Our sustainability approach has three pillars:
Progress within these pillars is driven by our diverse portfolio of companies who know their people, their markets and their customers best.
1. Drive growth in sustainability
We seek organic and acquisition growth opportunities driven by our purpose, long-term growth drivers and evolving sustainability demands that aim to increase and broaden the benefits enabled by our products and services.
2. Support our people
We aim to improve the lives of employees, suppliers and community members.
3. Protect our environment
We aim to reduce our environmental footprint in our own operations and wider value chains.
For our companies, our three sustainability pillars together translate into a challenge to “do more good” and “do less harm”.
Drive growth in sustainability
At Halma, sustainability has always been at the core of our purpose-driven strategy for growth.
Our sustainable growth is anchored in our continued focus on acquiring and growing companies in safety, environmental and healthcare markets that are addressing real-world problems enabling their customers to provide safer environments, protect life-critical resources, and deliver better healthcare.
We believe that continuing to encourage our companies to identify and pursue sustainability-related opportunities to grow their products and markets will allow us to accelerate our progress and broaden the benefits that our companies already enable through their products and services. See impact examples and metrics for examples and metrics relating to our impact.
Find out more about how we are driving growth in sustainability in our Annual Report and Accounts.Support our people
Building an inclusive, safe and high performing culture across Halma, helping teams do their best work and enabling them to succeed in a decentralised model. Much of our core activity has continued throughout the year, including sharpening our focus on how we listen and respond to colleagues, promoting health and safety, fostering collaboration across the Group, and progressing our commitment to diversity, equity and inclusion. This year we improved programmes supporting wellbeing and developing leaders more consistently. We also strengthened community welfare through company-led initiatives and have enhanced supplier collaboration by streamlining due diligence processes.
Key focus area:
Diversity, equity and inclusion
Employee engagement and wellbeing
Health and safety
Relevant SDGs:
Employees and diversity, equity and inclusion
Our DNA puts people at the heart of what we do. Our inclusive policies and our focus on diversity, equity and inclusion (DEI) aim to allow our employees to thrive.
Increasing diversity, equity and inclusion significantly benefits our global societies and is fundamental to achieving our purpose. It is therefore our current key focus area. As a group, we are working towards achieving targets in DEI, the first of which is around gender balance on our company boards (see key target below). We continue to see strong gender balance at the group, Executive Board and Board levels.
The sustainability section of our Annual Report and Accounts also sets out our plans for reporting additional ethnicity data and updates on the progress we have made in this area.
Key metrics:
31%
Gender balance on company boards
(Target: 40-60% by 2030)1
16%
Senior management from under-represented ethnic groups
(Target: 20% by 2027)2
0.10
Accident frequency
(Target: annual 0.02)
- This includes companies that have been in the portfolio for longer than three years as at 31 March 2026.
- This is based on the Halma definition of ethnic diversity. See page 69 of the Annual Report and Accounts.
Communities and society
Our companies consistently engage with their primary suppliers through activities such as audits, and encourage adherence to the high ethical standards outlined in our Code of Conduct. We have a joined up approach to supply chain due diligence and in 2026 created a Supplier Code of Conduct which will be gradually rolled out beginning with a number of key shared suppliers.
Additionally, some Halma companies are implementing our new supplier engagement platform, IntegrityNext, which is now available to our companies to support risk assessment, due diligence via supplier assessment questionnaires, and ESG-related data gathering.
Across Halma, our people contribute time, skills and expertise to support the communities where we live and work. These activities reinforce our commitment to building connected, resilient communities through local action and collective giving.
Launched in September 2025, Impact the Future Fund is Halma's global grant-making initiative, and builds on the community work already led by our companies around the world. It helps to amplify local impact by supporting purpose-driven partnerships with non-profit organisations tackling urgent challenges, from protecting vulnerable people to improving health outcomes. In its first year, an employee-led committee awarded grants to 19 out of the 48 non-profit organisations nominated by our companies, totalling over £500,000 and supporting projects across India, China, the US, Canada and Europe.
Read more about Impact the Future FundThe responsible sourcing of materials is a focus area for Halma during our transition to more circular manufacturing and business practices. We recognise that conflict minerals are a key issue of concern for our stakeholders. Our companies are responsible for managing their own supply chains, which includes complying with conflict mineral due diligence requests from their customers where applicable, supported by Group guidance within the Conflict Minerals policy. Historically, we have not collated data on these policies or procedures centrally. Additional information on our Conflict Minerals policy can be found in the Our policies and procedures section of our website.
In 2020, we undertook a comprehensive risk assessment exercise that mapped potential modern slavery risks in our business and supply chain, and covered over £500m of annual procurement expenditure from the year ended 31 March 2019 (representing over 96% of expenditure excluding intercompany payments, employee expenses, tax and sales commissions) across over 3,500 suppliers.
