Annual Report &
Accounts 2024
the power of
amazing
Sustainability Report
We are pleased to share with
you our Annual Report & Accounts
in a unique, three-report format:
Report 1: Strategic Report
Where we discuss our growth
opportunities and strategic performance.
amazing
2.61 Governance at a glance
2.61 Compliance with the UK Corporate
Governance Code
2.62 Governance structure
2.64 Chair's introduction
2.66 Board of Directors
2.69 Group Executive Committee
2.70 Board leadership and
company purpose
2.78 Composition, succession
and evaluation
2.81 Audit, risk and internal control
2.82 Committee reports
2.82 Nomination Committee Report
2.86 Audit Committee Report
2.94 Remuneration Committee
Report
2.127 Other disclosures
2.131 Statement of Directors
Responsibilities
Report 2: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Report 3: Financial Report
Where we record our financial
activities, performance and position.
These separate, but connected reports, with their
interconnected themes and narratives, allow us to
present what we achieved in 2024 in a systemic,
end-to-end architecture. They have been designed to
make it easier for our stakeholders to fully understand
our business, how we bring quality, safety and
sustainability to life, what we offer our clients and
society, and the opportunities we have ahead of us.
VISIT: INTERTEK.COM/INVESTORS
the power of
The power of amazing lies in the energy and passion
of our incredible colleagues and the work they do
every day. At Intertek, we constantly strive to be
ever better. For over 130 years, we have been
pioneers, lighting the way with ingenious solutions
that touch every part of modern life. Our culture
empowers our people and creates sustainable
growth and value for all our stakeholders.
Our caring and trusted people live by our Values,
working with passion and integrity to make a real
difference. Their energy and commitment ensure our
customers become ever more resilient, and that we all
thrive and work together to make the world better, safer
and more sustainable.
Contents
2.01 Chief Executive Officer's
sustainability letter
2.07 Our approach
2.10 Our Sustainability Excellence strategy
2.13 Sustainability performance
2.60 Directors' report
Chief Executive Officer's sustainability letter
Annual Report & Accounts 2024
Intertek Group plc
2.01
3: Financial Report
1: Strategic Report
2: Sustainability Report
The amazing
power of
Sustainability
Excellence
I would like to highlight the
contribution of our truly amazing
people, who once again have delivered
an exceptional performance for our
company, our clients, our shareholders
and society as a whole."
André Lacroix
Chief Executive Officer
As a leading Total Quality Assurance
('TQA') provider to industries worldwide,
Intertek plays a critical role in ensuring
the quality, safety and sustainability of
products and processes. Our global reach
and expertise across every industry
enable us to make a significant positive
impact on the world around us.
Sustainability is central to all we do at Intertek and is anchored
in our Purpose, Vision, Values, and strategy. I am delighted to
report that in 2024 we delivered another year of progress on
our Sustainability Excellence agenda. I would like to extend my
heartfelt thanks to my colleagues at Intertek for their tireless
efforts in helping to create an ever better world for current and
future generations.
By working hard to meet the expectations of, and create
sustainable value for, all stakeholders, we continue to be an
amazing force for good in the world, working collectively to
unleash the power of our high-performance 10X culture and
amazing people. Sustainability Excellence is vital to Intertek
and our people as it reflects our dedication to creating a positive
impact on the environment and society. This commitment drives
long-term value for all stakeholders, including customers,
employees, shareholders and the communities where we operate.
Our main areas of focus include reducing carbon emissions,
ensuring employee safety and wellbeing, fostering employee
engagement and development, promoting diversity and inclusion
and supporting local communities. Over the years, we have made
significant progress through various initiatives, demonstrating
our unwavering commitment to sustainability and our ability to
adapt and provide innovative sustainability solutions in response
to global challenges that support our customers in their own
sustainability journeys.
Together, we are making a difference and paving the way for a
sustainable future and a truly amazing world for all stakeholders.
Intertek Group plc
Annual Report & Accounts 2024
2.02
Chief Executive Officer's sustainability letter Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Sustainability highlights
• Levels of Hazard Observations increased for the fifth
consecutive year, reflecting greater levels of activity
across our sites as well as greater awareness and
reporting of health and safety overall.
• Since 2015, we have used the Net Promoter Score
(‘NPS’) process to listen to our customers, enabling
us to improve our customer service over the years
consistently. In 2024, we conducted on average
6,036 NPS interviews per month.
• We are driving environmental performance across our
operations through science-based reduction targets
to 2030. By optimising energy use in our offices and
laboratories and transitioning to cleaner energy
sources, we reduced our operational market-based
emissions by 16.7% against 2023 and 47.2% against
our base year 2019.
• In 2024, we conducted a preliminary Double Materiality
Assessment ('DMA') to help us meet regulations.
• We recognise the importance of employee engagement
in driving sustainable performance for all stakeholders,
and we measure employee engagement against our
Intertek ATIC Engagement Index. In 2024, we achieved
a new high score of 91 (2023: 87).
• Our voluntary permanent employee turnover
improved to a five-year low rate of 11.2% in
2024 (2023: 12.3%).
Sustainability is central to Intertek
As a purpose-led company, we have embedded
sustainability deeply in:
Our Purpose
Bringing quality, safety and sustainability to life.
Our Vision
To be the world’s most trusted partner for
Quality Assurance.
Our Values
• We are a global family that values diversity.
• We always do the right thing. With precision,
pace and passion.
• We trust each other and have fun winning together.
• We own and shape our future.
• We create sustainable growth. For all.
Intertek Group plc
Annual Report & Accounts 2024
2.03
Chief Executive Officer's sustainability letter Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Leading the way in Sustainability Excellence
We apply the concept of Sustainability Excellence across
all our operations worldwide, holding ourselves to the same
high standards to which we hold our customers.
For Intertek’s Sustainability Excellence programme, we focus on
the ten highly-demanding standards which are part of our Total
Sustainability Assurance ('TSA') programme. These standards
are truly end-to-end and systemic and encompass all aspects
of what we know to be a truly sustainable organisation, covering
every aspect from quality and safety through to communications
and disclosures. The ten TSA standards were created to align
with the United Nations Sustainable Development Goals
(‘UN SDGs’).
READ MORE ABOUT TOTAL SUSTAINABILITY
ASSURANCE ON PAGE 2.09
Our new Sustainability Policy
During 2024 we introduced a new Sustainability Policy,
which defines our standards, principles and policies, as
well as our operating practices and relationships with our
main stakeholders. The policy is designed to provide every
Intertek company and business unit in every country where
we operate with a robust framework for embedding and
strengthening socially and environmentally responsible
behaviour and practices.
READ AND DOWNLOAD OUR SUSTAINABILITY POLICY AT
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Our responsibility in action
As I reported last year, in 2023 we received target validation
from the Science-Based Targets initiative (‘SBTi’) for reducing
scope 1, 2 and 3 emissions (business travel and employee
commuting) by 50% before 2030, taking 2019 as the base year.
SBTi also validated our commitment to ensuring that 70%
of our suppliers by spend have science-based targets in place
by FY2027. Over the last year, we have made good progress
towards meeting these targets.
I am also pleased to report that during the year we completed
a preliminary DMA, to help us meet upcoming regulations.
Double materiality addresses both financial and impact
materiality. This approach expands on the single materiality
concept by requiring companies to assess not only how
sustainability issues impact their financial performance but
also how the company’s operations affect society and the
environment. You can read more about the DMA on page 2.07.
Our DMA will be assessed regularly to provide a fuller picture of
Intertek’s role and responsibilities in a broader societal context
and will ensure that we continue to identify evolving areas of
priority or concern for our stakeholders.
Intertek Group plc
Annual Report & Accounts 2024
2.04
Chief Executive Officer's sustainability letter Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
We also extended our third-party assurance beyond
greenhouse gas ('GHG') emissions data to include some of
our key non-financial KPIs: Total Recordable Incident Rate
(‘TRIR’), customer satisfaction via NPS surveys, employee
retention and compliance training across the organisation.
READ THE FULL ASSURANCE STATEMENT
IN THE STRATEGIC REPORT ON PAGES 1.74–1.75
We have now also been a constituent of the FTSE4Good
index for eight consecutive years, reconfirming our status
as a force for good in the world that is committed to bringing
quality, safety and sustainability to life with precision, pace
and passion. We retained our 'AAA' rating in the MSCI ESG
Ratings assessment, as well as our 'Prime' rating under ISS
ESG requirements. In addition, our ESG rating of 15.9 from
Sustainalytics and our 'B' score as part of CDP’s Climate Change
Programme highlight our commitment to sustainability.
ESG credentials
We actively participate in a range
of global environmental, social
and governance ('ESG') ratings,
indices and frameworks to
benchmark our approach against
best practice and emerging
sustainability challenges.
Intertek is rated 'Prime', fulfilling
ISS ESG's demanding requirements
regarding sustainability performance
in our sector.2
We were included in the FTSE4Good
Index for the eighth year running.
1.
msci.com/notice-and-disclaimer
2.
issgovernance.com/esg/ratings
3.
sustainalytics.com/legal-disclaimers
Intertek received a rating of ‘AAA’ in
the MSCI ESG Ratings assessment.1
Intertek’s latest ESG rating from
Sustainalytics is 15.9, indicating a
low risk of experiencing material
financial impacts from ESG factors.3
Intertek participates annually in
CDP’s Climate Change Programme.
For 2024, CDP recognised our
progress with a 'B' score.
Reducing the environmental impact of our operations
One of the most notable accomplishments in 2024 was our
significant reduction in carbon emissions. By optimising energy
use in our offices and laboratories and transitioning to cleaner
energy sources, we successfully reduced our operational
market-based emissions by 16.7% against 2023 and 47.2%
against our base year 2019.
Through the continuous monitoring of environmental
performance across our operations, we identified key areas
where we could implement more energy-efficient technologies
and improved operational processes. For example, following
the installation of a solar photovoltaic (‘PV’) project at our office
in Bangkok, Thailand is now the ninth country where we have
installed a renewable energy system at one or more sites.
Another example from the many initiatives we are undertaking
to reduce our carbon footprint is the introduction of an electric
shuttle bus service across south and east China. This service
now transports around 1,100 of our people – around 10% of
our workforce in the country – to and from work every day.
With 30 electric buses in our fleet, this is already saving close
to 1,000 tonnes of CO2 equivalent emissions each year –
and we are working with suppliers to replace more of our
petrol-powered buses with electric versions.
A new area of focus for us in 2024 has been the tracking of
water consumption. This is in response to increasing global
concerns about water scarcity, and our recognition of the
impact that responsible water management can have on
both operational efficiency and local communities.
LEARN MORE IN OUR SUSTAINABILITY DISCLOSURE INDEX
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Intertek Group plc
Annual Report & Accounts 2024
2.05
3: Financial Report
1: Strategic Report
2: Sustainability Report
Our commitment to our communities
Our businesses and our people are part of many communities
across the world. Just as they support us, we support them
through our commitment to their economic and social
development. Our businesses regularly support and engage with
local organisations and initiatives that improve the environment
and the lives of local people. Many of our employees volunteer
their time to support essential local and charitable causes that
reflect the value and diversity of our communities.
As a result, during 2024 we were active in many ways and many
places to help make communities across the planet happier,
healthier, fairer and more successful.
For example, in Australia we worked with Reconciliation
Australia to advance reconciliation between Indigenous
and non-Indigenous Australians. In doing so, we aim to help
strengthen relationships between Aboriginal and Torres Strait
Islander peoples and non-Indigenous peoples for everybody’s
benefit. We launched our Reconciliation Working Group during
the year, which meets fortnightly to help us build meaningful
community relationships via events created to raise cultural
awareness and programmes for building work skills.
In India, meanwhile, we completed during the year the first phase
of a project designed to give more than 40,000 young people in
rural Gurugram and Mumbai access to the high-quality science,
technology, engineering and mathematics ('STEM') education
that employers are increasingly expecting from their recruits.
Phase one saw more than 20,000 students benefit from the
Intertek India programme, which also involved training teachers
and upgrading infrastructure.
We also took decisive action in Ghana, where communities in the
Volta Region were suffering from the aftermath of the country’s
biggest hydroelectric dam having overflowed in 2023. On the
advice of local government representatives regarding how to
make the biggest positive impact, a team from Intertek Ghana
visited three schools in Awusakpe, Adutor and Adidome – not only
providing essential items from desks and chairs to stationery and
textbooks, but also encouraging the students to dream big and
work hard towards their goals.
Empowering our amazing people to be ever better
During the year, we continued the Champions engagement
process we launched in 2023, carrying out another two
employee surveys to allow our teams to better track their
progress and take positive steps through team action planning.
The level of participation in these surveys has continued to grow
over time, thanks to our global HR teams providing our managers
with the knowledge and resources to explain the process and its
importance more effectively to their teams.
We also continued to build on the MOSAIC programme we
launched in 2023, to help everyone understand the incredible
power of diversity across our global workforce. Our team of
ingenious, caring and trusted colleagues is a rare and unique
Intertek property that we must do everything in our power to
leverage: MOSAIC has become an essential ongoing resource
for the business.
We also expanded the 10X Leadership programme that we
launched in 2019, widening the number of participants involved
in the programme’s workshops and seminars to more than 600
colleagues. At these events, I share my leadership experience
and people-centred approach to help participants develop their
own leadership styles.
Employee safety and wellbeing is a fundamental priority
at Intertek, and I was delighted to see that levels of Hazard
Observations across our sites increased for the fifth consecutive
year. This reflects not only greater levels of activity across our
sites, but also greater overall awareness and reporting of health
and safety-related issues.
I was also very pleased to see that our level of employee
engagement, measured against our Intertek ATIC Engagement
Index, reached a new height of 91 (up from 87 in 2023).
This is particularly important to me, as strong engagement
is an essential factor in driving sustainable growth and value
for all stakeholders. I am also pleased to report that our
voluntary permanent employee turnover hit a five-year
low of 11.2% (2023: 12.3%).
READ MORE ABOUT HOW WE CREATE
POSITIVE IMPACTS IN THE COMMUNITIES
WHERE WE OPERATE ON PAGE 2.49
Chief Executive Officer's sustainability letter Continued
READ MORE ABOUT OUR PEOPLE AND
CULTURE ON PAGE 2.13
240+
Community projects our employees participated in –
focusing on education, giving back to local communities
and preserving our environment
17, 299
Hours volunteered to support community projects
Build Back Ever Better
Launched in 2021, BBEB.com is a digital platform where
anyone can share content and stories to inspire others.
#BBEB aims to create a truly Glo-cal community-based
movement to help and influence everyone around the
world to create their own local community space in their
local language to inspire friends, family and public
institutions to Build Back an Ever Better world.
Three years on, our multilingual site carries thousands
of powerful stories from across the world, highlighting
inspirational initiatives from individuals, groups,
communities, organisations and companies, all with the
ambition of creating positive change by demonstrating
what can be achieved with the right determination,
focus and energy.
JOIN BBEB.COM TODAY
Sustainability Disclosure Index
The 2024 Intertek Sustainability Disclosure Index is
complementary to our published reports and sets out
how our latest disclosures map to our own Total
Sustainability Assurance standards, the Global
Reporting Initiative (‘GRI’) and applicable Sustainability
Accounting Standards Board (‘SASB’) requirements.
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Intertek Group plc
Annual Report & Accounts 2024
2.06
Chief Executive Officer's sustainability letter Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Looking ahead: the power of
amazing in 2025 and beyond
As we look to the future, I know Intertek’s unwavering
commitment to Sustainability Excellence will continue
to guide us as we navigate the evolving landscape of
2025 and beyond. Our dedication to quality, safety and
sustainability remains at the heart of everything we do,
empowering us to make a positive impact on the world.
Together with our amazing people around the world and
our valued stakeholders, we will harness the power of
our innovative solutions and global expertise to create
a brighter, more sustainable future. By fostering a
culture of excellence and collaboration, we will not only
meet but exceed the expectations of our clients and
communities, ensuring that we remain a trusted
partner in their sustainability journeys.
As part of our ongoing commitment, we will build on
our success in implementing our DMA to align with
upcoming regulations. This alignment will further
enhance our approach and progress, reinforcing our
position as a leader in sustainability.
All of us at Intertek look forward to seizing the
opportunities ahead with determination and
enthusiasm, knowing that our efforts today will shape
an ever better tomorrow. With our shared vision and
unwavering commitment, we will continue to unleash
the power of amazing and build a truly sustainable
world for generations to come.
Our Sustainability solutions are making
the world better, safer and more sustainable
The global scale, breadth and reach of our operations and
services mean that we are making the world a better, safer
and more sustainable place for all. And this position is getting
stronger as organisations face increasing challenges across
their value chains. At the same time, consumer expectations of
corporate responsibility continue to grow. And while all our work
is enabling us to help clients improve their businesses in many
ways, demand for risk-based solutions focused on operational
and corporate sustainability continues to increase.
Sustainability services have been the core of our global business
for over 100 years. Our clients trust us to ensure the quality,
safety and sustainability of their businesses across their entire
value chain to protect their brands and to help them gain
competitive advantage. Today, we’re better placed than ever
to help organisations demonstrate their commitment to
sustainability, manage risk and resilience, and act responsibly.
Our unique industry-leading range of Total Sustainability
Assurance services is at the heart of these, comprising three core
elements: Intertek Operational Sustainability Solutions, Intertek
ESG Solutions, and Intertek Corporate Sustainability Certification.
The deep science-based expertise of our amazing sustainability
teams is at the heart of our TSA approach across all of our
solutions. These can cover precisely what is needed, from
consulting and gap assessments to regulatory reporting
and corporate certification, all focused on driving real-world
improvements across clients’ operations and value chains.
The year saw many incredible instances of our customers
directly leveraging our services to become more sustainable
businesses in their own right. One example was our work
with long-term customer Marks & Spencer (‘M&S’), for whose
products we have developed a series of rigorous tests. In just
one example, we worked together in 2024 to make school
uniforms better and more durable for children, parents and the
planet. Uniforms are typically worn 50 times more than other
garments, and their durability is a key factor not just in their
quality but in their environmental impact too.
On a very different front, we took a significant step forward in
our commitment to advancing sustainable practices in aviation
when Intertek Caleb Brett helped to achieve the first delivery of
Neste MY Sustainable Aviation Fuel (‘SAF’) to Singapore’s Changi
Airport. Made from renewables including used cooking oil and
animal fat wastes, SAF is a key solution in the aviation industry’s
accelerating push for sustainability.
In Argentina, we carried out the country’s first independent
climate risk and vulnerability assessment. This was for leading
natural-gas transportation company, Transportadora de Gas
Sur S.A. ('TGS'), which is responsible for transporting more
than 60% of the gas produced in the country.
As a company listed on the New York Stock Exchange, TGS
needed to update its continuity plan to show investors how it
plans to evaluate and mitigate the impacts of extreme climate
events over the next 15 years. Our Buenos Aires-based
Sustainability team called on our services and global expertise to
create a study evaluating the vulnerabilities associated with 45 of
the company’s assets, including nearly 10,000km of pipelines and
40 compression stations. As a result, TGS is now better placed to
understand and mitigate the impacts of severe climate events.
In 2024, we also won a research project to provide hydrodynamic
modelling expertise as part of the Welsh Government’s Tidal
Lagoon Challenge, which aims to quantify the potential benefits
to be gained from harnessing the country’s tidal energy
potential. The data we produce will be fed into Cardiff University,
where the economic value of tidal lagoons will be calculated as
a key step towards implementing the world’s first projects
unleashing latent gigawatts of installed capacity.
André Lacroix
Chief Executive Officer
READ MORE ABOUT OUR WORK WITH
OUR CUSTOMERS ON PAGE 2.27
Intertek Group plc
Annual Report & Accounts 2024
2.07
3: Financial Report
1: Strategic Report
2: Sustainability Report
Double materiality
At Intertek, we recognise
the importance of identifying,
prioritising and validating
the key environmental, social,
and governance ('ESG') topics
relevant to our business and
our stakeholders.
In 2019, we conducted our first independent materiality
assessment, with subsequent annual reviews conducted
to confirm its validity.
In 2024, we completed a preliminary Double Materiality
Assessment ('DMA'), in preparation for upcoming regulations.
Double materiality integrates both financial and impact
materiality. This approach expands on the single materiality
concept by requiring companies to assess not only how
sustainability issues impact their financial performance
but also how the company’s operations affect society and
the environment.
For our own assessment, we used a third-party tool
which helped us identify the ESG topics which we
believe have the greatest impact materiality and/or
financial materiality on our business and the greatest
level of concern to stakeholders along our value chain.
Our approach
Double
materiality
approach
Impact
materiality
(inside-out)
Planet
and society
Financial
materiality
(outside-in)
The data sources used for the financial and impact
materiality include publicly available corporate reports,
sustainability reports, mandatory regulations and
voluntary initiatives, as well as coverage in the news.
Assessing these key areas enables us to prioritise and
focus upon the most material topics and effectively address
these in our policies, programmes, targets and actions.
Intertek Group plc
Annual Report & Accounts 2024
2.08
Our approach Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Our DMA will be assessed regularly to
provide a fuller picture of Intertek’s role
and responsibilities in a broader societal
context and will ensure that we continue
to identify evolving areas of priority or
concern for our stakeholders.
With a view to complying with future
sustainability reporting directives,
Intertek will take stakeholders’ opinions
and expectations into account to feed
our analysis of impacts, risks and
opportunities ('IROs') through the lens
of impact materiality and financial
materiality, to determine the material
issues on which the company will have
to report.
READ MORE ABOUT HOW WE ASSESS AND
MANAGE OUR RISKS ON PAGES 1.57–1.64
IN REPORT 1
High +
High +
High
High
Medium
Medium
Low
Financial
Material issue
Impact
Low
Low -
Low -
Environmental topics
GHG emissions and reductions
Transition to renewable energy
Climate change risks and management
Energy use, conservation and reductions
Social topics
Fair and inclusive workplace
Human rights
Occupational health and safety
Social inclusion
Employee acquisition, talent
Employee engagement and satisfaction
Governance topics
Business ethics
Cybersecurity and information security
Data privacy management
Supply chain management
Customer satisfaction
Corporate reputation
Product and service safety and quality
Investor relations
Source: Datamaran
Enterprise
Security
Quality &
Safety
People &
Culture
Communities
Environment
Governance
Compliance
Financial
Risk
Management
Communications
& Disclosures
Intertek Group plc
Annual Report & Accounts 2024
2.09
Our approach Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Total Sustainability
Assurance ('TSA')
standards
The TSA programme is based
on ten corporate sustainability
standards that we believe
define a truly sustainable
organisation today.
End-to-end systemic sustainability approach
We believe that these TSA standards are the most
comprehensive sustainability standards currently available,
forming the foundation of our approach, and challenging us to
view our processes and procedures through this end-to-end lens.
Our ten TSA Corporate Sustainability standards demonstrate
actionable, comparable, consistent and reliable disclosures
and provide assurance beyond ESG disclosures. They recognise
that truly sustainable solutions must address the important
operational aspects of every company, to cover environment,
products, processes, facilities, assets, systems, corporate
policies and stakeholder engagement.
To embed the requirements of all ten standards and review our
progress, we carried out a self-assessment for each standard
followed by a gap assessment audit of our corporate head office
and a selection of operational sites that are representative of
the mix of business lines and activities within our operations.
TO SEE MORE ON THE TSA STANDARDS VISIT INTERTEK.COM/SUSTAINABILITY
p2.13-2.59
p2.56
p2.60
p2.57
p2.38
READ MORE
IN REPORT 3
p2.59
p2.49
p2.13
The audit team comprised subject matter experts from our
Business Assurance business line, which benchmarked our
sustainability programmes against the requirements of
each standard.
Performance is benchmarked against requirements and based
on maturity. On completion of the benchmarking step the
audit team reported their findings and the extent to which
corporate sustainability processes are in place, effective and
meeting the intent of the standard.
The outcomes have further fed into our ever better approach
and provided valuable insights which will enable us to align
our sustainability initiatives and priorities further.
p2.13-2.59
People and Culture
with Customers
Working
Environment
Communities
Responsible Business
p2.13
p2.27
p2.38
p2.49
p2.56
Intertek Group plc
Annual Report & Accounts 2024
2.10
3: Financial Report
2: Sustainability Report
1: Strategic Report
Our Sustainability Excellence strategy
Sustainability Excellence
in every area of our
operations
Our Purpose is bringing
quality, safety and
sustainability to life
and our Sustainability
Excellence strategy
is fundamental to
our business.
We ensure we create positive impacts through
the work we do for our clients and we make
progress on our own sustainability agenda by
engaging our colleagues in our ever better
journey. We do this through implementing
detailed site-by-site action plans, accurate
sustainability performance measurement
and strong governance. We hold ourselves to
account in line with our own TSA standards,
international best practice, the expectations
of our stakeholders and future regulations.
People and Culture
Progress in 2024
• During 2024, we continued to focus on introducing and
expanding initiatives which build on our culture of trust
and inclusivity.
• We launched our IGNITE initiative to empower and inspire
our regional and business line sales leaders to better
support our strategic growth objectives and drive
excellence across the Total Quality Assurance industry.
• We also launched Lucie Partners, a new training platform
for non-employees representing Intertek.
• We continued to develop and embed key initiatives launched
in 2023, including: the Champions engagement programme;
MOSAIC, our diversity, equity and inclusion programme; and
iHazard, our safety awareness campaign.
• We ran the sixth and seventh editions of our hugely
successful 10X Coaching programme, certifying internal
leaders as 10X Coaches. Over 150 senior executives have
now benefitted from this coaching.
• We deepened the impact of our global 10X Talent Planning
processes at every country, business line and site level.
Priorities in 2025
Our people bring exceptional technical skills, expertise and
their passion and energy to our business and we will continue
to focus on keeping them safe and engaged, offering them
exciting personal growth opportunities.
Our goal is to have fully
engaged employees
working in a safe
environment.
Link to principal risks in Report 1:
Material issues
• Fair and inclusive workplace
• Occupational health and safety
• Social inclusion
• Employee acquisition, talent
• Employee engagement
and satisfaction
2024 ATIC Engagement
Index score
Number of leaders who attended
10X Leadership events in 2024
1 2 3 4 5 6 7 8 9 10 11
91
175
(2023: 87)
(2023: 180)
READ MORE ON PAGES 2.13–2.26
Intertek Group plc
Annual Report & Accounts 2024
2.11
Our Sustainability Excellence strategy Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Link to principal risks in Report 1:
1 2 3 4 5 6 7 8 9 10 11
Link to principal risks in Report 1:
1 2 3 4 5 6 7 8 9 10 11
Progress in 2024
• We continued to work closely with our customers to
develop leading-edge end-to-end Total Sustainability
Assurance solutions.
• During 2024, we conducted an average of 6,036 customer
interviews each month, providing deep insights into what
our customers need and want.
Ensure our customers
can operate safely and
sustainably.
Priorities in 2025
We will continue to provide science-led services and
leading-edge innovations to give our customers the
solutions they need to overcome their own risks and
challenges in quality, safety and sustainability, enabling
them to power ahead with confidence.
Material issues
• GHG emissions and reductions
• Transition to renewable energy
• Climate change risks
and management
• Customer satisfaction
• Product and service safety
and quality
Innovative sustainability services
have been core to our global
business for more than
Working with Customers
Environment
100 years
16.7%
Progress in 2024
• We continued to embed our Sustainability Excellence
approach across the business to empower our colleagues
to take ownership of reducing their own carbon footprint.
• By optimising energy use in our offices and laboratories
and transitioning to cleaner energy sources, we reduced
our operational market-based emissions by 16.7% against
2023 and 47.2% against our base year 2019.
• We reviewed and revised our Environmental and
Climate Change policy.
Decarbonise our
business by 2050.
Priorities in 2025
We will continue to focus on minimising environmental
impacts from our operations, in compliance with
regulations, and to live up to the requirements and
expectations of our key stakeholders.
Material issues
• GHG emissions and reductions
• Transition to renewable energy
• Climate change risks
and management
• Energy use, conservation
and reductions
Operational emission reductions
2023–2024
Operational emission reductions
2019–2024
47. 2%
READ MORE ON PAGES 2.40–2.41
READ MORE ON PAGES 2.27–2.37
READ MORE ON PAGES 2.38–2.48
Intertek Group plc
Annual Report & Accounts 2024
2.12
Our Sustainability Excellence strategy Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
READ MORE ON PAGES 2.56–2.59
READ MORE ON PAGES 2.49–2.55
Link to principal risks in Report 1:
1 2 3 4 5 6 7 8 9 10 11
Link to principal risks in Report 1:
1 2 3 4 5 6 7 8 9 10 11
Communities
Progress in 2024
• Our employees participated in over 240 community projects
around the world this year, with 17,299 hours volunteered.
Create positive impacts
in the communities
where we operate.
Priorities in 2025
We are passionate about making a difference and
will continue to take active responsibility to support
the communities and environments where we operate
to create sustainable growth for all.
Material issues
• Climate change risks
and management
• Social inclusion (community
engagement, learning
and development)
(2023: 150+)
Community projects in 2024
Eligible employees (rounded to the
nearest 0.1%) who completed our
Code of Ethics training in 2024
240+
100.0%
Responsible Business
Progress in 2024
• We continued to develop our best practice compliance
programme to ensure that Intertek operates with the
highest standards of compliance and ethical business
practices.
• We reviewed and revised our Labour & Human
Rights policy.
• We made progress on our SBTi-validated near-term
target of ensuring that 70% of our key supply chain
partners have set their own science-based climate
targets by 2027.
Uncompromising on
quality and compliance.
Material issues
• Business ethics
• Cyber security and
information security
• Data privacy management
• Supply chain management
• Corporate reputation
• Investor relations
Priorities in 2025
We will continue to further develop our best practice
compliance programme to ensure Intertek operates with
the highest standards of compliance and ethical business
practices, including through our supply chain partners.
(2023: 97.6%)
Intertek Group plc
Annual Report & Accounts 2024
2.13
3: Financial Report
1: Strategic Report
2: Sustainability Report
People and Culture
We truly value our people, and by embracing
diversity we strive to build an inclusive and
equitable organisation. Our success is based
on a culture of trust among all our colleagues
around the world. Trust is essential to
everything we do and is the cornerstone
of our approach to ‘Doing Business the
Right Way’.
Intertek people have exceptional technical skills and expertise
together with passion and energy. As a business we endeavour
to ensure that everyone feels safe, valued and able to access
exciting personal growth opportunities. We respect and protect
the rights of our people across our operations and throughout
our business relationships. We foster an environment where our
people can thrive.
Our People Strategy is all about energising our colleagues
to take our company to greater heights.
Our goal is to have
fully engaged
employees
working in a safe
environment
10X
10X is an aspirational icon designed to capture our
intent to be the best at everything we do every day.
We continue to build an open and trust-based environment
that reports and learns from safety risks and incidents. During
2024, levels of Hazard Observations increased for the fifth
consecutive year, reflecting greater levels of activity across
our sites as well as greater awareness and reporting overall.
The need for our employees to be alert in observing hazards
and near misses and reporting them immediately was
reinforced during the year through iHazard, our safety
awareness campaign.
The health and safety of our employees and contractors is the
utmost priority at Intertek. All of our businesses have robust
ES&W training programmes during our induction/onboarding
process, emergency responses procedures, intervention and
reporting of Hazard Observations, Near Misses and safety
incidents. We continue to provide appropriate personal
protective equipment and continually expand on existing
programmes and controls to improve the health, safety and
wellbeing of our colleagues.
Our target remains for our Total Recordable Incident Rate
('TRIR') to equal or be less than 0.5. This target is part of the
next phase of our ES&W cultural journey and supports our
continued aim to achieve zero lost time incidents.
Sustainability performance
Employee engagement, human rights and worker health, safety
and wellness are core to the long-term success of our business.
We strive for a sustainable workforce that is stable, engaged
and committed to the organisation, our goals and objectives.
We made strong progress in 2024, building upon and
launching people-focused programmes designed to make
the workplace ever better for everyone at Intertek. We never
stop challenging ourselves to create ever better ideas for our
people, customers, suppliers, communities and shareholders.
Ensuring the health, safety and wellbeing
of our employees
Through having fully engaged employees working in a safe
environment we will be able to deliver our Total Quality
Assurance ('TQA') Customer Promise.
Our aim is to encourage a culture of proactive employee
safety and wellbeing ('ES&W') awareness, industry best
practice and continuous improvement to increase ES&W
performance globally. Our Group-wide ‘General Safe Working
Guidelines’ provide the basis for a common and aligned ES&W
standard for all Intertek sites.
This includes a dedicated fire warden, first aider and ES&W
representative at each location. These representatives are
empowered not only to investigate incidents and implement
preventative and corrective actions, but also to disseminate
safety information through training and targeting
continuous improvement.
We firmly believe that to drive progress, the performance
indicators we track must focus on the diligent implementation
of robust processes and actions that lead to building a culture
of proactive ES&W awareness.
With dedicated reporting each month for country and
business lines, supplemented by inclusion in our 5x5 analysis
for every site, our global network of ES&W representatives
support continuous improvement. By improving our ES&W
communication network, we not only have a known contact
person in each country and location but also a means of
channelling and sharing information and programmes globally.
2024
2023
Change
Hazard Observations
30,307
25,847
17%
Near Misses
2,572
2,912
(12%)
First Aid
630
795
(21%)
Lost Time Incidents
111
122
(9%)
Medical Treatment Incidents
78
101
(23%)
Fatalities
0
0
–
TRIR
0.42
0.51
(9bps)
In action
Intertek Group plc
Annual Report & Accounts 2024
2.14
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Leading with
Kindness
In a changing world where hybrid working,
dispersed teams and remote roles are
becoming increasingly normal, it is essential
to ensure that all colleagues are included
when it comes to wellbeing.
Kindness, our global wellbeing programme, encourages our
colleagues to do the simple things that help them build their
personal strength and resilience. Available to all Intertek
employees, it is designed to help us re-energise, boost our
wellbeing and unleash our potential. The programme offers
six modules under the theme 'Be Kind to Your Mind': making
connections, energising ourselves, mindpower, staying
positive, building resilience and feeling supported.
Our global HR team builds on this by organising and leading
in-person activities for those who can access an office or
communal workspace. These range from health check-ups
and activities which energise the body and mind, to team
social days and charitable initiatives.
At Intertek, the safety and wellbeing of our people is our
number one priority. And only by having fully engaged
employees working in a safe environment can we deliver
on our Purpose and Customer Promise.
We aim to make Kindness accessible to
100%
of employees around the world.
Intertek Caleb Brett holds Safety
Week, featuring iHazard
As part of our commitment to ES&W,
Intertek Caleb Brett held a Safety Week for
colleagues in the USA. The event engaged
colleagues across all Caleb Brett sites in the
country to raise awareness and share ideas
on key safety and wellbeing concepts,
supporting the business line’s goal:
‘Everyone Goes Home Safely, Every Day’.
In action
Workplace mental health
At Intertek, we consider the health, safety and wellbeing, including
the mental health, of our employees, clients and third parties
connected with our business, to be of paramount importance.
We promote a culture of openness around mental health
and wellbeing. This culture is driven by our Group Executive
Committee through our Group Executive Vice President ('EVP'),
Human Resources ('HR') and rolled out across the business by
our regional HR Directors and their teams of experienced
HR professionals.
To support this approach, we have an employee assistance
programme in every country we operate in. These programmes
can offer a broad range of support services such as counselling
and mental health and wellbeing support. We also have a range
of additional resources on our employee intranet, as well as our
global wellbeing programme Kindness. Our local HR networks
tailor our support programmes to cater to the unique needs in
their regions.
Each day, our teams joined a live webinar on a specific safety
topic, followed by group discussion and an interactive activity.
On completion of each activity, our colleagues provided
feedback on their key takeaways and offered suggestions
to help improve safety at their respective sites and across
Caleb Brett more generally.
One of the key topics covered during Safety Week was
iHazard, our global safety awareness campaign launched
in 2023 to ensure that all colleagues are alert in observing
and reporting hazards, near misses and other incidents
immediately. We are constantly improving the way we
monitor our global safety performance, and by continuously
reporting Hazard Observations and Near Misses, we are
better able to take proactive steps to prevent incidents.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.15
Sustainability performance Continued
People and Culture Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Engaging our employees
We reach out to prospective employees in a variety of ways,
depending on location and role, in compliance with local
regulations for fair recruitment practices and equal opportunities.
We post vacancies on our website at intertek.com/careers and
employ various ways of sourcing talented people. These include
recruitment agencies, social media, printed advertisements,
employee referrals, professional bodies and associations, schools,
colleges and universities. We are committed to recruiting talent
local to our operations where possible. To offer career growth and
progression within the Group, we seek wherever possible to fill
vacancies from within the business first.
We fully recognise the importance of employee engagement in
driving sustainable performance for all stakeholders. In order
to measure our employee engagement, we follow the Intertek
ATIC Engagement Index, which is based on the key drivers
of sustainable value creation within our differentiated ATIC
business model, and which measures engagement on a monthly
basis in every operation with the following metrics: Net Promoter
Score, customer retention, quality, voluntary permanent
employee turnover and Total Recordable Incident Rate.
In 2024, our ATIC Engagement Index score increased to
a new high of 91 (2023: 87), reflecting high engagement
levels across the Group. We will continue to target an ATIC
Engagement Index score of 90 or more moving forward.
During the year, our voluntary permanent employee
turnover averaged a five-year low rate of 11.2%
(2023: 12.3%). As we progress our People Strategy,
we will continue to aim for a rate below 15%.
INTERTEK.COM/CAREERS
We post vacancies on our
website at intertek.com/careers
and employ various ways of
sourcing talented people
Intertek Brazil
certified as
‘Great Place To Work’
Intertek Brazil has been
awarded the Great Place to Work
Certification™ in recognition of creating
an outstanding employee experience.
Great Place to Work® is the global authority on workplace
culture. Organisations worldwide, including all companies
on the ‘Fortune 100 Best Companies to Work For’ list,
collaborate with Great Place to Work® to gauge how
effectively their leaders foster a positive employee
experience. Companies are scored on both employee
feedback and independent analysis.
For Intertek Brazil, the certification highlights our
commitment to fostering an outstanding workplace
environment that promotes a healthy competitiveness,
customer orientation, inclusivity and sustainability. Our
impactful wellness initiatives support both mental and
physical health. In addition, our laser focus on putting
our people at the centre of our strategy strengthens our
position as an employer of choice, enabling us to attract
and retain the best talent.
Intertek Brazil is our second Latin American country to
achieve Great Place to Work Certification™, following
Intertek Colombia in 2023.
Annual Report & Accounts 2024
Intertek Group plc
2.16
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Champions programme goes
from strength to strength
Over a year on from its launch, our
Champions engagement programme
continues to play an increasingly important
role in enabling open and constructive
dialogue within our teams around the world.
Champions, led by our managers and organised in
partnership with Gallup, the leading expert in the science of
employee engagement, gives all colleagues the opportunity
to anonymously rate statements precisely crafted to
measure employee engagement. Our managers then share
the results with their teams and work together to agree
actions for improved engagement, including follow-up
meetings to track progress.
In action
During 2024, we organised two rounds of Champions in
March and October, with participation increasing on each
occasion. We saw a significant increase in completion of
the survey’s October round after providing managers with
additional knowledge and resources to more effectively
discuss the process and its importance with their teams.
Other tools to support our teams include an explainer video
and a dedicated training programme, both made available
before Champions first launched in September 2023.
The Champions engagement programme will continue to run
on a regular basis to support our goal of taking engagement
within our teams to the highest levels and supporting
increased satisfaction and wellbeing across the company.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.17
Sustainability performance Continued
People and Culture Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Talent management
To seize the exciting growth opportunities arising from our
TQA value proposition, we continually invest in the growth
of our people. We aim to hire, inspire, engage and retain
the best people to power our AAA differentiated growth
strategy, providing the skills to grow our business.
With an ever better mindset, we encourage our people to
continuously learn new skills that help advance their careers
and deliver our TQA Customer Promise. Our 10X Talent Planning
process is critical to our future success in delivering our strategy
and fostering our culture and Values throughout Intertek.
Every new joiner at Intertek goes through our 10X Onboarding
experience on Lucie, our global learning management system.
The experience provides them with all the information they need
to greatly enhance their understanding of Intertek, navigate our
company and learn how they can contribute to 'Doing Business
the Right Way'.
The Board as a whole is responsible for ensuring that
appropriate human resources are in place to achieve our
long-term strategy and deliver sustainable performance.
Global talent and succession planning for the Group
Executive Committee are discussed regularly.
In employment-related decisions, we comply with all applicable
anti-discrimination requirements in the relevant jurisdictions.
We have zero tolerance for discrimination and harassment.
We are an equal opportunities employer and offer career
progression to all. Requests for reasonable adjustments
to support employee wellbeing and personal situations
are managed on a case-by-case basis during recruitment,
onboarding, career development, performance reviews
and return-to-work processes.
Reward and recognition
Reward plays a key role in attracting, motivating and
retaining talent. Intertek is compliant with minimum wage
and mandatory social contributions requirements in all
jurisdictions where we operate.
At Intertek, remuneration for all employees follows the
same policy and principles as for the senior executives.
The Remuneration Committee has oversight of this.
Read more on pages 2.94-2.125.
We depend on local management to define and maintain
competitive compensation practices that appeal to both
existing and future talent.
All employees are remunerated in accordance with local policies
and guidelines. The remuneration comprises elements which are
fixed, and in some cases, variable. The fixed elements are base
salary and benefits including pensions, where applicable. The
variable elements include incentives, both short- and long-term.
Across the world, employees who are eligible for a bonus follow
the same metrics, thus creating alignment on our strategic goals
throughout the organisation.
Recognition plays an important part at Intertek, and we take
every opportunity to recognise great performance across the
business through our internal channels.
Our Purpose
Bringing quality, safety and sustainability to life.
Our Vision
To be the world’s most trusted partner for Quality
Assurance.
Our Values
• We are a global family that values diversity.
• We always do the right thing. With precision,
pace and passion.
• We trust each other and have fun winning together.
• We own and shape our future.
• We create sustainable growth. For all.
Taking our colleagues
on a 10X journey
‘My 10X Journey’ is our approach to annual
appraisals, built on quality, performance
and growth conversations held throughout
the year between our employees and
their managers. These conversations
clarify expectations, foster continual
improvement and inspire our colleagues
around the world to perform at their best.
From initial development conversations focused on results,
learnings and past performance, goals and growth plans
are created, monitored and discussed throughout the year.
This ensures that all employees are clear on their goals and
performance, as well as providing them with an effective
tool for managing their career development.
In 2024, building on our commitment to creating an
environment where all our people can thrive, we made
some enhancements to the My 10X Journey platform.
We streamlined the process for employees and provided
additional functionality for managers, helping them to better
monitor their teams. These efficiencies help to facilitate richer
discussions between each employee and their manager.
My 10X Journey enables each of our
employees to create and track their
own unique career pathway. This
simple process is a constant dialogue
that enables personal growth and
supports high performance throughout
our business.”
Tony George
EVP, Human Resources
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.18
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Lucie Partners supports training
for non-employees
In May, we launched Lucie Partners, a new
learning management system developed
solely for training non-employees, including
contractors and temporary workers.
At Intertek, we are on a continuous journey to improve
the tools and applications available to our people to grow
and succeed in their careers. Lucie Partners builds on that
commitment by ensuring that all non-employees have
the critical knowledge and skills needed to contribute
effectively to our projects and deliver the high-quality
service we are known for.
Lucie – our global learning management system
The new platform complements Lucie, our global learning
management system, which is available to all Intertek
employees worldwide and gives them access to learning
resources that support the achievement of our business
goals. Lucie covers topics such as compliance, safety,
technical training, operational training and much more.
It also features our 10X Onboarding experience, which was
launched in 2023 to provide new colleagues with all the
information they need for a successful career at Intertek.
In 2024, our colleagues around the world completed
103,303
hours of training on Lucie.
Monthly
recognition
for AAA teams
During 2024, we continued to recognise our
business line, country and regional teams
for their outstanding achievements through
our monthly ‘AAA Stars’ programme.
Launched in 2023 after we refreshed our AAA
differentiated growth strategy, AAA Stars celebrates our
top-performing teams across the following categories:
financial performance, Net Promoter Score, employee
turnover, net zero performance, and ES&W.
Throughout the year, we recognised 1,493 teams which
achieved strong results across all, or the vast majority
of, categories.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.19
Sustainability performance Continued
People and Culture Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Our ‘You’ll Be Amazed’ highlights
Our ‘You’ll Be Amazed’ campaign continued
to thrive in 2024, building on its success
in showcasing the incredible breadth of
expertise and contributions made by our
people globally. Through this campaign, we
reinforced awareness of the critical role
Intertek plays in ensuring quality, safety,
sustainability and innovation across
industries worldwide.
