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Annual Report & Accounts 2024
xx
xx
xx
XX
Strategic Report
1 Financial and Non-Financial Highlights
2 Our Business Model
4 Group at a Glance
6 Chair’s Statement
8 Group Chief Executive Officer’s Statement
9 Delivery of Group Strategy
9 Market Overview
11 Outlook
12 Sustainability
14 Environment
18 Our Technology and Product Development
on the Path to Net Zero
20 TCFD
26 Social
31 Governance
32 Investment Case
34 Our strategic priorities
36 Technology
36 Our Technology Themes
38 Underlying Technologies
40 Stakeholder Engagement
46 Section 172 Statement
48 Key Performance Indicators
50 Risks and Uncertainties
60 Divisional Review – Aerospace
62 Divisional Review – Flexonics
64 Financial Review
68 Viability Statement
69 Non-Financial and Sustainability
Information Statement
Governance
72 Chair’s Governance Letter
73 Board at a Glance
74 Board of Directors
77 Executive Committee
78 Board Leadership and Company Purpose
82 Division of Responsibilities
84 Composition, Succession and Evaluation
85 Nominations Committee Report
89 Report of the Directors
90 Audit Committee Report
96 Remuneration Committee Report
96 Chair’s Annual Statement
98 2024 Remuneration Report at a Glance
99 Remuneration Report: Policy
102 Annual Report on Remuneration
110 Statement of Directors’ Responsibilities
111 Independent Auditor’s Report to the
Members of Senior plc
Financial Statements
120 Consolidated Income Statement
121 Consolidated Statement
of Comprehensive Income
122 Consolidated Balance Sheet
123 Consolidated Statement of Changes
in Equity
124 Consolidated Cash Flow Statement
125 Notes to the Consolidated Financial
Statements
166 Company Balance Sheet
167 Company Statement of Changes in Equity
168 Notes to the Company Financial Statements
174 Five-year Summary
Additional Information
175 Group Undertakings
177 Additional Shareholder Information
178 Officers and Advisers
Our purpose
We help engineer the transition to a sustainable world
forthe benefit of all our stakeholders.
We do this by:
Technology expertise
Using our technology expertise in fluid conveyance and thermal
management to provide safe and innovative products for
demanding applications in some of the most hostile environments.
Customer transition
Enabling our customers, who operate in some of the
hardest-to-decarbonise sectors, to transition to low-carbon
and clean energy solutions.
Climate action
Staying at the forefront of climate disclosure and action by
ensuring our own operations achieve our Net Zero commitments.
WE ARE SENIOR
We are an international, market-leading,
engineering solutions provider with
26 operating businesses in 12 countries.
Senior’s expertise in fluid conveyance
and thermal management provides safe
and innovative products for demanding
applications in some of the most
challenging environments.
STRATEGIC
REPORT
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024
XX
Financial highlights
Revenue
+1%
£977.1m
2023 – £963.5m
Adjusted operating margin
(1)
nil bps
4.8%
2023 – 4.8%
Adjusted profit before tax
(2)
-14%
£33.0m
2023 – £38.3m
Profit before tax
+22%
£27.8m
2023 – £22.8m
Adjusted earnings per share
(3)
-30%
7.17p
2023 – 10.28p
Basic earnings per share
-17%
6.25p
2023 – 7.52p
Return on capital employed
(4)
-30 bps
6.8%
2023 – 7.1%
Dividend per share
+4%
2.40p
2023 – 2.30p
Free cash flow
(5)
+12%
£17.3m
2023 – £15.5m
Net debt
(5)
£26m increase
£229.6m
2023 – £203.8m
Non-financial highlights
CDP
(climate disclosure project)
A
2023 – A Leadership rating “Implementing best practices”
Total Scope 1 and 2 Carbon Dioxide Emissions
(tonnes CO
2
equivalent emitted)
38,238 tonnes
2023 – 40,491 tonnes (Scope 1, Scope 2 – market based)
Lost time injury rate
(per 100 employees)
0.19
2023 – 0.32
Waste recycled
91.1%
2023 – 95.1%
Ethics
(percentage of employees who completed
Annual Code of Conduct Training)
96.2%
2023 – 95%
Women in leadership – Board of Directors
56%
2023 – 57%
Women in leadership – Executive Committee
38%
2023 – 38%
Adjusted operating profit and adjusted profit before tax are
stated before £1.6m amortisation of intangible assets from
acquisitions (2023 – £2.2m), £3.5m site relocation costs
(2023 – £0.1m), £1.1m US class action lawsuit (2023– £nil)
and £nil net restructuring costs (2023 – £5.6m). Adjusted
profit before tax is also stated before net income associated
with corporate undertakings of £1.0m (2023 – £7.6m costs).
A reconciliation of adjusted operating profit to operating profit
is shown in Note 9. In 2023, adjusted earnings per share
includes the benefit of a release of £10.5m of provision for
uncertain tax positions, of which £3.5m relates to interest
(see Note 10 for further details).
EBITDA is adjusted profit before tax and before interest,
depreciation, amortisation and profit or loss on sale of
property, plant and equipment. It also excludes EBITDA
from businesses which have been disposed and includes
12 months EBITDA for businesses acquired and it is based
on frozen GAAP (pre-IFRS 16). This measure is used for the
purpose of assessing covenant compliance and is reported
to the Group Executive Committee.
(1) Adjusted operating margin is the ratio of adjusted
operating profit to revenue.
(2) A reconciliation of adjusted profit before tax to profit
before tax is shown in Note 9.
(3) A reconciliation of adjusted earnings per share
to basic earnings per share is shown in Note 12.
(4) See page 49 for the derivation of return
on capital employed.
(5) See Notes 31b and 31c for the derivation
of free cash flow and of net debt respectively.
The US Dollar exchange rate applied in the translation of
revenue, profit and cash flow items at average rates for
2024 was $1.28 (2023 – $1.24). The US Dollar exchange
rate applied to the balance sheet at 31 December 2024
was $1.25 (31 December 2023 – $1.27).
Cautionary statement
The Annual Report & Accounts 2024 contains certain
forward-looking statements. Such statements are made
by the Directors in good faith based on the information
available to them at the date of this Report and they should
be treated with caution due to the inherent uncertainties
underlying any such forward-looking statements.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 1
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Our core Values
‘The Senior Way’ Our culture
Safety
We operate
safely, protecting
people and the
environment.
Integrity
We operate with
integrity and in an
ethical manner.
Customer focus
We put the
customer at the
heart of everything
we do.
Respect and trust
We work together
with mutual respect
and trust.
Accountability
We do what
we say.
Excellence
We continually
strive to do better
in every aspect of
our business.
Our Values set out the principles and
standards of behaviour that drive our culture.
The safety and wellbeing of our employees
is a priority in everything that we do. In our
autonomous and collaborative Business
Model, our operational business leaders are
empowered and accountable, and set the
tone for their operations.
The principles of openness and transparency
are strongly encouraged and are evident
across all our businesses.
Our Vision
We are a trusted and collaborative high value-added engineering,
manufacturing and technology company; our aim is to deliver sustainable
growth in operating profit, cash flow and shareholder value.
OUR BUSINESS MODEL
Our Purpose
We help engineer the
transition to a sustainable
world for the benefit of all our
stakeholders. We do this by:
Technology expertise
Using our technology expertise in fluid
conveyance and thermal management to
provide safe and innovative products for
demanding applications in some of the
most hostile environments.
Customer transition
Enabling our customers, who operate
in some of the hardest-to-decarbonise
sectors, to transition to low-carbon
and clean energy solutions.
Climate action
Staying at the forefront of climate disclosure
and action by ensuring our own operations
achieve our Net Zero commitments.
Read more about our strategic priorities
on pages 34 and 35
How we do it
Our strategic priorities
Autonomous and collaborative business model
Senior’s Business Model is one of empowering and
holding accountable our operating businesses, operating
within a clearly defined control framework. Business
plans are developed in line with the overall Group
strategy. Increasing collaboration amongst operating
businesses in the Group is a priority in order to address
our customers’ needs whilst maintaining an autonomous
business structure. Business leaders throughout Senior
are actively embracing collaboration activities.
Focus on growth
Senior operates in end markets with
structural long-term growth drivers. We aim
to consistently outgrow our end markets by:
• growing market share, particularly
with key customers;
• focusing on technology
and product innovation;
• geographical expansion; and
• exploiting adjacent opportunities
organically and through acquisition.
High performance model
Senior strives for excellence through a high-performance
operating model, drawing on the many world-class
practices from across the Group. The key elements include:
• the Senior Operating System: (SOS): an operational
toolkit incorporating best practice processes such as
lean and continuous improvement techniques, supplier
management, new product introduction, 5/6S
methodology, factory visual management systems,
and risk and financial management;
• a comprehensive business review process utilising a
balanced scorecard incorporating KPIs with a focus on
performance, growth, operational excellence and talent
development; and
• clear processes for developing strategy, ensuring
top-down and bottom-up alignment, considering
inorganic investments and managing M&A transactions.
Competitive cost country strategy
Senior has a global footprint to ensure we
stay competitive at a capability and cost
level. In addition to our North American
and European footprint, we have facilities
in Thailand, Malaysia, China, India, Mexico,
South Africa and the Czech Republic which
help to ensure we meet our customers’
cost and price challenges whilst enhancing
returns on investment.
Considered and effective capital deployment
Senior understands the importance of considered and
effective capital deployment in the interest of maximising
the creation of shareholder value. All significant
investments undertaken by Senior are assessed using
a rigorous investment appraisal process and are
supported by a business case.
Talent development
Senior has a highly skilled workforce,
experienced entrepreneurial business
leaders and functional experts. We aim
to attract and develop talent, supporting
employees with online tools to enable
personal and skills development as well as
comprehensive technical and operational
training. The Group has a strong focus on
diversity and inclusion across the business
including on our Board and Executive team.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 20242
STRATEGIC
REPORT
Our core Values
‘The Senior Way’ Our culture
Safety
We operate
safely, protecting
people and the
environment.
Integrity
We operate with
integrity and in an
ethical manner.
Customer focus
We put the
customer at the
heart of everything
we do.
Respect and trust
We work together
with mutual respect
and trust.
Accountability
We do what
we say.
Excellence
We continually
strive to do better
in every aspect of
our business.
Our Values set out the principles and
standards of behaviour that drive our culture.
The safety and wellbeing of our employees
is a priority in everything that we do. In our
autonomous and collaborative Business
Model, our operational business leaders are
empowered and accountable, and set the
tone for their operations.
The principles of openness and transparency
are strongly encouraged and are evident
across all our businesses.
What we do
Senior designs and manufactures highly engineered, technology-rich
components and systems for principal original equipment
manufacturers in the worldwide aerospace & defence, land vehicle
and power & energy markets.
Our Business Model is straightforward in terms of revenue
recognition, with no exposure to long-term contract accounting.
The Group has a
global footprint with
26
operating businesses,
located in
12
countries servicing
blue-chip customers.
Read more on
pages 4 to 5
Our strengths/differentiators
Innovation
• Experts in fluid conveyance and thermal management.
• Focusing on technology product and process innovation to better serve
our customers and deliver enhanced shareholder value.
People and culture
• Integrity and high ethical standards.
• Safety first culture embedded across the whole organisation.
• Empowerment of local leadership, within a robust control framework.
• Ongoing investment in personal and professional development at all levels
throughout the business.
Financial
• Financial strength supporting investment, innovation and customer
confidence.
• Rigorous business review process delivers benefits for shareholders.
Global footprint
• 26 operating businesses in 12 countries serving a number of markets.
• An integrated global footprint providing customers with market proximity
and cost competitiveness.
Organisation
• A culture of autonomous collaboration.
• Active sharing of best practices.
• Complementary capabilities.
• Leverage common customer and supplier relationships.
• Strong Divisions provide additional focus on growth, performance
and governance.
Read more about our people on page 28 and about
innovation and technology on pages 36 to 39
How we do it
Our strategic priorities
Autonomous and collaborative business model
Senior’s Business Model is one of empowering and
holding accountable our operating businesses, operating
within a clearly defined control framework. Business
plans are developed in line with the overall Group
strategy. Increasing collaboration amongst operating
businesses in the Group is a priority in order to address
our customers’ needs whilst maintaining an autonomous
business structure. Business leaders throughout Senior
are actively embracing collaboration activities.
Focus on growth
Senior operates in end markets with
structural long-term growth drivers. We aim
to consistently outgrow our end markets by:
• growing market share, particularly
with key customers;
• focusing on technology
and product innovation;
• geographical expansion; and
• exploiting adjacent opportunities
organically and through acquisition.
High performance model
Senior strives for excellence through a high-performance
operating model, drawing on the many world-class
practices from across the Group. The key elements include:
• the Senior Operating System: (SOS): an operational
toolkit incorporating best practice processes such as
lean and continuous improvement techniques, supplier
management, new product introduction, 5/6S
methodology, factory visual management systems,
and risk and financial management;
• a comprehensive business review process utilising a
balanced scorecard incorporating KPIs with a focus on
performance, growth, operational excellence and talent
development; and
• clear processes for developing strategy, ensuring
top-down and bottom-up alignment, considering
inorganic investments and managing M&A transactions.
Competitive cost country strategy
Senior has a global footprint to ensure we
stay competitive at a capability and cost
level. In addition to our North American
and European footprint, we have facilities
in Thailand, Malaysia, China, India, Mexico,
South Africa and the Czech Republic which
help to ensure we meet our customers’
cost and price challenges whilst enhancing
returns on investment.
Considered and effective capital deployment
Senior understands the importance of considered and
effective capital deployment in the interest of maximising
the creation of shareholder value. All significant
investments undertaken by Senior are assessed using
a rigorous investment appraisal process and are
supported by a business case.
Talent development
Senior has a highly skilled workforce,
experienced entrepreneurial business
leaders and functional experts. We aim
to attract and develop talent, supporting
employees with online tools to enable
personal and skills development as well as
comprehensive technical and operational
training. The Group has a strong focus on
diversity and inclusion across the business
including on our Board and Executive team.
Creating value for our stakeholders
Our employees
Ensuring Senior is a great place to work with inspiring
operational leadership and a highly motivated workforce.
