The Time Is Now
ANNUAL REPORT
& FINANCIAL
STATEMENTS 2024
As climate change intensifies,
urgent action is critical.
Buildings and construction
account for 37% of energy-
related emissions globally.
Crystal Bridges
Museum of
American Art
Arkansas, USA
Insulated Panels
Morin Pulse Panels
SUMMARY FINANCIALS
1 Earnings before finance costs, income taxes, depreciation and amortisation
2 Operating profit before amortisation of intangibles
3 Trading profit divided by total revenue
h
REVENUE
€8.6bn
+6%
2023: €8.1bn
h
EBITDA2
€1.14bn
+7%
2023: €1.07bn
h
PROFIT AFTER TAX
€691m
+6%
2023: €654m
h
TRADING PROFIT1
€907m
+3%
2023: €877m
i
TRADING MARGIN3
10.5%
-30bps
2023: 10.8%
h
EPS
365.2c
+4%
2023: 352.3c
Completing the
Envelope Strategy
3
Annual Report & Financial Statements 2024
2
Kingspan Group plc
CONTENTS
OUR STRATEGY
4
OUR IMPACT
24
OUR GLOBAL REACH
25
BUSINESS & STRATEGIC REPORT
Chairman’s Statement
26
Our Business Model & Strategy
30
Chief Executive’s Review
38
Financial Review
50
Risk & Risk Management
56
Sustainability Report
66
DIRECTORS’ REPORT
The Board
84
Report of the Nominations & Governance Committee
88
Report of the Remuneration Committee
100
Report of the Audit & Compliance Committee
130
Report of the Directors
142
CSRD SUSTAINABILITY STATEMENT
Limited Assurance Report
156
General Information
160
Environmental Information
170
Social Information
208
Governance Information
232
Appendices
238
FINANCIAL STATEMENTS
Independent Auditor’s Report
254
Financial Statements
264
Notes to the Financial Statements
273
OTHER INFORMATION
Alternative Performance Measures
325
Principal Subsidiaries and Substantial Undertakings
328
Shareholder Information
330
Corporate Information
331
Group 5 Year Summary
332
This copy of the statutory annual report of Kingspan Group
plc for the year ended 31 December 2024 is not presented
in the ESEF-format as specified in the Regulatory Technical
Standards on ESEF (Delegated Regulation (EU) 2019/815).
The ESEF annual report is available at: https://www.
kingspan.com/group/investors/reports-presentations
Orlando International
Airport
Florida, USA
Data Solutions
ConCore®2500 raised
access floor panel
Kingspan Group plc
4
Annual Report & Financial Statements 2024
6
Completing the Envelope
Completing
the Envelope
OUR STRATEGY
OUR HERITAGE
We leverage our rich
heritage in both innovation
and sustainability, applying
them to a broad portfolio of
products to help accelerate
a net zero emissions built
environment.
2008
Kingspan enters the
US panels market
with the acquisition
of Metecno
5
WHAT WE DO
Building on our position
as both the global
leader in insulated panel
and high-performance
insulation, we have
developed a leading
building envelope
solutions business.
Complementing our
leading position in
insulation, we offer a wider
range of building envelope
solutions with energy
efficiency at their core,
including:
Kingspan’s mission is
to accelerate a net zero
emissions built environment.
Through the Completing
the Envelope strategy we offer
customers a wider range of
high-performance building
envelope solutions which
deliver energy efficient, lower
embodied carbon buildings
and can also generate
renewable energy.
1982
1997
1980
Kingspan manufactures its
first insulation board, a key
component in roofing systems
Kingspan manufactures its
first daylighting product
Kingspan acquires
Ward Building
Components (Est 1949)
Roofing + Waterproofing
Leveraging our position
as a market leader in the
manufacturer of high-
performance flat roof
insulation we have established
a c.€1bn presence in the
built-up roofing market in
which insulation represents
the single largest value
component.
Discover more about Roofing
+ Waterproofing on page 31
Light, Air + Water
Complementing our high
performance insulated panel
building envelope solutions,
Kingspan Light, Air + Water
provides integrated solutions
for optimising natural
daylight, increasing natural
air flow and ventilation, and
managing heat and smoke
in the event of a fire.
Discover more about Light,
Air + Water on page 31
Technical Insulation
Kingspan is a global supplier
of pre-insulated pipe systems
for district heating and
manufactures innovative, high-
performance products in both
piping insulation and ducting
insulation.
Discover more about Technical
Insulation on page 31
Sister Lillian Murphy
Community Housing
California, USA
Insulated Panels
Morin Integrity S-16
wall panel system
Kingspan manufactures its
first insulated panel for the
roofing market
1976
2015
2021
2024
Kingspan acquires leading
panel and profile manufacturer
Joris Ide (Est 1985)
2001
Kingspan acquires US
raised access floor
provider Tate
Kingspan acquires Logstor (Est
1964), the world’s first pre-
insulated pipe manufacturer
In 2024, Kingspan enters the wood fibre
insulation market with a controlling stake
in Steico (Est 1986)
2022
Kingspan acquires Ondura
(Est 1944) and launched its
Roofing + Waterproofing
Division
Data Solutions
Leading global provider of
innovative solutions in the
data sector. Our factory-
built products offer rapid
deployment, consistent
world class quality and
adaptability for a range
of energy efficient cooling
solutions.
Discover more about Data
Solutions on page 31
1 100mm panel
2 5,000m2 roof
3 Across lifecycle modules A-C
HOW DO WE COMPARE
Compared to our peers, we provide a much more comprehensive suite of solutions across the building envelope.
Building Envelope Solutions
Kingspan
Peer 1
Peer 2
Peer 3
Peer 4
Peer 5
Peer 6
Insulated panel
✓
✓
✓
✓
Roof lighting
✓
Wall lighting
✓
Integrated roof systems
✓
✓
✓
✓
Integrated solar roofing panel
✓
Complementary products
Water management
✓
District heating
✓
Flooring
✓
9
Completing the Envelope
See Case Studies on page 22
Sister Lillian Murphy
Community Housing
California, USA
Insulated Panels
Morin Integrity S-16
wall panel system
THE LOWER EMBODIED CARBON ENVELOPE
Annual Report & Financial Statements 2024
7
Kingspan Group plc
Kingspan’s product suite is uniquely
positioned to deliver an energy
efficient, lower embodied carbon
building envelope which can also
generate renewable energy.
Kilon LEC Multiwall
50% recycled content
36%3 less embodied carbon
Derbicoat® NT (base sheet)
30% recycled content
5,000 kg CO2e savings2
RMG600+
80% recycled content
57%3 less embodied carbon
Tate Grid+ LEC
61%3 less embodied carbon
Multichannel LEC
75% recycled content
63%3 less embodied carbon
Water & Energy
Rainwater harvesting solutions
QuadCore LEC®
48%1 recycled content
16%1,3 less embodied carbon
PowerPanel®
Technical Insulation
8
HemKor®
80% bio-based content
Wood Fibre Insulation
80%+ bio-based content
Bio-based Building Materials
- Wood fibre insulation
- Wood based structures
Annual Report & Financial Statements 2024
10
Kingspan Group plc
Insulation Manufacturing
Kingspan
Peer 1
Peer 2
Peer 3
Peer 4
Peer 5
QuadCore®
✓
Optim-R®
✓
✓
✓
Phenolic
✓
Hemp
✓
Wood
✓
✓
✓
Mineral Fibre
✓
✓
✓
✓
✓
XPS
✓
✓
✓
✓
EPS
✓
✓
✓
PIR
✓
✓
✓
Greenhill School
Valdes STEM +
Innovation Centre
Texas, USA
Data Solutions
ConCore®1250;
ConCore®1550;
ConCore®2000 raised
access floor panels
10
7
5
8
6
9
1
4
3
12
2
11
Completing the Envelope
1 Kingspan GreenGuard®
XPS compressive strength and moisture resistant
2 Therma
PIR Adaptable and strong thermal performance
3 K-Roc®
Stonewool for a variety of applications
4 KoolDuct®
Insulation for internal ventilation / piping
8 Steico®
Wood fibre insulation
9 Kooltherm®
The most complete balance of space
and thermal performance
10 QuadCore LEC®
Leading thermal performance with
lower embodied carbon
5 Optim-R®
Ultra thin, ultra high thermal
performance
6 AlphaCore®
Premium thermal and fire performance
7 Troldtekt®
Wood based acoustic solutions
FULL SPECTRUM OF SOLUTIONS
FOR ALL APPLICATIONS
Increasingly prescriptive regulations
place added emphasis on multiple
insulation solutions. Kingspan
offers, by some distance, the widest
array of products and solutions.
These applications include, but
are not limited to:
Thermal
Return on Investment
Space
Walkability
Fire
Compression
Acoustics
Price
Speed
Bio-Based or Recycled Content
Kingspan Group plc
13
Annual Report & Financial Statements 2024
15
Completing the Envelope
Consistently
Outperforming
Consistent high
quality cash/earnings
growth supports
substantial share price
outperformance.
SHAREHOLDERS
Globalisation
The Group’s
globalisation
mitigates against
regional cyclicality
and provides new
platforms for growth.
Annual Report & Financial Statements 2024
13
Kingspan Group plc
ENVIRONMENT
Completing the
Envelope benefits
all stakeholders
SHAREHOLDERS
Consistent long-term performance, platforms
for future growth
ENVIRONMENT
Future proofed, resource efficient buildings
CUSTOMERS
Supporting customers’ carbon ambitions and
future proofing asset values
COMMUNITIES
Making a positive impact on communities
432%
169%
107%
KINGSPAN
EUROSTOXX 600
CONSTRUCTION &
MATERIALS SECTOR
EUROSTOXX 600
10 YEAR TOTAL SHAREHOLDER RETURN
(TO 31/12/2024) ASSUMING DIVIDENDS REINVESTED
14
Source: Bloomberg
Our growth strategy
has underpinned
sustained long-term
performance and
provides compelling
capital deployment
opportunities.
Our solutions make a significant positive impact
on the resource efficiency of buildings
University of Guelph
Ontario, Canada
Nova Post
Kyiv, Ukraine
Insulated Panels
KS1150 insulated
wall panel
Our daylighting systems sold in
2024 create 3.8 billion lumens of
natural light annually
Enough to light
up 470k homes4
In 2024 alone, we recycled
1.1 billion waste plastic bottles³
Enough recycled
bottles to circle Earth
over five times
Over 44.1 billion litres of
rainwater will be harvested by
our tanks produced in 2024²
Enough water to fill over
550 million baths
172 million tonnes of CO2e will
be saved over the life of our
insulation systems sold in 2024
Enough to power a major
airline for over 11 years1
NATURAL
DAYLIGHT
3.8bn
ULTRA ENERGY
EFFICIENT
172m
CONSERVED
WATER
44.1bn
RECYCLED
MATERIAL
1.1bn
20%
10 year CAGR in
cashflow
16%
10 year CAGR in
revenue
FEASABILITY
DEVELOPMENT
TEST &
VALIDATION
PRODUCTION
& LAUNCH
PRELIMINARY
INVESTIGATION
SCOPE
ENGAGE
NEW
MATERIAL
PRODUCTION
TRIALS
MARKET
LAUNCH
SUPPLIER
COLLABORATION
INNOVATION
REVENUE
€8,608M
(2024)
AMERICAS
ROW
IRELAND & UK
EUROPE
AMERICAS
EUROPE
REVENUE
€1,126M
(2009)
ROW
IRELAND & UK
Al Shaheed Park
Phase III
Kuwait City, Kuwait
Insulated Panels
KingZip® Infiniti standing seam
system; Aluminium Composite Panel
1 Assumes 60 year product life; based on an EU airline disclosure of
over 15.4m tonnes of CO2e emissions for 12 months to March 2024
2 Assumes a 20 year product life
3 Equivalent number of PET bottles by weight
4 Assumes 10 x 60W bulbs per home
Insulated Panels
AD300; AD300R; AD150
Vicwest wall panel systems
IDEA GENERATION
WHAT ARE THE
BENEFITS?
BEFORE
AFTER
Asset values beginning to reflect energy
performance of buildings
CUSTOMERS
72%
of the top 100 office
occupiers in NYC have
carbon commitments
80%
of the top 100 office
occupiers in Paris have
carbon commitments
7.1%
North America average
rental premium for green-
certified, class A office stock
across 8 major markets in
the US and Canada
11.6%
London average rental
premium for green-
certified, office stock
9.9%
Asia average rental premium
for green-certified, class A
office stock across 9 major
markets in Asia
4.2%
JLL’s study highlights that each
additional ‘step’ of an Energy
Performance Certificate (EPC)
results in an average 4.2%
increase in rents
Our range of solutions provide:
COMMUNITIES
As we grow our footprint, we regenerate
unused manufacturing sites, increase
employment opportunities and launch
community projects.
Mester Építő
Hungary
Insulated Panels
Evolution QuadCore®
163
community
projects across
our footprint
AFTER
Colleagues in Light, Air + Water partnered with Just
a Drop to support water and sanitation initiatives
in Nairobi.
Colleagues in Roofing + Waterproofing donated and
installed a roofing solution to Stepney City Farm which
serves as an education resource for children and an
animal refuge.
BEFORE
AWIP, East Stroudsburg (PA, USA)
developed into a state of the art
Insulated Panel facility
Single System Warranty
Product Quality/Integrity
Simplified Supply Chain
Innovation
Source: The commercial case for making more sustainable buildings, JLL
Saint Priest, Lyon (France)
transformed into a world class Light,
Air + Water facility
17
Annual Report & Financial Statements 2024
Kingspan Group plc
16
Completing the Envelope
Opportunity
for growth
WHAT’S NEXT?
Developing product
categories, increased market
penetration and continued
globalisation of the business
provides multiple platforms
for future growth.
INSULATED PANELS
US Commercial Installed Solar Capacity (MWh)
New Markets include
Paraguay, Uruguay, Chile, Vietnam, Thailand and New Zealand
PowerPanel®
New generation PowerPanel®
now launching
Greenhill School
Valdes STEM +
Innovation Centre
Texas, USA
Data Solutions
ConCore®1250;
ConCore®1550;
ConCore®2000 raised
access floor panels
Strong structural growth
drivers for insulated panel
penetration rates
»
Thermal performance
»
Speed of build
»
Increased labour efficiency
»
Increased transport efficiency
»
Lower embodied carbon
»
Demand for solar solutions
Paraguay
Uruguay
Chile
Vietnam
Thailand
New Zealand
Source: Seia / Wood Mackenzie
Installed Solar Capacity (MWh)
2014
2015
2016
2017 2018 2019 2020 2021 2022 2023 2024
25,000
20,000
15,000
10,000
5,000
0
Comparative market penetration
US
UK
>65%
<20%
Annual Report & Financial Statements 2024
18
Kingspan Group plc
19
Completing the Envelope
$100bn
h
100%
ROOFING + WATERPROOFING
This division is at the early
stage of its European
consolidation, as well as its
entry into the US market.
LIGHT, AIR + WATER
Light, Air + Water has
established a strong presence
in European markets. The
opportunity to consolidate the
global market is significant
while there is ample scope to
broaden the product offering.
INSULATION
Our unrivalled spectrum of insulation
solutions leaves us uniquely
positioned to cater for increasingly
complex customer requirements.
A structural need to increase
refurbishment rates and greater
emphasis on innovative solutions,
such as district heating, provides an
attractive long-term backdrop.
DATA SOLUTIONS
Global demand for data centre
infrastructure is accelerating with
demand set to more than triple
by 20302. Data centres dedicated
to artificial intelligence bring
significantly increased energy
intensity. Our factory built products
offer rapid deployment, consistent
world class quality and adaptability
for a range of energy efficient
cooling solutions.
2 McKinsey & Co: AI power: Expanding data center
capacity to meet growing demand, October 2024
Net Zero
Renovation rates in
Europe are required to
double to meet Net
Zero targets1
Steico Growth
Steico’s high growth
niche offering has
capacity to almost
double in size
2024 2030
DENMARK GERMANY FRANCE ITALY UK
65%
14%
5%
3%
2%
70%
60%
50%
40%
30%
20%
10%
0%
2023 2027
€50M
€200M
Penetration of
district heating
Trading Profit Target
Targeting €200m
trading profit by 2027
from €50m in 2023
Sector Investment
Data majors3 to
grow total capex by
$100bn4 over 5 years
3 Amazon, Microsoft, Meta,
Alphabet, Bloomberg estimates
4 Source: Bloomberg
Divisional
Sales Target
Target for divisional
sales €1.5bn by
2027, proforma
run rate of c.€1bn
exiting FY24
Revenue Targets
Target to grow revenue
from €1bn to €2bn over
the medium-term
Current
revenue
c.€1bn
Potential opportunity >€25bn
h
€25BN
US Market
Share Target
Targeting 15%
market share of the
US Commercial Flat
Roof Market
EU Market Share
<10% market share
of the EU Flat Roof
Market
2024 2027
€1.5BN
C.€1BN
<10%
15%
2023 2028
€2BN
€1BN
1 Renovation Wave, European Commission
21
Completing the Envelope
Annual Report & Financial Statements 2024
Kingspan Group plc
20
Case Studies
STATE OF THE ART
WAREHOUSE FACILITY
International real estate manager, Henderson
Park, developed eight new warehouses with
offices and state of the art distribution
facilities. A key requirement of the project
was to meet a range of sustainability
standards including LEED Gold certification.
Kingspan’s insulated panel and Dri-Design
solutions support strong thermal performance,
durability, rapid construction and aesthetic
appeal while our day lighting products allow
natural light into the warehouse space,
increasing employee wellbeing and helping
reduce energy demands.
Kingspan supplied products from both Insulated
Panels and Light, Air + Water divisions;
»
QuadCore® roof panel;
»
QuadCore® cold store wall panel internal
and external;
»
Dri-Design® cassette system; and
»
Day-Lite® trapezoidal rooflights.
EUROPEAN DISTRIBUTION CENTRE
Kingspan played a central role in delivering
a new 1.3 million sq ft distribution centre,
including cold storage, for a European
multinational supermarket chain. The
construction and management of a
facility of this nature and scale brings
logistical, operational and embodied
carbon challenges.
MULTIPURPOSE BUILDING
Located harbourside in Copenhagen, BLOX
is a multifunctional building that comprises
exhibitions and event spaces, offices, cafes,
restaurants, shops and apartments. The
diverse range of uses for the building required
multiple insulation solutions.
From our Full Spectrum Kingspan supplied:
»
vacuum insulation panel product Optim-R®;
»
phenolic thermal insulation material
Kooltherm® cavity board; and
»
PIR thermal insulation material Therma
flat roof and tapered roof board.
A key priority for the building owner was optimising
operational performance while embracing sustainability.
Kingspan supplied products from both Insulated Panels
and Data Solutions divisions:
»
Topdek® single ply panel powered by QuadCore®;
»
QuadCore® cold store wall panel for internal;
and external walls; and
»
RMG600+ raised access floor.
23
22
Kingspan Group plc
Annual Report & Financial Statements 2024
Completing the Envelope
6
2
2
3
5
12
3
4
4
2
2
2
2
2
2
2
2
16
10
17
15
38
2
8
13
16
6
2
2
2
2
5
35
4
7
15
15
8
3
2
7
3
3
2
3
3
5
2
10
7
2
5
11
12
8
3
2
5
2
2
4
2
2
2
2
2
2024 was another year of global
expansion with our manufacturing
footprint growing from 224 sites to 273.
OUR IMPACT
Our products directly
enable lower carbon
and healthier
buildings, now and
into the future.
Kingspan’s insulation systems sold in 2024 will
save an estimated 755m MWh of energy and
172m tonnes of CO₂e over their lifetime.
OUR GLOBAL
REACH
1 Assumes 60 year product life; based
on an EU airline disclosure of over
15.4m tonnes of CO2e emissions for
12 months to March 2024
2 Assumes a 20 year product life
3 Equivalent number of PET bottles
by weight
4 Assumes 10 x 60W bulbs per home
Sales
Manufacturing
Americas
Brazil
Canada
Chile
Colombia
Mexico
Panama
Paraguay
Peru
Uruguay
USA
Europe
Austria
Azerbaijan
Belgium
Bosnia
Bulgaria
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Hungary
Ireland
Italy
Kazakhstan
Latvia
Lithuania
Netherlands
N. Ireland
Norway
Poland
Portugal
Romania
Serbia
Slovakia
Spain
Sweden
Switzerland
UK
Ukraine
Middle East
Qatar
Turkey
UAE
Africa
Egypt
Kenya
Morocco
Asia
China
India
Indonesia
Japan
Malaysia
Pakistan
Philippines
Singapore
Thailand
Uzbekistan
Vietnam
Australasia
Australia
New Zealand
Our Locations
Our daylighting systems sold in
2024 create 3.8 billion lumens of
natural light annually
Enough to light
up 470k homes4
In 2024 alone, we recycled
1.1 billion waste plastic bottles³
Enough recycled bottles
to circle the Earth over
five times
Over 44.1 billion litres of
rainwater will be harvested by
our systems produced in 2024²
Enough water to fill over
550m baths
172 million tonnes of CO2e will
be saved over the life of our
insulation systems sold in 2024
Enough to power a major
airline for over 11 years1
NATURAL
DAYLIGHT
3.8bn
ULTRA ENERGY
EFFICIENT
172m
CONSERVED
WATER
44.1bn
RECYCLED
MATERIAL
1.1bn
25
Our Impact and Global Reach
Annual Report & Financial Statements 2024
24
Kingspan Group plc
It is my privilege to
present the Annual Report
for Kingspan Group plc
(Kingspan) for the year
ended 31 December 2024.
CHAIRMAN’S
STATEMENT
JOST
MASSENBERG
Once again, Kingspan has delivered
record results despite a challenging
environment in many of our core
markets; trading profit increased
by 3% to €907m (2023: €877m) and
earnings per share increased 4% to
365.2 cent (2023: 352.3 cent). These
record results reflect the strength of
our strategy, our disciplined execution
and the resilience of our business in an
ever evolving global landscape.
Delivering on strategy
I am also pleased to report on the significant
progress we have made across our four key
strategic pillars: Innovation, Planet Passionate,
Globalisation, and Completing the Envelope.
Our unwavering focus on innovation and
sustainability supports our position as a global
leader in high-performance insulation and building
envelope solutions. It has also informed and
steered our product development pipeline for new
and existing products, including increased use of
bio-based materials, lower carbon materials and
new product solutions including QuadCore® LEC
Panels, Tate Grid+ LEC, and PowerPanel®.
During 2024 we expanded our geographic
footprint through both organic growth and
acquisition. We commissioned new facilities in
Europe, the US, APAC and LATAM during the
year and acquired controlling stakes in Steico,
a global leader in wood fibre insulation, and
Nordic Waterproofing, a leading provider of
waterproofing solutions in Northern Europe.
We expect to continue to grow our presence in the
US and have ring-fenced $1 billion of capital for
business developments there, including significant
investment in the Roofing + Waterproofing
sector over the coming years. We completed the
acquisition of IB Roof Systems, a high-performance
PVC membrane provider, as well as commencing
work on two further brownfield sites in Oklahoma
and Maryland expected to be commissioned
in 2026. We also continued our growth in Latin
America, by acquiring a controlling interest in
Villalba, a manufacturer of insulated metal panels
in Chile as well as a majority stake in the Kingspan
MV joint venture in Paraguay, bringing our total
manufacturing facility count in the LATAM region
to 16. These developments have broadened our
product portfolio and strengthened our market
presence in key regions.
Trilogy
Limassol, Cyprus
Light, Air + Water
Pressure differential
system
h
TRADING PROFIT
€907m
+3%
2023:
€877m
Our unwavering focus on
innovation and sustainability
supports our position as
a global leader in high-
performance insulation and
building envelope solutions.
Annual Report & Financial Statements 2024
26
Kingspan Group plc
Business & Strategic Report
27
Chairman’s Statement
The Planet Passionate programme has been
pivotal in driving Kingspan’s sustainability agenda,
achieving measurable environmental goals,
earning industry recognition, and fostering a
culture of sustainability within Kingspan and its
communities. During the year, we continued
to make excellent strides towards our Planet
Passionate objectives, achieving a 61% reduction
in Scope 1 and 2 GHG emissions (excluding
biogenic emissions) against a 2020 base year,
and achieving 30% on-site renewable energy
generation across our whole business.
Via our Planet Passionate Communities
programme, Kingspan supports the communities
where we operate through educational,
humanitarian, environmental and wellbeing
initiatives. Our colleagues and local businesses
provide time, insight, resource and creativity
in support of diverse projects ranging from
community ambulances and search and rescue,
to mental health and wellbeing, to biodiversity
initiatives like replanting and insect hotels,
to community sports, artistic and cultural
endeavours. We also seek to have a positive
impact beyond our business operations, such as
completion of the Puerto Cortés Hospital project
in Honduras in partnership with GOAL.
Dividend
Subject to approval at the Annual General
Meeting, the Board is recommending a final
dividend of 28.5 cent per share. This will give a
total dividend for the year of 54.8 cent (compared
to 52.9 cent in the prior year). This is in line with
Kingspan’s established shareholder returns policy.
