Updated: August 2026

Hippo is committed to achieving Net Zero emissions by 2040 through the implementation of carbon reduction targets and initiatives.

This Carbon Reduction Plan has been produced in response to Procurement Policy Note (PPN) 006 which specifies how Hippo Digital Limited (Hippo) should have a plan to manage greenhouse gas (GHG) emissions and have a commitment to Net Zero emissions by 2050 in order to bid for Government contracts.

Hippo is committed to supporting Government Net Zero targets by 2050 and are taking all reasonable steps to achieve this before 2050. Hippo is committed to implementing this Carbon Reduction Plan and providing a wide range of carbon reduction initiatives in the delivery of contracts. 

Emissions have been quantified following PPN 006 Technical Standard and ISO 14064-1:2019, the international standard for the quantification and reporting of GHG emissions.

This Carbon Reduction Plan has been produced in collaboration with our carbon management platform Terrea.

Download our plan

Reporting Year: FY26 (1st April 2025 – 31st March 2026)

Commitment to achieving net zero

Hippo is committed to achieving net zero emissions by 2040. This will be supported by the quantification of GHG emissions and development of a Carbon Reduction Plan in alignment with PPN 006 technical requirements on an annual basis.

Environmental measures referenced in this document will be in effect and utilised in the delivery of relevant contracts. A series of reduction targets have been set to progress towards Net Zero.  In FY27 we will be working towards Science Based Targets initiative (SBTi) aligned targets.

Introduction

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

We originally took the baseline period for quantification of GHG emissions as 1st November 2020 – 31st October 2021 and have been working on initiatives in response to our carbon footprint since 2021. In April 2023 we aligned our carbon footprint to our financial year which is 1st April to 31st March. In response to PPN 006 (Technical standard for Completion of Carbon Reduction Plans) we have re-baselined our emissions to align with this period (FY24) so that the same reporting period is used throughout.

As part of our move to science based targets in FY27 we are reviewing potential changes to our reporting scope. Based on recommendations from a third party carbon consultancy we have revised our Scope 1 and 2 emissions which relate to serviced offices (which are outside of our operational control) and moved these to Scope 3, Category 8 (Upstream Leased Asset). In addition, a gap was identified with regards to missing emissions for air conditioning and an electricity metering issue in our Leeds office. These have been amended accordingly and reflected in this document and have been applied to FY24, FY25 and FY26 for consistency and comparison purposes. 

To allow greater consistency between organisations from a CRP perspective and with the move towards science based targets, we have this year chosen to change our approach and formally include only the PPN 006 required categories in our official tCO2e measurement numbers.  We will continue to be transparent with the other categories we measure such as Employee homeworking (and in future Purchased Goods and Services for SBTi) and report on these here but these will be shown as outside of the total emissions numbers associated with the CRP.

As a growing digital consultancy whilst also reporting on our overall carbon footprint we have also provided an intensity factor which takes our average headcount for the financial year (so starting headcount + final headcount divided by 2) and uses this to determine the intensity factor per head. This includes all permanent employees, fixed term employees and direct contractors.

For transparency, our previous carbon reduction plans are available on request.

Current Year's Emissions Reporting

Reporting year: FY26 (1st April 2025 – 31st March 2026)
Additional Details relating to Emissions calculations

Emissions were calculated using a combination of DEFRA conversion factors and spend-based conversion factors sourced by Terrea (third party carbon assessment tool, formerly Dodo). Data is collected through a combination of means including manually (e.g. meter readings), through uploading reports (e.g. travel data) as well as automatic feeds from our finance system (which is automatically classified by Terrea).  Intensity factor utilises average headcount for the year (employees and contractors) at 572.

There were changes to the organisational boundaries during the reporting period, with an increase in size of the Bristol office in April 2025, a new office in Glasgow in April 2025 and increase in the size of the London office in July 2025. We continue to evolve our Leeds office to make best use of the space without acquiring new office space. There were no acquisitions or divestments.

In FY26 we continued to increase our headcount which grew by 38.8% during the year based on demand for our services (both employees and contractors).

We have continued to use dual reporting (location-based and market-based) for scope 2 purchased electricity.  Apart from a period in FY26 where our green tariff lapsed, electricity in our leased office in Leeds is based on renewable energy.

We have continued to calculate air travel and the majority of rail travel emissions using activity data from our Travel Management tool rather than following a spend based methodology. Underground travel in London remains spend based. We also introduced a commuting survey in FY26 so this data has been used to calculate Scope 3 Category 7 Employee Commuting and Category 7 – Employee homeworking.