Throughout 2024, we highlighted impactful stories of
our teams’ work, including advancements in sustainable
manufacturing, groundbreaking testing for next-generation
alternative fuels, and enhancing safety protocols for electric
vehicles and autonomous technologies. The campaign
showcased our commitment to supporting global progress,
from safeguarding renewable energy infrastructure to
ensuring that the food and water supply chain remains
secure and reliable.
We continued our monthly story competition, which
recognises the best and most engaging stories for promoting
engagement and fostering pride among our colleagues, and
we introduced weekly recognition for the top-performing
content. This initiative brought even more diverse stories
from our global teams, enhancing our social media presence
and inspiring stakeholders with powerful examples of how
Intertek makes a difference daily.
Here are just a few of our inspiring ‘You’ll Be Amazed’ stories from 2024:
Skills development
As a provider of quality, safety and sustainability assurance
services, Intertek relies on a skilled workforce. We are
committed to offering attractive career development
opportunities and believe in personal growth for every
employee. We know that when each of us is growing and
developing, we move faster along our good to great journey.
Over the years we have made great progress with
our leadership development agenda as well as in
enhancing the tools and applications available to enable
people to grow and succeed in their careers.
We ensure that all employees receive adequate coaching,
development and training to be fully competent to carry
out their roles. This is supported by our many Group-wide
programmes including talent planning processes, my 10X Journey
that provides structure for individual growth planning, our 10X
Energies that help define winning behaviours, and our Lucie
training to help address key development and training needs.
The individual learning journey of each employee is
supported with diverse learning opportunities that are
continually refined based on business needs, employee
feedback, best practices, trends and new technologies.
There are many programmes across the business, providing
in-house and external learning opportunities. We recognise
that the wide range of sectors we support require different
types of technical training, education and support.
We offer:
• apprenticeships;
• internship programmes;
• college degrees;
• professional qualifications;
• formal and informal workshops and seminars;
• exciting cross-functional roles;
• leadership training programmes; and
• 10X Coaching opportunities with internally certified coaches.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.20
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
10X Leadership programme
During 2024, 175 senior leaders from 29
different countries took part in our 10X
Leadership programme led by our Chief
Executive Officer André Lacroix.
Through this bespoke series of workshops and seminars,
attendees explore how a humanistic approach to leadership
can help to empower employees with a sense of purpose
and unlock their unique individual talents. André highlights
this by sharing insights from his career across leading global
brands to help advance the leadership styles and personal
growth of our leaders at Intertek.
Since the 10X Leadership programme launched in 2019,
we have held seven in-person 10X Leadership events
across Greece, Italy, the UAE, the UK and the USA,
with more than 600 colleagues taking part.
By placing people at the heart of our
growth strategy we can help to build
businesses that create sustainable
value for all our stakeholders.”
André Lacroix
Chief Executive Officer
10X Coaching programme
Our in-house 10X Coaching programme
continues to grow, supporting colleagues
and helping us create a culture and
environment where people can unleash
their full potential.
Our 10X Coaching programme pairs leaders from across
our business with trained in-house coaches to facilitate
transformative discussions that support them in their
leadership development. These coaching sessions offer
a confidential and safe environment for participants to
examine their challenges and determine effective solutions.
We offer 10X Coaching to all 10X Leadership participants.
In 2024, we certified a new group of 10X Coaches, each
having received comprehensive training and internal
certification in the techniques of high performance 10X
Coaching. To ensure high levels of inclusion, our 10X
Coaches are spread across more than 20 countries
and speak multiple languages.
Testimonials from coachees:
I was able to come up with fresh
solutions and find the best path
forward myself, simply by thinking
about the questions asked by my
10X Coach. This experience was
truly incredible.”
10X Coaching provided me with a
confidential and safe space to explore
challenges and understand how I can
reframe my approach for success.”
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.21
Sustainability performance Continued
People and Culture Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Developing talent at every level
At Intertek, our global teams are the driving
force behind our efforts to bring quality,
safety and sustainability to life every day.
We are therefore committed to developing talent at every
level, whenever we can. From annual conversations on
growth and development for all colleagues, to opportunities
to take on new roles and responsibilities, we aim to create
an environment where our people can progress and broaden
their horizons.
One of the ways we do this is by providing opportunities for
colleagues to transfer their skillsets to different parts of the
business. This not only opens the door to new challenges and
further development for those colleagues but also helps us
to promote diversity of thinking, ensuring that we continue
to operate and innovate at the highest level.
After more than six years at the company, Anand moved
from his role in HR to lead our Intertek Inform and Assurance
services in Australia. “Since joining Intertek, I’ve moved from
line management to commercial HR, and then back to line
management. These opportunities have allowed me to gain
multi-faceted career experience and rich exposure to our
operational business, as well as building transferable skills,"
said Anand.
Rachel had been at the company for a similar amount of
time when she moved from her role in our Finance team to
her internal communications and events role. “In my previous
role, I worked closely with several functions and business
lines; now I’m able to draw on that experience to enhance
our communications and HR efforts on a global scale. It’s great
to feel like you’re adding value while also learning and gaining
new skills,” commented Rachel.
Igniting the spark of ambition
In 2024, we launched IGNITE, a series
of multi-day workshops focused on
firing-up and empowering our sales
leaders across the globe in line with our
AAA differentiated growth strategy.
Led by our global leadership team, IGNITE aims to inspire
our regional and business line sales leaders through a range
of dynamic discussions, breakout sessions and executive
presentations. The carefully designed programme
empowers these colleagues to tackle challenges and
develop actionable strategies to achieve the company’s
strategic growth objectives and drive excellence across
the Quality Assurance industry.
Over the year, we held three IGNITE workshops for leaders
across our global Softlines, Hardlines, Electrical, and Caleb
Brett business lines. Following the success of the 2024
programmes, preparations are underway for further
business line and regional IGNITE events in 2025.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.22
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Diversity, equity and inclusion
At Intertek, achieving ever better performance depends on being
constantly open to pioneering new ideas that enable us to
improve what we do and how we do it. For us, this means having
an organisation that is truly diverse, equitable and inclusive.
To support our commitment to diversity, equity and inclusion
throughout the company, 100.0% of eligible employees
(rounded to the nearest 0.1%) completed our annual Code of
Ethics training in 2024 (2023: 97.6%), covering key policies and
practices related to ensuring a fair, respectful and inclusive
environment. During the year, we also delivered training and
workshops across the globe through MOSAIC, our diversity,
equity and inclusion programme, and engaged employees to
complete our unconscious bias training on Lucie, our global
learning management system.
flexible working and performance management. Our Inclusion
and Diversity policy facilitates a culture of inclusiveness
where people are able to perform at their best, and where
their views, opinions and talents are respected, harnessed
and not discriminated against.
We are committed to maintaining the highest standards
of fairness, respect and safety.
MOSAIC: embracing
the power of diversity
It has been over a year since we launched
MOSAIC, our global diversity, equity and
inclusion programme. Through practical
workshops, team activities and a range
of valuable resources, MOSAIC encourages
our people to embrace the power of their
differences as we work together to bring
quality, safety and sustainability to life.
During 2024, our colleagues around the world organised
and engaged with a wide range of MOSAIC initiatives,
strengthening team bonds, and opening hearts and minds.
In focus: Middle East and Africa
In addition to our MOSAIC workshops, across the Middle East
and Africa our teams engaged on a range of important topics,
including culture, employee wellbeing and community initiatives.
Our colleagues united for a wide variety of cultural
celebrations, including Diwali, Ramadan, Onam and Gargee’an,
while also recognising significant annual occasions such as
UAE National Day, International Women’s Day and Emirati
Women’s Day.
Beyond these cultural and recognition events, our teams
participated in onsite medical camps and spearheaded
awareness campaigns on critical health issues like breast
cancer and heart health. Numerous employees also gave
blood during donation campaigns across the region.
In addition, our teams volunteered their time to support
charity events, environmental cleanliness drives and tree
planting initiatives. These collective actions not only
contributed to the improvement of local communities,
but also strengthened team bonds and reinforced our
sense of purpose and unity as colleagues came together
through shared experiences.
At Intertek, we have colleagues from over 100 countries
– all with different backgrounds, cultures and beliefs, and
all committed to respecting and understanding the needs
of each other, as well as those of our customers, suppliers,
shareholders and communities. Together, our people are
a rich mosaic of diverse and talented experts, passionate
about building an ever better world.
READ MORE ABOUT BOARD LEADERSHIP
AND DIVERSITY ON PAGES 2.61 AND 2.85
Intertek has a history that goes back over 130 years, evolving from
the combined growth of a number of innovative companies from
around the globe. Diversity has always been at the heart of who
we are and will continue to provide the power behind our success
in the future. With team members from over 100 countries –
all with different backgrounds, cultures and beliefs – our diverse
workforce makes us the leading company we are today.
To achieve the optimum mix of skills, backgrounds and experience,
workforce diversity needs to go beyond discussing the percentage
of women to also include other diversity indicators. As a business
we want to ensure that we have the right capabilities to deliver
our strategy. We recognise the value that individuals of different
backgrounds and capabilities bring to the business.
Our diverse workforce helps us to understand, communicate
and trade with our vast client base through their understanding
of local issues and cultures. They add value in assuring our
services are tailored to our customer needs, which underpins
sales growth, customer retention and satisfaction.
We demonstrate that we are an inclusive and diverse global
family by applying all employment policies and practices in a
way that is informed, fair and objective. This covers all policies
relating to recruitment, promotion, reward, working conditions,
In action
Intertek Group plc
Annual Report & Accounts 2024
2.23
Sustainability performance Continued
People and Culture Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Gender diversity
We are determined to develop and retain more women in
senior roles.
Our goals
Improving gender balance is critical for us. We continue to
focus on gender diversity by attracting, developing and
retaining more talented women, particularly at senior levels.
We continue to pursue our goal to increase the number
of women in senior management roles to 30% by 2025.
Metrics and performance
35%
of our global TQA Experts are women.
We ensure that men and women are paid equally for doing
equivalent roles and we are committed to a number of
measures to ensure we provide an energising workplace,
free of any gender bias, where employees can flourish
based on their talent and effort.
To strengthen this, we ensure that our shortlists of
external hire candidates have a balance of gender diversity.
We remain committed to equality and provide flexible
working where possible.
Our overall workforce is 35% female and 65% male
representation. We have continued to work towards achieving
greater gender balance at senior leader level, and during 2024
we increased female representation among this group of
employees to 26.3% (2023: 23.6%). More detail on the gender
diversity of our Board, as well as ethnic diversity disclosures
for the Board and Group Executive Committee, can be found
in the Nomination Committee report on page 2.85.
Intertek TQA Experts by level
Male
Female
Group Executive Committee
13
5
Senior leader1
169
60
Whole organisation
29,029
15,971
1.
Direct reports to the Group Executive Committee.
Intertek TQA Experts by region
Male
Female
Americas
8,311
3,374
Asia
12,780
8,853
EMEA (incl Central)
7,938
3,744
Enhanced maternity
policy in the UK
An update to our maternity policy in the
UK means that more expectant mothers
will qualify for enhanced maternity pay.
Under the updated policy, expectant mothers are eligible for
enhanced maternity pay at an earlier qualifying date than
in the previous policy. This aligns to the qualifying period in
our UK paternity leave policy, which was updated in 2023,
and highlights our commitment to regularly reviewing and
improving employee benefits. The policy now also includes
greater clarity on how maternity pay is calculated and
more detailed information to address the frequently
asked questions we receive around maternity leave.
In addition to our enhanced maternity policy, we
introduced new UK policies in 2024 for bereavement
and compassionate leave, and carer’s leave, as well as
an updated flexible working policy.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.24
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Women’s development
programme launched in
South Asia
On International Women’s Day, our team
in South Asia launched an impactful
programme to drive personal and
professional development for women
across the region at Intertek.
Intertek on Winning and Nurturing (‘iOWN’) is a
comprehensive series of five reflective sessions designed
to focus on wellbeing from a holistic perspective. Under
the themes ‘Winning’ and ‘Nurturing’, participants are
taken through modules on important topics like self-care,
networking and building resilience. These topics were
identified through a needs assessment which highlighted
significant areas in the personal and professional growth
journeys of women in South Asia.
The programme’s emphasis is on peer learning and sharing
to create a robust community that supports and uplifts
women at Intertek. All programme leaders are therefore
Intertek employees, trained during a dedicated workshop
in Delhi, India, to enable them to conduct iOWN sessions at
different locations across South Asia. Throughout 2024,
our trainers delivered more than 35 sessions across India
and Bangladesh, welcoming around 150 participants.
Intertek Women’s Group hits
five-year milestone
Having celebrated its fifth anniversary in
2024, one of our Intertek women’s groups
has continued to increase its impact by
expanding into new areas of the business.
The Women’s Group is an inclusive group of colleagues
which meets monthly to create connections, share
engaging experiences, provide a safe space for discussion,
and inspire personal and professional growth. The group is
open to all Intertek employees, and since 2020 meetings
have been held virtually to enable more people across the
business to join.
This commitment to inclusion is reflected in the diverse
range of subjects and guest speakers embraced by the
Women’s Group. In 2024, key topics included care for the
elderly, networking skills development and the celebration
of Black History Month. These discussions built on themes
from previous years such as social connection, professional
development, sleep health, diversity, and financial wellbeing.
Intertek Group plc
Annual Report & Accounts 2024
2.25
Sustainability performance Continued
People and Culture Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Talent across all generations
We value all of our colleagues, regardless of age, and have
practices in place to develop and retain workers of all ages.
Our goals
We will continue to develop proactive approaches to
recruitment to ensure we have an age-diverse and
balanced employee age profile.
Metrics and performance
58%
of our global TQA Experts are under the age of 40.
The technical expertise needed in many parts of
our complex business is acquired over several years.
This is reflected in the overall average age of 39.
We will continue to promote and endorse fair, consistent
and thoughtful working practices that are in accordance
with our Values.
At Intertek, we are proud to be an equal opportunities
employer.
We consider all qualified applicants for employment
regardless of gender, ethnicity, religion, orientation,
age, disability and other protected characteristics.
Under 29 years old:
23.5%
Between 30 and 39 years old:
34%
Between 40 and 49 years old:
24%
Between 50 and 59 years old:
12.5%
60 years old and over:
6%
Percentage of employees by age range
In action
Intertek Group plc
Annual Report & Accounts 2024
2.26
Sustainability performance Continued
People and Culture Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Cultural diversity
(arising from country of origin)
Cultural diversity supports our global business
and is key to our success.
Our goals
We are committed to cultural diversity and will ensure that
Intertek’s colleagues are representative of the countries
where we do business.
Metrics and performance
41
different nationalities across our senior leadership.
We recognise that comprehensive diversity monitoring
is foundational to our diversity and inclusion strategy,
which lies at the heart of our culture. We continue to
monitor protected characteristics and to promote further
transparency, particularly at senior level, and we have
plans to update our diversity monitoring.
In addition to cultural diversity arising from country of
origin, we have enhanced our reporting on ethnicity.
READ MORE ABOUT THE DIVERSITY OF
OUR BOARD ON PAGES 2.61 AND 2.85
Disability inclusion
Adopting a universal design mindset.
Our goals
To adopt a disability-inclusive mindset as well as deliver
on our commitment to the Valuable 500.
This is centred on incorporating disability inclusion criteria
into the full spectrum of products and services we offer
our clients.
Metrics and performance
We believe that in order to create rapid, system-level
change specific to disability inclusion and equity, we must
actively seek out opportunities to collaborate with other
businesses who hold the same values and are equally
committed to effecting change.
We also recognise the gaps in the global business
community's knowledge of employees with disabilities
and are supportive of the call for greater visibility of
the current state of affairs.
Having assessed the guidance on self-identification
published by the Valuable 500, we have implemented
the learnings into our approach.
Supporting education and
opportunity for disabled students
Intertek Caleb Brett South Africa is
sponsoring a group of young disabled
learners to gain qualifications in business
administration and information technology.
Part of our commitment to skills development and diversity
and inclusion, the initiative aims to prepare the students
for potential opportunities at Intertek or help them get
into the job market through a recognised qualification.
Our local team stays in close contact with the education
provider throughout the courses to get progress updates
on the students and understand if there are any additional
support needs.
The initiative follows previous programmes in the country
where we have sponsored unemployed young people
to get qualifications more aligned to our operational
environments, such as laboratory or field-based roles.
Intertek Group plc
Annual Report & Accounts 2024
2.27
Sustainability performance Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Working with Customers
We ensure our
customers can
operate safely
and sustainably
in a complex world
Innovative sustainability services have been
core to our global business for more than
100 years.
Through our leading-edge innovations and integrated ATIC
solutions, we are uniquely placed to help our customers
understand, achieve and validate their existing and emerging
sustainability goals.
Capturing the right data to optimise operations
Identifying and managing risks that can impact our service
quality is key to ensuring customer satisfaction. Our 5x5
metrics tool and processes enable the collection and
review of performance metrics across the areas of sales,
customers, people, finance and operational excellence that
are fundamental to disciplined performance management.
The 5x5 metrics provide every Intertek site and team leader
with 360º insight into their business to guide their decision
making and ultimately lead to superior business performance.
Customer focus
To become the most trusted partner for Quality
Assurance, we have made a promise to our customers:
Intertek Total Quality Assurance expertise, delivered
consistently with precision, pace and passion,
enabling our customers to power ahead safely.
Intertek has a strong focus on customers, at all levels of the
organisation, and our customer relationship management
is integrated into our approach through a key account
management structure and dedicated sales teams.
Our Marketing & Sales Operations team works closely
with business lines and country leadership to drive
continued improvements across marketing, sales and
digital tools to ensure that every aspect of customer
engagement aligns with our TQA Customer Promise.
Listening to our customers
Since 2015, we have used the NPS process to listen
to our customers. These insights give us a deep
understanding of what our customers need and want,
fuelling our innovations. Our customer interviews keep
us laser-focused on delivering an ever better service.
Average NPS interviews per month during 2024
6,036
Customer Promise
Intertek’s Total Quality Assurance expertise,
delivered consistently with precision, pace and
passion, enabling our customers to power
ahead safely.
Accelerating positive sustainability impact
We recognise the importance of sharing our own sustainability
journey with our customers, partners and local communities.
We actively engage with requests to support individual
sustainability and carbon performance assessments, including
EcoVadis and the CDP Climate Change questionnaire.
This gives us the opportunity not just to meet the demands
of our investors and customers, but also uncover risks and
opportunities, and track and benchmark our progress.
We aim to collaborate as a trusted supply chain partner to
deliver improvements in the areas most material over the
long term, and accelerate sustainability impacts. We are here
to help our stakeholders understand sustainability, why it
matters, and how to effectively integrate it within business.
Channels of customer interactions
Customer meetings
Emails and phone calls
Web enquiry responses
Workshops and seminars
Social media communications
Intertek Group plc
Annual Report & Accounts 2024
2.28
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Supporting our customers
with their sustainability agendas
As a TQA provider, we are in a strong
position, given our global scale and expertise,
to support the sustainability goals of our
customers with our industry-leading Total
Sustainability Assurance solutions.
In action
Ensuring the durability
of M&S clothing
Intertek conducts tests for leading British
retailer Marks & Spencer (‘M&S’) worldwide
to ensure that its clothing meets the
highest standards of quality and durability.
Through our decades-long partnership with M&S, we
have developed a series of rigorous tests for its products.
And while we support M&S with various garment testing
services, we have recently worked with the company on its
goal of making school uniforms better for children, parents
and our planet. School uniforms are worn over 50 times
more than the average item of clothing, and the durability
of clothing is a significant factor in its environmental impact.
Our work with M&S highlights our joint commitment to
ensuring the production of durable, high-quality clothing
to reduce waste and educate consumers on sustainability.
The partnership also supports M&S’ ‘Plan A’ roadmap to
drive the circular economy.
In action
LEARN MORE ABOUT OUR
DURABILITY TESTING SERVICE
Validating Decathlon’s
environmental claims
Having developed a methodology for
creating new datasets to carry out product
life cycle assessments in alignment with
the Product Environmental Footprint
method, Decathlon enlisted Intertek
to validate its efforts.
Our Softlines experts reviewed Decathlon's processes
and evaluated its criteria for communicating about its
ecodesign approach to products, in line with the EU Green
Claims Directive and French climate law. This included
thoroughly reviewing the company’s methodology
documentation, interviewing key team members and
highlighting opportunities for improvement.
Decathlon can now make environmental claims with increased
confidence, reassuring its customers of the sustainability
credentials of the products they are purchasing.
LEARN MORE ABOUT OUR ENVIRONMENT
CLAIM VERIFICATION SOLUTION
Intertek Group plc
Annual Report & Accounts 2024
2.29
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
In action
Verifying recycled
content in pet products
Petmate is an American manufacturer of
pet products which supplies major retailers.
The company is committed to creating
safe and durable items, while also investing
significantly in sourcing and manufacturing
products with a low environmental impact.
To make customers and the wider industry aware of
its commitment to the environment, Petmate worked
with the Intertek Assuris team to verify the percentage
of recycled plastic used in its US-made dog kennels.
After comprehensive analysis involving raw material
purchases and factory audits, we were able to verify
the company’s claim that the kennels are “made from
95% recycled polypropylene”.
Having substantiated this claim, Petmate can confidently
market the environmentally friendly credentials of these
kennels, helping consumers to make more informed
product choices.
LEARN MORE ABOUT OUR VERIFIED
RECYCLED CONTENT PROGRAMME
In action
Advancing responsible
sourcing at Hershey’s
The Hershey Company, a global
confectionery leader, partnered with
Intertek’s Program Advisory & Collaborative
Engagement ('PACE') services to support
the launch of its Responsible Sourcing
Supplier Due Diligence programme.
Intertek played a crucial role in ensuring that Hershey's tier
1 supply chain partners adhered to the company’s supplier
code of conduct. By offering strategic and operational
guidance, we helped Hershey implement sustainability
dashboards, enhance human rights practices and improve
supplier compliance. This collaboration significantly
strengthened Hershey’s supplier engagement, leading to
improved worker conditions and advancing the company’s
sustainability objectives.
LEARN MORE ABOUT OUR
PACE SERVICES
Intertek Group plc
Annual Report & Accounts 2024
2.30
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
In action
Certifying low-carbon leaders
in China’s dairy industry
The production of livestock plays an
important role in our world, providing food
and employment to billions of people every
day, but it is also a significant contributor
to global greenhouse gas emissions.
Sustainable practices in animal husbandry –
the breeding and raising of domestic animals
– are therefore vital to the agriculture
industry’s low-carbon transition.
As a leading provider of global agriculture solutions,
Intertek issued China’s first Low-Carbon Farm Dairy Farming
Certification to Pingdingshan Youran Animal Husbandry Co
Ltd. ('Youran'). This certificate is based on Intertek’s 2023
‘Requirements for Low-Carbon Farming – Dairy Cattle’
standard, which aims to standardise livestock farming
activities, reduce negative impacts of husbandry on the
environment through the introduction of green ecological
standards, and promote the sustainable development of
the livestock industry.
Our comprehensive and in-depth review and verification of
Youran dairy farm covered herd management, low-carbon
feed application, farming technology specifications, manure
management, energy management and carbon reduction
measures. The certification highlights Youran’s high level
of carbon management throughout the entire livestock
breeding process.
By driving a green and low-carbon future for the livestock
industry, companies like Intertek and Youran help to
reduce environmental pollution, protect ecosystems and
promote a harmonious coexistence between agriculture
and the environment.
LEARN MORE ABOUT OUR LOW-CARBON
FARMING SERVICES
In action
Fuelling the sustainable
aviation industry
Intertek Caleb Brett played a role in
achieving the first delivery of Neste
MY Sustainable Aviation Fuel (‘SAF’)
to Singapore’s Changi Airport, supporting
the blending process to meet ASTM
D7566 standards.
SAF, made from renewable resources like used cooking
oil and animal fat wastes, significantly reduces carbon
emissions, offering a solution to the aviation industry's
push for sustainability. This milestone marks a critical
step in reducing the sector's reliance on fossil fuels
and underscores Intertek’s commitment to advancing
sustainable practices in aviation.
LEARN MORE ABOUT OUR SUSTAINABLE
AVIATION FUEL SERVICES
Intertek Group plc
Annual Report & Accounts 2024
2.31
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
In action
In action
Creating essential employee
training resources
El Pueblo Mexican Restaurant in San Diego,
California, enlisted the expertise of
Wisetail, an Intertek Company, to launch
its long-awaited learning management
system, including an interactive employee
onboarding programme.
The restaurant’s goal was to support operational
sustainability and enhance efficiency, resilience and
compliance, while minimising risk and the need for
additional internal resource.
In just 83 days from project discovery to completion,
the Wisetail instructional design team created 52
employee training courses in both English and Spanish.
The courses have enhanced the quality and efficiency
of the restaurant’s basic training offering, transforming
the existing e-learning experience to make it interactive
and relevant to the needs of both employees and the
business. In addition to content creation, we also integrated
several relevant courses from Wisetail’s existing content
marketplace into the training programme.
El Pueblo Mexican Restaurant now has an extensive
interactive learning library streamlined for each role, helping
to maximise employee retention and reduce the time spent
onboarding. By investing in training that reinforces safe,
efficient and high-performing teams, the restaurant is
creating a sustainable work environment where employees
thrive and operations run smoothly.
Driving inclusion
at Frontera Energy
Intertek has partnered with Frontera
Energy, a leading oil and gas operator in
South America, to enhance community
relations and increase the number of
women within its operations in Puerto
Gaitán, Colombia.
Working to support the goals of Frontera’s existing social
and gender programmes, we focused on hiring people
from local communities and ensuring that the company’s
recruitment practices allowed for greater inclusion. As a
result, the percentage of both women and local people
involved in Frontera’s operations increased significantly,
strengthening community ties, improving economic
stability for local families, and enabling Frontera to
better align with its policies on women's participation.
This ongoing collaboration highlights Intertek and
Frontera’s joint commitment to driving positive change
through impactful diversity and inclusion programmes.
LEARN MORE ABOUT WISETAIL’S ALL-IN-ONE
LEARNING AND OPERATIONS PLATFORM
Intertek Group plc
Annual Report & Accounts 2024
2.32
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
In action
Strengthening Transportadora’s
business continuity plans
Intertek conducted Argentina's first
independent climate risk and vulnerability
assessment to strengthen the climate
resilience and business continuity of
the country’s leading natural gas
transportation company.
Transportadora de Gas del Sur S.A. (‘TGS’) is responsible
for transporting over 60% of the gas produced in Argentina.
As a publicly traded company on the New York Stock
Exchange, TGS is required to present its plans for evaluating
and mitigating the impacts of extreme climate events caused
by climate change to its investors, shareholders and board
members. Its challenge was to update its business continuity
plan to minimise the impact of disruptive events and better
protect its people and local communities.
In action
Delivering supply chain
traceability assessments
to new standard
Intertek’s clean energy advisory division
Clean Energy Associates (‘CEA’) has
become one of the first assessment
bodies to assess the solar industry’s
progress on environmental, social and
governance standards under the Solar
Stewardship Initiative (‘SSI’).
SSI works collaboratively with manufacturers, developers,
installers and purchasers across the global solar value
chain to foster responsible production, sourcing and
stewardship of materials. Its newly developed Supply Chain
Traceability Standard, published in December 2024, is
tailored to the photovoltaic industry to assess production
sites’ traceability management systems to evaluate where
the materials used at each link come from and how they
are traced. SSI members are required to have two sites
assessed for compliance by an approved assessment body
like CEA within 12 months of either joining the initiative
or the publication of the standard.
With extensive experience and expertise in traceability
and solar inspections, CEA can perform these assessments
to help SSI member companies to gain greater confidence
and visibility into their supply chains. The Supply Chain
Traceability Standard serves as the basis for all CEA
traceability audits for European clients starting in 2025.
Aiming to reinforce TGS’ business continuity plan for the
next 15 years, our Sustainability team in Buenos Aires
carried out comprehensive analysis to understand the specific
needs of the company’s decision makers for sustainability.
During this process, we leveraged Intertek’s leading
sustainability services and global network of experts, and
applied the ISO 31000, ISO 14091 and ISO 22301 standards.
The resulting study evaluated the climate vulnerabilities and
risks associated with 45 TGS assets, including nearly 10,000
km of pipelines and 40 compression stations.
Ultimately, the project left TGS better positioned to
anticipate, prepare for and mitigate the negative impacts
of severe climate events.
LEARN MORE ABOUT OUR SERVICES FOR
SOLAR, ENERGY STORAGE AND MORE
LEARN MORE ABOUT OUR CSR
AND SUSTAINABILITY SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.33
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
In action
Quantifying the benefits
of tidal lagoons
Techniques for harnessing tidal energy are
long-established, but there are currently
no tidal lagoon projects in existence
globally. Previous studies indicate that
10 gigawatts of installed capacity, equal
to around 5% of UK energy use, could
be achieved through proposed projects.
Tidal energy technologies could therefore
play an important role in helping the UK
to meet its net zero targets by 2050.
In 2024, Intertek Metoc won a research project to provide
hydrodynamic modelling expertise as part of the Welsh
Government’s Tidal Lagoon Challenge, an innovative
competition to help quantify the potential benefits of tidal
lagoons and reduce or remove the barriers to development
in Wales. The project’s main objectives include modelling
the flexible operation of tidal lagoons, quantifying
their true long-term economic value and presenting a
recommendation for policy support. We are working
alongside the Offshore Renewable Energy Catapult,
Cardiff University and Western Gateway on this project.
In action
The Intertek team is modelling a wide range of tidal lagoon
configurations to assess the power potential over their
design life, resulting in an annual yield estimate for each
scheme. These data will feed into Cardiff University’s work
package and ultimately help to quantify the economic
value of tidal lagoons, providing an economic and financial
rationale behind tidal lagoon projects, as well as other
recognised evaluation methods.
LEARN MORE ABOUT OUR
TIDAL ENERGY SERVICES
Shared supplier audits for
reduced environmental impact
As a highly regulated sector, companies
in the pharmaceuticals industry must
ensure that their suppliers meet the
required standards for quality and
compliance. Supplier audits are therefore
essential in helping to mitigate supply
chain risks, protect patient safety and
maintain regulatory compliance.
At Intertek, we offer shared audits – scheduled audits
performed on one supplier on behalf of several of
sponsor companies. This option enables our customers
in the healthcare industry to join pre-scheduled audits,
streamlining the process and maximising time, resources,
and cost efficiency for both manufacturers and suppliers.
Each shared audit customer receives a customised,
confidential audit report that enhances transparency
and quality across their supply chain.
To make the process even simpler, in 2024 we launched
our Audit Live List tool, which gives real-time information
on which suppliers are being audited and when, allowing
companies to choose which audits to join.
In addition to the customer benefits, we have also seen
a significant positive environmental impact. Shared audits
can significantly decrease the carbon footprint of the
auditing process, as they reduce the need for travel,
which is one of the main sources of emissions in the
pharmaceuticals industry. Since we launched our shared
audit service 15 years ago, we have helped to avoid an
estimated 7,500+ trips associated with supplier auditing
covering diverse healthcare supply chains across the world.
LEARN MORE ABOUT OUR
SHARED AUDIT SERVICES
Annual Report & Accounts 2024
2.34
Intertek Group plc
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
In action
Helping DRC to meet
its environmental goals
Intertek has partnered with the
Government of the Democratic
Republic of the Congo (‘DRC’) as the
sole conformity assessment body
(‘CAB’) for its Eco-Levy programme.
The DRC Eco-Levy programme is an end-to-end risk-
based assessment programme, designed to support and
finance the end-of-life electronic waste management
of certain regulated products, including tyres, electrical
and electronic equipment. Through the programme,
all exporters to the DRC whose products are regulated
under the Eco-Levy programme are required to provide
an Eco-Certificate in line with government regulations.
As the programme’s CAB, we apply a risk-based approach
to performing inspections of shipments. Used regulated
product consignments are subject to mandatory
inspections to ensure that the products are not wasted
or scrapped. If a shipment of regulated products is found
to be compliant, we collect the Eco-Levy and issue an
Eco-Certificate to the exporter.
Through this appointment, which reinforces our position
as a leading provider of conformity assessment services
in Africa and worldwide, we are supporting the DRC in
achieving its environmental objectives.
LEARN MORE ABOUT OUR
GOVERNMENT & TRADE SERVICES
Intertek Group plc
Annual Report & Accounts 2024
2.35
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
In action
Spinning the wheel in Ecuador’s
tyre retreading project
For the last 10 years, Intertek Government
& Trade Services (‘GTS’) has been
supporting the Ecuadorian Government
with its tyre retreading project, helping
to boost the economy, decrease waste
and reduce reliance on imports.
Under the project, retreading companies in Ecuador
process used tyres and restore them to like-new condition
for second use. These companies must comply with the
RTE INEN 067 quality standard, a certification which our
Intertek GTS Ecuador team has been exclusively providing
since the project started.
As certification provider, we conduct initial evaluations,
recertification and monitoring audits for retreading
plants to ensure compliance with the RTE INEN 067
'Tyre Retreading Process' standard, issuing a Certificate
of Conformity to those that meet the requirements.
Having gained extensive experience in the retreaded tyre
sector, our specialised team drives continuous improvement
by identifying non-conformities in audits and proposing
improvements to the tyre retreading process.
Ultimately, we are helping to strengthen consumer
trust and increase the adoption of retreaded tyres. The
success of this project has led to the significant growth of
Ecuador’s tyre retreading industry, creating much-needed
jobs and saving thousands of tyres from landfill each year.
In action
LEARN MORE ABOUT OUR
GOVERNMENT & TRADE SERVICES
Advancing BESS safety
and performance
Battery energy storage systems (‘BESS’)
are a critical component in the global
energy transition, enabling the integration
of wind, solar and other renewable sources
into electricity grids. Designed to store and
release energy when needed, they also
play an important role in enhancing energy
efficiency and resilience.
As demand for clean energy grows, so does the need for
reliable, safe and high-performing BESS. However, the
use of advanced technologies introduces unique safety
and performance challenges, including fire and system
failure risks.
Through comprehensive end-to-end testing, risk
assessment and certification services, Intertek is
helping BESS manufacturers ensure the safety,
reliability and performance of their products. Our
expertise supports innovation in energy storage while
ensuring compliance with critical safety standards. And
with our help, manufacturers are developing safer, more
reliable BESS that accelerate the clean energy transition.
LEARN MORE ABOUT OUR
BESS SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.36
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
In action
Transitioning to a sustainable
HVAC/R industry
As the world increasingly focuses on the
reduction of greenhouse gas emissions,
the heating, ventilation, air conditioning
and refrigeration (‘HVAC/R’) industry is
undergoing a transformative shift.
Manufacturers are replacing traditional refrigerants – fluids
used in cooling, heating or reverse cooling and heating of air
conditioning systems and heat pumps – with eco-friendly
alternatives to minimise environmental impact. However, many
of these new refrigerants, while more sustainable, are classified
as flammable, creating new safety and performance challenges.
Intertek is playing a vital role in helping HVAC/R manufacturers
navigate this complex transition by providing rigorous
testing and certification services. Our expertise ensures that
these new flammable refrigerants meet safety standards
and performance expectations, while also supporting the
industry in its journey towards greater sustainability. Our
range of comprehensive testing and certification services
include flammability and leakage testing, system performance
validation and compliance with global standards.
With our support, HVAC/R manufacturers can confidently
develop more sustainable products that contribute to the
fight against climate change without compromising on safety
or performance.
LEARN MORE ABOUT HVAC/R
CERTIFICATION AND TESTING
In action
Transforming future mobility
The future of mobility is a dynamic and
evolving landscape. Innovations and
advances are being seen across both
electric vehicles and cleaner combustion
engines, which are leveraging advances in
sustainable fuels and hybrid technologies.
Intertek’s Transportation Technologies (‘TT’) team is
working closely with manufacturers across the automotive
ecosystem to develop and validate a wide range of next-
generation innovations.
With specialist facilities in Europe, North America and
Asia, our TT experts partner with original equipment
manufacturers (‘OEMs’) and their supply chains to navigate
the evolving automotive landscape and deliver high-quality
products for the vehicles of today and tomorrow.
At our two dedicated laboratories in Milton Keynes, UK,
our teams are working with leading OEMs to test both
engines and electric drive systems. We are also working
with global players in fuels and lubricants to develop future
technologies to support the evolution of these automotive
technologies. From next-generation battery cooling fluids
that can work faster and more effectively, to the optimal
composition of electric vehicle fluids to maximise product
efficiency, our experts are helping market innovators to
create new products that will enable lighter and more
efficient battery technologies to be implemented into
future vehicles.
Meanwhile, our specialist electric powertrain team is
enabling manufacturers to successfully transition from
traditional internal combustion powertrains to electric,
with confidence that quality and performance are not
compromised as they bring brand-new models, and
electrified versions of existing cars, to markets worldwide.
LEARN MORE ABOUT OUR
AUTOMOTIVE SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.37
Sustainability performance Continued
Working with Customers Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
In action
Providing assurance for
sustainability reports
Intertek Assuris has provided limited
assurance on the sustainability report of
Mumbai International Airport Limited (‘MIAL’).
We carried out the assurance process in two phases. First,
we conducted reasonable assurance on core disclosures in
the Business Responsibility & Sustainability Report in line
with guidelines from the Securities and Exchange Board of
India. This included assurance of various environmental and
social indicators, from emissions and water consumption
to safety and inclusion. In the second phase, we performed
limited assurance on selected disclosures for MIAL in
accordance with Global Reporting Initiative guidelines.
By ensuring the accuracy, reliability and consistency of
its reporting, we enabled MIAL to clearly demonstrate
its commitment to bettering society and environmental
sustainability to all stakeholders.
In action
LEARN MORE ABOUT OUR
SUSTAINABILITY ASSURANCE SERVICES
Providing tailored solutions
for CSRD compliance
The European Union’s Corporate
Sustainability Reporting Directive (‘CSRD’)
has modernised and strengthened the rules
concerning the social, environmental and
governance information that companies need
to report. Having entered into force in January
2023, it will impact an increasing number of
large companies and listed small and medium-
sized enterprises in the coming years.
Intertek’s sustainability expertise, combined with our in-depth
understanding of our customers’ operations across a broad
range of sectors, helps companies prepare for this significant
change. Our flexible CSRD solutions provide our customers
with tailored support to meet their needs and ensure that
they are in the best position to comply with the directive.
We take our customers on the journey to compliance,
starting with educating management teams on their
company’s requirements, scoping the reporting activity
and conducting a double materiality assessment.
We train teams to understand the implications that CSRD
has for their business, as well as enabling them to assess
stakeholders, consider mandatory disclosure requirements
and prepare their submissions with confidence.
In addition, our subject matter experts help companies assess
their corporate sustainability practices and identify any gaps
or areas for improvement, providing strategic action plans
to ensure alignment with CSRD requirements. This helps
to reduce complexity, costs and resources required to meet
compliance. We can also support the reporting process, and
in some countries, we are among the auditing companies
approved to complete third-party validation of CSRD reports.
LEARN MORE ABOUT OUR
CSRD SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.38
Sustainability performance Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Environment
Our goal is to
decarbonise our
business by 2050
At Intertek, we understand our organisation’s
impacts on the environment and continuously
look for opportunities to mitigate them in
regard to climate change, use of resources,
ecosystems and waste management.
We recognise the critical role that the private sector plays in
tackling the climate crisis, providing innovative solutions, reducing
greenhouse gas ('GHG') emissions and setting ambitious targets,
thereby helping to drive the transition to a low-carbon economy.
Governance
Intertek’s environmental governance flows from the Board
to every site.
To advocate for accelerated climate action, our Net Zero
Steering Committee (with members including our Group CEO,
Group CFO, EVP – Sustainability, Group Company Secretary,
Head of ESG and Non-financial Reporting, and Group Head of
Risk) works with our countries on our detailed climate-related
investments and action plans, monitors site-level activities
across a range of metrics and tracks progress against our
GHG emissions reduction targets.
Our Environmental and Climate Change policy, which we
reviewed and revised in 2024, outlines the commitments
we adhere to.
READ OUR ENVIRONMENTAL AND CLIMATE CHANGE POLICY
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Our operations apply a precautionary approach and comply
with all applicable environmental regulations and permits.
Environmental management systems support our
operations to meet environmental protection standards,
comply with legislation and improve reporting and
transparency. We have implemented ISO 14001 and/or
ISO 45001 across 129 of our sites.
READ MORE ABOUT CLIMATE-RELATED
GOVERNANCE ON PAGE 1.67 IN REPORT 1
What is our impact?
Our global reach spans thousands of employees, clients and
suppliers. This scale represents both commercial opportunity
as well as a responsibility to our people, the communities in
which we operate and the wider environment.
As a multinational company, we recognise that, although
our own operations may not be as energy-intensive or
resource-depleting as other industries, good management
of the relevant and material topics is critical to protect
the environment.
Our activities around the world are diversified across both
laboratories and offices. Carbon emissions are our biggest
environmental impact, and through continual monitoring
and assessment of our operations, we are now able to
apply more targeted actions to reduce our carbon
footprint, with particular focus on energy efficiencies
and operational excellence.
The energy we use in our laboratories and offices
continues to be the largest contributor to our carbon
footprint, making it a priority in our environmental agenda.
To make real change happen, we believe that all our people
need to have ownership of their carbon footprint and be
empowered and inspired to take ambitious actions to
reduce it – putting our Sustainability Excellence approach
into action.
Intertek Group plc
Annual Report & Accounts 2024
2.39
Sustainability performance Continued
Environment Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Net zero ambition and
commitment. Prioritise
direct emissions reductions
and neutralise any
remaining emissions.
2027
Target: 70% of suppliers
by spend to set
science-based targets.
2050
2021
Joined Business
Ambition for
1.5°C campaign.
2019
Baseline for
GHG emissions
reduction targets.
ESG element included
in annual incentive
framework.
2030
Target: Reduce absolute
scope 1, 2 and 3 (business
travel and employee
commuting) emissions
50% vs 2019 baseline.
2022
Key milestones:
Achieved
On track
2023
SBTi-validated
near-term targets.
Our Climate Transition Plan
Our GHG emissions reduction journey
At Intertek, we recognise the urgent need to address climate
change and are committed to aligning our operations with a
low-carbon economy. Our Climate Transition Plan is a critical
component of our long-term strategy to reduce GHG emissions,
enhance resilience to climate-related risks, and ensure that we
contribute positively to global sustainability goals.
Our plan has been designed to guide our transformation
over the years, focusing on both reducing our environmental
impact and adapting to the evolving regulatory, market and
physical risks posed by climate change. In 2024, we have
made substantial progress in key areas, laying the
foundation for further advancements in the years ahead.
Key pillars of our Climate Transition Plan
Carbon emissions reduction targets
We are committed to reaching net zero emissions by 2050,
with an interim target to reduce absolute scope 1, scope 2
and scope 3 (business travel and employee commuting) GHG
emissions by 50% before 2030.
This will be achieved through a combination of energy
efficiency initiatives, increased use of renewable energy
generation and procurement, and the transition to
lower-carbon transportation.
Climate-related risks and opportunities
As part of our climate transition, we are actively assessing
the physical risks posed by climate change, including
extreme weather events and supply chain disruptions.
In alignment with the Task Force on Climate-related Financial
Disclosures ('TCFD') recommendations, our TCFD compliance
statement aims to provide stakeholders with the necessary
information to undertake robust and consistent analyses of
the potential financial impacts of climate change.
"Intertek Group plc commits to reduce
absolute scope 1 and 2 GHG emissions
50% by 2030 from a 2019 base year.
Intertek Group plc also commits to
reduce absolute scope 3 GHG emissions
from business travel and employee
commuting 50% within the same
timeframe. Intertek Group plc further
commits that 70% of its suppliers by
spend covering purchased goods and
services, capital goods and upstream
transportation and distribution, will
have science-based targets by 2027."
Sustainable supply chain
Our goal is to ensure that by 2027 70% of our key supply chain
partners will have set their own science-based climate targets.
MORE INFORMATION ON OUR TCFD STATEMENT
CAN BE FOUND ON PAGE 1.65 IN REPORT 1
We are working with our suppliers to encourage sustainable
practices throughout our value chain. This includes collaborating
with partners to ensure environmental responsibility and
sustainable practices.
READ OUR SUSTAINABLE PROCUREMENT POLICY
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Transparency and reporting
We understand that accountability is essential to ensuring
meaningful progress. We are committed to reporting on the
progress of our environmental impacts, with annual updates
in this report.
Our progress will continue to be measured and reported using
recognised frameworks such as the GHG Protocol, and in line
with evolving global standards such as the European Union ('EU')
Corporate Sustainability Reporting Directive ('CSRD') and the
Interntaional Sustainability Standards Board ('ISSB').
Employee engagement
Achieving our climate goals requires the engagement of every
part of the organisation. We will launch internal training
programmes to raise awareness of climate issues among
employees and to integrate sustainability into decision making
at all levels.
