Environmental, Social  
& Governance Report 2022
 Our journey  
to zero.
As at 31st March 2022

Our journey to zero. Environmental, Social & Governance Report 2022
3
Welcome to Scottish Leather Group’s 19th Annual 
Report. Innovation has created the platform for  
us to present the world’s lowest carbon leather, 
sustainably manufactured, responsibly sourced,  
and offered in new and exciting formats to existing 
and new customers. 
Welcome.
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Scottish Leather Group
3
Our journey to zero. Environmental, Social & Governance Report 2022

Contents
Our Environmental, Social & Governance 
Report is in a revised format to follow the 
guidelines issued by the Global Reporting 
Initiative. This details our approach, 
commitments, and progress as we strive 
towards a more sustainable future.
Introduction
1.1	
About this report
08
1.2 	
Foreword
10
1.3	
Sustainability strategy  
& organisation
	
Overview
12
	
Our Commitments
13
	
Governance
14
	
Implementation
15
Materiality assessment
2.1	
Materiality matrix
18 
2.2	
Our approach for a  
more sustainable future
20 
2.3	
2021 Performance  
highlights
22 
2.4	
Progress against  
our goals
24
2.5	
Our milestones, awards  
and accreditations
26
People
3.1	
Management approach
30
3.2	
Health & Safety / 
Employee Wellbeing
32
3.3	
Inclusion & Diversity
34
3.4	
Talent & Lifelong Learning 
& craftsmanship
38
3.5	
Community Investment
40
Planet
4.1	
Management approach
44
4.2	
Measuring our product’s 
environmental impact
46
4.3	
Resource Stewardship
48
4.4	
Sustainable innovations, 
circularity of product  
design
52
How we do business
5.1	
Management approach
56
5.2	
Transparency & traceability 
of raw materials
58
5.3	
Product quality and 
customer experience
64
5.4	
Collaborating for  
greater impact
	
Alexander Dennis  
& StageCoach
68
	
Aston Martin
70
	
Polestar
72
Appendix
6.1	
Appendix
	
Streamlined Energy & 
Carbon Reporting (SECR) 76
	
Gender Pay Gap  
Statement 2021
80
 01
 02
 03
 04
 05
 06
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Our journey to zero. Environmental, Social & Governance Report 2022
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01
Section
1.1	
About this report
08
1.2 	
Foreword
10
1.3	
Sustainability strategy  
& organisation
	