Overview of our emissions in FY26

Scope 1 & Scope 2: Direct Emissions & Electricity

  • Scope 1 emissions reduced by 4.55 tCO2e. As we do not operate a fleet of company vehicles and our sole leased office in Leeds does not consume natural gas, our Scope 1 footprint is limited strictly to fugitive emissions.
  • Scope 2 (Location-based) emissions reduced by 3.23 tCO2e. This reduction was driven by mindful energy consumption at our Leeds office, combined with the continued annual decarbonisation of the UK national grid.
  • Scope 2 (Market-based) emissions reduced by 2.89 tCO2e. While our strategy is to procure 100% renewable electricity for our Leeds office, our contract momentarily fell out of a green tariff during FY26. Despite this temporary lapse resulting in some market-based emissions being recorded, our overall reduction in electricity consumption ensured this figure still decreased compared to FY25.

Scope 3: Value Chain Emissions

  • Category 2 (Capital Goods) increased by 40.41 tCO2e. This variance correlates directly with our 38.8% increase in headcount, which required significant expenditure on new laptops and IT equipment to support our growing team.
  • Category 3 (Fuel and Energy-Related Activities) decreased by 1.01 tCO2e. This category captures the upstream emissions (such as transmission and distribution losses) of our energy use. This natural decrease is a direct result of lowering our overall Scope 1 and Scope 2 energy consumption.
  • Category 4 (Upstream Transportation and Distribution) increased by 0.79 tCO2e. Similar to Category 2, this is due to our headcount growth and the associated courier emissions from shipping laptops and equipment to new employees.
  • Category 5 (Waste Generated in Operations) reduced by 0.67 tCO2e. This reflects in part the waste to energy emissions factors decreasing in 2025 by 27% and a full year of the smaller Birmingham office. We have also implemented a waste measurement process in Leeds, this is currently under review to ensure we have accurate data before its formal use in our CRP. In FY27 we are hoping to install a soft plastic bin in our Leeds office to reduce this further.
  • Category 6 (Business Travel) saw a significant reduction of 14.93 tCO2e. This was due to a reduction in the carbon emissions related to rail travel which is the predominant form of transport for business travel. Road mileage currently does not take into consideration the type of car used e.g. petrol/diesel/EV, however through our SECR reporting we know 13% of our mileage is EV usage and that the total number of miles in FY26 was less than in FY25.
  • Category 7 (Employee Commuting) only increased by 1.83 tCO2e, despite a headcount increase of 38.8%. This change is due to utilising primary commuting survey data this year, which provided a more accurate representation of how often, how far, and by what methods employees travelled to the office. Notably, 12.9% of Hippos travelled to the office via active commuting (walking, running, or cycling).
  • Category 7 (Employee Homeworking) increased by just 7.09 tCO2e, again contrasting with the 38.8% headcount growth. As with commuting, implementing our employee survey provided a much more accurate baseline of actual working-from-home habits vs consultants working on client sites (whereas this previously was always counted as working from home emissions).
  • Category 8 (Upstream Leased Assets) reduced by 2.4 tCO2e. In February 2025 we significantly reduced our serviced office space in Birmingham, which over a full 12 month period has contributed to the reduction of emissions in FY26.

Emissions from downstream transportation and distribution have not been included, as the associated emissions are not estimated to be significant given that Hippo provides digital services rather than physical goods.

Whilst we have excluded Category 2, 3, 7 (Employee Homeworking) and 8 from the total emissions figures below however these are reported here for transparency:

  • Category 2 – Capital goods: 107.50
  • Category 3 – Fuel and energy related activities (T&D): 0.65
  • Category 7 – Employee homeworking: 264.51
  • Category 8 – Upstream Leased Assets: 5.79
Emissions TOTAL (tCO2e)
Scope 1 0.61
Scope 2 (location-based) 6.39
Scope 2 (market-based) 4.05

Scope 3 (included sources)

  • Category 4 – Upstream transportation and distribution 1.24
  • Category 5 – Waste generated in operations: 0.56
  • Category 6 – Business Travel: 92.00
  • Category 7 – Employee commuting: 58.02
  • Category 9 – Downstream transportation and distribution – 0 tonnes (not relevant for digital consultancy providing services, not goods)
 151.82
Total emissions 158.82 (location-based)
156.48 (market-based)
(giving an intensity factor of 0.27 tCO2e per head)

Emissions reduction targets

Hippo is committed to achieving net zero emissions by 2040, ten years ahead of the Government’s 2050 target. To ensure this commitment is measurable and accountable, we have set an absolute emissions reduction trajectory against our FY24 baseline, supported by a series of specific reduction targets covering each material source of emissions in our footprint.

