2. Caring for our environment

Caring for our environment

CO2 reduction
We can reduce our Greenhouse Gas (GHG) emissions further through energy efficiency, electrifying our fleet, and procuring lower-carbon energy and materials.
A-rated efficiency
We’re improving energy efficiency across our operations through our internal Energy Community, where colleagues share best practices and support behavioural change.
Clean heat
We’re consistently improving the efficiency of our products and developing solutions for new approaches like low-carbon heat networks, exploring opportunities for green and alternative gasses, and embracing new technologies to grow our portfolio
Waste management
We are targeting zero waste to landfill by 2028 (certified), and a 20% increase in waste sent for re-use within the circular economy.

We’re reducing our energy consumption and greenhouse gas (GHG) emissions from our operations

Our ambition has been to reduce our emissions by 55 percent by 2030 (vs. 2019). We use energy for production, R&D testing, and various services, including offices and sales visits.

We have exceeded our 2030 target ahead of schedule, but we intend to continue progressing our decarbonisation agenda. Through operational excellence and the principles of World Class Manufacturing, we aim to reduce emissions further by improving energy efficiency, electrifying our service vans, and transitioning heavy goods vehicles to cleaner fuels.


In 2024, we also set a target to reduce energy consumption and GHG emissions per product produced by 5%. We have made progress through initiatives such as our internal Energy Community, which shares best practices on energy efficiency and behavioural change, and the installation of additional submeters to identify local energy hotspots and inform targeted reduction measures.

environment-graph

Applying the goals

responsible-consumption-and-production

Responsible consumption and production

We contribute to SDG 12 primarily through reducing energy and materials involved in our production process. But most of our emissions come from the use of our products (burning natural gas) and our supply chain. Key elements of our approach include a focus on operational energy efficiency, decarbonisation of energy use, and by supporting the wider energy transition through product innovation and alternative fuel projects like H100 Fife.


That’s why we’ve been transitioning from boilers-only towards Hybrid systems, Heat Pumps and Heat Network technologies. We’re also improving the energy efficiency of our boiler products, systems and manufacturing processes, and full life-cycle assessments on our products gives us clear environmental and CO2 performance on product information for customers. Our aim is to enable access to affordable, reliable, sustainable and modern energy for all.

climate action - Baxi heating and hot water solutions

Climate action

Our strategy focuses on supporting the energy transition and reducing society’s reliance on fossil fuels for heating and hot water in buildings. Today, our portfolio includes electric boilers, heat pumps and hybrid systems, all of which can significantly reduce greenhouse gas emissions for end users.


We also support low-carbon heat networks and district heating, enabling individual homes, apartment blocks, commercial buildings and multi-building estates like education campuses to access efficient and sustainable heat, including solutions powered by waste heat recovery.  We reduce the impact of our own operations with initiatives that focus on improving energy efficiency, transitioning to low-carbon solutions, and promoting responsible energy use across our operations and value chain.

Reducing the impact of Heavy Goods Vehicles (HGV)  

Our ambition is to transition our HGV fleet to run on 100% low carbon fuel by 2030.

 

By 2024, we had achieved a 47% reduction in CO₂e emissions from HGVs compared with 2019, with around half of our fleet operating today on low-carbon fuel.


We’ve evaluated several options and our current trials using hydro-treated vegetable oil (HVO) have proved successful, reducing carbon emissions while maintaining operational performance. We expect to transition our entire HGV fleet to HVO in Q1 2026.

 

hvo

Seeing the bigger picture

Planning HGV routes

Planning HGV routes to collect items on return trips, avoiding unnecessary journeys, increasing efficiency and minimising total distance traveled

    Regular driver training

    Regular driver training to promote efficient driving techniques, embed eco-friendly behaviours, and improve awareness of fuel-saving practices.

      Optimising vehicle loads

      Optimising vehicle loads, ensuring trucks are fully utilised to minimise trips and improve overall fuel efficiency.