Our customers
Continuously delivering competitive products
and solutions to customers with outstanding quality
and delivery performance.
Our suppliers
Developing reliable, ethical and sustainable
supply chains ensuring we can meet our
customers’ requirements.
Our shareholders
Generating shareholder value through sustainable
growth in operating profit and cash flow.
Our communities
Actively participating and helping to improve the
quality of life in our local communities. Minimising
our environmental impact through peer-leading
sustainability programmes.
Our environment
Caring for our planet by reducing greenhouse gas
emissions, using less water and recycling our waste.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 3
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Our people worldwide
GROUP AT A GLANCE
North America
41%
UK and Europe
36%
Asia
20%
Africa
3%
Worldwide
operating
businesses
26
Countries
12
Read more about our people and culture on page 28
David Squires | Group Chief Executive Officer
“Our core Values underpin our culture with
Safety and Integrity first amongst equals.”
Read more about our Values on page 2
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 20244
STRATEGIC
REPORT
AEROSPACE
Senior Aerospace provides high technology products
and systems for demanding applications in aerospace
& defence and adjacent markets.
Our product portfolio spans a wide range of fluid
conveyance, and thermal management components
and sub-systems, as well as complex structural parts
and assemblies, for fixed-wing and rotary aircraft,
aero-engines, spacecraft and a variety of other
industrial applications.
With a global footprint, Senior Aerospace develops
and manufactures proprietary designed, and some
highly engineered build-to-print products, for customers
around the world, that meet today’s challenges,
and is actively engaged in developing products
and capabilities for a low-carbon sustainable future.
Read more about Aerospace on page 60
Fluid conveyance systems
Design and manufacture:
• High-pressure ducting systems (metal)
• Low-pressure ducting systems (composite)
• Control bellows, sensors and assemblies
• Thermal insulations (soft & metallic)
• Aerospace Standard parts:
• Hydraulic fittings and couplings
• Flanges
• Clamps
Gas turbine engines and interiors parts
• Engine build-up (EBU) ducting and control products
• Interiors Passenger Service Units (PSUs)
Read more on pages 36 to 39
68%
(2023 – 64%)
Civil Aerospace 46%
Defence 13%
Adjacent Markets 9%
FLEXONICS
Senior Flexonics provides high technology products
and systems for demanding applications in land vehicle,
power & energy and adjacent markets.
Our product portfolio spans a wide range of fluid
conveyance and thermal management components /
sub-systems, as well as complex precision-machined
parts, for conventional and advanced land vehicle
propulsion systems, petrochemical, renewable energy
and a variety of other industrial applications.
With a global footprint, Senior Flexonics is focused
on the development and manufacture of proprietary
designed and some highly engineered build-to-print
products, all of which help customers around the world,
that meet today’s challenges, and is actively engaged
in developing and supplying products and capabilities
for a low-carbon sustainable future.
Read more about Flexonics on page 62
Land vehicle emission control and thermal control
• Exhaust gas recirculation coolers
• Battery cooling technology
• Fuel mixing and distribution systems
• Flexible couplings
• Control bellows
Industrial process control
Design and manufacture:
• Engineered expansion joints, dampers and diverters
• Flexible hose assemblies and control bellows
• Heat exchangers for fuel cell manufacturers
• Precision-machined fluid conveyance components
Read more on pages 36 to 39
32%
(2023 – 36%)
Land vehicle 19%
Power & energy 13%
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 5
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Overview
2024 further demonstrated Senior’s resilience,
once again having to navigate through choppy
waters given external events. As a consequence
of the well-documented situation at Boeing,
impacting production volumes, we had to revise
expectations to the market. The team delivered
trading in line with revised market expectations
and a strong cash performance. They responded
by dynamically, supporting our customers and
controlling our costs, to limit the impact on
Aerospace profitability in 2024. Our robust
strategy and product offerings in attractive
end markets, combined with the focused and
disciplined operational and pricing management,
enabled us to emerge strong overall.
Our core markets developed largely as expected
throughout the year. Boeing sales were
impacted by 737 MAX volumes being subdued
following the Alaska Airlines incident in January
and from their employee strike from September
to November leading to a shutdown of 737
MAX, 767 and 777 production.
Timely actions were taken to minimise cost and
balance sheet exposure. Senior focused on
operational efficiency during the year and
maintained diligence on pricing and making sure
commercial terms were reflective of current day
pricing. Due to specific actions implemented
both by us and our suppliers, Senior’s supply
chain has become more stable. A few hotspots
remain, and we are continuing to work with our
customers and suppliers to resolve these. We
are also closely monitoring the impact on global
trade from potential tariff changes.
The operating businesses as a result delivered
improved profitability during the period.
The Group’s revenue growth was 4% on
a constant currency basis and a healthy
book-to-bill of 1.12 underpins future growth.
A massive thank you to David, Bindi and all
of our teams for the 2024 results.
Strategy
Senior is committed to a sale of our
Aerostructures business and is making good
progress with this process. This is in line with
our strategy to position Senior as the market
leading pure play fluid conveyance and thermal
management business.
The Group has a solid foundation to support
future growth aspirations. We have well
equipped businesses and are supported by
extensive design and manufacturing process
intellectual property and know-how. Our offering
is pivotal technologies for emissions reduction
and environmental efficiency; capabilities that
continue to be highly relevant as the world
transitions towards a lower carbon economy.
With continued R&D investment in these
technologies and by leveraging our engineering
capabilities, we will ensure that we provide
solutions over the long term for our customers.
A good example is the standards-compliant
parts strategy which taps into the high-growth,
high-pressure hydraulic fluid fittings space
enabled by our 2022 acquisition, Spencer
Aerospace. The collaboration between Spencer
and Senior Aerospace in France continues to
progress well with innovative new products
being designed for Commercial Aerospace.
In order to showcase our fluid conveyance
and thermal management capabilities, the
Company in June hosted an investor site visit
to our Senior Aerospace France businesses
(Ermeto and Calorstat). This engagement
enabled us to demonstrate how such products
will shape the growth of our business over the
short and medium term.
As a well-capitalised and intrinsically cash
generative Group, our operating businesses
have existing capacity to benefit from our
attractive end markets. Complementing this is
the Group’s strong financial position and robust
balance sheet, further enhanced by the issuance
of a $40m private placement in February 2025.
The Board actively reviews the Group’s portfolio,
ensuring a considered and effective capital
deployment to maximise shareholder value
creation. As the Group advances in its strategy,
growing Senior’s high-quality fluid conveyance
and thermal management businesses becomes
the focus. Underpinning this will be investments
supported by a business case and assessed
using a rigorous investment appraisal process.
The Board is confident in the Group’s strategy
and that it will deliver enhanced value for
all our stakeholders.
CHAIR’S STATEMENT
Strategic progress sustained; the journey advances
Ian King | Chair
“We are delivering on our strategy and remain confident in
maximising value for shareholders over the medium term.”
Business model & Strategic priorities
We aim to create value for all our stakeholders
through our Business Model. The creation of this
value is driven by our six strategic priorities.
Pages 2 and 3 and pages 34 and 35
for further details.
Investment case
Senior’s strategy and positioning in attractive
and structurally resilient core markets; technical
capabilities and sustainability credentials; underpins
our commitment to continue to deliver a strong
performance, which in turn will deliver enhanced
value for our shareholders.
For more information on investment case read
pages 32 to 33.
6 SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024
STRATEGIC
REPORT
Our performance and dividend
In 2024, the Board and the Executive team
continued to make good strategic, operational,
and financial progress. Senior delivered trading
in line with revised expectations, a strong cash
performance, and grew the order book.
Group revenue increased 4% (on a constant
currency basis) to £977.1m. Our adjusted
operating profit increased to £46.5m which
resulted in the Group’s adjusted operating
margin increasing by 10 basis points (on a
constant currency basis), to 4.8%.
The Group has a healthy balance sheet and
period-end net debt to EBITDA of 1.8x, after
taking into account a £15.0m payment for
dividends and net purchase of shares, and
£10.7m contingent consideration for the
acquisition of Spencer Aerospace following its
strong growth post-acquisition.
The Board has confidence in the Group’s
performance, financial position and future
prospects, and is proposing a final dividend
of 1.65 pence per share. This would bring total
dividends, paid and proposed for 2024 to 2.40
pence per share, an increase of 4% over 2023.
The Board will continue to follow a progressive
dividend policy reflecting earnings per share,
free cash flow generation, market conditions
and dividend cover over the medium term.
Our sector leading
sustainability credentials
The Board acknowledges the critical importance
of implementing a bold and comprehensive
sustainability programme. We firmly believe
that our Company Purpose and leadership
in sustainability provide a unique commercial
advantage as the global economy transitions
to a lower carbon future. Sustainability is deeply
embedded in our strategy, reflected in the
behaviours of our people and the culture
of our organisation.
In 2024, we reached several significant
milestones in our sustainability journey including
being awarded the top ‘A’ score by CDP in its
global annual ranking for transparency on climate
change for 2024, reducing our Scope 1 and 2
emissions by 33% against our 2018 baseline
and meeting our Near-Term Science-Based
Target ahead of the 2025 target.
Looking ahead to 2025, we are committed to
building on this strong foundation by enhancing
our sustainability programmes and reporting.
Our focus will be on addressing both financial
and environmental/social impacts, ensuring our
leadership in sustainability continues to deliver
long-term value for all stakeholders.
The Sustainability Report on pages 12 to 17
provides more detail on how we are progressing.
Our Board
In 2024, the Board maintained its focus on
succession planning. Following Bindi Foyle’s
announcement to retire from a full-time Executive
career, and after a thorough recruitment process,
we appointed Alpna Amar as the Group Chief
Financial Officer. We welcome Alpna to Senior’s
Board in April 2025, and we are confident that her
strong financial acumen and expertise will be well
placed to drive Senior’s financial strategy to the
next stage of growth. The Board would like to
thank Bindi for her outstanding contribution to
Senior over the past 19 years, and we wish her
well for the future.
After nine years as a non-executive Director,
Susan Brennan will be retiring following the
conclusion of the Company’s AGM in April
2025. I would like to take this opportunity to
thank Susan for her valued contribution and
commitment over the last nine years. As
announced earlier in 2024, Zoe Clements joined
the Board as an independent non-executive
Director with effect from 1 September 2024.
We believe that Zoe’s strengths as an
investment, private equity and financial
professional will complement the Board’s
expertise and decision-making.
I am confident that the Board continues to have
the right balance of skills and capabilities to
provide effective oversight over the Company’s
future strategic journey.
Further information can be found in the
Governance section of the Report on page 70.
Stakeholder Engagement
The Board has a strong responsibility to all of
Senior’s stakeholder groups – our shareholders,
employees, customers, suppliers and the
communities we operate in. We believe that
engaging with our stakeholders is key to the
long-term success of the Group.
In 2024, the Executive team, Group Chair, and
Chair of the Remuneration Committee (Barbara
Jeremiah), continued the Group’s engagements
with shareholders across multiple channels.
This included writing to shareholders regarding
potential changes to the Remuneration Policy
and the LTIP rules. Please refer to page 97 in the
Remuneration Report.
This year the Group has conducted its third
global Employee Opinion survey. 85% of our
employees completed the survey which is an
excellent result considering that approximately
only 40% of our employees have ready access
to business emails.
Mary Waldner, the non-executive Director for
employee engagement and Jane Johnston,
Group HR Director have continued their
programme of face-to-face focus groups.
In addition, Mary has met delegates from
our Leading for Excellence group development
programme, met leadership teams when
visiting sites and joined the monthly global
HR calls in June.
Looking forward
Senior is delivering in line with our strategy,
upholding our focus on highly engineered,
IP-rich, fluid conveyance and thermal
management expertise and capabilities.
Looking ahead, we are positioning Senior
as a pure play fluid conveyance and thermal
management business operating in attractive
and structurally resilient core markets. This
position combined with our sector-leading
sustainability credentials and highly-relevant
technical capabilities, underpins our commitment
to deliver a strong performance across our
both Divisions. Reflecting the Board’s
confidence, we have announced new and
improved medium term financial targets for
the fluid conveyance and thermal management
business, which will deliver consistent value
creation for all of our stakeholders.
Good strategic, operational, and financial
progress has been made in 2024 and we remain
confident of continuing to do so in 2025.
On behalf of the Board, I would like to thank our
employees and all other stakeholders for their
continued support and commitments.
Ian King
Chair
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 7
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Overview of 2024 results
Senior delivered 2024 results in line with
revised expectations, enhanced by a strong
cash performance.
A book-to-bill ratio of 1.12 reflected strong order
intake in 2024, underpinning the Group’s
confidence in continued growth in 2025 and
beyond. Both our divisions recorded good order
intake, with some notable contract wins
including from Safran, Deutsche Aircraft
GmbH, Gail India Limited and land vehicle
OEMs (details in the divisional reviews below),
showcasing the broad, diversified and
high-quality nature of our business.
During 2024, Group revenue increased by 4%
on a constant currency basis to £977.1m, with
growth in the Aerospace Division and lower
sales in the Flexonics Division as expected.
Exchange rates had an adverse impact of
£25.5m to total sales.
In Aerospace, revenue increased 10% year-on-
year on a constant currency basis. The increase
reflected improved pricing, the ramp up in civil
aircraft production rates and very strong growth
of over 50% in Spencer Aerospace. This was
despite 737 MAX volumes being subdued
throughout the year following the Alaska
Airlines incident in January 2024 and the Boeing
employee strike from September to November
2024. We saw a return to growth in sales to
semiconductor equipment customers (which is
included in “Adjacent Markets”) and steady
growth in the defence market. In Flexonics,
revenue was in line with expectations, down
Airlines incident in early 2024 and 3 months of
lost production on 737 MAX, 767 and 777 due
to the strike at its factories in The Puget Sound.
Boeing have now started to ramp up production
following the recommencement of operations in
December 2024.
Senior responded to these events dynamically,
supporting our customers and controlling
our costs. Nonetheless, these temporary
headwinds did affect Aerospace profitability
in 2024.
Flexonics followed a more predictable path,
with Senior outperforming anticipated softer
end markets in 2024.
