Carbon & Greenhouse Gas Reduction Plan

Commitment to achieving Net Zero

FLEXZO AI LIMITED is committed to achieving Net Zero emissions by 2028. We acknowledge that this is an ambitious target and exceeds the typical expectations within the healthcare sector. Nevertheless, we are fully committed to achieving and delivering upon this goal.

Our carbon reduction plan is fully aligned to:

• UK Government policy
• NHS ambitions
• NHS SBS corporate sustainability strategy as necessary e.g. NHS SBS AI Healthcare Solutions framework
• Other framework requirements e.g. Health Trust Europe (HTE)

Baseline Emissions Footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

* Scope 1 and 2 only

Current Emissions Reporting

* Totality of emissions which does not take into consideration the sustainable energy utilised by our data centre providers.

Emissions reduction targets by 2028

To continue our progress to achieving Net Zero, we have set the following carbon reduction targets for 2028:

• Carbon emissions to be net zero by 2028

When developing our Carbon Reduction Plan we look to implement and adhere to best practice policies that embed and support Carbon Reduction Planning in support of Green Initiatives such as NHS Net Zero, as detailed within the Procurement Policy Note 06/21.

We have adopted UK Government and/or NHS targets for sustainable development where appropriate, in full consideration of the environmental impacts of any significant policy decisions and requirement to achieve Carbon Net Zero emissions in line with our target date. Sustainable development will include, but is not limited to:

• Energy management
• Water, to include system infrastructure maintenance and wastewater management
• Waste prevention and management including waste hierarchy and segregation
• Reducing single use plastics in accordance with the Environmental Protection (plastic straws, cotton buds and stirrers) (England) Regulations 2020, related Regulations in place across Devolved Administrations and all future waste related regulations
• Minimising transport use

We are not required to publicly report UK energy use and carbon emissions within the Supplier's Director Report as we do not meet any two of the following three thresholds in the preceding financial year, in alignment to the latest guidance published by the Department for Business, Energy and Industrial Strategy (BEIS):

• A turnover of £36m or greater
• A balance sheet of £18m or greater
• A company size of 250 employees or greater

Completed Carbon Reduction Initiatives

As a relatively new organisation we are in the initial stages of our journey to Net Zero. We have developed a multi-year action plan which outlines the initiatives we will be undertaking to take us to our Net Zero position by no later than 2028. Our action plan contains a wide range of environmental management measures and projects including, but not limited to:

• Training for our team
• Engaging with our local community and supply chain
• Biodiversity
• Energy conservation measures
• Green data storage

Our net zero action plan is displayed, on an area-by-area basis, below. At a macro level we have also identified the internal and external resources needed to deliver these actions and deliver a net zero position by 2028.

Internal Resources

External Resources

Engagement Strategy

To ensure comprehensive stakeholder involvement, we will actively engage with a diverse range of key stakeholders, including organisational leadership, social value beneficiaries, external partners, community organisations and regulatory bodies, through a structured engagement plan. This will include regular meetings, surveys, collaborative workshops and feedback sessions. The goal is to maintain transparent communication, incorporate stakeholder insights into decision-making processes and foster a shared understanding of our social value and sustainability objectives.

Through ongoing dialogue and collaboration, we aim to build a strong, aligned community committed to achieving meaningful and measurable outcomes in sustainability, social impact and responsible software development.

Monitoring, Reporting & Assessing Performance Issues

Monitoring and reporting on the delivery of our journey to a net zero position will ensure accountability and transparency in our initiatives. We have implemented a robust framework that includes regular assessments, stakeholder engagement and clear reporting mechanisms.

Our metrics serve as benchmarks to evaluate our progress and impact effectively. Using a Red, Amber, Green (RAG) traffic light system we will conduct biannual reviews to track performance against these indicators, ensuring that we remain on target. Data collection will involve both quantitative and qualitative metrics, enabling us to gain a comprehensive understanding of our activities' effectiveness.

To enhance our monitoring efforts, we will engage with relevant stakeholders. Regular stakeholder meetings will provide a platform for open dialogue, allowing us to gather insights, address concerns and adjust our strategies. We will compile regular reports summarising our findings, performance against KPIs and any net zero challenges encountered. These reports will be shared with relevant stakeholders to maintain transparency and foster trust in our commitment to delivering Social Value.

In the event of performance issues, we will promptly initiate a corrective action plan. This plan will involve identifying the root causes of the issue, proposing actionable solutions and assigning responsibilities for implementation. We will communicate transparently with all stakeholders throughout this process, providing updates on progress and adjustments made.

ISO-14001: Environmental Management System

Objective: Maintain ISO-14001 certification on a year-on-year basis.