        Relocating warehouse

        Relocating to a new warehouse, streamlining operations, optimising workflows, and minimising unnecessary travel and handling.  
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          factory-floor-people-baxi

          We’re focused on 360° sustainability 

          We’re proud to have achieved a Silver Sustainability Rating for 2025 from EcoVadis, the independent sustainability assessment and monitoring firm.

           

          That puts us in the top 15% of UK manufacturing firms for our approach and achievements relating to sustainability, but we’re always striving to do more. Ongoing projects to reduce site energy consumption include compressor zoning and leak reduction, oven temperature optimisation, lighting upgrades and sub-metering to provide greater visibility of energy use to help us drive behavioural change.

           

          We’re focused on all aspects of sustainability – in our business and in our supply chain. The EcoVadis assessment covers the environment, business ethics, our workforce and what and how we procure. We aim to improve our transparency and sustainability practices, and have implemented environmental management systems at all our sites.

          We’re targeting zero waste to landfill by 2028 (certified), and increasing waste sent for re-use

          We’re reducing waste from packaging and trialling alternatives to plastics, poly-mouldings and shrink wrap, using more sustainable materials and working with suppliers to minimise packaging on inbound goods. In 2025, we achieved 100% diversion from landfill, uncertified. Our next step is to obtain validation through certification.

          baxi-csr-returnable-packaging

          Returnable packaging 

          Closing the loop with suppliers reduces waste by replacing single-use packaging with reusable options and improving recycling and material recovery on-site. 
          baxi-csr-pulp-packaging

          Pulp packaging 

          Materials supporting the circular economy replace EPS with recyclable pulp, reducing landfill risk, lowering environmental impact, and promoting waste-free, resource-efficient product design. 

          Taking a 360° approach to identify opportunities to reduce our impact

          Energy Meters

          Energy

          We’ve reduced our energy consumption through initiatives such as our internal Energy Community, which shares best practices on efficiency, and by installing additional submeters to identify local energy hotspots.
          World Class Manufacturing - Baxi heating and hot water solutions

          World Class Manufacturing 

          Through operational excellence and World Class Manufacturing, we can reduce our GHG emissions by increasing our energy efficiency and innovating in manufacturing. 
          Air Compressors - Baxi's commitment to energy consumption and reduction

          Air Compressors 

          Our air compressors are our largest consumer of electricity. This project focuses on fixing leaks, optimising baseline performance, and transitioning air tools to reduce energy consumption. 
          Paint Plant Efficiency - Baxi's commitment to energy consumption and reduction

          Paint Plant Efficiency 

          Increasing paint plant heating efficiency (our largest consumer of gas) by exploring temperature reduction options, heat recovery opportunities and heat insulation. 
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          tommy-mcguigan-and-1st-minister-john-swinney

          Trialing new low carbon technologies to provide future options on how to decarbonise home heating. 

          Baxi, with its parent company BDR Thermea, has designed, tested and built a domestic boiler that runs on 100% hydrogen gas, responding to a request for support with Government trials relating to hydrogen for heat. 
           

          Around 150 of our 100% hydrogen boilers will be used with the H100 Fife live hydrogen trial in Scotland.  Led by gas network SGN and Fife Council, the trial will produce green hydrogen (created from renewable wind power) which will be sent to up to 300 homes, via a newly built hydrogen network running alongside the existing gas pipes in Levenmouth, Fife. 
           

          The trial is expected to go live in March 2026 and will run for up to two years, giving the participating homeowners the opportunity to experience hydrogen for heating and cooking year-round.  Their participation will provide important behavioral and social evidence that could help inform future policy around how to decarbonise home heating. 

          Learn more about our approach

          Caring for our people and communities

          Caring for our people and communities

          Caring for our environment

          Caring for our shared and future prosperity

          Caring for our shared and future prosperity

          Caring for our environment