Sustainability strategy

The Group aims to reduce emissions across its value chain and proactively manage the transition to a lower-carbon economy.

The Board has set ambitious goals around emissions reduction and sustainable forestry and the business has already taken big steps, including eliminating all single-use plastic in its packaging of gifts in the UK in FY24. We intend to completely remove single-use plastic from our operations in the Netherlands in FY25.

Goal 1: Reduce absolute emissions arising from its own operations (Scope 1 and Scope 2) by at least 50% by 2030, validated by the Science Based Targets initiative (SBTi), reduce operational emissions by at least 90% by 2050, and offset any emissions that cannot be reduced. Reduction targets are expressed relative to total emissions of 677 tCO2e in the baseline year of FY20.

Goal 2: Obtain commitments from suppliers to set net zero emissions reduction targets aligned with SBTi criteria representing 67% of Scope 3 emissions by April 2030 and reduce Scope 3 emissions intensity by 97% tCO2e/£1m of revenue by 2050, using FY22 as the baseline year, offsetting any emissions which cannot be reduced.

Goal 3: Reforest at least 330 hectares of woodland by the end of calendar year 2025.

Net zero operational carbon emissions

The Group is committed to: (a) reduce absolute emissions arising from its own operations (Scope 1 and Scope 2) by at least 50% by 2030 versus total emissions of 677tCO2e in the baseline year of FY20^1,2; and (b) offset any emissions that cannot be reduced. This has been validated by the Science Based Targets initiative (SBTi).

In FY24, the Group’s total Scope 1 and 2 emissions were 535tCO2e, (FY23: 540tCO2e) representing a reduction of 21% from FY20 baseline¹ emissions of 677tCO2e in FY20. The Scope 1 and 2 baseline validated by the SBTi was for total emissions of 635tCO2e at Moonpig and Greetz in FY20¹, which has been re-calculated for the acquisition of Experiences.

The reduction in emissions was driven by the full-year impact of the FY23 opening of two new fulfilment sites with high environmental standards (including a BREEAM Excellent-rated facility in the UK and a Netherlands facility retrofitted in line with best practice) and making continuous improvements.

During FY24 we conducted energy audits to understand potential actions to reduce operational emissions.

In FY25, we plan to install solar panels at our Netherlands facility and implement the findings from our recent energy audits. Additionally, we will consolidate our Dutch footprint by relocating roles between facilities and continue procuring renewable energy for our offices and operational sites.

Reducing value chain emissions

We have set a long-term goal to reduce Scope 3 emissions by 97% tCO2e/£1m of Gross Profit by 2050. We plan to obtain commitment from suppliers in setting emissions reduction targets aligned with SBTi criteria. By April 2030, we aim for suppliers covering 67% of our Scope 3 emissions to have such targets in place.

We have re-expressed Scope 3 emissions intensity for the baseline year of FY22 from 433tCO2e/£1m of gross profit to 233tCO2e/£1m of revenue³. Absolute baseline Scope 3 emissions remain unchanged at 80,928tCO2e.

As part of our process of measuring value chain emissions, we held workshops with key suppliers to introduce carbon foot printing and tools for capturing emissions data.

Our GHG emissions disclosure (on pages 15 to 16 of our Sustainability Report) includes details of our Scope 3 categories, our organisational and operational boundaries, and the methodologies we use to measure value chain emissions. Summarised disclosure of GHG emissions is also set out on pages 36 to 37 of the FY24 Annual Report and Accounts.

Reforestation

The Group is committed to reforest at least 330 hectares of woodland by the end of calendar year 2025. The Group relies on wood pulp to make its products and therefore aims to be “forest positive”. This means that we will plant more trees than we use in our operations and value chain.

In FY24, we achieved 66% cumulative delivery against this five-year goal (FY23: 46%). In partnership with Tree-Nation, we planted 66 hectares of woodland, comprising of 103,000 trees (FY22: 99,000). This is in addition to any offsetting of emissions conducted within our other goals.