Overview
12
	
Our Commitments
13
	
Governance
14
	
Implementation
15
Introduction
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Scottish Leather Group
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About this report 
1.2
This report details our approach, 
commitments, and progress as we strive 
towards a more sustainable future. Like 
all businesses, we remain on a journey  
to true net zero, and work is ongoing to 
reduce impact further.
We are committed to offering the world’s 
lowest carbon leather. We don’t see 
sustainable manufacturing as a set of 
limitations, but an opportunity. Continual 
innovation and sharing our practices  
and commitments is essential to achieve 
our goal: a zero-impact sustainable 
manufacturing platform for leather.
NOTE: BSI Assurance UK Ltd is independent to and has no financial interest in 
Scottish Leather Group. This verification opinion has been prepared for Scottish 
Leather Group only for the purposes of verifying its environmental and social 
data described in the scope above. It was not prepared for any other purpose.  
In making this Statement, BSI Assurance UK Ltd has assumed that all information 
provided to it by Scottish Leather Group is true, accurate and complete. BSI 
Assurance UK Ltd accepts no liability to any third party who places reliance on 
this Opinion Statement.
Auditor verification statement 
from BSI Assurance UK Ltd.
The activities reported by Scottish 
Leather Group have been independently 
verified by BSI over the course of an 
8-day audit.
The scope of this audit has been:
•	 Verification of environmental data 
(carbon, water, waste, energy,  
and greenhouse gas) for our UK 
operations in line with the guidance 
set out in ISO14016:2020, to a 
reasonable level of assurance  
and a materiality level of 5%.
•	 Verification of corporate social 
responsibility presence and claims 
via review of the Scottish Leather 
UNGC Gap Analysis Report –  
a robust, neutral, and universally 
recognised framework.
Verification has been achieved through 
mechanisms that included (a) evaluation 
of the monitoring and control systems 
through interviewing employees, 
observation, and inquiry and (b) 
verification of data through sampling 
recalculation, retracing, cross checking, 
and reconciliation.
“ We don’t see sustainable 
manufacturing as  
a set of limitations,  
but an opportunity.”
Introduction
Welcome to Scottish Leather  
Group’s 19th Annual Report. 
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With current projections of a 1.8-2.4C 
temperature rise by 2050, leadership 
from business is demanded and 
drastically required to halt this 
trajectory for our planet. We are very 
proud of the contribution we are making 
in leading our industry and creating 
a more sustainable future with our 
own delivery against commitments; 
working towards reducing impact 
below 1.5C. This report demonstrates 
the work so far and our ambitions.
Our long heritage and history have 
helped shape our values.
We are closing in on our two 2025 ‘zero’ 
targets. This year we confirmed full 
traceability of our raw materials with all 
our suppliers signatory to our code of 
conduct, providing transparency of our 
supply chain. We also engaged in broader 
customer feedback and materiality 
assessments which will help shape our 
approach in the future. Our main customer 
sector has seen a dynamic shift in recent 
years with the advent of low, or even 
zero, emission vehicles becoming reality. 
Our novel and unique low carbon 
offering, as detailed in this report and 
measured using Life Cycle Analysis, 
directly supports its transition to electric 
platforms and the reduction of 
embedded carbon in the supply chain. 
There is no doubt that all sectors are 
seeing a shift towards a sustainable 
future, captured under a variety of 
initiatives, all with the same aim.
We were delighted to be invited to 
speak on two platforms at COP26, in 
Glasgow, during November 2021, on our 
core activities, namely, the sustainable 
manufacture of leather and the application 
of our unique circular manufacturing 
process in support of the “UN Goal 13 
Agenda”. We were also privileged to be 
invited to join The Terra Carta event with 
HRH Prince Charles, The Prince of Wales. 
The Terra Carta seeks to engage industry 
to tackle the climate crisis.
We are pleased to reaffirm our 
commitment to the UN Global Compact. 
We anticipate a future where our traditions 
and values are maintained, with innovation 
and sustainability a pillar at the heart of 
our future for both Bridge of Weir Fine 
Automotive Leather and for Muirhead 
Fine Scottish Leather for Aviation, Mass 
Transit and Custom Projects.
It is our pride and our responsibility 
to produce this most beautiful, long 
lasting, and versatile leather in ways 
that do not use irreplaceable resources 
and do not damage the environment, 
either within our supply chain, or 
following its primary purpose.
We invite you to learn more about our 
progress, achievements, and aspirations 
and to continue following our journey.
Robbie Brown
Chairman
Scottish Leather Group
Iain McFadyen
CEO
Scottish Leather Group
1.2
Foreword
“We were delighted to be invited  
to speak on two platforms at  
COP26, on our unique circular  
manufacturing process.”
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Overview
We are determined to build a company 
that continually raises standards in 
quality, sustainability, ethics, and 
traceability – developing products 
without compromise and without costing 
the earth.
When it comes to reducing carbon 
emissions, we lead the global leather 
industry, and have reduced the carbon 
intensity of our leather by over 90% since 
2003. Continuously challenging ourselves 
to do better for the planet, our customers 
choose us because we lead the way in 
the responsible production of leather. 
The United Nations Global Compact
The UN Global Compact is a global 
network initiative that provides a 
framework for organisations to embed 
and promote sustainability practices  
and principles in business.
At the beginning of 2020 Scottish 
Leather Group committed as a signatory 
to the Compact (scope 1 and scope 2). 
Each year since we have submitted  
our Communication on Progress.
We are also a signatory to the Race to 
Zero Campaign and the Science Based 
Targets Initiative to reduce emissions in 
line with limiting global temperature rise 
to 1.5°C.
The continuing expansion and 
improvement of our sustainability 
journey, in line with all of the UN SDGs, 
reflects the passion we have for our 
products and the responsibility we  
hold as sustainable manufacturers.
During the year we accredited for the 
first time to the Leather Working Group 
(LWG) Protocol, following an extensive 
business audit. This “Gold” award 
provided further endorsement of the 
performance of our staff, the business 
structure, and our commitments to the 
breadth of topics evaluated including 
Health & Safety, environmental 
performance, compliance, traceability, 
and business resilience.
We have reduced 
the carbon intensity 
of our leather by
1.3
Sustainability strategy & organisation
People
We are accredited to, and exceed the 
requirements of, the Healthy Working 
Lives standards for employee wellbeing.
We are accredited to  
the UN Global Compact
Categories
Planet
Through circular manufacturing, we  
will have zero process waste to landfill  
by 2025. 
We will reduce our direct (scope 1 and 2) 
impact to Net Zero as reported under 
SECR by 2025.
How we do business
All our suppliers are signatories to our 
Code of Conduct 2021.
We will have verified the integrity of our 
supply chain via an auditing protocol to 
meet internationally accepted standards 
by 2023.
Our commitments
90% 
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Good governance is fundamental to 
responsible business. The data provided 
within the report, and previously, is 
independently audited to the standards 
which we openly subscribe.
We are committed to strict ethical 
standards, fairness, transparency, and 
equality practices across the Group  
and within our supply chain. This begins  
with gender equality, with equal pay for 
equivalent roles, and extends across all 
our behaviours –and is enshrined in our 
commitments and measured against the 
obligations within UNGC. 
Overview of governance matters 
is provided at Board level. Scottish 
Leather Group’s Operational Executive 
oversees the strategic delivery of 
the programme which is led by our 
Head of Innovation and Sustainability, 
a Chartered Environmentalist.
The overview by our Board of Directors 
and real time monitoring by regulatory 
and other third parties ensures 
compliance is consistent to, or exceeds 
requirements of, the highest standards. 
This is fundamental to being a responsible 
business and an exemplar in our sector. 
Our commitment to The United Nations 
Global Compact (UNGC) requires 
adherence to all of the SDG principles 
and supply chain governance. We have 
satisfied ourselves and our auditors in  
meeting the UNGC gap analysis self-
assessment.
Implementation
The Executive Board meet with the 
Scottish Leather Group Operational 
Executive on a quarterly basis to review 
performance using Scottish Leather 
Group’s Strategic Deployment Matrix 
(SDM). The SDM details the key 
objectives for each area, resulting 
initiatives that are required to deliver 
the programme and how they are 
progressing. 
These initiatives are subsequently 
communicated via regular workshops  
to ensure all colleagues are clear 
on what is required of them and 
how their roles contribute to the 
overall programme. Our internal 
newsletter further supports 
ongoing communications and 
employee engagement.
BOARD OF DIRECTORS
CEO
OPERATIONAL EXECUTIVE
 HEAD OF INNOVATION AND SUSTAINABILITY
1.3
Sustainability strategy & organisation
Governance
“Good governance 
is fundamental to 
responsible business.”
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02
Section
Materiality & our approach 
for a sustainable future
2.1	
Materiality matrix
18 
2.2	
Our approach for a  
more sustainable future
20 
2.3	
2021 performance  
highlights
22 
2.4	
Progress against  
our goals
24
2.5	
Our milestones, awards  
and accreditations
26
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Our approach to sustainability has been 
guided by stakeholder input over nearly 
two decades. However, more than ever, it 
is imperative for us to gain a meaningful 
insight into changing customer and 
internal stakeholder views on what is 
“material” to them. 
We sought an holistic understanding 
of key ESG topics though a 
combination of internal and external 
stakeholder engagement.
This research identified the evolution of 
our ESG strategy as a key priority and 
helped us create our corporate identity 
and pillars. Further analysis coupled with 
examination of customer requirements 
delivered a broad understanding of the 
relative importance of the key topics 
across our key stakeholders. Scottish 
Leather Group aims to review the 
prioritisation of these topics and repeat 
an annual assessment so that we may 
respond to the evolving landscape.
Identifying relevant sustainability topics 
We commissioned a review of our 
Sustainability Report format to bring in 
wider market perspective and experience 
and examples of best practice impact 
reporting. We also analysed global 
sustainability frameworks Sustainability 
Accounting Standards Boards, the 
Global Reporting Initiative the UN Global 
Compact and United Nations Sustainable 
Development Goals alongside reviewing 
the topics considered by our customers 
in our ongoing communications. 
Stakeholder engagement 
We conducted independent qualitative 
research with both internal colleagues 
and customers. Our research partners 
held in depth interviews with twenty-
two leaders from within our own 
business and representatives from a 
cross section of functions with twenty-
six customers across all the sectors in 
which we operate. We also partnered 
with a trends intelligence agency to  
help us understand the end consumer 
expectations for sustainability.
We intend to repeat this 
exercise periodically.
1	
Transparency & traceability  
of raw materials 
Ability to track and trace from 
farm to finished product.
2	
Ethical sourcing & animal welfare  
All raw materials are by products 
of the food industry and animals 
are raised to a high standard of 
animal welfare, as measured by 
the Animal Protection Index .
3	
Health & safety /  
Employee wellbeing 
Providing a secure and 
safe environment for 
employees to thrive.
4	
Responsible supplier 
relationships  
Ensuring suppliers meet the 
same criteria our customers 
expect from ourselves.  
5	
Customer experience 
Excellence at every touchpoint 
throughout our delivery.
6	
Product Quality  
Aspiring for brilliance in 
performance, longevity, 
design, and innovation.
7	
Talent & Lifelong Learning 
Actively encouraging employee 
progression and promoting 
continual learning.
8	
Sustainable Innovations 
Developing new technologies, 
designs and finishes that improve 
longevity and minimise impact.
9	
Circularity of Product Design 
Delivering high performance 
material that can be repurposed 
at end-of-life. 
10	 Low Carbon Product 
Lowering the carbon footprint 
of our operations and products. 
11	 Resource Stewardship – 
Ensuring and optimising 
use of natural resources.
12	 Climate Change 
Contributing to the overarching 
aim to reduce impact.
13	 Craftsmanship 
Continually developing the care 
and skill required to produce 
our lowest carbon leather. 
14	 Diversity & Inclusion 
Recognising, respecting 
and celebrating each other's 
differences and creating an 
environment where everyone 
feels welcome and valued. 
15	 Community Investment 
Supporting the local community 
financially and practically.
I M P A C T  O N  S C O T T I S H  L E AT H E R  G R O U P 
S TA K E H O L D E R  E X P E C TAT I O N S
PR&P 
Resource Stewardship 
Transparency & Traceability 
of Raw Materials
PR&P 
Ethical Sourcing &  
Animal Welfare
P&P 
Health & Safety /  
Employee Wellbeing
I&S 
Sustainable Innovations
D&T 
Circularity of  
Product Design
I&S 
Low Carbon Product
High
Medium
Low
PR&P 
Responsible Supplier 
Relationships 
E&Q 
Customer Experience
PR&P 
Resource Stewardship
I&S 
Climate Change
T&H 
Craftsmanship
P&P 
Diversity & Inclusion
E&Q 
Product Quality
P&P 
Talent & Lifelong  
Learning
P&P 
Community Investment
2.1
Materiality matrix 
I&S	
Innovation & Sustainability
D&T	
Design & Technology
PR&P	
Provenance & Place
P&P	
Passion & People
E&Q	
Expertise & Quality 
T&H	
Tradition & Heritage
 	
