Sustainability metrics and targets

Our sustainability targets

We strive to make a positive social and environmental impact in our stores, operations and supply chains by focusing on core metrics and targets.

Creating sustainable value for all stakeholders

Customers

Metric	Target
Net promoter score (NPS)	Year-on-year increase %pts
% of own brand products for which we offer an easy-to-use take-back service	50% by FY24

Colleagues

Metric	Target
Employee net promoter score (eNPS)	Year-on-year increase %pts
% of role-model leaders from an ethnically diverse background	8% by FY26

Communities

Metric	Target
Group and colleague fundraising and Group cash charity contributions	Year-on-year increase

Suppliers

Metric	Target
‘More Responsibly Sourced Cotton’ in own brand range	80% by FY24 and 100% by FY25
‘More Responsibly Sourced Timber’ in own brand range	50% by FY25
% of Tier 1 factory base with audits not more than two years old	100%
% of low- or medium-risk audits	90%

Planet

Metric	Target
Scope 1 CO₂e	50% reduction by 2030
Scope 1 CO₂e/£ Group revenue	59.3% reduction by FY26
Scope 3 CO₂e	50% reduction by 2030
Virgin plastic packaging used for own brand products by weight/£ sales	30% reduction by FY25
Aggregate water footprint in own brand textiles	30% reduction by 2030

Shareholders

Metric	Target
Diluted earnings per share	Year-on-year increase

Protecting our business

Metric	Target
Reportable accidents under RIDDOR¹	Year-on-year decrease

Our sustainability performance

Key

Remuneration metric used for long-term incentive plan

Metric published for first time

Available on our corporate website

Customers

Metric	Base year	Target	FY22 performance	FY23 performance
Net promoter score (NPS)	Annual	Year-on- year increase	(4.2)%pts	(0.9)%pts
	Why this measure is important: The NPS metric is a common business tool that measures how likely people would (or would not) be to recommend a product, service or company. At Dunelm we use this to measure how our customers rate their full experience with us.
	Scope: We measure customer NPS across the different channels that our customers shop with us and the metric above is a weighted average
% of own brand products for which we offer an easy-to-use take-back service	Annual	50% by FY24	61%	61%
	Why this measure is important: This measures supports our commitment to move towards a circular economy and to reduce our impact on the planet, our supply chain and local communities.
	Scope: This metric covers own brand products sold in our stores. Further details are available in our basis of reporting document available online.

Colleagues

Metric	Base year	Target	FY22 performance	FY23 performance
Employee net promoter score (eNPS)	Annual	Year-on-year increase %pts	1%pt	(5)%pts
	Why this measure is important: This measure rates our colleagues’ experience with us. We collect information via our colleague engagement survey to help us understand where we need to improve.
	Scope: We compare results from the May survey each year. However, due to Covid the May 2020 survey was postponed, and in FY20 we compared the November 2019 and November 2018 surveys, and in FY21 we compared the May 2021 and November 2019 surveys.
% of role-model leaders from an ethnically diverse background	Annual	8% by FY26	N/A	3.8%
	Why this measure is important: At Dunelm we strive to be an inclusive organisation. We believe that having a colleague base that is representative of wider society will ultimately lead to a better proposition for our customers
	Scope: Our role-model leaders are defined as ‘Heads of’ and above and include our Regional and Store Coaches. We currently have nearly 300 of these roles across the organisation and we measure the proportion of these colleagues that come from ethnically diverse backgrounds.
	Related policies: Colleague Code of Conduct, Equality and Diversity Policy

Communities

Metric	Base year	Target	FY22 performance	FY23 performance
Group and colleague fundraising and Group cash charity contributions	Annual	Year-on-year increase %pts	£632k	£820k
	Why this measure is important: This measure recognises the efforts and various initiatives made by our colleagues across the business.
	Scope: This measures covers monies raised by colleagues in our stores and sites and any additional Group cash contributions that are made at the Executive Team’s discretion.
	Related policies: Anti-Corruption and Anti-Bribery Policy

