Sustainability governance structure
We have a highly decentralised business model that places our operational resources close to our customers through locally-managed, autonomous companies. Our approach to sustainability governance across the wider group aligns with this decentralised business model.
At Group level, our Board is ultimately responsible for our Sustainable Growth Model, which has sustainability at its core and includes oversight of climate related risks and opportunities.
Our sustainability agenda is led by our Chief Sustainability Officer, Constance Baroudel, who has principal responsibility for our sustainability activities and policy. She is also our Sector Chief Executive for Environmental & Analysis and a member of the Executive Board, and regularly presents to the Board. Funmi Adegoke, Safety Sector Chief Executive, will take over this responsibility from September 2026.
The Executive Board is responsible for providing additional direction and oversight of our sustainability approach and internal sustainability expectations, including being responsible for the identification and management of sustainability and climate-related opportunities and risks.
Our Divisional Chief Executives (DCEs) work with the MDs and local boards of each company to encourage the consideration of sustainability opportunities and risks in strategic planning, in a way that is relevant and appropriate to the circumstances, markets and capacity of each company.
Each of our companies also has a local board member who is responsible, along with their company MD/CEO, for developing and maintaining their company’s plans to support people and protect the environment.
Double materiality assessment
Following the final announcement regarding the European Commission’s omnibus package, Halma (and European-based Halma companies) are no longer subject to the obligations set out in the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). Notwithstanding this regulatory change, a limited double materiality assessment (DMA) was undertaken earlier in 2026. Although the requirement to conduct and report on a DMA has been removed, the insights obtained will continue to inform and underpin strategic sustainability decisions and future reporting practices, including disclosure against the UK SRSs.
Our 2026 DMA built on multiple strands of previous work such as our 2021 informal strategic materiality assessment, the refreshed climate-related risk assessment conducted in 2025 as well as our annual principal risk reviews. The DMA has not led to any changes to our sustainability strategy or key focus areas. While we continue to evaluate the outputs from this assessment on our future reporting, it supports our existing disclosures, metrics and targets on climate and other matters and strengthens the mandate for continued progress in our key focus areas.