Environmental
 	
Social
 	
Governance
Key
Brand pillars
ESG Category
Material Topics
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We were proud to share our journey at 
COP26 on the Group’s core activities, 
namely the sustainable manufacture of 
leather and the application of our unique 
circular manufacturing process in support 
of the “UN Goal 13 Agenda”. We believe 
finding innovative ways of working 
together to accelerate climate action 
and adaption can support our customers 
to reduce carbon emissions and take 
climate action.
Scottish Leather Group is a family-owned 
business, driven by exceptional people. 
It is our people that bring warmth, grit and 
expertise. Dedicated, honest and proud, 
we care and obsess about every detail.
Our approach includes the most material 
sustainable topics and supports our vision 
to innovate and manufacture the world’s 
lowest carbon leather for the world’s most 
respected companies. 
We are committed to an innovation 
agenda that supports a sustainable 
future including blockchain technology 
to deliver full supply chain transparency 
and traceability, one of our key material 
topics. Our unique low carbon leather 
and circular manufacturing approach 
allows us to support our customers 
on their own journeys, empowering 
more people, businesses and brands.
Our people are at the heart 
of our business purpose
At the heart of that purpose is a 
concern for the safety and wellbeing 
of our employees, contractors and 
the communities that surround our 
manufacturing sites; something on 
which we will never compromise.
There is always opportunity for 
improvement and as we strive to 
achieve zero waste to landfill and 
zero embedded carbon by 2025 per 
Scope 1 and 2, we endeavour to lead 
the way to make sure our business 
and sustainable manufacturing 
practices help ourselves and our 
partners to do more for the planet.
We have a lifelong passion for developing 
game-changing products that are the 
benchmark for luxury, comfort and care. 
We respect our resources, pioneer 
world-leading sustainable practices and 
only source rawhides from suppliers that 
respect and observe animal welfare 
standards that are rated amongst the 
highest globally. 
We take responsibility in raising standards. 
From our people, our suppliers, to the 
materials and resources we use – we 
take pride in designing and manufacturing 
high quality sustainable products that 
inspire our customers and the people 
that use them.
Our commitment to creating the best 
products and delivering the best service 
is a philosophy that began with our 
founders and remains true to this day.
2.2
Our approach for a more sustainable future 
Integration of ESG & business strategy
UN Sustainable Development Goals
Material Topics
Company Values
Company Purpose
We innovate and manufacture the  
world’s finest sustainable leather for the  
world’s most respected companies.
We make it  
personal
We are naturally
 progressive
We are committed 
to quality
People
Improve Lives
Health & Safety / 
Employee Wellbeing
Inclusion & Diversity
Talent & Lifelong Learning
Craftsmanship
Community Investment
Planet
Reduce Impact
Sustainable Innovations 
Circularity of Product Design
Low Carbon Product 
Resource Stewardship
Climate Change
How we do business
Sustain Growth 
Transparency & Traceability  
of Raw Materials 
Ethical Sourcing & Animal Welfare
Responsible Supplier Relationships 
Product Quality
Customer Experience 
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2.3
2021 performance highlights
100% traceability of our raw 
material as certified by  
Leather Working Group 
being the lowest in the world 
published for leather
Life Cycle Analysis (LCA) 
measures impact of production 
as CO₂e/m2, our LCA of 
90% decrease in energy 
intensity per hide in the last  
20 years. (Scope 1 and 2)
of our waste was recycled 
or recovered in 2021 
100% 
100% 
100% 
8kg 
84% 
90% 
data independently audited by BSI, 
Leather Working Group
of our suppliers are signatory 
to our code of conduct
reduction in corporate carbon 
footprint as measured per  
the SECR against baseline 
without offsetting
53% 
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Year
2021
Commitment
We will be accredited to, and 
exceed the requirements of the 
Healthy Working Lives standards 
for employee wellbeing.
Materiality topic
•	
Health & Safety / 
Employee Wellbeing
•	
Inclusion & Diversity
•	
Talent & Lifelong Learning
•	
Craftsmanship 
•	
Community Investment
Progress
We have already achieved 
‘Gold’ standard and the 
RoSPA President's Award.
In the forthcoming year we 
will undergo SMETA audit.
Year
2023
Commitment
We will have verified the integrity 
of our supply chain via an auditing 
protocol to meet internationally 
accepted standards.
Materiality topic
•	
Transparency & Traceability 
of Raw Material
•	
Ethical Sourcing  
& Animal Welfare
•	
Responsible Supplier 
Relationships
Progress
We are actively engaged with 
our supply chain – suppliers 
and contractors alike – and 
seeking assurance regarding 
the provenance of materials, 
supply chain footprint, 
behaviours and practices.
Year
2022
Commitment
We will be accredited to the  
UN Global Compact. 
Materiality topic
•	
All
Progress
In early 2021 we restated 
this commitment in our 
communication on progress 
and have completed our 
self-assessment confirming 
compliance. This has been 
independently verified.
Year
2025
Commitment
1	
Through circular 
manufacturing, we 
will have zero process 
waste to landfill. 
2	
We will reduce our direct 
(scope 1 and scope 2) 
impact to Net Zero as 
reported under SECR. 
Materiality topic
•	
Sustainable Innovations 
•	
Circularity of Product Design
•	
Resource Stewardship
•	
Low Carbon Product 
•	
Climate Change
Progress
1	
Progress has seen our 
metrics achieve 84% 
of our 2025 target.
2	
Our GHG scope one and  
two emissions have already 
reduced by 90% from baseline 
towards our 2025 target.
3	
Our Corporate footprint has 
reduced by 53% per SECR.
1
4
2
5+6
3
Year
2021
Commitment
All suppliers to become signatory 
to Code of Conduct. 
Materiality topic
•	
Transparency & Traceability 
of Raw Materials
•	
Ethical Sourcing  
& Animal Welfare
•	
Responsible Supplier 
Relationships
•	
Product Quality
•	
Customer Experience 
Progress
All suppliers now signatory to 
Code of Conduct.
 	
Environmental
 	
Social
 	
Governance
Key
2.4
Progress against our goals 
Sustainability is in our DNA, and we continue 
to strive for improvement. We have made six 
major commitments to increased sustainability, 
securing our future as industry leaders.
Commitments & progress
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2.5
Our Milestones, Awards,  
Accreditations
2020
2016
2018
2013
2003
2005
2009
2011
2010
2007
2015
2017
2019
Thermal energy 
plant (TEP) opens
SLG Academy 
launches
Emulsion treatment 
plant opens
Zero waste 
strategy
SLG Technology 
launches
TEP expansion
Ultrafiltration plant 
(UFP) opens
2012
Corporate 
Social 
Responsibility 
Award
LARGE EXPORTER OF THE YEAR
and SCOTTISH EXPORTER OF THE YEAR
2021
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03
Section
People
3.1	
Management approach
30
3.2	
Health & Safety / 
Employee Wellbeing
32
3.3	
Inclusion & Diversity
34
3.4	
Talent & Lifelong Learning 
& craftsmanship
38
3.5	
Community Investment
40
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At the heart of that purpose is a  
concern for the safety and wellbeing  
of our employees, contractors and  
the communities that surround our 
manufacturing sites; something  
on which we will never compromise.
Through their unique skillsets,  
knowledge and commitment, they  
form the foundation for what we do  
and the way that we do it.
In 2021 we progressed our commitment 
to our people and achieved “gold” 
standard in the Healthy Working Lives 
Programme, a Public Health Scotland 
initiative to help promote positive mental 
health, health improvement and health 
and safety, and seek to surpass this.
An externally conducted SMETA 
accredited audit will be conducted  
in 2022 in accordance with globally 
recognised good practice, to 
independently measure our 
performance as presented by staff. 
Our people are at 
the heart of our 
business purpose. 
3.1
Management approach – summary
Our materiality 
assessment cemented our 
existing understanding 
of key priorities: 
People
Improve lives
Material Topics
Health & Safety / 
Employee Wellbeing
Inclusion & Diversity
Talent & Lifelong Learning
Craftsmanship
Community Investment
We make it personal
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Employee wellbeing is critical to a 
productive and engaged workforce  
and to social gain. As part of our 
strategy to improve health and  
safety and employee wellbeing,  
we conduct two internal surveys. 
The first is our biannual health and safety 
climate survey, a Health and Safety 
Executive (HSE) recognised survey, 
which focuses questions around 8 key 
areas including organisational 
commitment, behaviours and near miss 
reporting. In our most recent survey  
in January 2022, distributed to all our 
employees, we achieved just under a 50% 
response rate, with the results being 
aligned to industry benchmark. We are 
committed to going beyond the industry 
benchmark though as we focus our 
efforts on improving behavioural safety 
performance in the coming years. 
Our second is our Pulse Employee 
Engagement Survey, with our very first 
completed in November 2021. Again, 
distributed to all our employees, Pulse 
received a response rate of 75% and we 
are confident that the results are a 
representative sample of our workforce. 
As well as asking 64 questions relating 
to health, safety and wellbeing, the 
survey also focused on communication, 
collaboration, inclusion and growth and 
development, to name a few. We are 
very proud that safety and wellbeing 
scored the highest in all categories, 
cementing the commitment we have 
made to our continued improvements. 
“We take pride in 
employee wellbeing.” 
We also take great pride in being an 
employer who promotes employee 
wellbeing. We achieved “gold” standard  
in the Healthy Working Lives Programme, 
a Public Health Scotland initiative to help 
promote positive mental health, health 
improvement and health and safety and 
seek to surpass this. During last year  
we received confirmation of the RoSPA 
President's Award, for achieving 10 
consecutive gold awards in prevention  
of accidents.
This coming year we are investing further 
in new facilities, with enhanced welfare 
and working conditions with significant 
investments in new plant, buildings and 
automation to mitigate risk.
3.2
Health & safety / employee wellbeing
We make it personal
10 
Internal communications have also 
increased, with the launch of our internal 
newsletter – The Cutting Edge, sharing 
staff successes and activities.
Consecutive RoSPA  
gold awards
32 	
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Targets our commitment
The manufacturing sector continues to 
face structural and cultural challenges. 
We are continuing to increase our 
efforts in attracting a diverse workforce 
to Scottish Leather Group at all levels 
– working with schools, colleges and 
organisations who work with young 
people in Scotland to raise awareness 
of career opportunities within the 
manufacturing sector.
Having the right people in place and 
ensuring that they are provided with 
the platform to develop is crucial to our 
success and creating an environment 
which supports all of our employees  
to fulfil their full potential will help us 
achieve our ambitions of becoming the 
most successful and respected leather 
manufacturer in the world.
We believe the area where we can 
make the most impact is to encourage 
more women into the company. We 
have recently appointed a Talent 
Acquisition Specialist to enhance our 
external visibility, and ensure we carry 
our job and career messages to an  
wide ranging audience. 
This will be achieved by further STEM 
events, career fairs and visits to schools 
and colleges. We also look to improve 
our marketing messages by ensuring 
females are more prominent in our 
employee case studies and external 
marketing collateral. 
We also conduct an annual talent review 
and succession planning process, which 
is designed to identify future talent 
within Scottish Leather Group, with 
personal development plans put in 
place to support career development. 
In 2021, we took the decision to 
proactively encourage two of our female 
employees to enter into a rising stars 
development programme offered by 
the Glasgow Chamber of Commerce. 
We have also once again engaged with 
Entrepreneurial Scotland and their intern 
programme, Saltire Scholars. We are 
pleased that two of our five interns in the 
summer of 2022 will be female, working 
in manufacturing support roles, with the 
aim of creating a pipeline of talent for 
our future manufacturing aspirations.
We are supporting STEM education and 
have a dedicated team who educate 
students of all genders and from all 
socio-economic backgrounds in local 
schools about the leather making process 
and how STEM subjects are vital across 
our industry.
Science, technology, engineering,  
and mathematics form the backbone  
of leather manufacture, and by working 
with local schools and engaging with 
community fairs, we hope to not only 
recruit the next generation of leather 
technologists, but also bridge the 
gender gap in STEM industries.
“We believe the area 
where we can make 
the most impact is 
to encourage more 
women into the 
company.”
 40% 
Female internships awarded  
in manufacturing roles
3.3
Inclusion & diversity
Scottish Leather Group  
employee breakdown by gender 
Male: 575 (77%)
Female: 168 (23%)
2022
F
M
We make it personal
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We are supporting  
STEM education in  
local schools and have  
a dedicated team who 
educate students of  
all genders and from  
all socio-economic 
backgrounds about 
leather.”