The Group generated free cash flow of £17.3m
(2023 – £15.5m) in 2024. The improvement
from 2023 was a result of lower working capital
outflows more than offsetting higher investment
in capital expenditure and higher tax and interest
payments. Cash outflows from working capital
were £17.0m (2023 – £27.6m outflows),
reflecting increased inventory, offset partially
by inflows from receivables and payables.
Inventory was higher in Aerospace with planned
investment to enable us to meet the increase
in demand from our customers, and as a result
of the impact of the Boeing strike and certain
customer schedule changes in Q4. Gross capital
expenditure was £43.2m (2023 – £35.9m)
which was 1.1x depreciation (excluding the
impact of IFRS 16).
6% compared to prior year, on a constant
currency basis. The Group saw robust demand
in our downstream oil and gas and nuclear
business, partially offsetting a reduction in sales
from one of our operating businesses to our
upstream oil and gas customers due to a lower
share of this very competitive market sector.
Global land vehicle markets softened as
expected in 2024, however, our sales
outperformed key end markets due to the ramp
up of recently won production contracts.
We measure Group performance on an adjusted
basis, which excludes items that do not directly
reflect the underlying trading performance in the
period (see Note 9). References below therefore
focus on these adjusted measures.
The Group’s adjusted operating profit increased
by 5% on a constant currency basis to £46.5m
driven by improved profit in Aerospace more
than offsetting the expected volume-related
reduction in profit in Flexonics. Adjusted
operating margin increased by 10 basis points
in 2024 to 4.8%.
The market backdrop for our Aerospace Division
remains healthy with order books for large
commercial aircraft at record levels, driven by
increasing air passenger demand. There were
some supply chain issues for Airbus and its
suppliers through the year, and although there
are clear signs of improvement, we expect there
to be ongoing issues to be managed given the
large, planned increases in production. Boeing
also had specific issues with the cap on 737
MAX production imposed following the Alaska
GROUP CHIEF EXECUTIVE
OFFICER’SSTATEMENT
Trading in line with revised expectations, strong cash performance
David Squires | Group Chief Executive Officer
“Our strategy of positioning Senior as a pure play fluid conveyance
and thermal management business in attractive and structurally
resilient core markets; with active portfolio management;
combined with our highly relevant technical capabilities; and
sector-leading sustainability credentials, provides confidence of
continuing performance improvements for the Group.”
Revenue
£977.1m
(2023 – £963.5m)
Adjusted operating profit
£46.5m
(2023– £45.8m)
Free cash flow
£17.3m
(2023 – £15.5m)
8 SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024
STRATEGIC
REPORT
Further 2024 financial performance is
described in the Divisional and Financial
Review sections below.
The Board has confidence in the Group’s
performance, financial position and future
prospects, and has approved a final dividend of
1.65 pence per share (2023 – 1.70 pence). This
will be paid on 30 May 2025 to shareholders on
the register at close of business on 2 May 2025.
This brings the total dividends, paid and
proposed for 2024, to 2.40 pence per share
(2023 – 2.30 pence), an increase of 4%
year-on-year. We will continue to follow a
progressive dividend policy reflecting earnings
per share, free cash flow generation, market
conditions and dividend cover.
Delivery of Group Strategy
We are committed to a sale of our
Aerostructures business and are making
good progress. There is good buyer interest,
we are now at an advanced stage of a sale
process with a small number of parties,
and negotiations are progressing positively.
We are focused on completing the sale process
and maximising value for shareholders and
will update the market in due course. This is
in line with our strategy to position Senior as
the market leading pure play fluid conveyance
and thermal management business.
Senior’s Purpose is “to help engineer the
transition to a sustainable world for the benefit
of all our stakeholders”. We do this by:
• Technology expertise – Using our
technology expertise in fluid conveyance
and thermal management to provide
safe and innovative products for
demanding applications in some of the
most hostile environments.
• Customer transition – Enabling our
customers, who operate in some of the
hardest-to-decarbonise sectors, to transition
to low-carbon and clean energy solutions.
• Climate action – Staying at the forefront
of climate disclosure and action by
ensuring our own operations achieve
our Net Zero commitments.
Our extensive design expertise, intellectual
property and know-how supports our strategic
focus. We offer pivotal technologies for
emissions reduction and environmental
efficiency, whether that is for cleaner and more
efficient conventional technology or new low
carbon product offerings.
We continue to invest in markets where we
believe there is significant growth potential and
where the Group’s skills and knowledge can be
exploited, such as aerospace highly engineered
standard parts/components. This market has
high barriers to entry and attractive returns. We
are broadening our product portfolio for specific
products such as flanges, couplings and fittings.
Our high-pressure hydraulic fittings business,
Spencer Aerospace (“Spencer”) has continued
to grow strongly with sales up by over 50% in
2024 compared to 2023 and has now grown
over 135% since we acquired the business in
late 2022.
Further information on Senior’s strategy
and strategic priorities can be found on pages
34 to 35. In addition, we will be providing
further details on delivery of our strategy at
our Investor Event on Monday, 3 March 2025.
Market Overview
Civil Aerospace (46% of Group)
The civil aerospace sector continued its
recovery with air traffic increasing in all regions
during 2024. According to the International
Air Transport Association (“IATA”), the latest
data showed that total demand during the
year, measured in Revenue Passenger Kms
(RPKs), increased by 10% year-on-year. Air
traffic is expected to continue to grow as
incomes increase, especially in developing
markets in Asia. The long-term demand for
new aircraft is forecast to grow by 3-4%
per annum driven by growth in air traffic
and ongoing fleet replacement.
Airbus delivered 766 aircraft in 2024, compared
to 735 deliveries in 2023. Airbus recently
confirmed production rate targets are now:
A220, 14 per month in 2026; A320 family,
75 per month in 2027; A330 maintaining
4 per month; and A350, 12 per month in 2028.
In 2024, Boeing delivered 348 aircraft compared
to 528 deliveries in 2023. It has been well-
documented that Boeing faced challenges in
2024. The Alaska Air 737 MAX incident in
January 2024 led to the FAA imposing strict
controls over Boeing production and capped
production at 38 aircraft per month until the
FAA agrees to further increases. The situation
was exacerbated by an employee strike at
Boeing’s Puget Sound facilities which lasted
for 53 days during which time no aircraft were
produced at the affected facilities. Production
of aircraft resumed in mid-December.
Boeing reduced the production rate of its 787
model from 5 aircraft per month to 3 for much
of the year due to supply chain constraints,
although production returned to 5 per month by
the year end. Boeing further announced that the
first delivery of the 777X will now be in 2026. In
January 2025, the 777X program resumed FAA
certification flight testing.
Embraer is forecasting that it will deliver
between 77-85 commercial aircraft in 2025,
up from 73 in 2024. It is also forecasting to
deliver between 145-155 business jets in 2025,
having delivered 130 in 2024. Global business
jet activity was down by 1% year-on-year in
2024 according to WingX. Global deliveries of
business jets are anticipated to increase by 11%
year-on-year in 2025 and by 2% per annum over
the next decade, according to Honeywell’s
Global Business Aviation Outlook.
Civil
Aerospace
46% of
Group
Defence
13% of
Group
Adjacent
Markets
9% of
Group
Land
Vehicle
19% of
Group
Power &
Energy
13% of
Group
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 9
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT CONTINUED
Sustainability
Our sustainability performance
Environment
33%
Reduction in Scope 1 (Direct) and Scope 2 (Indirect)
emissions (market based) from 2018 base year
(2023 – 29.5%)
Waste
91.1%
Recycling rate
(2023– 95.1%)
Diversity
56%
Percentage of women on Senior plc Board
(2023 – 57%)
Senior continues to be at the forefront
of sustainability reporting and action.
We believe that this is truly important
and, evidently, so do many of our
customers who are including
commitment and progress on
sustainability in their supplier selection
decision-making process. In 2024, we
made significant strides, including
meeting our Near-Term science-based
target for the reduction of greenhouse
gases, a year ahead of the 2025 target
date, and progressing our Double
Materiality Assessment (DMA). Looking
ahead to 2025, we will continue our
focus on sustainability by supporting
our customers in their carbon reduction
efforts, and, having already achieved our
Near Term Scope 1 & 2 SBTi accredited
targets, our full focus now turns to
meeting our 2040 Net Zero Scope 1, 2
and 3 targets.
In 2024, we achieved significant milestones
in our sustainability journey:
Environmental
• Awarded ‘A’ leadership score by CDP for
our disclosure and action on climate change
for 2024
• We continued to reduce our Scope 1 and 2
greenhouse gas emissions, achieving a
reduction of 33% against our 2018
baseline, meeting our Near-Term science-
based target ahead of the 2025 target date.
• Electricity sourced from renewable energy
increased to 52%, from 48% in 2023.
• We extended our support to suppliers yet
to set carbon reduction targets and updated
our Sustainable Sourcing Policy.
Social
• We undertook our annual Global Employee
Engagement Survey in May 2024 and were
pleased to see improvements in the
participation rate, engagement, and health
& wellbeing scores.
• Our Lost Time Injury Illness & Illness Rate
in 2024 reduced by over 40% to 0.19, down
from 0.32 in 2023.
• Currently, 56% of the Board Directors are
female, including the Chair of the Audit
Committee, the Senior Independent
Director, who is also Chair of the
Remuneration Committee, and the
Group Finance Director. The Chair
of the Audit Committee is also the
non-executive Director with Board
responsibility for employee engagement.
Two of the Directors (22%) are from
ethnic minority backgrounds.
Governance
• We deployed an enhanced Group
Anti-Fraud Policy.
• We carried out a Group-level double
materiality assessment. The results of
the assessment will inform Senior’s
approach to enhancing and evolving its
sustainability strategy.
Further information on Senior’s
sustainability activities can be found
on pages 12 to 31.
10 SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024
STRATEGIC
REPORT
Defence (13% of Group)
Senior’s sales to the Defence sector are
primarily focused on US military aircraft
platforms such as the F-35 and C-130J.
Lockheed Martin has stated that they will
continue to produce 156 F-35 aircraft per year,
having delivered 110 in 2024. The total planned
purchases of F-35s are over 3,500, of which
31% is for the international market.
Adjacent Markets (9% of Group)
Sales from our Aerospace operating businesses
into end markets outside of the civil aerospace
and defence markets are classified under
“Adjacent Markets” and include sales into
the semiconductor equipment, space and
medical markets.
In the semiconductor sector, global sales of
wafer fabrication equipment grew by 7% during
2024. This market is forecast to grow by a
further 7% in 2025 driven by demand for
AI-related chips. (Source: Semi.org)
Land Vehicle (19% of Group)
Demand in heavy-duty truck markets during
2024 weakened in both Europe and North
America, while the off-highway market
remained subdued and light vehicle markets
experienced mixed conditions.
According to Americas Commercial
Transportation (“ACT”) research, North
American heavy-duty truck production declined
by 2% in 2024 compared to 2023, which was
better than originally anticipated. This decline
was due to ongoing overcapacity in the for-hire
freight-logistics sector in the USA, which has
resulted in low levels of profitability and fleet
investment in the Class 8 “tractor” sector. ACT
forecast production to decline by 5% in 2025
and rebound in 2026 to 12% growth as a result
of the pre-buy ahead of the planned 2027
emission change.
Weak economic fundamentals, particularly in
Germany, led to lower orders for and production
of heavy-duty trucks in Europe during 2024.
S&P Global (“S&P”) data shows that production
was down 26% year-on-year, weaker than
originally anticipated. S&P predict production in
2025 to increase by 2%.
In the off-highway sector, demand for
construction vehicles decreased in both North
America and Europe in 2024. Demand for
mining equipment remained positive in all major
markets. Industry participants are forecasting
that overall demand in the off-highway sector
in 2025 will decline in North America between
0% – 10%, be flat in Europe and increase
between 0% – 10% in China.
European light vehicle production declined by
7% in 2024 after two years of post-pandemic
catch-up, as supply and demand became more
balanced. Production in North America fell by
2% in 2024, as four years of inventory
restocking came to an end. In India, the other
light-vehicle market to which Senior has
significant exposure, production in 2024
increased by 4%. This relatively low rate, by
Indian market standards, was due to high levels
of inventory. S&P is forecasting that production
in 2025 will fall by 5% in Europe, by 2% in North
America and increase by 6% in India.
Power & Energy (13% of Group)
2024 saw growth in upstream oil & gas
expenditure slowing, especially in the Middle
East, while remaining subdued in North America.
Activity in the downstream sector remains
focussed in the Middle East and Asia, where
cheap feedstock and economic growth
respectively is driving demand.
Global electricity consumption grew by 4.3%
in 2024 and is forecast to grow at 4% annually
through 2027. Demand is being driven primarily
by economic growth, urbanisation and the
adoption of EVs.
Outlook
We are committed to a sale of our
Aerostructures business and are making
good progress. There is good buyer
interest, we are now at an advanced stage
of a sale process with a small number of
parties, and negotiations are progressing
positively. We are focused on completing
the sale process and maximising value for
shareholders and will update the market in
due course. This is in line with our strategy
to position Senior as the market leading
pure play fluid conveyance and thermal
management business.
For the year ahead, the Board anticipates
good growth for the Group, in line with its
expectations. We are closely monitoring
the impact on global trade from potential
tariff changes.
Increasing aircraft build rates, operational
efficiency benefits and improved contract
pricing are expected to drive good growth
in Aerospace in 2025, with H2 expected to
be higher than H1.
For the full year, Aerostructures is expected
to improve from a loss making position in
2024 to an operating profit range of £9m
to £11m in 2025, with the large majority
of that being earned in H2.
We expect Flexonics performance in 2025
to be broadly similar to 2024.
In land vehicles, the ramp up of
programmes recently won means we
expect our 2025 performance to be broadly
similar to 2024, despite some softness in
North America and Germany. In power and
energy, activity levels are expected to be
similar to 2024.
Our strategy of positioning Senior as
a pure play fluid conveyance and thermal
management business in attractive and
structurally resilient core markets; with
active portfolio management; combined
with our highly relevant technical
capabilities; and sector-leading sustainability
credentials, provides confidence of
continuing performance improvements
for the Group. Reflecting the Board’s
confidence, we have announced new and
improved medium term financial targets
which will be discussed in detail at the
Investor Event on Monday, 3 March 2025.