Tree-Nation enabled us to focus planting activity in ecologically sensitive areas and safeguards the long-term impact of tree planting by managing the forests. In FY24 we contributed to projects in Madagascar, Nepal, Tanzania, Columbia, Thailand, India and the UK.

In FY25 the Group intends to plant a further 66 hectares of forest.

Environment policy

^{1 For Scope 1 and Scope 2 emissions, the baseline year is FY20 and this has been validated by the SBTi. The FY20 baseline has been re-calculated for FY20 emissions at Experiences, following the acquisition of that segment. For Scope 3, the baseline year is FY22, calculated to include FY22 Experiences data.}

^{2 Scope 2 emissions are calculated using the “location-based” method. For comparatives using the “market-based” method, see page 35 of the FY24 Annual Report and Accounts.}

^{3 The emissions target has been re-expressed since FY23 as the Group has decided to align its intensity reporting metric with the Corporate Sustainability Reporting Directive and therefore has presented its intensity targets as a product of revenue rather than gross profit.}

Our people strategy is focused on promoting high performance, engagement and inclusion. We foster an environment where people can learn, grow and develop their careers.

The Group’s people are critical to the delivery of its strategy. We continue to invest in both formal and informal delivery of learning and development and recorded 5,558 hours of formal learning in FY24 (FY23: 1,175 hours).

We pay all employees in the UK and Guernsey at or above both the legal minimum wage (National Living Wage) and the Real Living Wage as defined by the Living Wage Foundation¹. In the Netherlands we pay at or above the legal minimum wage (Minimumloon). There is a Works Council in place at Greetz.

Sustainability strategy includes two people goals, which focus on inclusion and engagement.

Goal 4: Maintain the combined leadership representation of women and ethnic minorities on the Leadership Team at around 50%².

Goal 5: Reach and maintain an employee engagement score at or above 72%.

Leadership diversity

The Group is committed to maintain the combined leadership representation of women and ethnic minorities in the leadership team at around 50%. We want our organisation to be representative of our customers and the communities in which we operate.

As at 30 April 2024, the combined representation of women and ethnic minorities on the Leadership Team² remained broadly consistent with the prior year at 49% (April 2023: 52%).

Across the Group, 50% of individuals newly appointed into Leadership Team² roles were female (FY23: 42%).

We will continue to develop our next generation of female leaders and monitor the retention of women and ethnic minorities currently in leadership roles.

Employee engagement

The Group has a goal to reach and maintain an employee engagement score at or above 72%. Improving engagement in our teams will improve productivity and hence business performance. It will help to ensure that employees are retained for longer, reducing recruitment costs.

In FY24, our average engagement score across two surveys for Moonpig and Greetz was 61%, in-line with the prior year (61%), although below our goal (72%). This reflects the continued challenges of operating in an economic downturn, characterised by more disciplined cost control and greater pressure to meet targets.

Management has focused during the year on increasing employees’ understanding of the Group’s strategy and it was particularly pleasing that the April 2024 score for “I understand the long-term strategic direction for Moonpig Group” improved from 62% to 81%.

Our action plan for FY25 employee engagement is built around raising the proportion of employees who agree with the survey statement “I feel proud to work for this company.”

^{1 Guernsey employees are paid in line with the UK Real Living Wage as defined by the Living Wage Foundation for “rates outside London”.}

^{2 Comprises the Executive Committee (including Executive Directors) and their direct reports who are also members of the Extended Leadership Team.}

Our community strategy focuses on charitable giving, creating opportunity in under-represented communities, on the customer and recipient experience.

Through the Moonpig Group Foundation, we support initiatives that create connections and spark moments of joy in our communities. We have several mechanisms in place to facilitate employee engagement and involvement with our charitable partners. Through the Moonpig Group Foundation our employees have access to matched funding and payroll giving to increase the value of their donations.

We encourage our highly skilled and motivated workforce to volunteer for causes, allowing paid time off for our employees to do so.