In 2022 we will enter our 11th year of the 
Scottish Leather Group Academy. We 
have already developed 70+ apprentices 
across Manufacturing and Production 
and Maintenance Engineering. 
Additionally, we enrolled Saltire Scholars 
to enhance the business and create career 
opportunities for these talented 
individuals. 
We created the leather industry’s first 
recognised vocational qualifications, 
certified by the Scottish Qualifications 
Authority (SQA), building skills that benefit 
the whole manufacturing sector.
We are also pleased to welcome our first 
5th Year school students, on our new 
Foundation Apprenticeship programme 
in May 2022. They will both join Scottish 
Leather Group for a weeks’ placement  
in the Engineering department, getting 
exposure to what it's like working as an 
engineer, with the hope of creating a 
further pipeline for talent when they  
are seeking future employment. 
In 2021, we supported a further two 
employees in enrolling in graduate 
apprenticeships in International 
Business at the University of 
Strathclyde. This builds on two 
employees who are currently 
studying graduate apprenticeships 
in Engineering (Design and 
Manufacturing) and IT Cyber Security.
We continue to promote personal and 
professional development through our 
Performance Development Review 
process, which ensures that development 
opportunities are aligned to company 
and personal ambitions. We continued 
to offer development opportunities in 
2021 in our leadership and management 
development programmes. This has 
equipped over 100 of our Managers, 
Supervisors and Team Leaders with  
the required skills to ensure they are 
successful in their roles, improving their 
overall confidence and helping them 
reach their full potential.
Some of our apprentices have gone  
on to more advanced positions, having 
graduated or currently attending 
University to gain degrees in Leather 
Technology and Engineering and  
Design and Manufacturing.
We are nurturing future generations of
leather
experts.
3.4
Talent, lifelong learning & craftsmanship 
 70+ 
Apprentices developed 
across manufacturing, 
production and maintenance 
engineering.
We make it personal
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We make a positive and 
lasting impact on local 
communities 
The Group’s charitable and community 
engagement aims to make a lasting 
impact in the communities local to 
our manufacturing sites. This has 
been particularly important in the 
past two years of COVID-19.
The team continued its focus on 
supporting the communities where 
our business operations are located. 
Following our immediate and urgent 
response to the COVID-19 pandemic  
in 2020, we continued working with  
local causes that were focusing on 
supporting children. We know that  
our continued support is greatly 
appreciated by these groups.
Our ongoing collaboration with local 
primary schools, both in the Dalmarnock 
area of Glasgow and Bridge of Weir  
has ensured that the return to full time 
education included some much 
appreciated extracurricular activities. 
2021 has also seen our STEMs team launch 
a multi-year programme with Bridge  
of Weir Primary School. Greenpower 
Educational Trust inspire young people 
around the world to excel in Science, 
Technology, Engineering and Maths 
through a unique challenge; to design, 
build and race an electric car. Our team 
were delighted to support pupils both in 
the class room and through visits to our 
new cut and sew facility where we helped 
them in the design and build of a leather 
seat for their car. We look forward to 
CHAS, St Vincent’s Hospice, Accord 
Hospice and Bridge of Weir senior 
citizens remain regular and very 
appreciative beneficiaries, and this 
year we were delighted to be able to 
support the Trades House Glasgow 
Souper Star Appeal which provided 
Christmas lunch for clients of the 
Lodging House Mission.
In response to the humanitarian  
crisis in Ukraine, we were grateful  
for the advice of our Polish colleagues 
who recommended we team up 
with St Mary’s Primary School in 
Paisley to collect essential items and 
monetary donations. Following this 
excellent response the company 
also made a donation to The Polish 
Humanitarian Action, a charity 
chosen by our colleagues.
3.5
Community investment
next year’s project with Bridge of Weir 
Primary and also to working with a Paisley 
primary school on a STEMs project.
Our relationships with Families First 
Johnstone, Renfrewshire Toy Bank and 
With Kids in Glasgow are well established, 
so it was particularly pleasing to cement 
our relatively new but evolving partnership 
with Darkwood Crew who are doing an 
amazing job working with the young, 
and the not so young, in Ferguslie Park, 
Paisley. This charity really appreciates 
the practical and financial support it 
receives from our company as well as 
the generosity of our employees who 
donate Christmas gifts for the children 
and senior citizens of Ferguslie Park. 
Together we really do make a difference 
and we look forward to supporting 
Darkwood Crew for many years to come.
We make it personal
Despite being a difficult year, in addition 
to our direct company support, several 
of our employees have been involved in 
raising funds, or giving their time and 
skills, to benefit a wide range of causes 
in the communities around our sites and 
to support those in Ukraine. This giving, 
in its many forms, is testament to the 
corporate culture we aim to nurture and 
build upon as we strive to do and be more. 
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04
Section
Planet
4.1	
Management approach
44
4.2	
Measuring our product’s 
environmental impact
46
4.3	
Resource Stewardship
48
4.4	
Sustainable innovations,  
circularity of product design
52
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We have since made formal commitments 
to carbon reduction and sustainable 
manufacturing as outlined in this 
document, including people metrics, 
governance, compliance, independently 
audited and founded on best practice.
We approach the final stages of that 
journey with our goal to reach zero for 
scope 1 and 2 carbon and zero process 
waste to landfill by 2025.
We look forward to the conclusion 
and clarification of our longer 
term targets and commitments 
under the SBTi by 2037.
“ We are committed  
to the ‘sustainable’ 
manufacturing of 
leather and reducing 
the footprint of our own 
operations.”
Our ‘journey to zero’ is leading the leather industry
The importance of the ESG agenda is a key learning 
from our stakeholder engagement and materiality 
assessment. It is valued more highly than ever by 
consumers and customers across all industries – 
and rightly so. We are proud that our pioneering 
‘journey to zero’, backed by rigorous analysis,  
leads the leather industry.
In 2003 Scottish Leather Group launched its zero 
waste strategy. We have dramatically (by 90%) 
reduced the average carbon intensity (measured 
as CO2 equivalent) per hide of our leather by 
switching to 100% renewable electricity and 
converting our own process waste into energy.
4.1
Management approach – summary
We are naturally progressive
90%
on our way to net zero.
Planet
Reduce Impact
Material topics
Sustainable Inovations
Circularity of Product Design 
Low Carbon Product  
Resource Stewardship 
Climate Change
Our materiality 
assessment cemented our 
existing understanding 
of key priorities: 
Our commitments
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Our journey to zero. Environmental, Social & Governance Report 2022