If approved, the final dividend will be paid (subject
to Irish withholding tax rules) on 21 May 2025 to
shareholders on the register at close of business on
11 April 2025.
Our people
Our people are the cornerstone of our success.
Their resilience, creativity and dedication have
been instrumental in driving our achievements
in 2024. We are committed to fostering a culture
of inclusivity, innovation and excellence, and
we continue to invest in their development and
wellbeing through initiatives such as our People
Passionate programme. On behalf of the Board, I
extend my gratitude to all our employees for their
outstanding contributions to another successful
year with Kingspan.
Board governance
Good governance is front and centre to
everything we do. In 2024, our Board continued
to enhance our governance frameworks, ensuring
alignment with best practices and stakeholder
expectations. Engagement with our shareholders
remains a key priority. Throughout the year, we
maintained an open and constructive dialogue
with our investors, addressing not only governance
matters but also strategic direction and financial
performance. This engagement ensures that
we remain aligned with their expectations while
benefiting from valuable insights that enhance
our decision-making processes.
Board changes
Linda Hickey will retire from the Board at the
conclusion of the Annual General Meeting in May
2025, after 12 years of service as a non-executive
director. Throughout her tenure, and particularly in
her role as Senior Independent Director and Chair
of the Remuneration Committee, Linda has always
provided invaluable expertise, sound judgment and
steadfast commitment to our governance and
strategic direction. On behalf of the Board, I would
like to extend my sincere thanks to Linda for her
significant contribution to the Company.
Following the Annual General Meeting we will
welcome Eavan Saunders as a new independent
non-executive director onto the Board. Eavan is
the Managing Partner and founder of the Irish
office of global law firm Dentons, with over 25
years’ experience as a top-tier corporate lawyer
specialising in international M&A and capital
markets, bringing her wealth of international
experience to the Board. I look forward to the
benefit of her contributions to the Board in the
years to come.
Looking ahead
I am confident that our exceptional management
team, strategic initiatives and recent acquisitions
optimally position Kingspan for continued growth
and to capitalise on emerging opportunities.
I believe our commitment to innovation,
sustainability, and strategic growth will ensure
that we remain at the forefront of the industry,
delivering value to our stakeholders, driving
positive change and creating a more sustainable
built environment.
Jost Massenberg
Chairman
25 February 2025
Kingspan is part of the
communities where we
operate and we support
those communities
through educational,
humanitarian,
environmental and
cultural initiatives.
Fujirebio GoCo
Mölndal, Sweden
Insulated Panels
Dri-Design® cassette
system
Annual Report & Financial Statements 2024
28
Kingspan Group plc
Business & Strategic Report
29
Chairman’s Statement
Insulated Panels
Kingspan Insulated Panels is the world’s
largest and leading manufacturer of
high-performance insulated panel
building envelopes. Powered by Kingspan’s
proprietary and differentiated insulation
core technologies, our panelised envelope
provides building owners with consistently
superior build quality and lifetime thermal
performance compared with built-up
constructions using traditional insulation.
Data Solutions
Kingspan is the world’s largest supplier
of raised access flooring and data
centre airflow management systems.
Our raised access flooring systems have
many benefits including optimising
overall building height, achieving
faster construction with greater design
flexibility, enabling easier reconfiguration
of a workspace, and improving indoor
air quality. Our airflow management
systems enable data centres to optimise
cooling energy requirements while also
protecting expensive equipment such as
servers and storage devices.
Harness the power of the natural environment
Light, Air + Water
An established global leader, Kingspan
Light, Air + Water provides a full suite of
daylighting solutions, as well as natural
ventilation and smoke management
solutions, which complement our existing
building envelope technologies. Thermal
comfort, indoor air quality and natural
daylighting are widely recognised as
the most important factors affecting
occupant wellbeing in buildings.
OUR BUSINESS MODEL
AND STRATEGY
Our mission is to
accelerate a net
zero emissions built
environment with
people and planet
at its heart.
OUR SOLUTIONS
Conserve energy and reduce carbon emissions
Insulation
Kingspan is a world leader in rigid
insulation boards, which accounts
for approximately two thirds of our
Insulation division. Our advanced
insulation technologies deliver superior
thermal performance and air-tightness
when compared with traditional
insulation, resulting in more durable,
thinner solutions that offer multiple
advantages including more internal
floorspace and daylight. More recently,
we have been expanding our bio-
based insulation offering through the
acquisitions of Troldtekt and HempFlax,
and the acquisition of 51% of Steico in
early 2024.
Technical insulation is a segment which
contains significant opportunity for
Kingspan to expand in the future. The
operation of buildings accounts for 28%
of carbon emissions globally. While space
heating is the largest consumer of energy
in buildings, heating water and space
cooling are also key energy consumers.
Kingspan has innovative and ultra-
performance products in both piping
and ducting insulation and we service
the district heating segment through
supplying pre-insulated piping through
our LOGSTOR business.
Roofing + Waterproofing
Our recently developed roofing
and waterproofing segment
complements our insulation board
offering. Roofing membrane and
roofing components are essential
elements for the energy efficiency
and water protection of a building
envelope. The acquisition of IB
Roofing Systems and a controlling
stake in Nordic Waterproofing
increased Kingspan’s proforma
annual sales in the segment to
c.€1bn. Going forward, we expect to
offer single component membrane
solutions and to also offer roof
systems incorporating membrane
and insulation, giving our customers
increased warranty protection from
a single trusted supplier.
Sustainable water management is rapidly
becoming one of the greatest challenges
of our time. We manufacture and support
pioneering new technologies to preserve
and protect water, such as rainwater
harvesting systems and wastewater
treatment systems.
PowerPanel®
PowerPanel® is part of our Insulated
Panels division. It is an engineering
innovation from Kingspan which has
integrated our QuadCore® insulated
panel with solar technology, enabling
a single fix installation of high-
performance insulated panel with
solar power generation. Our upgraded
PowerPanel® is now launching.
Annual Report & Financial Statements 2024
Kingspan Group plc
30
31
Business & Strategic Report
Our Business Model and Strategy
PowerPanel®
PowerPanel® is a high performance
insulated panel with integrated solar
PV. The initial composition has been
enhanced based on pilot project
observations. The upgraded design
has recently received testing approval
and is set to launch. PowerPanel® has
the capacity to advance the rapid
deployment of solar power generation
on widespan roofs.
Lower Embodied Carbon
(LEC) Portfolio
Our Innovation and Planet Passionate
teams worked in partnership to
take significant steps forward in the
development of lower embodied
carbon alternatives across our
portfolios. In 2024, we brought 12 LEC
products to market including: KILON
LEC daylighting, SFS LEC, and Tate
Grid+ LEC.
BioKor®
Our bio-based insulation category,
branded BioKor®, has made significant
strides with entry into the hemp
insulation market. The acquisition of
a majority stake in Steico, a global
leader in wood fibre insulation, further
positions Kingspan at the forefront of
this expanding sector.
Innovation
Kingspan’s innovation
agenda is driven across
four key themes -
performance, solutions,
sustainability and
digitalisation.
We have a rigorous focus
on iterative performance
improvements in our
current portfolio including
characteristics relating
to thermal, structural,
sustainability, fire and
smoke. We innovate
solutions to enable
architects and building
designers to create
sustainable buildings,
such as our integrated
insulated panel with solar-
PV, PowerPanel® and by
progressively surfacing our
products digitally, we are
making it easier to find
them, specify them, buy
them and track them.
Planet Passionate
Our Planet Passionate
agenda is inextricably
linked with innovation.
Planet Passionate is
Kingspan’s environmental
programme which
aims to impact three
big global challenges
– climate change,
circularity and protection
of the natural world.
By setting ourselves
challenging targets in the
areas of carbon, energy,
circularity and water, we
aim to make significant
advances in both our
business operations and
our products.
Completing the
Envelope
Our strategy of
Completing the
Envelope aims to take
our innovation and
sustainability DNA and
apply them to a wider
portfolio of products
which are complementary
to our current offering.
Our systems and solutions
driven approach deepens
our relationships with our
customers and extends
the opportunities to make
buildings better now and
into the future.
Our business model and
strategic pillars enable
the ongoing conversion to
high-performance building
envelopes from outdated
and inefficient methods
of construction.
OUR STRATEGIC
PILLARS
STRATEGIC HIGHLIGHTS 2024
Carbon and Energy
20% on-site renewable energy
generation target achieved.
During the year the Group achieved
30% on-site renewable energy
generation through the continued
rollout of solar PV, wind and heat
generation systems. The acquisition of
a majority stake in Steico also played
an important role through their use of
biomass heat generation.
2024 saw a 61% reduction in Scope 1
& 2 GHG emissions against our 2020
base year.
Circularity
Target to recycle 1 billion PET
bottles into our manufacturing
processes annually achieved.
In 2024, we successfully achieved
this target and recycled 1.1 billion
PET bottles into our manufacturing
processes.
Water
Support of five ocean clean-up
projects target achieved.
In November of this year, we partnered
with rePurpose Global which marks the
fifth and final partner for the ocean
clean-up target. This project aims to
tackle ocean-bound plastic pollution
in Colombia.
We have installed 58 rainwater
harvesting systems across our
businesses to date, which have the
potential to harvest 71.7 million litres
of rainwater annually.
Roofing + Waterproofing
In 2024, we continued to expand
our presence in the Roofing +
Waterproofing category. We acquired
IB Roof Systems in September, a PVC
membrane provider, headquartered
in Texas, USA. During the year,
we acquired a controlling stake in
Nordic Waterproofing, a leading
European producer and supplier of
waterproofing products and services
for buildings and infrastructure.
Full spectrum of
insulation solutions
Kingspan’s entry into the stonewool
market, with the Kingspan Envertek®
brand, alongside our leadership
position in high performance
products and investment in wood
fibre insulation further expands
the Group’s unrivalled spectrum of
insulation solutions.
Global
We continue our global expansion
strategy with investment in new
production facilities in France,
Germany, Belgium, Poland, the Czech
Republic, Romania, Saudi Arabia,
Thailand, Vietnam, Indonesia, New
Zealand, Australia, Paraguay, Brazil
and the US. We have made further
progress on our plans to invest in a
Building Technology Campus in Lviv,
Ukraine. These investments lay the
foundations for future growth and
product penetration for Kingspan.
Innovation
Planet Passionate
Expansion
Global
Kingspan is a truly
global business,
trading in over
80 countries with
manufacturing sites
across the globe.
We aim to continue
expanding globally to
bring high-performance
building envelope
solutions to markets
which are at an earlier
stage in their evolution
to sustainable and
efficient methods of
construction.
Annual Report & Financial Statements 2024
32
Kingspan Group plc
33
Business & Strategic Report
Strategic Pillars and Highlights
Annual Report & Financial Statements 2024
34
Kingspan Group plc
35
To be the world’s leading
provider of low energy
building envelopes –
Insulate and Generate.
Business & Strategic Report
Our Strategic Goals and Values
Our values have always been the foundation of our
strategy and are fundamental to how we do business
and interact with each other.
OUR STRATEGIC GOALS
OUR VALUES
Innovation
Global
Planet Passionate
Completing the Envelope
Our Belief
Historically, construction has
taken from nature with little
consideration given to the finite
resources available. Buildings were
constructed without contemplating
how they might impact future
generations. We believe that
buildings, now and into the
future, need to deliver more than
ever before. They must combat
climate change by maximising
energy efficiency through superior
thermal performance while
incorporating products that are
lower in embodied carbon across
their entire lifecycle. Using less
energy is not enough; buildings
should generate their own energy
too. Buildings should be healthy
and inspirational, optimising the
benefits of daylight and clean
air. They should be designed,
constructed and operated to
protect natural resources and
conserve water as much as
possible. Above all they must
be safe, protecting people and
property from fire and other
natural hazards.
Our Culture and Values
Kingspan has grown from a family
business and many of the values
associated with family businesses
form the backbone of our culture
today. The business has been built
on trust in the integrity of our
people and of our offering. We
value this trust and recognise it as
being fundamental to our ongoing
success. We are entrepreneurial,
collaborative, honest, and we stand
behind a common cause – better
buildings for a better world.
We are innovative. We are the
market leader in the field of high-
performance building envelope
solutions, which ensure lifetime
carbon and resource savings. We
have gained this position through
a creative and solutions driven
mindset, which continues to inform
our innovation agenda today.
We think long-term. The strategy of
the business is driven by long-term
ambitions and not by quarterly
performance. The success of this
strategy can be seen in our long-
term growth. This ethos is apparent
in our multi-year commitments
such as our Planet Passionate
programme which will drive real,
positive impact for the environment
and forms a common global goal
across the business.
In 2023, we launched our People
Passionate programme which
focuses on the development and
retention of our most important
resource, our people.
Code of Conduct
Kingspan expects the highest
standards of integrity, honesty
and compliance with laws and
regulations from our employees,
our directors and our partners,
globally. We actively encourage
our employees to speak out if
they experience instances that are
not in keeping with the principles
outlined in our Code of Conduct.
All new joiners in Kingspan must
complete training on our Code of
Conduct. Our business success is
linked to our behaviours, and our
aspiration is to maintain a culture
where our everyday actions are
built on five core principles:
»
Clear, ethical and
honest behaviours and
communications;
»
Compliance with the law;
»
Respect for the safety and
wellbeing of colleagues;
»
Protection of our Group assets;
and
»
Upholding our commitment to
a more sustainable future.
Please see further detail at:
To advance materials,
building systems and
digital technologies to
address issues such as
climate change, circularity
and the protection of our
natural world.
Our strategic goals are aligned
with our mission to accelerate
a net zero emissions built
environment with people and
planet at its heart.
The foundation of
our strategy
To expand globally, bringing
high-performance building
envelope solutions to
markets which are at an
earlier stage in the evolution
of sustainable and efficient
building methods.
Oxygene
Marseille, France
Light, Air + Water
Shadometal solar
shading system
37
Business & Strategic Report
In a Nutshell
Annual Report & Financial Statements 2024
Kingspan Group plc
36
2024 IN A NUTSHELL
How we create value
»
Product innovation and differentiation
»
Excellent customer service
»
Energy efficient and sustainable building
envelope solutions
»
We operate our businesses to the highest
standards
»
We acquire excellent businesses
»
We recycle capital to optimise returns
»
We maintain financial discipline
»
We balance our portfolio of businesses
across product and geography
»
We are reducing our environmental impacts
through our Planet Passionate initiatives
273
Applications
»
Retail
»
Distribution
»
Leisure
»
Accommodation
»
Food
»
Manufacturing
»
Data Management
»
Infrastructure
Global
manufacturing
facilities
27,000+
Employees
»
Health & Safety
paramount
»
Management controls
»
Quality systems
»
Responsible supply
chain partnerships
How we operate
Value created
DRIVERS
CHANNEL
SECTOR
END-MARKET
85% Energy Efficiency & Conversion
15% Other
63% Direct
37% Via Distribution
12% Office & Data
26% Residential
62% Commercial & Industrial
75% New Build
25% Refurbishment
TRADING PROFIT1
€906.7m
+3%
REVENUE
€8.6bn
+6%
2023:
€8.1bn
2023:
€876.9m
EBITDA2
€1,140.3m
+7%
EPS
365.2c
+4%
ROCE
14.4 %
2023:
17.3%
DIVIDEND
54.8c
+4%
2023:
€1,067.8m
2023:
352.3c
2023:
52.9c
1 Operating profit before amortisation of intangibles.
2 Earnings before finance costs, income taxes, depreciation and amortisation.
Products
Geography
Light, Air +
Water
11%
Insulation
21%
Insulated
Panels
55%
Roofing +
Waterproofing
7%
Data
Solutions
6%
Central &
Northern
Europe
27%
Americas
22%
Rest of
World
8%
Western &
Southern Europe
43%
ASPLA Industrial
Building
Almería, Spain
Insulated Panels
Veneto 85 linear ceiling
Our people have delivered
another strong performance
CHIEF
EXECUTIVE’S
REVIEW
GENE
MURTAGH
In 2024, we delivered record
trading profit of €907m in
challenging markets, while
we invested €1,222m in
development activity sowing
the seeds for future growth.
1 Net debt pre-IFRS 16 per banking covenants
2 Net debt to EBITDA ratio is pre-IFRS 16 per banking covenants
3 Operating profit before amortisation of intangibles
Business Review
The finish to 2024 was particularly strong making
up for a slower start to the year. This momentum
towards year end resulted in total revenue for the
year reaching a record €8.6 billion, ahead of prior
year by 6%. EBITDA, trading profit and EPS also
achieved records at €1,140m, €907m and 365c
per share, respectively. Group trading margin was
10.5%. In all, this was a reasonable outcome given
the obvious economic headwinds, largely in Europe
and Australasia.
Notably, order intake in several of our key businesses
remained strong, building a backlog that bodes
well for the first half of 2025. The Insulated Panels
orderbook ended the year solidly ahead of prior year
in volume, with Data Solutions exiting 2024 with an
orderbook up over 30% in value.
2024 was a year of superb advances in our carbon
reduction and energy conservation processes
with more than 400 initiatives in our Planet
Passionate agenda now active. Since the
commencement of this distinctive programme in
2020, our like for like emissions have reduced by
80%. This demonstrates emphatically what can be
achieved on this front when it is given focus.
Operational Summary
Record performance in a tough environment
and improved momentum towards end of
year. Stronger overall margin in second half.
Insulated Panels sales were broadly in line
with prior year with a strong Americas
performance offset by more subdued activity
in several European markets. Emerging
regional scale in LATAM, exiting year with
c.€500m of annualised revenue. PowerPanel®
now launching in Ireland and the UK.
Insulation had a year of transition with a
significant increase in category breadth and
building blocks for the longer term. Strong
progress in acoustic insulation. Market entry
to the natural insulation category via the
acquisition of a majority stake in Steico and
the commissioning of a stonewool plant
acquired during year.
Step change in activity in Data Solutions
with sales up 36% reflecting increased
global data demand driven by artificial
intelligence applications. Energy efficiency
is mission critical, liquid cooling to fuel
further exceptional growth.
Breakthrough year in Roofing +
Waterproofing. Controlling stake acquired
in Nordic Waterproofing. Maiden acquisition
in the US and two scale organic investments
underway in Oklahoma and Maryland with
production planned for early 2026.
Light, Air + Water recorded a year of
consolidation and margin progress. North
America offers opportunities of scale and
agreement reached to acquire Mercor’s
daylighting business, headquartered in
Poland.
h
6%
Revenue up 6%
to €8.6bn,
(pre-currency,
up 6%).
h
3%
Trading profit3 up
3% to €907m,
(pre-currency,
up 3%).
8%
Acquisitions
contributed 8% to
sales growth and 5% to
trading profit growth.
h
6%
Profit after tax of
€691m (2023: €654m).
h
4%
Basic EPS up 4% to
365.2 cent. Diluted EPS
up 4% to 362.3 cent.
27%
Scope 1 and 2 GHG
emissions reduced by
27% year on year.
17.0%
Effective tax rate of
17.0% (2023: 17.7%).
28.5 c
Final dividend per
share of 28.5 cent
(2023: 26.6 cent)
giving a total
dividend for the
year of 54.8 cent
(2023: 52.9 cent).
€509.4m
Strong free cash
generation of €509.4m
(2023: €890.8m).
€1,573m
Year end net debt1
of €1,573.0m (2023:
€979.5m). Net debt
to EBITDA2 of 1.47x
(2023: 0.97x).
See page 50 for the Financial Review
Summary Numbers:
Malmö Docks
Sweden
Insulation
Kooltherm® K15C;
Kooltherm® K20
Annual Report & Financial Statements 2024
38
Kingspan Group plc
39
Chief Executive’s Review
Business & Strategic Report
Business Review (continued)
2024 marked a milestone year in development
activity with investments in acquisitions and
capex totalling €1,222m. The most significant
component of this related to a 56.4% additional
stake acquired in Nordic Waterproofing bringing
the Group’s total position to 87.4% as at 31
December 2024 and the 51% holding acquired in
Steico, the world’s largest manufacturer of wood
fibre insulation.
By market, the picture varied more than any year
in the recent past. North America performed well
and activity in LATAM was also very encouraging.
France delivered a strong performance whilst
Germany and the Nordics were weaker, as was the
case in Australasia. Although the UK market has
been generally under pressure, our Insulated Panels
and Insulation businesses delivered solid results.
Ireland was a standout positive performer.
Planet Passionate and our Impact
GHG emissions from our like for like operations
since 2020 are down by 80%, despite our business
growth. This is the result of more than 400
initiatives globally, 150 of which were activated
in 2024 alone. In 2024, we were powered by over
50% renewable energy, and over 30% of our
consumption was generated on-site. Steico is
powered largely by biomass on-site, including bark
from the timber raw materials, and over 55% of
our freehold facilities worldwide have significant
on-site solar.
In 2025, we will partner on a marquee project
which will provide the entire space heating for
a Kingspan 80,000m2 manufacturing facility
and a third-party data centre. The solar energy
will power the data centre with the associated
offtake heating our facility, using a ‘solar to
data centre to hot air’ system. This will replace
approximately one million litres of our annual oil
usage and we plan to extend this system to other
plants in the years ahead.
As part of our 2025-2030 programme update, and
to replace the targets achieved ahead of schedule,
we have set three new targets reflecting the
strong momentum:
»
ISO 50001 energy management certification on
all large sites by 2030
»
1.5 million tonnes of recycled and renewable
raw material use annually by 2030
»
Facilitate 20 product takeback and recycling
schemes by 2030
Energy use and baseline GHG emissions have
increased by over 300% and 100%, respectively,
since 2020 due to organic growth and acquisitions.
To reflect the significant increase in the scope
and scale of our global operations, we have also
updated our carbon targets.
Caption
Location
Section
Product
Underlying
business1
Whole
business2
Planet Passionate Targets
Target
Year
2020
2024
2020
2024
Carbon
»
Net Zero Carbon Manufacturing -
scope 1 & 2 GHG emissions3
(tCO2e)
2030
409,7464
82,865
870,4824,5
337,8375
»
50% reduction in product CO2e
intensity from primary supply
partners (% reduction)
2030
-
3.9
-
3.9
»
Zero emission company funded
cars⁶ (annual replacement %)
2025
11
89
11
86⁷
Energy
»
60% direct renewable energy (%)
2030
19.94
43.3
19.9⁴
59.4
»
20% on-site renewable energy
generation (%)
2030
4.9
10.2
4.9
30.3
»
Solar PV systems on all wholly
owned sites (%)
2030
20.7⁴
64.0
20.7⁴
56.8
Circularity
»
Zero company waste to landfill
(tonnes)
2030
18,6224
7,088
18,6224
12,536
»
Recycle 1 billion PET bottles into our
manufacturing processes annually
(million bottles)
2025
573
1,102
573
1,102
»
QuadCore® products utilising
recycled PET (no. of sites)
2025
1
12
1
12
Water
»
Harvest 100 million litres of
rainwater annually (million litres)
2030
20.1
62.1
20.1
63.2
»
Support 5 ocean clean-up projects
(no. of projects)
2025
1
5
1
5
1 Underlying business includes manufacturing, assembly and R&D sites within the Kingspan Group in 2020 and all organic growth to date.
2 Whole business includes manufacturing, assembly and R&D sites within the Kingspan Group, excluding acquisitions made after 30 September
2024 and three minor sites acquired in 2023, which have negligible environmental impacts due to data unavailability.
3 Excluding biogenic emissions. Scope 2 GHG emissions calculated using market-based methodology.
4 Restated figures due to improved data collection, change in calculation methodologies and site disposal.
5 GHG emissions were recalculated due to acquisitions that occurred in 2021 through to 30 September 2024.
6 Kingspan defines a zero emissions car as a vehicle with zero tailpipe emissions. The boundary does not include the energy used to power the
vehicle or the embodied emissions from manufacturing.
7 Due to data unavailability, Steico and Mineral Insulation are excluded.
Deniz Mall
Baku, Azerbaijan
Insulated Panels
KingZip standing seam
Annual Report & Financial Statements 2024
40
Kingspan Group plc
Business & Strategic Report
41
Chief Executive’s Review
In 2019, Kingspan set a target to achieve a
90% absolute reduction in Scope 1 and 2 GHG
emissions1 by 2030, from a 2020 baseline. As
of the end of 2024, we have reached an 80%
reduction in Scope 1 and 2 emissions from
2020, excluding acquisitions, and 61% including
acquisitions. Given the Group’s rapid growth,
we’ve adjusted this target to a 65% reduction
by 2030, including current acquisitions and
potential organic growth out to 2030. As a result,
the updated target is projected to achieve an
additional reduction of 197,000 tCO2e by 2030,
beyond the original commitment.
We have also re-evaluated our target to reduce
the carbon intensity of key raw materials from
50% to 15% by 2030, reflecting the pace of
development by suppliers, regulators and
customers. Annual replacement of zero emissions
company cars will be >90% from 2025. Further
detail on our 2025–2030 targets is outlined in our
Planet Passionate report.