David Squires
Group Chief Executive Officer
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 11
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Mark Roden | Group Director of
HSE & Sustainability
“We have made progress
against goals, reaching
Net Zero a year ahead of target,
reducing LTIR to word class
levels and retaining an “A”
rating with CDP on disclosure
and climate action.“
Sustainability goals for 2025
In 2025, we aim to build on this strong
foundation by:
• commencing double materiality
disclosure to address both financial
and environmental/social impacts; and
• improving the precision of Scope 3
calculation methodologies as we
progress toward our Net Zero
2040 target.
SUSTAINABILITYSUSTAINABILITY
In 2024, we carried out our first Double
Materiality Assessment (DMA) for the Group.
The DMA, aligned to the CSRD, assessed both
financial and impact materiality.
Financial materiality is defined as matters
which (may) generate risks or opportunities
that could potentially have a material influence
on the undertaking’s cash flows, development,
performance, position, cost of capital or
access to finance over the short, medium,
and long-term time horizons.
Impact materiality is defined as matters
which could have an actual or potential
significant impact on people or the environment
over the short, medium or long term, caused
or contributed to by the undertaking’s own
operations, products, or services or through
its business relationships.
The results of the DMA process are shown in
the table below. The risks and impacts identified
as part of this assessment have been mapped
against the Group’s principal risks disclosed on
page 54 to 59. Appropriate mitigation measures
are already in place to manage these risks
and to take advantage of the opportunities.
Senior’s material sustainability topics
Topic
Potentially material
from a financial
perspective
Potentially
material from an
impact perspective
Environment
R&D and product innovation
Sustainable product design and lifecycle management
Climate change mitigation
Responsible material sourcing and efficiency
Social
Product performance, quality and safety
Employment practices and worker rights in own workforce
Health, safety and wellbeing
Attracting future talent
Worker and human rights in the supply chain
Governance
Data protection and cyber security
Supply chain management
Anti-bribery and corruption
Double Materiality Assessment
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202412
STRATEGIC
REPORT
All sustainability matters affected by, or having an effect on Senior
Financial
Impact of ESG
topics on Senior
Impact
Impact of Senior
on people
and planet
Material
from both
perspectives
Risks and opportunities that
become financially material
Positive and negative impacts
that become impact material
Eight stakeholder groups were considered as part of the DMA process
Stakeholders identified during
the value chain mapping
Stakeholder groups consulted
in the DMA process Rationale
Senior Leadership Senior Leadership and members of the
Executive Committee
To validate topics and identify IROs from a range of strategic perspectives
Operating Business Leaders
and Functional Managers
Management and senior employees
(various regional representation)
To validate topics and identify IROs from various regional and business
development perspectives
Employees Group HR Director and a representative
of the Works Council
To validate IROs from a HR perspective and to ensure employee viewpoints
are represented as an affected stakeholder
Investors and ESG
rating agencies
Investor relations and investors To represent shareholder perspectives
Suppliers/workers
in the value chain
Supplier representatives To validate topics and identify IROs from a supply chain perspective
and to represent the views of employees in the value chain
Customers/end users
of Senior’s products
Customer representatives To validate the topics and identify IROs from a customer and end user perspective
Local communities Business leaders in our global
operations
To understand the potential impacts of Senior’s own operations on the local
communities surrounding manufacturing sites
Environment Global aviation agencies’ reports To validate IROs from an environmental perspective (focused on aviation)
4. Validation
3. Analysis
1. Landscape review
5. Materiality matrix
2. Stakeholder engagement
and shortlisting
1. Landscape Review – the objective of the
landscape review was to identify the
comprehensive list of sustainability topics that
the Company should consider through the
DMA. A comprehensive list of topics was
identified and thoroughly reviewed.
2. Stakeholder Engagement Process – the
stakeholder engagement process began with
mapping Senior’s value chain, which identified
key activities, materials, geographies and
stakeholders. Following the value chain
mapping exercise, a list of stakeholder groups
was identified. We selected a diverse range
of internal and external stakeholders for direct
engagement, ensuring they represented a
variety of perspectives and a mix of
geographies, business/market expertise and
commercial relationships with Senior. Where
the direct engagement was not possible, we
used alternative information to gather insights.
As a result of the engagement process, we
validated the long list of sustainability topics,
identifying Impacts, Risks and Opportunities
(IROs) from a wide range of perspectives.
Following engagement with stakeholders, the
short list of sustainability topics and their
associated IROs were identified.
3. Analysis – a scoring tool, designed in line
with the European Financial Reporting
Advisory Group (EFRAG) guidance, was used
to score each IRO related to each short-listed
topic. To score Impact Materiality, each topic
was assessed according to the European
Sustainability Reporting Standards (ESRS) and
EFRAG double materiality guidance against
three parameters to determine its severity:
scale, scope and irremediability. To score
Financial Materiality, the calculation
considered how each issue might affect
Senior financially in terms of revenues, fines
and remediation, profit, cost of capital and
asset value. This was aligned with Senior’s
existing guidance for assessing likelihood of
occurrence and impact.
4. Validation – the scoring results were
presented to the Executive Committee
and the Board in December, who performed
the final validation of the double materiality
matrix. The matrix will provide a framework
for Senior to prioritise its efforts in addressing
sustainability-related risks, impacts
and opportunities.
5. Materiality Matrix – the list of sustainability
topics material to Senior is shown on page 12.
Our double materiality process
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 13
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Environmental progress and commitment
SUSTAINABILITY
ENVIRONMENT
At Senior, we continue to make measurable
progress toward our ambitious environmental
targets. Our strategic investments in more
sustainable manufacturing practices are
driving our transition to carbon neutrality and
fostering a positive impact across our various
stakeholder groups.
We adopt a science-based approach to address
climate change, with our commitment to
achieve Net Zero emissions by 2040 firmly
aligned with the Paris Agreement. This is
underpinned by science-based targets approved
by the Science Based Targets initiative (SBTi),
ensuring our goals are credible and grounded
in climate science.
Our energy management strategy plays
a pivotal role in achieving these greenhouse gas
emissions reductions within our operations,
thereby supporting global efforts to mitigate
climate change.
Our approach to climate transition planning
SENIOR
APPROACH
TO TRANSITION
PLANNING
Decarbonising
Senior
Climate-
related risks &
opportunities
Economy-wide
transition
Economy-wide transition
Our fluid conveyance and
thermal management
technology allows us to
support our customers
with high-value solutions
in the medium and long
term as they transition to
sustainable technologies.
Decarbonising Senior
Senior commits to reach
Net Zero GHG emissions
across the value chain by
2040 from a 2018 base year.
Climate-related risks
& opportunities
Climate change has been
identified as one of the
Group’s principal risks since
2019. In 2024, we conducted
our annual assessment
of climate-related risks in
conjunction with our Double
Materiality Assessment
(DMA). A detailed description
of this process is provided
in this section.
We are
contributing to
the following
UN Sustainable
Development
Goals through
actions outlined
in this chapter:
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202414
STRATEGIC
REPORT
Climate change
Senior energy hierarchy
Reduce energy
Consumption
On-site
renewable Energy
Renewable/low
Carbon energy
Procurement
Transition from
Gas to Renewable
Supplier engagement
In 2024, we were delighted to receive
an A rating from CDP for Climate
Disclosure and Action for the third
consecutive year. With over 24,000
organizations reporting to CDP, we are
honoured to be among the select few
awarded the highest grade. This
recognition further reinforces our
leadership position in climate
disclosure within our peer group.
Addressing the climate challenge
It is imperative that all industries work to reduce
greenhouse gas (GHG) emissions in alignment
with scientific guidance. This requires decisive
and immediate actions to achieve near-term
progress on the path to carbon neutrality by
2050, as outlined in the United Nations
Framework Convention on Climate Change
(Paris Climate Agreement). By working together
and taking meaningful steps now, we can help
mitigate these risks and build a sustainable
future for generations to come.
Progress towards our certified
Science-Based Targets
Scope 1 and 2 Carbon Emissions
Scope 1 emissions encompass greenhouse gas
(GHG) emissions directly generated by our
operations, including those from natural gas
combustion, owned transport, and refrigerant
use. Scope 2 emissions, on the other hand, refer
to indirect GHG emissions resulting from the
energy purchased by our organisation,
predominantly electricity.
As part of our certified science-based targets,
we remain steadfast in our commitment to
reducing these emissions. Our carbon reduction
programme focuses on:
• Enhancing energy efficiency across
our operations.
• Increasing on-site renewable
energy generation.
• Sourcing low-carbon electricity where
available to further minimise our
environmental footprint.
Through these initiatives, we are driving
meaningful progress toward achieving our
climate goals while supporting the global
transition to a sustainable, low-carbon future.
In 2024, our businesses remained focused
on improving energy management and
monitoring, expanding on-site solar generation,
and upgrading plant and equipment with
energy-efficient alternatives. These efforts
yielded measurable outcomes:
• Total energy usage decreased by1%.
• On-site solar generation was extended,
with the facility in the Czech Republic,
installed in 2023 achieving full operational
output. Existing solar photovoltaics (PV)
installations in Thailand, Malaysia,
and India continued to contribute to our
renewable energy mix.
These achievements reflect our ongoing
commitment to reducing our environmental
footprint and advancing toward our certified
science-based targets.
Progress on Near-Term
Science-Based Targets
We remain ahead of our 2025 Near-Term
Science-Based Target, demonstrating our
commitment to meaningful and measurable
climate action:
• Achieved a 5.6 %reduction in total Scope 1
and 2 emissions (market-based) in 2024
compared to 2023.
• Achieved a 33.4% reduction in Scope 1
and 2 emissions against our 2018 baseline.
• Increased the sourcing of renewable
electricity to 52% in 2024, up from 48%
in 2023.
These accomplishments reflect our dedication
to operational efficiency, renewable energy
sourcing, and maintaining a trajectory toward
carbon neutrality by 2040.
Scope 3 emissions and supply
chain engagement
Scope 3 emissions arise from activities
beyond Senior’s direct ownership or control,
encompassing carbon emissions indirectly
influenced by our value chain. These emissions
extend beyond Scope 1 and 2, making them
a critical area for addressing our overall
carbon footprint.
To effectively reduce Scope 3 emissions, we
recognize the importance of robust engagement
with our supply chain, as purchased goods and
capital goods represent the largest contributors
to our Scope 3 profile. Since 2021, we have
partnered with CDP to work collaboratively with
our suppliers, adopting best practices to drive
progress toward our Scope 3 (supplier
engagement) Science-Based Target (SBTi).
This partnership exemplifies our commitment to
fostering sustainable practices across our value
chain and achieving impactful climate action.
Recognition for CDP Supplier
Engagement Programme efforts
In 2023, we received an “A” rating for our
efforts in the CDP Supplier Engagement
Programme. This prestigious recognition is
awarded only to the most committed
companies actively working to reduce
greenhouse gas emissions across their supply
chains. It underscores our dedication to driving
meaningful climate action in collaboration with
our suppliers.
We eagerly await the announcement of our
2024 score, reflecting our continued
commitment to sustainability leadership.
As part of CDP’s supply chain engagement
programme, we identified and engaged with
over 300 of our key suppliers in 2024. In
addition, we initiated an analysis of carbon
reduction commitments among suppliers not
yet participating in the CDP process.
To support those yet to embark on this journey,
we have developed a simple carbon target tool
aligned with the principles of Science-Based
Targets. This tool provides practical guidance
to help suppliers establish and implement their
carbon reduction goals.
When evaluating Purchased Goods and
Services, we include approximately 320 of
our suppliers. This approach aligns with our
Science-Based Target, which requires that
82% of our suppliers, by spend, establish
a Science-Based Target.
Ninety-one of our key suppliers have declared
they have set carbon reduction targets. This has
been helped by support through the CDP supplier
programme, and the Senior sustainability team.
The data we receive from our suppliers is useful
to us when we calculate our Scope 3 Purchased
Goods carbon emissions, we are able to use this
data to increase accuracy for this calculation.
Our latest Scope 3 emission data can be found on
senior_plc_esg_disclosure_march_2024.pdf, please
see www.seniorplc.com/sustainability
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 15
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Scope 1 and 2 market-based emissions
0
10000
20000
30000
40000
50000
60000
2018 2019 2023 20242021 20222020
Target Total tonnes CO
2
e
Scope 1 & 2 Market Based Emissions
56,99257, 418
46,747
46,540
44,878
38,238
40,491
Carbon emissions
(measured as tonnes ofCO
2
e)
Scope 1
Scope 2
Electricity +
District Heating
(market-based) Total
2018 10,414 47,0 0 4 57,418
2019 10,378 46,614 56,992
2020 8,731 38,016 46,747
2021 8,445 38,095 46,540
2022 8,629 36,249 44,878
2023 9,701 30,790 40,491
2024 7,945 30,293 38,238
Note: The Scope 1 and 2 emissions location
based andmarket-based (FY22) are independently
verified in accordance with the International
Standard on Assurance Engagements ISAE3410
(limited assurance).
Carbon Emissions 2024
In Compliance with Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 –
Streamlined Energy and Carbon Reporting (“SECR”)
1 Jan 2024 to 31 Dec 2024 1 Jan 2023 to 31 Dec 2023
UK and
Offshore
Global
excluding UK
and Offshore Total
UK and
Offshore
Global
excluding UK
and Offshore Total
Scope 1: Combustion of fuel and operation of facilities 1,140 6,805 7,945 1,122 8,579 9,701
Scope 2: (location based) Electricity, heat and steam
purchased for own use 2,381 42,975 45,356 2,264 39,473 41,737
Scope 2: (market based) Electricity + District Heating 0 30,293 30,293 0 30,790 30,790
Total gross Scope 1 and 2 (location based)
emissions/tCO
2
e 3,521 49,780 53,301 3,387 48,051 51,438
Energy consumed in MWh to calculate above emissions 16,872 129,121 145,993 16,309 130,610 146,919
Scope 3: Business travel, waste, water 283 2,382 2,665 238 2,226 2,464
Total Gross emissions/tCO
2
e (Scope 1, Scope 2 location
based, Scope 3 ; Business travel, waste, water) 3,804 52,162 55,966 3,625 50,278 53,902
Intensity measure tonnes CO
2
emitted per £m of revenue 23 63 57 21 64 56
Water usage (in megalitres) 25 215 240 32 228 260
Percentage of waste recycled or recovered
100% 91% 91% 100% 94.5% 95.1%
33.4%
reduction in total Scope 1 and 2 emissions
from our 2018 baseline
We have achieved our 2025 Near Term
Science Based Target this year: 30%
reduction of Scope 1 and 2 emissions
with a 2018 base year.