Low carbon leather,  
climate change
We produce the world’s 
lowest carbon leather as 
measured using Life Cycle 
Analysis (LCA). This is a 
methodology for measuring 
the true long-term impact  
of a service or product.  
LCA examines all the steps  
in a product’s life from the 
extraction of raw materials, 
through all working 
processes, to distribution, 
maintenance and what 
happens to it at end-of-life. 
LCA is a powerful tool for 
measuring how responsible 
our consumption and 
production is, enabling a 
true and fair comparison 
against the impact of other 
products and materials.
We ask independent specialist 
consultants to measure the 
true impact of our activities, 
verify the impact of our 
supply chains, and identify 
opportunities for impact 
reduction.
This LCA-driven ‘responsible 
innovation’ process 
encourages us to increase 
our use of renewable energy, 
find new ways to increase 
the value and reusability 
of our co-products, 
and review our intake of 
chemicals – we are looking 
more and more to replace 
conventional chemistry 
with biobased materials 
of assured provenance.
The Life Cycle Analysis  
for our leather is based on 
primary data, independently 
created by specialist 
consultants according to 
ISO14040 and ISO14044 
using Sector Guidance 
– EDP, PEFCR, and PCR 
standards, calculated using 
proprietary SIMAPRO 
software and In reference to 
the Eco Invent 3.6 database.
Circularity of product design 
/ sustainable innovations
Circular manufacturing 
We use our own process waste as fuel  
in a patented circular manufacturing 
process. Our thermal energy plant 
reclaims energy as both steam or a 
biofuel co product from our waste 
streams and uses some of this heat  
to directly power our tannery. This 
minimises waste to landfill and radically 
reduces our corporate and product 
carbon footprint.
Upstream
Core
Total
Tannery
Finishing
Farming
Abattoirs
“Our patented circular manufacturing 
process minimises waste to landfill and 
radically reduces our carbon footprint.”
4.2
Measuring our product’s environmental impact
Full table in appendix
Company  
environmental impact 
Our Corporate footprint  
has reduced by 53%  
per SECR (no offsetting)  
with more than 95% being  
direct manufacturing  
operations and only 1%  
being business travel.  
Hence why we have been  
and continue to focus on  
reducing the manufacturing 
related emissions.
21,225
T CO₂e
[2018-2019]
11,906
T CO₂e
[2019-2020]
9,963
T CO₂e
[2021-2022]
Our circular manufacturing process
Our LCA
GWP
4.46
kg CO₂e/m2
GWP
3.21-5.34
kg CO₂e/m2
GWP
7.67-9.8
kg CO₂e/m2
8,803
T CO₂e
[2020-2021]
Raw materials
and water
Tanneries
Leather manufacturing
Thermal
energy plant
Oil, biofuel
and ash
Ultraﬁltration
plant
Clean
water
Liquid
waste
Solid Waste
Steam, gas and heat
We are naturally progressive
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We source natural,  
clean, local water from  
our own loch* 
We primarily (95%) source water from our 
own loch – a natural, local source  
of clean Scottish water. We filter and 
recycle up to 40% to save water and 
recover renewable heat.
The remainder is treated by a 
downstream plant and returns to 
the original watershed, reducing 
the measurable impact within 
our Life Cycle Analysis (LCA).
The water is “borrowed”; we use our own 
natural water source, treat it, recycle it 
or discharge the treated water back to 
the same watershed (same river), without 
consuming any according to LCA. This 
has almost ‘0’ impact on a kgCO2/m2 
basis. We also measure water use 
according to the water scarcity index  
for each of our products.
Our factories are provided with mains 
drinking water to supplement the 
provision of water fountains for safe 
drinking supplies. Sanitary facilities 
throughout exceed workplace 
regulatory requirements.
We source the majority of our water 
from natural sources, including our  
own managed loch. Our ultrafiltration 
plant enables us to recycle up to 40%  
of our treated water back into use  
within production. 
Water re-use is part of our circular 
manufacturing process. 
This past year saw recycled water 
accounting for 12% of total water 
used. This recycling process 
significantly decreases our intake 
from the loch, minimising impact 
on the local watershed.
A further benefit of water recycling is 
heat recovery, accounting for up to half 
of our water heating demand.
The upcoming expansion of our Water 
Treatment and Recycling Plant will allow 
us to recycle even more wastewater 
back into production.
As an indirect discharger, the treated 
wastewater from our manufacturing 
process that is not re-used by us is 
further treated by Scottish Water before 
re-joining the ecosystem of the River 
Clyde Estuary as clean water.
We complete this circular process by 
managing and maintaining the welfare  
of our loch, our own water supply. 
Annually we conduct analysis of the  
true impact of our operations on the 
aquatic environment.
Our world class tannery 
uses 50% less water per hide** 
than the industry standard
 50% 
“Our ultrafiltration plant 
enables us to recycle  
up to 40% of our treated  
water back into use  
within production.”
4.3
Resource stewardship
Our circular water process
*	
A loch is a large area 
of water in Scotland. 
**	 BREF EU best 
available techniques 
reference documents.
We are naturally progressive
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10.9kg
1.1kg
1.3kg
Introduction of 100%
renewable energy
Energy eﬃciency programme
(Carbon Trust) 
2003 2004 2005 2006 2007 2008 2009 2010 2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
12
10
8
6
4
2
0
Thermal energy
plant opens
Carbon Intensity 
This graph represents the energy intensity of our leather,  
shown as kg CO2e per hide, reducing by calendar year.
Scarce resources
We make the world’s lowest 
carbon intensity leather 
The Group ensures that all materials 
used throughout our leather production 
are responsibly sourced and that our 
production carbon intensity is constantly 
improving, such as through the use of 
certified 100% renewable electricity.
“Our customers select us as a  
supplier because we ‘lead the way  
in responsible production of leather’ 
– a choice that reflects positively on 
their own brands. Our forthcoming SBTi 
targets will set new standards  
for the leather sector supply chain  
for the next 20 years.” 
Low carbon product
Lowering carbon intensity
While fluctuations are inevitable, our 
overall trajectory towards our target 
of net zero by 2025 remains on track.
4.3
Resource stewardship
Our production carbon 
intensity is constantly 
improving, such as the 
use of certified 100% 
renewable electricity.
100%
We are naturally progressive
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We work closely with customers in 
achieving their ambitions towards  
a net zero future. This is captured 
in the aforementioned initiatives  
as well as in our innovation agenda. 
Sustainability and innovation go hand-
in-hand. Continuous innovation is how 
we will reach our goal of net zero carbon 
by 2025, and our customers demand  
the same innovation in our products  
and services.
The Group has committed to a formal 
innovation agenda, putting in place a 
system that encourages and nurtures 
new ideas – a platform to take our 
business forward.
We work proactively in ‘innovation  
hubs’ that bring together our own  
teams with external specialists. These 
hubs include our manufacturing 
partners, our customers, research 
groups and universities.
New ideas are evaluated through 
collaborative discussion, focus  
groups and sales team feedback  
and reviewed for commercial viability 
and regulatory compliance.
Our iterative approach to research and 
development ensures that new process 
or product ideas are robust and fully 
formed before reaching a commercial 
evaluation and then, if appropriate, 
marketing input. Commercialising 
innovative ideas is the end goal, and 
during the past year the Group has 
enjoyed notable successes.
Muirhead ActiveHygiene leather 
addresses the challenges of post-
pandemic passenger travel head-on – 
sustainable natural leather with added 
antiviral properties, using Polygiene 
Biomaster technology from Polygiene 
AB. ActiveHygiene leather eliminates 
99% of viruses* and bacteria from seat 
surfaces within two hours – no additional 
sanitising or cleaning required.
Our Life Cycle Analysis (LCA) audits  
our environmental impact holistically. 
The hotspot evaluation tool at the  
heart of the LCA has helped us identify 
opportunities to continuously reduce 
our impact.
The year ahead will see us focus on 
introducing more biobased or benign 
content into our leather making 
processes, reducing our reliance on 
traditional chemicals. Commercially this 
will lead to us presenting customers with 
next generation, sustainable leathers.
Our co-products agenda will also evolve 
rapidly, finding novel applications for 
proteins in entirely new fields and helping 
new partners who, like us, are seeking to 
reach net zero.
*SARS-CoV-2, H3N2 and H1N1 - according to ISO18184:2019. 
Polygiene Biomaster does not prevent diseases but protects the 
treated material. 
“The year ahead  
will see us focus  
on introducing more 
biobased  
or benign content 
into our leather 
making processes.”
4.4
Sustainable innovations
Our Energy recovery scheme
Dealing with end-of-life leather is a 
challenge for both ourselves and our 
customers, however we have developed 
an interim solution which offers the option 
of energy conversion.
We are working collaboratively with 
customers to develop more circular 
solutions such as repurposing old  
seat covers to create new products.
Increasingly whether through our  
supply chain of cut parts or the energy 
recovery of end-of-life leather, we can 
actively reduce the impact of leather  
to our customers.
We are naturally progressive
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05
Section
Section
How we do business 
5.1	
Management approach
56
5.2	
Transparency & traceability 
of raw materials
58
5.3	
Product quality and 
customer experience
64
5.4	
Collaborating for  
greater impact
	