Investing in our Future
Over the course of the year we invested a total
of €1,222m across a significant number of
acquisitions and organic projects. We completed
19 acquisitions in the year, the largest of which
were the controlling stakes in both Steico and
Nordic Waterproofing. In addition, we continued
our core bolt-on strategy by adding a number
of strategic small and medium-sized businesses
around the world. Beyond this, a significant
number of new and extended manufacturing
facilities were completed or commissioned for
Insulated Panels in the US, Southeast Asia and
Australia, as well as new plants to support the
rapid growth of both the Data Solutions and
Roofing + Waterproofing businesses. In Ukraine,
after two years of careful navigation, we now have
planning approval for our campus in Lviv. We plan
to start development shortly and work it through
to completion over the coming three to five years.
Innovation in Action
LEC (lower embodied carbon), natural materials,
and PowerPanel® remain the priority focus of our
innovation agenda.
The development of PowerPanel® has been
completed. We have tested and satisfied the
requirements of FM Approvals Standard 4478,
which is a world first, and the product is now
launching in Ireland and the UK as the first
stage in a global rollout. Early interest in this
ground-breaking solution has been encouraging
and we expect deliveries to commence in the
second quarter. Launches in other regions can be
expected later in 2025.
Last year, several LEC products were launched
globally across the various business segments with
more targeted in 2025. This is central to our future
innovation plans.
Our entry into the natural insulation category with
the acquisition of a majority stake in Steico, the
world-leader in wood fibre, firmly places Kingspan
at the vanguard of this growing category.
Circularity innovation is also central for Kingspan
and two glycolysis processes are now up and
running in Spain and the Netherlands. These
convert waste insulation back into a polyol raw
material, which then forms part of new insulation
products, contributing to the acceleration of
the circular economy. We plan to commission a
number of glycolysis plants located at our key
insulation sites worldwide in the coming years.
Furthermore, we have approved the development
of an insulated panel take-back processing plant
at Joris Ide in Belgium.
We believe that these and further innovations in
the pipeline will form a meaningful part of the
Group’s ground breaking proposition in the future.
Product and System Integrity
Our enhanced product integrity programme
is deeply embedded across the Group. We are
pleased to report that we achieved our target
to certify 85 of our global sites to the ISO
37301 standard by the end of 2024. ISO 37301
is the leading global standard for establishing,
developing and monitoring compliance systems.
For 2025, we plan to have 105 sites certified by
year end. In addition, 490 third party external
products and system audits took place throughout
2024 compared to 480 in 2023.
CC Estepark
Castellón, Spain
Insulated Panels
Italia 30 linear
ceiling
New LEC products,
natural materials and
PowerPanel® innovations
position us at the
vanguard of energy
efficient building
envelope solutions.
Advances in glycolysis
processes, accelerating
the circularity of our
industry, will further
develop our future
proposition.
GHG emissions from our
like for like operations
since 2020 are down 80%.
1 Excluding biogenic emissions. Scope 2 emissions are market-based.
Annual Report & Financial Statements 2024
Business & Strategic Report
43
Chief Executive’s Review
42
Kingspan Group plc
TURNOVER
€4,737.5m
0% 1
2023:
€4,722.1m
TRADING PROFIT
€545.5m
-5%
2023:
€573.8m
TRADING MARGIN
11.5%
-70bps
2023:
12.2%
TURNOVER
€1,824.7m
+19% 1
2023:
€1,528.0m
TRADING PROFIT
€147.8m
+2%
2023:
€145.1m
TRADING MARGIN
8.1%2
-140bps
2023:
9.5%
Insulated Panels
The performance of the business
in North America was most
encouraging, particularly in the US,
but also in Canada and Mexico.
Conversion towards modern
methods of construction is growing
and our performance has been
bolstered by large wins in the US
tech and automotive sectors. Data
centres, battery plants, auto-
assembly and microchip facilities
have all been meaningful drivers for
us. Pre-engineered metal buildings
are converting increasingly to
insulated panels and some recent
sizeable orders for our OneDek®
flat roof panel should open up
longer-term traditional built-up
roof conversion. LATAM, now at an
annualised revenue of c.€500m,
grew strongly and we expect to
build upon this in 2025 having
recently entered both Chile and
Paraguay by way of majority stakes
in local partnerships.
European markets were more
subdued in general with volume
growth in France, and more
recently in Germany, compensating
for weaker performances in the
Nordics and Iberia. QuadCore®
continued to grow, now at 29% of
insulated panel value globally, and
has been a key driver of divisional
margins. Ireland delivered a strong
performance and whilst the UK
was softer, recent order intake and
pipeline bode very well for 2025. This
should be further boosted by the
imminent launch of PowerPanel®.
We experienced an improved
performance in the Middle East and
whilst Australia disappointed, we
anticipate our new mineral fibre
panel plant near Sydney will drive
growth in 2025. During the year we
also commenced manufacturing
operations in New Zealand, Vietnam
and Thailand all of which are exciting
prospects for the years ahead.
1 Comprising underlying -2% and
acquisitions +2%.
Insulation
2024 was a testing and
transformative year for the
Insulation business. Many European
markets were under pressure
coinciding with cost-driven price
deflation and some tapering off
in the district heating category.
The latter ought to be a longer-
term growth engine despite having
tapered this year. We anticipate
performance improvement across
the rigid board operations this
year, now less than 30% of sales
in the division, with the prospect
of some pickup in residential
activity. The commissioning of the
Kingspan Envertek stonewool plant
in Ronneburg, Germany was also
a margin headwind in the period
which should improve meaningfully
in the year ahead. This impacted
the divisional margin by 70bps in
the year.
In contrast, our acoustics and
interiors insulation activities had
an excellent year. With momentum
continuing to improve, and recent
market entry into the US, we aim
to deliver further growth in this
business. Similarly, our first year
with Steico, the world’s largest
natural insulation producer has
been encouraging. Commissioning
of the most advanced plant in the
industry in Gromadka, Poland, is
progressing well and should support
further growth in the year ahead.
The total investment in the plant
was c.€175m, the majority of which
was incurred pre-acquisition.
1 Comprising underlying
-9%, currency +1% and
acquisitions +27%.
2 8.8% excluding Kingspan
Envertek stonewool plant
start up costs.
Intergio
Arroyomolinos, Spain
Insulated Panels
Mywall panels
Queen’s Business
School
Belfast, UK
Insulation
Kooltherm® K8 Cavity
Board; Kingspan
GreenGuard® GG300
Annual Report & Financial Statements 2024
44
Kingspan Group plc
Business & Strategic Report
45
Chief Executive’s Review
TURNOVER
€516.2m
+36% 1
TRADING PROFIT
€77.9m
+52%
2023:
€51.2m
TRADING MARGIN
15.1%
+160bps
2023:
13.5%
2023:
€379.7m
2024 was a year focused on
consolidation across our Light,
Air + Water activities following
several years of acquisition-led
growth. The business is largely
concentrated in Europe for
the time being, markets which
naturally presented challenges last
year. Despite this, both trading
profit and trading margin improved
further in the year.
In North America the business
delivered a solid outcome driven by
a strong performance in rooflight
elements which we expect to grow
further as we advance our presence
in this key region.
In November 2024 we signed an
agreement to acquire Mercor’s
daylighting business headquartered
in Gdansk, Poland. This will provide a
significant boost as we push deeper
into central and eastern Europe.
TURNOVER
€961.1m
-1% 1
2023:
€967.4m
TRADING PROFIT
€79.7m
+1%
2023:
€78.7m
TRADING MARGIN
8.3%
+20bps
2023:
8.1%
1 Comprising underlying -2% and
acquisitions +1%.
Data Solutions
Fujirebio GoCo
Mölndal,
Sweden
Insulated Panels
Dri-Design®
Cassette System
2024 was a year of significant and
exciting transition for this division
as it accelerated capacity growth
around the globe to support our
broadening client and applications
base. Revenue grew by 36% and
the backlog is now 33% higher than
it was at the end of 2023, which
should deliver another year of strong
growth in 2025.
This requires further rapid capacity
expansion and, in addition to the
recently opened Virginia plant, an
even larger facility will be added in
Arkansas this year. In Europe, the
demand patterns are similar and
will drive output growth for our
facilities in Germany, Belgium and
Ireland. We also plan to establish
production capacity in Southeast
Asia, supporting the manufacturing
presence we have in Sydney,
Australia.
The Q-nis business acquired in 2023
has bedded in exceptionally well.
We are exploring further strategic
bolt-ons as well as opportunities
to expand our presence in liquid
cooling. This will further differentiate
the offering we provide to the data
giants around the world.
Light, Air + Water
1 Comprising underlying +27% and
acquisitions +9%.
Annual Report & Financial Statements 2024
46
Kingspan Group plc
47
Business & Strategic Report
Chief Executive’s Review
Four Frankfurt
Frankfurt, Germany
Light, Air + Water
Pressure Differential
System
TURNOVER
€568.5m
+15% 1
2023:
€493.4m
TRADING PROFIT
€55.8m
+99%
TRADING MARGIN
9.8%
+410bps
2023:
5.7%
2023:
€28.1m
This growing platform for the
Group really broke through in
2024 doubling its profitability.
The business expanded margins
substantially, gained a foothold in
the US with new site acquisitions as
well as bolting on IB Roof Systems to
provide a complementary front-end
in this key region. The performance
of the flat roofing membrane
business was a key driver of the
result, as was an improvement in
underlayment activity.
Over the course of 2024, we increased
our ownership position in the Swedish
quoted Nordic Waterproofing to
87.4%. We look forward to driving
growth and operational advances
as we maximise our impact in the
Nordic markets.
We advanced significantly in
North America, acquiring two
existing large industrial facilities
which will accelerate our entry
into the commercial roofing and
insulation sector. We expect to
start production in Oklahoma and
Maryland in early 2026 with the
aim of growing and attaining a 15%
market share of the addressable
sector. This will require further
plants, which we are working on,
and further bolt-on activity as we
deploy approximately €750m on this
advance over a five-year timeframe.
1 Comprising underlying +4%, currency
-3% and acquisitions +14%.
The Falcon ATC
Tower
Fujairah, UAE
Insulated Panels
KingZip Infiniti roof
and wall systems
Looking Ahead
2024 was a year of strong progress for
Kingspan. Whilst end markets were
tough, we ploughed on regardless
recording a strong bounce back in the
second half of the year.
€1.2 billion of new capital was
deployed in 2024 across our business
around the world. The seeds have
been sown for the next stage of our
continuum of growth. We do not
distract ourselves by short-term
gyrations in end markets, we think
long and build long.
2025 will inevitably offer up its fair
share of challenges although we
are excited for the year ahead. The
structural demand for an energy
efficient built environment continues
to advance around the world. We
are uniquely placed to harness that
with the breadth of our offering, our
Planet Passionate agenda and our
strong balance sheet.
Our order backlogs are healthy in
general and are soaring in the data
and artificial intelligence arena. This
gives us confidence that 2025 will be
another year of progress at Kingspan.
Gene Murtagh
Chief Executive Officer
25 February 2025
Bei der Mierbaach
Bascharage,
Luxembourg
Roofing +
Waterproofing
EVALON®
waterproofing
membrane;
aluminium profiles
Roofing +
Waterproofing
Business & Strategic Report
49
48
Kingspan Group plc
Annual Report & Financial Statements 2024
Chief Executive’s Review
The Financial Review provides
an overview of the Group’s
financial performance for the
year ended 31 December 2024
and of the Group’s financial
position at that date.
FINANCIAL
REVIEW
GEOFF
DOHERTY
Overview of result
Group revenue increased by 6% to
€8.6bn (2023: €8.1bn) and trading profit
increased by 3% to €906.7m (2023:
€876.9m) with a decrease of 30 basis
points in the Group’s trading profit
margin to 10.5% (2023: 10.8%). Basic EPS
for the year was 365.2 cent (2023: 352.3
cent), representing an increase of 4%.
The Group’s underlying sales and trading profit growth by division are set out below:
Sales
Underlying
Currency
Acquisition
Total
Insulated Panels
-2%
-
+2%
-
Insulation
-9%
+1%
+27%
+19%
Data Solutions
+27%
-
+9%
+36%
Light, Air + Water
-2%
-
+1%
-1%
Roofing + Waterproofing
+4%
-3%
+14%
+15%
Group
-2%
-
+8%
+6%
The Group’s trading profit measure is earnings before interest, tax, and amortisation of intangibles:
Trading Profit
Underlying
Currency
Acquisition
Total
Insulated Panels
-6%
-
+1%
-5%
Insulation
-21%
+1%
+22%
+2%
Data Solutions
+42%
-
+10%
+52%
Light, Air + Water
-
-
+1%
+1%
Roofing + Waterproofing
+81%
-5%
+23%
+99%
Group
-2%
-
+5%
+3%
The key drivers of sales and trading profit performance in each division are set out in the Chief
Executive Review.
Annual Report & Financial Statements 2024
50
Kingspan Group plc
Business & Strategic Report
51
Melbourne Airport
Australia
Insulated Panels
KingZip standing seam
Financial Review
Net finance costs
Net finance costs for the year decreased by
€9m to €32.0m (2023: €41.0m). The Group’s net
interest expense on borrowings was €43.3m (2023:
€37.3m). That increase in net interest expense
reflects the increase in outstanding debt year on
year. Lease interest of €7.2m (2023: €6.0m) was
recorded for the year. €1.3m (2023: €1.2m) was
recorded in respect of a non-cash finance charge
on the Group’s defined benefit pension schemes.
Dividend income of €3.7m (2023: €3.5m) was
received in respect of the Group’s investment
in Nordic Waterproofing in the period prior to
acquiring a controlling stake. A one off benefit of
€16.1m was recorded due to a change in the fair
value of deferred contingent consideration.
Dividends and share buyback
The Board has proposed a final dividend of 28.5
cent (2023: 26.6 cent) per ordinary share payable
on 21 May 2025 to shareholders registered on the
record date of 11 April 2025. An interim dividend
of 26.3 cent per ordinary share was declared
during the year (2023: 26.3 cent). In summary,
the total dividend for 2024 is 54.8 cent compared
to 52.9 cent for 2023. This payout is in line with
our shareholder returns policy. In addition, during
the year the Group purchased 1,500,000 of its
own shares for an average price of €88.85 per
share. This is consistent with the Group’s stated
strategy of maintaining a stable share count to
avoid dilution associated with share option and
other issuances.
Retirement benefits
The primary method of pension provision
for current employees is by way of defined
contribution arrangements. The Group has three
legacy defined benefit schemes in the UK which
are closed to new members and to future accrual.
The total pension contributions to these schemes
for the year amounted to €nil (2023: €0.8m) and
the expected contributions for 2025 are €nil. In
addition, the Group has smaller defined benefit
pension liabilities in Mainland Europe. The net
pension liability in respect of all defined benefit
schemes was €37.5m as at 31 December 2024
(2023: €37.0m).
Intangible assets and goodwill
Intangible assets and goodwill increased during
the year by €755.9m to €3,604.9m (2023:
€2,849.0m). Intangible assets and goodwill of
€776.8m (2023: €200.8m) were recorded in the
year relating to acquisitions completed by the
Group. An increase of €23.3m (2023: decrease of
€3.4m) arose due to year end exchange rates used
to translate intangible assets and goodwill other
than those denominated in euro. An increase of
€0.4m (2023: €6.0m) was recorded relating to the
purchase of intangible assets. There was an annual
amortisation charge of €44.6m (2023: €41.7m).
Financial key performance indicators
The Group has a set of financial key performance
indicators (KPIs) which are presented in the
table below. These KPIs are used to measure the
financial and operational performance of the
Group and to track ongoing progress in achieving
medium and long term targets to maximise
shareholder return.
Key performance indicators
2024
2023
Basic EPS growth
+4%
+7%
Sales performance
+6%
-3%
Trading margin
10.5%
10.8%
Free cashflow (€m)
509.4
890.8
Return on capital employed
14.4%*
17.3%
Net debt/EBITDA
1.47x
0.97x
*15.1 % annualised for acquisitions
(a) Basic EPS growth. The growth in EPS is
accounted for primarily by a 3% increase in
trading profit.
(b) Sales performance of +6% (2023: -3%) was
driven by an 8% contribution from acquisitions
and a 2% decrease in underlying sales. The
decrease in underlying sales reflected, primarily,
the market mix of sales and pass through effect of
lower raw material pricing mainly during the first
half of the year.
(c) Trading margin by division is set out below:
2024
2023
Insulated Panels
11.5%
12.2%
Insulation
8.1%
9.5%
Data Solutions
15.1%
13.5%
Light, Air + Water
8.3%
8.1%
Roofing + Waterproofing
9.8%
5.7%
The Insulated Panels division trading margin
decreased year on year reflecting the geographic
market mix of sales. The trading margin decrease
in the Insulation division primarily reflects the
category mix of sales, the initial impact of
acquisitions and commissioning costs of the
acquired stonewool plant. The increased trading
margin in Data Solutions reflects strong volume
growth and associated operating leverage. The
increased trading margin in Light, Air + Water
reflects the ongoing focus on specification.
The Roofing + Waterproofing trading margin
progressed year on year reflecting volume growth,
initial synergies and operating efficiencies.
(d) Free cashflow is an important indicator and
reflects the amount of internally generated capital
available for re-investment in the business or for
distribution to shareholders.
Free cashflow
2024
2023
€m
€m
EBITDA*
1,140.3
1,067.8
Lease payments
(68.7)
(60.5)
Movement in working
capital**
10.0
298.1
Movement in provisions
(26.3)
(2.6)
Net capital expenditure
(333.8)
(233.5)
Defined benefit pension
scheme buy in settlement
-
(15.9)
Net finance costs paid
(41.1)
(36.3)
Income taxes paid
(184.3)
(147.5)
Other including non-cash
items
13.3
21.2
Free cashflow
509.4
890.8
* Earnings before finance costs, income taxes,
depreciation and amortisation
** Excludes working capital on acquisition but includes
working capital movements since that point
Working capital at year end was €1,027.2m (2023:
€872.2m) and represents 11.4% (2023: 11.3%) of
annualised sales based on fourth quarter sales.
This metric is closely managed and monitored
throughout the year and is subject to a certain
amount of seasonal variability associated with
trading patterns and the timing of significant
purchases of steel and chemicals.
(e) Return on capital employed, the calculation
of this KPI has been amended following detailed
assessment. The revised measurement is more
reflective of economic returns on the Group’s
growing capital base. It is now calculated by
reference to trading profit plus the Group’s share
of the results of associates divided by capital
employed (calculated as net assets, excluding net
debt and adjusted for cumulative amortisation
of intangibles not fully amortised). The decrease
year on year reflects the 30bps decrease in trading
margin and the increase in capital during the year,
mainly acquisitions, with the associated returns
building overtime. The creation of shareholder
value through the delivery of long term returns well
in excess of the Group’s cost of capital is a core
principle of Kingspan’s financial strategy.
(f) Net debt to EBITDA measures the ratio of
net debt to earnings and at 1.47x (2023: 0.97x)
is comfortably less than the Group’s banking
covenant of 3.5x in both 2024 and 2023. The
calculation is pre-IFRS 16 in accordance with the
Group’s banking covenants.
Acquisitions
The Group spent €888.3m on acquisitions during
the year as follows:
In January 2024, the Group acquired 51% of the
share capital of Steico with an option to acquire a
further 10% in the future. Steico, headquartered
in Germany, is the world leader in wood fibre
insulation and wood-based building envelope
products and is listed on the unofficial markets
of several German Stock Exchanges. The total
consideration paid, including net debt acquired,
amounted to €337.2m.
Over the course of 2024, the Group reached a
controlling shareholding of 87.4% of the share
capital of Nordic Waterproofing increasing by
56.4% during 2024. Nordic Waterproofing is a
publicly listed company on Nasdaq Stockholm
and is a market leader in waterproofing products
and services for the protection of buildings and
infrastructure. The total consideration paid
during 2024, including net debt acquired on
consolidation, amounted to €272.9m.
The Group also made other smaller acquisitions
during the year for a combined cash consideration,
including net debt acquired, of €278.2m:
»
The Insulated Panels division acquired the
business and assets of Conqueror in New
Zealand in January 2024, 100% of the share
capital of Rafinor and Eftex in Denmark, 100%
of the share capital of Clastina in Belgium in
April 2024 and 70% of the share capital of
Fatek Advance Insulation in Thailand in June
2024. The division acquired 100% of the share
capital of KZK in the Netherlands in July 2024
and 100% of the share capital of Siegmetall
in Germany in September 2024. The division
also acquired 100% of the share capital of PSP
Profile in France in October 2024, 85% of the
share capital of Solen Energy in the UK and
51% of the share capital of Villalba in Chile in
November 2024, and acquired certain business
and assets of TPF in France in December 2024.
A controlling interest in a venture in Paraguay
was also acquired during the financial year.
»
In April 2024 the Insulation division acquired
the stonewool manufacturing business
and assets in Germany from Karl Bachl
Kunststoffverarbeitung GmbH & Co. KG as
well as 75% of the share capital of TreeTops
Annual Report & Financial Statements 2024
52
Kingspan Group plc
Business & Strategic Report
53
Financial Review
in Denmark. In May 2024, the division also
acquired the acoustic business and assets of
Isolco in the Netherlands.
»
In April 2024 the Light, Air + Water division
acquired 100% of the share capital of Visa Oeste
and Petaproj in Portugal and in October 2024
acquired 100% of the share capital of National
Poly Industries in Australia.
»
In September 2024 the Roofing +
Waterproofing division acquired 90% of the
share capital of IB Roof Systems in the USA.
»
Payment of deferred contingent consideration
of €1.1m was incurred on acquisitions made in
previous years.
EU Taxonomy and CSRD
Climate related disclosures are required under the
EU Taxonomy Regulation (Sustainable finance
taxonomy - Regulation (EU) 2020/852) and by the
Corporate Sustainability Reporting Regulations,
2024. These disclosures are included in the 2024
CSRD Sustainability Statement within this report.
Capital structure and Group financing
The Group funds itself through a combination
of equity and debt. Debt is funded through a
combination of public bond debt, syndicated bank
facilities, and private placement loan notes. The
principal syndicated facility is a green revolving
credit facility of €800m entered into in May 2021
with a committed term to May 2027. There were no
drawings on this facility at year end.
In October 2024, the Group established a new
European Medium Term Note programme and
boosted liquidity with a debut public bond in the
European market of €750m for 7 years at a fixed
annual rate of 3.5%. In addition, as part of the
Group’s longer-term capital structure, the Group
has total private placement loan notes of €1,410m
(2023: €1,592m).
The weighted average maturity of all outstanding
private placement loan notes as of 31 December
2024 was 4.5 years (2023: 5 years).
The weighted average maturity of all drawn debt
facilities for wholly owned subsidiaries is 5 years
(2023: 4.4 years).
As well as ongoing free cashflow generation, the
Group has significant available undrawn facilities
and cash which provide appropriate headroom
for operational requirements and development
funding. Total available headroom was €1,950m
at 31 December 2024 (2023: €1,874m).
Net debt
Net debt increased by €593.5m during 2024 to
€1,573.0m (2023: €979.5m). This is analysed in
the table below:
Key financial covenants
The majority of Group borrowings are subject
to primary financial covenants calculated in
accordance with lenders’ facility agreements
which exclude the impact of IFRS 16:
»
A maximum net debt to EBITDA ratio of
3.5 times; and
»
A minimum EBITDA to net interest coverage
of 4 times.
The performance against these covenants in the
current and comparative year is set out below:
2024
2023
Covenant
Times
Times
Net debt/
EBITDA
Maximum
3.5
1.47
0.97
EBITDA/Net
interest
Minimum
4.0
24.7
27.0
Investor relations
Kingspan is committed to interacting with the
international financial community to ensure a full
understanding of the Group’s strategic plans and
its performance against these plans. During the
year, the executive management and investor
team conducted 483 institutional one-on-one and
group meetings, including presenting at 7 capital
market conferences.
Share price and market capitalisation
The Company’s shares traded in the range of
€68.60 to €91.45 during the year. The share price at
31 December 2024 was €70.45 (29 December 2023:
€78.40) giving a market capitalisation at that date
of €12.8bn (2023: €14.3bn). Total shareholder return
for 2024 was -9.5% (2023: +56.2%).
Financial risk management
The Group operates a centralised treasury function
governed by a treasury policy approved by the
Group Board. This policy primarily covers foreign
exchange risk, credit risk, liquidity risk and interest
rate risk. The principal objective of the policy is
to minimise financial risk at reasonable cost.
Adherence to the policy is monitored by the CFO
and the Internal Audit & Compliance function. The
Group does not engage in speculative trading of
derivatives or related financial instruments.