As we continue to refine and implement our Climate Transition
Plan, we are confident that the actions we are taking today
will not only help mitigate climate change but will also drive
long-term value for our business and stakeholders. Our
commitment to climate action is integral to our Sustainability
Excellence strategy, and we will continue to prioritise
sustainability in every aspect of our operations moving forward.
Scope
1
Scope
2
Scope
3
Intertek Group plc
Annual Report & Accounts 2024
2.40
Sustainability performance Continued
Environment Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Climate-related focus areas
Low-carbon fleet: We are moving to upgrade
our fleet to low-emission vehicles. Several
countries have completed pilot schemes which
allowed us to better understand our operational
and business needs, as well as the challenges
in the existing infrastructure. We will continue
to transition our other eligible fleet.
Low-carbon energy generation: We are
producing and consuming our own electricity
after investing in renewable energy systems
for at least one site in nine countries.
Direct emissions from sources which Intertek owns
or controls:
• Switch to lower-carbon vehicle fleet
• Identify and implement fleet efficiencies
• Optimisation of buildings
(heating/cooling)
Energy purchased from renewable sources:
At least one site in 22 (2023: 13) countries is
now powered by 100% renewable electricity
backed by Energy Attribute Certificates.
Indirect emissions from purchased
electricity, heat and steam:
• Procurement from renewable sources
• Low-carbon energy generation
• Energy-efficient buildings
• Energy-efficient equipment
Employee-efficient transportation initiatives:
We have invested in electric vehicle chargers in
several countries with the intention to support
a low-energy transition. We are also providing
shuttle bus services for more sustainable
employee commuting in several countries.
Value chain emissions:
• Optimise business travel
• Employee engagement on efficient ways of
commuting
• Supplier sustainability engagement
Key environmental achievements
The success of our environmental performance in 2024 can be
attributed not only to our strategic objectives but also to the
involvement of all employees in our sustainability initiatives.
Through training, workshops and clear communication, we
continue to foster a culture where environmental responsibility
is a shared priority at all levels of the organisation.
One of the most notable accomplishments in 2024 was our
significant reduction in carbon emissions. Through the
continuous monitoring of energy consumption and emissions
across all operations, we identified key areas where we could
implement more energy-efficient technologies and improved
operational processes. By optimising energy use in our offices
and laboratories and transitioning to cleaner energy sources, we
successfully reduced our operational market-based emissions by
16.7% against 2023 and 47.2% against our base year (2019:
291,519 tCO2e).
Total operational market-based emissions1 were 153,807 tCO2e
(2023: 184,612 tCO2e).
45.3
tCO2e1 emitted per £m of revenue2,3
Operational emission reductions
2023–2024
16.7%
Operational emission reductions
2019–2024
47. 2%
1.
Operational market-based emissions as defined on page 1.32 in Report 1.
2.
Revenue for FY 2024 as shown on page 1.31 in Report 1.
3.
2023: 55.5 tCO2e emitted per £m of revenue.
Intertek Group plc
Annual Report & Accounts 2024
2.41
Sustainability performance Continued
Environment Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
GHG emissions in tonnes of carbon dioxide equivalent (tCO2e)
Emissions by source1
2024
2023
Base year
2019
Scope 1
Emissions from sources which Intertek
Global
57,986
61,168
64,709
owns or controls directly
of which UK
2,318
1,782
Scope 2
Emissions from purchased electricity, heat
Global
115,571
113,270
128,693
and steam for our use (location-based)
of which UK
2,254
2,295
Emissions from purchased electricity, heat
Global
48,634
78,228
133,860
and steam for our use (market-based)
of which UK
314
285
Scope 3
Business travel
Global
19,946
18,108
25,849
of which UK
1,046
1,260
Employee commuting
Global
27,241
27, 108
67, 101
of which UK
1,079
1,036
Fuel- and energy-related activities
Global
5,408
6,543
7, 669
not included in scope 1 or scope 2
of which UK
199
201
Absolute tCO2e (market-based)
Global
159,215
191,155
299,188
1.
Our annual environmental reporting cycle ran from 1 October 2023 to 30 September 2024.
Global energy use in megawatt-hours (MWh)
Energy use by source
2024
2023
Standard electricity, heat and steam
113,469
171,241
Renewable electricity
151,700
88,716
Mobile combustion
137,679
139,715
Stationary combustion
113,714
122,020
Total energy use1
516,562
521,692
Percentage of total energy use from renewable sources
29.4%
17.0%
1.
UK portion of total energy use was 4% (2023: 4%).
Environmental performance
During 2024, Intertek achieved significant strides in
environmental performance, demonstrating our commitment
to net zero emissions by 2050 and sustainable growth. This
progress was largely driven by our rigorous performance
management programme, which continues to guide our
efforts in reducing our environmental impact while supporting
the broader goals of our sustainability strategy.
Our GHG emissions performance management programme,
which was an integral part of our operations for several years,
serves as a cornerstone for ensuring that every aspect of our
environmental impact is meticulously monitored, assessed and
improved. The programme provides a structured framework
for setting clear environmental objectives, tracking progress
and implementing corrective actions where necessary. This
disciplined approach has proven to be effective in helping
us not only meet but exceed our environmental targets.
Intertek’s reporting complies with the methodologies outlined by
the GHG Protocol ‘Corporate Accounting and Reporting
Standard’, ISO 140064-1 and the UK Government’s
‘Environmental Reporting Guidelines’.
A focus on continuous improvement
A new area of focus for us in 2024 has been the tracking of
water consumption. As part of our ongoing commitment to
providing transparent data, we have implemented systems to
monitor water usage across our operations more closely. This is
in response to increasing global concerns about water scarcity,
and our recognition of the impact that responsible water
management can have on both operational efficiency and
local communities.
Regular audits, data analysis and stakeholder engagement
ensure that we stay on track and remain agile in addressing
any emerging environmental challenges.
Looking ahead, we will continue to build on this success by
implementing new energy-saving initiatives, adopting cleaner
technologies and optimising resources to make measurable
progress towards our long-term sustainability goals.
FOR MORE INFORMATION, READ OUR BASIS OF REPORTING ESG DATA
DOCUMENT AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.42
Sustainability performance Continued
Environment Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Expanding our clean energy
generation capabilities
As we work to decrease our global
greenhouse gas emissions in line with
our 2030 reduction targets and 2050
net zero ambition, our use of energy
from renewable sources is increasing.
Not only are we purchasing more energy from renewable
sources, but we are also producing and consuming our own
clean electricity at our sites in several countries.
Following the installation of a solar photovoltaic (‘PV’)
project at our national head office in Bangkok, Thailand has
become the ninth country in which we have a renewable
energy system at one or more sites. It follows Australia,
Bangladesh, Denmark, India, Mexico, Poland, South
Korea, and the UK, where we also have site-specific solar
installations.
The new project highlights the importance of engaging
colleagues around the world to achieve companywide
sustainability goals. Through the commitment of our local
teams and Group sustainability experts, we are continuing
to assess opportunities to install solar PV systems at more
sites in future.
Landmark solar project under
construction in Texas
A new solar project at our San Antonio
Callaghan laboratory site in Texas will
make the USA the tenth country in which
we are producing and consuming our
own electricity.
At this laboratory, we conduct extensive testing of
engines, automotive fluids and components, so we chose
this site for its significant potential impact on energy
efficiency. In addition, a portion of the land adjacent to the
site is a floodplain, making it unsuitable for development.
Comprising a total of 1,638 solar panels, the project
will have a peak generation capacity of 200 MWh and
produce enough energy to power 239 average American
households for an entire year. Due for completion in the
second half of 2025, it represents an opportunity to
significantly reduce our carbon emissions and energy
consumption.
The construction of the solar project follows the
conversion of 14 acres – the entirety of the San Antonio
Callaghan laboratory site – to LED lighting.
In action
Annual Report & Accounts 2024
2.43
Intertek Group plc
Sustainability performance Continued
Environment Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Engaging employees in sustainable
transportation initiatives
With more than 45,000 Total Quality
Assurance experts around the world,
employee commuting inevitably
contributes to our global value chain
emissions.
We are committed to reaching net zero emissions by
2050, so reducing greenhouse gas (‘GHG’) emissions and
air pollution from traditional transportation methods is
an essential part of our Climate Transition Plan. Through
the implementation of clean transportation initiatives,
we engage our colleagues and reduce their commuting
emissions.
In mainland China, our team is achieving this on a large
scale through an electric shuttle bus service operating
across the south and east of the country, where many of
our employees are based. These electric vehicles (‘EVs’)
transport around 1,100 employees, over 10% of our
workforce in the country, to and from the office each day.
Starting with the introduction of a small EV fleet in
Shenzhen in 2017, the initiative has grown in response
to the launch of our companywide emissions reduction
targets and Climate Transition Plan.
In south China, more than 80% of employee commuter
buses are now EVs, most of these in the major cities of
Shenzhen and Guangzhou. To increase this positive impact,
we are working with suppliers to replace the remaining
petrol-powered buses in the region with EVs.
In east China, nearly a third of employee commuter buses – all
in Shanghai – are EVs. For services operating just outside the
city, where location and the availability of charging facilities
create additional challenges, we continue to explore options
for transitioning.
With 30 electric buses in operation across the country, this
initiative is currently saving nearly 1,000 tonnes of carbon
dioxide equivalent emissions per year.
According to the International Council for Clean
Transportation, battery electric vehicles have by far the
lowest lifecycle GHG emissions among passenger cars today.
Through our efforts in China and other countries where we
are investing in EV technologies, we are helping to make our
planet a cleaner and healthier place for everyone.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.44
Sustainability performance Continued
Environment Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Powering our operations with
low-emissions vehicles
As part of our commitment to reducing
emissions and maintaining cutting-edge
resources for our operations, we replaced
18% of the vehicles across our
Sustainability business line in Mexico with
more sustainable technologies during
2024.
The new fleet comprises a combination of hybrid and
fully electric plug-in vehicles. By integrating advanced
technology that combines internal combustion engines
with electric motors, we are estimating savings of nearly
120 tonnes of CO2 equivalent emissions each year.
This initiative is part of our global Climate Transition Plan,
where the move to upgrade our fleet to low-emissions
vehicles is a key focus. The introduction of these
low-emissions vehicles in Mexico follows a successful
implementation programme in Germany, the Netherlands,
the UK and the USA in 2023.
New cool roof for reduced
energy consumption
We have replaced the roof of our Port San
Antonio laboratory in Texas with an
energy-efficient cool roof to maintain the
building’s required temperature.
This site serves as the primary chemistry laboratory where
we perform extensive physical and chemical testing,
predominantly on automotive fluids. It also houses our
Carnot Emissions Services group, which conducts emissions
certification testing on off-highway engines to meet
various governmental standards in North America, Europe
and China.
The cool roof is expected to reduce the building’s energy
consumption by 200 MWh each year. Another benefit of
the cool roof is that its white coating provides a highly
reflective surface, perfect for bifacial solar panels, which
we plan to integrate in the future as they generate
electricity from both sides.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.45
Sustainability performance Continued
Environment Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Creating a healthier, more
sustainable work environment
We are replacing most of the heating,
ventilation, and air conditioning (‘HVAC’)
equipment at our laboratory in Geleen,
Netherlands, with a modern, energy-
efficient and reliable alternative.
The new HVAC system is designed to enhance employee
wellbeing, as well as adhere to relevant legislation on
construction, environmental protection, energy efficiency
and safety. The installation of this advanced technology
will enable us to comply with Intertek's own standards and
Dutch legislation on working conditions.
Due for completion in January 2026, the system will ensure
a healthy and comfortable working environment for our
employees, as well as saving a projected 500 tonnes of CO2
equivalent emissions per year. With the Geleen laboratory
already saving around 1,700 tonnes of CO2 equivalent
emissions annually since it switched to renewable power in
January 2022, this initiative marks another big step in our
companywide journey to net zero by 2050.
Reducing the water used for
testing at our Bangladesh
laboratory
In recent years, Intertek Bangladesh has
introduced several significant measures to
reduce the water footprint of its laboratory
in the country’s capital Dhaka. The latest of
these, aimed at recycling water from the
site’s dry-cleaning machine, will save 6.7
million litres from sewage each year.
The appearance of textiles and clothes after dry-cleaning
is one of the common tests we perform for our Softlines
customers. To conduct these tests, we use a dry-cleaning
machine that requires water for cooling. This process
involves absorbing heat through a heat exchanger and then
draining the hot water. In its continued search for more
sustainable practices, our Dhaka team found that the hot
water from the heat exchanger could be reused.
The team utilised the site’s 100,000-litre fire reserve tank,
having conducted a feasibility study and confirming that
there would be no effect on the fire system. It then created
a closed-loop system, connecting the heat exchanger
to the reserve tank and adding an overhead tank which
now supplies the 26 litres of water per minute previously
drained to sewage back to the dry-cleaning machine.
The initiative, which the local team has named AquaCycle,
joins other successful water reduction projects at our
Dhaka laboratory, including a rainwater harvesting system
and the reuse of treated water for gardening.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.46
Sustainability performance Continued
Environment Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Providing a space for local
biodiversity to thrive
The Arizona Mobility Test Center (‘AMTC’)
Powered by Intertek is one of the premier
on- and off-road proving grounds for testing
new vehicles, automotive components and
transportation technology.
However, its grounds are also home to an unexpected gem
– five acres of preserved land dedicated to the protection of
local biodiversity.
The Environmental Monitoring Area (‘EMA’), originally
established by Toyota in 2016, has been managed and
upgraded by Intertek since we became AMTC’s operating
partner in 2021. This desert ecosystem is home to a variety of
plants and animals and provides an important nesting ground
for species including bobcats, foxes, coyotes, badgers and
owls.
Intertek Vietnam hosts
environmental event for children
In collaboration with the Intertek Vietnam
Trade Union, we hosted the vibrant ‘We are
EARTH RANGERS 2024’ event, attracting
around 130 enthusiastic young participants.
Held simultaneously across three major cities – Ho Chi
Minh City, Hanoi and Can Tho – in August, the event was
designed to ignite curiosity and raise awareness about
environmental issues.
The day's activities kicked off with a lesson on the impact
of plastic on life and the environment led by one of our
environmental experts. The children engaged in interactive
discussions, learning about the harmful effects of plastic
waste on ecosystems and our planet.
The event also featured art workshops on origami and
handcrafting flowers, offering the children an opportunity to
explore their creativity while learning about environmental
conservation. Jungle-themed discovery games brought the
children closer to nature, and a recycling fashion show contest
inspired them to think more deeply about sustainable practices.
Additionally, Intertek Vietnam used the opportunity to honour
outstanding students from the previous academic year,
celebrating their achievements with well-deserved awards.
Part of our Asia Pacific 'WE CARE: EARTH CARE' initiative,
2024 marked the third consecutive year of the event,
with participation growing and activities becoming more
engaging each time.
During 2024, we made significant enhancements to the EMA,
including replanting vegetation from areas of the AMTC site
that were under construction, building a dedicated carpark
and refreshing the trail system. We also installed a new water-
harvesting roof on a pavilion to collect rainwater for use in
irrigation and other activities.
To ensure the wellbeing of all plants, animals and people
using the area, we work closely with Patrick Wildlife Services,
a leading expert in wildlife conflict resolution, and our own
onsite groundskeepers. This has enabled us to safely maintain
a natural habitat, designed to meet the challenges of desert
life, in which to track and monitor the local wildlife.
In addition to wildlife conservation, the EMA provides the local
school district with a safe, well-maintained area to learn about
sustainability and the desert ecosystem. The updates we
have made – and those planned for the future – will improve
the onsite experience for students and enable more schools
to use the space moving forward.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.47
Sustainability performance Continued
Environment Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Keeping local ecosystems clean
Braving icy temperatures with wind chills
dipping below freezing, 25 volunteers from
the Transportation Technologies team at
our Intertek San Antonio facility
participated in the 30th anniversary of a
renowned community cleanup initiative.
Basura Bash is San Antonio's premier one-day, all-volunteer
event dedicated to cleaning the banks of the Texan city’s
waterways. Our team, able to choose between 25 different
tributaries for cleanup, selected Zarzamora Creek, which
runs adjacent to our office. To ensure the success of their
efforts, our dedicated volunteers began assessing the
creek about a month prior to Basura Bash.
On the day, our volunteers joined 1,500 others in collecting
a range of items, from common plastic shopping bags to
the unexpected bed of a Ford pick-up truck. Paper, plastic,
bottles, tyres and electronic waste were recycled where
possible.
The enthusiasm of our team was a true reflection of our
global commitment to caring for the environment and
preserving our local communities for future generations.
Intertek Metoc supports
community beach clean efforts
In September, Intertek Metoc, our pioneering
energy and water solutions business,
teamed up with Brighton & Hove City Council
and the Marine Conservation Society UK
(‘MCSUK’) to help clean Brighton beach in
the UK.
Brighton is home to a variety of biodiversity, including rare
leeks that grow on the shingle beaches and short-snouted
seahorses in the reefs off the marina. It is also a popular
destination for both locals and visitors. To protect this
biodiversity and maintain a clean city, Brighton & Hove City
Council provides beach cleaning tools as part of its well-
established TidyUp scheme.
Our Intertek Metoc colleagues worked with the council
and MCSUK to organise a beach clean event and, along a
100-metre stretch of the beach, participated in a marine litter
survey to categorise the types of rubbish they found. Their
findings were uploaded to MCSUK's database to feed into
further research and environmental campaigns supporting
long-term sustainability aims.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.48
Sustainability performance Continued
Environment Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Planting to protect the
environment and empower
local communities
Trees and other plants are essential to the
environment, helping to reduce soil erosion,
improve air quality and provide habitats for
many of our planet’s incredible species. But
with the natural world facing increasing
threats from issues such as climate change
and a growing global population, there
is a greater need for positive human
intervention.
As a purpose-led company, Intertek and its teams around
the world are actively involved in planting campaigns that
revitalise the environment as well as fostering community
spirit and highlighting the importance of collective action in
building a greener future.
Distributing saplings and school supplies
In celebration of World Environment Day on 5 June, Intertek
Bangladesh helped organise a tree planting campaign on
the grounds of a high school in Tejgaon, Dhaka. At the event,
Intertek team members planted and distributed 75 saplings
– or young trees – as well as providing stationery supplies to
250 students, many from underprivileged backgrounds.
Protecting biodiversity
Intertek Sri Lanka also celebrated World Environment Day
by organising a planting event. The team planted a variety
of species, selected for their abilities to visually enhance
the area, provide sustenance for local wildlife and improve
the health of the surrounding ecosystem. As a token of
appreciation, each participating colleague received a sapling
of their own.
Planting to inspire sustainability
Intertek Assuris’ Sustainability team in India marked World
Environment Day with Zydus Wellness, a consumer wellness
company and one of our ESG assurance customers, at its site
in Moriaya, Ahmedabad, Gujarat. Alongside the team from
Zydus Wellness, our colleagues planted trees across the
company’s premises in recognition of our shared commitment to
sustainability and ecological stewardship.
Enhancing the local environment
In Abu Dhabi, members of our UAE Industry Services team
participated in a tree planting drive in collaboration with
the Emirates Environmental Group and Abu Dhabi City
Municipality. This effort was part of the ‘For our Emirates
we Plant’ programme, which aims to enhance the local
environment through active community engagement and
corporate responsibility.
Intertek Group plc
Annual Report & Accounts 2024
2.49
Sustainability performance Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Communities
We create positive
impacts in the
communities
where we operate
As a global business with more than 1,000
laboratories and offices in over 100 countries,
Intertek is proud to be part of many thriving
communities around the world.
We understand that this comes with a huge opportunity and
responsibility to make a positive and lasting impact on these
communities. This responsibility is grounded in our Values: 'We
create sustainable growth. For all.'
240+
Community projects our employees participated
in focusing on education, giving back to local
communities and preserving our environment
Every year we organise and participate in a range of
impactful initiatives, from providing employment
opportunities and funding training and education
programmes, to volunteering our time, making donations
and supporting the work of charities.
Having worked and built relationships to understand the
diverse needs of each of our local communities, our
countries and business lines define their own agendas to
create a positive and lasting impact. These agendas are
tied to the Group’s priorities and aligned to the UN
Sustainable Development Goals. Our Beyond Net Zero
Steering Committee oversees community investments at
a global level.
In this section we share a small selection of standout
initiatives from the many community activities that our
colleagues took part in around the world during 2024.
17, 299
Hours volunteered to support
community projects
In action
Annual Report & Accounts 2024
Intertek Group plc
2.50
Sustainability performance Continued
Communities Continued
3: Financial Report
2: Sustainability Report
Advancing reconciliation efforts
across our communities in Australia
In early 2024, Intertek formalised its
commitment to advancing reconciliation
between Indigenous and non-Indigenous
Australians by receiving endorsement for
its Reflect Reconciliation Action Plan
(‘RAP’) from Reconciliation Australia.
Reconciliation is about strengthening relationships between
Aboriginal and Torres Strait Islander peoples and non-
Indigenous peoples for the benefit of all Australians. It aims
to foster mutual understanding, heal historical injustices
and build stronger, more inclusive relationships within and
between communities.
Reconciliation Working Group
Under the guidance of Reconciliation Australia, we are
laying the foundations for our reconciliation pathway with
our RAP. We have established a Reconciliation Working
Group of representatives across our Australian business
lines and locations. The working group meets fortnightly
and works collaboratively to implement our RAP objectives.
With more than 1,400 employees across our network in
Australia, this allows us to build meaningful relationships
with our local communities.
1: Strategic Report
Raising cultural awareness
NAIDOC Week celebrates the rich and diverse cultures
of Aboriginal and Torres Strait Islander peoples, and is
organised by the National Aborigines and Islanders Day
Observance Committee ('NAIDOC'). To mark the occasion, we
hosted customers and members of our extended community
at the Intertek Minerals Global Centre of Excellence in Perth,
where a guest speaker described the intricacies of Noongar
culture from clans across the South West region of Australia.
Building work skills
We are also engaging with WorkSkil Australia, a provider
of the Australian Government workforce services, through
participation in the Yirra Yaakiny Indigenous employment
programme. Each programme invites up to 12 Indigenous
jobseekers to attend a two-week skills programme.
Employers are then invited to meet with the jobseekers and
discuss employment opportunities in their organisation.
During 2024, we engaged in three of these programmes,
with job offers made to 14 participants.
There is a lot to learn from this ancient culture and, through
our Reflect RAP, we are starting our journey to meaningful
conversations to allow for knowledge exchange. Our team
in Australia is committed to building on the uniquely strong
partnerships we have in place and contributing to the five
key dimensions of reconciliation: race relations, equality
and equity, institutional integrity, unity, and historical
acceptance.
We welcome all our customers, partners, suppliers,
employees and broader communities to join us on this
journey towards reconciliation.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.51
Sustainability performance Continued
Communities Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Donating tested toys to
underprivileged children
Following generous donations from our
local and global customers, Intertek Hong
Kong has worked with two charities to
provide gifts to underprivileged children
across the region.
The team donated a range of board games to Box of Hope,
a non-profit which aims to spread joy to vulnerable children
and educate young people about poverty and how they
can make a positive impact through charitable giving. What
began as a small family project has grown into a significant
initiative and, since its establishment in 2008, the charity
has distributed over 350,000 gift boxes to children in need.
Having also collected safe, tested toys from our customers
around the world, we made a further donation to the
Celebrity Charity Fund Association, which promotes
community welfare development and supports
underfunded government charitable organisations.
Supporting flood victims
in Thailand
Driving inclusion for China’s
left-behind children
Across China, millions of children are left
behind in rural villages while their parents
migrate to find work, study or seek a
better quality of life.
These 'left-behind children', often because of poverty, face
a unique set of challenges, including consistent access to
education and other resources throughout their formative
and teenage years.
In September, Intertek Greater China joined forces with
Shenzhen Futian District Social Welfare and Social Donation
Center to provide stationery, books and sporting goods to
more than 300 left-behind children in Guangdong province.
Many colleagues participated in this initiative by donating,
packaging and sending the items to children in Gongbai
Town.
By contributing to initiatives which aim to ensure that
these children are included in wider society, we not only
support their pressing needs, but also help to build more
harmonious and stable communities for everyone.
Communities in northern Thailand were
severely affected by devastating floods
following Typhoon Yagi, a tropical cyclone
which impacted southeast Asia and south
China in September 2024.
Across northern Thailand, particularly in the Chiang Rai and
Chiang Mai provinces, thousands of people were stranded
as heavy rains flooded homes, agricultural land and
infrastructure.
In response, Intertek Thailand delivered essential goods,
food and clothing to those impacted. The donations were
made possible through voluntary contributions from our
employees, with many also helping to categorise and pack
the items for distribution. In addition to local efforts, our
APAC regional management team also supported the
initiative. All donated supplies were transported to the
impacted areas with the support of non-governmental
organisation The Mirror Foundation, ensuring that aid
reached those most in need.
This initiative highlights our commitment to helping
communities dealing with the fallout of natural disasters,
providing both short-term relief and long-term hope for
recovery.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.52
Sustainability performance Continued
Communities Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
New team makes big
community impact in Togo
Having only been established during 2023,
our laboratory team in Lomé – the capital
of Togo, West Africa – has already started
making a positive impact on its surrounding
communities through effective
collaboration with local authorities.
Joining forces with colleagues from our long standing
local operations team, they visited one of Lomé’s most
underprivileged communities, donating food parcels and
other essential items to help improve the quality of life of
elderly people. To ensure that help was received by those
who needed it most, the teams worked with the local town
hall to select the recipients of the donations.
During the same week, our laboratory and operations team
members worked with Togo’s Ministry of the Environment
to plant 300 tree seedlings and boost biodiversity at a
primary school in Agnave. Water and forestry officers
suggested the location to address the lack of trees caused
by widespread deforestation in the surrounding area.
These colleagues also helped to educate local students on
how they, as the next generation of community leaders,
can contribute to preserving the natural world, empowering
them to embrace environmental stewardship as part of a
sustainable future.
Donating essential medical
supplies to a community hospital
As part of its commitment to building
healthier and stronger communities, Intertek
Bangladesh has donated essential medical
equipment to Ahsania Mission Cancer and
General Hospital in Mirpur, Dhaka.
The team first connected with Ahsania Mission Cancer and
General Hospital during a programme of engagement with
several community-based clinics and hospitals across Dhaka,
with the aim of identifying opportunities to provide support.
The hospital expressed an urgent need for oxygen cylinders
and concentrators, having struggled with an insufficient
supply. To help address this shortage, we donated eight
oxygen cylinders with oxygen flowmeters and one oxygen
concentrator. This equipment, which was originally stocked
during the Covid-19 pandemic, is now being used in the
hospital’s oncology department, which provides specialised
care to patients undergoing treatment for cancer.
Ahsania Mission Cancer and General Hospital treated nearly
35,000 people last year, playing an especially important role in
the fight against cancer in Bangladesh. With these additional
resources, the hospital can serve its patients more effectively,
ensuring that they receive crucial care without delays caused
by equipment shortages.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.53
Sustainability performance Continued
Communities Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Improving livelihoods through
agricultural sustainability training
Intertek India has been working closely with
250 marginalised farmers – mostly women –
in the village of Narspur, Hyderabad, on a
transformative initiative designed to build
sustainable farming capabilities and support
the development of the local economy.
‘Planted with Purpose’, launched in 2023, helps to improve
the quality of life for those in rural communities and their
surrounding areas by focusing on skill enhancement and
promoting entrepreneurship. This includes training on
medicinal mushroom cultivation, organic farming, soil testing,
livestock management and micro-enterprise creation, as well
as helping the farmers to establish links to market.
This is an especially important initiative in Narspur, where
women have often struggled to maintain stable livelihoods
due to limited access to education and employment
opportunities. Most families have no land, and many men
are seasonal migrant workers. ‘Planted with Purpose’
has therefore empowered its beneficiaries to start small
businesses and generate much-needed income.
In the first year of the project, the farmers cultivated 156kg
of medicinal mushrooms. Encouraged by this success, they are
looking at broadening their mushroom cultivation to include
various seasonal varieties.
To enhance the impact of these efforts, Intertek helped
establish a farmer producer organisation called Organicoasis.
This project is also helping with the creation of sustainable
rural livelihoods and the socio-economic empowerment
of local people, again mostly women from marginalised
communities.
Providing quality STEM education
to thousands of young people
With an increasing global demand for
science, technology, engineering and
mathematics (‘STEM’) professionals, it has
become essential to give young people
access to these subjects at an early age.
In India, several government initiatives are focused
on promoting STEM in schools, including the National
Education Policy 2020.
Taking advantage of our science-based expertise,
Intertek India has partnered with several government
schools in rural Gurugram and Mumbai on its ‘Design for
Good – STEM Education’ project. This initiative is giving
more than 40,000 young people, mostly first-generation
learners from low-income families, access to quality STEM
education, including a practical understanding of scientific
concepts and critical thinking skills, at no cost.
In addition to the focus on students, the initiative has
involved upgrading infrastructure and the building of
STEM labs, as well as the training and capacity building
of teachers to promote innovative and engaging methods
of instruction.
During the first phase of the project, which completed
in 2024, more than 20,000 students benefitted.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.54
Sustainability performance Continued
Communities Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Equipping students
with the tools for success
When Ghana’s biggest hydroelectric dam
overflowed in 2023, Volta Region was
flooded, and thousands of people lost
their homes and livelihoods.
With the region already facing significant economic
challenges, including poverty and lack of access to
education, the Intertek Ghana team took action to help
alleviate additional pressure caused by the flooding.
After reaching out to local government representatives
to learn where we could make the biggest impact, our
team travelled from Accra to visit three schools in the
towns of Awusakpe, Adutor and Adidome. Our colleagues
supplied essential items including desks, tables, chairs
and textbooks, as well as donating stationery and
exercise books to more than 600 children. The team also
repaired leaking roofs, helping to create a safer and more
comfortable environment for effective learning.
It was a day filled with uplifting moments as our team
encouraged the students to dream big and work hard
towards their goals. In regions like Volta, where many
communities have high student dropout rates, these
initiatives can be truly lifechanging.
Offering educational experiences
to young people
Every year in Germany, Zukunftstag –
or Future Day – takes place across the
country to offer young people a unique
insight into the working world.
As part of our commitment to supporting future
generations, we marked the day by inviting a group
of 14- and 15-year-olds to our Food Services laboratory
in Bremen.
The Intertek Food Services GmbH laboratory in Bremen
makes an essential contribution to the global food and
agriculture industries, as well as end consumers, by
ensuring the safety, quality and sustainability of both
production and produce. On Future Day, our expert team
gave our young guests an interactive tour, teaching them
about our important work and how it impacts the world.
The visit ended with the young people conducting their
own experiment.
The day was rewarding for everyone involved and provided
a great opportunity to showcase potential careers in the
testing, inspection and certification industry to the next
generation of local talent. We look forward to welcoming
another group of young minds in 2025.
Tackling food waste
in Switzerland
As a force for good in the world, we
encourage our employees to take part
in volunteering that matters to them
and supports the pressing needs of
their local communities.
While our colleagues can arrange their own volunteering
days, we also invite them to join corporate initiatives that
align to our Purpose and Values.
In Switzerland, our Basel team volunteered with
Thanksgiver Schweiz, a charity which provides food
collected by supermarkets to people at risk of poverty.
Our colleagues spent a day setting up a food bank in
Muttenz and helped to distribute more than 2,500kg of
food items. Around 1,200 people use Thanksgiver’s food
banks every week, and the charity saves at least 400
tonnes of food from being wasted each year.
Around the world, over 13% of all food produced is
lost between harvest and retail, with further waste in
households and the service industry. This waste leaves
hundreds of millions without adequate nutrition, as well
as significantly contributing to global greenhouse gas
emissions. By supporting organisations like Thanksgiver,
we help those in need while also protecting our planet.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.55
Sustainability performance Continued
Communities Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Repurposing crisp packets
into sleeping bags for
homeless people
As one of its sustainability and
community support projects for 2024,
our Chemicals & Pharmaceuticals (C&P)
team in Wilton, Teesside, UK, is supporting
an innovative initiative which sees empty
crisp packets turned into sleeping bags
for homeless people.
Crisp packets are waterproof and have insulating
properties, and by fusing 150 together you can create a
thermal sleeping bag capable of keeping a homeless person
dry and warm at night. Working with other businesses in
the area, our colleagues in Wilton have been collecting crisp
packets for Nite Light CIC, a charity which provides aid and
support to the most vulnerable people in Teesside. Several
members of the team have also been using their annual
volunteering days to help make the sleeping bags, which
are distributed at local free markets.
North-east England is one of the regions worst affected
by poverty in the UK, and the Redcar and Cleveland
borough, where our Wilton laboratory is located, is home
to a number of disadvantaged communities. By supporting
this important initiative, our team is enabling Nite Light CIC
to make an increasingly positive difference to the lives of
those in most need.
Collecting bottle caps
to fund cancer care
In Mexico, our colleagues have combined
social impact and environmental
responsibility by joining an innovative
initiative through which bottle caps
are collected to support young people
with cancer.
Banco de Tapitas is a non-profit organisation which
collects and recycles bottle caps to raise money for medical
treatment, medication and transport for cancer patients
under the age of 21. Given the initiative’s strong alignment
with our goals for making a positive impact on our local
communities and the environment, our Human Resources
team reached out to establish a partnership.
Despite only joining the initiative in August, the teams
across all 18 of our facilities in Mexico made a significant
effort to collect 206kg of bottle caps by the end of
November. Following the first delivery of bottle caps,
the collection was re-opened and continues as one
of our ongoing initiatives.
Joining national flood
relief efforts in Brazil
When heavy rains during April and May
2024 caused widespread flooding across
the Brazilian state of Rio Grande do Sul, the
impacts were devastating. Lives were lost,
hundreds of towns were submerged and
over 500,000 people were forced out of
their homes, which also threatened the
stability of the local economy.
As the country rallied in solidarity with those affected,
our branches in Osasco (Controle Analítico) and Barueri
joined forces with the national post office to offer essential
support. Our colleagues at both locations banded together
to collect non-perishable food, water, and clothing, which
the national post office delivered to those in need via boat.
In addition, our teams in Brazil set up a separate internal
taskforce to raise money for colleagues who had been
directly impacted by the floods.
At a time when many people had lost everything, initiatives
like these provided those affected with not just hope, but a
means of survival.
Intertek Group plc
Annual Report & Accounts 2024
2.56
Sustainability performance Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Responsible Business
To deliver long-term sustainable success,
we strive for the highest standards of
corporate governance, conduct and integrity.
Through our entrepreneurial culture and Values, we strive
to make the world better, safer and more sustainable.
Our responsible business practices – protecting human
rights, 'Doing Business the Right Way', ensuring data
privacy and good information governance, and operating
sustainable procurement practices – underpin our
focus areas and the commitments we have made.
Human rights
Respecting human rights is core to everything
we do and is supported through our Labour and
Human Rights policy, Code of Ethics and Sustainable
Procurement policy. Intertek’s policies and codes fully
respect the International Bill of Human Rights, the
International Labour Organization’s Declaration on
Fundamental Principles and Rights at Work, and the
UNICEF Children’s Rights and Business Principles.
We are committed to ensuring that our employees are
subject to fair working practices and are treated with
respect. We continually review our approach in this area
to reflect any legal developments, emerging issues and
changing societal expectations. Following our 2024
review, we revised our companywide Labour and Human
Rights policy and integrated it with our Modern Slavery
policy to simplify and clarify our approach in this area.
We are
uncompromising
on quality and
compliance
READ OUR LABOUR AND HUMAN RIGHTS POLICY AT
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Some of the ways in which we work to promote
human rights within our business include:
• Working conditions: We comply with all applicable
labour and human rights laws and industry standards
on working hours, paid annual vacation, rest periods
and statutory minimum wages.
• Indigenous rights: We respect the rights of Indigenous
peoples. Our goal is to support our leaders, our people
and our communities to develop respectful relationships
and create meaningful opportunities for dialogue with
Indigenous people, where appropriate.
• Forced labour: We do not tolerate any form of forced
labour, child labour, slavery, human trafficking, physical
punishment or other abuse within our business or our
supply chain.
• Our Modern Slavery Act Statement outlines the steps
we are taking internally, in our supply chain and through
partnerships and advocacy to avert modern slavery
and human trafficking. The statement is available
on our website.
• Child labour: We do not employ people below the age of
15 or below the local minimum employment/mandatory
school age – whichever is higher and relevant to the
particular country. Where we provide apprenticeships for
young people, we put special protections in place and
ensure they are not exposed to hazardous work.
• Collective bargaining: We respect the rights of our
employees to form and join trade unions and take part
in collective bargaining where this is as per local law.
We also take care that employee representatives do not
suffer discrimination and that they have open access
to members in the workplace. We strictly adhere to tariff
structures and arrangements negotiated with trade
unions, and we also inform and consult employees on
relevant business activities. For example, we respect
statutory minimum notice periods and give reasonable
notice of any significant operational changes in line
with local practices and labour markets. Our affiliates’
communication and consultation processes are tailored
to local needs.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.57
Sustainability performance Continued
Responsible Business Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
'Doing Business the Right Way'
We continue to develop a best practice compliance
programme to ensure Intertek operates with the highest
standards of compliance and ethical business practices,
including through our supply chain partners.
We are committed to maintaining the total confidence of our
stakeholders. One of the Group’s primary business objectives is
to help our customers meet quality standards for virtually any
market in the world and protect them against risk by ensuring
compliance with local, national and international laws.
The accuracy and validity of the reports and certificates that we
provide are, therefore, important factors which contribute to our
success and integral to this work is ‘Doing Business the Right
Way’, our internal risk, control, compliance and quality programme.
Our compliance programme is designed to:
• give our people the processes, tools and training they
need to ensure a safe and inclusive environment;
• support the delivery of our services and the performance of
our contracts with integrity and in line with our commitment
to Total Quality;
• obtain the commitment of every colleague to the highest
standards of professional conduct; and
• deliver sustainable growth by managing our risks and
doing the right thing for the longer term.
Public policy
We interact with trade associations and governmental
authorities to provide input into industry and regulatory
improvements in product safety, quality and risk assurance.
In our interactions with governments, governmental authorities
and regulators we ensure that we comply fully with all laws
and regulations.
Ethics, integrity and professional conduct
Our commitment to the highest standards of integrity and
professional ethics is embedded in the Group’s culture through
the principles set out in our Code of Ethics ('Code'). The Code
sets a clear expectation that people working for our business
must act at all times with integrity and in an open, honest,
ethical and socially responsible manner.
The Code also covers anti-bribery, anti-competitive practices,
and labour and human rights.
The Board, as a whole, oversees the implementation of human
rights commitments and supports human rights as defined in
the Code.
We have a culture in which all issues relevant to our professional
conduct and the Code can be raised and discussed openly
without recrimination. We operate a strict zero-tolerance policy
regarding any breach of our Code and any behaviour that fails
to meet our expected standards.
To support the implementation of our Code in our day-to-day
business activities, all people working for, or on behalf of, Intertek
are required to sign a declaration of compliance with the Code.
This confirms their acceptance of the high standards expected
of them in all business dealings.
Intertek employees and people acting on Intertek’s behalf
are responsible for applying the Code in their own job role,
their part of the business and their location.
Every year, to support continued understanding in this area,
all eligible employees are required to complete our Code of Ethics
training course. This training covers such subjects as integrity
issues, including human rights, bribery, corruption, non-
discrimination and employee relations, and other important
subjects relating to ‘Doing Business the Right Way’, such as data
security and operational controls. The Code also contains clear
guidance on the grievance mechanisms and whistleblowing
procedures that we have in place to report known or suspected
wrongdoing or non-compliance. Once completed, all employees
are required to sign a document confirming their understanding
that any breaches of the Code will result in disciplinary action
that may include summary dismissal of the employee concerned.
100.0%
Eligible employees (rounded to the nearest 0.1%)
who completed our Code of Ethics training in 2024
New legal, risk and compliance
tool for employees
To provide colleagues with additional
support in 'Doing Business the Right Way'
and to ensure consistently high standards
across the company, our Legal, Risk &
Compliance team launched an online
‘Ask A Question’ tool in 2024.
This powerful new tool enables employees to categorise
their questions by region and nature and to send these
queries directly to the relevant team member in just a few
clicks. Through increased efficiency and accessibility, the
tool has transformed the way our employees gain essential
knowledge and receive guidance, helping us to continue
to effectively safeguard Intertek and all our stakeholders.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.58
Sustainability performance Continued
Responsible Business Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Whistleblowing hotline
To empower our people and stakeholders to voice any concerns
about breaches of the Code or any of our other policies (including
our Labour and Human Rights policy), we have a well-publicised
hotline which can be used by all employees, contractors and
others representing Intertek, or by third parties such as our
customers or people who are affected by our operations.
This whistleblowing hotline is run by an independent, external
provider. It is multi-language and is accessible by phone and
by email 24 hours a day.
Those who are aware of any non-compliances with our
policies and procedures are encouraged to report that conduct,
non-compliance, or integrity or ethical concern using the
hotline. Information posters are present in all of our sites.
Once a report is made to the hotline, it is triaged through
the system and will be followed up by the relevant function,
depending upon the nature of the allegation of non-compliance
made. Our Group Compliance function, which is independent of our
operational businesses and reports directly to our Group General
Counsel, investigates, as appropriate, all reports received relating
to integrity issues and other compliance matters. Provided there
is no conflict of interest, all reports of integrity and compliance
matters are also notified to our Group Ethics & Risk Committees,
which consist of our CEO, CFO, EVP – Human Resources and Group
General Counsel. This reporting line promotes effective oversight
of the resolution of individual issues, and also of any systemic or
process improvements that can be made to address them.
During 2024, there were 127 reports of non-compliance
with the Code made to our hotline. Of those reports, 29 were
substantiated or partially substantiated and required remedial
action. Of those substantiated claims:
• there were no substantiated grievances relating to human
rights, labour practices or societal impact breaches;
• there were no environmental incidents;
• there were no anti-trust incidents;
• there were no violations of the rights of Indigenous people; and
• there were no cases of discrimination.
Four confirmed incidents were identified through our hotline
where employees were disciplined or dismissed due to
non-compliance with our anti-corruption policy.
Sustainable procurement
We are deeply committed to operating with integrity by ‘Doing
Business the Right Way’ and to pursuing our corporate social
responsibility activities through living our strong Values.
Our suppliers have an important part to play in contributing
to our sustainability. To ensure that both our employees and our
suppliers are fully aligned to our ethical and sustainable supply
chain approach, we keep our Sustainable Procurement policy and
Supplier Code of Conduct under ongoing review and update them
as appropriate.
READ OUR SUSTAINABLE PROCUREMENT POLICY
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Our sourcing approach
We work with thousands of suppliers around the world. We
expect all suppliers to meet the same internationally recognised
human rights, environmental and quality standards that we
expect of our own businesses. These include meeting local
legislative requirements but also all applicable international
requirements for workers’ welfare and conditions of
employment, such as those set by the International Labour
Organization (‘ILO’) and the Ethical Trading Initiative.
Large global suppliers offer stability in terms of financial
resilience, delivery capacity and pricing structures, potentially
coupled with better pricing and improved margins. However,
our supply chain is quite diverse and geographically dispersed,
and our procurement teams need to find regional and local
suppliers. Through structured sourcing processes, we select the
best option for us while continuing to support local suppliers who
meet our business and sustainability requirements. Selecting
regional and local suppliers, where appropriate, demonstrates our
commitment to supporting the communities in which we operate.
Evaluation of suppliers
Our corporate procedures govern our purchasing and evaluation
of vendors and sub-contractors supplying Intertek with goods
and services.
Approval and evaluation may be based on quality, health
and safety, environmental performance and delivery factors.
Performance is also measured, recorded and benchmarked
against established objectives as part of our disciplined
performance management principles.
In our procurement choices we are working to achieve our
SBTi-validated near-term target of ensuring that 70% of our
key supply chain partners have set their own science-based
climate targets by 2027.
New risk committee structure
In a dynamic and constantly changing
world, our products and services are
always evolving to meet the needs of
our stakeholders. This means that we
are continuously reviewing and refreshing
our approach to 'Doing Business the Right
Way' – our internal risk, control, compliance
and quality programme.
Through our integrated approach to risk management,
we have regional, divisional and functional committees
reporting to a Group Risk Committee, which manages,
assesses and promotes the continuous improvement of
our risk management, controls and assurance systems.
Having adjusted our business model to report revenue,
operating profit and margin across five divisions in 2023,
we aligned our risk committee governance structure to
support risk management in these divisions during 2024.
As we have welcomed many new colleagues since the
launch of 'Doing Business the Right Way' in 2017, we also
took the opportunity to refresh and set expectations for
all risk committee members around the world. This included
training on our processes and further reviews of global
risk committee membership to ensure the right balance
of functional, divisional, location and skill representation.