Our baseline was 373.53 tCO2e (market-based) in FY24. By the end of FY26 our reported emissions had fallen to 156.48 tCO2e, a reduction of 58.1% against baseline, achieved while headcount grew by 38.8% in FY26 alone. We recognise that a material part of this reduction reflects improvements in measurement methodology – principally the move to activity-based data for business travel and the introduction of a commuting survey – rather than abatement alone.

Reduction Trajectory

We will reduce our absolute reported emissions in line with the following trajectory. Interim targets are set at five-yearly intervals to enable progress to be tracked and corrective action taken.

Milestone Target (tCO2e) Reduction vs FY24 Basis
FY24 (baseline) 373.53 – Actual – market-based, PPN 006 scope
FY26 (current) 156.48 −58.1% Actual
FY30 130.73 −65% Near-term interim target
FY35 74.70 −80% Interim target
FY40 37.35 −90% Net zero – residual neutralised by certified removals

In line with recognised net zero definitions, achieving net zero in 2040 means reducing our absolute emissions by at least 90% against the FY24 baseline, with the remaining residual emissions neutralised through certified permanent carbon removals. Offsetting is used in addition to, and never in place of, these reductions.

The following targets set out how the trajectory above will be delivered across each material source of emissions for a digital consultancy. Each target is reviewed annually as part of our ISO 14001:2015 environmental management system.

Reduction strategy Target
Offices and energy
(Scope 1, Scope 2, Scope 3 – Category 8)		 Maintain 100% REGO-backed renewable electricity across all leased offices in every year from FY27, with no contractual lapse. Remain gas-free across the leased estate. Reduce electricity consumption per FTE by 30% by FY30 against FY26. Zero F-gas leakage maintained annually. Maximise office floor space/FTE to ensure best usage of office capacity. Implement office shutdowns during Christmas/New Year if there is limited office demand.
Waste
(Scope 3 Category 5)		 Improve recycling in Leeds (e.g. install soft plastics recycling) during FY27. Implement verified waste measurement across all leased offices by FY28 and reduce total waste tonnage per FTE by 25% by FY30. Revise purchasing habits based on zero waste to landfill ambition.
Business travel
(Scope 3 Category 6)		 Reduce business travel emissions per FTE by 50% by FY30 and 75% by FY35 capitalising on national rail decarbonisation and localised staffing. No domestic UK flights from FY28 where a rail alternative under 5 hours exists. 100% of grey-fleet business mileage in electric or plug-in hybrid vehicles by FY32.
Employee commuting
(Scope 3 Category 7)		 90% of commuting journeys by active commuting (walk, run, cycle) or public transport, or in an EV (supported by Hippo’s EV car scheme), by FY35. Ensure Hippo offices remain within easy access of public transport.
Serviced offices and landlords
(Scope 3 Category 8)		 Apply the sustainability selection criteria to 100% of new and renewed serviced office agreements from FY27. 100% of serviced offices on a renewable electricity supply by FY32.
Data quality
(enabler)		 Obtain independent third-party verification of the carbon footprint by FY28. Set and submit science-based targets with the Carbon Trust during FY27.

Carbon Reduction Projects

Completed Carbon Reduction Initiatives

  • Obtained ISO 14001:2015 Environmental Management System in November 2022 (FY23) and re-accredited in December 2025 (FY26) through a UKAS accredited body.
  • In October 2022 (FY23), all permanent members of staff were gifted an electric blanket to help reduce heating consumption/costs and to reduce carbon emissions whilst working from home.
  • In December 2023 (FY24), all permanent members of staff were offered the option of being sent an oodie and thermal socks which is an item of warm clothing that can be used when working at home to help reduce the need for additional heating.
  • Hired a full time ESG & Social Value Lead (2023).
  • As part of the refurbishment of Hippo’s head office in Leeds in November 2023 (FY24) we disconnected our gas supply, replaced old fluorescent tube lighting with LED, installed new energy efficient hot water boilers to all kitchen tap units, installed PIR movement sensors in low traffic areas, and repurposed as much existing furniture as we could, including all office desk chairs, the majority of meeting room seating and all our existing desk frames – installing new tops only. We also procured several upcycled items from reputable local providers including our pool table, leather armchairs, meeting pods, phone booth and storage cupboard.
  • In March 2024 (FY24), staff who travel by rail for work (and who are eligible for the national schemes) were given access to Railcards to further encourage their use of public transport e.g. in their private life.
  • In FY25, business travel was quantified using activity data rather than spend data, thereby improving the accuracy of our reporting.
  • Renewable electricity used at our leased office (except where contract lapsed temporarily). 
  • We have offset 100% of our annual carbon emissions for our base year and subsequent reporting years through verified initiatives through Dodo/Terrea and Perk (our travel provider).
  • We have established a sustainability selection criteria for offices to ensure any new office/relocation meets our ESG standards.
  • As of FY26, Hippo is a member of the Government’s Digital Sustainability Alliance (GDSA).
  • In FY26 we appointed a Sustainability Lead, a role focused on providing more sustainable digital services to clients.