SUSTAINABILITY ENVIRONMENT
Methodology
The Group’s approach to calculating and reporting
our GHG emissions follows the GHG Protocol
on how to measure and monitor GHG emissions.
Three data sources are used to calculate
GHG emissions:
1. UK Government GHG Conversion factors for
company reporting (Defra full set for advanced
users 2024).
2. US EPA (eGRID) Emission factors for greenhouse
gas inventories for US electricity generation
(2024Version).
3. IEA (International Energy Agency) Emission
factors year 2024 Edition. Reporting has
incorporated Scope 2 greenhouse gas emissions
(associated with electricity consumption)
calculated using both the location and market-
based methods. Data for the market-based,
utility emission rates has been collated during
the period December 2024 – January 2025,
as best available information to represent the
emissions during the year. It should be noted
that these vary and are periodically updated,
so are representative of our best endeavour to
determine market-based emissions at the
time of collating data for this report.
Each Senior business reports its environmental
performance monthly using the Group’s financial
reporting process.
The Scope 1 and 2 emissions location-based
and market-based (FY24) are independently
assured in accordance with the International
Standard on Assurance Engagements ISAE 3410
(limited assurance).
In calculating GHG emissions, the Group has
used the control approach and more specifically the
financial control approach under which a company
accounts for 100% of the GHG emissions from
operations over which it has control. This covers
all wholly owned operations and subsidiaries of
the Group for financial reporting purposes.
Limited Scope 3 emissions are reported in the table
above, they are not externally verified at the time of
publication of this Annual Report and Accounts.
A full disclosure of the 2024 Scope 3 emissions,
externally verified, will be made publicly available
within our CDP Climate Change Disclosure, publically
available later in 2025.
Total waste includes the reported production
and non-production-related hazardous and
non-hazardous solid, sludge and liquid materials
(including wastewater since 2019) that is sent off
site for disposal, treatment, reprocessing, recycling
or reuse by others. Waste materials do not include
by-products or scrap from a Senior business
process which are re-used in a production process.
Similarly, waste that arises from construction and
other maintenance/remediation work performed by
third-party contractors are not included in the scope
of reporting where the contractor is responsible for
the disposal of the waste. Defra conversion factors
are used worldwide for waste data as means to
determine a reasonable carbon conversion factor.
Water volumes are obtained from meter
readings and from supplier invoices. All water
consumption is converted to megalitres, carbon is
derived using recognised and appropriate Defra
carbon conversion factors.
For vehicle and air mileage, Senior uses the most
applicable Defra conversion factors to calculate
the carbon based on distance travelled.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202416
STRATEGIC
REPORT
Energy efficiency actions
In the reporting year, we have continued to
implement energy efficiency projects across our
global operations. In total, Senior’s
environmental improvements in 2024 have the
potential to reduce annual GHG emissions by
1,360 tonnes of CO
2
e.
These improvements include enhancing energy
efficiency in buildings through insulation
upgrades, heating, ventilation, and air
conditioning (HVAC) improvements, as well as
further installations of LED lighting.
We remain focused on improving energy
efficiency in production processes, including
machine and equipment upgrades, compressed
air system optimisation, and heat recovery
initiatives. Eleven Senior operating businesses
have implemented advanced energy monitoring
software, providing granular insights into
consumption trends across gas, electricity, and
water usage. These systems enable plants to
analyse energy consumption by service
category, benchmark against baselines, and
assess cost impacts via interactive dashboards.
They also help detect anomalies, facilitating
prompt investigations and corrective actions.
All of Senior’s UK operating businesses and our
Group Head Office are now powered by 100%
renewable electricity. Additionally, Flexonics
Kassel Germany and Aerospace Metal Bellows
Boston USA have secured 100% renewable
electricity contracts, collectively avoiding 4,000
tonnes of GHG emissions annually.
In the US, our SF Bartlett site continues to
purchase renewable energy at a 50% renewable
tariff, with other Senior sites making steady
progress toward securing similar contracts. Our
commitment to solar power also continues to
grow, with Flexonics Olomouc solar installation
achieving full operational status in 2024, capable
of reducing GHG emissions by 40 tonnes
annually. With this addition, the total number of
our sites equipped with on-site solar
photovoltaic (PV) systems now stands at four.
Waste
In 2024, we conducted a comprehensive review
of waste streams across all our global
operations. This effort enabled us to enhance
data collection, providing a more detailed
delineation of our waste categories.
Our waste recycling rate experienced a slight
decline, decreasing from 95.1% in 2023 to
91.1% in 2024. This was largely influenced by
a reduction in production activity in our Pacific
North West businesses due to customer strike
in the second half of 2024 and increased landfill
use , which will be a focus in 2025. Eleven of
our operational sites achieved zero waste to
landfill in 2024.
Looking ahead to 2025, we are placing an even
stronger emphasis on waste reduction and
recycling, with a particular focus on improving
recycling rates in regions where local
infrastructure supports it.
For information on hazardous waste, please see:
www.seniorplc.com/sustainability
Water
At Senior, our objective is to minimise the
environmental impact of our production
processes by optimising water usage,
particularly in regions facing significant water
scarcity. Aware of the growing strain on global
freshwater reserves, we are committed to
identifying areas of high water risk and
implementing strategies to reduce freshwater
consumption in these regions.
We utilise tools such as the World Wide Fund
for Nature (WWF) Water Risk Filter to pinpoint
businesses located in water-scarce regions,
enabling us to target our efforts where they are
needed most.
In 2024, our proactive measures proved
effective, resulting in a reduction of our overall
water consumption to 240 megalitres, down
from 260 megalitres in 2023.
For information on water, please see
www.seniorplc.com/sustainability
Certification
All Senior legacy businesses hold ISO 14001
accreditation, reflecting our commitment to
robust environmental management practices.
In 2024, our recent acquisition, Spencer
Aerospace, began its journey toward
achieving this accreditation, with a target
to secure it in 2025.
At Senior, the Environmental Management
System (EMS) under ISO 14001 is more than
a framework it is a collaborative effort that
unites our teams in pursuit of shared
environmental goals. By fostering a culture
of transparency and celebrating achievements,
we inspire and engage our staff, cultivating
a cohesive and motivated workforce dedicated
to environmental stewardship.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 17
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
SUSTAINABILITY ENVIRONMENT
AEROSPACE
Observation
The latest generation aero-engine
technology can deliver up to 15%
fuel-efficiency improvements.
Advanced Air Mobility
(AAM) operators plan to start
operations from 2025, but
widespread acceptance is
unlikely before 2030.
Our response
We have, and continue to win,
significant content on systems
critical to fuel efficiency on
current best-in-class engines.
We are working with multiple
AAM providers on prototype
solutions for thermal
management solutions.
Observation
Policies to mandate (EU &
Singapore) and encourage (US)
the increased use of SAF are
being introduced.
Hybrid-electric propulsion
systems for aircraft are
being developed to support
decarbonisation within the
aviation sector.
Our response
Our current fluid conveyance
solutions are fully compatible
with SAFs.
We are collaborating with
multiple customers on various
components and systems for
more-electric aircraft, whether
with conventional or zero-
emission propulsion systems.
Observation
Alternative-powered aircraft will
increase demand for battery
thermal management, fuel cell
and cryogenic expertise.
Airbus’ ZEROe H2 aircraft is
planned for EIS in 2035.
Our response
Our Aerospace and Flexonics
divisions are working together
to develop various demonstrator
hydrogen powertrain components
for OEM customers.
LAND VEHICLE
Observation
The California Air Resources
Board requires 67.5% NOx
reductions by 2027. EURO VII
standards (15% reduction in
CO
2
emissions) to be introduced
in 2025.
Semiconductor content in cars is
increasing, especially in EVs. The
US passed the CHIPS Act to
secure supply, EU and India are
implementing similar plans.
Our response
Our emissions controls products
help vehicle manufacturers
meet increasingly stringent
regulations, such as our radial-fin
EGR cooler for EURO-VII
compliant diesel engines.
We are a key supplier to
semiconductor equipment
manufacturers.
Observation
The US EPA will tighten emissions
rules countrywide from 2027.
Major car markets are
implementing a COP26
agreement to ban new fossil
fuel cars by 2035.
Our response
We have patented solutions for
electric vehicle (EV) inverter heat
sinks (power electronics cooling),
as well as battery thermal
management systems.
We are developing fuel (H2)
and exhaust water ducting
solutions for hydrogen fuel- cell
truck applications.
Observation
38 countries have committed to
100% zero-emission new truck
and bus sales by 2040.
Our response
We are developing very
high-pressure hoses capable
of 1000 bar (40% higher than
current capacity) for high speed
H2 refuelling.
We are in series production of
battery coolers and have won
multiple contracts for fluid
conveyance applications on BEVs.
POWER & ENERGY
Observation
Nuclear power is increasingly
seen as vital for a low-carbon
future. The European Parliament
voted to classify nuclear power as
a green investment.
Companies requiring reliable
base-load electricity for data
centres are signing agreements
for the supply of electricity with
utility companies that have nuclear
generating capacity and with
developers of Small Modular
Reactors (SMRs)
World leaders agreed to transition
away from fossil fuels at COP28.
Our response
We are providing engineering
design and bid support for
expansion joints to OEMs
of SMRs.
Our flue gas diversion products
are mitigating the climate impact
of conventional energy.
Observation
The EU’s target for renewables
within its energy mix is at least
42.5% by 2030.
The US is targeting a 50 – 52%
reduction in GHG emissions
below 2005 levels by 2030.
Our response
Energy storage applications will
grow in importance as renewable
energy sources grow to be the
dominant mode of generation.
Senior is already working with
energy storage companies to
develop thermal management
solutions for this sector.
Carbon capture is another area
where we are working with
OEMs to develop solutions.
Observation
The IEA forecasts that under its
Stated Policies Scenario the share
of electricity in final energy
consumption will increase from
20% in 2023 to 26% by 2035
driven by the electrification of
end-uses, most notably electric
vehicles and data centres.
Ensuring stable power supply for
critical infrastructure such as data
centres will be important.
Our response
Senior continues to work with its
customers to provide thermal
management solutions for EVs,
while we have extensive
experience in land-based solid
oxide fuel cell (“SOFC”)
components used in backup
power units for data centres.
20302020
Our success is built on developing long-term
partnerships with our customers, which enable
us to help them meet today’s challenges
and deliver solutions for future low-carbon
requirements. An example of this is our work
to provide customers with more energy efficient
solutions on existing internal combustion
technologies while simultaneously helping
these same customers bring to market efficient
and viable electric and hydrogen power trains.
We have continued to reduce our carbon
emissions (market-based Scope 2) by using
more renewable energy and by employing more
sustainable production methods and utilising
more sustainable materials wherever possible.
Reducing waste and the consumption of
electricity and water during the manufacturing
of the products remains a key focus. In 2024,
we achieved a waste recycling rate of 91.1%.
With operations in 12 countries, we are also able
to be geographically close to major customers
which helps to minimise the carbon footprint
of our products.
Delivering sustainable solutions
As the world transitions to a low-carbon
economy, Senior continues to work with our
customers to develop efficient and effective
products that are more sustainable and have
a lower environmental impact during the
manufacturing process and while in use.
OUR TECHNOLOGY AND PRODUCT DEVELOPMENT
ON THE PATH TO NET ZERO
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202418
STRATEGIC
REPORT
2040 2050
AEROSPACE
Observation
The latest generation aero-engine
technology can deliver up to 15%
fuel-efficiency improvements.
Advanced Air Mobility
(AAM) operators plan to start
operations from 2025, but
widespread acceptance is
unlikely before 2030.
Our response
We have, and continue to win,
significant content on systems
critical to fuel efficiency on
current best-in-class engines.
We are working with multiple
AAM providers on prototype
solutions for thermal
management solutions.
Observation
Policies to mandate (EU &
Singapore) and encourage (US)
the increased use of SAF are
being introduced.
Hybrid-electric propulsion
systems for aircraft are
being developed to support
decarbonisation within the
aviation sector.
Our response
Our current fluid conveyance
solutions are fully compatible
with SAFs.
We are collaborating with
multiple customers on various
components and systems for
more-electric aircraft, whether
with conventional or zero-
emission propulsion systems.
Observation
Alternative-powered aircraft will
increase demand for battery
thermal management, fuel cell
and cryogenic expertise.
Airbus’ ZEROe H2 aircraft is
planned for EIS in 2035.
Our response
Our Aerospace and Flexonics
divisions are working together
to develop various demonstrator
hydrogen powertrain components
for OEM customers.
LAND VEHICLE
Observation
The California Air Resources
Board requires 67.5% NOx
reductions by 2027. EURO VII
standards (15% reduction in
CO
2
emissions) to be introduced
in 2025.
Semiconductor content in cars is
increasing, especially in EVs. The
US passed the CHIPS Act to
secure supply, EU and India are
implementing similar plans.
Our response
Our emissions controls products
help vehicle manufacturers
meet increasingly stringent
regulations, such as our radial-fin
EGR cooler for EURO-VII
compliant diesel engines.
We are a key supplier to
semiconductor equipment
manufacturers.
Observation
The US EPA will tighten emissions
rules countrywide from 2027.
Major car markets are
implementing a COP26
agreement to ban new fossil
fuel cars by 2035.
Our response
We have patented solutions for
electric vehicle (EV) inverter heat
sinks (power electronics cooling),
as well as battery thermal
management systems.
We are developing fuel (H2)
and exhaust water ducting
solutions for hydrogen fuel- cell
truck applications.
Observation
38 countries have committed to
100% zero-emission new truck
and bus sales by 2040.
Our response
We are developing very
high-pressure hoses capable
of 1000 bar (40% higher than
current capacity) for high speed
H2 refuelling.
We are in series production of
battery coolers and have won
multiple contracts for fluid
conveyance applications on BEVs.
