FirstGroup plc is pleased to announce that it has published its first Climate Transition Plan setting out our comprehensive strategy to meaningfully reduce emissions, manage climate-related risks, drive modal shift and contribute to growth and prosperity in the communities we serve.
Buses, coaches and trains contribute less than 5% of the UK’s transport emissions, compared to over 50% for cars. As one of the UK’s leading transport operators carrying around two million passengers a day, FirstGroup has a critical role to play in the climate transition.
The company has already received recognition of its commitments and progress to date, such as its inclusion in the most recent S&P Sustainability Yearbook and Clean2001 report as well as receiving MSCI2’s highest possible ESG rating of AAA.
In addition to the group’s commitment to reach net-zero emissions by 2050, it has a number of science-based group emissions targets validated by the Science Based Targets initiative (‘SBTi’) including:
- to reduce Scope 1 and 2 emissions by 63% by the end of FY 2035 from a FY 2020 base year;
- to achieve a 20% reduction in absolute Scope 3 emissions from fuel and energy-related activities; and
- to ensure 75% of our suppliers by emissions covering purchased goods and services and capital goods will have targets aligned to the science‑based approach by the end of FY 2028.
The Plan also highlights the progress the group has made to date and how it plans to build on this progress to achieve its goals. In First Bus these include:
- more than £300million already invested in its commercial bus fleet and infrastructure decarbonisation,with more than 650 zero emission vehicles now in service in its regional operations, and more than 300 in London;
- ten depots in the UK now electrified and electrification underway at a further five depots (c.30% of its depots) – it is the first UK bus operator to offer access to its electric vehicle charging infrastructure to other organisations that include DPD, Openreach, Centrica, eHGV and smaller bus operators;
- a commitment to continue its investment and use of innovative financing arrangements with an aim of achieving its target of a zero-emission fleet by 2035; and
- a proactive approach to make use of its expertise to work with its local partners to tackle congestion, connect communities, enhance customer experience and promote the bus as reliable, affordable, digitised and accessible.
First Rail’s two open access rail operations contributed just 1.3% of the group’s overall emissions footprint in FY 2024 thanks to Lumo’s fully electric and Hull Trains’ bi-mode fleet. The Plan also highlights how both operators are stimulating demand and driving modal shift:
- Lumo has carried almost four million passengers and successfully helped grow demand for all rail operators on the East Coast Mainline since its launch in October 2021, reporting seat capacity utilisation of 75% in FY 2024; and
- since its launch in 2000, Hull Trains has steadily increased capacity and thanks to a £60million investment in a new bi-mode fleet that entered service in 2019, emissions have been reduced by 65% and seat capacity utilisation grew to almost 70% in FY 2024, significantly above the industry average.
Looking ahead, the group is actively growing its open access rail business by adding capacity, enhancing timetables and applying for new and complementary routes. Recent developments include:
- the acquisition of track access rights for new services between London Paddington and Carmarthen and London Euston and Stirling; and
- the placement of a £500million order for a fleet of UK manufactured Hitachi trains to deliver the group’s growth plan, with an option to invest a further £460million should the applications the group submitted last year for new open access routes be successful.
For First Rail’s Department for Transport contracted Train Operating Companies (‘DfT TOCs’) the Plan
highlights:
- high level decarbonisation goals set by the DfT TOCs including reaching net-zero emissions by 2050 and removing diesel-only traction by 2040, aligning with the UK Government’s targets;
- First Rail-led trials of battery train technologies, low-carbon fuels, and collaboration with Network Rail to improve energy efficiency and expand track electrification; and
- initiatives to stimulate demand through enhanced customer service, flexible ticketing, the introduction of digital technologies, integrating routes with onward travel and improving accessibility.
The Climate Transition Plan is available on the group’s website.
Commenting, FirstGroup chief executive officer Graham Sutherland said: “As a leading public transport operator, we have a critical role to play in the climate transition. Investing in decarbonisation, enhancing our operations and driving modal shift reduces our environmental impact and supports growth and prosperity in the communities we serve. It is also a key driver of our commercial success.
"The publication of our first Climate Transition Plan setting out our structured and ambitious approach to achieve this is an important step in our sustainability journey.”