2.59
Intertek Group plc
Annual Report & Accounts 2024
Sustainability performance Continued
Responsible Business Continued
3: Financial Report
2: Sustainability Report
Enterprise security
At Intertek we have adopted a risk-based cyber security
framework, based on international best practice, the US National
Institute of Standards and Technology ('NIST') Cybersecurity
Framework. Our framework guides clear policies, guidelines and
supporting controls. We continue to innovate, enhancing service
delivery and strengthening internal and external customer
relationships to protect customer, employee and Intertek data.
There is regular reporting on progress of the security programmes
to governance and oversight committees by our dedicated
President, Information Security, who leads a global team.
We use a risk-based security framework model:
1: Strategic Report
Sustainability Disclosure Index
The 2024 Intertek Sustainability Disclosure Index
is complementary to our published reports and sets
out how our latest disclosures map to our own Total
Sustainability Assurance standards, the Global
Reporting Initiative (‘GRI’) and applicable Sustainability
Accounting Standards Board (‘SASB’) requirements.
Global data privacy training
As part of our commitment to security and
compliance, relevant employees across the
company were selected to complete a new
digital mandatory data protection training.
The training, assigned through our global learning
management system Lucie, was allocated to management-
level employees who potentially process personal data
in their roles. It was designed to enhance understanding
of the relevant data protection principles and to support
individual compliance with the regulations, which are critical
for protecting the personal and sensitive information of our
customers, colleagues and the business.
By ensuring that our employees receive this essential
training, we protect our data in line with our own high
standards for security and privacy, as well as meeting
the legal requirements on data protection.
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
MORE INFORMATION ON HOW SUSTAINABILITY
IS GOVERNED AT INTERTEK CAN BE FOUND WITHIN
OUR DIRECTORS’ REPORT ON PAGE 2.60
Identify
We develop a clear organisational understanding
of risks to our systems, people and data, enabling
us to prioritise efforts that are consistent with our
risk management strategy and business needs.
Protect
We put in place appropriate safeguards to ensure
delivery of critical services, including access control,
staff awareness and training, and data security.
These safeguards support our ability to limit
or contain the impact of potential events.
Detect
We define the appropriate activities for the timely discovery
of the occurrence of security events. We monitor continuously
and verify the effectiveness of protective measures.
Respond
We ensure response planning processes are executed before,
during and after an incident, so that we take appropriate
action regarding situations and contain their impact. We also
implement improvements, by incorporating lessons learned
from current and previous detection/response activities.
Recover
We undertake appropriate activities to maintain plans for resilience
and to restore any capabilities or services that were impaired due
to an incident. Our recovery function ensures timely recovery
to normal operations to reduce the impact from an incident.
Data protection
We believe that all our people and our customers have the
right to privacy. To uphold this, we have implemented practices
that align with the standards required to meet applicable data
protection regulations across our markets and operations
where personal data is processed. We have established policies
mapped to the General Data Protection Regulation ('GDPR') to
ensure that personal data is handled in accordance with data
protection principles. Local adaptations of these practices
are made where legally required or deemed appropriate.
Our
risk-based
security
framework
Identify
Protect
Data
protection
Detect
Recover
Respond
Govern
Intertek Group plc
Annual Report & Accounts 2024
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2: Sustainability Report
1: Strategic Report
Governance at a glance
2.61
Compliance with the UK Corporate
2.61
Governance Code
Governance structure
2.62
Chair's introduction
2.64
Board of Directors
2.66
Group Executive Committee
2.69
Board leadership and company purpose
2.70
Composition, succession and evaluation
2.78
Audit, risk and internal control
2.81
Committee reports
Nomination Committee Report
2.82
Audit Committee Report
2.86
Remuneration Committee Report
2.94
Other Disclosures
2.127
Statement of Directors Responsibilities
2.131
The Directors present their report and the audited consolidated
financial statements for the year ended 31 December 2024 in
Report 2 and Report 3.
Directors' report
Board promise
We recognise our responsibility to all
stakeholders and will strive to ask the
questions that matter and make the
right decisions.
We will be forward looking and use our
diverse perspectives and insights to promote
Intertek’s Purpose of bringing quality, safety
and sustainability to life.
We will inspire our people to take client
relationships and our performance to
greater heights and to create sustainable
growth for all.
Andrew Martin
Chair of the Board and
Nomination Committee Chair
Graham Allan
Senior Independent Director and
Remuneration Committee Chair
Jean-Michel Valette
Non-Executive Director and
Audit Committee Chair
Governance highlights
Returns to shareholders
Dividend
156.5p Ordinary dividend per share for the financial
year ended 31 December 2024 including interim and
final dividend.
Share buyback
Initial £350 million share buyback to be completed
during 2025.
Progressed Board succession
Approved the appointment of a new Non-Executive
Director.
Acquisition
Focused on investing in growth through targeted
acquisition activity that will benefit customers
and shareholders.
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Annual Report & Accounts 2024
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3: Financial Report
1: Strategic Report
2: Sustainability Report
Our Non-Executive Directors have a
diverse skillset and background as shown
in the table above. This expertise
enables the Board to constructively
challenge management and encourages
diversity of thought in the decision
making process. For their full biographies
please see our website.
Compliance with the 2018
UK Corporate Governance
Code ('Code')
Governance at a glance
The Board believes in good corporate
governance through effective oversight,
including how the Company assures
stakeholders on performance delivery
and reports on its progress.
Board composition and diversity as of 31 December 2024
Board skills and experience
THE CODE IS AVAILABLE AT WWW.FRC.ORG.UK
The Board confirms that during 2024, the Company has
consistently applied all the principles and has complied
with all the provisions of the Code apart from Provision 38.
Provision 38 stipulates that the pension contribution rates
for Executive Directors should be aligned with that of the
workforce. The pension contribution for all new Executive
Directors appointed to the Board since 2018 has been aligned
with that of the workforce. For the CEO, from 1 June 2025,
the pension contribution will be aligned with the UK workforce.
More information on the engagement with shareholders on this
issue is outlined in the letter from the Chair of the Remuneration
Committee in the 2021 Annual Report & Accounts.
A more detailed explanation of our compliance with the Code can
also be found on our website at intertek.com. The information
required to be disclosed in accordance with DTR 7.2.6 can be
found in the Other Disclosures section on pages 2.127-2.130.
The Board remains dedicated to clear and honest reporting.
It has reviewed and is preparing for the changes to be introduced
by the 2024 UK Corporate Governance Code, which will begin
applying to Intertek from 1 January 2025. Where the Board
has taken steps to implement any provisions, this is indicated
throughout the report.
Male
64%
Female
36%
Board balance
by gender
Executive Directors
18%
Independent Non-Executive Directors
82%
Board balance by
independence
White
73%
Asian
27%
Ethnicity
0–3 years
37%
3–6 years
18%
6–9 years
36%
9+ years
9%
Board tenure
Geographical
heritage
Europe
46%
North America
18%
Australasia
9%
South-East Asia
27%
Consulting
Risk management
Customer service/Care
People
Finance
International
Sustainability
Digital/Technology
UK Listed Company Director
Previous/Current CEO
UK Non-Executive Director experience
INTERTEK.COM/ABOUT/
EXECUTIVE-COMMITTEE
Intertek Group plc
Annual Report & Accounts 2024
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1: Strategic Report
Governance structure
Audit Committee
See page 2.86 for the Committee Report
Our Board of Directors
See pages 2.66-2.68 for their biographies
Nomination Committee
See page 2.82 for the Committee Report
Remuneration Committee
See page 2.94 for the Committee Report
Supporting Committees
Risk Governance
Sustainability Governance
The Group Executive Committee
operates a number of supporting
committees which provide oversight
on key business activities and risks.
Net Zero Steering
Committee
Group Risk
Committee
Ethics and Compliance
Committee
Regional, divisional and
functional risk committees
Disclosure Committee
Group Investment
Committee
Regional management,
Net Zero Champions
and finance
Beyond Net Zero
Steering Committee
Regional Sustainability
Committees and Champions,
Regional HR and Marketing
Business Lines
The Board delegates specific
responsibilities, subject to certain
financial limits governed by the Core
Mandatory Controls, to management.
The Chief Executive Officer and the Group Executive Committee
See page 2.69 for the Group Executive Committee
Intertek Group plc
Annual Report & Accounts 2024
2.63
Governance structure Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
The Board has the ultimate and collective responsibility to promote
the long-term sustainable success of the Company, ensuring that
value is created for shareholders and contributes to wider society
through its effective, entrepreneurial and innovative leadership. It
ensures that the necessary resources are in place for the Company
to meet its objectives and measure performance against them.
Our Board consistently acts with integrity, leads by example and
promotes the culture to ensure its dissemination throughout the
Company. It sets the strategic aims of the Company, its Purpose,
Customer Promise, Vision and Values in alignment with our culture
as outlined on pages 1.11 and 1.18-1.29 in Report 1.
The Board Committees are delegated a specific area of focus
by the Board.
Matters reserved for the Board and its Committees’
Terms of Reference can be found on our website at:
intertek.com/about/compliance-governance.
The CEO is responsible for:
•
• Leading the day-to-day operations of the Group in line with
the agreed strategy and commercial objectives.
• Promoting and conducting the affairs of the Company with
the highest standards of ethics, integrity, sustainability and
corporate governance.
Proposing and agreeing the Group strategy with the Board.
The Group Executive Committee establishes and
oversees the committees needed at Group and
business line level to effectively implement the
strategy and achieve its delivery. The responsibilities
of each committee are delineated through clear and
approved terms of reference.
Ensures the Board and its Committees have the correct balance
of skills, experience and knowledge and that adequate and
orderly succession plans are in place.
Oversees the Group’s financial reporting, ensures the
effectiveness and independence of the external and internal
audit functions and reviews the Group’s financial internal
controls and risk management systems.
Establishes the Group’s Remuneration Policy and ensures that
it supports the strategy promoting the long-term sustainable
success of the Group and that there is a clear link between
performance, remuneration and alignment with our Purpose,
Vision, Values and strategy.
The Group Executive Committee is responsible for:
• Supporting the CEO in the delivery of our AAA differentiated
growth strategy.
• Providing input into strategic and operational decisions aligned
to business priorities, and supporting the delivery of actions.
• Supporting the CEO in implementing decisions made by the Board.
Monitoring of delegated matters is governed by our
Core Mandatory Controls, an annually reviewed and
refreshed framework that allows the delivery of
strategic aims and financial performance whilst
enabling risk to be assessed and managed.
On executive matters, the CEO and CFO are
responsible for providing updates at each
Board meeting.
Our
Board of
Directors
Chief
Executive
Officer
Supporting
Committees
Nomination
Committee
Audit
Committee
Remuneration
Committee
Group
Executive
Committee
Intertek Group plc
Annual Report & Accounts 2024
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3: Financial Report
2: Sustainability Report
1: Strategic Report
Building a consistent
track record of
achievement for
all stakeholders.
Chair's introduction
On behalf of the Board,
I would like to thank our
colleagues across the
world for their continued
commitment to Total
Quality Assurance and to
‘Bringing quality, safety
and sustainability to life’."
Andrew Martin
Chair
We have increased our targeted dividend pay-out ratio to circa
65% of earnings, reflecting our financial position and the Board’s
confidence in our long-term growth prospects. In line with this
new dividend policy, the Board is proposing a final dividend of
102.6p, bringing the total pay-out to 156.5p for the full year.
With year-end net financial debt of £500m and leverage below
our target level and a highly cash generative business model,
in accordance with our capital allocation policy, we are pleased
to announce an initial £350m share buyback programme to be
completed during 2025. We will retain capacity for organic capex
and value accretive M&A and while leverage remains below the
bottom of our target range, we expect to announce annual
share buybacks.
Strategy and People
Our AAA differentiated growth strategy introduced in 2023
is progressing well, and the team's execution has been strong.
We believe this long-term strategy, extending out to 2030,
will unlock significant growth opportunities for our ATIC
solutions business.
Our people are our most important asset. It is their hard work,
expertise, and collaboration that are the key to our success.
We are keen to attract, retain, and develop the best talent
for the future. The Board fully supports investment in their
development and wellbeing to foster a high-performing,
purpose-driven, and inclusive culture.
We are committed to further diversity in our workforce, firmly
believing that different ways of thinking, knowledge and
backgrounds are key drivers of innovation and performance.
Investment and Innovation
The ongoing commitment to innovation ensures that we
remain at the forefront of our industry. Following CarbonClear
and CarbonZero in 2023, we launched Methane Clear in 2024
to monitor methane emissions; we agreed strategic partnerships
with Trace for Good to develop a traceability and sustainability
SaaS platform for complex supply chains, and with CrystecPharma
to develop a ‘fast to clinic’ platform to support pharmaceutical
client development of dry powder inhaler products. These are
just a few examples of the many excellent innovations across
the business.
Dear shareholder
I am pleased to report another year of progress and growth
that reflects our commitment to Total Quality Assurance. In
an uncertain and unpredictable world, we continue to build a
consistent track record of achievement for our stakeholders –
providing a rewarding environment for our people, delivering
outstanding client service, and creating value for shareholders.
Financial performance
This year we have concentrated on further strengthening our
operational and financial performance and are delighted with
the results. We achieved strong organic growth for the second
consecutive year, showcasing the resilience and adaptability
of our business model. We have benefitted from innovation
across the entire business, as well as the cumulative impact of
numerous projects driving operational leverage in the business.
Supported by continued high retention, a targeted restructuring
programme, and broad-based performance across all our
business lines, I am delighted that margins progressed to
effectively match the historic peak of 17.5% achieved in 2019.
Our focus on cash delivered an excellent outcome, and our
financial position remains robust. We are committed to our
clearly defined and disciplined approach to capital allocation.
The Board supports investment in the business, and we will
continue to fund innovation initiatives and value accretive M&A,
while recognising the importance of Return on Invested Capital,
which improved to 22.4% for the year.
Intertek Group plc
Annual Report & Accounts 2024
2.65
Chair's introduction Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
We have also been investing in new facilities to expand Caleb
Brett’s services, as well as for our Electrical and Chemicals &
Pharma businesses. Staying at the forefront of the industry,
Business Assurance now offers auditing and certification
services for the world’s first AI standard to enhance ethical
and responsible practices.
Last March, we acquired Base Met Labs, a provider of
metallurgical testing services for the Minerals sector,
strengthening our commitment to the mining industry.
Governance and the Board
The Board strives to operate with the highest governance
and ethical standards. These remain a cornerstone of Intertek.
We believe that maintaining this framework is critical for the
long-term sustainable success of the Company, generating value
for shareholders and contributing to society as a whole. We see
our role as supporting and constructively challenging executive
management as they execute our AAA strategy. We are keenly
aware that we remain accountable for governance, risk controls,
and oversight of operations, financial performance, and culture.
This year Gould Consulting carried out an external Board
performance review. Their evaluation concluded that the
Board and its Committees have clear and appropriate terms
of reference, policies, and processes and have the necessary
information, access to resources and sufficient time allocated for
discussions. The Board also has an appropriate balance of skills,
experience, and knowledge to encourage, challenge, and debate.
All this ensures that the Board operates effectively.
There has been one change to the Board during the year, with
Gill Rider retiring as a Non-Executive Director at the 2024 AGM
after serving for nine years. I would like to thank Gill for her
excellent contribution and dedication to the Company during her
tenure. On 24 December 2024, we were delighted to announce
that Steve Mogford would join the Board as a Non-Executive
Director on 1 January 2025. Steve brings a wide range of
valuable experience in both executive and non-executive
roles across a wide range of sectors.
I joined the Board of Intertek in May 2016 and have served
as Chair since January 2021. The Nomination Committee is
responsible for the appointment of my successor and while this
process is ongoing, I intend to stand for re-election at the AGM
in May 2025 to enable an appropriate transition to the next
Chair. I expect to have stepped down as Chair, and from the
Board, at or before the 2026 AGM.
Engagement
During 2024, the Board travelled to Perth, Western Australia
for a Board meeting and took the opportunity to visit the
Minerals Global Centre of Excellence and various client sites in
Port Hedland. Additionally, I visited Bogotá, Colombia and met
with several individual clients. These visits have been invaluable
in understanding the local dynamics, engaging with colleagues,
and learning about the business firsthand.
I also held meetings with a number of major shareholders
controlling approximately 20% of the Company where we
discussed governance and topical board matters ahead of the
AGM, and I received valuable feedback. This engagement is
important for ensuring transparency and aligning our strategic
direction with shareholder expectations.
MORE DETAILS ON OUR ENGAGEMENT WITH
SHAREHOLDERS CAN BE FOUND ON PAGE 2.77
Preparing for upcoming changes –
2024 Corporate Governance Code
With the new UK Corporate Governance Code taking effect from
2025 the Board is diligently preparing for its implementation,
and is committed to meeting the requirements within
the necessary timeframes. We will report on our implementation
progress in due course.
Summary
The year 2024 was another period of strong performance
for Intertek. Organic revenue growth was the highest for many
years, margins are at peak levels, free cash flow was excellent,
and we stepped up the dividend pay-out ratio and announced
our first share buyback programme.
On behalf of the Board, I would like to thank our colleagues
across the world for their continued commitment to Total Quality
Assurance and to ‘Bringing quality, safety and sustainability
to life’. Intertek is a great business with a clear strategy, global
presence, market-leading positions and capabilities, and strong
growth prospects. We look forward to sharing further successes
with you in the future.
Yours sincerely,
Andrew Martin
Chair
Intertek Group plc
Annual Report & Accounts 2024
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Committees:
Audit
Nomination
Remuneration
Committee Chair
Andrew Martin
Chair
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
(Tenure is given as at 31 December 2024)
Graham Allan
Appointed: to the Board in May 2016;
appointed Chair in January 2021
Tenure: 8.5 years
Skills and competencies:
Andrew is a qualified accountant and an
Associate of the Chartered Institute of
Taxation with wide-ranging experience and an
extensive financial background within large
international organisations, who provides
great strength and depth to the Intertek
Board. His experience as a Chair and as
Non-Executive Director assists in promoting
the long-term sustainable success of the
Company for stakeholders and generating
value for shareholders.
From 2012 to 2015, Andrew was Chief
Operating Officer for Compass Group plc having
previously been their Group Finance Director
from 2004 to 2012. Before joining Compass
Group, he held senior financial positions with
First Choice Holidays plc (now TUI Group), Forte
plc and Granada Group plc (now ITV plc) and
was a partner at Arthur Andersen.
Andrew has been a Non-Executive Director of
easyJet plc and a Non-Executive Director of the
John Lewis Partnership Board.
Current principal external
appointments:
Non-Executive Chairman of Hays plc and
Chair of their Nomination Committee
(until 30 April 2025).
Appointed: to the Board in May 2015
Tenure: 9.5 years
Skills and competencies:
André has an excellent track record of
delivering long-term growth strategies
and shareholder value globally across
diverse territories.
He has consistently succeeded in driving
growth and performance in his career and
has the requisite qualities to carry on leading
Intertek in its continued drive for long-term
sustainable value creation.
From 2005 to 2015, André was Group
CEO of Inchcape plc, during which time he
strengthened its position in the global
automotive market with a track record of
delivering double-digit earnings growth with
strong cash generation, and created significant
shareholder value as its market capitalisation
more than doubled during his tenure as CEO.
He was previously Chairman and Chief
Executive Officer of Euro Disney S.C.A.,
President of Burger King International
operations and the Senior Independent
Director of Reckitt Benckiser Group plc from
October 2008 to December 2018.
Current principal external
appointments:
None
Appointed: to the Board in March 2023
Tenure: 1.75 years
Skills and competencies:
Colm brings extensive knowledge and
understanding of the complexities of the
Intertek Group to his role on the Board.
He joined Intertek in 2016 as the Group
Treasurer and later Tax Director.
In 2019 he moved into the role of Regional
Managing Director for Asia Pacific before his
promotion as President Global Transportation
Technologies, Building & Construction and
People Assurance.
Prior to Intertek, Colm worked in banking
and insurance in EMEA, before coming to
the UK to take up senior roles in finance
and general management.
Current principal external
appointments:
None
Senior Independent Director
Appointed: to the Board in October 2017
Tenure: 7 years
Skills and competencies:
Graham brings strong general management
experience, as well as extensive knowledge
of Asian and other international markets,
in consumer and retail businesses. This
background provides a strong complement
to the current skills on the Board. He also
has vast experience of operating at Board
level on a global scale. Graham was Group
Chief Executive of Dairy Farm International
Holdings Limited, an Asian retailer based in
Hong Kong, from 2012 to 2017 and President
and CEO of Yum Restaurants International (a
Division of Yum Brands) from 2003 to 2012.
In the latter role, he led the growth of global
brands KFC, Pizza Hut and Taco Bell across
most international markets. He had previously
worked at Yum Brands and PepsiCo in several
senior management positions since 1992.
Prior to joining PepsiCo, he worked as a
consultant at McKinsey & Co Inc.
He has also previously served as a Non-
Executive Director of Yonghui Superstores Co.
Ltd in China and a Commissioner of Hero Group,
a leading Indonesian retailer.
Current principal external
appointments:
Senior Independent Non-Executive Director
of InterContinental Hotels Group plc, Non-
Executive Director of Associated British Foods
plc, Americana Restaurants International plc
and a Director of Ikano Retail Pte Ltd (privately
owned). Chairman of Bata International
(privately owned) and adviser to Nando's Ltd.
Board of Directors
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Gurnek Bains
Non-Executive Director
Lynda Clarizio
Non-Executive Director
Tamara Ingram OBE
Non-Executive Director
Jez Maiden
Non-Executive Director
Steve Mogford
Non-Executive Director
Appointed: to the Board in January 2025
Tenure: n/a
Appointed: to the Board in May 2022
Tenure: 2.5 years
Appointed: to the Board in December 2020
Tenure: 4 years
Appointed: to the Board in March 2021
Tenure: 3.75 years
Appointed: to the Board in July 2017
Tenure: 7.5 years
Skills and competencies:
Skills and competencies:
Skills and competencies:
Skills and competencies:
Skills and competencies:
Steve brings extensive public markets
experience and a deep understanding
of long-term contracting, projects, and
regulation, which enhances the Board's
expertise in these areas. His significant
experience in the utilities and aerospace
industries, coupled with a firm commitment
to sustainability, is a valuable asset.
With a career spanning over four decades,
Steve brings extensive experience in senior
management roles to the Board. Most recently,
he was the Chief Executive Officer of United
Utilities Group PLC from 2011 until March
2023, leading the company through significant
growth. Prior to this, he spent 30 years at
BAE Systems plc, where he held various
senior positions, including Chief Operating
Officer and board member; he then served as
Chief Executive of Finmeccanica (now SELEX
Galileo), Italy's principal defence and security
company. Additionally, Steve has served as the
Senior Independent Non-Executive Director
of G4S plc.
Jez is an experienced international public
company CFO with a strong track record, who
has worked in a diverse range of industries and
sectors primarily manufacturing, service and
finance. In addition Jez has a strong background
as a Non-Executive Director.
Jez retired as Group Finance Director for Croda
International Plc, the FTSE100 global speciality
chemicals company, in March 2023 having been
in the role since 2015. Before he joined Croda
International plc, he had been the Group FD at
National Express Group, Northern Foods Plc
and Chief Financial Officer at British Vita Plc.
He was previously the Senior Independent
Director, Chair of the Audit Committee and a
member of the Nomination and Remuneration
Committees at Synthomer plc and Chair of the
Audit & Risk Committee and a member of the
Nomination and Remuneration Committees
at PZ Cussons plc.
Jez is a Fellow of the Chartered Institute
of Management Accountants.
Tamara has had an extensive career
in advertising, marketing and digital
communication and has a deep understanding
of consumer brands and digital strategy. She
brings a strong track record of outstanding
leadership in global marketing services and
her experience of branding together with
her stakeholder management abilities bring
additional skills and expertise to the Board.
Tamara held leadership roles within WPP from
2002, and was the Global Chair of Wunderman
Thompson (a subsidiary of WPP plc). Her
executive experience includes senior roles at
Kantar Group, McCann Erickson and Saatchi &
Saatchi UK, where she held the roles of CEO
and Executive Chair. Tamara was previously a
Non-Executive Director of Sage Group plc and
Serco Group plc.
She is Chair of Asthma + Lung UK, Chair of The
10 Group , Chair of the Almedia Theatre Board
of Trustees and Deputy Chair of OfCom.
Lynda has over 20 years’ experience in the
media industry growing and scaling businesses
with a focus on data and technology to drive
transparency, accountability and improve
business performance. Lynda’s outstanding
leadership and significant experience in digital
measurement and broader technology provides
a strong addition to the skills on the Board.
Lynda is the Co-Founder and General Partner of
The 98, an early stage venture fund investing
in technology businesses led by women. Lynda
was President of U.S. Media at Nielsen Holdings
plc, a global measurement and data analytics
company. She has also held CEO, President and
other leadership positions at AppNexus, Inc.,
INVISION, Inc., AOL Inc. and Advertising.com.
She was previously a partner at the law
firm Arnold & Porter, where she practised
law until 1999.
Gurnek’s extensive experience, working with
senior leaders across a wide range of industries
internationally and his thought leadership on
culture and leadership development provides
an important voice in the discussions at Board
level, particularly with the Group People
Strategy being of such great importance to the
long-term sustainable success of the Company.
Gurnek was the co-founder of YSC Ltd,
a premier global business psychology
consultancy. He led the business as CEO
and Chair for 25 years, to a position of global
pre-eminence, and a client base comprising
over 40% of the FTSE 100. Gurnek has
worked extensively with multinational
organisations in the areas of culture change,
vision and values, executive coaching and
assessment, Board development and strategic
talent development.
Gurnek is Chair of Akram Khan Dance
Company and has a doctorate in psychology
from Oxford University.
Current principal external
appointments:
Current principal external
appointments:
Current principal external
appointments:
Current principal external
appointments:
Current principal external
appointments:
Senior Independent Director of QinetiQ Group
plc and a Non-Executive Director and member
of the Audit, Nomination and Remuneration
Committees of Costain Group plc.
Senior Independent Director of Travis Perkins
plc and sits on their Audit and Nomination
Committees; Non-Executive Director of Smith
& Nephew plc, Chair of their Audit Committee
and a member of their Remuneration
Committee; and Non-Executive Director of the
Centre for Process Innovation Ltd and Chair of
their Audit Committee.
Non-Executive Director of Marsh & McLennan
Companies, Inc., Non-Executive Director of
Marks and Spencer Group plc, Chair of their ESG
Committee and a member of their Nomination
and Remuneration Committees and Non-
Executive Director of Reckitt Benckiser Group
plc and a member of their Audit Committee.
Non-Executive Director of CDW Corporation,
Emerald Holding, Inc and Taboola.com Ltd (US
listed companies), and Simpli.fi Holdings, Inc.,
and Cambri Oy (both privately owned). Co-
Chair of Human Rights First (a non-profit
international human rights organisation).
Managing Partner of Global Future Partnership
LLP and CEO of Nous Think Tank.
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Kawal Preet
Non-Executive Director
Apurvi Sheth
Non-Executive Director
Appointed: to the Board in December 2022
Tenure: 2 years
Skills and competencies:
Kawal is an accomplished senior executive
with extensive experience of cross-functional
leadership responsibilities in the fast-paced
and dynamic express transportation and airline
industry and supply chains. Her experience of the
Asian, Middle East and African market provides a
strong addition to the skills on the Intertek Board.
After a career of over 25 years at FedEx
Express in various roles spanning service quality
assurance, ground operations, and planning and
engineering for the air and ground network,
Kawal is currently Regional President of the Asia
Pacific region for FedEx, a position she has held
since June 2024, having previously been the
President, Asia Pacific, Middle East and Africa.
In this role, she has responsibility for leading the
Asia Pacific region with a team of almost 30,000
employees. After working for Tata Motors as a
Graduate Engineer Trainee in India, Kawal joined
FedEx Express as an Associate Engineer in
Singapore. Kawal was previously a Non-Executive
Director of Asia Airfreight Terminal Co. Ltd, from
2016 to 2020. Kawal has a degree in Electrical
Engineering and an MBA.
Current principal external
appointments:
President of the Asia Pacific region for FedEx
and US-ASEAN Business Council and Junior
Achievement, Asia Pacific.
Appointed: to the Board in September 2023
Tenure: 1.25 years
Skills and competencies:
Apurvi has extensive executive experience
spanning over three decades across numerous
well-known international consumer brands in
the food and beverage industry. Most recently
she was the Managing Director, Southeast Asia
at Diageo plc. Having spent the majority of her
career in Asia and India, Apurvi brings her deep
consumer experience across diverse markets
including China, Japan, Australia, SEA and India
to the Intertek Board.
Apurvi has also served as Marketing Director
South East Asia at PepsiCo International,
Marketing Director of India at Coca-Cola in India
and held various roles at Nestle SA in India.
She also previously served as a Non-Executive
Director of Heineken Malaysia BHD.
Current principal external
appointments:
Strategic Advisor to various companies in
Southeast Asia and India, across a wide range
of sectors including food and beverage, retail
and technology. Non-Executive Director
of SSP Group plc and a member of their
Remuneration and Nomination Committees.
Jean-Michel Valette
Non-Executive Director
Appointed: to the Board in July 2017
Tenure: 7.5 years
Skills and competencies:
Jean-Michel brings strong US and global
management experience, especially in
consumer and luxury goods companies,
which broadens the international and customer
knowledge on the Board. Jean-Michel’s wealth
of knowledge of the US markets, especially
from a customer perspective, is an asset to
the Board.
Jean-Michel has more than 30 years’
experience in management, US public company
corporate governance, strategic planning
and finance. Previously he was Chair of Sleep
Number Corporation and Chairman of Peet’s
Coffee and Tea, Inc., a US beverage company
which was then listed. He was also Managing
Director at the Robert Mondavi Winery before
becoming Chair. In his earlier career, Jean-Michel
was President and CEO of Franciscan Estates,
Inc., a premium wine company.
He currently serves as an independent
adviser in the US to select branded consumer
companies.
He has an MBA from Harvard Business School.
Current principal external
appointments:
Director and Audit Committee Chair of The
Boston Beer Company; Chairman of Huneeus
Vintners and Chairman of DripDrop Hydration
Inc. (Both private US companies).
Division of responsibilities
Our Directors share collective responsibility for the
activities of the Board. There is a clear division of
responsibilities between the Chair and the CEO as
required under the Code.
Our Independent Non-Executive Directors play a vital
role in ensuring good governance and accountability.
The responsibilities of the Chair, CEO, CFO and Senior
Independent Director and other key roles, along with the
matters reserved to the Board, are set out on our website.
Other Directors on the Board during the year
Gill Rider ceased to be a Non-Executive Director following
the AGM on 24 May 2024, having joined the Board in 2015.
Ida Woodger
Group Company Secretary
Ida was appointed as Group Company Secretary on
31 March 2023, having previously held the position of
Head of Sustainability. Ida provides advice and support to
the Board, its Committees and the Chair, and is responsible
for corporate governance across the Group.
Ida is an Associate of the Chartered Governance Institute
UK and Ireland.
The appointment and removal of the Company Secretary
is a matter for the Board.
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Ayush Dhital
Regional Managing
Director Asia Pacific
Bertrand Mallet
Executive Vice President,
Industry Services
John Fowler
Senior Vice President
Minerals and E&P
Ross McCluskey
Executive Vice President,
Europe, Middle East
and Africa and GTS
Laura Atherton
Group General Counsel
and Head of Risk and
Compliance
Ian Galloway
Executive Vice
President, Caleb Brett
Saranpal Rai
President Electrical,
Connected World
and Transportation
Technologies
Alexandra Berger
Senior Vice President
Chief Marketing &
Communications Officer
Tony George
Executive Vice President,
Human Resources
Julia Thomas
Senior Vice President
Corporate Development
Group
Laura Crespi
Group Financial Controller
Marie Giannini
Vice President
Communications and
Head of Sustainability
Mark Thomas
Executive Vice President,
Global Sustainability,
Assurance, Agri World
and Food
Sandeep Das
CEO Greater China
and President Global
Softlines and Hardlines
Ajay Kapoor
Regional Managing
Director South Asia
Carlos Velasco
President Latin America
and Global Building and
Construction
Biographies for members of the
Group Executive Committee are
available on our website:
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
INTERTEK.COM/ABOUT/
EXECUTIVE-COMMITTEE/
Group Executive Committee
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Effective and
entrepreneurial board
Board leadership and company purpose
The Intertek value proposition and Purpose
Intertek’s story has always been about innovation. In 1885 we began testing and
certifying grain cargoes before they were put to sea, and in 1888 we pioneered the
idea of independent testing laboratories. Then in 1896, the greatest inventor of
them all became part of our story. When Thomas Edison released the wonders of
electricity and the light bulb he wanted to ensure that his products were checked,
tested and safe. He established the Lamp Testing Bureau, later to become the
Electrical Testing Laboratories.
Today, our superior customer service is based on our Science-based Customer
Excellence approach which we have built up over many years. This is based on
three essential components: our science-based technical expertise, our continuous
improvement and our innovation.
The foundations and aspirations of our business remain true to those established
by our visionary founders, and their innovation and energy continue to be our
inspiration. Our passion and entrepreneurial culture will ensure that we deliver
for our customers in quality, safety and sustainability – today and in the future.
The Board, with the Executive Committee, sets the corporate culture that defines
our Purpose and establishes an environment where values are appreciated
and respected, encouraging all of our people to ‘Do Business the Right Way’.
Our culture and Values have been, and remain, the core foundations of Intertek.
Our 10X culture is one of entrepreneurial spirit and high performance,
and our people are excited about the opportunities ahead.
100%
Board meeting attendance
(2023: 100%)
Board members
Board members and meeting attendance during the year to 31 December 2024
Scheduled
meetings
eligible to
attend
Meetings
attended1
Andrew Martin Chair
5
5
André Lacroix Chief Executive Officer
5
5
Colm Deasy Chief Financial Officer
5
5
Graham Allan Senior Independent Non-Executive Director
5
5
Gurnek Bains Non-Executive Director
5
5
Lynda Clarizio Non-Executive Director
5
5
Tamara Ingram Non-Executive Director
5
5
Jez Maiden Non-Executive Director
5
5
Kawal Preet Non-Executive Director
5
5
Gill Rider Non-Executive Director2
2
2
Apurvi Sheth Non-Executive Director
5
5
Jean-Michel Valette Non-Executive Director
5
5
1. The Group Company Secretary is Secretary to the Board and she attends all meetings and provides advice, guidance and support as required.
2. Stepped down from the Board on 24 May 2024.
In addition, after every scheduled Board meeting the Chair and the Non-Executive Directors meet without management present.
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Directors’ conflicts of interest
The Board operates a policy to identify, authorise and manage any
conflicts of interest to assist Directors in complying with their duty
to avoid actual or potential conflicts. The Directors are advised of
the process upon appointment and receive an annual refresher.
Whenever any Director considers that they are, or may be,
interested in any contract or arrangement to which the Company
is, or may be, a party, the Director gives due notice to the Board
in accordance with the Companies Act 2006 and the Articles.
The Conflicts of Interest Register is maintained by the Group
Company Secretary and the Board undertakes an annual
review of each Director’s interests, if any, including outside
the Company. Any conflicts of interest are reviewed when
a new Director is appointed, or if and when a new potential
conflict arises. A formal process is also in place for managing
such conflicts to ensure no conflicted Director is involved in
any decision related to their conflict and, during the year,
this process operated effectively.
Our culture
Our success is based on a culture of trust amongst our
colleagues, globally. To support and ensure this trust,
we continuously monitor and develop further insights
into the culture operating within the business.
The Board considered the revised provisions in the 2024
Corporate Governance Code as they relate to the assessment
and monitoring of culture and how it has been embedded. We
will report further on our implementation progress in due course.
The way in which our people combine passion and innovation
with customer commitment to create a single unbeatable asset
sets us apart and is a vital element of our entrepreneurial,
customer-centric culture. We aim to ensure our strategy and
culture provide our people with the platform to grow their
careers and contribute to our Purpose of enhancing quality,
safety, and sustainability for a better world.
Role of the Board
The governance of Intertek is the responsibility of the Board,
with the support of the Group Company Secretary, and provides
the framework of authority and accountability that operates
throughout the Company to ensure the needs of all stakeholders
are considered and met. Good governance requires the Board
to lead, guide and support the business in its quest to create
sustainable long-term value for the mutual benefits of our
shareholder, customers, employees and the communities in
which we operate. We all have differing skills, a wide range of
diverse experience and extensive knowledge built up over time
in our professional careers, which enables the Board to fully
understand the strategic business drivers of Intertek, but also
the risks and exposures associated with the multiple sectors
and regions in which the Company operates.
We have a clear division of responsibilities between the
roles of the Chair and the Chief Executive. To discharge their
responsibilities effectively, the Chair and Chief Executive
maintain regular dialogue outside the boardroom, to ensure
an effective flow of information. The Non-Executive Directors
have formal as well as informal contact with senior leadership.
Contact with the wider business is encouraged to develop a
deeper understanding of the Group’s operations and this
engagement is welcomed.
A formal and rigorous review of the effectiveness and performance
of the Board is undertaken annually and conducted according to
the guidance set out in the Code. In 2024, the Chair commissioned
an externally facilitated performance review. You can read more on
pages 2.78-2.80.
Where Directors have concerns about the operation of the Board
or the management of the Company that cannot be resolved,
the minutes will reflect this. No such concerns were raised during
the year.
READ MORE ABOUT HOW THE BOARD ASSESS
AND MONITORS CULTURE ON PAGE 2.74
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Board activity in focus
The following pages give an insight into how we, as a
Board, use our meetings as a mechanism for discharging
our responsibilities, including how the consideration of
stakeholders is embedded into our workings as a Board
and the range of matters we considered and discussed
throughout the year.
Each Board meeting follows a carefully structured agenda
agreed in advance by the Chair, CEO and Group Company
Secretary; this ensures that proper oversight of key areas of
responsibility are scheduled regularly, and that adequate time
is available for the Board to fully consider strategic matters.
The Board and its Committees understand the strategic
significance of stakeholders in our business. The Directors take
into account the interests of colleagues and the need to foster
relationships with other key stakeholders in making decisions.
We acknowledge that our decisions might not necessarily result
in a positive outcome for all our stakeholders and so the Board
has to balance conflicting interests in arriving at its decisions.
While the Board engages directly with stakeholders on some
issues, the size and complexity of the Group and our stakeholder
groups means that engagement often happens below Board
level. However, the Board considers information from across the
organisation to help it understand how our operations affect our
stakeholders’ interests and views.
Section 172 statement
In their discussions and decisions during the year, the Board of
Directors have acted in the way that they consider, in good faith,
would be most likely to promote the success of the Group for the
benefit of its members as a whole (having regard to stakeholders
and the matters set out in sub-sections 172(1) (a)–(f) of the
2006 Act).
Details of how the Board have engaged with colleagues during
the year, and how they have had regard to their interests and the
need to foster business relationships with other stakeholder
groups, is set out on the following pages together with the
Board’s principal decisions.
Strategy and
performance
The Board clearly understand the
responsibility to deliver long-term
sustainable success and returns for
shareholders, underpinned by the
highest standard of corporate
governance, conduct and integrity.
We collectively review, discuss and
annually agree the Group’s strategy.
Our people are truly amazing.
To support and ensure our success
is based on our culture of trust, we
continuously monitor and develop
further insights into the culture
operating within the business.
Our people are key to Intertek’s
success and they are always
considered as part of the Board’s
discussions and decision making.
People
and culture
Workforce
engagement
Sustainability is central to everything
we do at Intertek and as a purpose-led
Company, it is anchored in our Purpose,
Vision and Values. The Board, as part of
its overall stewardship of the Company,
oversees the Group's sustainability and
corporate responsibility.
The desirability of the Company
maintaining a reputation for high
standards of business conduct, the
accuracy and validity of reports and
certificates that we provide, maintaining
the trust and confidence of our
customers, their customers and others
impacted by our work, are important
factors which contribute to our success.
Sustainability
Customer
engagement
The Board is committed to maintaining
an active and open dialogue with
investors and sees this as an important
part of the governance process.
Investor and
shareholder
engagement
MORE DETAILS ON PAGE 2.73
MORE DETAILS ON PAGE 2.75
MORE DETAILS ON PAGE 2.76
MORE DETAILS ON PAGE 2.74
MORE DETAILS ON PAGE 2.76
MORE DETAILS ON PAGE 2.77
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Strategy and performance
We, as a Board, clearly understand our responsibility to
deliver long-term sustainable success and returns for our
shareholders, underpinned by the highest standard of
corporate governance, conduct and integrity. We collectively
review, discuss and annually agree the Group’s strategy.
The Intertek Amazing ATIC Advantage (‘AAA’) differentiated
growth strategy was launched to accelerate our growth by
seizing the high demand for our ATIC solutions.
Strategic planning discussions are supported by our Purpose
to bring quality, safety and sustainability to life, and to make
the world a better, safer and more sustainable place whilst
looking at the long-term structural drivers and the emerging
trends shaping the future of the world, to ensure that the
business continues to evolve to meet the changing needs of
all stakeholders. Our AAA strategy and goals are outlined on
page 1.11 in Report 1.
Activities of the Board
During the year, the Board monitors and reviews the
performance of the business to ensure that the strategic
objectives are being met. This is an ongoing process which
is reviewed annually by the Board and involves a thorough
review of the progress being made on the implementation
of the strategy and the five-year business plan.
The changes to the economic environment, the long-term
structural drivers and emerging trends shaping the world
are discussed, as well as the resulting impact on Intertek,
together with the strategic initiatives for the year. This
ensures alignment with our Purpose of bringing quality,
safety and sustainability to life.
External speakers also present periodically to provide
an overview on global or regional matters.
During the year the Board also received and discussed
the CEO's report at each meeting which focused on:
• the Group’s overall performance and operations;
• progress against our strategic priorities;
• the competitive and regulatory environment
that Intertek operates in;
• engagement with, and the views of, our stakeholders
including our investors and our colleagues; and
• key business operations including matters which are important
to the group’s reputation, as well as colleague, customer,
supplier and community considerations.
The Board also discussed, reviewed and, as appropriate, approved:
• The financial statements at the full and half year including
any external guidance. It also discussed the feedback from
investor meetings, including those post publication of each
set of financial results. At each meeting, the Board reviewed
the current financial and trading performance for the period
against budget and consensus, and the full year outlook
for each division and the Group as a whole;
• the going concern and viability statements;
• reports, on a monthly basis, outlining share register
movement, our share price performance relative to the
market and industry, investor relations activities and
engagement with shareholders;
• any significant litigation, including our response and
the stakeholder and reputational impact of these; and
• the business, the market, strategic rationale,
management team, culture and business plan
in respect of proposed acquisitions.
Principal decisions
• The Board approved the acquisition of Base Metallurgical
Laboratories;
• The Board recommended a final dividend of 102.6p
per share making 156.5p for the full year; and
• The Board approved a share buyback programme to
commence in 2025. Read more on page 1.16 in Report 1.
The Board in Action
December
Reviewed, discussed and agreed
the Group's strategic plan and
objectives including a 360˚
review of the Intertek value
proposition, strategy, updates
on the competitive environment
and regulatory changes.
July/August
Regional focus – received
presentations from the
leadership teams across the
business on their areas of
responsibility and expertise.
May
Business line focus –
received presentations from
global leaders across the
business on their areas of
responsibility and expertise.
October
Regional deep dive and
performance review.
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People and culture
Our people are truly amazing and our success is based on a culture of trust amongst our colleagues globally.
To support and ensure this trust, and foster a culture of 'Doing business the Right Way', we continuously
monitor and develop further insights into the culture operating within the business.
Action
How the Board monitors culture
Townhalls occur monthly at most Intertek locations globally. The 10X growth, coaching, training, people planning and
the focus on recognition at all levels ensures that the right values and culture are driven throughout the organisation.
View from the top
Townhalls allow the dissemination of information to
employees across the Group and enable local leadership
to communicate the right behaviours and cultural
expectations, as well as give peer nominated awards
for demonstrating our 10X Energies.
The Board reviews voluntary permanent employee turnover, the Intertek ATIC Engagement Index as set out on page
1.33 in Report 1. In 2023 we also launched Champions in collaboration with Gallup. The Board received updates on
levels of participation during the year.
Globally aligned reward
and incentive schemes
We have designed our short- and long-term incentive
plans to encourage the right behaviours and values
across our global business, in alignment with our Purpose.
The Remuneration Committee report provides more details on this aspect.
We measure incident reporting, accidents and the overall Total Recordable Incident Rate to ensure that the
right practices are being followed.
Total Recordable Incidents Rate per 200,000 hours worked was 0.42 (2023: 0.51).
Health, safety
and wellbeing
The health, safety and wellbeing of our people is
paramount. The Board receives an update on Health
and Safety statistics across the Group at every Board
meeting to monitor trends year-on-year.
The Board also receives updates on employee wellbeing programmes.