POWER & ENERGY
Observation
Nuclear power is increasingly
seen as vital for a low-carbon
future. The European Parliament
voted to classify nuclear power as
a green investment.
Companies requiring reliable
base-load electricity for data
centres are signing agreements
for the supply of electricity with
utility companies that have nuclear
generating capacity and with
developers of Small Modular
Reactors (SMRs)
World leaders agreed to transition
away from fossil fuels at COP28.
Our response
We are providing engineering
design and bid support for
expansion joints to OEMs
of SMRs.
Our flue gas diversion products
are mitigating the climate impact
of conventional energy.
Observation
The EU’s target for renewables
within its energy mix is at least
42.5% by 2030.
The US is targeting a 50 – 52%
reduction in GHG emissions
below 2005 levels by 2030.
Our response
Energy storage applications will
grow in importance as renewable
energy sources grow to be the
dominant mode of generation.
Senior is already working with
energy storage companies to
develop thermal management
solutions for this sector.
Carbon capture is another area
where we are working with
OEMs to develop solutions.
Observation
The IEA forecasts that under its
Stated Policies Scenario the share
of electricity in final energy
consumption will increase from
20% in 2023 to 26% by 2035
driven by the electrification of
end-uses, most notably electric
vehicles and data centres.
Ensuring stable power supply for
critical infrastructure such as data
centres will be important.
Our response
Senior continues to work with its
customers to provide thermal
management solutions for EVs,
while we have extensive
experience in land-based solid
oxide fuel cell (“SOFC”)
components used in backup
power units for data centres.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 19
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Net Zero
SUSTAINABILITY
TASK FORCE ON CLIMATE-RELATED
FINANCIALDISCLOSURES (“TCFD”)
TCFD compliance statement – Senior’s climate-related disclosures for the year ending
31 December 2024 are consistent with the TCFD recommendations and recommended
disclosures (set out in Section C of the 2021 TCFD Annex “Guidance for All Sectors”),
and comply with the requirements of the Listing Rule 6.6.6R(8).
Governance
Oversight of climate-related risks
and opportunities
The Board of Directors oversees climate-related
matters within the Company with David Squires,
the Group Chief Executive Officer, having
ultimate responsibility for climate-related risks
and opportunities. David Squires is supported in
this by Mark Roden, the Group Director of HSE
& Sustainability, who is responsible for the
Company’s sustainability and climate-related
disclosure and actions.
Assessing and managing climate-related
risks and opportunities
Senior’s Executive Committee is responsible for
assessing and managing climate-related risks
and opportunities.
Key activities in 2024
Oversight
• The Group Chief Executive Officer’s
report to the Board – presented at every
scheduled Board meeting in 2024, the report
covered the Group’s progress on non-financial
sustainability metrics, such as waste
recycling, water usage and reduction of
carbon emissions; as well as Senior’s
achievements in its sustainability initiatives,
such as “A” rating in “Climate Change 2023”
disclosures by CDP, and receiving a Low
Carbon Innovation Award at “Safran IP
Challenge 2024”.
• Presentations to the Board by the Group
Director of HSE & Sustainability – having
attended two Board meetings in 2024, Mark
Roden presented the Group’s Scope 1 and 2
market-based emissions tracker, updated on
the transition of the Group’s operating
businesses to renewable or low-carbon
electricity contracts, and progress made on
Senior’s Supplier Engagement programme in
respect of Scope 3 emissions. As part of the
programme, Senior updated its Sustainable
Sourcing Policy defining expectations for its
suppliers to set and make progress towards
their own science-based targets and
environmental preservation goals.
• Double Materiality Assessment (DMA) –
the Board reviewed the findings of the DMA,
presented in the materiality matrix on page
12. Climate-related impacts, risks and
opportunities will shape the Company’s
strategic sustainability direction.
• Audit Committee – during 2024, the Audit
Committee reviewed the Company’s TCFD
disclosures included in the Company’s 2023
Annual Report & Accounts, and the external
assurance over GHG emissions and waste
recycling rate.
• Remuneration Committee – reviewed
progress of the 2024 bonus potential
determined by a target related to absolute
reductions in Scope 1 and 2 emissions and
discussed potential targets for the 2025
annual bonus plan.
• Strategy – as part of the annual Board
Strategy meeting, consideration was given,
among other matters, to the implications of
IATA’s commitment to reach Net Zero carbon
emissions by 2050 on the Group’s Aerospace
Division, including the role of electrification
and hydrogen in sustainable aviation. The
Board also considered regulatory
developments affecting its Flexonics Division,
the progress of transition to electric vehicles
across the world, and the role of nuclear
power as an important contributor to
achieving Net Zero.
Management
• Climate-related data – the Group Director of
HSE & Sustainability oversees collection and
monitoring of the Company’s data related to
Scope 1, 2 and 3 emissions, waste recycling
Senior’s climate-related governance framework
Group Chief Executive Officer
Ultimate responsibility for management of
climate-related risks and opportunities
HSE Committee
Monitoring progress
onGHGemissions
Executive Committee
Leading the Group’s efforts
onclimatechange
Board of Directors
Oversight of climate-related matters
and water consumption. Responsibility for
carbon emission management and the
development of the Energy Efficiency
programme also resides with this position.
• Divisional responsibility over climate-
related matters – Chief Executives of the
Aerospace and the Flexonics Divisions have
direct responsibility for ensuring that their
Divisions meet the Group’s carbon reduction
targets and supplier engagement
responsibilities. They monitor customer
demands, and are best placed to ensure that
these requirements are reflected in future
programmes as customers transition to
low-carbon products.
• Health, Safety and Environment (HSE)
Committee – the HSE Committee, chaired
by the Group Chief Executive Officer,
monitors the Group’s progress on its
environmental targets, including Scope 1, 2
and 3 emissions.
• Double Materiality Assessment (DMA) –
the Executive Committee approved
conducting the DMA, with some members
of the Committee participating in the
internal stakeholder engagement process.
Having reviewed the results of the DMA,
the Committee agreed material sustainability
(including climate-related) issues most
critical to the Group based on financial
and impact materiality.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202420
STRATEGIC
REPORT
Strategy
Climate-related risks and opportunities
identified over the short, medium and
long term
In 2024, we assessed climate-related risks,
impacts and opportunities at a Group-level
using the double materiality approach
described on page 12.
The approach, aligned to the Corporate
Sustainability Reporting Directive (CSRD),
ensures a more robust risk management
process – it considers how climate change
affects Senior (financial materiality), as
well as the impact that Senior’s activities
and operations have on the environment
(impact materiality).
The risks, impacts and opportunities, shown
in the table below, are relevant to all of the
Group’s market sectors.
In line with the CSRD reporting framework,
we adopted the following time horizons:
Rating Range
S
Short-term 1 year
M
Medium-term 1–5 years
L
Long-term >5 years
Strategy
Climate change mitigation
Decarbonisation of own operations and the supply chain. This includes the purchase and/ or generation of renewable energy, the
achievement of Senior’s science-based targets, effective long-term planning for climate transition and managing costs associated
with decarbonisation.
Impact, risk or
opportunity Description Value chain
Time
horizon
Negative Impact Negative impact on climate due to greenhouse gas (GHG) emissions arising from
Senior's own operations, the supply chain and through product use.
Across the value chain
M L
Positive Impact Senior's commitment to reach Net Zero GHG across the supply chain by 2040 will limit
the Group’s negative impact on climate. The Group is on track to achieve its Near-Term
SBTi-approved Scope 1, 2 and 3 targets by the end of 2025.
Across the value chain
L
Financial Risk Customers’ shift to low-emission products and activism and protests against aviation,
land vehicles and oil and gas may reduce demand for some of Senior’s products. Similarly,
activism and protests against aviation, land vehicles and oil and gas might become a threat
to the reputation of Senior. This is mitigated by the fact that Senior’s products help reduce
emissions for both conventional applications and clean energy applications.
Across the value chain
M L
Financial
Opportunity
Changing customer/consumer behaviour or preferences may increase demand for Senior’s
products which support the transition to a low-carbon economy.
Across the value chain
M L
Sustainable product design and lifecycle management
The incorporation of sustainable attributes into the product design phase with specific considerations for the product/service lifecycle.
This includes changes to reduce the carbon impacts of products and services.
Impact, risk or
opportunity Description Value chain
Time
horizon
Positive Impact The expansion of low-emission products will support customers, who operate in the
hardest-to-decarbonise sectors, to transition to low-carbon and clean energy solutions,
reducing their negative impacts on climate.
Across the value chain
M L
Responsible material sourcing and efficiency
The processes to ensure sustainable and traceable sourcing of raw materials, and the resilience of materials supply chains to impacts
of climate change.
Impact, risk or
opportunity Description Value chain
Time
horizon
Negative Impact The sourcing of finite materials (e.g. metals) may result in negative environmental impacts,
particularly in countries with poorer environmental controls. This is mitigated by Senior’s
Sustainable Sourcing Policy.
Value chain (upstream)
S M L
Innovation – R&D and product innovation
The R&D, investment and innovation of more sustainable products, services and solutions.
Impact, risk or
opportunity Description Value chain
Time
horizon
Positive Impact A switch to low-emission technology will reduce the amount of GHGs emitted into the
atmosphere across the whole value chain, reducing negative impacts on climate.
Across the value chain
M L
The WWF Water Risk Filter analysis conducted in
2022 indicated that nine of our operating businesses
were in areas of potential water scarcity. These are
our businesses in India, South Africa and California
(Senior Aerospace SSP, Senior Aerospace Jet
Products, Senior Aerospace Ketema, Senior
Aerospace Steico Industries and Senior Aerospace
Spencer), as well as our Flexonics and Aerospace
businesses in Mexico. To date, Senior has not been
subject to conditions where water scarcity led to
interruptions in operations, although we are aware that
severe localised water shortages can lead to potential
operational interruption and interrupted supply of
products to our customers. We continue our focus
on opportunities to reduce overall water consumption
in each of these businesses.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 21
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Impact of climate-related risks and opportunities on the organisation’s businesses,
strategy and financial planning
Products and services
Regulation and growing awareness of climate change are influencing
customer preferences and increasing demand for energy efficient
transportation, such as hybrid, fully electric and hydrogen powered
vehicles. Senior is actively involved in this sector, offering innovative
thermal management solutions for large battery packs to Land Vehicle
markets (for public transport vehicles, commercial vehicles and some
passenger vehicles). The Aerospace market is equally focused on
energy efficiency, and Senior is working directly with several OEMs in
areas such as the handling of sustainable fuel and the safety-critical
conveyance of hydrogen within an aircraft. The Company has an
opportunity to lead in this technology, leveraging its expertise in
designing products with class-leading technical performance, which
has the potential to increase sales in this growing market sector.
Examples of this include battery cooling, electronics cooling, electric
vehicle fluid handling and flex for vehicle range extenders, fluid
conveyance hoses and tubes for hydrogen fuel cells.
Our engineering experts are working on exhaust gas recirculation
(“EGR”) systems with customers, addressing requirements that are
driven by performance (lower carbon emissions) and the evolving
legislation. Legislation drives lower NOx allowances for heavy-duty
diesel engines. We recognise that internal combustion engines will
be in operation for some time to come, that we need to keep on
improving their energy efficiency, and that this will also contribute
to improving transportation efficiency, alongside the roll-out of
electric vehicles.
We continue to explore the use of specialised additive manufacturing
equipment in some of our Aerospace businesses with a dual
purpose: to develop and manufacture lighter metallic components,
thereby reducing weight and, ultimately, saving fuel and reducing
carbon emissions during flight. At the same time, lighter components
will reduce waste in the production process, thereby decreasing the
amount of material required (reducing our Scope 3 emissions) and
the associated material cost.
Read more on pages 18 to 19 and 36 to 39
Operations and supply chain
Climate change considerations are essential to energy efficiency and
cost reduction strategies across Senior’s operating businesses.
Transitioning to renewable energy sources and, subsequently
reducing Scope 1 and 2 emissions, has been an integral part of the
Group’s sustainability efforts for several years. Further information
can be found on pages 15 to 17. We continued focusing on energy-
efficient initiatives, such as improving building insulation, upgrading
energy efficient lighting, installation of heat recovery systems and
upgrading HVAC systems.
In 2024, we continued our collaboration with suppliers through the
Carbon Disclosure Project (CDP), encouraging them to disclose their
environmental data. Ninety-one of our key suppliers have declared
they have set carbon reduction targets. In addition, Senior updated
its Sustainable Sourcing Policy defining expectations for its suppliers
to set and make progress towards their own science-based targets
and environmental preservation goals.
Each site within the Group has a scenario-based Business Continuity
Plan which is tested annually. This ensures that mitigation and
adaptation measures related to the physical risks of climate change
are addressed effectively. Further information on how we manage
the risk of climate change can be found on page 55.
Read more on pages 15 to 17
SUSTAINABILITY
TASK FORCE ON CLIMATE-RELATED
FINANCIALDISCLOSURES
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202422
STRATEGIC
REPORT
Impact of climate-related risks and opportunities on the organisation’s businesses,
strategy and financial planning continued
Investment in research and development
Climate change is a fundamental element of the Group’s business
strategy. Senior’s products and services help our customers reduce
carbon emissions in Aerospace, from industrial process plants and
from land vehicles. When we consider R&D spend and expansion,
we assess sustainability of our products in terms of supporting
our customers’ aims to reduce energy consumption and carbon.
For example, the development of new thermal management
technology (e.g. components for fuel cells, advanced heat
exchanger solutions, using laser welding for battery cooling plates)
presents an opportunity for Senior to become a leader in the
specialised applications of off-road vehicles, large trucks and
aerospace, where reduced weight and optimum working
temperature are critically important.
Access to capital
Sustainability remains an important factor for our investors and
lenders when allocating capital. Senior’s focus on sustainability
leadership in its own operations and that of its suppliers, as well as
supporting customers in their transition journey to Net Zero, will help
Senior’s financing needs in the future whether raising debt or equity.
The Group’s main syndicated Revolving Credit Facility of £115m is a
sustainability-linked loan with Key Performance Indicators on carbon
emission reduction and waste recycling rates.