On behalf of the Board
Geoff Doherty
Chief Financial Officer
25 February 2025
Movement in net debt
2024
2023
€m
€m
Free cashflow
509.4
890.8
Acquisitions and divestments
(775.3)
(219.6)
Acquisition/disposal of minority interest
(93.4)
1.0
Purchase of financial asset
(17.5)
(22.2)
Purchase of investment in associates
(1.0)
-
Deferred consideration paid
(1.1)
(6.6)
Repurchase of treasury shares
(134.6)
(0.7)
Dividends paid
(96.6)
(91.2)
Dividends paid to non-controlling interests
(1.0)
(0.9)
Dividends from investment in associates
0.3
-
Cashflow movement
(610.8)
550.6
Exchange movements on translation
17.3
9.5
Movement in net debt
(593.5)
560.1
Net debt at start of year
(979.5)
(1,539.6)
Net debt at end of year
(1,573.0)
(979.5)
Annual Report & Financial Statements 2024
54
Kingspan Group plc
Business & Strategic Report
55
Financial Review
RISK & RISK
MANAGEMENT
To ensure that risk awareness is set at an
appropriate level, the Audit & Compliance
Committee assist the Board by taking delegated
responsibility for risk identification and
assessment, in addition to reviewing the Group’s
risk management and internal control systems and
making recommendations to the Board thereon.
The chairman of the Audit & Compliance
Committee reports to the Board at each board
meeting on its activities, both for audit matters
and risk management. The activities of the Audit &
Compliance Committee are set out in detail in the
Report of the Audit & Compliance Committee.
The Board monitors the Group’s risk management
systems through its consultation with the Audit
& Compliance Committee but also through
the Group’s divisional monthly management
meetings, where at least two executive directors
are present. Business risks and trends are the
focus of each division’s monthly management
meeting, where divisional business performance is
also assessed against budget, forecast and prior
year. Key performance indicators are also used
to benchmark operational performance for all
manufacturing sites.
In addition to this ongoing assessment of risk
within the divisions, the Audit & Compliance
Committee oversees an annual risk assessment for
the Group whereby each divisional management
team is formally asked to prepare a detailed risk
assessment for their business. This assessment
involves evaluating Group-wide risks, as put
forward by the Board, and presenting additional
risks that are specific to their business.
While it is acknowledged that the Group faces a
variety of risks, the Board, through the processes
set out above, has identified the following
principal risks and uncertainties that could
potentially impact upon the Group’s short-to
medium-term strategic goals:
Overall responsibility for
risk management lies with
the Board who ensure
that risk awareness is set
at an appropriate level.
As a leading building products
manufacturer in a highly
competitive international
environment, Kingspan is
exposed to a variety of risks
and uncertainties which are
monitored and controlled
by the Group’s internal risk
management framework.
Louisiana
Universities Marine
Consortium
Louisiana, USA
Insulated Panels
QuadCore® Karrier
Panel® wall panel
Annual Report & Financial Statements 2024
56
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57
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Risk & Risk Management
Annual Report & Financial Statements 2024
Kingspan Group plc
56
Volatility in the macro environment
Risk and impact
Actions to mitigate
Kingspan products are targeted at
both the residential and non-residential
(including industrial, retail, commercial,
public sector and office) construction
sectors. As a result, demand is dependent
on activity levels which may vary by
geographic market and is subject to the
usual drivers of construction activity
(i.e. general economic conditions and
volatility, pandemics, political uncertainty
and wars in some regions, interest rates,
business/consumer confidence levels,
supply chain disruption, unemployment
and population growth).
While construction markets are
inherently cyclical, changing building and
environmental regulations continue to
act as an underlying positive structural
trend in demand for many of the Group’s
products.
The exposure to cyclicality or downturn of any one construction
market is partially mitigated by the Group’s geographic
diversification, by end application and by product.
As set out in the Business Model & Strategy, the Group has mitigated
this risk through diversification as follows:
»
an established globalisation strategy resulting in 273 global
manufacturing sites and a commercial presence in more than 80
countries;
»
the launch of new innovative products and an approach of
continual improvements to existing product lines; and
»
acquisitions made during the year enhance the geographic and
product diversification of the Group.
Product failure
Risk and impact
Actions to mitigate
A key risk to the Kingspan business is
the potential for functional failure of
our products which could lead to health,
safety, and security issues for both our
people and our customers.
The Kingspan brands are well established
and are a key element of the Group’s
overall marketing and positioning
strategy. In the event of a product failure,
the Kingspan brands could be damaged
and if so, this could lead to reputational
damage, a loss of market share, and
other adverse consequences.
Dedicated structures and processes are in place to manage and
monitor product quality controls throughout the business:
»
New products go through rigorous internal testing at the
Group’s Global Innovation Centre, IKON, and industry leading
Kingspan Fire Engineering Research Centre before proceeding
to a certification process which is undertaken by internationally
recognised and independent authorities before being brought
to market.
»
The Group Head of Internal Audit & Compliance ensures
a rigorous approach to certification, testing and product
compliance across the Group and ensures consistent and robust
application of processes centred around our core commitment to
product safety. The Group Product Compliance team completed
the audit of 123 manufacturing sites in 2024.
»
A Group Marketing Integrity Manual (MIM) has been designed
to incorporate the Group Code of Conduct. The MIM establishes
a compliance framework for product marketing materials
and websites. Compliance with the MIM is subject to audit
by the Group Internal Audit function under a dedicated audit
programme.
»
The Group’s Product Compliance function has been accredited to
the leading independent standard in compliance, ISO 37301. 85
manufacturing sites are already certified to ISO 37301 with a plan
to have 105 sites certified by the end of 2025.
»
Quality management is a key factor in ensuring long-term
product performance. ISO 9001 is a globally recognised standard
for quality management. 153 of Kingspan’s manufacturing sites
are accredited to ISO 9001.
»
The terms of reference for the Audit & Compliance Committee
include oversight of the product compliance agenda.
»
Our businesses employ quality control specialists and operate strict
policies to ensure consistently high standards are maintained in
addition to the sourcing and handling of raw materials.
»
Effective training is delivered to our employees.
»
Proactive monitoring of the public policy, regulatory and
legislative environment.
Innovation
Global
Planet Passionate
Completing the Envelope
Innovation
Global
Planet Passionate
Completing the Envelope
Annual Report & Financial Statements 2024
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Risk & Risk Management
Failure to innovate
Risk and impact
Actions to mitigate
Failing to successfully manage and
compete with new product innovations,
changing market trends and consumer
preferences could have an adverse effect
on Kingspan’s market share, future
growth and profitability of the business.
Innovation is one of Kingspan’s four strategic pillars to increasing
shareholder value and delivering on our mission to accelerate a net
zero emissions built environment.
»
There is a continual review of each division’s product portfolios
at both the executive and local management level to ensure
that they target current and future opportunities for profitable
growth.
»
The Group Head of Innovation and CEO host a bi-monthly
executive innovation forum where key product developments
and opportunities are discussed, and innovation strategies are
updated.
»
The Group’s innovation strategy is intertwined with its Planet
Passionate sustainability strategy. Ambitious Planet Passionate
goals require the Group to invest in expanding its existing range
of sustainable building products and establish market leading
supply chains for sustainable raw materials.
»
This risk is further mitigated by continuing innovation and
compelling marketing programmes. The launch of the IKON
Global Innovation Centre in 2019 has served to enhance the
capabilities of the Group to innovate.
»
The Kingspan Fire Engineering Research Centre enables large
scale fire testing to industry regulation standards thereby
accelerating the pace of innovation and certification on the path
to commercialisation.
»
Kingspan also has a deep understanding of changing consumer
and industry dynamics in its key markets and continues to
refine its omnichannel customer centric approach, enabling
management to respond appropriately to issues which may
impact business performance.
»
Kingspan has multiple touch points with our customers, engaging
directly on projects, attending trade shows and industry events
and through our Net Promoter Score (NPS) surveys. Insights from
these touch points directly inform innovation in our products and
in our service.
Climate change
Risk and impact
Actions to mitigate
Kingspan’s products
provide a solution to help
mitigate climate change,
particularly with respect to
reducing carbon emissions
in the built environment.
Climate change is therefore
both an opportunity and a
risk for Kingspan.
Climate risks within our
business include regulatory
changes, substitution risk
should we fail to maintain
our market leading
offering, rising energy or
carbon prices within our
own operations or in our
supply chain and physical
risk to our operations or
those of our suppliers.
Transforming building and construction is an important element of addressing the
climate crisis as they represent approximately 37% of energy-related carbon emissions.
Kingspan is uniquely placed to help support the decarbonisation of the building sector via
our extensive offering of high-performance, energy saving systems and solutions.
Risks relating to climate change are managed through a multi-disciplinary, and
company-wide, risk management process.
Examples of how climate change risks are mitigated include:
Planet Passionate
»
Following the successful completion of our Net Zero Energy programme (our
programme that focused on reducing energy consumption and increasing renewable
energy use where possible), Kingspan launched the next stage of our sustainability
journey in 2020, our 10-year Planet Passionate programme, which includes 11
ambitious targets in the areas of Carbon, Energy, Circularity and Water. This strategic
agenda will enable significant advances in the sustainability of both our business
operations and our products.
»
A core facet of our Planet Passionate programme is to reduce carbon emissions within
our value chain. To this end, we have been working with new and existing suppliers on
innovative raw materials, with lower embodied carbon and higher recycled content,
leading to lower embodied carbon (LEC) products across our portfolio.
Innovation
»
Our innovation agenda is inextricably linked with our Planet Passionate programme,
helping us to drive market leading products in the areas of carbon savings and
sustainability. Innovation is supported through ongoing investments such as the
opening of IKON in 2019.
»
In 2024, our insulation products sold globally are estimated to save 172 million tonnes
of CO2e over their lifetime. In addition, we estimate 44.1 billion litres of rainwater will
be harvested over the lifetime of the tanks we produced, and we recycled 1.1 billion
waste plastic bottles into our manufacturing processes.
»
In addition to internal innovation, Kingspan observes the market for inventive or
alternate materials which can add value to our ambition to offer the full spectrum of
energy efficient building envelope solutions, such as our investments in hemp, wood
fibre and wood wool insulations.
Digitalisation
»
Digital adoption is a key factor to enabling more efficiency and sustainability in
the manufacture, delivery, construction and operations of the built environment.
»
Enhanced digitalised processes for customer engagement provide faster and deeper
insight into the sustainability demands of our customers.
»
Our 2024 Building Information Modelling (BIM) & Digital Innovation Programme
drove the enhancement and introduction of several tools to improve the workflows
of our customers. Utilising the latest digital technologies, Kingspan aims to
empower its customers and partners with tailored digital solutions.
Global Presence
»
Kingspan operates out of 273 manufacturing sites across the globe, diversifying our
physical risk from climate change. We have also built relationships with a wide range
of global supply partners to limit the reliance on any one supplier or even a small
number of suppliers.
Innovation
Global
Planet Passionate
Completing the Envelope
Innovation
Global
Planet Passionate
Completing the Envelope
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Risk & Risk Management
Business interruption (including IT continuity)
Risk and impact
Actions to mitigate
Kingspan’s performance is dependent
on the availability and quality of its
physical infrastructure, its proprietary
technology, its raw material supply chain
and its information technology. The safe
and continued operation of such systems
and assets are threatened by natural
and man-made perils and are affected
by the level of investment available to
improve them.
Any significant or prolonged restriction
to its physical infrastructure, the
necessary raw materials or its IT systems
and infrastructure could have an
adverse effect on Kingspan’s business
performance.
»
Kingspan insists on industry leading operational processes and
procedures to ensure effective management of each facility.
The Group invests significantly in a rigorous programme of
preventative maintenance on all key manufacturing lines to
mitigate the risk of production line stoppages.
»
With 273 manufacturing sites globally, the impact of production
line stoppages is also mitigated by having business continuity
plans in place to allow for the transfer of significant production
volume to another plant in the event of a shutdown.
»
In addition, and as part of our Property Damage & Business
Interruption (PDBI) insurance, Kingspan is subject to regular
reviews of its manufacturing sites by external risk management
experts, with these reviews being aimed at optimising Kingspan’s
risk profile.
»
Kingspan continues to focus on developing, enhancing and
protecting its intellectual property (IP) portfolio. As a global
leader in building envelope solutions, Kingspan considers its IP
security to be paramount. In addition to trade secret policies and
procedures, Kingspan has developed appropriate IP strategies to
protect and defend against infringements.
»
To reduce Kingspan’s exposure to raw material supply chain
issues, Kingspan retains strong relationships with a wide range of
raw material suppliers to limit the reliance on any one supplier or
even a small number of global suppliers.
»
Kingspan continues to inform all stakeholders of the
characteristics of our product offerings, their appropriate
application and benefits, to limit the risk of misunderstanding
within the building industry.
»
Kingspan’s IT infrastructure is constantly reviewed and updated to
meet the needs of the Group. Procedures have been established
for the protection of this infrastructure and all other IT related
assets. These include the development of IT specific business
continuity plans, IT disaster recovery plans and back-up delivery
systems, to reduce business disruption in the event of a major
technology failure.
Credit risks and credit control
Risk and impact
Actions to mitigate
As part of the overall service package,
Kingspan provides credit to customers
and as a result there is an associated risk
that the customer may not be able to
pay outstanding balances.
At the year end, the Group was carrying
a receivables book of €1,148.2m (2023:
€1,051.8m) expressed net of provision
for default in payment. This represents
a net risk of 13% (2023: 13%) of sales.
Of these net receivables, approximately
63% (2023: 60%) were covered by credit
insurance or other forms of collateral
such as letters of credit and bank
guarantees.
»
Each business unit has rigorous procedures and credit control
functions for managing its receivables and takes appropriate
action when necessary.
»
Trade receivables are primarily managed through strong credit
control functions supplemented by credit insurance to the extent
that it is available. All major outstanding and overdue balances
together with significant potential exposures are reviewed
regularly and concerns are discussed at monthly meetings at
which the Group’s executive directors are present.
»
Control systems are in place to ensure that credit authorisation
requests are supported with appropriate and sufficient
documentation and are approved at appropriate levels in the
organisation.
Talent development and retention
Risk and impact
Actions to mitigate
The success of Kingspan is built upon
effective management teams committed
to achieving a superior performance in
each division. Failure to attract, retain
or develop these teams could have an
impact on business performance.
»
Kingspan is committed to ensuring that the necessary policies
are in place to attract, develop and retain the skill levels
needed to achieve the Group’s strategic goals. These policies
are underpinned by strong recruitment processes, succession
planning, remuneration reviews, including short and long term
incentive plans and targeted career development programmes.
»
Kingspan’s People Passionate programme is a strategic
framework for attracting, retaining and developing talent within
Kingspan. The programme is sponsored by the Group CEO and
senior leadership team. The People Passionate programme
enshrines all the key aspects of talent development and
engagement:
- health, safety and wellbeing;
- recruitment;
- onboarding;
- performance and reward;
- training and development;
- leadership development;
- career planning and progression;
- engagement and communication; and
- people and organisational policies.
»
Kingspan’s leadership team holds an annual talent forum to
review succession plans, metrics on key positions hired throughout
the year and to forecast future talent gaps as part of our human
capital risk assessment.
»
Kingspan’s internal career portal provides an open and
transparent forum for Kingspan employees to learn about and
apply for career opportunities across all our businesses worldwide.
It has a wealth of information about the types of roles and skills
that are in demand to deliver on our strategic objectives.
»
Kingspan continues to be an attractive employer of choice for
young, talented graduates with over 2,000 applications to our
global website for our 2024 graduate positions.
»
Graduates participated in our Yours to Shape development
programme which was in its eighth consecutive year in 2024.
The objective of the programme is to provide new graduates
with a network to collaborate across the Group and develop the
capabilities to drive their careers in Kingspan. It spans 12 months
of interactive workshops, peer coaching, masterclasses with
senior executives and assignments on the Promote e-learning
platform.
»
PEAK (Programme for Executive Acceleration in Kingspan) was
launched in 2018 and is targeted at middle to senior managers
who are currently or will soon commence managing a team. It
aims to increase leadership diversity by deepening and widening
the pool of potential senior leaders to match the increasing scale
and global nature of the business.
»
An Advanced Management Programme was launched in 2021 in
partnership with INSEAD’s executive business school in France.
This programme supports Kingspan’s senior leaders to engage
with enterprise level goals in a more collaborative way while
transforming their leadership capabilities to drive significant long-
term growth.
Innovation
Global
Planet Passionate
Completing the Envelope
Innovation
Global
Planet Passionate
Completing the Envelope
Annual Report & Financial Statements 2024
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Risk & Risk Management
Health and safety
Risk and impact
Actions to mitigate
The nature of Kingspan’s operations
can expose its contractors, customers,
suppliers and other individuals to
potential health and safety risks.
Health and safety incidents can lead to
loss of life or severe injuries.
»
A robust health and safety framework is in place throughout the
Group’s operations requiring all employees to complete formal
health and safety training on a regular basis.
»
ISO 45001 is an internationally-recognised framework for
managing occupational health and safety risks. 122 of Kingspan’s
manufacturing sites are accredited to ISO 45001 with a target to
progress towards achieving 75% (including acquisitions after the
first 12-months).
»
The Group monitors the performance of its health and safety
framework and takes immediate and decisive action where non-
adherence is identified.
»
The development of a strong safety culture is driven by
management and employees at every level and is a core part of
doing business with integrity.
Laws and regulations
Risk and impact
Actions to mitigate
Kingspan is subject to a broad range
of existing and evolving governance
requirements, environmental, health
and safety and other laws, regulations
and standards which affect the way
the Group operates. Non-compliance
can lead to potential legal liabilities,
reputational risk, and curtail the
development of the Group.
»
Kingspan’s in-house legal team is responsible for monitoring
changes to laws and regulations that affect the business and is
supported by external advisors. Issued policies include, but are
not limited to, the following:
- Sanctions Compliance Policy;
- Anti-Fraud, Bribery and Corruption Policy;
- Competition Law Compliance Policy;
- Supplier Policy;
- Supplier Human Rights, Environmental Due Diligence Policy;
- Inclusion and Diversity Policy;
- People and Organisational Policy;
- Environmental Policy;
- Directors’ Guidance Policy; and
- Human Rights Policy.
»
The Group has formal policies in place to ensure compliance
with M&A regulations and training is provided on these policies.
Internal and external legal counsel support Group management
in complying with M&A regulations.
»
The Group’s publicly available Code of Conduct sets out the
fundamental principles which it requires all its directors, officers
and employees to adhere to in order to meet those standards.
»
Training is provided through a variety of mediums in key areas of
legal and regulatory compliance, including a suite of mandatory
training for those that join Kingspan.
»
The Group has a confidential independent hotline in place that
allows anonymous reporting of any suspected wrongdoing
or unethical behaviour, including reporting instances of non-
compliance with laws and regulations. All reported cases are
investigated and findings reported to the Audit & Compliance
Committee.
Fraud and cybercrime
Risk and impact
Actions to mitigate
Kingspan is potentially exposed to
fraudulent activity, with particular
focus on the Group’s online banking
systems, online payment procedures and
unauthorised access to internal systems.
»
The Group issues extensive guidance and policies, which include critical
process and control policies for the mitigation of fraud risk and they
must be effectively adopted by all Group businesses.
»
The Group internal audit programme includes rigorous tests of financial
controls and general IT controls to ensure they align with Group policies
that mitigate fraud risk.
»
All fraud and cyber crime attempts, successful and unsuccessful, are
reported to the Audit & Compliance Committee.
»
The Group’s cyber strategy is designed by a multi-discipline Group IT
function with support from external advisors and our Group Head of
Cyber Security. The Group Head of Cyber Security is responsible for
owning and executing the Group’s cyber security strategy to ensure
critical assets and technologies are protected against cyber risk.
»
The Group’s Cyber Security Roadmap sets out the phased milestones
for the implementation of enhanced cyber risk policies and projects
over a period of 30 months to enhance the Group’s security posture.
»
Proactive cyber security services are in place which provide global
24/7 critical security services that include managed threat protection
(Security Information and Event Management – SIEM), managed
detection and incident response services, including access to trusted
and experienced cyber security advisors.
»
The Group Internal Audit & Compliance function perform cyber audits
with dedicated audit programmes in addition to separate audits of IT
general controls. Findings of cyber audits are reported to the Audit &
Compliance Committee and form the basis for enhanced IT policies.
»
Mandatory implementation of multi-factor authentication (MFA) on all
internet facing and business critical services Group-wide.
»
High frequency phishing testing performed globally.
»
The Group’s corporate assets can be swiftly ‘auto-contained’ in the event
of a significant cyber security incident to limit the business impact.
Acquisition and integration of new businesses
Risk and impact
Actions to mitigate
Acquisitive growth is an important
element of Kingspan’s development
strategy. A failure to execute and properly
integrate significant acquisitions and
capitalise on the potential synergies they
bring may adversely affect the Group.
Failure to comply with M&A regulations
can result in potential fines and
reputational risk for the business.
»
All potential acquisitions are rigorously assessed and evaluated, both
internally and by external advisors, to ensure any potential acquisition
meets Kingspan’s strategic and financial criteria.
»
The Group has formal policies in place to ensure compliance with M&A
regulations and training is provided on these policies. Internal and
external legal counsel support Group management in complying with
M&A regulations.
»
This process is underpinned by extensive integration procedures and the
close monitoring of performance post acquisition by both divisional and
Group management.
»
New acquisitions are categorised as higher risk from a financial
controls, IT general controls and product compliance perspective and
are therefore subject to greater internal audit focus in the initial 12
month period post acquisition.
»
Kingspan’s global management team has extensive experience in the
successful integration of acquired businesses, which it leverages for
onboarding new acquisitions.
Innovation
Global
Planet Passionate
Completing the Envelope
Innovation
Global
Planet Passionate
Completing the Envelope
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Risk & Risk Management
Kingspan’s Mission
To accelerate a net zero
emissions built environment
with people and planet at its
heart. We do this through
enabling high-performance
buildings via our systems and
solutions that help to save
more energy, carbon and water.
SUSTAINABILITY
REPORT
We recognise the vital importance of achieving
this while:
»
enhancing the safety and wellbeing
of people in buildings;
»
supporting the transition to a circular
economy; and
»
always delivering more performance
and value.
We believe the answers lie in challenging building
industry traditions with innovation in advanced
materials and digital technologies. What defines
us is our relentless pursuit for better building
performance whilst incorporating our Planet
Passionate programme into everything we do.
Our commitment to sustainability is instilled
throughout our business.
In line with the EU’s Corporate Sustainability
Reporting Directive (CSRD), which informs
the structure and content of our 2024 CSRD
Sustainability Statement, we have built
upon the comprehensive double materiality
assessment conducted throughout 2023 and
2024 in collaboration with multiple external
consultants. This ongoing process is being further
refined, with its findings actively integrated
into our sustainability strategy to meet CSRD
requirements and drive continuous improvement
in our sustainability practices.
Kingspan recognises that it has a responsibility
as a business leader to contribute towards the
achievement of the United Nation’s Sustainable
Development Goals (SDGs). Our fourth Planet
Passionate Report provides more detail on how we
contribute to the SDGs.
See page 68 for the PLANET PASSIONATE
See page 72 for the PRODUCT PASSIONATE
See page 76 for the PEOPLE PASSIONATE
Scope 1+2
GHG Emissions1
61%
SINCE 2020
UC Medical Centre
Ohio, USA
Insulated Panels
QuadCore® Optimo®
wall panel system
1
Excluding biogenic emissions. Scope 2 GHG emissions
calculated using market-based methodology.
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Sustainability Report
Planet
Passionate
Caption
Location
Section
Product
Underlying
Business1
Whole
Business2
Planet Passionate Targets
Target
Year
2020
2024
2020
2024
Carbon
»
Net Zero Carbon Manufacturing -
scope 1 & 2 GHG emissions3
(tCO2e)
2030
409,7464
82,865
870,4824,5
337,8375
»
50% reduction in product CO2e
intensity from primary supply
partners (% reduction)
2030
-
3.9
-
3.9
»
Zero emission company funded
cars⁶ (annual replacement %)
2025
11
89
11
86⁷
Energy
»
60% direct renewable energy (%)
2030
19.94
43.3
19.94
59.4
»
20% on-site renewable energy
generation (%)
2030
4.9
10.2
4.9
30.3
»
Solar PV systems on all wholly
owned sites (%)
2030
20.7⁴
64.0
20.7⁴
56.8
Circularity
»
Zero company waste to landfill
(tonnes)
2030
18,6224
7,088
18,6224
12,536
»
Recycle 1 billion PET bottles into our
manufacturing processes annually
(million bottles)
2025
573
1,102
573
1,102
»
QuadCore® products utilising
recycled PET (no. of sites)
2025
1
12
1
12
Water
»
Harvest 100 million litres of
rainwater annually (million litres)
2030
20.1
62.1
20.1
63.2
»
Support 5 Ocean Clean-Up projects
(no. of projects)
2025
1
5
1
5
Our Planet Passionate environmental
sustainability programme aims to help
tackle three big global challenges - climate
change, circularity and protection of the
natural world. In 2024, we continued to make
impactful progress through more than 150
projects, achieving three of our 11 targets -
20% on-site renewable generation, to recycle
1 billion PET bottles into our manufacturing
processes annually and to support 5 ocean
clean-up projects.