The Moonpig Group Foundation is an account within the Charities Aid Foundation (CAF), a donor-advised fund and Registered Charity (Number 268369). Governance of the charity itself is provided by the trustees of the CAF. Giving requests to the Moonpig Group Foundation are managed internally by a committee that is chaired by the CEO.

We are aware that some investors require visibility of exposure to alcohol sales. The proportion of revenue generated from alcohol products during FY24 was 5.3% (FY23: 5.3%).

The Group’s sustainability strategy includes three community goals.

Goal 6: Invest £1m between 2020 - 2025 through the Moonpig Group Foundation.

Goal 7: Maintain the level of new hires into technical roles¹ at around 45% women.

Goal 8: Reach and maintain a top-quartile customer NPS score of at least 70.

Charitable donation

The Group has committed to invest £1m between 2020 and 2025 through the Moonpig Group Foundation, supporting initiatives which help communities to be more resilient and lead happier, healthier lives.

During FY24 the Moonpig Group Foundation made charitable donations totalling £176,000 (FY23: £211,000).

As at 30 April 2024 the Foundation has cumulatively donated £620,000 (30 April 2023: £444,000) to third-party charities since being set up in FY21.

The Group also made charitable donations on its own account totalling £436,000, £304,000 to the Foundation and £132,000 direct to charities (FY23: £70,000, all to the Foundation).

Employees in each of our locations have chosen a cause to support in FY25. The chosen charities are Campaign Against Living Miserably (UK), The Willow Foundation, The Ivy Trust (Guernsey) and Stichting Jarige Job (Netherlands).

Technology community

The Group committed to maintain the level of new hires into technical roles at around 45% women. For these purposes, the definition of technology talent includes the teams in technology security, engineering, product and analytics. To deliver the Group’s strategy, we need to hire highly skilled technology workers from all areas of society.

In FY24 40% of new hires into technical roles across the Group were female (FY23: 45%). As at 30 April 2024, 33% of employees in these teams are female (2023: 34%).

We have confidence in our ability to increase these KPIs. Our current performance remains favourable compared to the wider market, which we attribute to having built excellent relationships with gender diversity organisations such as SheCanCode and Women In Tech.

During the year, we have continued to develop our mentoring and experiences programmes with them. In FY25 we will explore opportunities to more closely align recruitment processes across the Group and we will continue our partnership with Cajigo, a technology platform focused on mentoring women in technology.

Customer Net Promoter Score

The Group aims to maintain a top-quartile NPS score of at least 70. Our mission is to help people connect and it is important that our customers believe it is doing this.

In FY24, the weighted average customer NPS score across Moonpig and Greetz was 57 (FY23: 60). Over the past two years, the postal operators in the UK and the Netherlands have demonstrated poor service performance. In the UK, Royal Mail consistently failed to meet the Service Level Agreement for next-day letter post deliveries. This has negatively impacted our customer net promoter scores in FY23 and FY24.

In response, we are redesigning business processes to mitigate these impacts on our customers, by focusing on four key areas:

1. Encouraging early ordering and dispatch. To enhance delivery reliability, we have initiated early shipping for future orders, which has significantly reduced customer inquiries related to these orders. Leveraging our database of 90m customer occasions reminders (FY23: 84m), we now send the first reminder 14 days before each occasion, encouraging customers to place their orders well in advance.
2. Improving how we communicate estimated delivery dates. We have implemented “date first” user experience flows at the checkout on our website and apps to inform customers more clearly about the possibility of scheduling their orders for cards and gifts in advance.
3. Providing more options for tracked delivery. We have collaborated with Royal Mail to introduce a tracked delivery service at an attractive consumer price. This service, available during peak demand periods such as Christmas, Valentine’s Day and Mother’s Day, allows customers to send greeting cards even after the cut-off for first class letter post.
4. Expanding our digital offering. We have launched same-day digital gifting capability on Moonpig by combining gift experiences with e-cards, leveraging the range of Red Letter Days and Buyagift.

^{1 Technical roles for these purposes comprise those in technology security, engineering, product and analytics.}