Ethics and compliance
reports
Updates are provided at every Board meeting on all
hotline and whistleblowing reports and analysis by
issue type.
The Board is able to determine if there are any trends which need further analysis or investigation.
For more information see page 2.58.
The Board receives an update annually from the
EVP HR on programmes available to employees.
The Group General Counsel also reports on the
completion of annual training on the Intertek
Code of Ethics.
As a provider of quality, safety and sustainability assurance services, Intertek relies on a skilled workforce to
demonstrate their understanding of, and commitment to, the highest standards of business conduct and ensure
that we do business the right way. During 2024, employees completed 103,303 hours of training on Lucie.
We aim for 100% completion of our compliance training for eligible employees (2024: 100%, 2023: 97.6%).
Training
A few employees did not complete the training, the 2024 rate is rounded to the nearest 0.1%.
Key claims reports
The Group General Counsel provides updates at every
Board meeting on material legal claims.
Significant legal claims are reviewed by the Audit Committee to monitor the trends and types of claims.
Internal audit reports
Updates at every Audit Committee meeting on internal
audit reports, the areas of non-compliance with the
Financial Core Mandatory Controls and actions taken.
Trend analysis is provided to underscore that we are ‘Doing Business the Right Way’.
In 2024, members of the Board visited operations in Colombia, Pakistan, Singapore, Australia and the UK.
Visits to regional businesses
Non-Executive Directors are encouraged to visit
regional businesses.
Read more on pages 2.75-2.76 and 2.80.
The Board in Action
Intertek Group plc
Annual Report & Accounts 2024
2.75
Board leadership and company purpose Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Due to the global nature and size of the business, together
with the complexity and diverse make-up of the various
sectors and regions in which we operate, the Board decided to
choose an alternative method to those suggested in Provision
5 to the Code. Instead, we utilise a multi-faceted approach to
workforce engagement to make certain that what is in place
ensures that we, as a Board, receive 360˚ multi-source
feedback to assist us in evaluating the different views
and perspectives from our employees across the Group.
We keep our engagement mechanisms under review and
continue to believe that this methodology remains effective
as it enables us, the Board, to fully understand the views of
the workforce when taking such considerations into account
as part of our decision-making process.
Activities of the Board
The visit included a comprehensive tour of our operations
During the year the Board received updates on and discussed:
Feedback from townhalls conducted across the world. Question
and answer sessions are held at town halls to provide two-way
communication and a method of further engagement. André
Lacroix led eight townhalls across the world during 2024.
Our colleagues across the world continue to upload stories
about how they or their team are bringing our Purpose to life
through their work. These stories are shared with the Board as
part of Sustainability Moments at the start of each Board and
Committee meeting.
Technology has been used to facilitate the attendance of many
from overseas without the need for travel to the physical Board
meetings. The Board was particularly interested to engage with
and hear feedback from our employees across the different
locations. In addition, 26 leaders and subject matter experts
across the Group presented on their areas of expertise at
Board meetings.
In October 2024, our Board of Directors held its meeting at
our Intertek Minerals Global Centre of Excellence (‘CoE’) in
Perth, Australia, a key hub for the minerals and mining industry.
With over 500 employees, this state-of-the-art laboratory gives
our customers access to trusted expertise in mineral testing,
inspection and analysis. The facility opened in 2021 to inspire
innovation and sustainability across the minerals supply chain,
with advanced technology, automation and robotics. This special
meeting provided an opportunity for the Board to tour the CoE,
learning more about the expertise of our onsite team and seeing
the cutting-edge technologies we use to deliver industry-
leading solutions to our customers in action. Having met many
of our Intertek Minerals colleagues throughout the trip, our
Board was especially impressed by the professionalism, pride
and positive culture of the team.
Members of the Board are always encouraged to continue to
undertake additional visits to our laboratories both in person and
via video links, engaging with our employees across the world.
In February 2024, Andrew Martin visited our Caleb Brett laboratory
in Fontibón, Bogotá – one of our largest sites in Colombia.
and high-tech testing equipment at the laboratory, where
we provide our customers in the hydrocarbons industry
with expert analysis of oil, fuel and refined products.
During the tour, Andrew met the teams from each division
of the laboratory, highlighting our commitment to providing
opportunities for collaboration and two-way communication
between our Board and colleagues across the business.
Senior colleagues from our Colombia team also presented
our strategic goals for the country, focusing on sustainable
and responsible growth, as well as telling Andrew more
about our clients and the local market.
In March 2024, colleagues from our Intertek Dhaka
laboratory welcomed Graham Allan to learn more about
our work in Bangladesh and inaugurate an impactful new
sustainability initiative. During his tour, Graham engaged
with local site leaders from our Softlines and Business
Assurance teams, who provided a comprehensive overview
of the Total Quality Assurance services provided at the
facility. In addition, Graham received a virtual tour of our
Softlines facility in Gazipur.
In November, Jez Maiden visited Intertek Melbourn, a
UK-based laboratory and global leader in the development
of inhaled and nasal medicines, to learn more about our
pharmaceutical services business. During the visit, our
onsite team provided Jez with an overview of the work we
do in Melbourn and at our European Centre of Excellence in
Manchester, which specialises in mRNA, cell and gene, and
biologic characterisation.
The team shared more information on the history, recent
growth and future plans for our pharmaceuticals business,
as well as giving Jez a tour of the laboratory. The tour
included a showcase of the newly completed mezzanine
expansion, which offers 11,000 square feet of additional
laboratory space for the continued growth of our inhaled
biologic services. In addition, the visit provided our
colleagues, including the extended management team of our
pharmaceuticals services business, with an opportunity to
ask Jez questions and learn more about the role of an NED.
Workforce engagement
The Board in Action
Intertek Group plc
Annual Report & Accounts 2024
2.76
Board leadership and company purpose Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Sustainability
Sustainability is central to everything we do at
Intertek and, as a purpose-led Company, it is
anchored in our Purpose, Vision and Values.
The Board, as part of its overall stewardship of
the Company, oversees the Group’s sustainability
and corporate responsibility strategy, together
with any material environmental and social issues.
The execution of this strategy is delegated to
the Group Executive Committee and our two
sustainability focussed Steering Committees.
Read more about the roles and responsibilities
of the Net Zero and Beyond Net Zero Steering
Committees on page 1.67 in Report 1.
Activities of the Board
The Board recognises the importance of
sustainability to all our stakeholders, together with
the increasing risks associated with climate change
and ensures that at every Board and Committee
meeting, the first item on every agenda is a
Customer engagement
Customer engagement is important for customer
growth as it develops and strengthens our
relationships enabling Intertek to understand the
services they need and what they expect from
us. To ensure that we continue to innovate and
anticipate the growing needs of our customers,
we constantly evolve and improve our customer
proposition to meet their changing needs and the
changing world around us.
We offer our customers the Intertek Science-
based Total Quality Assurance advantage to
strengthen their businesses and supporting
them to thrive in an increasingly complex world.
Activities of the Board
During the year the Board received regular reports
with detailed deep dives on major customers.
As part of the Board's annual overseas visit the
Board toured three customers mine and port sites,
as well as our managed laboratories in Port
Hedland and the Pilbara region. For several Board
members, it was their first time observing the
impressive scale and efficiency of mining and port
operations of such magnitude.
The experience highlighted the critical role
Intertek Minerals plays in supporting global mining
activities, and how our remote-managed labs are
driving innovation and efficiency in the industry.
We continuously invest in our ATIC capacity,
developing and launching powerful new solutions
that meet our customers' fast-changing needs.
The Board reviewed the delivered innovations,
received updates on the pipeline of projects and
endorsed the Group Innovation Strategy.
The Board in Action
The Board in Action
'Sustainability Moment' to demonstrate its
importance to the future long-term sustainable
success of Intertek.
Site visits support knowledge and understanding of
the opportunities for our business. When it opened
in 2014, our Dhaka laboratory was the largest
Softlines testing lab in Asia and a one-stop facility
for all quality and safety assurance solutions for
diverse industries in South Asia for countries like
India, Bangladesh, Sri Lanka, Nepal and Bhutan.
On his visit, Graham Allan took part in the formal
inauguration of the ‘AquaCycle’ project, which
focuses on recycling cooling water for the site’s
dry-cleaning machine. By installing a ground-floor
water reservoir tank and an overhead tank for
lifting cooled water, the initiative will save
6.7 million litres from sewage each year.
The Board also receives regular updates on
the performance of the Group against our
emission targets.
Intertek Group plc
Annual Report & Accounts 2024
2.77
Board leadership and company purpose Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
The Board maintains an active and open dialogue with investors and
sees this as an important part of the governance process. Reporting
to the Board takes place at every meeting with feedback from
meetings held between executive management, or the investor
relations department, and institutional shareholders.
April – May
• North American Roadshow (Toronto, Denver)
• US Roadshow (New York, Boston, Chicago)
• Trading Statement
• AGM
January
• Oddo-BHF Forum 2024, Lyon
• IR & management meetings
in London
• Zurich and Geneva Roadshow
February – March
• North American Roadshow (Montreal,
Florida, Miami, Atlanta, Austin, Dallas)
• Full year results 2023
• Annual Results Roadshow
• Berenberg UK Corporate Conference 2024
• Jefferies Small-Cap Conference, London
• Exane ESG Conference, Paris
July – August
• Half year Results 2024
• Half year Results Roadshow
• Netherlands Roadshow
• New York Roadshow
October
• APAC Roadshow (J.P. Morgan)
• IR meetings in London
• Edinburgh Roadshow
• Copenhagen Roadshow
• Helsinki Roadshow
June
• Paris Roadshow
• Frankfurt Roadshow
September
• BNP Paribas EXANE TIC Conference,
London
• UBS Business, Leisure and Transport
Conference, London
• London Roadshow
• Bernstein SDC
• US Roadshow (San Francisco and Los
Angeles)
November
• US Roadshow (New York, Montreal and Toronto)
• JPM Business Services Conference (NYC)
• Bernstein’s The Premium Review Conference
(London)
• NTS London Roadshow
• Austin Roadshow
• Trading Statement
December
• Berenberg European Conference, London
• MS BLT Conference, London
• Stockholm Roadshow
Investor and shareholder engagement
Investor relations programme
Aimed at helping existing and potential investors understand
the Group’s business model, strategy, financial performance and
outlook. The programme is wide-ranging and includes events
and roadshows throughout the year to update investors and
sell-side analysts on the developments of the Group.
Roadshows
Following the full year and half year results announcements,
the Executive Directors and Investor Relations team held
meetings with the principal shareholders.
Board shareholder engagement
The Chair, following any engagement with shareholders,
ensures that the Board as a whole has a clear understanding of
their views. Intertek’s largest shareholders, representing more
than 59% of the share register, are invited annually to meet
with the Chair to share their views and discuss any corporate
governance matters. During April and May 2024, the Chair held
six meetings with shareholders. The feedback received was
positive, and shareholders continue to be very supportive
of Intertek’s strategy, the management and the Board.
The feedback was presented and discussed with the Board
at the May Board meeting.
Conferences
Executive Directors and the Investor Relations team attend
industry conferences throughout the year, providing the
opportunity to meet a large number of investors.
Resources
A wealth of information is available to investors in our Annual
Report & Accounts, half year announcements and trading
updates and Regulatory News Service announcements, these
materials are available on our website and are supplemented by
videos, webcasts and presentations including material from the
Capital Markets Event held in 2023.
The Chairs of the Committees will seek engagement with
shareholders on significant matters relating to their area
of responsibility as appropriate. Graham Allan, as Chair of
the Remuneration Committee engaged extensively with
shareholders during the year. More details of the process and
the outcomes can be found in the Remuneration Committee
report on pages 2.97-2.99.
Graham Allan, in his capacity as Senior Independent Director,
also engaged with shareholders on Board succession and
the extension of Andrew Martin's term as Chair of the Board.
Further details can be found on page 2.84.
Feedback Forum
The Executive Directors and Investor Relations team receive
regular feedback from sell-side analysts and investors during
the year both directly and through the Group’s corporate
advisers. The Group Company Secretary also receives
feedback on governance matters directly from investors
and shareholder bodies.
Annual General Meeting (‘AGM’)
The Board welcomes the opportunity to meet with both
private and institutional investors at the AGM, providing an
opportunity for all shareholders to engage and ask questions
of the full Board. All Board members attend the AGM.
The 2025 AGM is currently scheduled to be held on Thursday,
22 May 2025 at 11.00 a.m. in the Marlborough Theatre,
No. 11 Cavendish Square, London, W1G 0AN.
The Company proposes a resolution on each separate issue
and does not combine resolutions inappropriately. The Notice
of the AGM is sent to shareholders by e-communications or
by post and is also available at intertek.com.
The Board in action
Intertek Group plc
Annual Report & Accounts 2024
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3: Financial Report
2: Sustainability Report
1: Strategic Report
Composition and succession
The Board is committed to ensuring that
it has the right balance of skills, experience,
knowledge and diversity, to lead Intertek
and deliver our AAA strategy to make the
world a better and safer place.
The composition of the Board during the year is set out
on page 2.70.
More information on the appointment process and succession
planning to ensure that we have the right individuals who can
inspire and provide passionate leadership is outlined in the
Nomination Committee report on pages 2.82-2.85.
The 'People Agenda' including talent development, retention,
succession and employee engagement features high on the
agenda. More so, given the importance of the highly qualified
Board Performance Review
In accordance with the Code, the effectiveness of the Board,
and its Committees is rigorously reviewed annually and an
independent externally facilitated Board review is conducted
every three years.
The 2023 Board internal evaluation process was led by
Andrew Martin, with the support of the Group Company
Secretary, and entailed:
• the completion of detailed questionnaires by each Board
member;
• discussions on the outcomes and recommendations with
the Chair and each Board member;
• following discussion of the results of the evaluation
the Board as a whole, identifying and agreeing areas
for improvement.
For each Committee of the Board a similar process was
undertaken.
The internal review of the Committees showed strong scores
in all four categories that were evaluated. Feedback from the
review was incorporated into the annual agenda for the Board
and the Committees.
Composition, succession and evaluation
employee base to the ongoing success of Intertek. Succession
and talent planning is a very thorough and thoughtful process
with at least annual discussion at the Board.
Learning and development
Ongoing and continuous development is crucial to our Directors
remaining highly engaged, effective and well informed. All
Directors are kept up-to-date with information about Intertek’s
business and there is an ongoing programme of information
dissemination throughout the year. It is important that the
Directors have an appreciation of the business, both in the UK
and overseas.
The Company also encourages Directors to attend briefings
and seminars offered by professional and commercial bodies
in order to keep abreast of current legal and regulatory
requirements, especially within their specialist fields such
as audit or remuneration.
Intertek Group plc
Annual Report & Accounts 2024
2.79
Composition, succession and evaluation Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Board findings
The Directors were pleased to note Gould Consulting’s
conclusion that the Board and its Committees are highly
effective, and they observed performance outcomes
across all areas at the top of their benchmarks.
Key findings of the 2024 external evaluation:
• This large, diverse, and experienced Board gels well under
the current Chair. The Non-Executive Directors take pride in
their ambition to support the CEO and his high-performing
management team. Overall, this works well, in no small part,
due to the energy and passion the current CEO brings to
the Board.
• The Board has worked hard to evolve a style of working and
meeting cadence that maximises the level of collaboration
and teamwork between the wider management team and
Non-Executive Directors.
• We applaud the openness and transparency of
communications between both the CEO and the Chair
and the CEO and the Non-Executive Directors.
At the February Board meeting, the Chair consulted and
developed the proposals for further Board consideration
and implementation during 2025.
2024 Board effectiveness review process
2024 Board effectiveness
review findings
Key area of focus for 2025:
Agreed actions
Consider and appoint additional Non-Executive Directors
to the Board in light of the expected Board changes and
the need to ensure effective succession planning.
Actions in progress
• Steve Mogford was appointed as Non-Executive
Director on 1 January 2025 bringing extensive public
markets experience to the Board.
• The Board continues to consider potential Non-
Executive Director appointments.
Appointment of an
external facilitator
As planned, and
recommended by the
Code, the 2024 external
evaluation process was
facilitated by an
independent third party,
Gould Consulting, under
the direction of the Chair.
Gould Consulting have no
other connection to the
Company or with any of
the Directors.
Objectives and scope
Gould Consulting were
engaged to conduct a
comprehensive review
of the Board and the
Committees effectiveness.
The agreed approach,
tailored specifically for
Intertek, was designed
to get feedback from
the Executive and
Non-Executive Directors
on current strengths and
preparation for future
challenges.
The review was led by the
Chair and supported by
Gould Consulting and the
Company Secretary.
Information gathering
Gould Consulting held initial
briefing meetings with the
Chair and Company
Secretary in order to agree
discussion themes and
priorities for the review.
Between November 2024
and January 2025, each
member of the Board
completed a confidential
self-assessment
questionnaire.
Gould Consulting then held
individual interviews with
the Directors and the
Company Secretary.
Further information was
gathered through:
• Board and Committee
paper review.
• Review of additional
governance materials
including key Board
policies and processes,
and Board and Committee
Terms of Reference.
Discussion of
review findings
In February 2025
discussions of the results of
the review took place with
the Chair and CEO followed
by the review of findings
with the Board as a whole.
A discussion document
was circulated to the
Board in advance,
which summarised Gould
Consulting’s assessment of
the key findings, the Board’s
strengths, together with
recommendations for
the future.
2
4
1
3
Intertek Group plc
Annual Report & Accounts 2024
2.80
Composition, succession and evaluation Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Chair and Director evaluation
The Non-Executive Directors, led by the Senior Independent
Non-Executive Director, conducted a performance review of
Andrew Martin, who was the Chair of the Board during 2024.
The review considered his leadership, corporate and commercial
skills and general experience.
Andrew Martin was appointed to the Board in May 2016 and
was appointed as Chair of the Board in January 2021. Hence,
he has now served as a Director of the Company for nearly nine
years, four of which he has served as Chair. Provision 19 of
the Code provides for an limited extension of tenure in certain
circumstances, subject to clear explanation to shareholders.
During the last two years, three new Directors have joined
the Board and, over the next two years, several experienced
Directors will step down from the Board by rotation. Taking into
account these Board changes and the need to ensure effective
succession planning for a new Chair, the Committee concluded
that Andrew Martin’s re-appointment as Chair, albeit not beyond
the May 2026 Annual General Meeting, was in the best interests
of the Company.
This proposal was also discussed with several of the Company’s
larger shareholders, each of which were understanding of the
Nomination Committee’s rationale.
Andrew Martin, the Chair, also met with each Director to discuss
their individual contributions and performance, together with
any training and development needs. Following these reviews,
the Board remains satisfied that, in line with the Code, all
Directors are able to allocate sufficient time to the Company
to enable them to discharge their responsibilities as Directors
effectively and that any current external appointments do not
detract from the extent or quality of time which any Director is
able to devote to the Company.
The Board recommends that shareholders should be supportive
of their election or re-election to the Board at the 2025 AGM.
Board induction
There is a full, formal and extensive induction programme which
is tailored to ensure that Directors joining the Board are provided
with the knowledge and materials to enable them to add value
from an early stage. This is managed by the Chair and the Group
Company Secretary.
During the year, Apurvi Sheth completed her induction
programme which included receiving details of Board procedures,
Directors' responsibilities, and various governance-related issues
and strategic priorities within the Group.
For the Non-Executive Directors, the induction programme also
includes a wealth of background information on the Company
and a series of meetings with other members of the Board,
senior members of management and external advisers.
Visits to our laboratories and sites are also arranged.
Building on the established success of virtual site visits over
the past four years, we continue to implement a comprehensive
programme that balances virtual visits to our operations with
that of in-person visits to laboratories. This enables our new
Directors to meet senior management across the Group and our
colleagues working in labs.
Following virtual visits to China, Turkey, UAE and Italy in 2023,
Kawal Preet and Apurvi were invited to tour our Intertek
Singapore Technical Centre on Jurong Island in February 2024.
Guided by senior colleagues from the region, Apurvi and Kawal
gained valuable insights into the operations and cutting-edge
capabilities at the Caleb Brett laboratory, which specialises in
testing, inspection and certification for the petroleum, refining
and petrochemical industries. They also heard more about
Intertek’s rigorous quality assurance processes and commitment
to innovation and excellence, as well as our presence and impact
in the region.
Site visits are an important part of our Board member
onboarding process, allowing new members to learn more
about our work while also sharing their own experience and
expertise to help drive our continued global growth.
The programme aims to provide great insight into the business,
operations and people. This process will continue to be kept
under review.
Steve Mogford will complete his induction during 2025 and
we will report on this in the next Annual Report & Accounts.
Intertek Group plc
Annual Report & Accounts 2024
2.81
3: Financial Report
1: Strategic Report
2: Sustainability Report
Audit, risk and internal control
Audit
There are formal policies and procedures in place designed to
ensure the independence and effectiveness of the internal
and external audit functions. Group Internal Audit is a single
independent internal audit function, reporting to the Audit
Committee on financial controls and risks. Further detail can
be found in the sections headed ‘Internal Audit’ on page 2.91.
The Board has delegated a number of responsibilities to the
Audit Committee, including monitoring and reviewing financial
reporting, the effectiveness of internal financial controls and the
risk management framework, whistleblowing, the internal audit
process and the external auditor’s process. The Audit Committee
reports to the Board on its activities, and its report for 2024,
confirming how it has discharged its duties, can be found on
pages 2.86-2.93.
Internal control and risk management
Intertek has implemented an end-to-end integrated approach
to risk, control and compliance which embeds risk management
throughout our business; allowing us to dynamically adapt
our controls, policies and assurance activities as our risk
environment changes; and creates responsibility and oversight
of our risk identification and risk mitigation actions to ensure
they are effective, relevant and robust. For more information
on the evolution of our risk management approach see on pages
1.57-1.59 in Report 1.
Our integrated risk management framework
Risk management is embedded throughout our organisation
using a framework of divisional, regional and functional risk
committees. These committees meet, at least, quarterly to
identify, monitor and assess the risks within their area of
responsibility using tools including risk mitigation action plans.
It is the responsibility of each committee to assess whether its
risk environment is changing, whether it has the right mitigation
action plans and whether new or different plans are required in
response to new or changing risks.
The risk committees report to our Group Risk Committee which
in turn provides a report on risk and mitigation actions at each
meeting of the Board.
Our integrated approach to identifying and
mitigating risks
At Intertek, we view our risk environment as consisting of
emerging risks (risks that are potential or future-looking) and
systemic risks (risks which are concrete and actually present
or inherent in our operations). Emerging risks are assessed by
perceived likelihood and impact and addressed using mitigation
action plans on a ‘three lines of defence’ model. Systemic risks
are addressed using our internal controls, policies and procedures
and also uses the three lines of defence model, as appropriate.
Our risk identification and mitigation approach is integrated
and dynamic as our risk committees continually review their
emerging risks and, to the extent those risks start to become
systemic (or ‘real’ rather than ‘potential’ risks), identify new
controls, policies or procedures so that we can put new systemic
mitigations in place.
Our integrated approach to risk assurance
We have an integrated approach to getting assurance that
our risks are being appropriately and effectively identified and
mitigated. We use an assurance map, which takes each of our
emerging and systemic risks and maps an assurance framework,
using the three lines of defence, onto them by identifying the
roles or functions which are responsible for the management,
control and oversight of those risks.
Objective assurance is provided, in the third line, by our Internal
Audit function (which audits our financial controls and risks),
by our Compliance function (which audits our non-financial,
operational controls and risks), and by our CyberSecurity team
(which audits our IT controls and risks).
Our integrated approach to risk governance and oversight
The Board ultimately reviews the Group’s risks, controls and
compliance and mitigation actions. The Audit Committee is
responsible for reviewing the adequacy and effectiveness of
the financial controls. If this governance and oversight identify
new risks or the need for new controls, policies or procedures,
these changes are implemented and communicated to the
risk committee framework. This ensures that governance and
oversight drive continuous improvements in risk identification
and mitigation actions plans.
The Board undertakes a robust assessment annually. At each
Board meeting during 2024, the Group General Counsel
presented an integrated risk, control and compliance report
including a review of:
• the Group’s emerging risks, the status of the quarterly
emerging risk mitigation action plans and the new quarterly
emerging risk mitigation plans;
• the specific systemic risks including quarterly hotline and
whistleblowing reports, key claims and authorised unlimited
liability contracts; and
• the Group’s systemic risk environment, the status of the
quarterly systemic risk mitigation action plans and the new
quarterly systemic risk mitigation plans.
Audit and Corporate Governance Reform
During the year, the Board and the Audit Committee reviewed the
provisions in the revised UK Corporate Governance Code and will
report on the implementation progress in due course. Our internal
control and risk management framework put the Group in a good
position to meet the new recommendations of the Code.
Intertek Group plc
Annual Report & Accounts 2024
2.82
3: Financial Report
2: Sustainability Report
1: Strategic Report
Nomination Committee Report
On 24 December 2024, we were delighted to announce that
Steve Mogford would join the Board as Non-Executive Director
on 1 January 2025. Steve brings a wealth of experience in both
executive and non-executive roles across a wide range of sectors.
I joined the Board of Intertek in May 2016 and have served as
Chair since January 2021. The Committee is responsible for the
appointment of my successor and while this process is ongoing,
I intend to stand for re-election at the AGM in May to enable
an appropriate transition to the next Chair. I expect to have
stepped down as Chair and from the Board at or before
the 2026 AGM.
This year, the performance review was conducted as part of
the external Board performance review. We discussed the
results and it concluded that the Committee operated
effectively during the year.
Dear shareholder,
In a year of relatively little Board change,
the Nomination Committee ('Committee'),
on behalf of the Board, prioritised
the longer-term Board composition.
The need to keep the Board refreshed but at the same time
maintain a knowledgeable and experienced team of Non-
Executive Directors is crucial and forms a large part of the
Committee’s work. This report sets out details of our activities
during the year, focusing in particular on succession planning.
We concluded our previous search for non-executive directors
with the appointments of Kawal Preet in 2022 and Apurvi Sheth
in 2023.
It is vital that we have the right skills and expertise around
the Board table to help support the business to seize the
opportunities in our industry as our clients increase their
focus on Risk-based Quality Assurance to operate with higher
standards on quality, safety and sustainability in each part
of their value chain.
The Committee continues to demonstrate its ability to
successfully identify the key characteristics required on the
Board. The Committee initiated a new search during the year
and more details on this can be found on the following pages.
In May, following the AGM, Gill Rider retired as Non-Executive
Director and Chair of the Remuneration Committee after serving
for nearly nine years. The Committee reviewed the composition
of the Committees and recommended the appointment Graham
Allan as Chair of the Remuneration Committee, Kawal Preet as a
member of the Remuneration Committee and Apurvi Sheth a
member of the Audit Committee. All appointments took place
following the AGM on 24 May 2024.
Andrew Martin
Chair of the Nomination Committee
Intertek Group plc
Annual Report & Accounts 2024
2.83
Nomination Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Membership and meeting attendance
During the year, we held four formal meetings. Attendance of
members at formal meetings is shown in the table below. The
Group Company Secretary attends all formal meetings of the
Committee and the Committee invites the CEO and the EVP,
Human Resources to attend meetings when the subject matter
deems their presence appropriate.
Committee members
Member
since
Meetings
attended1
Andrew Martin (Chair)
January 2021
4/4
Graham Allan
October 2017
4/4
Gurnek Bains
July 2017
4/4
Tamara Ingram
June 2022
4/4
1.
Number of meetings attended out of the number of meetings eligible to attend in the year.
Role and key responsibilities
• Review the structure, size and composition of the Board and
its Committees.
• Identify, review and nominate a diverse pipeline of candidates
to fill Board vacancies1.
• Evaluate the balance of skills, independence, knowledge,
experience and diversity on the Board and its Committees.
• Review the results of the performance evaluation process
that relates to the composition of the Board and its
Committees.
• Review the time commitment required from Non-Executive
Directors.
• Review senior management succession plans regularly.
1.
Neither the Chair nor the CEO participates in the recruitment of their own successor.
THE FULL TERMS OF REFERENCE OF THE COMMITTEE, WHICH
ARE REVIEWED ANNUALLY, CAN BE FOUND ON OUR WEBSITE:
INTERTEK.COM/ABOUT/COMPLIANCE-GOVERNANCE
Chair and Non-Executive Director appointment process
The Committee reviews the structure and composition of the
Board, in turn considering the balance of skills, experience,
industry and geographic experience and knowledge, diversity,
independence, and cognitive and personal strengths of the
current Board. When considering these factors, the Committee
is mindful of attributes that will assist in the delivery of the
Group strategy.
Once a preferred candidate is chosen, the Committee makes
a recommendation to the Board to appoint the individual.
Once the candidates are shortlisted, initial interviews are held
and the shortlist reduced further. The final candidates are invited
to separate meetings with the Committee members and the CEO.
The appointed consultant presents an initial longlist of
candidates. This list is then shortlisted using the brief
as a guide to determine suitability.
The Committee, following the skills and composition review,
compiles a brief for the role which outlines favourable
characteristics and attributes that they desire the appointed
individual to hold. This brief is then shared with the chosen
consultant who will utilise the brief to compile a list of
suitable candidates.
Skills and
composition
review
Creating
the brief
Longlist and
shortlist review
Due diligence
Recommendations
Intertek Group plc
Annual Report & Accounts 2024
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Nomination Committee Report Continued
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2: Sustainability Report
1: Strategic Report
Committee activity in focus
Board and Committee changes
During the year, as part of our succession planning for the
next 18 months, the Committee initiated searches for additional
new Non-Executive Directors. In addition to the specific skills,
knowledge and experience deemed necessary, the role
specification contained criteria such as competency and
personal qualities that would be required for the position.
The Committee also paid close attention to ensure that the
candidates selected exhibited the right behaviours to fit the
culture, values and ethics of the Group and would also be
able to allocate sufficient time to the Company to discharge
their responsibilities.
The Committee engaged Egon Zehnder and Spencer Stuart,
both external search agencies with no other connection to the
Company or its individual Directors, to assist with the selection
process. Egon Zehnder were engaged to focus on the UK market
whilst Spencer Stuart focused on the international market to
reflect the global nature of the Group.
For the searches, an initial list of potential candidates was
produced and shortlisted. The Committee members and the Chair
met separately with shortlisted candidates, following which they
agreed to recommend to the Board the appointment of Steve
Mogford, as announced on 24 December 2024. Steve joined the
Board from 1 January 2025.
Steve is a highly experienced executive and non-executive
director with experience from across a breadth of sectors,
extensive public markets knowledge and a deep understanding
of long-term contracting, projects and regulation. He has a firm
commitment to sustainability which is at the heart of Intertek's
Purpose, Vision and Values.
Talent mapping and succession planning
To ensure that the Board comprises a wide range of skills,
experience and attributes, the Committee discusses and reviews
extensively the experience, skills and behaviours required of
future Directors, including the qualities of the individual required
to ensure the right fit with the culture and style of Intertek.
In identifying suitable candidates to recommend for
appointment to the Board, the Committee considers all
candidates on merit, against objective criteria, and with
due regard for the benefits of diversity on the Board to achieve
the most effective Board possible.
During the year, we continued to monitor the composition of
the Board and its principal Committees, implementing changes
announced at the end of 2023. Our discussions then considered
different time horizons within our succession planning, including
contingency planning for sudden and unforeseen departures,
the orderly replacement of current Board members and senior
management. A longer-term view looked at the relationship
between the delivery of the Group strategy and objectives
and the skills needed on the Board now and in the future.
Gill Rider retired from her role on the Board at the conclusion of
the AGM on 24 May 2024. Graham Allan took over the role as
Chair of the Remuneration Committee, having been a member
since 2017.
Kawal Preet was appointed a member of the Remuneration
Committee and Apurvi Sheth joined the Audit Committee with
effect from the same date. These changes were in line with the
succession planning that had been considered, and announced,
at the end of 2023.
Board effectiveness and training
During the year the Chair instructed Gould Consulting to carry
out an externally facilitated performance review of the Board
and its Committees. The process and findings are outlined on
pages 2.79-2.80.
The review concluded that the Board, each Committee and each
Director continue to perform effectively and contribute to the
long-term sustainable success of Intertek. The feedback from
the Board performance review is considered when determining
the key skills required for new Directors on the Board for
the future.
The review also confirmed that the Committee continues to be
able and effective in discharging its duties in accordance with
its Terms of Reference and the requirements of the Code.
Independence, time commitments and reappointments
Based on its assessment for 2024, the Committee is satisfied
that, throughout the year, all non-executive directors remained
independent in character and judgement in line with Provision 10
of the Code.
On appointment, the Board assessed and agreed that Andrew
Martin was independent in accordance with the provisions of the
Code. At its meeting in December, the Committee discussed the
reappointment of Andrew Martin as Chair of the Board. Graham
Allan, Senior Independent Director, chaired the meeting and
Andrew Martin did not attend. The Committee considered the
ongoing performance of the Chair, including his leadership,
corporate and commercial skills and general experience.
Andrew Martin joined the Board of Intertek in May 2016 and
has served as Chair since January 2021. Hence, he has now
served as a director of the Company for nearly nine years, four of
which he has served as Chair. Provision 19 of the Code provides
for a limited extension of tenure in certain circumstances,
subject to providing a clear explanation to shareholders.
During the last two years, three new directors have joined
the Board and, over the next two years, several experienced
directors will step down from the Board by rotation.
Taking into account these Board changes and the need to
ensure effective succession planning for a new Chair, the
Committee concluded that Andrew Martin’s re-appointment
as Chair, albeit not beyond the May 2026 Annual General
Meeting, was in the best interests of the Company.
Subsequent to the December Committee meeting, this proposal
was also discussed with several of the Company’s larger
shareholders, each of which were understanding of the
Committee’s rationale.
The Board recognises the importance of all Non-Executive
Directors having the necessary time to commit to the business
of Intertek and, upon appointment, their letters of appointment
stipulate the expected time commitment whilst acknowledging
that this may vary depending upon the demands of the business
and other events. All Directors make themselves freely available
as required, even at short notice, in order to meet the needs of
the business.
Directors seek approval from the Board before accepting any
additional external appointments. When assessing additional
directorships, the Board considers the number and nature of
external directorships already held by the individual and the
expected time commitment for those roles. During 2024,
approval was given to Tamara Ingram and Jez Maiden for new
external appointments. When considering the new external
Intertek Group plc
Annual Report & Accounts 2024
2.85
Nomination Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
appointments, in particular Jez Maiden’s role as Interim Chair of
Travis Perkins plc (which has now ended), the Committee were
satisfied that they would have sufficient time to commit to their
role with Intertek. Fuller details of any conflicts of interest can
be found on page 2.71.
Prior to joining the Board, Steve Mogford disclosed his
current commitments and the time commitment involved
and the Board was satisfied that he could provide sufficient
time to discharge his duties as a Director of Intertek.
With the support of the Board, Steve Mogford is standing
for initial election by shareholders, with all other Directors
standing for re-election at the AGM in May 2025.
In recommending the Directors for election and re-election
at the AGM, the Committee has reviewed the performance
of each Non-Executive Director and their ability to continue
meeting the time commitments required, taking into
consideration individual capabilities, skills and experiences and
any potential conflicts of interest that have been disclosed.
Board and Group Executive Committee Diversity1
BIOGRAPHIES FOR ALL THE DIRECTORS
ARE AVAILABLE ON PAGES 2.66-2.68
Diversity, equity and inclusion
We believe that diversity at Board level sets the tone for
diversity throughout the business. We promote diversity in the
broadest sense, not just gender or ethnicity but also culture,
skills, background, regional and industry experience and other
qualities to truly reflect the diverse nature of our business.
The Nomination Committee monitors our talent pipeline to
ensure we have a diverse pool of talent being developed at
all levels. Maintaining a diverse workforce is as important as
diverse recruitment and we continue to assess and promote this.
Intertek's Inclusion & Diversity Policy eliminates discrimination
to ensure that employees are treated fairly and feel
respected and included in the workplace, which is vital
as our people are core to the delivery of the best service
to customers and driving the strategy of Intertek.
Number of
Board members
As at 31 December
Percentage of
the Board
Number in Group
Executive Committee
As at 31 October
Percentage of Group
Executive Committee
report to the
Exec Committee
As at 31 December2
Percentage of direct
reports to the
Executive Committee
Gender
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Male
7
7
64%
58%
13
13
72%
72%
169
168
74%
77%
Female
4
5
36%
42%
5
5
28%
28%
60
51
26%
23%
Ethnicity2
White British or other White
8
9
73%
75%
12
12
67%
67%
80
n/a
35%
n/a
Mixed/Multiple Ethnic Groups
–
–
–
–
–
–
–
–
5
n/a
2%
n/a
Asian/Asian British
3
3
27%
25%
5
5
28%
28%
25
n/a
11%
n/a
Black/African/Caribbean/Black British
–
–
–
–
–
–
–
–
2
n/a
1%
n/a
Other ethnic group, including Arab
–
–
–
–
1
1
5%
5%
5
n/a
2%
n/a
Prefer not to say
–
–
–
–
–
–
–
–
1
n/a
1%
n/a
Do not know
–
–
–
–
–
–
–
–
111
n/a
48%
n/a
Number of senior
positions on the
Board, CEO, CFO,
SID and Chair
Number of direct
2024
2023
4
4
–
–
4
4
–
–
–
–
–
–
–
–
–
–
–
–
1.
Data is collected as at 31 December and 31 October each year as indicated to aid reporting in line with the FTSE Women Leaders and Parker Review.
2.
The definition of ethnicity follows the guidance provided by the Parker Review for UK companies. However, our diversity extends globally, reflecting a much broader range of ethnic backgrounds through our international presence. In 2024, data relating to the ethnicity of the direct
reports to the Group Executive Committee was collected through a self-ID questionnaire. Where the questionnaire was not completed the data was marked as 'Do not know'.
Our policy on Board diversity, which is available on our website
and applicable to the Board and its Committees, strongly supports
the principle of diversity and continues to be mindful of the
recommendations of the FTSE Women Leaders and Parker Review.
As at 31 December 2024, the Board comprised 36% female
directors, following Gill Rider’s departure from the Board,
and three members of the Board have an ethnic minority
background. The Committee is aware that the Listing rules
require female representation in at least one of the four
senior positions, which are currently held by male directors.
As part of the Board succession planning over the coming
18 months, the Committee continues to monitor the overall
inclusion and diversity of Intertek’s leadership at Board
and senior management level, to ensure the broadest
range of leaders are considered for new appointments.
2.86
Intertek Group plc
Annual Report & Accounts 2024
3: Financial Report
2: Sustainability Report
1: Strategic Report
Audit Committee Report
Dear shareholder,
I am pleased to present this report, which
is intended to provide shareholders with
insights into the work we have done as a
Committee to provide assurance on the
integrity of the Annual Report & Accounts
for the year ended 31 December 2024,
together with the effectiveness of the
Group’s risk management and internal
controls framework in a year of continued
market volatility.
We advised the Board that we had reviewed the process to
ensure the 2024 Annual Report & Accounts are fair, balanced
and understandable and provide the necessary information
for our shareholders and stakeholders to assess the Group’s
position, performance, business model and strategy. The
process of review is described in greater detail on page 2.91.
The Committee uses its collective expertise, with input from
the External Auditor, to understand, and where appropriate,
to challenge the approach and judgements made by
management in the treatment of financial matters and
the resulting disclosures within the financial statements.
The External Auditor performs its statutory audit, by auditing
the accounting records of the Company against agreed
accounting practices, relevant laws and regulations. PwC’s
audit report can be found on pages 3.57-3.63 in Report 3.
The Committee has also continued to monitor the heightened
scrutiny on the external reporting of ESG and, more specifically,
sustainability and the effects of climate change on companies.
As part of the Task Force on Climate-related Financial
The Committee's primary
focus centred on the
accuracy of the Group's
financial reporting,
together with the ongoing
improvements in internal
control activities, risk and
compliance matters."
Jean-Michel Valette
Chair of the Audit Committee
The Committee supports the Board by setting, reviewing and
monitoring Intertek’s policies and procedures to ensure the
independence and effectiveness of the Internal and External
Audit functions, the integrity of financial and narrative
reporting, the Company’s internal control framework and the
adequacy of the processes that enable the Board to assess
the level of principal risks the Company is prepared to take to
achieve its long-term strategic goals.
The Committee met four times in 2024. As Committee Chair,
I meet with the PricewaterhouseCoopers LLP (‘PwC’) lead
audit partner, the Group Audit Director and management as
appropriate ahead of meetings to discuss specific items of focus
to report to the Committee. After each meeting, I also report
back to the Board on the Committee’s activities, the main issues
discussed and matters of particular relevance.
Throughout the year, the Committee also ensured that separate
meetings with the CFO, Group Audit Director and the external
auditor took place (the latter without management present) in
order to provide an open forum for issues to be raised, and I also
held separate meetings, on behalf of the Committee, with senior
management within Intertek and with PwC on a regular basis.
During 2024, the Committee’s primary focus centered on the
accuracy of the Group’s financial reporting, having applied
additional focus to assess the risk management and the
framework of internal financial controls, together with
the additional work carried out to support the long-term
viability statement.
Intertek Group plc
Annual Report & Accounts 2024
2.87
Audit Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Membership and attendance
During 2024, the composition of the Committee met the
requirements of the Code. Gill Rider, having served nine years
on the Board, stepped down as a director following the
conclusion of the 2024 AGM. Following the vacancy left by
Gill Rider, the Nomination Committee reviewed the membership
of all of the Committees and recommended that Apurvi Sheth
join the Committee. More detail on succession planning is
set out on page 2.84 of the Nomination Committee report.
Apurvi Sheth became a member of the Committee with
effect from 24 May 2024.
The Board is satisfied that the Committee members bring a wide
range of financial experience across various industries and all
members have competence relevant to the sectors in which
Intertek operates, with recent and relevant financial experience.
An overview of the background, knowledge and experience of
the Committee Chair and each of the Committee members can
be found on pages 2.66-2.68 and in the Notice of the AGM.
The Committee met four times during the year. The Group
Company Secretary, the audit partner and members of his team
attended all meetings held during the year. At the invitation of
the Committee, the Chair, CEO, CFO, Group Financial Controller
and the Group Audit Director also attended meetings. Other
members of senior management were invited to attend the
meetings as necessary.
Disclosures compliance, we have reviewed and approved
management’s assessment of the physical and transitional
environmental risks and opportunities to the Group.
This year, an externally facilitated Board and Committee
performance review took place. I am pleased that it concluded
that we operate effectively and that the Board takes assurance
from the quality of our work.
PwC has been operating as the Group’s external auditors
since 2016. The Committee intends to carry out a thorough
audit tender during 2025 and preparations for the tender are
underway. We invite all interested shareholders to participate in
consultations concerning the tender. Your feedback is valuable
and will guide the Committee’s deliberations and decisions.
Please contact me through the Group Company Secretary.
As Chair of the Committee, I shall make myself available to
shareholders, especially at the AGM, to facilitate the answering
of any questions that they may have around the scope of the
Committee’s responsibilities as a whole, the Committee’s
activities throughout the year, and any other questions that
may arise from this report.
Committee members
Member since
Meetings
attended1
Jean-Michel Valette (Chair)
July 2017
4/4
Lynda Clarizio
July 2021
4/4
Jez Maiden
May 2022
4/4
Gill Rider
February 2021
until May 2024
2/2
Apurvi Sheth
May 2024
2/2
1.
Number of meetings attended out of the number of meetings eligible to attend in
the year.
Performance review
The performance review was conducted as part of the
external Board performance review for 2024. This included
a comprehensive questionnaire that covered various aspects
of the Committee's role and responsibilities. More details on
the process of the review can be found on page 2.79.
The results from the performance review were discussed by the
Committee and showed that it operated effectively during the
year. The Committee receives high-quality meeting materials
and the diverse backgrounds and skills among the members, and
relevant subject matter expertise and business acumen enable
members to discharge their duties in accordance with the Terms
of Reference and the requirements of the Code.