Alexander Dennis  
& StageCoach
68
	
Aston Martin
70
	
Polestar
72
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Good governance is fundamental to 
responsible business. The data provided 
within the report, and previously, is 
independently audited to the standards 
by which we openly subscribe.
We are committed to strict ethical 
standards, fairness, transparency, and 
equality practices across the Group and 
within our supply chain. This begins with 
gender equality, with equal pay for 
equivalent roles, and extends across all 
our behaviours – and is enshrined in our 
commitments and measured against the 
obligations within UNGC.
The health, safety and wellbeing of our 
employees is paramount. We continue to 
promote the workplace based Healthy 
Working Lives initiative, encompassing 
employee workplace recognition, equal 
pay, and equal rights.
Scottish Leather Group maintains policies 
and practices to prevent modern slavery 
and promote a safe working environment. 
These values are also passed down to 
our supply chains through adherence to 
our Code of Conduct.
We operate a robust auditing program 
in accordance and beyond the 
requirements of our 8 ISO accreditations 
and report transparently using clear 
and understandable information.
Scottish Leather Group has already 
taken steps with our supply chain to 
determine the origin of any potential 
conflict minerals (3TG) and work 
closely with them to actively seek 
to identify and eliminate the use of 
conflict minerals or support armed 
conflict or violence. We continue 
to demonstrate that our raw hide 
sourcing displays total transparency 
and traceability as independently 
audited. This has recently included the 
application of blockchain techniques. 
We are committed to ensuring that there 
is transparency and fairness in all areas 
of our business. Key areas of focus have 
included the issue of modern slavery 
in our supply chain, and we require our 
contractors and suppliers to follow 
the same high standards that we hold 
ourselves to. We ensure that our staff are 
trained to look for indicators that could 
point to human exploitation and if there 
is any suspicion, however small, it is 
reported. No incident has been evident 
or reported from within our supply chain.
The Group operates a robust zero 
tolerance approach toward none-
compliance. The overview by our 
Executive Board and real time 
monitoring by regulatory and other third 
parties ensures compliance is consistent 
to, or exceeds requirements of, the 
highest standards. This is fundamental 
to being a responsible business and an 
exemplar in our sector. Our commitment 
to The United Nations Global Compact 
(UNGC) requires adherence to all of  
the SDG principles and supply chain 
governance. We have satisfied ourselves 
and our auditors in meeting the UNGC 
gap analysis self-assessment.
The UNGC broadly defines good 
governance via eight metrics, as a 
measure towards conforming to SDG 16:
1	
Participation, via freedom of 
association and expression by all.
2	 Impartial implementation of the rule of 
law where compliance is an obligation.
3	 To meet the broad consensus 
for the best interests of all within 
an equitable society where 
societal wellbeing is increased.
4	 Using processes and functions 
for maximum output and 
shareholder return.
5	 Being accountable to customers.
6	 Being accountable to regulators.
7	 Being accountable to stakeholders.
8	 Independently accredited. 
Our supply chain partners, contractors 
and suppliers have ALL signed our Code 
of Conduct which expressly requires 
them to apply, as a minimum, the same 
standards of employment, behaviours, 
legality, and ethical practices as we do, 
and encourages them to continue this 
philosophy of supply chain integrity.
Our commitment to The United Nations 
Global Compact (UNGC) requires 
adherence to all of the SDG principles 
and supply chain governance. 
5.1
Management approach – summary
How we do 
business
Sustain growth
Material topics
Transparency & Traceability  
of Raw Materials 
Ethical Sourcing & 
Animal Welfare
Responsible Supplier 
Relationships 
Product Quality
Customer Experience
Our materiality 
assessment cemented our 
existing understanding 
of key priorities: 
We are committed to quality
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We source from, and contribute back to, 
the food chain. All our raw hides are a 
by-product of the local beef and dairy 
industries, from which we have 100% 
traceability. We source raw hides locally 
within the UK & Ireland from responsible 
suppliers, without risk of deforestation, 
transparently and with full traceability.
Many of our co-products are returned 
as raw material into the food chain, as 
collagen – used widely in confectionery 
and other meat-based products. From  
a Life Cycle Analysis (LCA) perspective, 
the hides represent 1% of the economic 
value of the livestock.
Ethical sourcing  
& animal welfare 
All suppliers sign up to our 
Supplier Code of Conduct
“The co-products which we produce 
include collagen for both food and 
technical use.”
5.2
Transparency & traceability of raw materials
11.25%
37.5%
51.25%
Material outputs
	
Reclaimed as energy
	
Reclaimed for food 
and other industries
	
Finished leather
 100%
traceability target reached.
All our raw hides are sourced directly 
from abattoirs that are subject to 
daily inspections by Government 
veterinarians and licensed under UK 
and EU regulations. This procurement 
policy ensures that our hides come 
from healthy cattle herds, in countries 
that are independently rated by the 
Animal Protection Index and achieve 
one of the highest ratings globally. 
We are committed to quality
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5.2
Transparency & traceability of raw materials
Licensed abattoir
Tagged animal
SLG tannery
Tracked movement
Unique ID number
Ethical Farm
Raw hide
100% Traceable supply chain
	
Cattle passport 
traces the animal
	
Commercial  
document traces  
the hide
Raw hide sourcing 2021
	
Scotland
	
England
	
Northern Ireland
	
ROI
	
Wales
We procure around 98% of our raw hides 
locally from the UK and Ireland (in 2021, 
this figure was 100% as shown). These 
include 80.16% (2021 calendar year) of 
all Scottish grass-fed livestock – which 
enjoy the assurance of the UK Cattle 
Tracing Scheme (CTS) managed by  
the British Cattle Movement Service  
and ScotEID (Livestock Traceability).  
We are privileged to be able to source 
and trace our rawhides within the UK  
and Ireland as regulated within the 
Cattle Tracing Scheme. This ensures  
we can provide our customers with 
guaranteed provenance and ethical 
practices which are independently  
rated by the Animal Protection Index.
53.77%
23.22%
14.22%
The importance  
of UK farming
Agroforestry plays an important role in 
climate change mitigation and adaptation 
and supports a number of goals in the 
UK government’s 25 Year Environment 
Plan and Clean Growth Strategy.
What is agroforestry?  
Agroforestry encompasses farm 
hedgerows, parkland, and wood pasture 
but it also includes newer innovative 
systems, like contour planting and 
silvoarable cropping – a method of 
growing alleys of productive trees  
among arable crops. 
This deliberate integration of trees and 
shrubs into farming systems brings a  
host of benefits. 
Agroforestry systems can:
•	 Enhance farm productivity
•	 Increased biodiversity 
and habitat creation
•	 Improve soil health
•	 Boost livestock welfare
•	 Carbon capture 
•	 Manage water flow 
•	 Contribute to climate 
change mitigation
Systems can be also designed to avoid 
the potential trade-offs that occur in 
many modern farming systems between 
food production and public goods, like 
clean air. It is a progressive solution for 
both UK farming and the environment.
With over 98% of our hides sourced 
from within the UK , this farming system 
will have an increasing role in further 
reducing impact of our supply chain.
5.3
Responsible supplier relationships 
The percentage of  
UK land that is farmed.
The percentage of UK farmed 
area practising agroforestry.
The percentage of UK farmland 
in agroforestry required to help 
hit climate change targets.
72%
3%
10%
We are committed to quality
14.30%
8.34%
0.37%
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Scottish Leather Group
Agroforestry plays an important role 
in climate change mitigation and 
adaptation and supports a number 
of goals in the UK government’s 25 
Year Environment Plan and Clean 
Growth Strategy.  
It is a progressive solution for both 
UK farming and the environment.”
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5.3
Product quality and customer experience
Scottish Leather Group has decades  
of experience and expertise that  
enable us to create natural leathers  
of distinction. Our full spectrum of 
leather covers quality embossed textures 
and nappa leather and  
semi-aniline options, all the way 
through to our bespoke enhanced 
anilines and nubucks that give the 
most natural, smoothest appearance.
Our leathers are made to travel the 
world – Bridge of Weir Fine Automotive 
Leather can be found on the prestige 
marques of today and the concept 
cars of tomorrow. While Muirhead 
adorns 160 airlines, buses, coaches, 
and railways, and in the marine and 
furniture industries. Our custom leather 
can also be found in leading restaurants 
and government buildings, in hotels 
as well as private commissions.
Our leather is distinctive, natural and 
durable, adaptable and breathable.  
It wears well and ages beautifully.  
It is stress and abrasion tested and 
stain resistant, with years of knowledge 
and craftsmanship behind it to enable 
it to perform at an exacting level.
We offer cutting edge leather 
techniques and finishes, including 
bespoke and traditional perforation, 
digital printing, quilting, stitching, 
embossing and debossing. 
Our on-site colour lab offers a 
custom colour matching service, 
where our skilled technicians mix, 
test and perfect the exact shade 
to meet customer requirements.
 