Isoeste Residential
Project
Minas Gerais, Brazil
Insulated Panels
Isotelha RAL 7024
Insulated Roof; Infinity
Wall Ribbon
1 Underlying business includes manufacturing, assembly and R&D sites within the Kingspan Group in 2020 and all organic growth to date.
2 Whole business includes manufacturing, assembly and R&D sites within the Kingspan Group, excluding acquisitions made after 30 September 2024
and three minor sites acquired in 2023, which have negligible environmental impacts due to data unavailability.
3 Excluding biogenic emissions. Scope 2 GHG emissions calculated using market-based methodology.
4 Restated figures due to improved data collection, change in calculation methodologies and site disposal.
5 GHG emissions were recalculated due to acquisitions that occurred in 2021 through to 30 September 2024.
6 Kingspan defines a zero emissions car as a vehicle with zero tailpipe emissions. The boundary does not include the energy used to power the vehicle
or the embodied emissions from manufacturing.
7 Due to data unavailability, Steico and Mineral Insulation are excluded.
Sustainable Development Goals that are most closely linked to Kingspan’s operations:
Business & Strategic Report
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Kingspan Group plc
Annual Report & Financial Statements 2024
Circularity
Our vision is to deliver solutions that
support the transition to a circular
economy within the construction sector.
»
Waste to Landfill: In 2024, we
completed 24 landfill diversion projects
resulting in over 2,140 tonnes of waste
being diverted from landfill.
»
Product: To achieve zero waste
to landfill, our Brazilian business
developed a new product called EcoPIR,
using remanufactured production
waste from scrap PIR insulated panels.
In 2024, this equipment has been rolled
out in three of our Brazilian sites.
»
Recycling: We recycled 69% of our
waste in 2024. Recycling trials are
ongoing to investigate ways in which
Kingspan production waste could be
reutilised to add value, while helping us
divert waste from landfill. In 2024, our
Daylight Centre of Excellence facility
in Kingscourt, Co. Cavan installed a
compounder recycling facility. The
facility has the capacity to recycle up to
2,000 tonnes per year of polycarbonate
and will produce key raw materials for
our daylighting products.
Carbon & Energy
Through our Planet Passionate programme, we aim to help enable
lower carbon buildings, not only in the operational phase but also in
the upfront and construction phase. 2024 highlights include:
»
Scope 1 & 2 GHG emissions1: 2024 saw a 61% reduction in Scope 1
& 2 GHG emissions against our 2020 base year. The reduction was
achieved via the implementation of new renewable energy contracts,
deployment of solar PV systems and reduction in the use of high
GWP blowing agents. We made significant progress with our energy
suppliers and in 2024 we have 180 sites with renewable electricity
contracts.
»
Scope 3 GHG emissions: In 2024, we achieved a 14% reduction in
Scope 3 GHG emissions against our 2020 base year. A key facet of our
carbon ambition is to reduce our upstream Scope 3 carbon emissions,
particularly as they relate to our purchased goods and services which
in 2024 accounted for over 90% of our total Scope 3 emissions. We
have had significant engagement with our key raw material suppliers
and tracking of their decarbonisation plans, and in 2024 we had over
100 (internal and external) meetings on supply chain engagement.
»
20% on-site renewable energy generation target achievement:
During the year the Group achieved 30% on-site renewable energy
generation through the continued rollout of solar PV, wind and heat
generation systems. The acquisition of a majority stake in Steico, a
global leader in wood fibre insulation, also played an important role
through their use of biomass heat generation.
»
Zero emission cars: To date, we have installed 606 EV charging
points across our business. In addition, 86% of our annual
replacement cars were zero emissions cars in 2024.
»
Product: In 2024 we brought 12 new LEC products to market,
including AST LEC insulated panel, Kingframe LEC, Multichannel LEC,
Tate Grid+ LEC, Tate Containment LEC and KILON LEC Multiwall.
These have reduced embodied carbon² across their lifespan when
compared to their equivalent standard Kingspan product.
Water
As a manufacturer of solutions that
harvest and recycle water, we recognise
the need for future water security and the
protection of our natural water systems.
»
In 2024, we installed nine rainwater
harvesting systems across our businesses.
These systems have the potential to
harvest an additional 2.2 million litres
annually. In total, our 58 systems
harvested 63.2 million litres of rainwater
during the year.
»
We are delighted to announce our fifth
and final Ocean Clean Up partnership
with rePurpose Global, which will
facilitate the recovery of a minimum
of 28,000kg of ocean-bound plastic
from Colombia’s Buenaventura region
each year. The partnership consists of a
three-pronged approach which will help
combat ocean-bound plastic waste in
the area. This includes increasing plastic
recovery and recycling in Maguipi Island
(an area currently not serviced by any
waste management services), funding
educational activities to train and equip
local partners to better manage plastic
waste, and facilitating upgrades to local
waste management infrastructure.
This multifaceted approach will help to
remove plastic from the local community
and coastlines, increase recycling rates
and break the cycle of pollution to reduce
the plastic that makes its way into
Colombia’s oceans.
Centre de Competence
Bettembourg, Luxembourg
Roofing + Waterproofing
EVALASTIC waterproofing
membrane; Aluminium
profiles
1 Scope 1 & 2 GHG emissions. Excluding biogenic emissions. Scope 2 GHG emissions
calculated using market-based methodology.
2 Reduction in embodied carbon (modules A-C) when compared to the standard product
verified by a third party and to EN15804+ A2:2019.
To replace our achieved targets and
reflect the significant increase in scope
and scale of our global operations, we
have updated our carbon targets and set
three new targets for the period 2025 -
2030. Further details on the updates to
the programme are outlined in our Planet
Passionate report. Scan this QR code.
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System testing is one of the
founding principles in our
approach to the safe use of
insulation and panel products.
Integrity of Product Information
for the Digital Era
Ensuring the safe performance and use of our
products is central to our approach to product
development, testing, support and marketing. At
Kingspan we have implemented global product and
marketing compliance programmes that ensures
the accuracy of our product information, operating
to the ISO 37301 global compliance standard and
underpinned by a culture of integrity, honesty and
compliance with laws and regulations. Our global
Environmental Claims Guide aims to ensure that
all marketing claims relating to the sustainability
performance of our products are robust and
support our Group vision of making a meaningful
impact on decarbonisation and circularity in the
built environment. In parallel, we are developing
and delivering a technology backbone for accurate
digital product information that enables project
efficiencies and better design decisions.
Product Compliance
Product compliance operates first and foremost
to the high standards set out in our Group
Code of Conduct, which has been rolled out
to all employees across the Group. The Code
of Conduct incorporates a policy for reporting
misconduct anonymously and is highly visible
in all manufacturing sites across the Group.
The group-wide Directors’ Duties handbook
and associated training supports product
compliance at senior management levels. The
Group Compliance and Certification function
operates to the ISO 37301 compliance standard
with internal auditing and Board oversight.
ISO 37301 is an internationally recognised Type
A management system standard which sets
out the requirements and provides guidelines
for establishing, developing, implementing,
evaluating, maintaining, and continually
improving a compliance management
system (CMS). At the end of 2024, we had
85 manufacturing sites globally which were
accredited to the ISO 37301 standard.
The following structures are in place:
»
Group Head of Internal Audit & Compliance
reports directly to the Audit & Compliance
Committee;
»
Product Compliance Officers in each
business across Kingspan Group provide
monthly reports to the Group Product
Compliance team together with updates to
their divisional boards;
»
Audit & Compliance Committee are
responsible for monitoring product testing
and marketing compliance; and
»
Internal Audit & Compliance function audit
product and marketing compliance.
Product safety and testing
The safety of those working with our products,
and living in buildings that have used our
products, is paramount at Kingspan.
The opening of our industry leading Fire
Engineering Research Centre (FERC) in Holywell,
Wales was a key milestone in our global
compliance programme, which has enabled
a significant increase in the frequency and
scope of fire testing of products. The testing
carried out at FERC is also building a bank of
knowledge which is helping to ensure that fire
safety continues to be central to Kingspan
product innovation. The Kingspan FERC has the
facilities to conduct small scale testing (such
as EN 13501-1 or reaction to fire test) as well as
large scale testing, before sending the product
to external testing houses. It is also used for
prototype testing for R&D purposes.
Fire safety is often reduced to a simplistic
‘combustible’ versus ‘non-combustible’ definition,
based on a small scale test. Important factors
such as building design, installation methodology
and the interaction of the different materials in
the actual system are not tested in small scale
materials classification testing.
Hence, our approach to the safe use of our
insulation and insulated panel products in
buildings is founded on the principle that system
testing is the best way to assess fire performance
of any roof or cladding system, regardless of the
classification of the insulation materials used.
A wide range of Kingspan insulated panels
carry FM Approvals (FM) or Loss Prevention
Certification Board (LPCB) approval, both of
which are system testing regimes developed by
the insurance industry. These approvals provide
objective third party testing, which is underpinned
by quarterly, bi-annual and annual factory
Product
Passionate
1 Assumes 60 year product life; based on an EU airline disclosure of
over 15.4m tonnes of CO2e emissions for 12 months to March 2024
2 Assumes a 20 year product life
3 Equivalent number of PET bottles by weight
4 Assumes 10 x 60W bulbs per home
Tetris House
Brno, Czech Republic
Insulated Panels
NF 120 IPN wall panel;
RW 140 IPN roof panel
Our daylighting systems sold in
2024 create 3.8 billion lumens of
natural light annually
Enough to light
up 470k homes4
In 2024 alone, we recycled
1.1 billion waste plastic bottles³
Enough recycled bottles
to circle Earth over
five times
Over 44.1 billion litres of
rainwater will be harvested by
our systems produced in 2024²
Enough water to fill over
550 million baths
172 million tonnes of CO2e will
be saved over the life of our
insulation systems sold in 2024
Enough to power a major
airline for over 11 years1
NATURAL
DAYLIGHT
3.8bn
ULTRA ENERGY
EFFICIENT
172m
CONSERVED
WATER
44.1bn
RECYCLED
MATERIAL
1.1bn
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KINGSPAN PIM MODEL
We have 28 product lead
compliance officers appointed
across the business and
over 6,000 people trained in
product compliance.
surveillance audits (depending on the region)
to verify compliance. Independent certification
bodies take samples of insulated panels from our
factories and send them to their own laboratories
for fire testing to verify ongoing compliance. These
independent audits also include assessments
of change control, formulations, processing
parameters, labelling and internal testing.
The Kooltherm® range of insulation boards
and KoolDuct® pre-insulated ductwork are
manufactured with a phenolic insulation core,
which has been proven to offer superior fire and
smoke performance to other commonly used rigid
thermoset insulants.
A comprehensive range of building facade
systems incorporating our insulation board and
insulated panels products have successfully
passed large scale facade tests around the globe
including, but not limited to, NFPA 285 (North
America), LEPIR II (France), SP 105 (Nordics), AS
5113 (Australia), ISO 13785-2 (Czech Republic)
and MSZ 14800-6 (Hungary). As it relates to large
scale fire tests, there are a total of 15 systems
incorporating Kooltherm® which have met the
requirements of BR 135 when tested to BS 8414
(UK) and there are six insulated panel based
systems that have met the requirements of BR
135 when tested to BS 8414. During 2024, a total
of 490 third party external products and system
audits were carried out, providing reassurance on
the safety of our products.
Integrity of Product Marketing
The Group Compliance Manual covers all aspects of
the processes which have been implemented across
the Kingspan Group, including the requirement for a
Register of External Certificates and Test Reports for
each product. We have 28 product lead compliance
officers appointed across the business and over
6,000 people trained in product compliance.
The Marketing Integrity Manual (MIM) ensures
that the information in the Product Compliance
Register is represented truthfully and accurately
in product marketing information. An updated
version of the MIM was released in November
2024 with 12 clauses.
Value Centre
Prahova, Romania
Insulated Panels
KS AWP 100 wall panel
The overall programme includes:
»
Group MIM e-learning which has been rolled
out to all marketing team members;
»
Fire approvals e-learning which has been rolled
out to appropriate marketing team members;
»
Environmental claims e-learning has been
rolled out to all marketing team members;
»
A Skills, Knowledge, Experience and Behaviour
(SKEB) competency assessment model
which has been introduced with associated
training and strict rules for publishing product
information; and
»
A sign-off approvals process which has been
implemented for our new global website
infrastructure.
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PIM
PIM
Manage compliance of products
data. Generate Product
Compliance Register (PCR)
Generate DoP (60 data points),
Datasheets (16 data points),
Brochures (40 data points)
Exchange trusted products
data with ERP systems
Push trusted technical
products data to core Web
Push trusted product technical
data to e-commerce,
Configurators, BIM tools
Generate product
Digital Passport
Workflows
Documentation
ERP/CRM
WEB
Advanced WEB
We have built a Product Information Management (PIM) technology platform and this is currently being
deployed across our business:
We are People Passionate, and during 2024 we
continued to invest in our people by actioning
three pillars of our programme. We refocused on
the approach to performance and development by
encouraging effective conversations particularly
between our people leaders and team members
to cascade strategy and ensure its execution by
clarifying roles and goals and providing the training
needed to achieve high performance. We also
continued to underpin our strong foundations by
reviewing a number of fundamental policies and
procedures related to our people. These updated
policies and guidelines were published across the
Group and were accompanied by staff training and
communications. During the year we continued to
refine the data collection and reporting approach
for CSRD Workforce as well as People Passionate
progress reporting across our Group. We continued
to make progress on our priority of creating and
sustaining an inclusive workplace. A pulse survey
was undertaken to gather feedback on the current
experiences of our people at work in this regard. The
findings will inform the evolution of the priorities
and action planning for next phase.
Talent Retention
Utilising the CSRD Workforce data gathering
process, we further advanced the quality and
completeness of people data. This helped to provide
better insights and a deeper understanding of our
people and their career choices which helped to
focus our actions. We continue to invest in people
technology and advertise open opportunities across
the Group via our internal career portal.
Training and Development
In 2024, our core people leader programmes
continued across the world. To date over 250 leaders
have participated in the programmes. The focus
of these programmes is to support people leaders
at either front line, middle management or senior
management to lead themselves, their team and
the business effectively. We have certified Kingspan
facilitators to deliver the programmes to the highest
levels which contributes to the integration of the
programmes into the businesses.
Kingspan’s key learning and development
programmes:
»
Yours to Shape – Graduate Attraction and
Development;
»
Developing Talent Programme;
»
The Ignite, Accelerate and Evolve leader
development programmes;
»
Programme for Executive Acceleration in
Kingspan (PEAK); and
»
Kingspan Executive Development Programme,
in partnership with INSEAD.
Yours to Shape - Graduate Attraction and
Development
Kingspan continues to build leadership pipelines
by investing in our global graduate attraction
and development programme called Yours to
Shape. Over 280 graduates have completed
the programme since it was launched. The
programme’s objective is to support the successful
transition of graduates from university to Kingspan,
create an international collaborative network within
the Group and develop their capabilities to drive
their career in Kingspan forward. It is clear from the
campaign that graduates are consistently attracted
to Kingspan for the Group’s active and practical
focus on sustainability.
This year we continued to attend university career
fairs in-person across all regions.
The Yours to Shape development programme spans
12 months of virtual and in-person workshops and
assignments. A key feature of the programme is
the opportunity to gain an understanding of the
business across different regions and divisions.
In 2024, three modules were delivered virtually
and two modules were delivered face-to-face.
During the in-person modules graduates had
the opportunity to visit sites and meet with our
talented colleagues and understand different
processes and products.
At Kingspan, we are a global leader in sustainable
business and innovation. As such, our leaders are
at the forefront of advances in combating climate
change, the digitalisation of the construction
industry and advanced material research to name
but a few. Graduates get the opportunity to hear
first-hand from those leaders about the progress
that the Group is making in these areas through a
masterclass series.
Each year the graduates work in cross functional,
regional teams and work on diverse business
projects. These projects are identified by
the business as real challenges. The projects
are innovative, align to Kingspan’s strategic
priorities, which include sustainability, and have a
commercial benefit.
In 2024, five projects were showcased to an
internal audience of senior leaders in IKON, our
Global Innovation Centre in Ireland, and the
presentations were live streamed to our facilities
around the world. The level of innovation and
the integration of sustainability into the projects
was inspiring. The projects will be taken forward
for further assessment with an aspiration
to integrate the outcomes into the existing
processes and product range.
The Yours to Shape programme is a key pillar for
Kingspan’s leadership development strategy. As
talented people continue to join and develop
fulfilling careers, the longer-term high performance
of the Group is safeguarded.
Developing Talent Programme
The Developing Talent Programme is an early
careers programme aimed at developing
participants to realise their full potential, now and
into the future, and enabling them to add even
more value to the business.
The design of the programme is based on
four key principles, ownership of personal and
career development, building self-awareness
and confidence, developing and embedding
good learning habits and enabling practical
application.
There are six in-person modules in total, alongside
three 1-to-1 coaching sessions. Participants must
also identify and present on an improvement
project which will deliver tangible results for their
own role and their team.
People
Passionate
2024 Graduate
Programme
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Male
Female
INJURY FREQUENCY RATE
FATALITIES
21%
79%
2024
1.29
p/100k hours
1
Participants receive exposure to a range of
development experiences which will help them
clarify their future personal and career direction.
The programme allows participants to identify
and develop critical skills and capabilities and
to maximise their impact and contribution to
the business, all while creating a supportive peer
network and broadening their exposure to the wider
Kingspan business.
Ignite Programme for front line managers
The Ignite Programme has been designed
to develop leadership and professional skills
and is tailored to those who are new to team
management and leadership. The core objectives
are to foster high performance in teams, develop
a shared purpose, developing the abilities to work
effectively in a fast-paced business and attracting
and retaining high performing talent.
Accelerate for middle managers and leaders
The Accelerate programme builds on the
skills developed in Ignite and introduces new
concepts on strategy execution, coaching and
effectively approaching and managing change
and transitions.
Evolve for more strategic focused leaders
and managers
The Evolve programme focuses on those in roles
that are a little more forward looking and may be a
manager of other leaders and or bigger businesses.
Through a blend of in person and virtual modules,
the leaders on this programme learn more about
enterprise level leadership.
Programme for Executive Acceleration in
Kingspan – PEAK
The high impact leadership development
Programme for Executive Acceleration in
Kingspan (PEAK) continued in 2024 with another
group of highly motivated and committed leaders
completing the programme. This programme
focuses on enhancing leadership effectiveness
and building a strong network of colleagues
across the Group.
The programme is delivered through a blend of
online and in-person modules underpinned by
individual coaching. Each workshop includes
insights and exposure to subject matter experts.
Project groups tackle a leadership challenge, the
output of which is implemented.
Kingspan Executive Development Programme,
in partnership with INSEAD
This Programme was launched in partnership
with INSEAD’s executive business school in France,
one of the world’s leading and largest business
schools. This is a specific leadership development
programme for senior executive leaders which runs
every two years.
The programme supports Kingspan’s senior
leaders to engage with enterprise level goals
in a collaborative way while transforming their
leadership capabilities to drive significant long-term
growth. The programme consists of learning events
throughout the year as well as a number of 1-to-1
coaching sessions.
Protect
Kingspan takes the safety of our employees
incredibly seriously. The Group aims to record
and review all accidents, as well as near misses.
We have made significant progress in reviewing
Health and Safety (H&S) at both the facility and
divisional levels, with ongoing efforts to enhance
our practices. We hosted a H&S Forum at IKON
in November 2024, attended by over 21 H&S
professionals from across the business. There were
several presentations made during the forum,
covering topics such as H&S management systems,
learnings from serious incidents, best practice
commissioning of new machinery, and employee
training. Our North America H&S Forum took place
in January 2025, with our APAC forum scheduled
for February 2025, continuing our commitment to
global collaboration and safety improvement.
We are deeply saddened to report that during
the year a fatal accident occurred at one of
our recently acquired Steico facilities. Training
has been undertaken and policies updated to
incorporate learnings from this tragic incident
and to strengthen our commitment to health
and safety. 122 of Kingspan’s manufacturing sites
are accredited to ISO 45001, an internationally
recognised framework for managing occupational
H&S risks.
Hazard Identification Processes include but are not
limited to:
»
all near misses are assessed and processes are
updated;
»
employees are encouraged to make
suggestions for process improvements;
»
safety walks by responsible persons;
»
periodic workplace inspections; and
»
risk assessment on new machines at
installation.
Initiatives implemented throughout 2024:
»
Behavioural Safety Visits (BSV): the Roofing
+ Waterproofing division partnered with an
external provider to train site management in
identifying and addressing safety anomalies,
improving communication, and reinforcing
positive behaviours;
»
Unified Incident Reporting: Developed a
standardised platform for incident data
collection across all North America Insulated
Panels sites, ensuring consistency and
improved H&S oversight; and
»
Standardised LOTOTO (Lock-Out Tag-Out Try-
Out) Procedures: Implemented written LOTOTO
procedures across all Insulation sites, ensuring
alignment with divisional standards and
clarifying the distinction between functional
safety and LOTOTO.
Equal opportunities, employee rights
and diversity
Kingspan is committed to providing equal
opportunities from recruitment and appointment,
training and development to appraisal and
promotion opportunities for a wide range of
people, free from discrimination or harassment
and in which all decisions are based on work
criteria and individual performance. We see
diversity and inclusiveness as an essential part
of our productivity, creativity and innovation.
Diversity is widely promoted within Kingspan. 36%
of our most recent graduates are female and 33%
of our senior executive team, reporting to the
CEO, are female. Diversity is actively supported at
Kingspan through foundational policies, including
the Group’s Inclusion and Diversity Policy and
our global Code of Conduct, which outline the
Company’s dedication to equal opportunities,
integrity, honesty, and compliance.
GENDER BALANCE
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Initiatives in action
Our Communities
Planet Passionate Communities is the philanthropic
arm of our Planet Passionate programme. At the
heart of Planet Passionate Communities is an
ambition to create a positive legacy as a business.
Locally, our businesses are devoting their time and
resources to support community projects.
The idea is to build a world that’s powered by
renewable energy, is net zero carbon, manages
water sustainably, and protects the earth’s valuable
resources by reducing, re-using and recycling. We
take pride in our diverse range of global projects,
showcasing our commitment to a sustainable
future for our communities.
Our All Weather Insulated Panels
(AWIP) business in the US provided
labour and materials to the
non‑profit housing organisation,
Habitat for Humanity
Planet Passionate Week
brings to life the benefits
of our environmental
sustainability programme
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Responsibility. In 2024, Kingspan developed
our SHREDD Policy, which outlines the Group’s
Supplier SHREDD process. This process is aligned
with international guidelines and principles such
as OECD Guidance for Multinational Enterprises
on Responsible Business Conduct, UN Guiding
Principles on Business and Human Rights, and
ILO Declaration on Fundamental Principles and
Rights at Work. To further support ethical business
practices, the Group provides a confidential
independent hotline for raising concerns.
EcoVadis
EcoVadis is part of the mechanism to assist in our
SHREDD process through which its sustainability
ratings platform helps us to assess a company’s
supply chain network under environmental,
ethics, labour and human rights, and sustainable
procurement criteria. The outcome of the
assessment process is a company scorecard which
provides an overall ESG performance rating of
the supplier. We continue to engage and rollout
these assessments with our supplier base which
now covers more than half of our direct spend
across all our global divisions and businesses. By
collaborating with suppliers and holding them
accountable to ESG standards, the Group aims
to not only reduce its environmental impact but
also promote social equity and governance best
practices across our global network.
Customer Experience Programme
Our customers are at the heart of everything we
do. We are always looking for ways to improve
and better meet their needs. In 2018, we launched
the Worldwide Voice of Customer programme,
led by our Global Customer Experience Team.
This initiative enables us to listen more closely to
our customers and gain a deeper understanding
of their experiences across the 200+ businesses
and diverse brands within our Group. The
programme has been invaluable in identifying
areas where we can do better. It helps us stay
attuned to changing customer expectations
and uncover new opportunities to innovate. By
focusing on what matters most to our customers,
we’ve made meaningful improvements to our
products, services, and processes, while also
driving progress in our Digital Agenda. Since its
launch, the programme has gathered feedback
from over 80,000 customers in more than 80
countries. We are grateful for their insights, and
we remain committed to listening, learning, and
driving meaningful change for a better customer
experience.
People and Organisation Policy
The People and Organisation Policy was released in
2024 and is an integral part of the Group’s human
resources processes. It considers proper balance
between fair treatment of our employees and
business needs. The principles of this policy have
global application.
Environmental Policy
The Group is dedicated to conducting its
business activities responsibly, with due
regard to environmental impacts. In 2024,
the Group updated its Environmental Policy,
detailing its commitments and approach to
five key environmental topics: Climate Change,
Pollution, Water, Biodiversity, and Resource Use
& Circular Economy. Further information on our
Environmental Policy can be found in our 2024
CSRD Sustainability Statement.
These policies and related initiatives assist in
ensuring consistency, compliance with laws and
regulations, and alignment with the Group’s goals
and values in the jurisdictions in which we operate.
