Emissions inventory and assurance

Smiths assesses the GHG emissions associated with all its global operations for all four of its operational businesses and its central business. We have developed a GHG Inventory Management Plan (IMP) that outlines our methodology to ensure systematic and appropriate GHG inventory data collection, manipulation and management to produce a relevant, credible and transparent GHG inventory that will support our near-term and long-term goals. The IMP includes methods to estimate direct emissions from Smiths’ operations (Scope 1), indirect emissions from purchased energy (Scope 2), and value chain emissions (Scope 3).

During the year we migrated to the Watershed sustainability platform to increase the accuracy and robustness of our energy, GHG, water and waste reporting and audit practices, and enable more confident and effective modelling and targeted action. Both the FY2024 and FY2025 data presented in this report uses Watershed global standard methodology. To support implementation, we undertook a reconciliation process, validated by EY, to assess and investigate differences between our legacy methods and Watershed. Variations were primarily driven by methodology and emission factor differences between the two approaches. These changes in methodology have resulted in a restatement of FY2024 GHG data. Details of the changes in methodology can be found in the Smiths GHG Inventory Management Plan Summary FY2025

Watershed follows guidelines from the GHG Protocol Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Watershed’s methodologies and emission factors undergo updates and third-party review that results in a statement of limited assurance at least annually. These updates include incorporating newer data, improving the granularity of measurement approaches, and creating custom methodologies to assist customers with needs outside the standard sector guidance.

Assurance

Smiths is committed to a complete, accurate, and transparent inventory process and results. Smiths corrects identified data gaps and errors in a timely manner and makes required procedural changes as necessary to avoid repetition of errors. To this end, Smiths annually monitors whether updates to the referenced sources of emission factors have been issued and utilises any updated emission factors in all relevant inventory calculations.

Updated emission factors may trigger a base year adjustment. More information on the base year can be found in the IMP. The IMP is reviewed and updated annually during and after completion of the yearly emissions inventory to reflect any structural or methodological changes. In addition, Smiths’ divisions and Group review monthly reporting from Smiths sites looking for anomalies and errors.

We retain a third-party Assurance provider to review and assure our Scope 1, 2, and 3 GHG emissions inventories.

KPMG LLP were engaged by Smiths Group to provide limited assurance over the information below extracted from Smiths Annual Report and Accounts for FY2022, FY2023, FY2024 and FY2025 data in alignment with ISAE (UK) 3000 and ISAE 3410.