Jean-Michel Valette
Chair of the Audit Committee
May
Internal audit:
• Internal audits
coverage and analysis
External audit:
• PwC report to
the Committee
• PwC audit plan
and strategy
• Intertek assessment
of PwC effectiveness
July
Financial reporting:
• Half year results
and accounting
judgements
• Going concern
assessment
• Internal controls over
financial reporting
Internal audit:
• Internal audits
coverage and analysis
• Update on Global
Internal Audit
Standards
• Provisional Internal
Audit plan for 2025
External audit:
• PwC half year report
• Independence
confirmation
• Update on non-audit
services
December
Financial reporting:
• Update on significant
accounting policies
• Group Risk and
Viability Statement
process and basis of
preparation for YE
31 December 2024
• Core Mandatory Control
and Assurance Map
update
• Review of reporting
against 'Audit
Committees and
External Audit:
Minimum Standard'
Internal audit:
• Internal audit plan for
2025 and Internal
Audit Charter
• Internal audits
coverage and analysis
• Internal Assessment
of Internal Audit
effectiveness
External audit:
• PwC report to
the Committee
• Audit and non-audit
fees update
• Approved external
audit tender plan
February
Financial reporting:
• Full year results
and accounting
judgements
• Annual Report
& Accounts
• Going concern
assessment
• Viability statement
• Climate Change/TCFD
reporting
• UK Statutory
Audit exemption
and guarantee
Internal audit:
• Internal audit report
• Internal audits
coverage and analysis
External audit:
• PwC report to
the Committee
• Audit and non-audit
fees
• Independence and
reappointment
Intertek Group plc
Annual Report & Accounts 2024
2.88
Audit Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Committee's activities during 2024
Intertek Group plc
Annual Report & Accounts 2024
2.89
Audit Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Committee responsibilities and how we met
them in the year
The Committee has specific responsibilities delegated to it
by the Board. In line with the FRC’s recommendation, the
Committee has sought to apply the Audit Committees and the
External Audit: Minimum Standard (’Minimum Standard’) for the
year to 31 December 2024. The Committee reviews the Terms
of Reference annually; this year there was a particular focus
on ensuring the changes to the Code and introduction of the
Minimum Standard were incorporated. The revised Terms of
Reference of the Committee can be found at intertek.com.
The business of the Committee is linked to the Group’s financial
calendar of events and the timetable for the annual audit.
Compliance with the Minimum Standard
The Committee confirms that for the year ended 31 December
2024, it has complied with the Audit Committees and the
External Audit: Minimum Standard.
The activities carried out by the Committee in meeting the
requirements of the Minimum Standard are detailed on the
following pages of this Audit Committee report.
The Audit Committee will follow the tendering provisions of
the Minimum Standard when it undertakes the audit tender.
Financial reporting
A principal responsibility of the Committee is to monitor the
integrity of the financial statements of the Group, having regard
to the matters communicated to us by the external auditor, and
to measure the performance of the Group against the financial
goals of our strategy. This is key for our shareholders and other
stakeholders in order for them to understand the financial
strength of the business.
In order to fulfil this responsibility, we reviewed the full year
and half year results, as well as any formal announcements
relating to the Group’s financial performance, prior to release,
and recommended their approval to the Board.
Going concern and viability statement
We received a detailed report from management with the approach
taken to the going concern statement and viability statement
which included the projected funding requirements, the facilities
available to the Group, the sensitivity models used including an
illustrative severe yet plausible downside scenario of a reduction
of 30% to the base profit forecasts and the corresponding impact
to cash flow forecasts in both 2025 and 2026, and the review of
principal risks and uncertainties undertaken.
The Committee reviewed the paper and challenged the
assumptions with management and after making diligent
enquiries, the Directors have a reasonable expectation, based
upon current financial projections and bank facilities available,
that the Group has adequate resources to continue in operation
and meet its liabilities as they fall due over the period. This
conclusion is based on a review and an assessment of the levels
of facilities expected to be available to the Group, based on
levels of cash held, Group Treasury funding projections, and the
Group’s financial projections for a period to 31 December 2026.
The undrawn headroom on the Group’s committed borrowing
facilities at 31 December 2024 was £655.7m (2023: £664.3m).
The maturity of our borrowing facilities is disclosed in note 14
of the financial statements in Report 3, with repayment of two
senior notes totalling US$120m required by 31 December 2025.
The Group Treasury funding projections forecast these to be
repaid using existing facilities.
Following the recommendation of the Committee, the Board
continues to consider it appropriate to adopt the going concern
basis in preparing the Group’s financial statements (as disclosed
in note 1 of the financial statements on page 3.07 in Report 3)
and has approved the long-term viability statement as set out
on pages 1.59 and 1.60 in Report 1.
External audit – appointment of auditor
The appointment, review and relationship with the external audit
firm and the annual review of the effectiveness of the external
audit is a responsibility that is delegated to the Committee.
A transparent and independent audit tender process was
completed in 2015 and PwC have been the Group’s auditors
since May 2016. Graham Parsons serves as the PwC audit
partner responsible for the Group audit, a role he assumed in
May 2021. The Group is next required to put its external audit
process out to tender for the financial year ending 31 December
2026. More information on the external audit tender can be
found on pages 2.87 and 2.91.
The Committee monitors and reviews the independence and
objectivity of the external auditor and reviews the effectiveness
of the external audit process. The Committee also considers and
makes recommendations to the Board, to be put to shareholders
for approval at the AGM, in relation to the appointment,
reappointment and removal of the Group’s external auditor.
It ensures that at least once every ten years the audit services
contract is put out to tender to enable us to compare the quality
and effectiveness of the services provided by the incumbent
auditor with those of other audit firms.
Intertek Group plc
Annual Report & Accounts 2024
2.90
Audit Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
The independence of the external auditor is critical for the
integrity of the audit. The Committee sought confirmation
from the auditor that they are fully independent from the
Group’s management, are free from conflicts of interest and
have assessed the nature and level of non-audit fees paid to
PwC and have determined that PwC are fully independent.
During the year, the Forvis Mazars LLP integrated partnership
(‘Forvis Mazars') were re-appointed to audit approximately
4.1% of the Group’s in-scope components, measured as a
proportion of revenue.
2024 Audit plan
During the year the Committee evaluated PwC’s Group audit
scope for 2024. The year end audit plan was based on agreed
objectives, with the audit focused on areas identified as
representing significant risk and requiring judgement. In order
to manage costs and ensure that the Group maintained audit
relationships outside the ‘Big 4’, Forvis Mazars continued to
undertake some of the Group audit work under the direction
of PwC. Forvis Mazars is principally responsible for the statutory
audit of certain non-material group subsidiaries, but also
undertook specific audit procedures for certain component
entities that were within PwC’s Group audit scope for 2024.
Forvis Mazars reported independently to PwC on this work
and the work was directed, supervised and reviewed by PwC.
UK Group Audit exemption
For the year ended 31 December 2024, a number of the Group’s
UK subsidiaries are entitled to exemptions from audit under
section 479A of the Companies Act 2006. We have identified
which subsidiaries intend to utilise the audit exemption in the
table on pages 3.55 and 3.56 in Report 3.
Intertek Group plc is the ultimate parent undertaking of these
companies and has unanimously agreed to the granting of a
guarantee in accordance with section 479C of the Companies
Act 2006.
External auditor effectiveness and quality
The Committee conducts an annual review to assess the
independence and objectivity of the external auditor and the
effectiveness of the audit as part of the year end process.
This process is conducted in three parts as outlined below:
1. PwC presents to the Committee its approach to safeguarding
and maintaining the quality and independence of their audit
of the Group and their auditors, including addressing any risks
they face in maintaining audit quality across their network.
This is an extensive report covering all aspects of the audit
from the scope of work, reporting the outcomes of findings,
the key audit matters, fraud and investigations, intercompany
transactions, treasury, key risks, going concern and the IT
environment. Each aspect is reviewed and debated with the
auditors. The Committee was satisfied that the audit was
extensive, sufficiently challenging and robust.
2. The views of management and the Directors on PwC’s service,
level of challenge, and application of professional judgement
are obtained via a questionnaire, and subsequent follow up as
necessary. The feedback is then presented to the Committee.
3. The key findings and recommendations from both processes,
together with any form of appropriate external evaluation
such as feedback from shareholders and the FRC Audit Quality
Inspection Report then form the basis of the assessment of
PwC’s effectiveness, together with the Committee’s
experience of dealing with PwC during the year.
The responses to the annual appraisal questionnaire were
collated and incorporated into the planning process for the
following areas: Planning, Fieldwork and Reporting.
Following this review, the Committee considered in detail
the feedback received from a selection of Intertek personnel,
including Committee members, Group functions, regional finance
teams and country finance managers. The feedback scores from
the survey indicated a small increase in the Planning category,
a decrease in the Reporting category, and no change in the
Fieldwork category compared to the previous year. The overall
perception of PwC’s effectiveness remains positive, with 96%
of respondents either agreeing or mostly agreeing with the
statements outlined in the questionnaire, consistent with the
prior year (2023: 96%).
Overall, a robust collaborative approach persists, ensuring
continuous communication and engagement throughout the
year, with continued opportunities to further integrate IT and
other workstreams. The audit findings and the areas to improve
were discussed at the May 2024 Committee meeting and PwC
effectively addressed questions and challenges provided by
Committee members.
The Committee concluded, at the meeting held in May 2024, that
PwC remained independent and that, overall, PwC had completed
a robust and fit-for-purpose audit process across the Group with
a satisfactory level of resources.
The effectiveness of the 2024 audit of the Group will be
reviewed by the Committee in May 2025.
Audit and non-audit fees
The Terms of Reference of the Committee include ensuring the
continued independence and objectivity of the Group’s external
auditors. This is achieved through:
• the annual approval of the policy for the engagement of
external auditors for audit and non-audit services;
• setting limits for non-audit spend for the external auditors;
• an annual review of the Group Auditor’s performance in
conducting the external audit (presented at the May 2024
Audit Committee meeting);
• a five-year maximum tenure period for the external audit
partner; and
• where appropriate, audit tendering and rotation.
The Group has set out a policy on the provision of non-audit
work by the external auditor consistent with the 2024 Ethical
Standard issued by the FRC, and it is designed to ensure
that the provision of such services does not create a threat
or compromise the external auditor’s independence and
objectivity. The policy outlines in detail the services that the
external auditor cannot provide including tax services and
services that involve playing any part in the management
or decision making of the audited entity amongst others. It
identifies certain types of engagement that the external
auditor shall, subject to the audit cap, be permitted to
undertake, including with respect to audit-related services
such as reporting required by law or regulation to be provided
by an auditor, reviewing interim financial information, reporting
Intertek Group plc
Annual Report & Accounts 2024
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2: Sustainability Report
on regulatory returns, reporting to a regulator on client
assets and reporting on government grants. With respect
to non-audit services, the policy outlines the services that
can be provided by the external auditor as required by law
or regulation and are exempt from the non-audit fee cap.
In the event that an engagement for non-audit services arises,
the policy is designed to ensure that the external auditor is only
appointed where it is considered to be the most suitable supplier
of the service and the necessary prior approvals have been given
in accordance with the policy.
The Committee annually reviews and re-approves the
framework of permitted non-audit services as set out in the
policy, taking into account any changes in legislation and best
practice. The Committee reviewed the policy in 2024 and no
major changes were made. PwC also provides an update on
the spend for non-audit services twice a year. For 2024, the
Committee pre-approved a total non-audit spend of £234,000
(2023: £234,000).
As per the policy, all non-audit services must be approved by the
CFO, and in the event that the pre-approved limit is exceeded,
the Committee Chair and the CFO have to approve an increase to
the pre-approved limit. In 2024 this process operated effectively.
A summary of the fees paid for non-audit services is set out
below. The majority of the non-audit fees related to a review
by PwC of the Interim Results announcement, which is deemed
a non-audit service. This was considered appropriate as PwC
also audit the full year results.
2024
£m
2023
£m
Total non-audit fees
0.2
0.2
– audit-related services
0.2
0.2
– tax services
–
–
– other non-audit services
–
–
Audit fee
5.9
5.8
% of audit fee
3%
3%
Further information is contained in note 4 to the financial
statements on page 3.12 in Report 3.
Statement of compliance with the Competition
and Markets Authority (‘CMA’) Order
The Committee considered that the Company has complied
with the Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender Processes
and Audit Committee Responsibilities) Order 2014 published by
the CMA on 26 September 2014 ('CMA Order 2014'), including
with respect to the Audit Committee’s responsibilities for agreeing
the audit scope and fees and authorising non-audit services.
External audit tender
The Group’s last competitive external audit tender was carried
out in 2015. The Audit Committees and the External Audit:
Minimum Standard, and the CMA Order 2014, require that a tender
take place at least every 10 years. During the year, the Committee
reviewed the future external audit requirements of the Company
and the Group, and approved the initiation of a formal audit tender
process to be undertaken during 2025 for the 31 December 2026
year end audit; concluding that this would be in the best interests
of the Company's members as it would reinforce robust corporate
governance and ensure continued transparency and confidence
in the financial reporting process. Further details on the process
and its outcome will be announced in due course, and a
recommendation will be made to shareholders at the 2026 AGM.
Internal audit
The Group has an Internal Audit function, whose activities are
overseen by the Committee, which provides assurance over
compliance with the Group’s framework of financial Core
Mandatory Controls ('CMCs').
The Committee monitors and reviews the effectiveness and
resources of the Internal Audit function throughout the year. To this
end, the Committee approves the Internal Audit programme and
charter for the year, which this year included the development and
inclusion of a strategy for the Internal Audit function that supports
the strategic objectives and success of the organisation as a result
of the introduction of Global Internal Audit Standards 2024.
The Committee reviews the internal audit reports and
monitors management’s responsiveness to the findings and
recommendations of the Group Audit Director, as well as approving
the appointment and removal of the Group Audit Director as
appropriate. When reviewing the summary findings, management
responses, progress against audit recommended improvement
plans and average compliance scores, the Committee was satisfied
that the Internal Audit function continued to work effectively and
focus its activities in the areas with the greatest need.
Internal audit effectiveness
The Committee assesses and reviews the independence and
effectiveness of Internal Audit using a variety of inputs.
An independent review of effectiveness was undertaken by Grant
Thornton in 2023, with the next independent review planned in
2026. The review concluded that the Internal Audit function is
valued and their role in defining expectations and improving
compliance with the financial CMCs is widely acknowledged.
They further concluded that the function exhibits good practices,
in particular in the continuous improvement agenda of the team.
During the year, Internal Audit was assessed using feedback
received through a questionnaire to senior stakeholders across
the Company, including the Committee, Group Executives and
functions.
Responses were consistently favourable, and the external
auditor also provided informal and supportive feedback.
The Committee satisfied itself that the quality, experience
and expertise of the function is appropriate for the business.
Fair, balanced and understandable
In February 2025, the Committee reviewed the 2024 Annual
Report & Accounts and concluded that, taken as a whole, it was
fair, balanced and understandable and provided the information
necessary for shareholders to assess the Group’s position,
performance, business model and strategy, and the potential
impact on forward-looking assumptions supporting going
concern and viability assessments. In its assessment, it
considered that the following had been carried out and
this formed the basis of its recommendation to the Board:
• Pre-year end discussions held with the external auditor
in advance of the year end reporting process.
• Pre-year end input provided by the senior management team
and from corporate functions.
• A verification process dealing with the factual content of the
reports to ensure accuracy and consistency.
• Comprehensive review by the senior management team
to ensure overall consistency and balance.
• Review conducted by external advisers and the external
auditor on best practice regarding the content and structure
of the Annual Report & Accounts.
Intertek Group plc
Annual Report & Accounts 2024
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Internal control and risk management systems
The Board ultimately reviews the Group’s risks, controls
and compliance and mitigation actions. The Committee is
responsible for reviewing the adequacy and effectiveness
of that risk framework. We have an integrated approach
to obtaining assurance that our risks are being
appropriately and effectively identified and addressed.
Further information on how Intertek has implemented
an end-to-end integrated approach to risk, control and
compliance is outlined on pages 1.57-1.59 in Report 1.
‘Doing Business the Right Way’ is at the heart of what we do and
continues to be a key enabler of our AAA strategy. The Intertek
CMCs are an integral part of ‘Doing Business the Right Way’,
and provide the mechanism by which we define, monitor and
achieve consistently high standards in our control environment
throughout the whole organisation. At the end of the year, the
Committee undertook a review of the effectiveness of the CMCs
and Assurance Map to ensure that they continued to be fit for
purpose. Where non-compliances with the current CMCs were
identified in the 2024 internal audit review process, remediation
plans have been put in place. For 2025, the effectiveness of
the process was reviewed and there were additional controls
introduced based on risks and issues highlighted by the Group’s
Internal Audit and Compliance assurance programmes and
based on other risk indicator data and outputs including the
reporting, review and corrective actions of Hotline reports.
In order to provide assurance that the Intertek controls and
policy framework is being adhered to, a self-assessment
exercise is undertaken across the Group’s global operations.
This exercise is reviewed and refreshed each year to align
with the updated control framework and to support the
continued development of the Group’s control environment.
Relevant operational and functional leaders for each site are
required to complete a year end compliance certification, in
the form of an online questionnaire, to confirm that the right
management processes and controls are in place and are
operationally effective. The compliance certification covers
all CMC areas: Compliance, Sales, Operations, Marketing,
Communications, our use of intermediaries, IT, Finance,
Sustainability and People management. Where corrective
actions are needed, the leaders are required to provide an outline
and a confirmed timeline. The results are used as an input for the
Internal Audit and Compliance Audit assurance work for 2025.
Self-assessment responses are consolidated for review
at a divisional, regional and functional level, with further
review and sign-off of the consolidated self-assessments
in the corresponding divisional, regional and functional risk
committees, before a final consolidated CEO and CFO review.
A final summary assessment is provided to the Committee.
The self-assessment exercise has been expanded during
the year to ensure global coverage and to reflect Intertek’s
operational and financial structure, and in order to enhance the
alignment of the self-assessment to the assurance process.
We annually review and approve the statements to be included
in the Annual Report & Accounts to ensure they remain relevant
to the Group's strategy and operations as well as complying
with any regulatory requirements. A detailed verification
programme also provides assurance to the Committee and
the Board when checking that all the statements made
in the Annual Report & Accounts are accurate. Intertek’s
Manual of Accounting Policies and Procedures is issued to all
finance staff giving instructions and guidance on all aspects
of accounting and reporting that apply to the Group.
The Committee can confirm that it reviewed the Group’s
internal controls and risk management systems and
concluded that there was an effective control environment
in place across the Group during 2024, and up to the date
on which these financial statements were approved. No
significant failings or weaknesses were identified.
Whistleblowing and fraud
We reviewed the adequacy and security of the Group’s
arrangements for its employees and contractors to raise
concerns, in confidence, about possible wrongdoing in financial
reporting or other matters ensuring that these arrangements
allow proportionate and independent investigation of such
matters and appropriate follow-up action.
The whistleblowing hotline is well-publicised and can be used
by all employees, contractors and others representing Intertek,
or by third parties such as our customers or people who are
affected by our operations. This whistleblowing hotline is run
by an independent, external provider. It is multi-language and
is accessible by phone and by email 24 hours a day. Further
information on the whistleblowing hotline can be found on
page 2.58.
In addition, we review the Group’s systems and procedures for
detecting fraud and the prevention of bribery and receive regular
reports on non-compliance and keep under review the adequacy
and effectiveness of the Group Compliance function.
Audit Committee Report Continued
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Annual Report & Accounts 2024
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Significant issues
considered by the
Committee
In preparation for each year end, the
Committee reviews the significant
accounting policies, estimates and
judgements to be applied in the financial
statements and discusses their application
with management. An explanation of the
application of the Group’s significant
accounting policies is set out in note 1
to the financial statements on pages
3.07-3.08 in Report 3. The external
auditor also considers the appropriateness
of these assessments as part of the
external audit. The Committee’s views,
comments and their insights are used to
inform the processes and approach taken
by management in all areas of significant
risk, thus facilitating a Group-wide
consistent and prudent approach.
In accordance with the Code, the
external auditor prepares a report for
the Committee on both the half year
and full year results, which summarises
the approach to key risks in the external
audit and highlights any issues arising out
of their work on those risks, or any other
work undertaken on the audit.
Following reviews and discussions
throughout the year of all the relevant
papers presented and after considered
discussion with management and the
external auditors, the Committee had an
understanding of the business rationale
for transactions and how they were
being recorded and disclosed in the
financial statements, and therefore
agreed that the estimates and areas of
judgement exercised by management
were appropriate.
Claims
From time to time, the Group is involved
in various claims and lawsuits incidental
to the ordinary course of business.
The Committee considered the claims
provision which reflects the estimates
of amounts payable in connection with
identified claims from customers, former
employees and others. The Committee
noted that once claims have been
notified, the finance teams liaise with
the business to determine whether a
provision is required, based on IAS 37
Provisions, Contingent liabilities and
Contingent assets (‘IAS 37’).
The level of provision is subsequently
reviewed on a regular basis with the
Group General Counsel, taking into
account the advice of external legal
counsel. The Committee, following
assurance from management and review
of the position by the external auditors,
considered and agreed that the claims
provision, and associated disclosures,
were appropriate given the size and
status of claims reported.
Taxation
The determination of profits subject to
tax is calculated according to complex
laws and regulations, the interpretation
and application of which can be
uncertain. In addition, deferred tax
assets and liabilities require judgement
in determining the amounts to be
recognised, with consideration given to
the timing and level of future taxable
income. The main areas of judgement
in the Group tax calculation are the
expected central tax provisions for the
full year, including provisions related to
transfer pricing risk, and the recognition
of the UK deferred tax asset.
Twice a year, the Committee receives a
report from management providing an
evaluation of existing risks and tax
provisions which is reviewed by the
Committee. The Committee also
considered reports presented by the
external auditors before determining
that the levels of tax provisioning were
appropriate.
Revenue Recognition
IFRS 15 Revenue from Contracts
with Customers requires an entity to
recognise revenue in a way that shows
the transfer of goods/services promised
to customers is an amount that reflects
the expected consideration in return for
transferring control of those goods or
services to the customer.
The Committee reviewed the work
completed regarding revenue and, taking
into account the views of the external
auditors, agreed that the treatment
was appropriate.
Acquisitions and fair
value accounting
The Committee was advised of the
approach taken to the acquisition made
in 2024 where the related fair value was
recognised on a provisional basis. Such
provisional amount is subsequently
finalised within the 12-month
measurement period, as permitted by
IFRS 3. Details of the acquisition in 2024
are set out in note 10 on page 3.23 in
Report 3.
The Committee, following assurance
from management and review of the
position by the external auditors, was
satisfied that the treatment was
appropriate.
Impairment of Goodwill
and other acquired
intangible assets
The Group is required to make
judgements to estimate the fair value
of assets and liabilities acquired; in
particular, the amounts attributed to
intangible assets such as titles, brands,
acquired customer lists and associated
customer relationships. These
judgements impact the amount of
goodwill recognised on acquisitions. As
outlined in note 9 in Report 3, the Group
has £1,365.9m of Goodwill which has
arisen on acquisitions. An impairment
assessment is required at least annually
in respect of this amount.
The Committee noted the update as at
the year end and, taking into account the
acquisitions made during the year, and
after seeking views from the external
auditors, agreed the disclosure in note 9
on pages 3.20-3.22 in Report 3.
Accounts receivable
and accrued income
The Group takes a prudent approach to
provisioning of accounts receivable and
accrued income balances in line with IFRS
9 Financial Instruments.
The Committee noted the update as at
the year end and, considering the views
of the external auditors, agreed that the
Group’s provision was appropriate.
Consideration of
Climate Change
Mandatory TCFD reporting has driven
significant momentum regarding climate
change related disclosures. The Group
has set out its consideration of climate
change in respect of an impact on the
financial reporting judgements and
estimates arising from our assessment of
climate change on the Group as a whole.
The Committee reviewed the approach
taken to consider the impact of climate
change and the disclosures on pages
1.65-1.73 in Report 1, and taking into
account the feedback from the external
auditors agreed the approach taken and
the related disclosures.
During the year, the Committee reviewed and considered the following estimates
and areas of judgement to be exercised in the application of the accounting policies:
Pensions
The Group operates a number of
post-employment plans. In most
locations, these are defined contribution
arrangements. However, there are
material defined benefit schemes in
the United Kingdom and Switzerland.
Having considered advice from external
actuaries and assumptions used by
companies with comparator plans, the
Committee agreed that the assumptions
used to calculate the income statement
and balance sheet assets and liabilities
for post-employment plans were
appropriate (see note 16 on pages
3.35-3.38 in Report 3).
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Intertek Group plc
Annual Report & Accounts 2024
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2: Sustainability Report
1: Strategic Report
Remuneration Committee Report
In line with our AAA
strategy for growth, we
are increasing LTIP targets
to accelerate performance
and reward accordingly.”
Graham Allan
Chair of the Remuneration Committee
Dear shareholder,
I would like first to acknowledge my
predecessor, Gill Rider, for her work as Chair
and her support throughout the handover of
responsibilities. I would also like to thank my
fellow Remuneration Committee members
for their insights and valued contributions
during the past year. I am delighted to
present our Remuneration Report for
the year ended 31 December 2024.
In 2023 we announced our AAA differentiated growth
strategy to further strengthen performance, capitalising on
our strengths and seizing the higher demand for our services.
Our AAA strategy is raising the bar for the organisation as we
strive to be the best every day and deliver superior value for
all stakeholders, customers, employees, communities and, of
course, our shareholders. Having redefined our industry from the
traditional Testing, Inspection and Certification (TIC) services
into Risk-based Quality Assurance offering industry leading
ATIC (Assurance) solutions, we plan to capitalise on this unique
advantage to strengthen performance for all.
The Remuneration Committee recognised that the AAA strategy
was likely to require a review of the existing remuneration
framework but felt it appropriate to delay that review until
after the change in Committee Chair. Accordingly, no material
changes were made in the 2024 Directors’ Remuneration Policy
(overwhelmingly approved by shareholders at the 2024 AGM
under the normal three-year cycle). Subsequently, as the new
Committee Chair, I have taken on the task of ensuring that
our remuneration strategy can appropriately support the
unprecedented level of returns the new strategy is targeting,
without losing the key elements that have historically driven
the strong results of the Company.
We firmly believe the Group can, by executing its recently
launched AAA growth strategy, achieve higher levels of
organic revenue growth and accelerate EPS growth.
Therefore, we seek to incentivise our teams to unleash the
full potential of the Group with an enhanced LTIP scheme which
targets double digit EPS growth every year (10.5%-14.5%).
This would make Intertek one of the highest quality cash
compounders in the world and will create AAA value for our
shareholders through the compounding effect of consistent
high quality revenue growth, margin accretion, strong cash
generation and superior ROIC.
We are targeting superior performance within the high quality
cash global compounders peer group. Based on the latest
disclosures across the FTSE 100, we will be one of only three
FTSE100 companies targeting 13% p.a.+ EPS growth and the
only one targeting over 14% p.a. growth.
2025 Directors’ Remuneration Policy – introduction
of Enhanced Awards under the LTIP to unlock AAA
value growth
i)
Business context and the AAA value
growth opportunity
The Group has delivered impressive performance over the past
decade, executing its 5x5 differentiated growth strategy and
delivering total shareholder return ahead of its peers and the
FTSE 100. Over those 10 years, Intertek has performed strongly
on a range of metrics and has made significant strategic progress.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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2: Sustainability Report
The leadership team have begun work on all fronts to bring this AAA growth strategy to life. The early impact
is demonstrated by the strong financial performance of the Group in 2024.
Financial performance metrics1
FY24
FY23
YoY
(Actual rates)
YoY
(Constant rates)
Revenue
£3,393.2m
£3,328.7m
1.9%
6.6%
Operating profit
£590.1m
£551.1m
7.1%
13.0%
Operating margin
17.4%
16.6%
80bps
100bps
EPS
240.6p
223.0p
7.9%
15.2%
ROIC
22.4%
20.5%
190bps
250bps
Free Cash Flow
£408.8m
£378.4m
8.0%
Dividend
156.5p
111.7p
40.1%
1.
On adjusted basis
ii)
Principles underlying the remuneration policy review
The following principles underpin the review that was undertaken of the remuneration policy:
• The remuneration structure should incentivise senior executives to deliver the AAA growth strategy
in order to unlock significant value growth opportunity that will benefit shareholders.
• The reward framework should retain its current balance of metrics and management should not be
incentivised to deliver higher levels of earnings growth to the detriment of other key financial metrics, that
are fundamental to Intertek’s historic success, particularly Return on Invested Capital ('ROIC') and Free Cash
Flow ('FCF') generation.
• Any additional incentive should be straightforward to understand and should only deliver additional rewards
if higher levels of performance are achieved (i.e. a “more for more” principle). In particular, there should be no
additional rewards for delivering performance within the existing LTIP EPS target range.
• Any award vestings should be carefully considered in the context of the overall shareholder experience.
Financial metrics
Financial
performance
metrics1
20142
2024
14-24
change
Revenue
£2,093m
£3,393.2m
62.1%
Operating profit
£324.4m
£590.1m
81.8%
Operating margin
15.5%
17.4%
190bps
Diluted earnings
per share
132.1p
240.6p
82.1%
Dividend
49.1p
156.5p
218.7%
Adjusted Cash
Generated from
Operations
403.7
789.2
95.5%
ROIC
16.3%
22.4%
610bps
1.
On adjusted basis
2.
2014 metrics are on an IAS17 basis
• 147.5% TSR growth in absolute terms over the period
compared to FTSE 100 Index of 82.9%
• We have outperformed our peers and industry
benchmarks on a number of the metrics including Revenue
growth, Margin improvement, Cash generation and TSR
Key strategic advances
The leadership of the business has strengthened the
fundamentals of the business in terms of its overall
capability, talent, systems and processes.
Importantly, Intertek has redefined the industry from TIC
to ATIC, pioneering Risk based Quality Assurance to deliver
superior service which has positioned Intertek as the
absolute ATIC Quality leader.
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Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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2: Sustainability Report
1: Strategic Report
iii) Incentive proposal to unlock AAA value growth
Under our LTIP, which has received strong support from
investors, executives currently receive Core Awards which are
subject to a combination of EPS, ROIC and FCF performance
measures. This is consistent with our proven value creation
approach based on the compounding effect year after year
of high-quality revenue growth, margin accretion, strong cash
generation and disciplined capital allocation in high growth,
high margin sectors to deliver a superior ROIC.
The Committee considered several alternative ways of unlocking
the growth objectives within the AAA strategy from a reward
perspective. These included different structures (including, but
not limited to, profit sharing/value creation plans and a widening
of Core Award targets), and alternative metrics (including, but
not limited to, total shareholder return metrics). On balance, the
Committee felt that the alternatives would either be overly
complicated, could not easily achieve our self-funding objective
or would not directly align with the out-turns expected from the
management team in unlocking the AAA strategy. Our proposal
is therefore to grant the current Core Awards alongside
Enhanced Awards under the current LTIP. The features of the
Core Awards will remain consistent with grants in prior years
and details of the Enhanced Awards are set out below.
The Enhanced Awards:
• will require delivery of demanding double digit EPS growth
targets that are in excess of the targets applicable to the
Core Awards. They are therefore designed to incentivise
accelerated performance and to reward management
only if enhanced performance is delivered;
• will be underpinned by FCF and ROIC ‘qualifiers’ to ensure
that there is a focus on quality growth; and
• are designed to be self-funding.
Consequently, the Committee believes the proposed Enhanced
Award arrangement to be wholly aligned with the interests of
our shareholders. The table on this page outlines the design of
the proposed Enhanced Awards and their interaction with the
existing Core Awards within the LTIP structure.
LTIP
CORE AWARDS
Unchanged from current Policy. Will be retained to drive the
core business
Participants
• A group of leaders including Executive Directors, the Group
Executive Committee and other key senior leaders
Core Award levels
• Capped at 300% of salary
• 2025 awards to Executive Directors: CEO 300% of salary;
CFO 200% of salary
Time period
• Awards granted annually in Policy period
• Three-year performance period
• Two year holding period
Performance measures1
ENHANCED AWARDS
Subject to AGM approval. To incentivise and drive
unprecedented levels of growth through the AAA strategy
Participants
• A group of leaders including Executive Directors, the Group
Executive Committee and other key senior leaders
Enhanced Award levels
• Capped at 300% of salary
• 2025 awards to Executive Directors: CEO 300%
of salary; CFO 300% of salary
Time period
• Awards granted annually in Policy period
• Three-year performance period
• Two year holding period
Threshold
25% vests
Maximum
100% vests
EPS growth
(1/3 of award)
4% p.a.
10% p.a.
Cumulative FCF
(1/3 of award)
£1,297m
£1,377m
ROIC
(1/3 of award)
20.3%
24.3%
Performance measures1
Threshold
15% vests
Maximum
100% vests
EPS growth (100% of
award – but any vesting is
subject to achievement of
BOTH ‘qualifiers’ below)
10.5% p.a.
14.5% p.a.
‘Qualifiers’
– Cumulative FCF
£1,397m
– ROIC
22.3%
(above maximum of
Core Award range)
(midpoint of Core
Award range)
1.
Irrespective of the formulaic outcomes, the Committee will consider whether any discretion should be applied to the vesting result to ensure that payouts are in keeping with
shareholder returns. The Remuneration Committee will also review in-flight LTIP targets in the event of “material” M&A to ensure they retain the originally proposed level of stretch.
Any share buyback will be excluded from the EPS calculation.
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Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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iv) How the proposal aligns with our principles
A summary of how this proposal aligns with the aforementioned principles is set out below.
CORE AWARDS
Core Awards continue to be granted subject to a combination of metrics (EPS, ROIC and FCF)
Ensures management remain focused on delivery of fundamentals that have resulted in strong historic performance
EPS growth targets (4-10% CAGR) consistent with previous Core Awards under the LTIP
Target range remains challenging relative to Intertek’s historic long-term performance (average 6.2% CAGR 2014-24)
ENHANCED AWARDS
Retains all 3 elements of the Core Awards – EPS / FCF / ROIC. No vesting unless demanding quantitative ‘qualifiers’ achieved for both ROIC and FCF
Challenging ROIC / FCF ‘qualifiers’ ensure management are not incentivised to pursue earnings growth from M&A activity unless it also delivers strong returns on capital
If both ‘qualifiers’ achieved, vesting of awards subject wholly to EPS
Simple structure which is aligned to AAA growth strategy
EPS growth targets (10.5-14.5% CAGR) entirely above Core Awards maximum (10% CAGR)
Ambitious targets consistent with “more for more” principle and outperformance goals of the AAA growth strategy. The resulting target EPS range is set to be one of
the most stretching target ranges across the FTSE 100. Based on the latest disclosures across the FTSE 100, we will be one of only three FTSE100 companies targeting
13% p.a.+ EPS growth and the only one targeting over 14% p.a. growth. This would represent a level of sustained performance that Intertek has not achieved at any point
in recent history.
2015-17
2016-18
2017-19
2018-20
2019-21
2020-22
2021-23
2022-24
0%
-2%
2%
4%
6%
8%
10%
12%
14%
16%
EPS target range relative to historic Intertek performance
Core Awards – target range
Enhanced Awards – target range
EPS growth1 - CAGR
Intertek performance over period
CAGR 2014-2024
1
Annualised fully diluted, adjusted EPS growth. Measured on a constant currency basis
8.5%
9.7%
8.3%
-1.6%
0.8%
1.4%
12.5%
11.8%
4%
10%
10.5%
14.5%
Appropriateness of vesting outcomes will be subject to a discretionary framework at the end of the performance period
Ensures that all LTIP vestings are consistent with the shareholder experience. Full details of the framework that will be used by the Committee at the end of the performance
period when considering vestings is set out in the Implementation section of the Annual Report on Remuneration (page 2.114). For the avoidance of doubt, the Committee
does not have the discretion to disapply the qualifiers or any of the performance targets.
• Intertek has delivered growth within the proposed Enhanced
Award target range in only two of the last eight LTIP cycles
• The proposed Enhanced Award range is significantly above
long-term EPS growth performance (6.2% CAGR between
2014-2024)
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v)
Listening to our shareholders
Over recent months, we have undertaken extensive consultation
on this proposal and I would like to extend my sincere thanks to
all those who participated for sharing their time. Details of the
consultation process are outlined below, alongside a summary
of the significant changes that we have made to our proposal
to reflect feedback received.
Consultation process
STAGE 1
October 2024
Who was consulted?
Top 7 shareholders covering circa 33% of register
were consulted and all kindly provided feedback
on our initial proposals.
What changes were subsequently made to
the proposal?
Following Stage 1 of the consultation, to supplement
the proposed demanding EPS growth targets, ROIC
and FCF ‘qualifiers’ were added to provide shareholders
with reassurance that management are not
incentivised to chase earnings growth from M&A
unless it also delivers strong returns.
STAGE 2
November 2024
Who was consulted?
Top 7 shareholders covering circa 33% of register
were consulted on a revised proposal and again all
kindly provided feedback.
What changes were subsequently made to
the proposal?
Following Stage 2 of the consultation:
• The maximum value of Enhanced Awards was reduced
to 300% of salary.
• The proposed population to receive Enhanced Awards
was widened.
• The ROIC and FCF ‘qualifiers’ were made more stretching.
• The vesting % for threshold performance on Enhanced
Awards was reduced to 15%.
• Clarity was added as to how “material” M&A and share
buybacks would be treated.
• A discretionary framework was developed to assess the
appropriateness of vesting outcomes, to ensure that any
payout is consistent with the investor experience.
STAGE 3
December 2024
Who was consulted?
Top 40 shareholders covering circa 60% of register
and three major proxy bodies (ISS, Glass Lewis and The
Investment Association) were consulted on a revised
proposal. We received helpful feedback from a number
of shareholders and the three leading proxy bodies.
What changes were subsequently made to
the proposal?
As feedback in Stage 3 was broadly positive,
no further changes were made to the proposal.
Feedback from the proxy bodies emphasised the
importance of a clear explanation and rationale for the
proposal in this Remuneration Report. That feedback
has been reflected in this document.
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We also received several questions during
consultation and, for transparency, set out
below our responses to some of the most
common themes.
Q
Your current Policy was only approved at the 2024 AGM.
Why are you seeking approval for another new Policy
so soon?
A
The Committee recognised that the AAA growth strategy was
likely to require a review of the existing remuneration framework
but felt it was appropriate to delay that review until after the
change in Remuneration Committee Chair. While we were
technically required to re-approve the policy at the 2024 AGM,
the comprehensive review of our remuneration strategy took
place following the AGM.
Q
Would it not be simpler to increase the size of existing
Core Awards rather than introducing a new concept of
Enhanced Awards?
A
Whilst sympathetic to this view, the Remuneration Committee’s
belief is that a “more for more” principle is of fundamental
importance to this proposal. This was a view shared by many
investors during consultation. This would not have been achieved
by simply increasing the size of Core Awards as additional reward
could then have been earned without necessarily delivering higher
levels of earnings performance. The Enhanced Awards, with clear
distinction from business-as-usual activities, are designed to be
self-funding and are specifically linked to delivery of differential
levels of growth. The Enhanced Award will only deliver additional
value for Executives if Intertek delivers both demanding EPS
growth targets (over and above those used for existing Core
Awards) and also satisfies stretching ROIC and FCF ‘qualifiers’.
By way of an example:
• If the Core Awards had simply been increased from 300% to
600% of salary, each element of the plan would have had
an independent weighting measured separately from each
other. If the weightings had been retained in line with the
current Core Awards (i.e., 1/3 for each element), each metric
would have been weighted at 200% of salary. In a scenario
where the Group delivered at the maximum of the EPS
range (i.e. 14.5% growth), but missed the ROIC and FCF
threshold metrics, the formulaic outcome would result in
a vesting of the full EPS element, i.e. 200% of salary.
• Under the proposed design, this would not be the case.
This is through the underlying construct where the EPS
element of Enhanced Awards would not “activate” unless
the ROIC and FCF qualifiers are achieved, which are set
at a level of stretch above the threshold of each of the
respective metrics. In this scenario, vesting would therefore
be capped at the maximum of the current Core Award
structure of 100% of salary.
As can be seen from the above example, the Committee felt that
the construct of the Enhanced Awards, through stretching targets
combined with strong qualifiers, sat more naturally with the
Group’s high quality earnings and cash compounder model, and
represented better value for shareholders.
Q
Given the degree of focus on EPS in this proposal,
will management focus too much on M&A?
A
It should be noted that the Board has oversight into the details
of any material acquisition and that Intertek has a proven history
of rigour around M&A investments, generating excellent returns.
During the current CEO’s tenure, ROIC has averaged 21.5%.
Notwithstanding this, we understand that some shareholders
may still be concerned that there remains a risk that management
might be incented to pursue large scale M&A to deliver earnings
growth. To protect against that, we have included two safeguards:
• The ROIC ‘qualifier’ for Enhanced Awards is set at a level that
would make it counter-productive for management to pursue
M&A unless it provided excellent returns; and
• In the event of material M&A transactions, the Committee will
review in-flight and future targets to ensure they retain the
originally proposed level of stretch.
Q
What will happen to the EPS targets in the event
of a share buyback?
A
The EPS targets will be adjusted to neutralise the impact
of any share buybacks.
Q
How did the Committee determine the proposed Enhanced
Award levels?
A
The Committee carefully considered the Enhanced Award levels
both in the context of relevant market data and the significant
degree of stretch in the targets. Specifically in the case of our
CEO, André Lacroix, the following points are worth highlighting:
• The current Intertek CEO package is positioned between median
and upper quartile within the FTSE 100 which reflects André’s
extensive experience and excellent performance in role.
• Given the degree of stretch in the proposed targets, there
would be no change in the positioning of André’s Total Target
Remuneration under this proposal. It should also be highlighted
that André would receive no additional remuneration for
delivering the current Core Award maximum target of 10%
EPS growth.
• If the Enhanced Awards were to pay out in full, then André’s
Total Maximum Remuneration would be slightly ahead of upper
quartile within the FTSE 100. However, this outcome would be
dependent on the delivery of sustained EPS growth which
significantly exceeded normal market practice across the
FTSE 100 and therefore the Committee concluded that this
positioning would be supported by enhanced performance.
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Implementation of our Remuneration Policy in 2025
Base salary
The Remuneration Committee has awarded the CEO and CFO
salary increases of 2.4% which is in line with the wider UK
workforce increase of 2.4%.
Annual incentive
The maximum annual incentive opportunity for the Executive
Directors remains unchanged in 2025 at 200% of salary. It will
continue to be based 70% on a matrix of Revenue and Adjusted
Operating Profit growth, 15% on ROIC and 15% on ESG, based
on Carbon Emissions.
LTIP
2025 Core Awards remain unchanged at 300% and 200%
of salary for the CEO and CFO respectively. As outlined above,
and subject to shareholder approval, the Executive Directors
will also receive Enhanced Awards worth 300% of salary.
Performance measures and targets for the Core and Enhanced
Awards are outlined in the 2025 Directors’ Remuneration Policy
section above.
Performance and incentive outcomes for 2024
As set out earlier in the Annual Report & Accounts, Intertek
has delivered robust revenue growth, strong margin progression,
double-digit earnings growth, excellent cash generation
and ROIC. Performance highlights are summarised below –
full details are on pages 1.34-1.39 in Report 1.
Financial performance metrics1
FY24
Revenue
£3,393.2m
Operating profit
£590.1m
Operating margin
17.4%
EPS
240.6p
ROIC
22.4%
Free Cash Flow
£408.8m
Dividend
156.5p
1.
On adjusted basis.
CEO packages of FTSE 100 companies
Total maximum remuneration
£0m
£20m
£15m
£5m
£10m
Median
UQ
Intertek – current package
Intertek – proposed package
Q What alternative reward mechanisms did you
consider before arriving at your proposal?
A
The Committee considered several alternative ways of
unlocking the growth objectives within the AAA strategy
from a reward perspective. These included forms of profit
sharing (e.g. a value creation plan), alternative metrics (e.g.,
total shareholder return) and simply extending the existing
LTIP structure.
Whilst each of the alternative structures has some
strengths, some investors have challenged the more
innovative structures (e.g. a value creation plan) and whilst
alternative metrics were possible, they were not directly
aligned with the outcomes targeted from execution of
our AAA differentiated strategy for accelerated growth.
Ultimately, the Committee felt that the proposal set
out above:
(i) is more directly aligned with the out-turns expected to
be delivered from the strategy to unleash the full potential
of the company and deliver superior returns for our
shareholders;
(ii) is the only structure that affirmatively meets one
of our core principles of being self-funding; and
(iii) has the best alignment with shareholder interests.
Q
Other than the ‘qualifiers’, how do we get
comfortable that payouts will be aligned
with the shareholder experience?
A
Before any awards are approved to vest, the Committee will
carefully consider whether any discretion should be applied
to the vesting result using the detailed discretionary
framework set out in the Implementation section on page
2.114.
CEO packages of FTSE 100 companies
Total target remuneration
£0m
£2m
£4m
£6m
£8m
£10m
£12m
Median
UQ
Intertek – current and proposed package
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There was no change to our annual incentive framework for
2024, which continues to support the Group’s strategy for
growth and our purpose of bringing quality, safety and
sustainability to life. Based on the performance targets set
at the start of the year, this resulted in a formulaic outcome
of 95.6% of maximum. A full disclosure of the Annual Incentive
scorecard is provided on page 2.118. The Remuneration
Committee felt that this out-turn was consistent with the
overall strong performance of the business in the year. 50%
of this award will be deferred into shares for three-years.
Throughout the Group, our annual incentives are based on
the same metrics to ensure total alignment and transparency.
