also investing in alternative mobility solutions. Several initiatives were launched in Europe to facilitate the use of bicycles and public transportation and influence choices around mobility. In France, an ongoing initiative facilitates employee carpooling, while in the Netherlands and Germany, pools of bicycles are deployed for the use of talent mobility. All efforts are intended to make alternatives available and progressively influence behavior and choices around sustainability.
sustainable business travel.
We are committed to reducing the carbon impact of business-related travel through strategic policies and practices that emphasize sustainability and operational efficiency. This includes prioritizing virtual communication, utilizing greener travel options, and fostering a culture of awareness and education among our employees.
Key measures include promoting the use of low-emission transportation, such as shifting from air to rail for select European trips, and sourcing and implementing more sustainable travel options wherever possible. To ensure accountability and transparency, we have integrated detailed CO2 reporting into our travel management system, providing emissions data at the point of booking. This empowers employees to make informed, sustainable choices aligned with our environmental goals.
Our business travel sustainability initiatives also involve investments in enhanced reporting systems, enabling more precise tracking and analysis of emissions. Additionally, we have introduced robust processes to assess the necessity of trips, manage travel demand, and encourage remote engagement through advanced communication and virtual collaboration tools.
Through these efforts, Randstad aims to minimize the environmental impact while maintaining the high standards of operational excellence expected by our stake- and shareholders. By integrating communication, education, and accountability into our travel practices, we are building a more sustainable future together.
renewable energy efficiency in buildings.
We aim to minimize the carbon footprint of our facilities through energy-efficient technologies, building retrofitting and the adoption of innovative energy conservation measures, along with reducing our office footprint. In our offices, we will improve our energy use by transitioning to more efficient spaces and improving our day-to-day practices. We deployed a new methodology to measure CO2e output of non-metered buildings. This data is used as the foundation for tracking yearly improvements and setting regional targets. In collaboration with operating companies and real estate leaders, we have released our preliminary, green decision framework to make responsible real estate decisions.
To limit the use of fossil fuels, we constantly seek to increase the use of alternative, efficient and natural energy resources. For example, we partnered and invested with the landlord of our Bangalore office to install solar panels; these are already in place in our Chennai office. Almost all our computing capacity is delivered via cloud infrastructure and related operations are carried out on a global level. Together with our infrastructure partners, we manage the main contributors to reducing carbon emissions daily, including: the number of servers running, the total energy required to power each and the carbon intensity of energy sources used to power these servers.
The Randstad corporate head office is the only major building we own. The majority of all facilities worldwide are rented. Our head office uses 100%-certified green electricity, and the Randstad Belgium head office is certified for BREEAM (Building Research Establishment Environmental Assessment Method). We are convinced that our flexible workplace model with intentionality provides a unique opportunity to redesign a more optimized real estate portfolio, which will significantly reduce our CO2e output. We aim to increase employee awareness and practices to reduce energy use. Our European operating companies have taken the necessary steps to comply with the European Commission's Energy Efficiency Directive and will increasingly have better insight into their energy consumption and possible improvements.
Our goal is to switch to 100% renewable energy suppliers where possible and secure guarantees of origin for the rest of our electricity usage. In this way, conventional energy will be eliminated, contributing to a cleaner and more sustainable environment. We offset electricity-related emissions for buildings as well as for our expanding fleet of EVs. In 2024, 100% of our electricity came from sustainable sources (2023: 99%).
supplier engagement.
Randstad aims to collaborate with its suppliers to enhance sustainability across the supply chain. Our goal is to influence and support suppliers in adopting eco-friendly practices, thereby reducing the indirect emissions associated with our products and services.
Randstad is increasing the engagement of suppliers in its carbon-reduction initiatives. We envision a collaborative ecosystem where sustainability is embedded in many facets of our value chain. To align our broader sustainability objectives with our carbon reduction goals, we engage in an open dialogue with key suppliers whenever possible. We also aim to implement joint initiatives with strategic partners to achieve shared targets, fostering a sense of responsibility in our supply chain. As part of our efforts to enhance value chain transparency, we are implementing tracking and reporting mechanisms, which will enable us to measure and manage Scope 3 emissions throughout our value chain. We also work with suppliers to encourage transparency on their sustainability practices and emissions data. Our Supplier Code can be found here. This year, we had open conversations with a selection of suppliers from different markets and industries. Our aim was to understand and challenge their sustainability strategy and ambitions.
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