Each of our companies is responsible for managing modern slavery risk within their own supply chains and may take varying approaches, such as supplier due diligence, questionnaires and the use of terms and conditions, according to their specific circumstances. For example, BEA, one of our largest companies, visits and audits key suppliers, with whom they have ongoing business, between every four months and two years depending on total spend, to review working and labour conditions, the working environment and worker safety.
Additional information can be found in our Annual Report and Accounts, as well as the our policies and procedures section and our Modern Slavery Statement on our website.
Our operating companies have a strong focus on product quality and safety. For the year to 31 March 2025, based on available data reported by our companies, we estimate that approximately 67% of the Group’s sites, contributing approximately 75% of revenue, were covered by an ISO 9001 quality management accreditation or an ISO 13485 certificate (specific to medical devices).
Protect our environment
Reducing our environmental footprint in our own operations and in our wider value chains. This is vitally important to Halma, not only because it is the right thing to do, but also as it will make our future growth more sustainable. Much of our core work in this pillar has continued throughout the year, such as action focused on improving energy efficiency, reducing emissions through renewables, engaging with sustainable product design initiatives and supply chains. This year we have also implemented a new emissions reporting platform, Watershed, to help enhance our emissions data collection and subsequent decision making.
Key focus area:
Reducing operational greenhouse gas emissions
Sustainable product design and Scope 3 reductions
Relevant SDGs:
Sustainable product design and reducing emissions
As a Group, most of our environmental footprint comes from our wider value chain, embedded in the design of our products and services rather than our operations. This means that while we are fully committed to reducing our operational emissions and impacts, we place even greater importance on supporting our companies to think beyond this through activities such as sustainable design, supply chain engagement, and climate-related opportunities that support their customers’ transitions.
Commitments and progress
By 2025, we had achieved a greater than 60% reduction of Scope 1 & 2 emissions against our previous 2020 baseline year, and exceeded our 80% renewable electricity target.
To demonstrate our ongoing commitment to reducing operational emissions and environmental impact, we have established a new goal of achieving a 60% absolute reduction of Scope 1 & 2 emissions between 2025 and 2035 to sustain progress towards our Net Zero by 2040 target.
This is supported by a new 100% renewable electricity by 2030 target, which will be accomplished via renewable electricity tariffs and certificates, alongside encouraging our companies to implement onsite solar installations wherever feasible.
We have also set an ambition to reach Net Zero for all Scopes by 2050 and have an interim target to reduce Scope 3 emissions intensity by 66% from 2025 to 2035.
Our disclosures against the TCFD recommendations in our Annual Report and Accounts give an overview of our approach and progress.
See our Sustainability Review for more information.
| Scope 1 & 2 reduction from 2025 baseline (Target: 60% by 2035 and Net Zero by 2040) |
5% |
| Renewable electricity (Target: 100% by 2030) |
91% |
| Scope 3 intensity reduction from 2025 baseline (Target: 66% intensity reduction by 2035 and Net Zero by 2050) |
4% |
We recognise that all of our activities have an environmental impact. Our key impacts have been identified as emissions to air and water, water and energy consumption, and waste production, and since 2005 we have reported annual data at a Group level on greenhouse gas emissions, total water consumption, and total solid and liquid waste production. Please see our Sustainability Review.
Our environmental impact within our operations is relatively low compared to other manufacturers, due to our fairly low capital-intensity manufacturing processes and operations that are geographically close to our end markets. However, these are a small part of our environmental impacts within our broader value chain. Within our own operations we encourage our companies to improve energy efficiency, reduce water, waste, emissions and use materials more efficiently. Beyond this we are encouraging our companies and their suppliers to concentrate on sustainable product design and supply chain engagement to reduce emissions.
All Group companies are encouraged to undertake ISO 14001 accreditation, where warranted, and will do so again in 2025. For 2025, the estimate was 19% of sites, contributing to 29% of revenue (2023: 20% sites, 22% revenue).
We regularly conduct a high-level analysis of our operations in water scarce areas. We have identified 33 sites which operate in areas of ‘extremely high (>80%)’ or ‘high (40-80%)’ baseline water stress, according to the WWF Water Risk Filter tool and World Resources Institute’s Water Aqueduct water risk atlas. Sites were defined as manufacturing, testing or R&D sites, or Hubs and Group Head Offices employing more than 50 people. Together, these sites withdrew approximately 49,976m3 of water in the 2026 financial year, around 47% of Halma’s total water withdrawal.
While our total water withdrawal is low compared to peers, water conservation is a key issue for some of our stakeholders and a higher profile issue for Halma due to our water analysis and treatment companies. Companies in high water stress areas are expected to take measures to reduce water consumption, for example by installing water efficient taps and low-flow toilets, monitoring water usage and setting usage targets.