Ongoing Carbon Reduction Initiatives

  • Fully maintain HVAC systems to ensure zero leaks of F-gases.
  • Provide Environmental Awareness (mandatory) and Sustainability and Climate Change (optional) training to our Hippos to support more environmentally friendly ways of working and how they can reduce their carbon footprint.
  • Provide a salary sacrifice electric car scheme providing a more affordable solution for Hippos to move to using an electric vehicle. To date, 65 Hippos have enrolled in this scheme.  This includes 10 staff who have chosen ‘nearly new’ vehicles.
  • Our employee-led environmental community, Green Hippos, provides employees with information and support on how they can personally reduce their carbon footprint at work and at home.
  • Provide 2 volunteer days per permanent employee per year which can be used on sustainability and social value initiatives. During FY25 72 hours were spent on activities to raise environmental awareness and 264 hours were spent on environmental training and education.
  • Ongoing provision of a cycle to work scheme. To date, 38 Hippos have enrolled in this scheme.
  • Use of Google products as Google matches 100% of its annual electricity consumption with a purchase of renewable energy.
  • Hippo “Ways of Working” which identifies what work is best achieved face-to-face with clients and what work can be done remotely in order to reduce unnecessary business travel.
  • New life for phones and laptops – where devices are no longer deemed fit for business use, but are in good condition, these can either be purchased by Hippos or are donated to charity. To date, 101 laptops, 2 Surface Hubs and 50 mobile telephones have been donated to charities: RiseUp, Shine, Surplus To Purpose, Solidaritech, Scope and 180 Project. 174 laptops and 25 mobile phones have been purchased by Hippos.
  • Conducting employee commuting surveys to get a more accurate understanding of travel to Hippo/client offices.
  • We have offset 100% of our annual carbon emissions for FY26 through verified initiatives through Dodo/Terrea and Perk (our travel provider).
  • Reducing waste paper by sending festive ecards with one tree planted for every card sent.
  • 5 trees planted on each permanent member of staff’s work anniversary and offer a tree planting option as part of our flexible benefits scheme. To date, 18,697 trees have been planted.
  • We have created and posted guidance by bins in our Leeds office to educate and support our employees to recycle more effectively.
  • We have established our ‘Sustainability Champions’, an employee led group working to consider how we can provide more sustainable digital services.

In the future we hope to implement further measures such as:

  • Working with the Carbon Trust to set science-based targets in line with the Paris Agreement's goal of limiting global warming to 1.5°C and seek verification through the SBTi.
  • Enhancing our waste management process to include measuring waste volumes in our leased offices and identifying reduction/recycling opportunities that will reduce the waste we send to landfill. Our Green Forum members are working on this in FY27.
  • Include a soft plastics bin in our Leeds office, to reduce the volume of waste going to landfill.
  • Identifying and working with suppliers to identify those who focus on carbon reduction strategies as part of their business operations.
  • Enhancing our home working reporting accuracy to take into account when staff are at a client site. We recognise that staff may work from client offices so in FY27 we want to establish a way to capture this in our carbon reporting to avoid double counting emissions with our clients.
  • Altering our travel policies to phase out the use of diesel and petrol cars.
  • Working with an independent organisation to validate our carbon calculation methodology.

Declaration and sign off

This Carbon Reduction Plan has been completed in accordance with PPN 006 and associated guidance and reporting standards for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard  and uses the appropriate Government emission conversion factors for greenhouse gas company reporting.

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard.

This Carbon Reduction Plan has been reviewed and signed off by the board of directors.

Signed on behalf of the supplier:

Lara Longhurst

Position: Chief Operating Officer
Date: 20th August 2026

Michael Watts

Michael Watts

Position: Chief Financial Officer (Director)
Date: 20th August 2026