Having a design team in-house 
enables the Group to keep pace, 
anticipate and track future 
developments in colour, technology, 
and texture. Concept cars are a 
proven landscape to showcase our 
latest leather textures and finishes, 
and trend reporting allows global 
customers full view of the Group’s 
latest capabilities allowing for a 
holistic alignment with design goals. 
We push the boundaries of leather 
design and manufacture. We are 
constantly inspired to create new 
textures and original finishes that 
explore what is possible – and what  
is next.
A family business that has evolved 
over nearly two centuries also has  
to be at the forefront of technology. 
Muirhead developed the world’s only 
full substance leather with a significant 
weight reduction over traditional 
leather, so we are the natural solution 
for leading airlines. Then we took it 
one step further with our 
ActiveHygiene, which eliminates 99% 
of viruses and bacteria from seat 
surfaces within two hours to address 
the challenges presented by COVID-19. 
Our commitment to lowest carbon 
leather and an onsite tannery means  
we are in full control of the process 
– and the quality.
We have the following accreditations:
•	 ISO 9001, Quality Management 
System Standard
•	 ISO 14001, Environmental 
Management System Standard
•	 ISO 50001, Energy Management 
Systems Standard
•	 ISO/TS 16949, Automotive Quality 
Management System Standard
•	 OHSAS 18001, Occupational 
Health & Safety Management 
System Standard
Assessing all  
our leather by eye,  
our quality engineers 
ensure the highest
standards across  
the entire supply
chain, from sourcing 
and manufacturing
to the finished product.
We are committed to quality
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Founded 
in 1905
Founded 
in 1872
Founded 
in 1840
Company Structure
66 	
Scottish Leather Group
67
We are proud to support 
our customers journey to 
Net Zero.

Alexander Dennis  
& StageCoach
Alexander Dennis Limited, the UK’s 
largest bus and coach manufacturer 
and a global leader in designing and 
manufacturing double-decker buses, 
collaborated with transport group 
Stagecoach to provide ten BYD ADL 
Enviro400EV electric double-decker 
buses and drivers for VIP transport 
during the 26th United Nations Climate 
Change Conference of the Parties 
(COP26) in Glasgow, Scotland.
Muirhead worked alongside Alexander 
Dennis, a long-time customer, and First 
Bus on this project for their Road to 
Renewables Roadshow. This involved 
showcasing a double-decker Battery 
Electric Bus all over the UK – starting  
in London before making its way north 
for the start of the COP26 summit  
in Glasgow.
The buses, which arrived at COP26 
fresh from ADL’s production line in 
Scotland, have been built for 
Stagecoach’s operations in London  
and are painted in the iconic red  
of Transport for London’s buses.
Stagecoach is the largest bus operator 
in the United Kingdom. It is committed 
to purchasing renewable energy across 
all its businesses, as well as targeting 
a zero-emission UK bus fleet by 2035.
The bus was furnished with wireless 
charging, USB sockets, and three 
different Muirhead lowest carbon 
leather stock colours on the seats  
– Bergamot, Pewter and Lilac Moon. 
That same Muirhead stock leather 
appears on all the seats of Alexander 
Dennis’ single decker Enviro 200 EV 
demo vehicle, which has been touring 
different operators around the UK. 
These demo vehicles have been  
so successful that Alexander Dennis  
will be promoting a new Hydrogen 
vehicle built to the same spec as  
the electric vehicles – only using  
Muirhead Egyptian Blue instead  
of Bergamot. This Hydrogen bus is 
due to tour the UK later this year. 
“We are proud to have been able to 
demonstrate a zero emission solution for 
this historic event (COP26) with attention 
given to every detail; on seating materials 
we successfully collaborated with our UK 
based partner Muirhead who produce the 
world’s lowest carbon leather and are 
committed to assisting their customers 
achieve a net zero impact.” 
 
Jacqueline Anderson 
Group Marketing Director 
Alexander Dennis Limited
We make it personal  
We are naturally progressive 
We are committed to quality
5.4
Collaborating for greater impact 
– the future is electric
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Aston Martin 
Bridge of Weir has enjoyed a special 
relationship with Aston Martin that spans 
decades, providing the highly specified 
leather interiors that are integral to the 
marque’s reputation for ultra-luxury, 
high-performance vehicles.
This association continues to this 
day, from the beautiful DB11 to the 
powerful SUV, the DBX. Our super-
soft, hand-crafted automotive 
leather was also used in the limited 
run DB7 Zagato Coupe, DB AR1, 
One-77 and more recently, the 2021 
one-off creation, the Victor.
Aston Martin’s new Environmental, 
Social and Governance (ESG) strategy, 
Racing Green embraces a new,  
driving ambition to be a world-leading 
sustainable ultra-luxury automotive 
business and Bridge of Weir will be  
a key partner on this journey. 
“We are delighted to expand our 
long-term strategic partnership 
with Bridge of Weir, with the 
involvement of our suppliers key 
to successfully achieving our 
sustainability goals outlined in 
Racing.Green. Not only are we 
benefitting from their expertise 
and unrivalled quality but their 
vertical control from farm to 
finish, 100% traceability and 
lowest carbon leather, but we are 
also supporting our ambition to 
achieve net zero emissions 
across our entire supply chain.” 
 
Aurelien Faucheux 
CPO – Head of Procurement 
Aston Martin
Aston Martin is transforming its 
products and the way they are 
manufactured to help tackle climate 
change. In 2024 Aston Martin will 
launch Valhalla, its first Plug-In Hybrid 
Electric Vehicle, with the first Battery 
Electric Vehicle targeted for launch  
in 2025 and a fully electrified Sport/
GT and SUV portfolio by 2030. 
Aston Martin is aiming to achieve 
net-zero emissions within their 
manufacturing facilities by 2030,  
and across their supply chain  
by 2039.
Bridge of Weir will support these 
ambitions as our relationship continues 
to flourish and we move to supplying 
cut parts for all vehicles from our new, 
state-of-the-art facility nearby our 
core manufacturing site in Bridge of 
Weir, Scotland.
By further integrating into the supply 
chain, Bridge of Weir will not only offer 
a more complete service, but also 
significantly reduce the environmental 
impact of the overall process. 
Bridge of Weir leather is in evidence 
on almost every part of the 
interior trim, the seats, door panel, 
dashboard, steering wheel, gear 
stick gaiter, instrument panel and 
parcel shelf. Even the matching 
luggage is crafted in Bridge of 
Weir leather, an extension of our 
collaboration is a natural progression. 
Bridge of Weir  
will support these 
ambitions as our 
relationship continues 
to flourish and we move 
to supplying  
cut parts for all vehicles 
from our  
new, state-of-the-art 
facility nearby our  
core manufacturing site 
in Bridge of Weir, 
Scotland.
We make it personal  
We are naturally progressive 
We are committed to quality
5.4
Collaborating for greater impact 
– Racing.Green. with Aston Martin
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5.4
Collaborating for greater impact 
– a holistic partnership
Polestar 
Bridge of Weir Leather is delighted 
to be supplying the leather for 
the Polestar 2, which has recently 
benefitted from a host of upgrades, 
further reducing climate impact and 
increasing material traceability. 
Revisiting materials and processes that 
go into making an award-winning electric 
car, Polestar’s updates address not just 
functionality and design, but sustainability 
and carbon footprint as well. 
In taking this holistic approach, Polestar 
believes that when it comes to interiors, 
leather solves many challenges related 
to quality and the environment – and 
that relying on only synthetic materials 
creates other sustainability challenges. 
Bridge of Weir satisfies Polestar’s 
stringent requirements. Working with 
by-products from ethically responsible 
sources, the leather we provide offers 
100% traceability. 
Our unique lowest carbon leather, 
as measured and validated by LCA, 
directly supports our automotive 
customers and their journey to 
reducing their carbon emissions 
across their entire supply chains.
“We have revisited materials and 
processes that go into making 
Polestar 2, introducing updates 
that reduce the climate impact 
and increase material traceability 
of this award-winning car. 
	 These are important additions  
to how we can improve cars  
over their lifetime. Not just  
with functionality and design 
updates, but addressing 
sustainability and carbon 
footprint as well.” 
 