Human Rights Policy
In 2023, the Group released its global Human
Rights Policy. The policy supports Kingspan’s
fundamental values and the key objective is to
outline our human rights commitments. We have
a zero-tolerance approach to slavery, human
trafficking and other human rights infringements.
The Group is committed to respecting and
safeguarding the people who work for our business
and those who are affected by our various
activities. The Human Rights Charter is issued
under the Human Rights Policy and outlines in
further detail our commitment to promoting and
respecting human rights. The Group is committed
to the highest standards of business and ethical
behaviour including compliance with applicable
laws and regulations as well as company policies,
practices, and procedures.
Human Rights Risk Assessment
As part of the policy development, the Group
engaged with an external consultant to develop
a human rights risk assessment framework. The
assessment involved identifying salient human
rights issues across our value chain, groups
(employees, customers, and communities) and
conducting due diligence pathways. An assessment
to evaluate human rights risks within our upstream
supply-chain was also conducted throughout the
year in a separate piece of analysis.
Modern Slavery
Slavery and human trafficking are abhorrent
crimes and we all have a responsibility to ensure
that they do not continue. At Kingspan, we pride
ourselves on conducting our business ethically and
responsibly. The Modern Slavery Act 2015 requires
all large UK companies and businesses who supply
goods or services in the UK to publish a slavery and
human trafficking statement each financial year
on their website.
The Group is fully committed to ensuring that
modern slavery is not taking place in our business
or any of our supply chains. We adopted and
published our policy statement at the end of 2016
and all our businesses are responsible for ensuring
supplier compliance with the legislation.
Inclusion and Diversity Policy
In 2024, The Group released its Inclusion and
Diversity Policy. This Policy is issued under
the Human Rights Policy and outlines our
commitment to promoting and respecting a
workplace culture in which inclusion and diversity
is valued and everyone is treated with dignity and
respect. The purpose of the Inclusion and Diversity
Policy is to foster an inclusive environment that
respects and values the diverse background,
perspectives and experiences of all our people,
stakeholders and partners. The policy also seeks
to ensure inclusion, diversity, equal opportunities,
equity and belonging. These are core principles
that we seek to promote across our business. This
policy sets out our approach to encouraging and
supporting inclusion and diversity and promoting
a culture that values difference and seeks to
eliminate discrimination in our workplace.
Supplier Policy and Supplier Human Rights,
Environmental Due Diligence Policy (SHREDD)
The Group continues to develop upon its ethical
and environmental procurement agenda. We seek
to build and maintain long-term relationships
with key suppliers and contractors to ensure that
they are aligned to the same goals and standards
as Kingspan, to address strategic global issues,
emerging trends and ultimately our customer
needs. Our procurement leadership team
engage in events promoting the decarbonisation
of materials used within our supply chain
and in industry leading initiatives such as the
Procurement Leadership Council, Europe. We
continue to promote our Group Supplier Policy
across Kingspan globally which sets out our
expectations of suppliers, generally in terms of
business practices, and specifically with respect to:
Business Integrity; Ethical Employment Practices;
Anti-Bribery and Corruption; and Environmental
Our policies assist in
ensuring compliance
with laws and
regulations while
aligning with our
goals and values.
Our Policies and
Related Initiatives
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Kingspan Group plc
Annual Report & Financial Statements 2024
Sustainability Report
83
Business & Strategic Report
THE
BOARD
Leadership
and Experience
Non-executive Chairman
Jost
Massenberg
(Age 68)
Germany
Independent
N
Jost Massenberg was appointed to the Board in February 2018 and was appointed as non-executive
Chairman of Kingspan in 2021.
Key strengths: Jost brings a wealth of board level experience, having served in both chairman and chief
executive roles. His extensive background in the European steel and major manufacturing sectors equips him
with a deep understanding of industry dynamics. This expertise is particularly valuable as Kingspan navigates
the challenges of decarbonising its supply chain.
Previous relevant experience: Jost has held prominent leadership positions, including Chairman of VTG
Aktiengesellschaft and Chief Executive Officer of Benteler Distribution International GmbH. Prior to these
roles, he served as Chief Sales Officer and was a member of the executive board at ThyssenKrupp Steel
Europe AG. His extensive experience in these high-level positions underscores his capability to drive strategic
growth and operational excellence.
Qualifications: PhD Business Admin.
Chief Executive Officer
Gene
Murtagh
(Age 53)
Ireland
Gene Murtagh is the Group Chief Executive Officer. He was appointed to the Board in
November 1999.
Key strengths: Gene brings over 30 years of extensive experience with Kingspan, having held both
operational and leadership roles. His profound understanding of the Group’s diverse businesses and the
broader construction materials industry provides invaluable insights that drive the Group’s strategic direction.
Gene’s expertise is instrumental in advancing our core strategic pillars: Innovation, Planet Passionate,
Completing the Envelope and Global.
Previous Kingspan roles: Gene joined the Group in 1993 and has been serving as Chief Executive Officer
since 2005. Prior to his current role, he was the Chief Operating Officer from 2003 to 2005. Before that,
he held the positions of Managing Director for both the Group’s Insulated Panels business and the Water +
Energy business.
Executive directors
Geoff
Doherty
(Age 53)
Ireland
Geoff Doherty is the Group Chief Financial Officer. He joined the Group and was appointed to the
Board in January 2011.
Key strengths: Geoff is a qualified Chartered Accountant with extensive experience in capital markets
and financial management within an international manufacturing context. He oversees compliance of
the Group’s financial controls and cybersecurity programmes, ensuring robust compliance and operational
integrity.
Previous relevant experience: Before joining Kingspan, Geoff served as the Chief Financial Officer at
Greencore Group plc, where he also held the position of Chief Executive for its property and agribusiness
divisions. His diverse background equips him with a comprehensive understanding of both financial and
operational aspects of business management.
Principal external appointments: Geoff currently serves as a Non-Executive Director at Ryanair Holdings plc,
where he holds the position of Chair of the Audit Committee.
Russell
Shiels
(Age 63)
United States
of America
Russell Shiels is President of Kingspan’s Insulated Panels business in the Americas as well as Kingspan’s
Data Solutions business globally. He was appointed to the Board in December 1996.
Key strengths: Russell offers the Board significant expertise in the building envelope market across the
Americas, coupled with an in-depth understanding of the global office and data centre market. His strategic
insights and industry knowledge are invaluable assets to our leadership team.
Previous Kingspan roles: Russell has a rich history with Kingspan, having held pivotal roles in several of the
Group’s core businesses. He was previously the Managing Director of Kingspan’s Building Components and
Raised Access Floors businesses in Europe.
Gilbert
McCarthy
(Age 53)
Ireland
Gilbert McCarthy is Managing Director of Kingspan’s Insulated Panels businesses in Europe, Asia and
Australasia. He was appointed to the Board in September 2011.
Key strengths: Gilbert offers the Board a wealth of expertise in the building envelope industry, with a
particular focus on Western Europe and Australasia. His deep understanding of market dynamics and
industry trends in these regions positions him as a valuable resource for strategic decision-making and
growth initiatives.
Previous Kingspan roles: Since joining Kingspan in 1998, Gilbert has held several senior management
positions, demonstrating his leadership and operational insight. His roles have included Managing Director of
the Off-Site division and General Manager of the Insulation business.
Board Committees: A Audit & Compliance N Nominations & Governance R Remuneration
Chair
Danish Crown
Headquarters
Randers, Denmark
Insulation
Troldtekt® acoustic
panels; Troldtekt® line
panels
Annual Report & Financial Statements 2024
84
Kingspan Group plc
85
Directors’ Report
The Board
Annual Report & Financial Statements 2024
Kingspan Group plc
84
Non-executive directors
Linda
Hickey
(Age 63)
Ireland
Independent
R
N
Linda Hickey was appointed to the Board in June 2013 and is the Senior Independent Director and the
Workforce Engagement Director.
Key strengths: Linda brings a wealth of knowledge and experience to the Board, particularly in the areas
of capital markets and corporate governance. Her extensive background provides invaluable insights that
enhance the Board’s decision-making processes. Additionally, Linda’s expertise in environmental, social
and governance (ESG) matters, gained from her various board level positions, further strengthens her
contributions as the Senior Independent Director.
Previous relevant experience: Linda has an impressive track record in the financial sector. She previously
held the position of Head of Corporate Broking at Goodbody Capital Markets, where she collaborated closely
with multinational corporations and the investor community. Before her tenure at Goodbody, Linda worked
at NCB Stockbrokers in Dublin and Merrill Lynch in New York. She also previously served as Chair of the Irish
Blood Transfusion Service.
Qualifications: B.B.S.
Principal external appointments: Non-executive director of Cairn Homes plc and Greencore Group plc.
Anne
Heraty
(Age 64)
Ireland
Independent
N
A
Anne Heraty was appointed to the Board in August 2019.
Key strengths: Anne brings a wealth of experience from her career in international business management
and her current role on the Board of Ibec. As the former Chief Executive Officer of Ireland’s largest
recruitment and outsourcing company, she has unparalleled expertise in talent development and retention
strategies. Anne also served on the sustainability committee of Outsourcing Inc., where her contributions
played an important role in advancing the company’s sustainability initiatives until she stepped down in
July 2024.
Previous relevant experience: Anne is the founder and former Chief Executive Officer of Cpl Resources
Limited (formerly Cpl Resources plc). Additionally, Anne has held numerous other public and private non-
executive directorships, further enhancing her broad and versatile leadership capabilities.
Qualifications: B.A. in Mathematics & Economics.
Principal external appointments: Non-executive director of Ibec.
Éimear
Moloney
(Age 54)
Ireland
Independent
R
A
Éimear Moloney was appointed to the Board in April 2021.
Key strengths: Éimear brings extensive knowledge and experience in capital markets and asset management
to the table. As a Fellow of both the Institute of Chartered Accountants in Ireland and the Institute of
Directors in Ireland, she possesses extensive financial acumen and board governance experience. Her
background also includes significant compliance experience within the pharmaceutical manufacturing sector,
which she brings to both the Board and the Audit & Compliance Committee.
Previous relevant experience: Éimear was a senior investment manager at Zurich Life Assurance (Ireland)
plc, where she honed her skills in investment strategy and financial oversight.
Qualifications: B.A. Accounting & Finance; MSc. Investment and Treasury.
Principal external appointments: Non-executive director of Hostelworld Group plc and Irish Continental
Group plc.
Paul
Murtagh
(Age 51)
United States
of America
Paul Murtagh was appointed to the Board in April 2021.
Key strengths: Paul is the Chairman and Chief Executive Officer of Tibidabo Scientific Industries Limited. His
career includes significant roles in investment banking at Merrill Lynch, where he worked in both New York
and Sydney. Paul brings to the Board a profound understanding of the US market, coupled with extensive
experience in building successful global businesses.
Previous relevant experience: Paul has held prominent leadership roles in various companies. He was
the Chairman and Chief Executive Officer of Faxitron Bioptics LLC and Chairman of Deerland Probiotics &
Enzymes Inc.
Qualifications: B. Comm International.
Principal external appointments: Non-executive director in a number of private companies.
Non-executive directors
Senan
Murphy
(Age 56)
Ireland
Independent
A
Senan was appointed to the Board in October 2022.
Key strengths: Senan brings over three decades of international business experience, spanning multiple
industries such as building materials, renewable energy, financial services and banking. His extensive
background equips him with a deep understanding of diverse market dynamics and strategic financial
management.
Previous relevant experience: Senan has held several high-profile roles that underscore his financial and
strategic expertise. He served as the Group Finance Director at CRH plc, where he was instrumental in driving
and reporting on the company’s sustainability targets. Prior to that, he was the Chief Operating Officer of
Bank of Ireland Group. His career also includes significant roles such as Chief Operating Officer and Finance
Director at Ulster Bank, Chief Financial Officer at Airtricity, and various senior financial positions at GE in
both Europe and the United States.
Qualifications: B. Comm., F.C.A. and Dip. in Professional Accounting.
Principal external appointments: Non-executive director of Bluestar Energy Capital, a US-based global
investor in energy transition and renewable energy. He is also a member of the UCD College of Business Irish
Advisory Board.
Louise
Phelan
(Age 58)
Ireland
Independent
R
Louise was appointed to the Board in April 2023.
Key strengths: Louise is a highly respected business leader and strategic adviser with extensive experience
in both the renewable energy and financial services sectors. Throughout her career she has gained strong
commercial executive experience and valuable insights from her various board and advisory roles. Louise’s
expertise spans across multiple industries, making her an insightful contributor to the Board.
Previous relevant experience: Louise’s career includes her role as Vice President of Global Operations EMEA
at PayPal, where she also held senior positions in customer service, risk operations, and compliance. She also
served as President of the American Chamber of Commerce in Ireland and held a non-executive director role
at Voxpro. Until April 2024, Louise was the Senior Independent Director of Ryanair Holdings plc.
Qualifications: DPhil (hc).
Principal external appointments: Member of the Irish Government’s Top-Level Appointments Committee
(TLAC), and a member of the President’s advisory group at Technological University Dublin.
Company Secretary
Lorcan
Dowd
(Age 56)
Ireland
Lorcan Dowd was appointed Group Company Secretary in July 2005.
Relevant skills & experience: Lorcan qualified as a solicitor in 1992. Before joining Kingspan, Lorcan
was Director of Corporate Legal Services in PwC in Belfast, where he honed his skills in corporate law and
governance. Prior to his tenure at PwC, Lorcan worked as a solicitor in private practice, gaining valuable
experience in various legal disciplines.
Board Committees: A Audit & Compliance N Nominations & Governance R Remuneration
Chair
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Directors’ Report
The Board
REPORT OF THE
NOMINATIONS &
GOVERNANCE COMMITTEE
JOST
MASSENBERG
The Nest
Vermont, USA
Insulated Panels
QuadCore® Optimo®;
QuadCore® KS Series
wall panel systems
At Kingspan, we understand that robust
corporate governance and a strong ethical
foundation are critical to our sustained success.
Our Board is dedicated to embedding these
principles into every facet of our operations,
ensuring that our long-term objectives
are underpinned by the highest corporate
governance standards. We are committed to
continuously evolving our governance practices
to not only meet but exceed the expectations
placed upon us. This commitment is reflected
in our comprehensive reporting, which aims to
provide clear and meaningful insights into how
our governance framework supports our strategic
goals and decision making processes. Our
entrepreneurial Board remains steadfast in its
pursuit of high governance standards, fostering
a culture of accountability and innovation that
benefits all our stakeholders.
One of the key duties of the committee is to
plan for the renewal and succession of the
Board and its committees. During the year, the
Nominations & Governance Committee planned
for the retirement of Linda Hickey, who will step
down as a non-executive director, Independent
Senior Director, and Chair of the Remuneration
Committee following the upcoming AGM.
The process of selecting a new non-executive
director is complete, and the Board has agreed
to appoint Eavan Saunders as a new independent
non-executive director with effect from 1 May
2025. Senan Murphy will become the new Senior
Independent Director following Linda’s retirement.
Further details of the appointment process are
included in this report.
At Kingspan, we remain committed to fostering
an open dialogue with our shareholders and
stakeholders. These insights and feedback are
invaluable to us, and we strive to integrate them
into our strategic, governance, and sustainability
initiatives. Over the past year, we have had the
pleasure of engaging with many of you and
discussing our vision and plans for the future. I
extend my sincere thanks to all the shareholders
who provided their views during our various
engagements. As we approach our upcoming AGM,
I look forward to continuing these conversations.
Jost Massenberg
Chairman
25 February 2025
I am pleased to present the
2024 Nominations & Governance
Committee report covering
the work and activities of the
committee during the year.
At Kingspan, we understand
that robust corporate
governance and a strong
ethical foundation are
critical to our sustained
success.
Annual Report & Financial Statements 2024
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Kingspan Group plc
89
Directors’ Report
Report of the Nominations & Governance Committee
Annual Report & Financial Statements 2024
Kingspan Group plc
88
Corporate Governance Statement
Kingspan is dedicated to upholding the highest
standards of governance, accountability and
transparency. This commitment is established by
the Group Board of Directors and is consistently
communicated across all divisions and
geographical locations within the Group.
This statement outlines how Kingspan has applied
the principles and complied with the provisions
set out in the UK Corporate Governance Code
(July 2018) (the Code) and the Irish Corporate
Governance Annex (the Annex). Both the Code
and the Annex can be obtained from the following
websites respectively: www.frc.org.uk and www.
euronext.com.
Euronext Dublin published the first Irish Corporate
Governance Code in 2024. The provisions of
the new Code will apply to Irish incorporated
companies with a listing on Euronext Dubin for
financial years commencing on or after 1 January
2025. Accordingly, Kingspan, in adopting the new
Code, will report against it for the first time in
respect of 2025.
Statement of compliance
The directors confirm that the Company has,
throughout the accounting period ended 31
December 2024, complied with the provisions of
the Code and the Annex as set out in this report.
Our spirit and values
Our mission is to accelerate a net zero emissions
built environment with people and planet at
its heart.
The Group recognises the importance of the
Kingspan spirit and the role it plays in delivering the
long-term success of the Company. Our business
success is inextricably linked to our behaviours,
and our aspiration is to promote and maintain the
Kingspan spirit based on our core principles:
»
Integrity and transparency: We prioritise
clear, ethical and honest behaviours and
communications;
»
Compliance: We adhere to all applicable laws
and regulations;
»
Safety and wellbeing: We respect and
prioritise the safety and wellbeing of our
colleagues;
»
Protection: We are committed to
safeguarding our Group’s assets; and
»
Sustainability: We uphold our commitment to
a more sustainable future.
By embodying these principles, we aim to ensure
the continued success and positive impact of
Kingspan.
Board committees
The Board has established three standing
committees: Audit & Compliance, Nominations &
Governance, and Remuneration. Each committee
operates under written terms of reference that
outline their authorities and duties, which are
available on the Group’s website at
www.kingspan.com.
The activities of each committee throughout the
year are detailed in their respective reports within
this Annual Report.
The members of each committee as at the
date hereof, along with the date of their first
appointment to the committee and their
attendance at Board and committee meetings are
set out in the following tables.
Attendance at AGM, Board and Committee meetings during the year ended 31 December 2024
AGM 2024
Board
(maximum 8)
Audit &
Compliance
(maximum 4)
Nominations
& Governance
(maximum 1)
Remuneration
(maximum 4)
Jost Massenberg
ü
8/8
1/1
Gene Murtagh
ü
8/8
Geoff Doherty
ü
8/8
Russell Shiels
ü
8/8
Gilbert McCarthy
ü
8/8
Linda Hickey
ü
8/8
1/1
4/4
Anne Heraty
ü
8/8
4/4
1/1
Éimear Moloney
ü
8/8
4/4
4/4
Paul Murtagh
ü
8/8
Senan Murphy
ü
8/8
4/4
Louise Phelan
ü
8/8
4/4
Audit & Compliance Committee
Senan Murphy (Chair)
Appointed 2022
Independent
Anne Heraty
Appointed 2019
Independent
Éimear Moloney
Appointed 2021
Independent
Nominations & Governance Committee
Jost Massenberg (Chair)
Appointed 2019
Independent
Linda Hickey
Appointed 2021
Independent
Anne Heraty
Appointed 2023
Independent
Remuneration Committee
Linda Hickey (Chair)
Appointed 2015
Independent
Éimear Moloney
Appointed 2023
Independent
Louise Phelan
Appointed 2023
Independent
The Nominations & Governance Committee met once
in 2024. The activities of the committee included the
following matters:
»
Planning for the retirement of Linda Hickey;
»
Assessing candidates for appointment as new
independent non-executive directors (iNEDs);
»
Reviewing committee membership;
»
Nominating directors for re-election at the AGM;
»
Approving the Report of the Nominations &
Governance Committee; and
»
Considering shareholder feedback from the
2024 AGM.
Board responsibilities
At Kingspan, there is a clear division of responsibilities
between the Board and executive management. The
Board retains control over key strategic and major
decisions, ensuring effective governance and oversight.
The Chairman leads the Board and is responsible for
its overall effectiveness in directing the Company. A
key role of the Chairman is to promote a culture of
objectivity, openness, and debate. Additionally, the
Chairman facilitates constructive Board relations,
promotes the effective contribution of all non-
executive directors, and ensures that directors receive
accurate, timely, and clear information.
The Board’s diverse skills, backgrounds and
perspectives contribute to the effective leadership
and strategic development of the business. The
composition of the Board is central to ensuring that all
directors can contribute meaningfully to discussions.
The Board continually reviews its composition to
ensure ongoing refreshment and relevance.
As a means of fostering open dialogue and director
engagement, the non-executive directors, led by
the Senior Independent Director, meet without the
Chairman present at least annually. Similarly, the
Chairman holds meetings with the non-executive
directors without the executives present. These forums
encourage scrutiny, discussion and challenge in a
collaborative atmosphere.
All directors have access to the advice and services
of the Company Secretary. Where necessary, or
requested, directors can also avail of independent
third-party advice on Company issues or relevant
Board matters including, but not limited to, matters
such as remuneration and succession. The Company
has procedures in place to ensure that all new
directors receive formal induction and familiarisation
with Kingspan’s business operations, sustainability
matters and systems on appointment. This
includes visits to manufacturing sites with detailed
explanations of the site operations.
Annual Report & Financial Statements 2024
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Directors’ Report
Report of the Nominations & Governance Committee
Roles and Responsibilities
The Board
The Board is responsible for the effective
leadership and the long-term success of the
Group, generating value for shareholders and
contributing to wider society. It shapes the
ethos and values of the Group, oversees the
implementation of strategy and ensures good
corporate governance practices are in place.
Chairman
The Chairman’s primary responsibility is to
lead the Board. The Chairman is responsible
for setting the Board’s agenda and for the
efficient and effective working of the Board.
The Chairman ensures that all members of the
Board, particularly the non-executive directors,
have an opportunity to contribute effectively
and openly. The Chairman is also responsible for
ensuring that there is appropriate and ongoing
communication with shareholders.
Senior Independent Director
The Senior Independent Director of the Board is
available to shareholders who have concerns that
cannot be addressed through the Chairman, Chief
Executive Officer or Chief Financial Officer. The
Senior Independent Director also leads an annual
meeting with the non-executive directors to
appraise the workings of the Board.
Chief Executive Officer
The Board has delegated executive responsibility
for running the Group to the Chief Executive
Officer and the executive management team.
The Chief Executive is responsible for the strategic
direction and the overall performance of the
Group, and is accountable to the Board for all
authority delegated.
Company Secretary
All directors have access to the advice and services
of the Company Secretary who is responsible for
ensuring that Board procedures are followed.
The Company Secretary is also responsible for
advising the Board, through the Chairman, on all
governance matters.
Workforce engagement
The Board recognises the importance of engaging
with all of our key stakeholders. Elsewhere in this
Annual Report we have detailed the long-lasting
partnerships we have developed with customers,
suppliers and communities. We greatly value
engagement with our workforce. Our people are
key to developing and delivering on our strategy,
and are fundamental to our long-term success.
Linda Hickey, as Senior Independent Director, is
appointed as the director responsible for workforce
engagement, to facilitate the channelling of
employee views to Board discussions. During the
year, she had the opportunity to hear employee
views on a range of topics through engagement
with our People Passionate team, attendance
at our European Works Council meeting in the
Netherlands and by meeting employees onsite
during Board visits.
In 2022, our first European Works Council (EWC)
was established providing a platform to engage
with our employees at a European level on the
strategy and development of the business, as well
as employment, investments and its transnational
issues. The EWC met in person for its second
plenary meeting at the Kingspan Unidek site in
the Netherlands in November 2024. Eighteen
representatives participated in a varied agenda
that included business and financial updates and
presentations on the wider business strategy. We
also discussed Health & Safety matters and had
updates on our People Passionate and Planet
Passionate programmes. Senior management
attended along with Linda Hickey, the Workforce
Engagement Director. These meetings have been
constructive with a very high level of engagement
from the national employee representatives.
We are People Passionate and during 2024
Kingspan continued to progress the design
and implementation of the People Passionate
programme across all its global businesses. This
programme is a team-led initiative, designed to
create the employee experience together.
A global steering group representing all divisions
held quarterly meetings during the year,
establishing a fresh governance and reporting
framework across the Group. The businesses
have integrated the People Passionate pillars
into their people and organisational plans and
continue to report on progress and measure the
effectiveness of their actions through feedback
from employees. All the key processes are being
built into a new global technology platform which
was commissioned during the year, to enable
the overall execution of the People Passionate
programme.
During the year the Group performance and
development framework was refreshed, and
associated communications and development
programmes were also published to underpin this
priority. To further support high performance,
three new leadership programmes were rolled out
aligned with the business drivers. To date, over
250 leaders have completed these development
programmes across all our businesses.
The Group Inclusion & Diversity Forum undertook
a survey to better understand and promote an
inclusive workplace. The recommendations of this
survey will shape the 2025 priorities, with a number
of people policies having already been adopted
by the Board and launched across the Group
with the associated staff training. These include
the Inclusion & Diversity Policy and the People &
Organisation Policy.