Acquisitions or divestments
Portfolio optimisation is a central pillar of our strategy. Whenever we
analyse companies as potential acquisition targets, we carry out an
assessment of that company’s ESG credentials, including how its
products will enhance the sustainability of our own portfolio, whether
that company is committed to decarbonisation and has stated Net
Zero targets, and how much that company is investing in improving
the local communities in which it operates. Should we reach the
stage of conducting due diligence on an acquisition target, we will
conduct a full ESG analysis, potentially with external professional
support. In terms of strategic fit, we will also assess the future
markets of the company’s products to ensure alignment with our
own ambition of supporting decarbonisation in difficult markets,
like Aerospace, Land Vehicle and Oil & Gas.
Financial planning process
The Group’s operating businesses have maintained their focus on
internal efficiencies, particularly associated with Scope 1 and 2
emissions and made significant improvements as part of Senior’s
energy sustainability priorities, as described on page 15.
The Group monitors carefully the impact on demand for its products
related to the transition to a low-carbon economy. For example,
although some of Senior’s operating businesses are seeing a
reduced demand as a result of the decreasing market trend for diesel
passenger vehicles in Europe, the overall effect in the Group is not
significant as other product lines are filling demand. We are tailoring
our financial planning to reflect these market changes. At the same
time, the Group considers opportunities in new technologies that
may require investment.
We consider climate change when assessing liabilities in the Group’s
operating businesses. The need to insure fixed assets and the
adoption of safety measures to protect staff in areas subject to
severe weather are current examples.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 23
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Resilience statement
Having established our Long-Term Net Zero
Targets, aligned to 1.5ºC for all Scopes,
we are taking proactive steps to ensure Senior’s
operations remain resilient to the effects of
transitional risks associated with scenarios
1 and 2. As part of our Energy Hierarchy, we
shall continue prioritising energy efficiency
initiatives and the use of renewable energy.
We actively engage with our suppliers, requiring
them to set and make progress towards their
own science-based targets and environmental
preservation goals, and to integrate sustainable
practices into their operations. This will help
create a stronger and more resilient supply chain
that is aligned to Senior’s sustainability goals.
The Group’s focus on innovation and strong
relationships with customers means we are well
positioned to maximise opportunities offered
by smooth and disruptive transition scenarios.
We are proactively assessing the way climate
change affects market demand for our products
as part of our annual strategic meetings.
The physical impacts of climate change
associated with scenario 3 could be significant.
The Group’s business continuity plans play an
important role in maintaining resilience against
the potential physical impacts of climate change.
By identifying potential vulnerabilities and
implementing adaptive measures, the operating
businesses will be well placed to maintain their
functions, minimise operational disruptions and
ensure long-term stability.
Scenario 1 (<2ºC) Scenario 2 (<2ºC) Scenario 3 (>3ºC)
Early policy action:
smooth transition
Late policy action:
disruptive transition
No policy action:
business as usual
• Decisive carbon action to reduce global
emissions starts in 2021.
• Carbon taxes and other policies intensify
gradually over the scenario horizon.
• Global warming is limited to 1.8ºC by
2050 compared to pre-industrial levels.
• Limited physical risks.
• Delay in implementing the policy required
to reduce global emissions by 10 years.
• Starting in 2031, significant and rapid
policy action causing drastic bending of
emissions trajectory globally.
• Global warming is limited to 1.8ºC by
2050 compared to pre-industrial levels.
• Limited physical risks.
• Governments fail to introduce further
policies to address climate change
beyond those already implemented.
• Increase in global temperatures
reach 3.3ºC by 2050 compared
to pre-industrial levels.
• High physical risks.
Potential impact
Policy changes start to accelerate, and
consumer and investor preferences evolve
rapidly to facilitate decarbonisation.
In the short and medium term, Senior
needs to ensure that its investment
decisions are consistent with its science-
based targets and deliver expected results.
In the long term, it is important to keep
pace with changing market demand for
low-emission products and remain
consistent between Senior’s public
commitments and market expectations.
Potential impact
A sudden increase in the intensity of
climate policy in 2031, following an initial
period which is characterised by insufficient
or ineffective emission reducing policies.
Senior needs to ensure that it takes action
over this time period to avoid disruption in
the long term as mature economies make
rapid strides to cut emissions.
Potential impact
Absence of transition policies result in
a growing concentration of greenhouse
gas emissions in the atmosphere.
Increased exposure to heatwaves, tropical
cyclones and droughts may increasingly
provide challenge for some of Senior’s sites
and supply chains.
With less policy action and investment
driving forward technology development,
the costs of transitioning to the new
technologies may be higher, the likelihood
of successful implementation and the
relative rewards for the investment may
be lower.
Opportunities
The ability to maximise returns on new
investments in the long term, once
transition has occurred and markets
have stabilised.
Opportunities
Early investment can set the Group up to be
ready for the swift changes to the disrupted
economy after 2030.
Opportunities may materialise over the long
term, due to the late policy action and the
abrupt transition to a low-carbon economy.
Opportunities
The Group’s continued investments and its
ability to diversify business activities can
help Senior be more resilient to changes
in the markets and adapt to the impacts
of climate change.
Resilience of the organisation’s
strategy with reference to three
climate-related scenarios, including
a 2ºC or lower scenario
In 2021, we carried out scenario analysis to
understand the potential impact of climate
change on the Group’s operations. We selected
the three climate scenarios produced by the
Bank of England because:
• they meet TCFD recommendations to assess
business resilience at different climate-related
scenarios, including a 2ºC or lower scenario;
• these scenarios are used by the Bank of
England to explore resilience of the UK
financial system to climate change;
• the scenarios are modelled to a 30-year
timespan, out to 2050 to align to the Paris
Agreement and other Net Zero 2050 targets;
• they consider the macroeconomic impacts
with more granularity and within a more
applicable business context than climate
scenarios based on temperature increases;
and
• multiple high transition scenarios provide
diversity in stress tests.
Further information on the assumptions
and parameters used in the scenarios
can be found on the Company’s website.
SUSTAINABILITY
TASK FORCE ON CLIMATE-RELATED
FINANCIALDISCLOSURES
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202424
STRATEGIC
REPORT
Metrics used to assess climate-related
risks and opportunities
Targets used to manage climate-related
risks and opportunities and performance
against targets
The table below illustrates targets and metrics
we have selected to measure our climate-
related risks and opportunities. We have chosen
these metrics because we consider that they
are relevant to the climate-related risks and
opportunities facing Senior and regulatory and
stakeholder expectations. Our targets, which are
aligned to the Paris Agreement and the UK’s Net
Zero Strategy, demonstrate our commitment to
reduce the GHG emissions of Senior’s
operational activities, as well as addressing
indirect emissions within our value chain. Our
near-term Scope 1, 2 and 3 targets were verified
by SBTi in 2021. In 2023, the SBTi approved our
Long-Term Net Zero climate targets for Scope 1,
2 and 3 emissions. The targets, to be achieved
by 2040, aligned to 1.5ºC for all Scopes.
We continue to develop our high-level plan to
reduce our emissions in line with our 2040 Net
Zero targets against our 2018 base year. In
2024, we have worked to refine our Scope 3
calculation methodology, and in 2025 we will
undertake further work to produce a more
granular transition plan.
In 2024, the Remuneration Committee aligned
remuneration for the executive Directors and
senior management to non-financial
performance metrics and agreed that 10% of
the 2024 bonus potential would be determined
by a target related to absolute reduction in
Scope 1 and 2 emissions over the one-year
performance period. The set target is consistent
with the Group’s SBTi-validated target of a 30%
reduction in these emissions by 2025 (from a
2018 base year).
Climate-related target
Target
year
Base
year Progress in 2024 Metric Link to material climate risk
Reduce absolute Scope 1and 2 GHG emissions
by 30%
2025 2018 33.4% decrease
(2023 – 29.5% decrease)
Tonnes CO
2
e
Increased pricing of GHG emissions/
cost of carbon offset
Increased stakeholder concern or negative
stakeholder feedback/stigmatisation of sector
For Scope 3 GHG emissions, 82% of suppliers
by spend to have climate science-based targets
2025 2018 91
(2023 - not determined)
Number of
suppliers with
science-based
targets.
Reduce absolute Scope 1, 2 and 3 emissions by 90%
2040 2018 Reporting to start in 2026
Tonnes CO
2
e
Achieve a recycling rateof 95%
2025 91.1%
(2023 – 95.1%)
% of waste
recycled
Increased stakeholder concern or negative
stakeholder feedback/stigmatisation of sector
Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas emissions
The details of our Scope 1, 2 and 3 emissions, in compliance with SECR, can be found on page 16.
Risk management
Metrics and targets
The organisation’s processes for
identifying, assessing and managing
climate-related risks
We identify, assess and manage the Group’s
risks using the risk management process shown
on page 52. The Committee of Sponsoring
Organisations of the Treadway Commission
(“COSO”) enterprise risk management
integrated framework is used as the foundation
of the Group’s risk management process,
tailored to reflect Senior’s culture and Values.
The process includes identification of relevant
risks, risk scoring, development and assignment
of response actions, monitoring the
effectiveness of key mitigating controls and
reporting of the risk and assurance environment
to the Executive Committee, the Audit
Committee and the Board.
In response to the upcoming CSRD reporting
obligations, we revised our annual assessment
of Group-level sustainability risks, impacts and
opportunities (including climate-related) using
the DMA described on page 13. Climate-related
risks, impacts and opportunities were identified
based on landscape review of our internal
documents, industry bodies and regulators,
investor ratings, customers, peers and sector
reports. Further discussions were held with
Senior’s internal and external stakeholders to
gain their perspective on which topics they
considered to be potentially material, resulting in
a high-level, quantifiable short list of topics. Each
short-listed topic arising over the short, medium
and long term was scored based on impact and
financial materiality, as described below:
• Impact materiality – each topic was
assessed according to the ESRS and the
European Financial Reporting Advisory Group
(EFRAG) double materiality guidance against
three parameters to determine its severity:
scale, scope and remediability.
• Financial materiality – the calculation for
financial materiality considered how each
topic might affect the Group financially in
terms of revenues, profit, cost of capital and
asset value. This was aligned to Senior’s
existing risk management process, where
scoring was based on the likelihood of a risk,
as well as the magnitude of the affect in
terms of operating profit and revenue.
For our 2024 DMA, short-listed sustainability
topics were assessed on inherent basis. The
results of the DMA were reviewed by the
Executive Committee and the Board.
In 2023, Senior Flexonics Bartlett was selected
as one of the operating businesses to pilot an
assessment of climate-related risks and
opportunities. The site completed its initial
assessment in 2024, and the results generally
aligned with the Group-level climate-related
risks and opportunities. Feedback gathered from
this pilot assessment will be considered as the
Group develops its operating business-level
climate-related risks and opportunities
assessment programme for the future.
Mitigating action plans, including a detailed
description of the response action, assigned
to the members of the Executive Committee
and other senior members of staff, are
developed for all material climate-related risks.
Action plan progress is tracked to ensure timely
implementation. The overall effectiveness of the
risk control environment is closely monitored
through assurance and audit activities to assess
if critical risks are being mitigated within the
Group’s risk tolerance.
Integration of processes for identifying,
assessing, and managing climate-related
risks into the organisation’s overall risk
management framework
Climate-related risks and impacts form part of
the Group’s risk register and will be subject to
an annual review by the Executive Committee
and the Board.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 2024 25
STRATEGIC
REPORT GOVERNANCE
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
Safety at Senior
At Senior, we foster a global safety culture that
begins with senior leadership and permeates all
levels of our global operations.
This year, through sustained effort, we
achieved a reduction of over 40% in our
Lost Time Injury and Illness Rate, building
on an already strong performance.
Our safety initiatives are driven by internal risk
management Standards and critical
controls, which include:
• 22 specific prevention and risk
management standards addressing
the core hazards of our business;
• Ten Golden Rules for Safety; and
• a Behavioural Safety Standard designed
to prevent injury by supporting a positive
safety culture.
Each standard is supported by critical controls
that are carefully implemented and monitored
to prevent fatalities and reduce the risk of
serious injuries or incidents.
Our ongoing safety training and
communication form the backbone of our
commitment, empowering employees and
contractors to proactively prevent incidents
that could result in injuries, illnesses,
or environmental damage.
In 2024, we continued a thorough review and
update of our safety standards and critical
controls, building on the progress initiated in
2023. These updates focused on making the
standards more accessible and were reinforced
with new posters and videos to enhance
understanding and practical application across
our sites.
Through these collective efforts, we remain
steadfast in our goal to safeguard our people,
operations, and environment.
Health and Safety
Injury prevention at Senior
At Senior, safety extends beyond merely
avoiding incidents it encompasses a proactive
approach to implementing effective controls
that prevent and mitigate potential outcomes.
Our safety teams continuously analyse trends
in incidents and injuries across our global
operations, identifying location-specific or
role-specific concerns. When necessary, they
develop injury reduction plans tailored to
address these issues. These plans incorporate:
• safety controls to mitigate risks;
• targeted training to enhance awareness
and skills;
• work design adjustments to promote
safer practices;
• specialised programmes to address
recurring challenges; and
• engagement campaigns to reinforce the
importance of safety at all levels.
Through these initiatives, we remain dedicated
to fostering a safer workplace for all visitors to
our sites.
Contractor safety
At Senior, our safety commitment extends to
everyone on-site, including temporary workers,
contractors, and on site visitors. We have
established contractor-specific safety
programmes with tailored requirements and
rigorous prequalification processes to uphold
the highest standards of protection.
Our contractor management procedures
require all personnel to complete a
comprehensive onboarding process before
commencing work. This ensures that everyone
on site is informed about safety protocols,
understands potential hazards, and is equipped
to work safely.
These measures reflect our unwavering
dedication to safeguarding every individual
on site, ensuring they leave the workplace
as safely as they arrived.
2024 injury performance highlights
In 2024, we made significant strides in
improving workplace safety. Our Lost Time
Injury and Illness Rate (LTIR) decreased to 0.19,
marking a 41% improvement from the 2023 rate
of 0.32. Additionally, our Total Recordable Injury
and Illness Rate (TRIR) which accounts for lost
time, job transfers, and minor medical
treatments remained stable at 0.63.