Our 2022 Core LTIP award was based on three equally weighted
metrics measured over a three-year period to 31 December
2024; EPS, FCF and ROIC, aligned with the Group’s strategy for
sustainable growth. Strong performance was delivered across
all three metrics with performance above the maximum targets
and the formulaic outcome was 100% of maximum vesting, full
details of which are provided on page 2.119
When determining incentive outcomes, the Remuneration
Committee exercised independent judgement, taking into
account a number of internal and external considerations
to determine whether the results felt appropriate, including:
• Robust revenue growth of 6.6% at constant currency;
• Strong margin progression to 17.4%;
• EPS growth of 15.2% in constant currency;
• Strong cash generation up 8.0% year-on-year;
• Disciplined capital allocation. Excellent progress from
acquisitions. Strong ROIC of 22.4%, up 250bps on 2023;
• Improved dividend – full year 156.5p, up 40.1% year-on-year
in line with our dividend policy of circa 65% payout, and
• The overall stakeholder experience over the relevant
performance periods, including the experience of our clients,
employees and communities.
It was the view of the Remuneration Committee that the
incentive outcomes appropriately reflected performance in
the relevant performance periods and the wider shareholder
experience, the Remuneration Policy operated as intended
and therefore no discretion was applied.
Wider workforce
Across the Group, our 45,000 employees deliver our science-
based customer growth advantage for our clients every day
with precision, pace, and passion. Our people bring their technical
expertise and energy to work every day. Over the year, the focus
of the Group is to ensure we have engaged and energised teams
taking the company to ever greater heights.
Intertek is compliant with minimum wage and mandatory social
contributions requirements in all jurisdictions where we operate.
Given the geographic spread of the Group’s operations,
employee reward is managed at local level to enable local
management to deliver the right customer and employee
experience. This year, we have focussed on the engagement
within our teams through our Champions programme in
partnership with Gallup, continued to focus on the wellbeing of
our employees through our Kindness programme, created more
relevant content on our internal learning platform – Lucie, and
continued celebrating our diversity through our Mosaic program.
With regards to salary budgets, we continue to be mindful of the
challenges our employees are facing with the ongoing inflation
and cost-of-living pressures across the world. In making salary
budget decisions, the Group balanced the challenges our
employees are facing with the wider approach to cost discipline.
Across the UK, the salary increase has been agreed at 2.4%, with
the UK representing below 5% of Intertek’s employee population.
Chair and Non-Executive Director fees
Following a review of fee levels which took into account
a range of factors including the responsibilities and time
commitment to the Group's affairs associated with individual
roles and appropriate market comparisons, Chair and Non-
Executive Director fee levels have been adjusted for 2025
(full details are on page 2.113). This is the first increase to
the Chair's fee since 2021 and the first increase to the
Non-Executive Directors' fees since 2018.
Conclusion
I hope that you will find this report clear and helpful in
understanding our remuneration practices. The Remuneration
Committee is confident that the proposed remuneration
structure is fully aligned to shareholder interests and is carefully
designed to support our strategy. I look forward to your support
on all remuneration related resolutions at our forthcoming AGM,
which include a resolution to increase the maximum LTIP award
level in line with the proposed changes on the Remuneration
Policy set out above.
Yours sincerely,
Graham Allan
Chair of the Remuneration Committee
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Directors’ Remuneration Policy
The Remuneration Policy for Executive and Non-Executive
Directors was last approved by shareholders at the AGM on
24 May 2024. As explained in the Remuneration Committee
Chair’s letter, a revised Remuneration Policy will be presented
to the AGM to be held on 22 May 2025. The only substantial
changes to the Remuneration Policy are:
• LTIP – The maximum LTIP opportunity will be increased to
600% of salary to facilitate Enhanced Awards of up to
300% of salary, designed to incentivise delivery of the AAA
differentiated growth strategy and to unlock a significant
value growth opportunity for shareholders; and
• Benefits – The current Policy contains a cap on the value of
executive director benefits which is not in line with current
market norms. Accordingly, the cap will be removed in the new
Policy. The Company will continue to look to optimise value
when seeking benefits providers.
In determining the Remuneration Policy, the Committee followed
a thorough process which included discussions on the content
of the Policy at six Remuneration Committee meetings and an
extensive consultation process with major shareholders and the
proxy advisory bodies. The Committee also considered input
from management. Any conflicts of interest were managed
with decisions being taken by members of the Remuneration
Committee with support from independent advisers, as well
as in the context of best practice and external guidance.
Policy overview
We continue to focus on ensuring that our Remuneration Policy
is appropriate for the nature, size and complexity of the Group,
encourages our employees in the development of their careers,
is aligned with the Company’s strategy and is in the best
interests of the Company and its stakeholders. It is designed
to incentivise delivery of the unprecedented returns the AAA
growth strategy is targeting whilst remaining committed to
the key financial metrics that have been fundamental to the
Company’s historic success.
Our remuneration strategy is to
• align and recognise individual contributions to support us
in achieving our AAA differentiated strategy for growth;
• attract, engage, motivate and retain the best available people
by positioning total pay and benefits competitively in the
relevant market and in line with the ability of the business
to pay;
• reward people equitably for the size of their responsibilities
and performance; and
• motivate high performers to increase shareholder value
and share in the Group’s success.
Each year the Committee approves the overall reward
strategy for the Group and sets the individual remuneration
of the Executive Directors and certain senior management.
The Committee reviews the balance between base salary
and performance-related remuneration against key objectives
and targets to ensure performance is appropriately rewarded.
This also ensures outcomes are a fair reflection of the
underlying performance of the Group and appropriate in
the context of the overall shareholder experience.
As a global service business, our success is critically dependent on
the performance and retention of key people around the world.
Employment costs represent the major element of Group operating
costs. As a global Group, our pay arrangements take into account
both local and international markets and we operate a global
Remuneration Policy framework to achieve our reward strategy.
Our benchmark peer groups for the majority of employees consist
of international industrial or business service organisations and
similar-sized businesses. For our more senior executives, we base
our remuneration comparisons on a blend of factors, including
sector, job complexity, location, responsibilities and performance,
whilst recognising the Company is listed in the UK.
We believe that a significant proportion of remuneration for
senior executives should be related to performance, with part
of that remuneration being deferred in the form of shares and
subject to continued employment and longer-term performance.
We also believe that share-based remuneration should form a
significant element of senior executives’ compensation, so that
there is a strong link to the sustained future success of the Group.
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Remuneration Policy for Directors
The following table sets out the Remuneration Policy for Directors.
Element of pay
Purpose and link to strategy
Operation
Maximum opportunity
Performance measures
Base salary
To attract and retain
The Committee normally reviews salaries annually, taking
There is no prescribed maximum salary
Individual performance is taken into account when salary
high performing
account of factors including, but not limited to, the scale
or annual increase.
levels are reviewed.
Executive Directors
of responsibilities, the individual’s experience and
In awarding any salary increases, the
to lead the Group.
performance.
Committee is guided by the general
Whilst the Committee takes benchmarking information
increase for the employee population
into account, its decisions are based primarily on the
but, on occasions, may need to
performance of the individual concerned against the
recognise other factors including, but
above factors to ensure that there is no unjustified
not limited to, development in role,
upward ratchet in base salary.
change in responsibility and/or variance
to market levels of remuneration.
Benefits
To provide competitive
Benefits include, but are not limited to, annual medicals,
There is no prescribed maximum value
n/a
benefits to ensure the
life assurance cover of up to six times base salary,
for benefits (excluding the all-employee
wellbeing of employees.
allowances in lieu of a company car or other benefits,
plans) as these will vary from year to
private medical insurance (for the individual and their
year depending upon the costs of
dependants) and other benefits typically provided to
different benefits providers.
senior executives.
The maximum opportunity under any
Executive Directors can participate in any all-employee
all-employee share plan is in line with all
share plans operated by the Company on the same basis
other employees and is as determined
as all other employees.
by the prevailing HMRC rules.
Pension
To provide competitive
Executive Directors can elect to join the Company’s
For new Executive Directors, pension
n/a
retirement benefits.
defined contribution pension scheme, receive pension
provisions will be in line with those of
contributions into their personal pension plan or receive
the wider UK workforce (currently 5%
a cash sum in lieu of pension contributions.
of salary).
For the Group CEO, the pension is
being brought in line with the wider
UK workforce as previously
will reduce from 10% to 5% of salary
from 1 June 2025.
committed.
It
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Element of pay
Purpose and link to strategy
Operation
Maximum opportunity
Performance measures
Awards are based on Group annual performance
targets, with performance targets normally set
annually by the Board.
The maximum opportunity in respect
of a financial year is 200% of salary
for each Executive Director.
Incentive out-turns are normally assessed by the
Committee at year-end, taking into account performance
against the targets and the underlying performance of
the business.
The Committee has the ability to adjust incentive
payments if it believes that out-turns are not appropriate
in the context of overall performance and wider
stakeholder experience.
The payout at below threshold performance is 0% of
maximum, with 25% of the maximum bonus normally
payable for threshold performance. Payouts between
threshold and maximum (100%) are determined on an
annual basis. Details of the payout schedule will be
disclosed in the relevant Directors’ Remuneration report.
Normally, 50% of any incentive is paid in cash and 50%
deferred into shares which will vest after a period of
three years subject to continued employment.
Annual Incentive
Plan (‘AIP’)
To drive the short-term
strategy and recognise
annual performance
against targets which
are based on business
objectives.
Malus and clawback provisions apply.
The annual incentive will be measured against a range of
key Group performance indicators, including both financial
and non-financial measures, with a minimum weighting of
80% of financial measures.
For 2025, the annual incentive will be based on a 70%
matrix of revenue and adjusted operating profit growth,
15% ROIC and 15% ESG, based on Carbon Emissions.
These measures support the Group's strategy for
growth and our purpose of bringing quality, safety and
sustainability to life. The stretch targets, when met,
reward exceptional achievement and contribution. There
is no incentive payout if threshold targets are not met.
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Element of pay
Long Term Incentive
Plan (‘LTIP’)
Purpose and link to strategy
To retain and reward
Executive Directors for
the delivery of long-term
performance.
Enhanced Awards are
specifically designed to
unlock AAA value growth.
To support the continuity
of the leadership of the
business.
To provide long-term
alignment of executives’
interests with
shareholders by linking
rewards to Intertek’s
performance.
Operation
Grant of conditional shares which vest after three years,
subject to Company performance and continued
employment.
Awards may be made in other forms (e.g. nil-cost options)
if considered appropriate.
The shares will also normally be subject to a two-year
holding period after vesting.
Performance targets are normally set annually for each
three-year performance cycle by the Board.
Vesting is normally assessed by the Committee
after the end of the performance period, taking
into account performance against the targets
and the underlying performance of the business.
The Committee has the ability to adjust incentive
payments if it believes that out-turns are not
appropriate in the context of overall performance
and shareholder and wider stakeholder experience.
The detailed discretionary framework to be used for
this process is set out on page 2.114.
Malus and clawback provisions apply.
Maximum opportunity
Up to 600% of salary in respect of any
financial year comprising no more than
300% of salary as a Core Award and
no more than 300% of salary as an
Enhanced Award.
Performance measures
Awards are usually subject to an appropriate balance of
earnings, cash and capital efficiency metrics which align
with the Group's strategy for sustainable growth.
For 2025:
• Core Awards will be subject to an equally weighted
balance of EPS, FCF and ROIC performance measures.
• Enhanced Awards will be subject to an EPS performance
measure, aligned with the AAA strategy, as well as FCF
and ROIC ‘qualifiers’.
The Committee retains the discretion to alter the
performance metrics for future LTIP awards but, were the
Committee to do so, it would normally consult in advance
with the Company’s largest institutional shareholders.
As a point of principle, where a metric is used as a
performance measure (rather than a ‘qualifier’) for both
Core and Enhanced Awards, a target range will be used for
Enhanced Awards that is above that used for Core Awards.
No more than 25% of a Core Award and no more than 15%
of an Enhanced Award will vest for achieving a threshold
performance target, increasing (usually on a pro rata basis)
to full vesting for the achievement of the applicable
stretch performance target.
Share ownership
guidelines
To increase alignment
between executives
and shareholders.
Executive Directors are expected to retain any vested
shares (net of tax) under the Group’s share plans until
the guideline is met.
500% of salary for the CEO.
300% of salary for the CFO.
n/a
The guideline should normally be met within five years
of the guideline being set.
Further details of the share ownership guidelines and
the post-cessation shareholding guidelines are set out
in the Directors’ Remuneration report.
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Element of pay
Purpose and link to strategy
Operation
Maximum opportunity
Performance measures
Executive Directors are required, for
two years post-employment, to hold
shares equivalent to the lower of
(i) their share ownership guidelines; or
Post-cessation of
employment
shareholding
To ensure alignment of
sustainable performance
between executives and
shareholders.
Holding and vesting periods for all share awards
will be adhered to post-employment.
(ii) their actual shareholding.
n/a
A proportion of the fees (at least 50%) are paid in cash,
with the remainder used to purchase shares.
Fees are primarily determined based on the responsibility
and time committed to the Group’s affairs and
appropriate market comparisons.
The Chair receives an all-inclusive fee. Non-Executive
Directors receive a base fee and further fees for
additional Board responsibilities. Additional fees may
be paid in the exceptional event that Non-Executive
Directors are required to commit substantial additional
time above that normally expected for the role.
Non-Executive
Directors’ fees
To attract and retain
high-calibre Non-
Executive Directors
through the provision of
market-competitive fees.
With the exception of benefits in kind arising from
the performance of duties (and any tax due on those
benefits which is reimbursed by the Company), no other
benefits are provided.
As for the Executive Directors, there is
no prescribed maximum annual increase.
The Committee is guided by the general
increase for the employee population
but on occasions may need to recognise
other factors including, but not limited to,
change in responsibility and/or variance
to market levels of remuneration.
n/a
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2: Sustainability Report
Selection of performance metrics
The annual incentive plan is based on performance against a mix
of financial and non-financial measures. The mix of financial
measures is aligned to the Group’s key performance indicators
(‘KPIs’) and is reviewed each year by the Remuneration
Committee to ensure that they remain appropriate to reflect
the priorities for the business in the year ahead. The targets
are set for each KPI to encourage continuous improvement and
challenge the delivery of stretch performance. When setting
the targets, the Committee takes into account a range of
factors, including the business plan, prior-year performance,
market conditions and consensus forecasts.
The 2025 LTIP awards are designed to incentivise senior
executives to deliver the AAA differentiated growth strategy
and to unlock the significant value growth opportunity that will
benefit shareholders. However, the Committee is also conscious
that management should not be incentivised to deliver higher
levels of earnings growth to the detriment of other key financial
metrics that are fundamental to the Company’s historic success.
Accordingly, the LTIP framework retains a balance of three
measures: earnings per share growth, return on invested capital
and adjusted free cash flow. Earnings per share ensures that
there is a clear focus on margin-accretive revenue growth;
adjusted free cash flow ensures focus on strong cash
management; and return on invested capital ensures a focus
on disciplined capital management. The Committee reviews
the choice of performance measures prior to each LTIP grant.
A sliding scale of challenging performance targets is set for
each LTIP measure. When setting targets, the Committee
takes into account a range of factors, including the business
plan, prior-year performance, market conditions and consensus
forecasts. Specifically in respect of Enhanced Awards, the
Committee’s overriding principle is that the targets should only
deliver additional reward if higher levels of performance are
achieved than in respect of Core Awards (i.e. a “more for more”
principle). The Committee reviews the appropriateness of the
performance targets prior to each LTIP grant and reserves the
discretion to set different targets for future awards, without
consulting with shareholders.
Terms of incentive awards
Deferred Share awards and LTIP awards may include the right to
receive (in cash or shares) the value of the dividends that would
have been paid on the shares that vest up to the time of vesting
(or for LTIP awards, up to the end of the relevant holding period).
The Committee’s intention is that such dividends would normally
be settled in shares.
The Committee will operate the annual incentive plan and LTIP
according to the respective rules of the plans. The Committee
will retain flexibility in a number of areas regarding the operation
and administration of these plans, including (but not limited to)
the following:
• how to deal with a change of control or restructuring of the
Group, or a demerger or similar event (including how to assess
performance conditions and whether to time pro-rate awards);
and
• how and whether any award may be adjusted in certain
circumstances (including in the event of a variation of
share capital, demerger, special dividend, or similar event).
The Committee also retains discretion within the Remuneration
Policy to adjust targets and/or set different measures and
weightings if required for the targets or conditions to achieve
their original purpose. Revised targets/measures will be, in the
opinion of the Committee, no less difficult to satisfy than the
original conditions. The Committee may accelerate the vesting
and/or the release of awards if an Executive Director moves
jurisdictions following grant and there would be greater tax
or regulatory burdens on the award in the new jurisdiction.
Malus and clawback
A Group Performance Adjustment Policy has been introduced
which sets out the details of how and when malus and clawback
will be operated and applies to all aspects of compensation
for Executives and wider staff. Please see page 2.123 for
further details.
Remuneration scenarios for Executive Directors
The chart on the next page illustrates how the Executive
Directors’ remuneration packages vary at different levels of
performance under the Policy which will apply in 2025 for
both the Chief Executive Officer and Chief Financial Officer.
Approach to recruitment and promotions
The remuneration package for a new Executive Director –
base salary, benefits, pension, annual incentive and long-term
incentive awards – would be set in accordance with the terms of
the Company’s prevailing approved Remuneration Policy at the
time of appointment. The Committee may set the base salary at
a value to reflect the calibre, experience and earnings potential
of a candidate, subject to the Committee’s judgement that
the level of remuneration is in the Company’s best interests.
The maximum level of variable pay (annual incentive and
long-term incentive awards, or any combination thereof)
which may be awarded to a new Executive Director at or
shortly following recruitment shall be limited to 800% of salary.
These limits exclude buy-out awards and are in line with the
Remuneration Policy for Directors set out previously.
The Committee may offer additional cash and/or share-based
elements to take account of remuneration relinquished when
leaving the former employer when it considers these buy-outs
to be in the best interests of the Company (and therefore
shareholders).
Any such awards would reflect the nature, time horizons and
performance requirements attaching to the remuneration it is
intended to replace. Where appropriate, the Committee retains
the flexibility to utilise Listing Rule UKLR 9.3.2 R for the purpose
of making an award to buy-out remuneration relinquished
when leaving the former employer. For external and internal
appointments, the Committee may agree that the Company
will meet certain relocation expenses and continuing allowances
as appropriate. Additionally, in the case of any Executive Director
being recruited from overseas, or being recruited by the
Company to relocate overseas to perform their duties, the
Committee may offer expatriate benefits on an ongoing basis
subject to their aggregate value to the individual not exceeding
50% of salary per annum.
For an internal Executive Director appointment, any variable
pay element awarded in respect of the prior role may be allowed
to pay out according to its terms, adjusted as relevant to take
into account the appointment. In addition, any other ongoing
remuneration obligations existing prior to appointment may
continue. If a new Chair or Non-Executive Director is appointed,
remuneration arrangements will be in line with those detailed
in the Remuneration Policy for Non-Executive Directors set
out in the Remuneration Policy for Directors.
Service contracts for Executive Directors
The service agreements of the Executive Directors are not fixed
term and are terminable by either the Company or the Director
on 12 months’ notice and make provision, at the Board’s
discretion, for early termination by way of payment of salary and
pension contributions in lieu of 12 months’ notice. In calculating
£’000
8,000
8,500
7,500
7,000
6,500
6,000
5,500
4,500
5,000
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
£8,351
58%
£6,724
49%
LTIP award
Minimum
On-target
A Lacroix, Chief Executive Officer
C Deasy, Chief Financial Officer
Maximum 2
Maximum
Minimum
On-target
Maximum 2
Maximum
41%
26%
32%
32%
59%
33%
100%
32%
16%
32%
19%
100%
36%
8%
39%
39%
22%
£1,302
£4,013
£563
£1,587
£2,611
£3,123
27 %
Annual incentive
Basic salary, benefits and pension
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the amount payable to a Director on termination of employment,
the Board would take into account the commercial interests
of the Company and apply usual common law and contractual
principles. Any payments in lieu of notice may be paid in a lump
sum or may be paid in instalments and reduce if the Director
finds alternative employment. The service contracts are
available for inspection at the Company’s registered office.
The Committee reviews the contractual terms for new
Executive Directors to ensure these reflect best practice.
In summary, the contractual provisions are:
Value of remuneration packages at different levels of performance
Points relating to the above table:
1.
Salary levels are based on those applying on 1 April 2025.
2.
The value of taxable benefits is based on the cost of supplying those benefits (as disclosed) for the year ended 31 December 2024.
3.
The value of pension receivable in 2025 by the CEO is taken to be 10% of salary until 1 June 2025 and 5% thereafter, and for the CFO taken to be 5% of salary.
4.
The on-target level of annual incentive is taken to be 50% of the maximum opportunity.
5.
The on-target level of the LTIP is taken to be 50% of the face value of the Core Award at grant. Given the degree of stretch in the performance targets applying to the Enhanced Awards, none of these awards are
assumed to deliver value in an on-target scenario.
6.
Share price movement and dividend accrual have not been incorporated into the first three scenarios. Share price growth of 50% has been assumed on the LTIP in the Maximum 2 scenario.
Provision
Detailed terms
Notice period
12 months
Common law and
Common law and contractual principles
contractual
apply
principles
Remuneration
An incentive may be payable (pro rata
entitlements
where relevant) and outstanding Share
Awards may vest (see below)
Change of control
No Executive Director’s contract contains
provisions or additional payments in
respect of change of control. The
treatment of annual incentive awards and
outstanding Share Awards will be treated
in line with the relevant plan rules
There is no automatic entitlement to an annual incentive award
in the year of cessation of employment. The Committee may,
however, determine that for certain leavers an annual incentive
award may be payable with respect to the period of the financial
year served.
Any share-based entitlements granted to an Executive Director
under the Company’s share plans will be determined based on
the relevant plan rules.
The default treatment under the 2021 LTIP is that any
outstanding awards lapse on cessation of employment.
However, in certain prescribed circumstances, such as death,
ill-health, injury, disability or other circumstances at the
discretion of the Committee, ‘good leaver’ status may be applied.
For good leavers, Deferred Share awards will vest in full on the
original vesting date (as permitted under the plan rules), unless
the Remuneration Committee determines that awards should
vest at an earlier date. LTIP awards will normally vest on the
original vesting date and be subject to any holding period,
and subject to the satisfaction of the relevant performance
conditions at that time and reduced pro rata to reflect the
proportion of the performance period actually served. They will
normally, where appropriate be subject to any holding period.
However, the Committee has discretion to determine that
awards vest at an earlier date and/or to disapply time pro-rating,
although it is envisaged that this would only be applied in
exceptional circumstances (for example, death). Any such
incidents, where discretion is applied by the Committee in
relation to Executive Directors, will be disclosed in the following
Annual Report on Remuneration.
In determining whether an Executive Director should be treated
as a good leaver or not, the Committee will take into account the
reasons for their departure.
The Committee reserves the right to make any other payments
(including appropriate legal fees) in connection with an
Executive Director’s cessation of office or employment where
the payments are made in good faith on discharge of an existing
legal obligation (or by way of damages for breach of their
obligation) or by way of settlement of any claim arising in
contravention with the cessation of an Executive Director’s
office or employment.
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Letters of appointment for Non-Executive Directors
The letter of appointment for each Non-Executive Director
states that they are appointed for an initial period of three years
and all appointments are terminable by one month’s notice on
either side. At the end of the initial period and after rigorous
review, the appointment may be renewed for a further period,
usually three years, if the Company and the Director agree and
subject to annual re-election at the AGM. Each letter of
appointment states that if the Company were to terminate
the appointment, the Director would not be entitled to any
compensation for loss of office.
The table below sets out the terms for all the current
Non-Executive Directors of the Board.
Consideration of employment conditions
elsewhere within the Group
When setting the Remuneration Policy for Executive Directors,
the Remuneration Committee takes into account the pay and
employment conditions elsewhere within the Group. When
considering the remuneration arrangements for the Executive
Directors for the year ahead, the Committee is informed of salary
increases across the wider Group. The Committee also approves
the overall reward strategy in operation across the Group.
Date of appointment
Notice period/Unexpired term
as at 31 December 2024
Andrew Martin
26 May 2016 becoming Chair on 1 January 2021
Reappointed: 26 May 2022
One month/5 months
Graham Allan
1 October 2017
Reappointed: 1 October 2023
One month/21months
Gurnek Bains
1 July 2017
Reappointed: 1 July 2023
One month/18 months
Lynda Clarizio
1 March 2021
Reappointed: 1 March 2024
One month/26 months
Tamara Ingram
18 December 2020
Reappointed: 18 December 2023
One month/23 months
Jez Maiden
26 May 2022
One month/5 months
Kawal Preet
31 December 2022
One month/12 months
Apurvi Sheth
1 September 2023
One month/20 months
Jean-Michel Valette
1 July 2017
Reappointed: 1 July 2023
One month/18 months
Steve Mogford
1 January 2025
One month/36 months
commenced on appointment
The remuneration strategy set out at the beginning of the
Directors’ Remuneration Policy report reflects the strategy
in place across the Group for all employees. Although this
remuneration strategy applies across the Group, given the size
of the Group and the geographic spread of its operations, the
way in which the Remuneration Policy is implemented varies
across the Group. For example, annual incentive deferral applies
at the more senior levels within the Group and participation in
the LTIP is at the Remuneration Committee’s discretion and is
typically limited to senior executives employed within the Group.
Given the geographic spread of the Group’s operations, the
Remuneration Committee does not consider it appropriate to
consult employees on the Remuneration Policy in operation
for Executive Directors.
Consideration of shareholder views
The Committee values the opportunity to engage in meaningful
dialogue with its investors. As outlined in the Remuneration
Committee Chair’s letter, an extensive consultation process
about this Remuneration Policy was undertaken with our top
40 shareholders (covering circa 60% of our shareholder register)
and three proxy advisory bodies.
Legacy arrangements
The approved Directors’ Remuneration Policy provides authority
to the Company to honour any commitments entered into with
current or former Directors such as the vesting of outstanding
share awards (including exercising any discretions available
to it in connection with such commitments) that were agreed:
(i) before the policy set out above, or any previous policy, came
into effect;
(ii) at a time when a previous policy approved by shareholders
was in place provided that the payment is in line with the
terms of that policy; and
(iii) at a time when the relevant individual was not a Director
of the Company and the payment was not in consideration
for the individual becoming a Director of the Company.
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Annual Report on Remuneration
Committee membership and meeting attendance1
Committee members
Member since
Meetings
attended2
Gill Rider (Chair)
Chair and member from
July 2015 until May 2024
2/2
Graham Allan (Chair)
Member from October
2017. Chair from May
2024
4/4
Gurnek Bains
January 2018
4/4
Tamara Ingram
July 2021
4/4
Kawal Preet
May 2024
2/2
1.
The Group Company Secretary acts as Secretary to the Committee.
2.
Number of meetings attended out of the number of meetings eligible to attend in the year.
Throughout 2024 and at all times the composition of the
Committee was compliant with the Code. All members are
independent Non-Executive Directors. The Chair Gill Rider stood
down from the Committee on 24 May 2024 and was replaced by
Graham Allan who, prior to becoming Chair, had been a member
of the Remuneration Committee since October 2017. The
Nomination Committee was therefore able to recommend
his appointment as Chair of the Committee which was then
approved by the Board. Kawal Preet was additionally appointed
to the Committee with effect from 24 May 2024.
On appointment, new Committee members receive an appropriate
induction consisting of meetings with senior personnel, advisers
and as appropriate, meetings with shareholders and other
relevant stakeholders. They also review the Terms of Reference,
previous Committee meeting papers and minutes.
The Committee met regularly during the year and invites the
Chair, CEO and the EVP Human Resources to attend meetings
when it deems appropriate, except when their own remuneration
is discussed. In addition to the four scheduled meetings the
Committee met on four additional occasions to discuss the
feedback from shareholders as part of the extensive
consultation on the Remuneration Policy.
No Director is present whilst their own remuneration is
determined. None of the Committee members has had any
personal financial interest, except as shareholders, in the
decisions made by the Committee.
Committee responsibilities and how we met them in the year
We have specific responsibilities reserved to us by the Board and the full Terms of Reference of the Committee, which are reviewed
annually, can be found on our website at intertek.com.
Matters delegated to the Committee
2018 Code
provision
Determines the Company’s policy on remuneration for the Executive Directors and senior executive management.
33, 36–40
Determines the remuneration for the above and the Chair, including any compensation on termination of office.
33
Reviews the remuneration arrangements for the wider employee population and considers issues relating
to remuneration that may have a significant impact on the Group.
33
Provides advice to, and consults with, the CEO on major policy issues affecting the remuneration of other
executives.
33
Responsible for establishing the selection criteria, selecting, appointing and setting the terms of reference
for any remuneration consultants who advise the Committee.
35
Keeps the Remuneration Policy under review in light of regulatory and best practice developments and
shareholder expectations and ensures that the Remuneration Policy is voted on at least every third year. Due
regard is given to the interests of shareholders and the requirements of the Listing Rules and associated guidance.
36–40
Ensures each year that the Annual Directors' Report on Remuneration is put to shareholders for approval at the
AGM and includes a description of the work of the Committee.
41
Executive Director remuneration
We are responsible for determining the Company’s policy on
the remuneration of the Chair, the Executive Directors and
senior executive management. We also determine their
remuneration packages, including any compensation on
termination of office, and ensure alignment with our culture
and with policies for the workforce as a whole.
In the year, we addressed this by reviewing and agreeing the
remuneration of the Executive Directors as well as the Group
Executive Committee. We received advice from Deloitte LLP
(‘Deloitte’) to inform our discussions.
Wider workforce remuneration and engagement
We also review the remuneration and related policies of the
wider workforce to ensure that incentives and rewards align
to our Purpose, Values and culture. As part of this review,
we receive information on salary increases, on the design of
the bonus and targets and on the 2021 Long Term Incentive
Plan and performance criteria. This is used to inform decisions
when setting the policy for Executive Director remuneration
and for counsel to, the CEO on major policy issues affecting
the remuneration of other executives.
The remuneration framework and the incentive structure that we
have in place cascades down through the wider workforce and
ensures alignment with executive remuneration and the Intertek
AAA differentiated growth strategy. We also took into account
the UK wider workforce salary increase when determining the
2025 salary increase for the Executive Directors.
We ensure that we have effective engagement with the wider
workforce on the Group’s remuneration and related policies
through various escalation processes and communication
forums including townhalls, WhatsIn, emails and leadership
briefings. The regular townhalls that take place across the Group
provide an opportunity for our people to raise questions on
remuneration, with feedback directly fed to senior management
and then upwards.
During the year, we reviewed the salary levels for senior
management and the determination of the annual incentive
payments and long-term incentive outcome for 2024. We
considered a report on the general market trends that could
impact the Group.
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Remuneration Policy and report
It is important that we keep the Remuneration Policy under
review in light of regulatory and best practice developments,
Listing Rules and Governance Code changes as well as
shareholder expectations.
We annually undertake a review of the Directors’ Remuneration
report to ensure compliance with Remuneration Reporting
Regulations. We also discussed the 2024 proxy voting agencies'
reports and their recommendations issued prior to the 2024 AGM.
We received updates on market trends in remuneration from
Deloitte and regular updates on corporate governance and
policy changes.
Incentives
A key task for us each year is to review the outcomes for the
incentive schemes and agree on payment levels taking into
account actual performance and any extraordinary events which
may have impacted on performance. We will consider if there is a
need to apply malus or clawback and, should there be, we would
agree the quantum.
We undertook, with external advice, a thorough review of the
2024 annual incentive targets, performance measures and the
EPS, adjusted free cash flow and ROIC results to determine the
percentage of incentive awards that would vest in 2024, which
was 100%.
We also agreed the performance conditions that should apply
to the LTIP awards granted in the year to vest based on the
performance to the end of 2026. We reviewed the quantum
of awards given and were satisfied that they reflected the
Remuneration Policy and were appropriate.
Committee review
We undertake an annual review of how effectively we are
working as a committee and take steps to develop any areas
identified for improvement.
The Committee review was conducted as part of the external
Board performance review for 2024. The results were discussed
and demonstrated that the Committee operated effectively
during the year.
Advisers
To ensure that the Group’s remuneration practices drive and
support achievement of strategies and are market competitive,
the Committee obtains advice from various independent sources.
We review the appointment of the remuneration consultant and
consider if they remain independent and applicable for the needs
of the Committee. In the event that we decide that they are no
longer appropriate, we would arrange a review and any
subsequent appointment.
In 2024, the Committee received advice from Deloitte, who were
appointed in 2015 for their particular expertise both at a local
and global level, due to the worldwide operations of the Group
and, following review, the Committee remains satisfied that their
advice is objective and independent and has sufficient breadth
of knowledge to support our deliberations across the Group as
a whole. Deloitte are members of the Remuneration Consultants
Group and adhere to the voluntary Code of Conduct in relation
to executive remuneration consulting in the UK.
The fees paid to Deloitte in the year were £126,025 exclusive
of VAT. The charges for services are calculated on the basis of
time spent and the seniority of the personnel performing the
work at their respective rates.
In addition to the services provided to the Committee,
Deloitte provided a range of tax, financial and other advisory
services during the year. Deloitte have no connection with
any Directors of the Company.
External appointments
The Company recognises that, during their employment with
the Company, Executive Directors may be invited to become
Non-Executive Directors of other companies and that such
duties can broaden their experience and knowledge. Executive
Directors may, with the written consent of the Company, accept
such appointments outside the Company, and the policy is that
any fees may be retained by the Director. No Executive Director
currently has an external appointment.
Statement of shareholder voting
At the AGM held on 24 May 2024, a resolution was proposed
to shareholders to approve the Remuneration Policy. This
resolution received the following votes from shareholders:
Votes
%
In favour
119,886,675
92.54
Against
9,660,205
7.46
Total
129,546,880
80.271
Withheld
223,539
1.
Percentage of total issued share capital voted.
At the 2024 AGM, a resolution was proposed to shareholders to
approve the Directors’ Remuneration report for the year ended
31 December 2023. This resolution received the following votes
from shareholders:
Votes
%
In favour
121,021,621
93.27
Against
8,727,757
6.73
Total
129,749,378
80.391
Withheld
21,041
1.
Percentage of total issued share capital voted.
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Directors’ Remuneration Policy – implementation in 2025
Elements
Implementation in 2025
Base salary
Base salary for 2025:
André Lacroix: £1,084,330.
Colm Deasy: £512,000.
The Committee has awarded the CEO and the CFO a 2.4% salary increase, which is in line the wider UK workforce yearly increase of 2.4%.
Benefits
Includes, for example, annual medicals, life assurance cover of up to six times base salary, allowances in lieu of a company car or other benefits, private medical insurance and other benefits typically provided to
senior executives. Executive Directors can participate in any all-employee share plans operated by the Company on the same basis as all other employees.
Pension
For the CEO, reducing from 10% to 5% of base salary from 1 June 2025, in line with the wider UK workforce. 5% of base salary for the CFO.
Annual Incentive
Plan (‘AIP’)
Long Term Incentive
Plan (‘LTIP’)
• Maximum opportunity for the CEO and CFO: 200% of base salary.
• 50% of any incentive is paid in cash and 50% is deferred into shares vesting after three years.
• Malus and clawback provisions apply in line with Intertek's Group Performance Adjustment Policy.
• Performance metrics – based on a 70% matrix of revenue and adjusted operating profit growth, 15% ROIC and 15% ESG, based on Carbon Emissions. Targets are not disclosed prospectively due to commercial
sensitivity, however, detailed disclosure of the performance targets and actual out-turns will be provided in the following year.
• Annual incentive will continue to be subject to a quality of earnings review at the end of the year to ensure that payouts are appropriate based on the underlying performance of the Group and to ensure that
any awards are commensurate with the Group’s culture and Values.
As set out in the table below, the ROIC targets are set taking into account the stretch within the business plan and current ROIC performance. The change in the target range relative to prior years reflects the level of
invested capital at work within the business, which has increased in recent years through the Group’s strategy of making bolt-on acquisitions which complement the Group’s business (including the 2024 acquisition of Base
Met Labs). The Committee believes that the proposed target range for ROIC (and the wider financial metrics in the LTIP) are appropriately stretching relative to the business plan and external forecasts of performance.
• Core Awards maximum opportunity for the CEO and CFO: 300% and 200% of base salary, respectively. Enhanced Awards maximum opportunity for the CEO and CFO: 300% each of base salary.
• Two-year holding period after vesting.
• Malus and clawback provisions apply.
• Performance metrics for awards being granted in 2025:
Core Awards
Measures
Definition
Threshold
(25%)
Maximum
(100%)
Commentary
Earnings Per Share
(‘EPS’) (1/3)
Annualised fully diluted, adjusted EPS growth.
Measured on a constant currency basis.
Per the definition used for the Group’s KPIs on page 1.31 in
Report 1.
4.0% p.a.
10% p.a.
Compound annual growth rate targets.
Adjusted Free
Cash Flow (1/3)
Free cash flow generated from operations less net capital
expenditure, net interest paid and income tax paid. Adjusted
for separately disclosed items.
Measured on a constant currency basis.
Per the definition used on page 1.31 in Report 1.
£1,297m
£1,377m
Cumulative targets measured over three years.
Targets set taking into account stretch within business plan and expected capital
expenditure over the coming three years.
Return on
Invested Capital
(‘ROIC’) (1/3)
Adjusted operating profits less adjusted tax divided by invested
capital (net assets excluding tax balances, net financial debt
and net pension assets/liabilities).
Measured on a constant currency basis.
Per the definition used for the Group’s KPIs on page 1.31 in
Report 1.
20.3%
24.3%
Average of adjusted operating profits divided by cumulative invested capital in each of
the three performance years.
Target set taking into account stretch within business plan, current ROIC performance,
and reflective of the Group’s strategy of making small bolt-on acquisitions which
complement the Group’s business.
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Elements
Implementation in 2025
Enhanced Awards – subject to AGM approval
Measures
Earnings Per Share
(‘EPS’)
100% of award
Definition
Same definition as per the Core Award table
Threshold
(15%)
10.5% p.a.
Maximum
(100%)
14.5% p.a.
Commentary
Compound annual growth rate targets.
Targets set above targets for Core Awards.
Any vesting is subject to achieving both Qualifiers
Qualifier Targets
Adjusted Free
Same definition as per the Core Award table
£1,397m
above maximum Cumulative performance measured over three years.
Cash Flow
of Core Award
Target set taking into account stretch within business plan and expected capital
range
expenditure over the coming three years.
Return on
Same definition as per the Core Award table
22.3%
midpoint of Core Average of adjusted operating profits divided by cumulative invested capital in each of
Invested Capital
Award range
the three performance years.
(‘ROIC’)
Target set taking into account stretch within business plan, current ROIC performance,
and reflective of the Group’s strategy of making small bolt-on acquisitions which
complement the Group’s business.
Share ownership
guidelines
Shareholding guidelines are 500% of salary for the CEO and 300% of salary for the CFO. A post-cessation holding equivalent to the lower of the guideline target or the number of shares held at the date of
departure will be required to be held for a period of two years from the Executive's departure date.
Non-Executive Directors’ fees
Fees for the Chair are determined by the Remuneration Committee and fees for the Non-Executive Directors are determined by the Board (excluding the Non-Executive Directors). In both cases, a range of factors are taken into
account including the responsibilities and time commitment to the Group's affairs associated with individual roles and appropriate market comparisons. Following the most recent review, fees were adjusted for 2025 as set out
in the table below. This is the first increase to the Chair's fee since 2021 and the first increase to the Non-Executive Directors' fees since 2018.
Board membership
From
1 April
2025
£’000
From
1 January
2024
£’000
Chair
420
350
Non-Executive Director
75
62
Senior Independent Non-Executive Director
19
12
Committee membership
Chair Audit Committee
20
20
Chair Remuneration Committee
20
15
Chair Nomination Committee
–
–
Member Audit Committee
10
10
Member Remuneration Committee
10
10
Member Nomination Committee
5
5
Included in the fees shown in the table above, and pursuant to the policy of aligning Directors’ interests with those of shareholders, £10,000 of the fees paid to the Non-Executive Directors and £35,000 of the fees paid to the
Chair are used each year to purchase shares in the Company.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Illustrative framework for considering if discretion should be applied
Attracts the most external attention – Committee to consider
– Has single-figure increased/decreased year-on-year?
– Does this change mirror the trend in performance?
Starting point – no adjustment in normal circumstances
How has the company performed more widely?
This includes performance against KPIs which
are not in the incentive scorecards
Further reference point, rather than a key
driver for decision making
Committee will want to consider TSR performance in both:
– Relative terms
– Absolute terms
Are there any other events (e.g. reputational, risk related, etc.)
that have occurred that the Committee considers should be
factored in?
Are there any other factors which the Committee should take
into account when making the assessment of performance?
The Committee may also want to reflect on how
the market is likely to respond to the preliminary results
In the context of overall business performance and
the shareholder experience, the Committee needs
to determine an appropriate fair outcome.
This is ultimately a matter of judgement.
What is formulaic
result?
What is the single
figure outcome?
How does the vesting
outcome compare with the
shareholder experience?
How does the vesting
outcome compare with overall
business performance?
Are there any one-off/
exceptional events that
should be factored in?
Are the bonus/LTI
outcomes consistent?
Input from other
Committees?
Consider shareholder
response to results
What would represent
a fair vesting outcome?
Internal documentation
Demonstrate that a robust process is suitably captured
External reporting – Directors' Remuneration Report
Remuneration Committee papers/pre-reading material
Process the Committee followed
Link to other relevant Committee/Board papers
Whether discretion has been applied or not
Minutes of the meeting
Level of adjustment
Reason for adjustment
If discretion has been applied
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Remuneration in context
The following section sets out how the Remuneration Committee has addressed the factors in Provision 40, when determining Executive remuneration as set out in the 2018 UK Corporate Governance Code.
Code requirement
Intertek approach
Clarity
Remuneration arrangements should be transparent
Variable remuneration arrangements, which are cascaded throughout the workforce, are based on clearly defined performance metrics which are aligned with the
and promote effective engagement with
Group’s AAA differentiated growth strategy for sustainable long-term growth.
shareholders and the workforce
Simplicity
Remuneration structures should avoid complexity
Remuneration arrangements are simple, comprising the following key elements, which are consistent from Executive Directors to front line workforce where
and their rationale and operation should be easy
appropriate:
to understand
• Fixed element: comprises base salary, benefits and pension, which are aligned to that offered to the majority of the workforce.
• Short-term incentive: annual bonus which incentivises the delivery of financial and non-financial performance metrics linked to ESG. Half of the bonus is paid
in cash with the balance deferred into shares vesting after a period of three years.
• Long-term incentive: LTIP which incentivises financial performance over a three-year period, promoting long-term sustainable value creation for shareholders.
Awards are subject to a two-year holding period post-vesting.
Risk
Remuneration structures should ensure
Performance targets are calibrated to be aligned with the Group’s business plan which is set in line with the Group’s risk framework.
reputational and other risks from excessive rewards,
The Remuneration Committee retains the flexibility to review formulaic outcomes to ensure that they are appropriate in the context of overall performance of the
and behavioural risks that can arise from target-
based incentive plans, are identified and mitigated
Group, including risk.
Predictability
The range of possible values of rewards to individual
The remuneration scenario charts, set out on page 2.108, provide estimates on the potential future reward opportunity in a range of scenarios, including below
Directors and any other limits or discretions should
threshold, target and maximum performance (including share price appreciation).
be identified and explained at the time of approving
the Policy
Proportionality
The link between individual awards, the delivery
Variable remuneration is directly aligned to the Group’s strategic priorities (through the selection of key financial performance metrics), with payments calibrated
of strategy and the long-term performance of the
to ensure that payments are only made where strong performance is delivered.
Company should be clear and outcomes should not
As noted above, the Remuneration Committee retains the flexibility to review formulaic outcomes to ensure that they are appropriate in the context of the overall
reward poor performance
performance of the Group.
Alignment with culture
Incentive schemes should drive behaviours
As set out on page 2.102, the Remuneration Policy at Intertek has been set to be appropriate for the nature, size and complexity of the Group, encourages our
consistent with the Company’s Purpose, Values
employees in the development of their careers, is aligned with the Company’s strategy and is in the best interests of the Company and its stakeholders.
and strategy
It is directed to deliver continued sustainable profitable growth.
Our remuneration strategy is to: align and recognise the individual’s contribution to help us succeed in achieving our AAA differentiated growth strategy; attract,
engage, motivate and retain the best available people by positioning total pay and benefits to be competitive in the relevant market and in line with the ability of the
business to pay; reward people equitably for the size of their responsibilities and performance; and motivate high performers to increase shareholder value and share
in the Group’s success through well designed and appropriately calibrated incentive schemes.
Intertek Group plc
Annual Report & Accounts 2024
2.116
Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
The sections that have been audited are indicated as such on pages 2.116-2.124. The independent auditors’ report can be found on pages 3.57-3.63 in Report 3.