Thomas Ingenlath 
CEO 
Polestar
“We require that  
all leather used  
in Polestar products 
live up to the strictest 
standards on animal 
welfare and the Five 
Freedoms, as well as 
being fully traceable 
and chrome-free.” 
 
Fredrika Klarén 
Head of Sustainability  
Polestar
We make it personal  
We are naturally progressive 
We are committed to quality
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06
Section
Appendix 
6.1	
Appendix
	
Streamlined Energy & 
Carbon Reporting (SECR)
76
	
Gender Pay Gap  
Statement 2021
80
	
Company Structure 
81
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Kg CO2e/m2 Carbon intensity – Kg Carbon Dioxide equivalent per square metre product; T CO2e – Tonnes Carbon Dioxide equivalent 
emissions; equivalent emissions are all emissions converted and reported on carbon dioxide; kWh – Kilowatt hours – Standard unit of  
gas & electricity measurement. 
Scope 1
Units
2021-2022
2020-2021
2019-2020
2018-2019
Gas consumption
kWh
34,038,962
34,301,001
39,158,932
40,858,498
Electricity consumption
kWh
15,695,112
14,073,795
16,196,333
17,596,923
Gas consumption
T CO2e
6,235
6,283
7,172
7,484
Owned transport
T CO2e
156
158
187
123
Process emissions
T CO2e
123
103
124
148
Total Scope 1
6,514
6,544
7,483
7,755
Scope 2
Emissions from 
purchased electricity
T CO2e
3,333
2,988
3,439
10,588
Total Scope 2
3,333
2,988
3,439
10,588
Chosen intensity 
measurement: S1 & 
S2 net emissions
kg  
CO2e/m2
0.80
0.55
0.37
0.89
Scope 3
Fuel- and energy-related 
activities not included 
in Scopes 1 and 2
T CO2e
2,143
2,118
1,502
1,658
Business travel
T CO2e
61
16
30
N/A
Waste generated in 
operations – disposal 
emissions
T CO2e
4,330
3,724
6,997
9,655
Total Scope 3
6,534
5,858
8,529
11,313
Offsets
Gross emissions S1,  
S2, and S3
T CO2e
16,381
15,390
19,451
29,655
Offset – Steam and 
oil exported
T CO2e
(3,335)
(3,598)
(4,107)
(4,693)
Offset – REGO 
electricity supply
T CO2e
(3,083)
(2,988)
(3,439)
(3,736)
Net emissions
T CO2e
9,963
8,804
11,905
21,226
 6.1
Appendix
Streamlined Energy & 
Carbon Reporting (SECR)
Energy use and carbon emissions 
The Streamlined Carbon and Energy 
Reporting (SECR) data is presented in 
accordance with the Companies Act 
2006 (Strategic Report and Directors’ 
Report) Regulations 2013. The data 
collected includes the emissions for 
the UK operations of Scottish Leather 
Group Operations Limited. UK 
Government (greenhouse gas) published 
conversion factors for Financial Year 
2021-2022 were used to rebase prior 
years’ carbon emissions and offsets, 
from primary data (meter readings  
and invoices) as per our ESG Policy. 
Several of these conversion factors 
(e.g. waste, Scope 3) have increased 
during the year. The 2018-2019 financial 
year data continues to be used as the 
baseline year. 
The chosen intensity measurement 
continues to be kg CO2e/m2 of 
finished product. Annual targets for 
absolute and relative energy use and 
carbon intensity KPIs for product mix 
are set within the Energy Management 
System (ISO 50001). The energy and 
carbon data presented is audited 
bi-annually by BSI. Additionally, the 
data presented is independently 
audited to Environmental Reporting 
Standard ISO14016. The Group’s 
products (marketed as Lowest 
Carbon Leather) are subject to 
published (PCR, PEFCR) Life Cycle 
Analysis measurement which includes 
upstream carbon assessment. 
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Waste to Landfill 2018-2021 YTD
2018
2019
2020
2021
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
Filter cake
Fleshings
Dry cake
Ash
General Waste
* ISO 9001, 14001, 45001, 50001, IATF, MED
** ISO 14016 (? & Environmental Reporting) per ifc
Journey to Zero – 2021
Disposal Route
Total Tonnage
Percentage
Total Waste
49388.01
Landfill
8079.66
16%
Recycled/Recovered
41308.36
84%
Journey to Zero – 2020
Total Tonnage
Percentage
52383.12
9428.74
18%
42954.37
82%
Production Energy 2021
kWh
%
Group Gas
 33,159,369.00 
Purchased Gas
 20,588,255.75 
62%
Group Electricity
 14,346,973.70 
Renewable Electricity
 13,545,640.80 
94%
Production Energy 2020
kWh
%
Group Gas
 34,565,922.00 
Purchased Gas
 22,192,584.38 
64%
Group Electricity
 14,344,018.40 
Renewable Electricity
 13,527,587.50 
94%
Non-compliance 	
	
	
	
	
Effluent > threshold 
0
Air Emission > threshold 
0
Waste > threshold
0
LWG Rating (P6.7)
Gold
Gold
Gold
Waste Water 2021
kWh
%
Total m³
 318,383.00 
Recycled m³
 37,372.00 
12%
Discharged m³
 245,748.00 
77%
Waste Water 2020
m³
%
Total m³
 250,144.00 
Recycled m³
 68,640.00 
27%
Discharged m³
 191,166.00 
76%
Hides Purchased	
	
%
Total
 570,985.00 
UK
 570,985.00 
100%
Non UK
 - 
0%
Scotland
307024
53.77%
England
132,609
23.22%
Northern Ireland
81,650
14.30%
Republic of Ireland
47,602
8.34%
Wales
2100
0.37%
Appendix
 6.1
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Gender Pay Gap  
Statement 2021
Gender Pay Gap is the difference in the 
pay of men or women across the whole 
company. The calculation therefore 
takes into account all jobs  
at all levels and salaries. In terms of the 
mean and median statistics across our 
business, there are differences, and 
this is down to the fact that  
there are more males employed in  
our manufacturing business than  
there are women.
Our illustrative charts below  
outline these differences, and  
the key numbers are as follows:
 6.1
Proportion of males and 
females in each pay quartile (%)
Difference between men and women
Mean
Median
Hourly Rate of pay
 15.5%
3.2%
Bonus Pay
0%
0%
0% Pay difference between men  
and women in the same roles
0% Pay difference in bonuses paid to 
men and women in the same roles
3.2% Median difference in hourly pay 
across the business (female to male 
employment ratio 1:3.14)
15.5% Mean difference in hourly pay 
across the business (female to male 
employment ratio 1:3.14)
Lower Quartile
27.8%
72.2%
Lower Middle 
Quartile
24.3%
75.7%
Upper Middle 
Quartile
28.7%
71.3%
Upper Quartile
15.7%
84.3%
The data above shows our overall mean and median gender 
pay gap based on the snapshot date of 5th April 2021.
Nicholas Muirhead
Managing Director
Scottish Leather Group Operations Limited
18th March 202
Appendix
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Scottish Leather Group Limited
Locher House
Kilbarchan Road
Bridge of Weir
Renfrewshire
PA11 3RN
Scotland 
+44 (0)1505 691730
enquiries@scottishleathergroup.com
scottishleathergroup.com