The People Passionate programme has also been
introduced and shared with our recently acquired
businesses. This approach helps to articulate the
Kingspan spirit and encourages integration into
the Group.
These strong People Passionate foundations have
been set and underpinned by clear and active
commitment from the Group CEO and the Board.
Board diversity
The Board values diversity in all its forms and
recognises the role it can play in contributing to
the Board’s perspective and decision making. The
Board adopted a Board Diversity Policy in 2022
which supports:
»
increasing female representation on the
Board over the coming years to achieve the
best practice benchmark of a minimum 40%
representation of both genders; and
»
increasing the international representation on
the Board.
A copy of the Board’s policy is available on the
Group’s website www.kingspangroup.com. The
Board intends to achieve these objectives through
future appointments as the Board is refreshed,
having regard for the need to maintain a stable
and effective Board during this period.
The Board currently comprises seven male and
four female directors (including the Senior
Independent Director) with female directors
representing 36% of the Board. The Company
continues to make progress towards meeting
the Board’s Diversity Policy target of 40% female
representation, along with its broader gender and
international diversity objectives.
Ilot 4B
Nantes, France
Insulated Panels
JI Sonora 25 facade
cladding profile
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Directors’ Report
Report of the Nominations & Governance Committee
Aligning succession planning to Kingspan’s
wider strategy is a cornerstone of strong board
governance, and has been, and will continue to
be, a focus of the committee. A fundamental
aspect of overseeing appointments to senior
management remains the development of a diverse
leadership pipeline. Among Kingspan’s senior
management team, 31% of senior leadership roles
reporting directly to the CEO are held by females,
reflecting the Company’s ongoing commitment
to gender diversity in leadership. Furthermore, this
year 20% and 44% of attendees on Kingspan’s
senior management and graduate development
programmes respectively were female, and 80%
and 69% of the participants in the respective
programmes were from an international (non-Irish)
background, as Kingspan is attracting more and
more diversity into senior leadership roles.
Board composition and renewal
Kingspan is committed to the ongoing renewal
of the Board, which is essential to bring fresh
thinking and constructive challenge to the Board’s
decision making. The Nominations & Governance
Committee leads the process for Board
appointments while ensuring plans are in place for
orderly succession to both the Board and senior
management positions.
In 2024, the committee led the search for
the appointment of a new independent non-
executive director. In considering candidates for
appointment as non-executive directors, the
committee remains guided by the principle that
all appointments will be made based on merit
and skills, whilst having regard to our Board
Diversity Policy, including diversity of gender, age,
nationality and ethnicity. The Board believes that
international skills and experience are equally as
important as nationality, and will have regard to
both factors in making appointments.
The committee agreed the criteria for the new
appointment, to include broad international
experience along with commercial and regulatory
expertise. The committee considered whether or
not to engage a firm of consultants to assist in
the process of recruiting the new non-executive
director, and agreed that in order to ensure best
fit with the Company, it would use the extensive
knowledge and contacts of the committee to
identify suitable candidates.
The committee maintains a pool of potential
candidates which it considered. Having had
regard to key criteria for the role, the committee
identified Eavan Saunders, Managing Partner
of Dentons Solicitors Ireland, as its preferred
candidate to recommend for approval to the
Board. With over 25 years’ experience in London
and Dublin as a top-tier corporate lawyer
specialising in international M&A and capital
markets, working with an array of multinational
public and private sector clients across many
different sectors. Ms Saunders’ appointment
reflects Kingspan’s global business and broadens
the skillset and experience of the Board, whilst
ensuring that the appointment process is aligned
with our diversity commitment.
Key strengths and relevant experience of each
of our current directors are set out in the Board
biographies in the Directors’ Report, and a
breakdown of the background and principal skills
and experience of the non-executive directors on
the Board is set out in the table below.
As part of the committee’s continuous Board
succession planning, the committee also reviewed
the membership of the Board committees,
and agreed the following appointments with
effect from 1 May 2025, following Linda Hickey’s
retirement from the Board:
»
Senan Murphy appointed as Senior
Independent Director;
»
Éimear Moloney appointed as workforce
engagement iNED;
»
Eavan Saunders to be appointed as CSR
engagement iNED;
»
Éimear Moloney appointed as Chair of the
Remuneration Committee;
»
Eavan Saunders to be appointed to the
Remuneration Committee; and
»
Louise Phelan appointed to the Nominations &
Governance Committee.
Board induction programme
Upon joining the Board, each new director
participates in an induction programme to gain
an understanding of Kingspan and enhance
effectiveness in the non-executive role. The
induction programme is built around a series of
meetings with the Board, the Company Secretary
and key members of the senior management
team as well as onsite visits to understand the
operations of the business. Each new director also
completes online training on Directors’ Duties
as well as the Market Abuse Regulations and
Kingspan’s Share Dealing Policy and Code.
Board evaluation
Kingspan has established formal procedures for
evaluating its Board, committees and individual
directors. The primary objective of this evaluation
is to ensure that the Board, both collectively
and individually, is performing effectively and to
maintain stakeholder confidence in its governance.
Annual and triennial reviews
The Chairman conducts an annual review of the
Board’s performance and the conduct of Board and
committee meetings. Additionally, every third year,
an externally facilitated review of the Board’s overall
corporate governance is undertaken. The next
triennial external review will be undertaken in 2025.
As detailed in our 2022 Annual Report, an externally
facilitated review of the Board’s performance was
conducted in 2022 by Better Boards. Following
this evaluation, the Board has implemented
its recommendations, including the adoption
of a formal Board Diversity Policy. This policy
underscores the Board’s commitment to enhancing
diversity and proactively addressing gender and
diversity targets through upcoming vacancies.
In 2024, the Chairman carried out his annual
review through a series of one-on-one meetings
with each executive and non-executive director.
Additionally, feedback was gathered from the
Senior Independent Director, who conveyed the
collective views of the non-executive directors
regarding the Board’s operations. The outcome
of this evaluation process was positive, providing
the Board with assurance that it is functioning
effectively.
Effectiveness and independence
The committee conducts an annual review of
the Board’s size and performance to ensure its
effectiveness. This process is designed to maintain
the impartiality and independence of non-
executive directors, enabling them to meet the
challenges of their roles effectively. Throughout
the year, 55% of the Board was composed of
independent non-executive directors. Linda
Hickey serves as the Senior Independent Director,
providing a sounding board for the Chairman
and acting as an intermediary for other directors
and shareholders when necessary. The directors
consider that the Board has strong independent
representation.
Assessment of independence
The Board carefully considers various factors
that might affect, or appear to affect, the
independence of its directors. It has determined
that all non-executive directors, with the exception
of Paul Murtagh, are independent.
In evaluating Linda Hickey’s independence, the
Board had due regard to her length of service on
the Board, and to her previous position as a senior
executive at Goodbody Stockbrokers, one of the
Company’s corporate brokers from which she
retired in April 2019. In 2022, the committee agreed
to extend the term of Ms Hickey for a period of up
to three years to 2025, subject to annual re-election
at the AGM, in order to maintain a stable and
effective Board during that period.
In assessing Ms Hickey’s independence, the
committee concluded that she has consistently
demonstrated a strongly independent voice at the
Board and its committee meetings, including as
chair of the Remuneration Committee, and that
she has always exercised her judgement as a non-
executive director and as the Senior Independent
Director, independent of any other relationships
within the Board. The Board also took into account
her extensive experience in capital markets and
governance, which is hugely valuable to the
Experience/Skillset
Jost
Massenberg
Linda
Hickey
Anne
Heraty
Éimear
Moloney
Paul
Murtagh
Senan
Murphy
Louise
Phelan
Domicile
Germany
Ireland
Ireland
Ireland
USA
Ireland
Ireland
International
ü
ü
ü
ü
ü
ü
ü
Financial
ü
ü
ü
ü
ü
ü
ü
Capital markets
ü
ü
ü
ü
ü
ü
Governance
ü
ü
ü
ü
ü
ü
ü
Leadership
ü
ü
ü
ü
ü
ü
ü
Industry
ü
ü
ü
ü
ü
ü
Environmental*
ü
ü
ü
ü
Risk
ü
ü
ü
Workforce
ü
ü
ü
ü
ü
ü
ü
* In particular, with respect to Kingspan’s markets, raw materials and Planet Passionate strategy.
Annual Report & Financial Statements 2024
94
Kingspan Group plc
95
Directors’ Report
Report of the Nominations & Governance Committee
Company and our shareholders, and concluded
that her independence was not affected.
Conflicts of interests
The Board recognises the critical role of
independent representation in ensuring the
effective functioning of the Board. Independent
directors provide essential scrutiny and, where
necessary, challenge management as part of
a robust governance framework. To manage
conflicts of interest, the committee has
implemented a comprehensive Conflicts of Interest
Policy that guides all Board decisions when actual
or potential conflicts arise.
Policy guidelines
The policy mandates that directors must avoid
situations where they have, or could have,
a direct or indirect interest that conflicts, or
may conflict, with the Company’s interests.
Directors are required to notify the Board of
any potential situational and/or transactional
conflicts. Upon receiving such notifications, the
Board will evaluate the conflict and determine
the appropriate course of action. The Board’s
considerations will include:
»
Avoidance or documentation: Whether the
conflict needs to be avoided entirely or simply
documented;
»
Impairment of impartiality: Whether the
conflict will realistically impair the director’s
ability to participate impartially in decision
making;
»
Appearance of impropriety: The potential for
creating an appearance of improper conduct
that could undermine confidence in, or the
reputation of, the Company; and
»
Mitigation measures: Any steps that can
be taken to avoid or mitigate the potential
conflict.
Directors are prohibited from participating in
discussions or voting on matters in which they
have a conflict of interest. This ensures that all
decisions are made impartially and in the best
interest of the Company.
External commitments
Directors are permitted to serve on other boards,
provided they continue to demonstrate the
necessary commitment to effectively discharge
their duties. The committee continuously reviews
the extent of the directors’ external interests
throughout the year to ensure they do not interfere
with their responsibilities to the Company.
The committee is confident that each director
dedicates sufficient time to their duties related
to the Company. Both the Chairman and each
director have confirmed their ability to fulfil their
obligations to the Company. The committee
will maintain ongoing oversight of the external
commitments of all directors to ensure continued
compliance and dedication.
Shareholders’ meetings and rights
The Company operates under the Irish Companies
Act 2014 (the Act). The Act provides for two types
of shareholder meetings: the Annual General
Meeting with all other meetings being called
Extraordinary General Meetings.
Annual General Meeting (AGM)
The Company is required to hold an AGM each
year, in addition to any other shareholder
meetings that may occur within the same
year. The AGM serves as a crucial platform for
shareholders to engage with and hear from the
Company’s directors. The ordinary business of an
AGM includes:
»
Receiving and considering the Company’s
Annual Report and statutory financial
statements;
»
Reviewing the affairs of the Group;
»
Electing directors;
»
Declaring dividends;
»
Appointing or reappointing auditors; and
»
Fixing the remuneration of auditors and
directors.
Extraordinary General Meeting (EGM)
All other shareholder meetings outside the
AGM are classified as EGMs. These meetings are
convened to address urgent or special matters
that require shareholder approval.
Meeting protocols
»
Chairmanship: The Chairman of the Board of
Directors presides over every general meeting.
In the Chairman’s absence, one of the directors
present will assume the role of chairman.
»
Quorum: A quorum for a general meeting
requires the presence of at least three
members, either in person or by proxy, who are
entitled to vote.
»
Voting rights: All ordinary shares rank pari
passu and carry equal voting rights. Each
member present in person or by proxy has one
vote on a show of hands and one vote per
share on a poll. In the event of a tie, whether
on a show of hands or a poll, the chairman has
a casting vote.
Further details regarding shareholders’ rights
in relation to General Meetings can be found in
the Report of the Directors and the Shareholder
Information section of this Annual Report.
The Grenfell Inquiry and Eversheds Sutherland
Review
In September 2024, Kingspan welcomed the
publication of the final report from the Grenfell
Inquiry, which is crucial to a public understanding
of what went wrong and why.
The report clearly and unambiguously explained
that the type of insulation was immaterial to the
speed of fire spread, and that the principal reason
for the fire spread was the external polyethylene-
cored ACM cladding, which was not made or
provided by Kingspan.
Kingspan has long acknowledged that
unacceptable historical failings occurred in
part of our UK insulation business. While deeply
regrettable, these failings were not found to be
causative of the fire.
The Board and CEO of Kingspan have taken
extensive steps (cultural, operational and
structural) to address the historic failings. These
include the implementation of extensive and
externally verified measures to ensure our conduct
and compliance standards are world leading,
including:
(1) the roll-out of a group-wide ISO 37301 global
compliance programme,
(2) implementation of a group-wide Marketing
Integrity Manual ensuring the highest
standards of product information in its
marketing and certification,
(3) internal audit of product and marketing
compliance, and
(4) an updated Code of Conduct and external
Speak Out hotline for all businesses. Further
details of the measures taken by Kingspan
are published on our microsite: inquiry.
kingspan.com.
As reported in 2021, Kingspan announced
a rigorous review, conducted by Eversheds
Sutherland, of compliance and governance in our
UK Insulation Boards business, to ascertain how
the issues identified in the course of the Inquiry
occurred, what changes had been made by the
business, and what further actions should be
taken (the Recommendations).
In its 2024 report, Eversheds Sutherland were
engaged to undertake a further review to assess
whether all of the Recommendations had been
actioned fully. In its report, issued in January 2024,
Eversheds Sutherland found that:
»
All of the Recommendations have been
actioned;
»
Implementation of the Recommendations has
been carried out to a very high level;
»
There is strong evidence of an appropriate
focus and commitment to compliance at
Group and divisional level;
»
Compliance is embedded across the activities
of the Group and the Insulation Division;
»
The Group has applied significant resources
to compliance and has appointed high
quality personnel to key positions across the
Compliance, Marketing, Technical and Audit
functions across the Group and the Insulation
Division;
»
There is strong evidence of clear accountability
for risk management, specifically in respect
of fire testing, accreditation, classification of
products and marketing material; and
»
There is clear evidence of consistent, well-
documented and effective controls and audit
practices in respect of product changes,
training, fire testing and representation of
product capabilities in the sale process.
Further details of the Eversheds Sutherland’s
Review and Recommendations is published on our
microsite: inquiry.kingspan.com.
Kingspan has committed to pay our share
of remediation costs in circumstances where
we have responsibility for the inappropriate
use of our K15 insulation product in buildings,
and its safe retention cannot be supported by
testing. Kingspan also continues to stand by our
commitment to contribute to an appropriate
industry-wide scheme, to address wider fire safety
issues where those responsible can’t or won’t pay.
Annual Report & Financial Statements 2024
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Kingspan Group plc
97
Directors’ Report
Report of the Nominations & Governance Committee
BOARD BALANCE
AS AT 31 DECEMBER 2024
INDEPENDENCE
GENDER DIVERSITY
AGE RANGE
TENURE
45%
55%
64%
36%
Independent
Non-Independent
Female
Male
51-60
61-70
36%
64%
46%
18%
27%
9%
Less than 3 years
More than 3 and Less than 6 years
More than 6 and less than 9 years
More than 9 years
Industrial Building
ASPLA
Almería, Spain
Insulated Panels
Veneto 85 linear
ceiling
Annual Report & Financial Statements 2024
98
Kingspan Group plc
99
Directors’ Report
Report of the Nominations & Governance Committee
REPORT OF THE
REMUNERATION
COMMITTEE
LINDA
HICKEY
Kingspan has continued its growth to be a
highly successful, global organisation since our
Remuneration Policy was last reviewed, with
the creation of a new division, a materially
broadened product range and further
geographical expansion. The proposed changes
to our Remuneration Policy will ensure Kingspan’s
remuneration arrangements allow us to secure
the calibre of talent and skill sets required and
incentivise them to continue to deliver our strategy
in a highly competitive global market in the
coming years.
Remuneration philosophy and approach
Kingspan’s remuneration philosophy is a simple
one: to pay for performance and delivery of
our strategy, based on transparent metrics
and ambitious targets, clearly aligned with the
interests of shareholders and other stakeholders.
Our current Directors’ Remuneration Policy was
approved by shareholders at our 2022 AGM. Apart
from some increases to opportunity and changes
to the policy to reflect changes in governance
practice, the implementation of the remuneration
policy has remained largely unchanged from the
policy approved in 2019. Following another year of
record financial performance in 2024, at the 2025
AGM a revised remuneration policy will be put to
shareholders for approval. The new policy includes
certain changes to reflect the significant increase
in the size and complexity of the Group and its
operations over the past number of years and to
ensure we have a policy which is fit for purpose for
the future.
2024 business performance and pay outcomes
This year was another record year for Kingspan
despite sluggish growth and geopolitical
uncertainties affecting construction activity in
many of our core markets. Group revenues rose
to €8.6bn (6%), trading profit was €907m (up
3%) and Earnings Per Share (EPS) increased to
365.2 cent (up 4% over prior year). The delivery of
this record financial performance was driven by
significant progress across our key strategic pillars.
Geographic expansion continued both organically
and through acquisition. We added new innovative
bio-based insulations to our product suite, growing
the range and scale of our Roofing + Waterproofing
division, and made excellent progress towards
Statement by the Chair of the
Remuneration Committee
Dear Shareholders,
On behalf of the Remuneration
Committee (the committee),
I am pleased to present the Report
on Directors’ Remuneration for
2024. I would also like to thank
shareholders for their support at our
2024 AGM when our Remuneration
Report was supported by over 98%
of votes cast.
Kingspan has continued its
growth to be a highly successful,
global organisation since our
Remuneration Policy was last
reviewed, with the creation of
a new division, a materially
broadened product range and
further geographical expansion.
Contents
Page
Statement by the Chair
101
Remuneration at a glance
109
Remuneration Policy
110
Annual remuneration report
- 2024 remuneration outturn
116
- Implementation of the Remuneration Policy for 2025
124
- Committee governance
125
Le Pal
Amusement Park
Saint-Pourçain-sur-
Besbre, France
Insulated Panels
LANDRYBAC®
roofing profile
Annual Report & Financial Statements 2024
100
Kingspan Group plc
101
Directors’ Report
Report of the Remuneration Committee
Annual Report & Financial Statements 2024
Kingspan Group plc
100
our Planet Passionate objectives, all of which are
detailed throughout this Annual Report. As we
continue to grow, and deliver for shareholders, our
focus has been to ensure not only the retention
and motivation of our management team but
ensure we remain able to attract new talent, which
bring diverse and innovative skills to Kingspan.
In 2024, and as detailed in last year’s Annual
Report, the CEO and Mr Shiels received basic
salary increases of 5%, and Mr Doherty and
Mr McCarthy received increases of 9.5%. This
compares with general workforce increases for
the markets in which they are based of c.4% to
5%. The increases in base salaries for Mr Doherty
and Mr McCarthy were aligned with increases in
the scope of their responsibilities (as set out in
last year’s Annual Report). Pensions for executive
directors were reduced again in 2024, in line with
the stepped reductions previously agreed to bring
executive pensions to between 12% and 14% in
2024, with further reductions to 10% of salary for
all executive directors, effective from 2025.
Annual bonus targets for 2024 were based on
a mixture of Group and divisional financial
performance measures, as well as non-financial
targets based on customer experience Net
Promoter Score (NPS). Payouts under the annual
bonus scheme for executive directors in 2024
were between 40.6% and 63.6% of maximum,
reflecting strong Group results and robust
divisional performances in the year, against
stretching targets. Full details of bonus payouts
are detailed on page 118.
Vesting levels under the Performance Share Plan
(PSP) awards made in 2022 were at 23.14% of
maximum, with EPS targets partially met at
13.14% and Planet Passionate targets being
achieved in full. The Total Shareholder Return
(TSR) element of the PSP failed to vest due to
performance below the median of Kingspan’s
peer group. Despite record financial performance
during the performance period, vesting levels
under the PSP were low, reflecting the stretching
targets set by the committee as well as the high
EPS and TSR starting points because of strong
performance in previous years. Full details of
vesting levels and targets are detailed on page 119.
Policy review
Over the last six years, Kingspan has transformed
in terms of global breadth, scope, scale and
performance. The business has grown, organically
and through acquisition, into a diversified global
provider of advanced insulation and building
envelope solutions. At the heart of Kingspan’s
growth and transformation has been our executive
team. Kingspan’s ambitious strategy has been
developed and executed by this team with the
support of senior management and under the
stewardship of the Board. The consistent delivery
of strategy, resulting in record profits year on year
since 2019 despite a variety of challenging trading
conditions, means that Kingspan today is a larger,
stronger and more robust business.
Objectives of the review
As Kingspan continues to refine and enhance its
strategy, identifying new products and markets
for further growth, the committee is conscious
of ensuring remuneration arrangements for our
high performing executive and senior teams are
competitive when reviewed against global and
local peers, where pay levels are materially higher.
On the back of significant growth and increasing
competition for high calibre talent, during the
second half of 2024 the committee conducted a
comprehensive review of the existing executive
directors’ remuneration arrangements, with the
support of independent remuneration advisors,
and through direct engagement with shareholders.
While our philosophy on remuneration has not
changed, the scope, scale and reach of our
business has. As a global company, operating
in multiple markets with differing levels and
structures of remuneration, the committee was
fundamentally aware of the growing challenges
in attracting and retaining talent at all levels of
the organisation, and the effects of compression
on the next layers of senior management below
executive director. Recognising there is scrutiny on
any changes in remuneration from stakeholders,
the committee is charged with ensuring
the remuneration framework and incentive
arrangements will allow us to compete for talent
at every level, which is a core component of our
ability to continue to create value for shareholders
and other stakeholders in the years ahead.
Following a period of high growth and
performance, the committee has sought to put in
place a remuneration policy that will support the
continued delivery and evolution of strategy, as
we look to ensure that the key strategic decisions
made in recent years under the executive directors
and senior management continue to deliver high
levels of performance and returns.
In reviewing the remuneration policy, the
committee was guided by the following key
priorities:
»
Strengthening the link between pay and
performance: Our philosophy centres on
rewarding sustainable, long-term business
growth and value creation for shareholders.
Achievement of higher potential pay outcomes
under the proposed policy will only occur in
the event of the delivery of higher levels of
performance, based on additional metrics and
stretching targets set against previous years’
performance.
»
Ensuring market competitiveness: While we
do not aim to position remuneration at the
market median, the current gap between our
pay levels and those of our peers has widened
to an extent that could undermine our ability
to retain and attract senior talent, particularly
when viewed against the changes the Group
has undergone over the past number of years.
»
Flexibility and foresight: The new policy
is designed to provide flexibility and remain
relevant over the next four years, reflecting
the Group’s growth trajectory and the evolving
priorities of our business and stakeholders.
Business strategy and performance context
Kingspan first adopted a Remuneration Policy
in 2019, which was subsequently updated and
approved in 2022, largely to reflect changes
in governance practice and to allow for the
potential increase in opportunity under the PSP.
While the changes in 2022 were important, they
did not fundamentally alter the remuneration
structure or potential reward levels. As outlined,
performance during the same period has
transformed the size and scale of the Group, as
set out in the table below.
In addition to our strong performance and
growth over the past number of years, the Group
has made significant progress in evolving and
achieving its strategic priorities, resulting in
consistently high performance.
»
Completing the envelope: Established a new
Roofing + Waterproofing division and grown
what was our nascent Light, Air + Water
business to c.€1bn revenue with the integration
of several acquisitions in both Europe and the
Americas.
»
Innovation: Expanded our range of products
to offer the full spectrum of insulation solutions
including natural and stonewool insulation
products, as well as lower embedded carbon
products.
»
Planet Passionate: Set ambitious Planet
Passionate targets for 2030 aligned with a
1.5°C goal, approved by the Science-Based
Initiative.
»
Globalisation: Continued to expand our
geographic footprint through both organic
and inorganic growth in Latin America and
Southeast Asia.
Our sector peers
While the primary drivers of the proposed
remuneration policy changes are to incentivise
superior performance of the existing management
team, the committee employed benchmarking
data as a reference point in determining the
appropriateness, and extent of, any changes to
the remuneration policy. In determining the final
proposals, the committee selected a comparator
peer group which reflects Kingspan’s operations,
complexity, size and global footprint. They represent
a comparable group of companies against whom
we measure our performance (which comprise
the 2024 TSR benchmark for long-term incentive
awards) and compete for senior level talent and
expertise. The committee also had regard to local
Irish listed peers, and a London Stock Exchange
(LSE) peer group of 30 companies which have a
median that is reflective of both Kingspan’s market
capitalisation and revenue.
1 Calculated using average share price as of Q4 2018 and Q4 2024, and assuming dividends are
reinvested.