In 2024, there were no work-related fatalities
involving employees or contractors and no major
injuries classified as serious or life changing.
SUSTAINABILITY
SOCIAL
In 2024
Lost Time injury and illness Rate
(per 100 employees)
0.19
2023 – 0.32
41% reduction
Total Recordable Injury
and Illness Rate
(per 100 employees)
0.63
2023 – 0.63
Senior Group Injury rates
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2019 2021 2022 20242020
Lost Time Injury Illness Rate
0.44
1.6 9
0.32
1.0 9
1.17
0.32
0.38
0.93
0.63
0.32
0.63
0.19
2023
Lost Time Injury and Illness Rate (“LTIIR”), defined
as the number of work-related lost time injury and
illness cases (losing more than one complete shift)
per 100 employees.
The Total Recordable Injury Illness Rate is defined as
the number of cases of lost workdays, restricted
work activities, job transfers, medical care beyond
first aid and work-related illnesses expressed per
100 employees.
Safety initiatives in 2024
• A new behavioural safety programme
for our supervisors was rolled out.
• A new Senior Safety Standard covering
ergonomic assessments was introduced.
• Additional expert assistance was
provided to those businesses with the
most improvement opportunities.
SENIOR PLC ANNUAL REPORT AND ACCOUNTS 202426
STRATEGIC
REPORT
Case study
SUPERVISOR BEHAVIOURAL
SAFETY PROGRAMME
In 2024, we launched a safety programme
specifically designed for our supervisory-level
employees. This initiative is built around our
Senior Safety Behaviour Standard and
delivered through face-to-face workshop
sessions at our business sites. The
programme focuses on coaching supervisors
to identify and reward positive safety
behaviours while emphasising the importance
of fostering a proactive safety culture.
Developed in Q2 2024, the programme began
rolling out in Q3, with additional workshops
planned for 2025 to further embed these
practices across our operations.
Image: Nick DeBruyne, Group Safety, trains supervisors in
Senior Mexico.
Our core Values underpin our culture
At Senior we are committed to ensuring equal
opportunities, fairness of treatment, work-life
balance, and the elimination of all forms of
discrimination in the workplace for employees
and job applicants. Senior’s leaders aim to
create a working environment in which everyone
can thrive, achieve their full potential, and
contribute to the success of Senior, and where
all decisions are based on skills and merit.
We recognise that good business decisions
are based on gathering different perspectives.
We encourage individuals to speak freely,
respecting alternative views and cultures.
Equality, diversity and inclusion
Senior promotes a culture and working
environment in which everyone can make
the best use of their skills, free from
discrimination or harassment. Our Values define
how we treat people, and in our 2024 Global
Employee Opinion Survey we saw improved
scores for all of our Values including respect and
trust. We expect employees to treat everyone
they meet in the course of business with
respect and dignity, reinforcing our commitment
to be open and straightforward with colleagues,
customers, suppliers and other stakeholders.
As well as our Vaues, the right behaviours are
reinforced in our people policies and processes,
for example, talent acquisition, succession
planning, promotions and learning and
development opportunities.
In 2024, we updated our Code of Conduct
with every employee receiving a personal copy.
The Code has specific sections explaining
how we value diversity and inclusion and
emphasising that we are committed to
preventing discrimination, harassment and
bullying. The Code of Conduct and Human
Rights policy are translated into our designated
languages, and we included a module on
Unconscious Bias in the 2024 Code of
Conduct training.
The Executive Committee and business leaders
continue to focus on providing a diverse and
inclusive workplace. Gender diversity receives
much attention in Senior, and we believe that
there remains an opportunity for further
improvement, particularly in our operating
businesses general management. To support
our objective to increase the number of women
in these operational leadership roles we have
launched a Women’s Network, creating a
steering committee to lead the network and
identifying an executive sponsor. We are
confident that the network will provide a forum
to empower individuals as it will bring women
across Senior together to discuss ideas and
shared experiences in a supportive and
productive environment, creating strong
peer-to-peer support and confidence, as well
as providing an impartial and open forum to
encourage and inspire.
The table below shows the Group’s Board of
Directors, Executive Committee and operational
senior management in 2024 by gender.
Male Female
All employees 78% 22%
Senior managers who report
directly to the Executive
Committee
80% 20%
Executive Committee 62% 38%
Board 44% 56%
Senior is an equal opportunities employer. We
strive to reflect the diversity of the communities
we work in at all levels across our workforce.
The Board seeks to ensure a diverse workforce
that supports all employees, irrespective of age,
disability, gender reassignment, marriage and
civil partnership, race, religion or belief, gender
or sexual orientation. We will not tolerate any
form of unlawful discrimination against our
colleagues, or any third parties be they potential
employees, customers, subcontractors,
suppliers or members of the public.
In accordance with the Equality Act 2010
(Gender Pay Gap Information) Regulations 2017,
Senior publishes its Gender Pay Gap Report,
as required on the Company’s website.
Jane Johnston | Group HR Director
“At Senior we promote an
inclusive culture where
individuals can thrive. We are
committed to providing equal
opportunities for all
and value diversity.”
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People and culture
In our autonomous and collaborative Business
Model, operating business leaders are
empowered and accountable for setting the
tone for their operations, guided by our Values.
In May 2024, we ran our Global Employee
Opinion Survey. We partner with Workday,
a market leading provider to run the survey
and deliver it in multiple languages. 85% of our
employees completed the survey, which for
a manufacturing business where around
two-thirds of our employees do not have ready
access to a computer, is an excellent response
rate. The survey provided a wealth of valuable
information in relation to our culture. Following
the survey, operating business leaders worked
with their HR leads to understand what they do
well and areas for improvement.
The overall engagement score increased from
7.2 in October 2022 to 7.5 in May 2024. The
survey identifies “Drivers” which are key areas
measured in the survey that drive engagement.
In 2024, the Drivers that were most improved
were Reward, Strategy, and Workload. The
scores improved in all areas other than Goal
Setting and Freedom of Opinions, which stayed
the same as the prior survey, and Environment
which showed a small decline. This decline in
the Environment score was driven by a
reduction in the score for Informal Space and
around half of our businesses have identified
working environment as an area to take further
action in 2024/25. Every operating business
developed action plans based on the survey
feedback and shared them with their teams.
In 2024, we also asked employees “How do
you feel about Senior’s Purpose which is to
‘Help engineer the transition to a sustainable
world for the benefit of all our stakeholders’?”.
In the main, our employees were positive about
Senior’s Purpose with comments such as
“I feel proud to be part of an organisation that
prioritises engineering”, “it’s inspiring to be
part of an organisation that prioritises
sustainability” and “I am proud to be part
of this”. However, it was clear that some
employees did not see themselves as
stakeholders highlighting that additional
communication around this would be beneficial.
We remain focused on recruiting and retaining
talent to sustain business resource requirements
and growth. In order to meet our short and
long-term talent requirements, we have
continued to build strong relationships with
local technical colleges, universities and
education establishments, as well as partnering
with recruitment firms. We are extending our
use of job boards and other approaches to
advertising and attracting applicants to build a
strong talent pipeline. We have completed the
roll-out of Recruit, our talent acquisition system,
to all our UK and US businesses, thereby
enhancing the candidate experience. The job
market remains competitive for certain
geographies and skills, and we have worked
hard to secure the right talent.
Talent acquisition and retention is supported by
our ongoing work to enhance our employee
proposition. Informed by our employee
engagement survey feedback, and other
feedback mechanisms, our actions are making
Senior an even more attractive place to work.
To that end many of our businesses have
actively participated in career fairs and other
activities that highlight the career opportunities
available, and on a broader level, inspiring the
engineers of the future. Examples of the steps
we have taken to enhance our employee value
proposition include flexible working, promoting
our employee assistance programmes and
introducing other support mechanisms such
as mental health first aiders. We continue to
be vigilant regarding rates of pay and the cost
of living, ensuring we are paying people fairly
for the work they do, and benchmarking pay
rates in local markets, making adjustments
if appropriate.
‘Perform’, our Performance and Development
system provides a framework for managers and
team members to discuss feedback,
performance,behaviours linked directly to our
Values, set clear objectives, both for business
and personal development and create
development plans. In order to enable
individuals to fulfil their potential, learning and
development needs are assessed during
individual performance reviews and the output
of these discussions feed into our succession
planning process. For shopfloor operations
teams, operating businesses undertake
performance reviews, primarily paper based, to
enable employees to discuss their performance,
behaviours and development plans. The
Executive Committee scrutinises succession
plans and talent pipeline, identifying successors
or interim cover for key roles across the Group.
The Executive Committee also focuses on
functional capability, for example engineering,
as well as operational leadership. The Board
reviews the succession plans for the Executive
team and their direct reports on a regular basis,
with a special emphasis on encouraging
diversity and inclusion.
Training and development remained a priority in
2024. Business leaders work with their teams
and HR to plan and design training to meet
the business needs of their operation. In our
autonomous and collaborative operating model,
operating businesses conduct their own
training needs analysis and learning and
development plans, including technical, on the
job and skills training. We continue to view the
provision of development opportunities and
training across the Group as vital to our success.
As well as partnering with external providers to
build our bench strength and support
succession planning, every operation has a
comprehensive offering of internal training.
Examples of this include training activities such
as Toolbox talks; “lunch and learns”; technical
training; operational excellence, including lean
manufacturing; as well as sponsoring individuals
undertaking external and more academically
orientated courses and training, for example
engineering degree courses.
Our leadership programme, Leading for
Excellence continues to receive positive
feedback, meeting the development needs of
our future leaders. The programme runs over six
months and is a mix of virtual and face-to-face
sessions as well as one-to-one coaching. The
programme culminates in the delegates
presenting business projects they have worked
on to hone their skills, embed their learning and
return real business benefits through delivering
a key project for their operating business.
‘Learn’, our best-in-class eLearning platform
allows individuals to self-select training as well
as being directed to specific content, for
example following a personal development
discussion. We have continued to enhance the
content in Learn. The catalogue covers areas
such as IT skills, Leadership and Management,
Project Management, Health & Wellbeing
and Communication skills, available in all our
languages. Learn also enables us to deliver our
Code of Conduct training and other compliance
training. In 2024, we launched Trade
Compliance training to US employees, two
cyber security courses, one for all IS and IT
teams and one for selected business leaders,
and an AI training course which all employees
with emails were asked to complete. We also
used the platform to launch the in-house
developed Preventing Workplace Violence
training to meet the new California legislative
requirements and, following the new duty under
the Equality Act 2010 in the UK, all UK
employees were issued with Preventing Sexual
Harassment training.
As in the Global Employee Opinion Survey at
the end of 2022, peer relationships remained a
strength in the 2024 survey with a culture where
colleagues help and support each other. We
have an open and honest culture of respect and
trust, and people value teamwork and the teams
they work in and with. Our businesses have
onboarding processes to ensure that new team
members feel welcome and well informed,
enabling them to become valued team
members, and in the opinion survey, the
engagement score for employees with less than
one year’s service was higher than the overall
Senior score. A significant proportion of learning
is on the job and our culture of sharing
knowledge and supporting colleagues remains
central to developing technical competencies in
our operations.
The culture across Senior is to build on our
successes and learn from our mistakes. We say
thank you, with our businesses holding regular
employee recognition and team building events.
As well as feedback received via the opinion
survey, we encourage open and honest
feedback with potential issues or concerns
being raised with local management. The
feedback from the survey was consistent with
this and confirms that employees believe that
people are treated fairly and that we do not
tolerate misconduct. As outlined in our Values
and Code of Conduct, we work together with
mutual trust and respect and operate with
integrity and in an ethical manner. On the rare
occasion when an employee or employees have
a concern that cannot be resolved by local
management, employees are encouraged to
raise their concerns through our third-party
whistle-blowing service, EthicsPoint. All
concerns raised are investigated and learning
points are actioned by local leadership teams
as appropriate.
SUSTAINABILITY SOCIAL
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Employee wellbeing
Colleagues at Senior Aerospace Mexico enjoy a family day,
touring the facility and learning about the Company.
Overall engagement score
(of a max of 10)
7.5
Employee participation
85%
Senior global employee opinion survey results
Health and Wellbeing Values
1
Safety
2
Respect & Trust
3
Integrity
4
Excellence
5
Customer Focus
6
Accountability
1
Social Wellbeing
2
Physical Wellbeing
3
Organisational
Support
4
Mental Wellbeing
Max Score: 10
1
2
34
5
6
Max Score: 10
1
23
4
Total comments
44,294
Health and Wellbeing score
(of a max of 10)
7.7
In addition to receiving feedback on how
engaged our employees feel we also asked a
series of specific Health and Wellbeing
questions in the Global Employee Opinion
Survey. The overall Health and Wellbeing score
improved by 0.2, taking it to 7.7. In all areas the
Health and Wellbeing scores improved.
However, the businesses have not been
complacent, and many have set actions to
further improve employee wellbeing. Examples
include monthly health drives, providing healthy
snacks, initiatives to improve muscular skeletal
wellness and subsidised gym memberships.
Across Senior we provide a range of wellbeing
support and education to employees as
appropriate to local needs. Many have
promoted specific health drives, for example,
menopause awareness, health checks, flu and
COVID vaccinations, and road safety education.
We have a number of individuals specially
trained to support colleagues with mental health
issues and employee assistance programmes in
many of our businesses. One of our larger
businesses has partnered with a counsellor who
attends the site on a regular basis to support
employees, as needed. Other examples of
how we support employees include offering
subscriptions to wellbeing apps, creating quiet
spaces for employees and start-of-shift exercise
stretching classes.
Financial wellness is also important for
wellbeing and businesses have provided
support in this area as well. In the UK we
continue to support employees with our
financial wellbeing service and operations have
invited benefits providers to our facilities to offer
information and answer employee’s questions.
Colleagues also enjoy participating in sports
activities, team building, sports events, and
family days such as the one held at Senior
Aerospace Mexico. During this event,
employees’ families visited our facility to
get a firsthand look at the environment,
tour the factory, interact with teams, and learn
about the processes that contribute to the
Company´s success.
We continue to launch new wellbeing content
on Learn and it goes without saying that we
remain vigilant regarding occupational health,
for example ergonomics, supported by our
Health and Safety frameworks.
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