Directors’ remuneration earned in 2024 (audited)
The table below and on the following page summarise Directors’ remuneration received for 2024 and the prior year for comparison. Taken in the context of internal and external comparators, the Committee considered the
Executive Directors' remuneration to be appropriate.
Executive Directors
Base salary or
fees
£’000
Benefits1
£’000
Annual incentive2
£’000
Long–term
incentives
£’000
Pension5
£’000
Total
£’000
Total fixed
£’000
Total variable
£’000
André Lacroix
2024
1,051
138
2,025
3,1233
127
6,464
1,316
5,148
2023
1,023
120
1,417
2,9404
175
5,675
1,318
4,357
Colm Deasy
2024
481
25
956
–
22
1,484
528
956
20236
338
16
466
–
15
835
369
466
1.
Benefits include allowances in lieu of company car, annual medicals, life assurance, private medical insurance, BIK arising from the performance of duties, and the use of a car and driver for the CEO (gross £40,958, net £22,527).
2.
This relates to the payment of the annual incentive and Deferred Share Award for the financial year-end. Further details of this payment are set out on the following pages.
3.
This relates to the 2022 LTIP award due to vest in March 2025. The value shown is based on the share price of £47.6895 which was the average mid-market share price in the fourth quarter of 2024. Further details on performance are set out on page 2.119. There was no discretion exercised in respect of the awards.
4.
This relates to the 2021 LTIP award which vested in 2024 where the performance outcome gave rise to 100% vesting. This figure has been updated to show the actual value of the vested LTIP award based on the share price of £50.08, whilst the 2023 Annual Report included figures based on the share price for
the final quarter of 2023 (£40.11). There was no discretion exercised in respect of the awards.
5.
None of the Executive Directors had a prospective entitlement to a defined benefit pension.
6.
This relates to the period from 17 March 2023 when Colm Deasy was appointed as a director.
Intertek Group plc
Annual Report & Accounts 2024
2.117
Remuneration Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Non-Executive Directors
Base salary or
fees1
£’000
Benefits2
£’000
Total
£’000
Andrew Martin
2024
350
11
361
2023
350
9
359
Graham Allan
2024
92
–
92
2023
89
–
89
Gurnek Bains
2024
77
–
77
2023
77
–
77
Lynda Clarizio
2024
72
13
85
2023
72
5
77
Tamara Ingram
2024
77
–
77
2023
77
–
77
Jez Maiden
2024
72
9
81
2023
72
2
74
Kawal Preet
2024
68
7
75
2023
62
5
67
Gill Rider
20243
41
2
43
2023
87
1
88
Apurvi Sheth
2024
68
8
76
20234
17
1
18
Jean-Michel Valette
2024
82
13
95
2023
82
4
86
1.
Pursuant to the policy of aligning Directors’ interests with those of shareholders, the fees shown as being paid to the Non-Executive Directors include £10,000 used to purchase shares and the fee paid to the Chair includes £35,000 used to purchase shares.
2.
Certain expenses relating to ensuring that the Directors were in a position to undertake the performance of their duties such as travel to and from Company meetings, related accommodation and completion of UK tax returns for overseas Directors have been classified as taxable. In such cases, the Company
will ensure that the Director is not out of pocket by settling the related tax via the PSA. In line with current regulations, these taxable benefits have been disclosed and are shown in the Benefits column and the figures shown are the cost of the taxable benefit. With respect to the Non-Executive Directors no
other benefits are provided.
3.
The fees shown for Gill Rider relate to the period to 24 May 2024, the date she stepped down from the Board.
4. The fees shown for Apurvi Sheth relate to the period from 01 September 2023, the date she was appointed to the Board.
Intertek Group plc
Annual Report & Accounts 2024
2.118
Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Annual incentive (audited)
The annual incentive for 2024 was:
• 70% based on a matrix of revenue and adjusted operating profit growth;
• 15% based on return on invested capital (‘ROIC’); and
• 15% based on a Carbon Emissions target.
Overview of the matrix (70% of the award)
Adjusted operating profit performance (£m)
Below threshold
Threshold
Target
Maximum
Revenue performance (£m)
Maximum
0%
40%
65%
100%
Target
0%
30%
50%
75%
Threshold
0%
25%
35%
60%
Below threshold
0%
0%
0%
0%
Straight-line payouts occur between each of the points above threshold noted above.
The Company’s performance resulted in a Group annual incentive payout of 95.61% of maximum opportunity. Performance of individual components is shown below.
2024 Company performance against annual incentive targets (at 2023 constant currency)
Financial measures
Total external revenue1
Weighting
%
2024
Threshold
£3,377.4m
2024
Target2
£3,485.4m
2024
Maximum
£3,593.3m
2024
Actual
£3,580.5m
Achieved3
Weighted
achievement
Adjusted operating profit1
£554.0m
£585.7m
£617.4m
£611.7m
Revenue/profit matrix
70.0%
93.73%
65.61%
Return on Invested Capital4,6
15.0%
20.6%
20.8%
21.0%
22.4%
100.00%
15.00%
Carbon Emissions5,6,7
15.0%
180,410
176,873
173,336
153,807
100.00%
15.00%
Total
100.0%
95.61%
1.
Calculated on constant 2023 exchange rates and adjusted to exclude certain non-budgeted non-recurring items and Separately Disclosed Items.
2.
Target is equivalent to 50% payout.
3.
Percentage achieved against maximum targets.
4.
Return on Invested Capital as per definition used for the Group's KPIs on page 1.30 in Report 1.
5.
Operational market-based emissions in tonnes of carbon dioxide equivalent (tCO2e) as defined on page 1.31 in Report 1.
6.
Performance at threshold levels generates 25% outcome for both ROIC and Carbon Emissions.
7.
EY have issued an assurance statement in respect of Carbon Emissions disclosure that can be found on pages 1.74-1.75 in Report 1.
Intertek Group plc
Annual Report & Accounts 2024
2.119
Remuneration Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
For 2024, the annual incentive outturn in cash and shares is as follows:
Payable in cash
£’000
Deferred
Share Award1
£’000
Percentage
of maximum
%
André Lacroix
1,012.4
1,012.4
95.6
Colm Deasy
478.1
478.1
95.6
1.
These awards vest three years after the date of grant, subject to continued employment or good leaver status. The deferred award is based on 50% of the annual incentive outturn.
Vesting of LTIP Share Awards (audited)
The LTIP Share Awards granted in 2022 are subject to performance for the three-year period ended 31 December 2024.
The performance conditions attached to this award and actual performance against these conditions are as follows:
Metric
Earnings Per Share (1/3)
Performance condition
Annualised fully diluted, adjusted EPS growth. Measured on a constant currency basis.
Threshold
target1
4.0%
Stretch
target1
10.0%
Actual
performance
11.8%
Vesting level
100%
Adjusted Free Cash Flow (1/3)
Free cash flow generated from operations less net capital expenditure, net interest
paid and income tax paid. Adjusted for separately disclosed items. Measured on a
constant currency basis.
£899m
£979m
£1,216m
100%
Return on Invested Capital (1/3)
Adjusted operating profits less adjusted tax, divided by invested capital (net assets
excluding tax balances, net financial debt and net pension liabilities). Measured on a
constant currency basis.
16.5%
20.5%
22.0%
100%
Total vesting
100%
1.
25% of the LTIP share awards will vest at the threshold target and 100% will pay out at the stretch target.
2.
All LTIP shares that vest are subject to a further two year holding period.
Intertek Group plc
Annual Report & Accounts 2024
2.120
Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
The LTIP Share Awards granted in 2022 to the Executive Directors were as follows:
Executive Director
Number of shares
at grant
Number of shares
based on accrued
dividends
Total number of
shares
Number of shares
to lapse
Number of shares
to vest
Value of vested
shares
£’0001
André Lacroix
60,794
4,693
65,487
–
65,487
3,123
Colm Deasy2
–
–
–
–
–
–
Total
60,794
4,693
65,487
–
65,487
3,123
1.
The value of shares vested is calculated using the average mid-market share price in the fourth quarter of 2024 which was £47.6895.
2.
Appointed as an Executive Director on 17 March 2023.
The Committee considered the LTIP out-turns in the context of the underlying financial performance of the Group and determined it was appropriate not to exercise its discretion. There was no share appreciation on the shares
which vested below their award price.
LTIP Share Awards granted during the year (audited)
The following LTIP Share Awards were granted to the Executive Directors during 2024:
Executive Director
Type of award
Date of award
Basis of award
granted
Award price
£
Number of shares
over which award
was granted
Face value
of award
£’000
% of face value
that would vest
at threshold
performance
Vesting
determined by
performance over
André Lacroix
LTIP Share Award
13 March 2024
300% of salary
49.808
61,922
3,084
25%
Three years to
Colm Deasy
LTIP Share Award
13 March 2024
200% of salary
49.808
17, 0 65
850
25%
31 December
LTIP Share Award
5 June 2024
200% of salary
48.048
3,121
150
25%
2026
The LTIP Share Awards granted in 2024 are conditional share awards subject to performance for the three-year period ending 31 December 2026. Shares are granted at the average of the mid-market quotation price for the
five days up to and including the day immediately before grant.
The performance conditions attached to this award and the targets are as follows:
Metric
Earnings Per Share (1/3)
Performance condition
Annualised fully diluted, adjusted EPS growth over a three year performance period, calculated on a constant currency basis
and per the EPS definition used for the Group’s KPIs in the 2024 Annual Report & Accounts.
Threshold target
4%
Maximum target
10%
Return on Invested Capital (1/3)
Adjusted operating profits less adjusted tax over the three-year period ended 31 December 2026. Invested capital will be the
total of the year end invested capital base in each of the three years of the LTIP calculation period.
18.6%
22.6%
Adjusted Free Cash Flow (1/3)
Free cash flow is the cash generated from operations less net capital expenditure, net interest paid and income tax paid.
Adjusted free cash flow adds back the cash outflow associated with SDI’s. This approach is consistent with the definition in
the 2024 Annual Report & Accounts.
£1,210m
£1,290m
Intertek Group plc
Annual Report & Accounts 2024
2.121
Remuneration Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Deferred Share Awards granted during the year (audited)
Executive Director
André Lacroix
Type of award
Deferred Share
Award
Date of award
13 March 2024
Basis of award
granted
Deferral of
2023 bonus
Award price
£
49.808
Number of shares
over which award
was granted
14,229
Face value
of award
£’000
709
Vesting date1
13 March 2027
Colm Deasy
Deferred Share
Deferral of
Award
13 March 2024
2023 bonus
49.808
4,961
247
13 March 2027
1.
Vesting date subject to continued employment or good leaver status.
Share Plan Awards (audited)
The table below shows the Directors’ interests in the Intertek Share Plans, all of which are restricted stock units (‘RSUs’):
Type of Award
31 December 2023
Number of shares
Granted in 2024
Number of shares
Award price1
£
Dividend accrued
in 20242
Vested in 2024
Number of shares
Lapsed in 2024
Number of shares
31 December 2024
Number of shares
Date of vesting
André Lacroix
2021
LTIP Share3,4
46,296
–
53.36
–
(46,296)
–
–
Mar 2024
Dividend
3,286
–
–
–
(3,286)
–
–
LTIP Share3,5
8,471
–
58.324
–
(8,471)
–
–
May 2024
Dividend
600
–
–
–
(600)
–
–
2022
LTIP Share3,6
60,794
–
48.762
–
–
–
60,794
Mar 2025
Dividend
3,107
–
–
1,586
–
–
4,693
Deferred Share6
17, 225
–
48.762
–
–
–
17, 225
Mar 2025
Dividend
878
–
–
448
–
–
1,326
2023
LTIP Share3,7
72,127
–
41.922
–
–
–
72,127
Mar 2026
Dividend
1,827
–
–
1,883
–
–
3,710
Deferred Share7
4,947
–
41.922
–
–
–
4,947
Mar 2026
Dividend
124
–
–
128
–
–
252
2024
LTIP Share3,9
–
61,922
49.808
–
–
–
61,922
Mar 2027
Dividend
–
–
–
1,616
–
–
1,616
Deferred Share9
–
14,229
49.808
–
–
–
14,229
Mar 2027
Dividend
–
–
–
371
–
–
371
Total
219,682
76,151
6,032
(58,653)
–
243,212
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Type of Award
31 December 2023
Number of shares
Granted in 2024
Number of shares
Award price1
£
Dividend accrued
in 2024
Vested in 2024
Number of shares
Lapsed in 2024
Number of shares
31 December 2024
Number of shares
Date of vesting
Colm Deasy11
2023
LTIP Share3,7
4,651
–
41.922
–
–
–
4,651
Mar 2026
Dividend
117
–
–
121
–
–
238
Deferred Share7
1,581
–
41.922
–
–
–
1,581
Mar 2026
Dividend
39
–
–
40
–
–
79
LTIP Share3,8
15,508
–
42.234
–
–
–
15,508
Jun 2026
Dividend
392
–
–
404
–
–
796
2024
LTIP Share3,9
–
17, 0 65
49.808
–
–
–
17, 0 65
Mar 2027
Dividend
–
–
–
445
–
–
445
Deferred Share9
–
4,961
49.808
–
–
–
4,961
Mar 2027
Dividend
–
–
–
128
–
–
128
LTIP Share3,10
–
3,121
48.048
–
–
–
3,121
Jun 2027
Dividend
–
–
–
81
–
–
81
Total
22,288
25,147
1,219
–
–
48,654
1.
Awards made are based on a share price obtained by averaging the closing share prices for the five dealing days before the date of grant.
2.
The dividend shares are accrued on the date the dividend is paid and determined using the closing market price of the shares on that date. The dividend accruals relate to Share Awards made in lieu of not receiving cash dividends during the vesting period.
3.
One-third of the LTIP Share Awards are subject to EPS, one-third on Return on Invested Capital and one-third on Adjusted Free Cash Flow. The LTIP shares will be subject to an additional two-year holding period post-vesting.
4. Awards vested on 12 March 2024, on which date the closing market price of shares was £50.08 , having been granted on 12 March 2021, on which date the closing market price was £53.06. Awards were made at a share price of £53.36 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
5. Awards vested on 27 May 2024, on which date the closing market price of shares was £50.40 , having been granted on 27 May 2021 on which date the closing market price was £54.82. Awards were made at a share price of £58.324 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
6. Awards will vest on 11 March 2025, subject to continued employment or good leaver status, having been granted on 11 March 2022 on which date the closing market price was £48.56. Awards were made at a share price of £48.762 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
7.
Awards will vest on 13 March 2026, subject to continued employment or good leaver status, having been granted on 13 March 2023 on which date the closing market price was £40.26. Awards were made at a share price of £41.922 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
8.
Awards will vest on 6 June 2026, subject to continued employment or good leaver status, having been granted on 6 June 2023 on which date the closing market price was £43.69. Awards were made at a share price of £42.234 being the share price obtained by averaging the closing share prices for the five dealing
days before the date of grant.
9. Awards will vest on 13 March 2027, subject to continued employment or good leaver status, having been granted on 13 March 2024 on which date the closing market price was £50.16. Awards were made at a share price of £49.808 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
10. Awards will vest on 5 June 2027, subject to continued employment or good leaver status, having been granted on 5 June 2024 on which date the closing market price was £49.34. Awards were made at a share price of £48.048 being the share price obtained by averaging the closing share prices for the five dealing
days before the date of grant.
11. Appointed as Director on 17 March 2023.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Malus and clawback (audited)
Malus and clawback will operate, in line with the Intertek Performance Adjustment policy, in respect of the
2021 Long Term Incentive Plan; the Intertek Deferred Share Plan; and Annual Incentive Plan. The reasons for
malus and clawback to be applied cover various circumstances including where there is reasonable evidence
of misbehaviour or material error, conduct considered gross misconduct, breach of any restrictive covenants
by participants, conduct which resulted in (a) significant loss(es) to the Company, failure to meet appropriate
standards of fitness and propriety, a material failure of management in the Company, a discovery of a material
misstatement in the audited consolidated accounts or the behaviour of a Director has a significant detrimental
impact on the reputation of the Group.
Clawback can be applied at any time during the clawback period, which is six years from the date of the
award unless extended by the Remuneration Committee prior to the expiry of the initial clawback period.
The Committee has the discretion to reduce annual incentive payments if it believes that short-term
performance has been achieved at the expense of the Group’s long-term future or vice versa. The Committee
also retains the discretion to reduce or reclaim payments if the performance achievements are subsequently
found to have been significantly misstated.
The committee did not use the malus or clawback provisions in the year under review.
Directors’ interests in ordinary shares (audited)
The interests of the Directors in the shares of the Company as at the year-end, or date of ceasing to be a Director, are set out below. Save as stated in this report, during the course of the year, no Director or any member of his
or her immediate family have any other interest in the ordinary share capital of the Company or any of its subsidiaries. None of the Non-Executive Directors have share options or share awards.
Beneficially
owned at
31 December
2023
Beneficially
owned at
31 December
2024 or on
ceasing to be a
Director1
Outstanding
LTIP Share
Awards2
Outstanding
Deferred
Shares3
Shareholding as
a % of salary4
Shareholding
Guideline met
André Lacroix5
495,044
526,129
194,843
36,401
2,349
Yes
Colm Deasy6
6,182
6,343
40,345
6,542
60
No
Andrew Martin
8,615
8,980
–
–
n/a
n/a
Graham Allan
2,719
2,837
–
–
n/a
n/a
Gurnek Bains
712
830
–
–
n/a
n/a
Lynda Clarizio
364
478
–
–
n/a
n/a
Tamara Ingram
355
469
–
–
n/a
n/a
Jez Maiden
390
504
–
–
n/a
n/a
Kawal Preet
140
254
–
–
n/a
n/a
Gill Rider 7
1,122
1,240
–
–
n/a
n/a
Apurvi Sheth
–
118
–
–
n/a
n/a
Jean-Michel Valette
10,730
10,847
–
–
n/a
n/a
1.
No changes in the above Directors’ interests have taken place between 31 December 2024 and 28 February 2025.
2.
Subject to performance conditions.
3.
Subject to continued employment or good leaver status.
4.
Calculated as the number of shares beneficially owned at 31 December 2024 based on a share price of £47.28 as at 31 December 2024, being the last trading day, and applied to the annual salary for 2024.
5.
Appointed 16 May 2015 with the guideline to hold 200% of base salary in shares by 16 May 2020. With effect from the AGM held on 26 May 2021, this was increased to 500% of base salary, which has been exceeded.
6.
Appointed 17 March 2023 with a guideline to hold 300% of base salary.
7.
As at 24 May 2024, the date she ceased to be a director of the Company.
Intertek Group plc
Annual Report & Accounts 2024
2.124
Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Percentage change in remuneration levels
The table below shows the average movement in salary and annual incentive for UK employees between the 2019/20, 2020/2021, the 2021/2022, the 2022/2023 and the 2023/2024 financial year-ends. The UK total
employee population has been chosen as a comparator, as the parent company (Intertek Group plc) does not have any employees apart from the Directors.
Post-employment share ownership requirements
In line with best practice on the post-cessation of employment shareholding guidelines, Executive Directors
are required to retain shares equivalent to the lower of their actual shareholding and in-employment
shareholding requirement for two years after ceasing employment with Intertek. These will be held in the
Company Nominee account with the date that the holding restriction falls away annotated on the account.
Payments to past Directors (audited)
Gill Rider stepped down from the Board on 24 May 2024. She received no compensation for loss of office
but received directors fee applicable for the period to 24 May 2024 when she was a director of the company.
Jonathan Timmis ceased to be a director on 17 March 2023. In line with the previously disclosed arrangements
agreed with Jonathan Timmis, he had pro-rated deferred shares vest in the year of 8,894 at a share price of
£49.48 of which tax was retained at the rate of 47% leaving 4,713 shares which were sold with proceeds from
sale amounting to £232,848.44. In addition he had 12,802 LTIP shares vest of which 6,017 were retained to
cover tax and 6,785 were transferred to the nominee account as they are subject to a further two year post
vest holding period. The vesting price of these shares was £49.48. The Remuneration Committee determined
a 2023 bonus pro-rated to 17 March 2023 of £153,733.63. Half the amount was paid in cash in March 2024
and 50% deferred into shares (which will vest after a period of three years). All deferred share awards are
subject to malus and clawback provisions.
Payments for loss of office (audited)
There were no payments for loss of office other than the payments described above.
Salary %
Annual Incentive %
Benefits%
2019/
2020
2020/
2021
2021/
2022
2022/
2023
2023/
2024
2019/
2020
2020/
2021
2021/
2022
2022/
2023
2023/
2024
2019/
2020
2020/
2021
2021/
2022
2022/
2023
2023/
2024
CEO (André Lacroix1)
1.0
1.4
1.5
2.0
2.7
(24.2)
n/a
(75.3)
241.4
42.9
(12.4)
(2.3)
8.2
(0.8)
15.0
CFO (from 17 March 2023) (Colm Deasy2)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Average based on Intertek’s UK employees3
3.2
n/a
4.1
3.4
0.4
(9.9)
n/a
n/a
15.8
(39.6)
n/a
n/a
n/a
n/a
n/a
Chair of the Board (from 1 Jan 2021) (Andrew Martin)
–
280.4
–
–
–
n/a
n/a
n/a
n/a
n/a
n/a
–
n/a
(10.0)
22.2
Graham Allan
–
–
–
–
3.4
n/a
n/a
n/a
n/a
n/a
–
–
–
–
–
Gurnek Bains
–
–
–
–
–
n/a
n/a
n/a
n/a
n/a
(100.0)
–
–
–
–
Lynda Clarizio (from 1 March 2021)
n/a
–
23.1
–
–
n/a
n/a
n/a
n/a
n/a
n/a
–
350.0
–
160
Tamara Ingram (from 18 Dec 2020)
n/a
32.5
11.8
2.8
–
n/a
n/a
n/a
n/a
n/a
n/a
–
–
–
–
Jez Maiden (from 26 May 2022)
n/a
n/a
n/a
n/a
–
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
350
Kawal Preet (from 31 December 2022)
n/a
n/a
n/a
n/a
9.7
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
40
Gill Rider (until 24 May 2024)
–
11.7
1.2
–
n/a
n/a
n/a
n/a
n/a
n/a
(63.5)
n/a
(100.0)
–
n/a
Apurvi Sheth (from 1 September 2023)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Jean-Michel Valette
–
13.9
–
–
–
n/a
n/a
n/a
n/a
n/a
(48.9)
(25.0)
180.0
–
225
1.
The percentage change for incentive and benefits for André Lacroix are based on actual amounts earned from 2019, 2020, 2021, 2022, 2023 and 2024. The overnight increase in April 2024 was 3.0%.
2.
Colm Deasy was appointed on 17 March 2023 as a director.
3.
The Intertek UK employee group has been selected as the most appropriate comparator group, due to the diverse nature of the Group’s global employee population.
Non-Executive Director fees are set in advance for all Non-Executive Directors and any changes in salary percentages reflect that one comparator year was not a full year, or the Non-Executive Director changed Committee roles and there was an adjustment to their fees to reflect this, or a general
increase in fees which would be reflected in the table on page 2.113. Any changes in the Benefits % column would reflect the benefits in kind occurred in the performance of their duties (e.g. expenses for accommodation, travel or meals) – whether there is a claim depends on where the meetings
are held in relation to where the Director's place of work is considered to be or where n/a is shown this indicates that the director was not in role for the full period and the preceding period.
Intertek Group plc
Annual Report & Accounts 2024
2.125
Remuneration Committee Report Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
CEO pay ratio
The following table sets out the CEO’s pay ratio, comparing
the CEO’s total remuneration against that of UK employees.
The table below shows the required information from 2019
through to 2024.
Method
25th
percentile
pay ratio
Median
pay ratio
75th
percentile
pay ratio
2024
CEO
Option B
214:1
168:1
113:1
2023
CEO1
Option B
195:1
139:1
98:1
CEO
Option B
112:1
89:1
57:1
2021
CEO
Option B
117:1
90:1
56:1
2020
CEO
Option B
94:1
72:1
50:1
2019
CEO
Option B
205:1
152:1
107:1
2022
1.
These ratios have been updated to reflect actual LTI vesting value in the single pay
figure.
The regulations also require the total pay and benefits and
the salary component of total pay to be set out as follows:
Base
salary
£
Total pay
and
benefits
£
CEO remuneration
1,051,206
6,463,649
UK employee 25th percentile
27,364
30,211
UK employee median
36,224
38,541
UK employee 75th percentile
48,922
56,983
In terms of reporting options, the Company chose option B, using
the most recent gender pay gap information to determine the
relevant employees at the 25th, 50th and 75th percentile to
compare to CEO pay, as that data was already available and is
used for other reporting purposes. It refers to gender pay data
as of 1 April 2024 and uses the single total figure methodology
for the identified individuals. The pay and benefits for the
employees at the quartiles are their total actual annual pay
and benefits as of 31 December 2024.
With regards to representativeness of the ratios, Intertek is a
very diverse employer and has employees in many UK locations.
Our employees have many different qualifications and are
working in and serving almost all major industries. As a
consequence, it is unlikely that there is any one single individual
whose pay and benefits are representative of Intertek UK as a
whole. Intertek has therefore also looked at the total pay of the
individuals immediately above and below the 25th, 50th and
75th percentile. Looking at the spread of resulting ratios, it was
decided that the ‘best equivalent’ would be the arithmetic mean
of the total pay of three individuals around each reporting point:
• For the three employees around the 25th percentile: Ratios
ranged from 202:1 to 240:1, with an arithmetic mean of 214:1.
• For the three employees around the 50th percentile: Ratios
ranged from 165:1 to 171:1, with an arithmetic mean of 168:1.
• For the three employees around the 75th percentile: Ratios
ranged from 99:1 to 128:1, with an arithmetic mean of 113:1.
When calculating total pay and rewards, no pay components
were omitted. The Company used the calculation methodology
as set out in the relevant regulations (The Companies
(Miscellaneous Reporting) Regulations 2018). For part-time
employees, their relevant pay and benefit components have
been adjusted to the equivalent full-time figure for the relevant
business. Full-time equivalent hours can vary across locations
and legal entities.
The pay ratio reflects how remuneration arrangements differ as
responsibility increases for more senior roles in the organisation,
including reflecting that an increased proportion is based on
performance-related variable pay and short-term based
incentives for more senior executives. The Committee is
therefore comfortable that the pay ratio reflects the pay
and progression policies at Intertek.
Relative importance of the spend on pay
The table below shows the movement in spend on staff
costs between the 2023 and 2024 financial years, compared
to dividends.
2024
£m
2023
£m
%
change
Staff costs1
1,492.4
1,450.2
2.9%
Dividends
206.1
176.3
16.9%
1.
Staff costs are shown at actual rates. At constant currency, staff costs increased by
7.5%, reflecting a 4.6% foreign exchange impact.
Performance graph
Consistent with prior years, the graph alongside shows the
TSR in respect of the Company over the last ten financial
years, compared with the TSR for the full FTSE 100 Index.
The FTSE 100 is selected as the comparator group as it is a
good representation of peer group companies and Intertek is
a constituent of the FTSE 100. TSR, reflecting the change in
the value of a share and dividends paid, can be represented
by the value of a notional £100 invested at the beginning of
a period and its change over that period.
0
50
100
150
200
250
300
350
Intertek Group
FTSE 100
2014 2015
2017 2018
2021 2022 2023 2024
2020
2019
2016
£
Intertek Group plc
Annual Report & Accounts 2024
2.126
Remuneration Committee Report Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
CEO total remuneration
The total remuneration figures for the CEO during each of the past ten financial years are shown in the table below. Consistent with the calculation methodology for the single figure for total remuneration, the total
remuneration figure includes the total annual incentive and Deferred Share Award based on that year’s performance and LTIP share awards based on the three-year performance period ending in the relevant year.
The annual incentive payout and LTIP award vesting level as a percentage of the maximum opportunity are also shown for each of these years.
W Hauser
2015
A Lacroix
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total remuneration £’000
876
1,824
5,4521
11,4171
6,223
4,986
2,470
3,048
3,080
5,6752
6,464
Annual incentive (%)
90.6
96.6
70.2
100.0
75.5
52.3
0.0
85.0
20.6
68.9
95.6
LTIP award vesting (%)
–
–
–
90.9
98.3
89.4
41.5
0.0
66.7
100.0
100.0
1. As reported in previous years, at the time of joining, the Company had bought out André’s existing share awards with his previous employer in two tranches of 91,575 and 91,574 shares vesting in 2016 and 2017, each at an award price of £28. The tranche that vested in 2017 vested at a share price of £42.95,
which represents an increase in our Company share price over the two years of over 53%. These awards were one-off awards and not part of his ongoing remuneration.
2.
This figure has been updated to show the actual value of the vested LTIP award based on the share price of £50.08, whilst the 2023 Annual Report included figures based on the share price for the final quarter of 2023 (£40.11). There was no discretion exercised in respect of the awards.
The graph below shows the total remuneration of the Intertek CEO over the ten-year period from 2015 to 2024.
2015 (WH)1
2015 (AL)2
2016
2017
2018
2020
2019
2021
2022
2023
2024
0
2,000
4,000
6,000
8,000
10,000
12,000
£’000
Mirror awards
LTIP (share price increase)4
LTIP (award share price)3
Annual incentive
Pension
Benefits
Salary
1.
Shows W Hauser remuneration based on period to 15 May 15
2.
Shows A Lacroix remuneration for the period from appointment as CEO on 6 May 15
3.
LTIP (award share price) shows the proportion of the LTIP value received which resulted from the share price on award date
4.
LTIP (share price increase) shows the proportion of the LTIP value received which resulted from increase in the share price over the vesting period
Approval of the Directors’ Remuneration report
The Directors’ Remuneration report, including both the Directors’ Remuneration Policy and the Annual report on remuneration, was approved by the Board on 3 March 2025.
Graham Allan
Chair of the Remuneration Committee
Intertek Group plc
Annual Report & Accounts 2024
2.127
3: Financial Report
1: Strategic Report
2: Sustainability Report
Other Disclosures
In accordance with the requirements of the Companies Act 2006
(‘Act’) and the Disclosure Guidance and Transparency Rules
(‘DTR’) of the Financial Conduct Authority (‘FCA’), the following
section describes the matters that are required for inclusion
in the Directors’ report and which have been approved by the
Board. Further details of matters required to be included in the
Directors’ report are incorporated by reference into this report
and set out below.
Annual Report & Accounts and compliance with UK Listing
Rule (‘UKLR’) UKLR 6.6.1 R
The Annual Report & Accounts is in a three report format:
Strategic Report – Report 1; Sustainability Report/Directors'
report – Report 2; and Financial Report – Report 3. The Board
has prepared a Strategic Report in Report 1 which provides
an overview of the development and performance of the
Company’s business together with any research and
development activities during the year ended 31 December
2024 and its position at the end of that year. The Strategic
Report additionally outlines any important events since the
end of the financial year and likely future developments in the
business of the Company and Group.
For the purposes of compliance with DTR 4.1.5 R (2) and DTR
4.1.8 R, the required content of the management report can be
found in the Strategic Report and this Directors’ report in Report 2,
including the sections of the Annual Report & Accounts, being
Reports 1, 2 and 3, incorporated by reference.
For the purposes of UKLR 6.6.4 R, the information required to be disclosed by UKLR 6.6.1 R can be found in the table below.
Topic
Location and page
1.
Amount of interest capitalised
Not applicable
2.
Any information required by UKLR 6.2.23 R (Publication of
unaudited financial information)
Not applicable
3.
Details of long-term incentive schemes
Directors’ Remuneration Committee
report (pages 2.94-2.126)
4.
Waiver of emoluments by a Director
Not applicable
5.
Waiver of future emoluments by a Director
Not applicable
6.
Non pre-emptive issues of equity for cash
Not applicable
7.
Information required by Topic 6 above for any unlisted major
subsidiary undertaking of the Company
Not applicable
8.
Company participation in a placing by a listed subsidiary
Not applicable
9.
Any contracts of significance
Other Disclosures (page 2.129)
10.
Any contracts for the provision of services by a controlling shareholder
Not applicable
11.
Shareholder waivers of dividends
Other Disclosures (page 2.128)
12.
Shareholder waivers of future dividends
Other Disclosures (page 2.128)
13.
Agreements with controlling shareholders
Not applicable
Intertek Group plc
Annual Report & Accounts 2024
2.128
Other Disclosures Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Directors
The names of the members of the Board, as at the date of
this report, and their biographical details are set out on
pages 2.66-2.68.
Articles of Association
The Company’s Articles of Association contain provisions
relating to the retirement, election and re-election of Directors
but, in accordance with best practice, all Directors who wish to
continue to serve will stand for election and re-election at the
Annual General Meeting (‘AGM’).
The Articles of Association set out the internal regulation of the
Company and cover such matters as the rights of shareholders,
the appointment or removal of Directors and the conduct of the
Board and general meetings. Copies are available upon request
from the Group Company Secretary and are available at the
Company’s AGM. Further powers are granted by members in
general meetings and those currently in place are set out in
detail on the next page.
Directors’ indemnities
The Board believes that it is in the best interests of the Group to
attract and retain the services of the most able and experienced
Directors by offering competitive terms of engagement,
including the granting of indemnities on terms consistent with
the applicable statutory provisions. In accordance with the
Articles of Association, the Company has executed deed polls
of indemnity for the benefit of the Directors of the Company.
These provisions, which are deemed to be qualifying third-party
indemnity provisions (as defined by section 234 of the Act),
were in force during the financial year ended 31 December 2024
for the benefit of the Directors and, at the date of this report,
remain in force in relation to certain losses and liabilities which
they may incur (or have incurred) in connection with their duties,
powers or office.
Directors’ interests
Other than the Directors’ service agreements or letters of
appointment, none of the Directors of the Company had a
personal interest in any business transactions of the Company or
its subsidiaries. The terms of the Directors’ service agreements or
letters of appointment and the Directors’ interests in shares and
share awards of the Company, in respect of which transactions
are notifiable to the Company and the FCA under Article 19 of
the UK Market Abuse Regulation, are disclosed in the Directors’
Remuneration report.
Directors’ powers
The Directors are responsible for the strategic management of
the Company and their powers to do so are determined by the
provisions of the Act and the Company’s Articles of Association.
Dividend
The Directors are recommending a final dividend of 102.6p per
ordinary share (2023: 74.0p) making a full-year dividend of
156.5p per ordinary share (2023: 111.7p) which will, if approved
at the AGM, be paid on 20 June 2025 to shareholders on the
register at the close of business on 30 May 2025.
Share capital
The issued share capital of the Company and the details of the
movements in the Company’s share capital during the year are
shown in note 15 in Report 3.
The holders of ordinary shares are entitled to receive
dividends when declared, receive the Company’s Annual
Report & Accounts, attend and speak at general meetings
of the Company, appoint proxies and exercise voting rights.
A waiver of dividend exists in respect of the 409,467 shares
held by the Intertek Group Employee Share Ownership Trust
(‘Trust’) as of 31 December 2024 and with respect to future
dividends. Details of the shares purchased by the Trust during
the year are outlined in note 15 in Report 3. There are no
restrictions on the transfer of ordinary shares in the Company.
The rights attached to shares in the Company are provided by
the Articles of Association, which may be amended or replaced
by means of a special resolution of the Company in a general
meeting. The Directors’ powers are conferred on them by UK
legislation and by the Company’s Articles of Association.
No ordinary shares carry any special rights with regard to the
control of the Company and there are no restrictions on voting
rights except that a shareholder has no right to vote in respect
of a share unless all sums due in respect of that share are fully
paid. There are no arrangements known to the Company by
which financial rights carried by any shares in the Company are
held by a person other than the holder of the shares, nor are
there any arrangements between holders of securities that may
result in restrictions on the transfer of securities or on voting
rights known to the Company. All issued shares are fully paid.
Shares are admitted to trading on the London Stock Exchange
and may be traded through the CREST system.
Intertek Group plc
Annual Report & Accounts 2024
2.129
Other Disclosures Continued
3: Financial Report
1: Strategic Report
2: Sustainability Report
Allotment of shares
At the AGM held in 2024, the shareholders generally and
unconditionally authorised the Directors to allot relevant
securities up to approximately two-thirds of the nominal
amount of issued share capital.
It is the Directors’ intention to seek renewal of this authority
in line with guidance issued by the Investment Association.
The resolution will be set out in the Notice of AGM.
At the AGM held in 2024, the Directors were also empowered
by the shareholders to allot equity securities, up to 5% of the
Company’s issued share capital, for cash under section 570 of
the Act. It is intended that this authority be renewed at the
forthcoming AGM.
It is the Board’s intention to also propose the renewal of the
additional special resolution to allow the Company to allot
equity securities up to a further 5% of the Company’s issued
share capital. This is applicable when the Board determines a
transaction to be an acquisition or other capital investment and
is announced contemporaneously with the allotment or has
taken place in the preceding six-month period and is disclosed
in the announcement of the allotment.
At date of notification
Purchase of own shares
Shareholders also approved the authority for the Company
to buy back up to 10% of its own ordinary shares by market
purchase until the conclusion of the AGM to be held this year.
The Directors will seek to renew this authority for up to 10%
of the Company’s issued share capital at the forthcoming AGM.
This power will only be exercised if the Directors are satisfied
that any purchase will increase the earnings per share of
the ordinary share capital in issue after the purchase, and
accordingly, that the purchase is in the interests of shareholders.
The Directors will also give careful consideration to gearing
levels of the Company and its general financial position. Any
shares purchased in this way may be held in treasury which, the
Directors believe, will provide the Company with flexibility in the
management of its share capital. Where treasury shares are used
to satisfy Share Awards, they will be classed as new issue shares
for the purpose of the 10% limit on the number of shares that
may be issued over a ten-year period under the relevant share
plan rules. The Company currently holds no shares in treasury.
Significant agreements
The Company is not a party to significant agreements
which take effect, alter or terminate upon a change of control
following a takeover bid apart from a number of credit facilities
with banks together with certain senior notes issued by the
Company. The total amount owing under such credit facilities
and senior note agreements as of 31 December 2024 is shown
in note 14 to the financial statements on page 3.28 in Report 3.
These agreements contain clauses such that, in the event of a
change of control, the Company can offer to or must repay all
such borrowings together with accrued interest, fees and other
sums owing as required by the individual agreements.
The rules of the Company’s incentive plans contain clauses
relating to a change of control resulting from a takeover and, in
such an event, awards would vest subject to the satisfaction of
any associated performance criteria. The Company is not aware
of any other agreements with change of control provisions that
are considered to be significant in terms of their potential impact
to the business.
There are no significant agreements or contracts in place
with any Group Company and a Director of the Company or
a major shareholder.
Our people
Information about the Group’s employees, employment of
disabled persons policies and employment practices is contained
within this report on pages 2.13-2.26. Information on the
employee share schemes is in the Directors’ Remuneration
report and note 17, on pages 3.38-3.39 in Report 3. The steps
by the Company taken to inform, engage and consult with
employees is outlined on page 2.16 and in the Section 172
statement on page 2.72.
Material interests in shares
Up to 3 March 2025, being the latest practicable date before
the publication of this report, the following disclosures of
major holdings of voting rights have been made (and have
not been amended or withdrawn) to the Company pursuant
to the requirements of DTR 5. The Company is not aware of
any changes in the interests disclosed under DTR 5 since the
year end.
Shareholder
Direct voting
rights
Indirect voting
rights
Percentage of
voting rights
attached to
shares
Voting rights
through financial
instruments
Percentage of
voting rights
through financial
instruments
Total voting
rights
Percentage of
total voting
rights
BlackRock Inc.
–
10,473,019
6.49%
1,392,394
0.85%
11,865,413
7.34%
Massachusetts Financial Services Company
–
8,068,287
4.99%
–
–
8,068,287
4.99%
Fiera Capital Corporation
–
8,010,553
4.96%
–
–
8,010,553
4.96%
These holdings are published on a Regulatory Information Service and on the Company’s website.
Intertek Group plc
Annual Report & Accounts 2024
2.130
Other Disclosures Continued
3: Financial Report
2: Sustainability Report
1: Strategic Report
Stakeholders
Information on the steps taken by the Company to inform,
engage and consult with our stakeholders is outlined on pages
2.27 and in the Section 172 statement on pages 2.76 and 2.77.
Energy Use and Greenhouse Gas (‘GHG’) emissions
Information about the Group’s energy use, GHG emissions and
methodologies used for their calculation are given in this report
on pages 2.38-2.41.
Task Force on Climate-Related Financial Disclosures
('TCFD')
The climate-related financial disclosures consistent with TCFD
recommendations are on pages 1.65-1.73 in Report 1.
Political donations
At the AGM in 2024, shareholders passed an ordinary resolution,
on a precautionary basis, to authorise the Company to make
donations to UK political organisations and to incur UK political
expenditure (as such items are defined in the Act) not exceeding
£90,000.
During the year the Group did not make any such political
donations (2023: £nil). It is the Company’s policy not to, directly
or through any subsidiary, make what are commonly regarded as
donations to any political party.
At the forthcoming AGM of the Company, shareholders’ approval
will again be sought to authorise the Group to make political
donations and/or incur political expenditure (as such terms are
defined in section 362 to 379 of the Act). Further information is
contained in the Notice of AGM.
Branches
The Company, through various subsidiaries, has established
branches in a number of different countries in which the
business operates. The list of related undertakings is available
in note 23 in Report 3.
Independent auditors
The auditor, PricewaterhouseCoopers LLP, have expressed their
willingness to continue in office. Upon the recommendation of
the Audit Committee, a resolution to reappoint them as auditors
and to determine their remuneration will be proposed at the
forthcoming AGM.
Financial instruments
Details about the Group’s use of financial instruments are
outlined in note 14 in Report 3.
Annual General Meeting
The Notice of AGM, which is to be held on 22 May 2025,
is available for download from the Company’s website at
intertek.com/investors. The Notice details the business to be
conducted at the meeting and includes information concerning
the deadlines for submitting proxy forms and in relation to
voting rights.
Statement of disclosure of information to auditors
The Directors who held office at the date of approval of this
Directors’ report confirm that, so far as they are aware, there is
no relevant audit information of which the Company’s auditors
are unaware and each Director has taken all reasonable steps
that he or she ought to have taken as a Director of the Company
to make themselves aware of any relevant audit information and
to establish and ensure that the Company’s auditors are aware
of that information.
Intertek Group plc
Annual Report & Accounts 2024
2.131
3: Financial Report
1: Strategic Report
2: Sustainability Report
The Directors are responsible for preparing the Annual Report
& Accounts, including the financial statements, in accordance
with applicable law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have prepared the Group financial statements
in accordance with UK-adopted international accounting
standards and the Company financial statements in
accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 101 'Reduced Disclosure Framework', and
applicable law).
Under company law, Directors must not approve the financial
statements unless they are satisfied that they give a true and
fair view of the state of affairs of the Group and Company and
of the profit or loss of the Group for that period. In preparing
the financial statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• state whether applicable UK-adopted international
accounting standards have been followed for the Group
financial statements and United Kingdom Accounting
Standards, comprising FRS 101, have been followed for
the Company financial statements, subject to any
material departures disclosed and explained in the
financial statements;
• make judgements and accounting estimates that are
reasonable and prudent; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the Group
and Company will continue in business.
The Directors are responsible for safeguarding the assets of
the Group and Company and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors are also responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s and Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the
Group and Company and enable them to ensure that the
financial statements and the Directors’ Remuneration report
comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity
of the Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the Annual Report & Accounts,
taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess
the Group’s and Company’s position and performance, business
model and strategy.
Each of the Directors, whose names and functions are listed in
the Directors’ report, confirm that, to the best of their knowledge:
• the Group financial statements, which have been prepared
in accordance with UK-adopted international accounting
standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Group;
• the Company financial statements, which have been prepared
in accordance with United Kingdom Accounting Standards,
comprising FRS 101, give a true and fair view of the assets,
liabilities and financial position of the Company; and
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the
Group and Company, together with a description of the
principal risks and uncertainties that it faces.
In the case of each Director in office at the date the Directors’
report is approved:
• so far as the Director is aware, there is no relevant audit
information of which the Group’s and Company’s auditors
are unaware; and
• they have taken all the steps that they ought to have taken as
a Director in order to make themselves aware of any relevant
audit information and to establish that the Group’s and
Company’s auditors are aware of that information.
in respect of the financial statements
André Lacroix
Chief Executive Officer
3 March 2025
Registered Office:
33 Cavendish Square, London W1G 0PS
Registered Number: 04267576
Statement of Directors Responsibilities
Intertek Group plc
Annual Report & Accounts 2024
2.132
Notes
3: Financial Report
2: Sustainability Report
1: Strategic Report
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Intertek Group plc
33 Cavendish Square,
London, W1G 0PS
United Kingdom
Tel +44 20 7396 3400
info@intertek.com
intertek.com
VISIT: INTERTEK.COM/INVESTORS