Actions

1. Maintain the Flexzo Effective Environmental Management System (EMS) — regularly review and update the EMS to ensure ongoing compliance with ISO 14001 standards and evolving environmental requirements; document processes, procedures and controls clearly to facilitate consistency and continual improvement.
2. Conduct bi-annual internal audits — schedule comprehensive internal audits at planned intervals to evaluate EMS effectiveness and identify areas for improvement; implement corrective actions promptly to address non-conformities and prevent recurrence.
3. Management review and leadership engagement — convene biannual management review meetings to assess system performance, review environmental objectives and set new targets.
4. Monitor and measure environmental performance — track key environmental indicators (e.g. waste reduction, energy use, water consumption) regularly to demonstrate ongoing compliance and progress.
5. Maintain document control and record keeping — ensure all EMS documentation, including policies, procedures, audit reports and corrective actions, is current, accessible and properly stored.
6. Engage external certification bodies and prepare for audit cycles — schedule and coordinate surveillance audits well in advance, ensuring readiness through pre-audit assessments.
7. Foster a culture of continual improvement — promote proactive identification of environmental risks, innovation and best practices to enhance overall EMS performance.

Performance Management

ISO-14001 Training

Action: Deliver ISO-14001 awareness training, 4 hours per employee, to raise awareness about the importance of the Flexzo EMS and encourage the adoption of sustainable practices at work and in personal lives.

Objective: 100% of Flexzo employees to undertake 4 hours of ISO-14001 training annually.

Performance Management

Carbon Literacy Training

Action: Deliver carbon literacy training, 4 hours per employee, to raise awareness about the importance of carbon reduction and encourage the adoption of sustainable practices at work and in personal lives.

Objective: 100% of Flexzo employees to undertake 4 hours of carbon literacy training every year.

Performance Management

Water

This includes system infrastructure, maintenance and wastewater management.

Waste Prevention

Waste prevention and management including waste hierarchy and segregation.

Action: Deliver a 'Waste Wise' workshop lasting no more than 90 minutes annually to the Flexzo team, with an alternating focus on workplace and the home.

Action: Reduce single-use plastics in accordance with the Environmental Protection (plastic straws, cotton buds and stirrers) (England) Regulations 2020, related Regulations in place across Devolved Administrations and all future waste-related regulations.

Travel

Objective: Promoting sustainable transportation options for employees, including electric vehicle (EV) incentives and public transit subsidies, aimed at decreasing Scope 3 emissions in:

• Category 6: Business travel including accommodation and subsistence
• Category 7: Employee commuting

Energy Efficiency

Objective: Invest in energy efficiency improvements across all facilities, targeting a year-on-year reduction in energy consumption.

Action: Invest in energy efficiency improvements in our owned/leased facilities which house our staff.

Objective: Invest in sustainable sourcing and procurement practices to ensure energy efficiency improvements across all suppliers in our supply chain, targeting a year-on-year reduction in non-sustainable energy consumption.

Sustainable Data Centre Utilisation

Our business model involves utilising external data centres to support our cloud infrastructure. We partner with two leading cloud service providers — Amazon Web Services (AWS) and Google Cloud UK — both of which have established themselves as pioneers in embedding sustainability practices into their operations, ensuring our data storage commitments align with environmentally responsible standards and our 2028 net zero ambition.

AWS Sustainability Efforts

AWS has committed to achieving net-zero carbon by 2040 and is actively investing in renewable energy. As of 2023, AWS reports 85% renewable energy across its global infrastructure. Key initiatives include:

• Energy efficiency: advanced cooling technologies and energy-efficient hardware.
• Renewable energy projects: investment in solar and wind farms worldwide.
• Circular economy practices: recycling and refurbishing of hardware.

Google Cloud UK Sustainability Initiatives

Google Cloud has operated on a fully carbon-neutral basis since 2007 and is committed to 24/7 carbon-free energy by 2030. Key aspects include:

• Energy optimisation: machine-learning-driven energy and cooling optimisation.
• Investments in renewable energy projects worldwide.
• Innovative cooling solutions including evaporative and AI-driven cooling systems.

Optimising Data Management for Sustainability

• Cloud-based storage solutions with AWS and Google Cloud reduce reliance on physical hardware and on-premises data centres.
• Data lifecycle management via regular audits and archiving of non-essential data to maintain a lean data repository.
• Virtualisation and resource optimisation, running multiple applications on fewer servers.

Future Strategies for Green Data Storage

• Adopting advanced technologies such as storage-class memory and tape storage for long-term archival.
• Utilising AI for predictive data management to minimise energy waste.
• Ongoing engagement with providers on sustainability innovations.

Supplier & Supply Chain Emissions (Category 1)

Action: Reduce supplier and supply chain emissions (Category 1).

Objective: Maintain active engagement with and oversight of AWS and Google Cloud to stay informed about their latest sustainability innovations and incorporate those solutions into our operations.

Carbon Offsetting

Objective: Progressively minimise the Flexzo carbon footprint by maximising the deployment of renewable energy sources internally and throughout the supply chain, accurately accounting for residual emissions and investing in high-quality offsets — thereby advancing towards and delivering net zero by end of 2028 and demonstrating leadership in sustainable practices.

Biodiversity

Objective: Explore and implement ways to enhance the natural environment such as habitat creation and increasing biodiversity such as pollinators.

Reconnecting with the Environment

Objective: Explore, design and implement activities to reconnect our team and the wider community with the environment and increase awareness of ways to protect and enhance it.

Net Zero

Objective: Achieve NET ZERO by no later than end of 2028.

Declaration and Sign Off

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard and uses the appropriate Government emission conversion factors for greenhouse gas company reporting.

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard.

This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).