Suppliers

Metric	Base year	Target	FY22 performance	FY23 performance
‘More Responsibly Sourced Cotton’ in own brand range	-	80% by FY24 and 100% by FY25	N/A	26%
	Why this measure is important: There are both ethical and environmental considerations associated with cotton production, which our ‘More Responsibly Sourced Cotton’ standard addresses.
	Scope: In FY23, we became Better Cotton members and moved to their verification for our Spring/ Summer 2023 products. As Autumn/Winter 2022 was a transition season, these sales were excluded. This approach is for FY23 only. Further details are available in our basis of reporting document available online.
‘More Responsibly Sourced Timber’ in own brand range	-	50% by FY25	7.1%	19.9%
	Why this measure is important: This measure is important to us as there are both ethical and environmental considerations associated with timber logging, which our ‘More Responsibly Sourced Timber’ standard addresses.
	Scope: This measures covers own brand products that contain timber.
% of Tier 1 factory base with audits not more than two years old	-	100%	98%	97%
	Why this measure is important: T: 98% Requiring our Tier 1 factory base to have audits in this timeframe is a key control to ensure that our suppliers are providing safe and legal working conditions for the people who work for them.
	Scope: All Tier 1 factories that supply Dunelm own brand products
% of low- or medium-risk audits	-	90%	74%	91%
	Why this measure is important: 55% Measuring the percentageof our Tier 1 factory base with low- to medium-risk graded audits is a key control to ensure that our suppliers are providing safe and legal working conditions for the people who work for them.
	Scope: All Tier 1 factories that supply Dunelm own brand products, including all new suppliers prior to onboarding.
	Related policies: Responsible Cotton Policy, Responsible Timber Policy, Ethical Code of Conduct for Suppliers and Partners, Modern Slavery Policy

Planet

Metric	Base year	Target	FY22 performance	FY23 performance
Scope 1 CO₂e/£ Group revenue	FY19	24% reduction by FY24	20% reduction	32% reduction
	Why this measure is important: This measure helps us to understand how successful we are in reducing our impact on the environment and achieving our long-term carbon reduction targets.
	Scope: This metric is for Scope 1 emissions only, and is calculated as absolute Scope 1 emissions divided by Group revenue. Further details are available in our basis of reporting document available online.
Scope 1 CO₂e	FY19	50% reduction by 2030	13.4% increase	0.2% reduction
Scope 3 CO₂e	FY19	50% reduction by 2030	Not reported in line with GHG protocol	30% increase
	Scope: More detail about the Group’s greenhouse gas emissions and definitions can be found on page 49.
Virgin plastic packaging used for own brand products by weight/£ sales	FY20	24% reduction by FY24	23% reduction	36% reduction
	Why this measure is important: This measure helps us to understand how successful we are in reducing our impact on the planet by reducing the amount of virgin plastic in our packaging.
	Scope: This metric includes all plastic product packaging for own brand products (primary packaging) plus sales packaging (in-store carrier bags and web delivery packaging). Plastic that has a recycled content greater than 30% is classed as a removal of plastic. Further details are available in our basis of reporting document available online.
Aggregate water footprint of new products	2019 calendar year	30% reduction	N/A	N/A
	Why this measure is important: The majority of our water footprint is from our textiles products. We have signed up to this commitment as a member of Textiles 2030 (see also page 35).
	Scope: This metric includes own brand products containing textiles, that are within key textile categories.
	Related policies: Environmental Policy, Plastics and Packaging Policy

Shareholders

Metric	Base year	Target	FY22 performance	FY23 performance
Diluted earnings per share	-	Year-on-year increase	83.6 pence	75.0 pence
	Why this measure is important: Earnings per share is a key measure for shareholders and one of the performance criteria for senior management remuneration.
	Scope: FY22 included a 53rd week for statutory reporting purposes. On a comparative 52-week basis the FY22 diluted earnings per share was 82.1 pence.
	Related policies: Code of Business Conduct

Protecting our business

Metric	Base year	Target	FY22 performance	FY23 performance
Reportable accidents under RIDDOR¹	Annual	Year-on-year decrease	18	18
	Why this measure is important: : This measures our commitment to keeping our colleagues and customers safe in our day-to-day operations.
	Scope: This metric covers all stores and sites and our home delivery network and made to measure operations
	Related policies: Code of Business Conduct

1 Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013.

In December 2022, we submitted our targets to the Science Based Targets initiative (SBTi) and were pleased to receive confirmation that our near-term and net-zero targets have been approved by the SBTi. This sees Dunelm algin to the latest climate science from the IPCC by limiting global temperature rise to 1.5°C. Dunelm intends to achieve these targets with direct emissions reductions, any residual emissions in the long-term, will be neutralised in line with SBTi criteria.

Overall Net-Zero Target
Dunelm Group PLC commits to reach net-zero greenhouse gas emissions across the value chain by FY2040 from a FY2019 base year.

Near-Term Targets
Dunelm Group PLC commits to reduce absolute scopes 1 and 2 GHG emissions 50% by FY2030 from a FY2019 base year. Dunelm Group PLC also commits to reduce absolute scope 3 GHG emissions 50% within the same timeframe.

Long-Term Targets
Dunelm commits to reduce absolute scope 1, 2 and 3 GHG emissions 90% by FY2040 from a FY2019 base year.