2018
2024
% Change
Revenue growth
€4.4bn
€8.6bn
Up 95.5%
EPS performance
184.0c
365.2c
Up 12.1% CAGR
TSR performance1
€39.07
€75.85
Up 101.2%
Global scale
13,469 employees
70 countries
25,401 employees
80 countries
Up 88.6%
Annual Report & Financial Statements 2024
102
Kingspan Group plc
Directors’ Report
103
Report of the Remuneration Committee
CEO - TOTAL TARGET REMUNERATION COMPARED TO 13 INTERNATIONAL PEERS AND AN
LSE GROUP
€0
€2,000
€4,000
€6,000
€8,000
€10,000
Expected Value of LTIs
On-target bonus
Total fixed pay
M
L
K
J
Kingspan CEO - Current FY24
LSE Group - Lower Quartile
I
Kingspan CEO - FY25
H
LSE Group - Median
G
F
LSE Group - Upper Quartile
E
D
C
B
A
The peer comparator group includes:
Armstrong World
Industries Inc
Masco Corporation
Boral Ltd
Mohawk Industries Inc
Builders FirstSource Inc
Owens Corning Inc
Carlisle Companies Inc
Rockwool A/S
Compagnie de Saint
Gobain SA
Sika AG
CRH plc
Wienerberger AG
Holcim AG
While some investors express a preference to limit
comparisons of their remuneration practices to
local peers, Kingspan is a truly global business.
We have a significant footprint in the Americas,
where 17% of our employees are based and 22%
of our revenue was generated in 2024. The Group
has a US-based executive director and senior
management team, as well as a ‘hands on’
management culture, with our executive directors
and senior management taking a global approach
by directly overseeing and managing our significant
operations in our many different jurisdictions.
While our primary review has taken account of our
global business and footprint, our remuneration
arrangements are also reviewed against Irish
and UK listed companies with similar sizes and
operations, where the pay gap was similar.
Analysis of our comprehensive peer group
demonstrates that pay is significantly below
market rates at our most direct competitors
and peers, a gap that has persisted over time,
despite continued growth and strong financial
performance. The committee, in determining the
final structure of the proposed policy, identified
a significant risk around the disconnect between
our pay and performance, our pay and market
position, and our pay and calibre of talent. The
increasingly competitive global landscape for senior
leadership talent has resulted in upwards pressure
on pay, significant compression challenges and we
have observed disparities when recruiting talent
outside of the market where we are incorporated.
Shareholder engagement
As part of the review, and to ensure we
incorporate the views of our shareholders in our
decision making, we wrote to holders of over 79%
of the Company’s issued share capital, to set
out proposed changes to our policy and to solicit
feedback. In response, we were pleased to have
met with, or received written feedback from,
shareholders representing over 56% of the issued
share capital, as well as both major proxy advisors.
As a committee, and a board, we have always
valued meaningful engagement with shareholders,
which has consistently played a role in determining
our approach to governance, remuneration and
reporting. During engagement, the committee
articulated the rationale and objectives of the
review set out in this report, considerations that
shareholders acknowledge and were supportive of.
The Remuneration Policy being put to shareholders
has been crafted following three rounds of
constructive engagement with shareholders and
proxy advisors, as set out overleaf.
Engagement
First round
Second round
Third round
Timing
July 2024
November - December 2024
January - February 2025
Extent of
engagement
»
Letter issued
to shareholders
representing 23%
of issued share
capital to present
initial proposals.
»
Received feedback
from shareholders
representing 23% of
issued share capital.
»
Letter issued to additional
shareholders representing
56% of issued share
capital to present
revised proposals.
»
Received feedback from
shareholders representing
23% of issued share
capital (in addition
to those that already
provided feedback
through the first round).
»
Met proxy advisor
Glass Lewis.
»
Follow-up on second
round of engagement
and presentation of
final proposals.
»
Received feedback
from shareholders
representing 10% of
issued share capital.
»
Total shareholder
feedback received
through the
engagement process
was 56% of issued
shared capital.
»
Met proxy advisor ISS.
Main
outcomes
Gathered broad
shareholder support
for our approach.
Revised the proposals
to increase downside risk
for executive directors
(see further commentary
below on the TSR multiplier
attached to the proposed
LTIP).
Clarified the timing of the
review (see commentary
below).
Gathered broad shareholder
support for our revised
proposals.
Communicated detailed
rationale for the changes
to policy, with a significant
majority of shareholders
supportive of the proposed
changes.
The final proposed changes to the remuneration
policy reflect changes made as a result of the
extensive programme of shareholder consultation
over a six-month period:
»
Support was expressed for the introduction
of new metrics, including Return on Capital
Employed (ROCE) as part of the LTIP and
Health & Safety in the annual performance
bonus.
»
Almost all shareholders were supportive of the
rationale for the increase in maximum bonus
and LTIP opportunities, given the significant
increase in the size of the business, the
recognition of remuneration below market,
and the committee’s track record of setting
stretching targets (in 2024, payouts under the
annual bonus scheme for executive directors
were between 40.6% and 63.6% of maximum,
despite the delivery of record financial
performance).
»
Shareholders noted the risk around the TSR
multiplier potentially protecting executives
from share price volatility, which has been
addressed by introducing a potential reduction
in overall vesting levels in the event of TSR
performance below median.
Timing of the review
The committee and shareholders also discussed
the timing of the proposed revision. As part of its
review, the committee carefully considered the
Grenfell Inquiry’s Phase 2 Report (the Inquiry),
and had regard both to the report’s findings
and the extensive measures taken by the Group
in response thereto, as detailed in the Report
of the Nominations & Governance Committee.
The committee also recognised that in 2021, the
committee exercised its discretion to reduce the
executive directors’ 2020 bonuses to zero (despite
record performance) and that there was no pay
increases for 2021, considering the matters which
came to light during the Inquiry at that time.
Both the committee and many shareholders
recognised the need to make these policy changes
to continue to drive superior performance over the
next four years. The committee was unanimous
that now was the appropriate time to review the
Remuneration Policy, given the lack of material
changes to the policy since 2019 and the change
to the scale and global nature of the Kingspan
business during that time. In this context and
being conscious of the risks of a failure to address
pay disparities as we enter the next phase of
growth, the committee concluded that it was
CEO Remuneration (€'000)
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Annual Report & Financial Statements 2024
Kingspan Group plc
104
appropriate to put the revisions of the policy to
shareholders at the 2025 AGM.
Proposed policy and 2025 implementation
The table below sets out a side-by-side
comparison of our current Remuneration Policy
and the proposed changes, to be effective from
2025. Detailed notes and rationale on the primary
changes to remuneration are set out following
the table.
Base salaries
Base salaries will be increased for all four
executive directors by 9% in 2025, with a further
increase of 9% planned for our CEO in 2026.
These increases will result in salaries within the
mid-market range for each of the executive
directors. The committee is confident that
these changes balance the need to address
the significant gap between our fixed pay and
that of peers, while ensuring that the revised
Remuneration Policy continues to place a
significant emphasis on long-term remuneration,
with a clear focus on performance and equity-
based remuneration.
Annual performance bonus
The maximum bonus opportunity, which has
remained unchanged since 2015, under the
Remuneration Policy will be increased from 150%
to 200% of salary. However, there is no current
intention to utilise this additional headroom.
We have a track-record of providing additional
headroom under our incentive plans without
moving quickly to use it. If the bonus opportunity
is increased above 150% the committee will
review the minimum deferral in the context of
such increase. The proposed policy has been
designed to be in place for four years. Increasing
the maximum opportunity under the policy is
designed to provide the committee with flexibility
over that period in the event that circumstances
necessitate a higher opportunity under the short-
term incentive arrangements.
From 1 January 2025, a Health & Safety metric
will be introduced, focusing on accident and
injury rates. This aligns with our operational
priorities and reinforces accountability for
workplace safety.
LTIP
As context, the maximum opportunity under the
LTIP was increased in 2022, from 200% to 300%
of salary. However, the committee did not fully
utilise the additional headroom provided under
the policy, with grants in 2024 for the CEO and
other executive directors made at 250% and
225%, respectively.
Effective from 2025, the committee intends
to increase the annual grant level of our CEO
from 250% of his salary to 300%. For the other
three executive directors, initial award levels of
225% of salary will be maintained. ROCE will be
introduced as a new metric under the terms of
the LTIP, in addition to the current EPS and Planet
Passionate measures. The introduction of ROCE
reflects shareholder feedback on the inclusion
of such a measure and is fundamentally aligned
with our core focus of delivering long-term
returns well in excess of the cost of capital.
The committee is retaining relative TSR as a
measure however, it will operate as a potential
multiplier to the performance outcomes under
the EPS, ROCE and Planet Passionate measures.
Specifically, for achieving median to upper
quartile TSR, vested awards under the
underlying measures will be multiplied by 110%
(at median) to 150% (at the 75th percentile),
with straight line vesting in between. In the event
of below median performance, a discount factor
will be applied (only 90% of awards will vest),
reflecting initial feedback that the TSR multiplier
would be better aligned with shareholder
interests if there was a downside risk built in, and
reaffirming our commitment to ensuring variable
pay outcomes are aligned with both strong
underlying financial performance and shareholder
feedback. The achievement of maximum targets
under all four metrics would achieve vesting of
450% of salary for the CEO and 338% for the
other three directors, as set out in the table on
the previous page.
Shareholding requirements
Shareholding requirements will be increased,
from 250% to 1,000% of salary for the CEO, and
from 225% of salary to 275% for the other three
executive directors, ensuring ongoing alignment
with shareholder interests.
Board fees
During 2024, the committee also reviewed the
fees paid to the non-executive directors. The non-
executive director base fees were set in 2017, with
the Chair fee and additional fee for committee
chairs last reviewed in 2022. Since then there has
been a clear increase in the time commitment
involved in these roles, particularly with respect to
Board effectiveness, shareholder and stakeholder
engagement and sustainability. Following a review
of the time commitments, and having employed
external data as a reference point, the fees are
being increased to the following levels:
2024
2025
Chairman’s fee
€350,000
€350,000
Non-executive
director’s base fee
€75,000
€100,000
Chair of Audit
& Compliance/
Remuneration
Committee
€15,000
€25,000
Senior Independent
Director
€15,000
€25,000
The committee is satisfied the revised fees
accurately reflect the increase in roles and
responsibilities and remain reasonable relative
to market rates. To enable the implementation
Current policy & 2024
implementation
Proposed policy & 2025
implementation
Salary
»
Gene Murtagh (CEO): €1,004k
»
Geoff Doherty (CFO): €677k
»
Russell Shields (MD): $732k
»
Gilbert McCarthy (MD): €625k
»
Gene Murtagh (CEO): €1,095k (+9%)
»
Geoff Doherty (CFO): €738k (+9%)
»
Russell Shields (MD): $798k (+9%)
»
Gilbert McCarthy (MD): €682k (+9%)
Annual
bonus
Maximum
opportunity
under policy
»
All executive directors: 150% of
salary.
»
All executive directors: 200% of salary.
Maximum
opportunities
in 2024 and
2025
»
All executive directors: 150% of
salary.
»
All executive directors: 150% of salary
(unchanged).
Performance
conditions &
structure
»
Profit metric(s) (93.3%), and
»
Net Promoter Score (6.7%).
»
Profit metric(s) (86.6%),
»
Net Promoter Score (6.7%), and
»
Health & safety metric (6.7%).
»
Any bonus in excess of 100% of salary paid in shares deferred for two years.
»
If the bonus opportunity is increased above 150% the committee will review the
minimum deferral in the context of such increase.
LTIP
Maximum
opportunity
under policy
»
All executive directors: 300%
of salary (2024 grants at 250%
for the CEO and 225% for other
executive directors).
»
CEO: 450% of salary (initial grant at
300% of salary plus TSR multiplier of
up to 1.5 times).
»
Other executive directors: 338% of
salary (initial grant at 225% of salary
plus TSR multiplier of up to 1.5 times).
Performance
conditions &
structure
»
EPS growth (45%),
»
TSR vs peer group (45%), and
»
Planet Passionate goals (10%).
»
EPS growth (60%),
»
ROCE (25%),
»
Planet Passionate goals (15%), with
»
TSR vs peer group operating as a
multiplier to the other outcomes:
- 0.9x for below median performance,
- 1.1x for median performance, and
- 1.5x at the 75th percentile, with
straight vesting between the
median and the 75th percentile.
Shareholding
requirements
»
CEO: 250% of salary.
»
Other executive directors: 225% of
salary.
»
CEO: 1,000% of salary.
»
Other executive directors: 275% of
salary.
Annual Report & Financial Statements 2024
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107
Directors’ Report
Report of the Remuneration Committee
of these new fees, shareholders will be asked
to approve an increase in the overall limit for
director fees from €1,250,000 to €1,500,000
at the 2025 AGM. We do not intend to use this
maximum amount in 2025, but believe the
flexibility to increase fees, as well as adding future
directors to the board, is in the best interests
of shareholders.
Conclusion
We are pleased to have overseen another year of
record performance at Kingspan. On the back of
that consistent track record of performance under
existing management, we are confident that
the proposed Remuneration Policy builds on the
strong foundations set by the previously approved
policies in 2019 and 2022 and will continue to
support the delivery of strategy and the creation
of value for shareholders. The proposed changes
to the policy reflect that Kingspan is a significantly
larger business today and will protect our ability
to retain high performing individuals throughout
the business, in a range of markets globally. As a
committee, we are confident the new policy will
continue to demand superior performance for
variable remuneration to be released to executive
directors and senior management, underpinned by
our track record of setting truly stretching targets
in alignment with shareholders interests. Informed
by feedback throughout our extensive shareholder
consultation, we have further embedded our
ambitious Planet Passionate agenda, Health &
Safety objectives, and customer NPS performance
into our pay structures. Our commitment remains
steadfast in ensuring that the remuneration
framework aligns with our strategic goals and
meets the evolving needs of stakeholders, with the
achievement of higher potential pay outcomes
subject to the delivery of even higher levels of
performance.
I hope that you will join the Board in approving the
new Remuneration Policy, as well as the resolution
on the Report of the Remuneration Committee at
the AGM on 1 May 2025.
I will be stepping down as Chair of the
Remuneration Committee upon my retirement as
a non-executive director of Kingspan following this
year’s AGM. I want to thank my fellow committee
members for their diligent work and support over
the years. Éimear Moloney will take on my role as
Chair of the Remuneration Committee and I would
like to wish her and the other members of the
committee all the best for the future.
Linda Hickey
Chair of the Remuneration Committee
Remuneration at a Glance
Gene Murtagh
Geoff Doherty
Russell Shiels
Gilbert McCarthy
Fixed pay
2025 salary
€1,095k
€738k
$798k
€682k
% increase from
2024
9%
9%
9%
9%
Pension
2025: all at 10%.
2024: 12% to 14%.
Annual bonus
2025 maximum
opportunity
150% of salary.
(No change from 2024)
2025
performance
conditions &
structure
130% of salary Group EPS,
10% of salary NPS targets, and 10%
Health & Safety metric.
(2024: 140% Group EPS and 10% NPS)
70% of salary Divisional
profit targets,
60% of salary Group EPS,
10% of salary NPS targets, and 10%
Health and Safety metric.
(2024: 70% Divisional profit targets,
70% Group EPS, and 10% NPS)
Any bonus in excess of 100% of salary paid in shares
deferred for two years.
2024 outturn
Maximum opportunity: 150% of salary.
Outturn: 40.6% to 63.6% of maximum.
Performance
share plan
2025 award
grant level
CEO: 300% of salary.
Other executive directors: 225% of salary.
(2024: CEO 250%, and other executive directors 225%)
2025
performance
conditions &
structure
60% EPS growth, 25% ROCE and
15% Planet Passionate goals.
TSR multiplier to above outcomes:
- multiplier for achieving TSR between median (1.1X) and
upper quartile (1.5X) with a straight line in between.
-TSR below median (0.9X).
3-year performance period plus
2-year post vesting holding period.
(2024: 45% EPS, 45% TSR, and 10% Planet Passionate goals)
2022 Award
vesting level
Award level: CEO 225%, other executive directors 200%.
Vesting level: 23.14% of maximum.
Share ownership
requirements from 2025
CEO: 1,000% of salary.
Other executive directors: 275% of salary.
(2024: CEO 250%, and other executive directors 225%)
2024 OUTTURN
70%
30%
51%
49%
2024 FIXED PAY V VARIABLE PAY
Fixed
Variable
2024 VARIABLE PAY SHORT-TERM V LONG-TERM
Short-term
Long-term
108
Kingspan Group plc
Annual Report & Financial Statements 2024
109
Directors’ Report
Report of the Remuneration Committee
Directors’ Remuneration Policy
Under the Shareholders’ Rights Directive, which
was transposed into Irish Law in March 2020,
Kingspan is obliged to submit its Remuneration
Policy to shareholders for a non-binding advisory
vote at least every four years. Following the review
by the committee and engagement with our
shareholders, we are pleased to put forward our
new remuneration policy for shareholder approval
at the 2025 AGM.
Our remuneration philosophy
At Kingspan, we have developed a clear philosophy
around remunerating and incentivising employees
at all levels of the organisation. The principles
against which we determine our approach to
remuneration, and make decisions, are:
»
Pay for performance ensuring that
variable remuneration is only paid for strong
performance and maximum payouts will only
be realised for truly exceptional performance.
»
Clarity so that executives and shareholders
can understand our pay arrangements without
overly complex rules.
»
Transparency so that it is objectively
transparent with high levels of disclosure in the
Annual Report.
»
Alignment with shareholders by delivering
a significant proportion of remuneration
through equity, and by setting executive share
ownership guidelines.
»
Alignment to culture designed to drive
superior returns for shareholders based on our
high performance culture and key measures
aligned to strategy, and embedding our Planet
Passionate, Customer NPS, and Health and
Safety goals throughout the business.
This approach cascades through the organisation
and has played a key role in driving the growth
of the business and significant value creation for
stakeholders over the years.
The following section sets out the remuneration
policy proposed for approval at the 2025 AGM, as
well as the key changes where relevant:
Key element
Operation
2022 Policy
opportunity and
measures
2025 Policy
proposed changes and operation
of policy
Benefits
To provide
benefits which are
competitive with
the market.
In addition to their base
salaries, executive directors’
benefits include but are not
limited to life and health
insurance and the use by
the executive directors
of company cars (or a
taxable car allowance)
and relocation or similar
allowances on recruitment,
each in line with typical
market practice.
Benefits are set at
a level which the
committee considers
appropriate in light
of the market and
depending on the role
and an individual’s
circumstances.
No change to current policy.
Pensions
To provide a
retirement benefit
which is competitive
with the market.
Kingspan operates a defined
contribution pension scheme
for executive directors.
Pension contributions are
calculated on base salary
only. Alternatively, Kingspan
may pay a cash amount
subject to all applicable
employee and employer
payroll taxes and social
security.
Incumbent executive
director pensions will
be reduced to 10% of
salary from 2025.
Newly appointed
executive director
pensions will be
capped at the rate
generally applicable in
the relevant market.
No change to current policy.
Variable Remuneration
Annual
performance
bonus
To reward the
delivery of short-
term performance
targets and
business strategy,
satisfied in cash
and deferred share
awards, aligning
management
interests with
shareholders and
the longer term
performance of the
Group.
Executive directors receive
an annual performance
related bonus based on the
attainment of financial and
non-financial targets set
prior to the start of each
year. Bonuses are paid on
a sliding scale if the targets
are met. Maximum bonus is
only achieved if ambitious
incremental growth targets
are achieved.
No more than 100% of salary
can be delivered in cash
through the bonus plan. Any
performance related bonus
achieved in excess of the
cash amount is satisfied by
the grant of share awards,
which are deferred for two
years.
The committee has
discretion to adjust formulaic
bonus outcomes to reflect
Group performance.
The maximum
potential bonus
for the executive
directors is 150% of
base salary.
The committee
selects stretching
performance targets
each year.
Bonus payment for
financial targets is
0% at threshold entry
point. Bonus is paid
on a straight line
basis for achieving
each point on the
NPS target scale.
It is proposed as follows:
»
to increase maximum
opportunity to 200% of base
salary;
»
to introduce a new Health &
Safety metric alongside the
current profit and customer
NPS metrics;
»
there is no current intention to
increase the annual bonus level;
and
»
deferred element above
100% to remain. If the bonus
opportunity is increased above
150% the committee will
review the minimum deferral
arrangements in the context of
such increase.
Key element
Operation
2022 Policy
opportunity and
measures
2025 Policy
proposed changes and operation
of policy
Fixed Remuneration
Base Salary
To attract and
retain the best
global talent of the
calibre required to
deliver the Group’s
strategy.
Base salaries are
reviewed annually by the
Remuneration Committee
in the last quarter of each
year. A broad assessment
of individual and business
performance is used by the
committee as part of the
salary review. Increases will
generally be in line with
increases across the Group,
but may be higher or lower
in certain circumstances
to reflect performance,
changes in remit, roles and
responsibilities, or to allow
newly appointed executives
to move progressively
towards market norms.
Any increase will
typically be in
line with those
awarded to the
broader employee
pay environment.
The committee has
discretion to award
higher increases
in circumstances
that it considers
appropriate, such as
a change in role or
responsibility.
The committee recognises that
total pay levels for our executive
directors have for several years
been significantly below market
while the business continues to
grow and perform strongly. To
address this the base salaries will
be increased for all four executive
directors by 9% for 2025. A further
salary increase of 9% will be
implemented for the CEO for 2026.
Annual Report & Financial Statements 2024
110
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111
Directors’ Report
Report of the Remuneration Committee
Key element
Operation
2022 Policy
opportunity and
measures
2025 Policy
proposed changes and operation
of policy
Long-term
incentive plan
(LTIP)
To reward the
sustained strong
performance
and delivery of
Group strategic
objectives over
the longer term.
Aligns the interests
of executive
directors and senior
management with
those of the Group’s
shareholders and
recognises and
rewards value
creation over the
longer term.
Executive directors are
entitled to participate
in Kingspan’s PSP. Under
the terms of the PSP,
performance shares are
awarded to the executive
directors and the senior
management team. The
performance shares will
vest after three years only
if the Group’s underlying
performance has improved
during the three-year
performance period, and
if certain financial and
non-financial sustainability
targets are achieved over the
performance period.
The awards are subject to
a two-year post vesting
holding period.
The maximum award
level under the policy
is 300% of salary.
Prior to granting
an award, the
committee sets
performance
conditions which
it considers to
be appropriately
stretching.
On achieving
the threshold
performance target,
not more than 25% of
an award will vest.
It is proposed as follows:
»
to increase the grant level for
the CEO to 300% in FY25, and
maintain at 225% for other
executive directors;
»
to introduce an additional
ROCE metric alongside the
current EPS, and Planet
Passionate measures. The
proposed weightings are 60%
EPS, 25% ROCE and 15% Planet
Passionate (which are subject
to review by the committee
from time to time); and
»
to retain relative TSR as a
measure, acting as a multiplier
to the other outcomes. The
following TSR values will apply:
TSR
Performance
TSR
Multiplier
Below median
0.9X
Between
median &
upper quartile
1.1X to 1.5X
(straightline)
Top quartile
1.5X
The policy on non-executive directors’ remuneration is as follows:
Key element
Operation
2022 Policy
opportunity
2025 Policy
proposed changes and operation
of policy
Non-executive
director fees
To reflect time
commitment,
experience and
responsibilities,
and to attract and
retain high calibre
non-executive
directors by
offering a market
competitive fee
level.
Non-executive director fee
levels are reviewed annually.
The Chairman receives a single
fee for all his responsibilities.
Other non-executive directors
receive a basic board
membership fee. The chair of
board committees and the
Senior Independent Director
receive an additional fee for
this role.
Non-executive directors are
entitled to the reimbursement
of reasonable business
expenses including any tax
(grossed up) that may be
payable on those expenses.
Fees for non-
executive directors
are within the
limits set by the
shareholders from
time to time,
with a current
aggregate limit of
€1,250,000.
It is proposed as follows:
»
to increase the aggregate
limit of non-executive director
fees to €1,500,000 to provide
headroom for the appointment
of an additional non-executive
director to the Board, and to
increase the current level of
non-executive fees to reflect the
increased responsibilities and
time commitment;
»
to increase the basic non-
executive director fee to
€100,000, plus an additional
fee of €25,000 for chairing the
Remuneration and the Audit
& Compliance Committees,
as well as for the Senior
Independent Director.
The following are key structural aspects of the remuneration policy in relation to the directors’
remuneration contracts:
Clawback and malus
Ensures an appropriate
balance between risk
and reward.
Covers material misstatement of financial results, material
breach of executive’s employment contract, error in
contract, failure of risk management, corporate failure, wilful
misconduct, recklessness and/or fraud resulting in serious
damage to the financial condition or business reputation of
the Group.
The period within which clawback and malus can be operated
is two years from payment of annual bonus and/or vesting of
LTIP awards.
No change
to current
policy.
Shareholding guideline
Ensures alignment
between the interests of
executive directors and
shareholders.
250% of salary for the CEO and 225% for the other executive
directors, to be achieved through the retention of at least 50%
of all vested variable pay awards. Achievement of guideline is
measured through beneficially owned shares only.
For new appointees, the committee may consider it
appropriate to require a percentage of the annual bonus paid
to be deferred into shares (rather than just bonus in excess of
100% of salary), in order to achieve this guideline.
Achievement is measured through beneficially owned shares,
and the retention of vested deferred share and LTIP awards
(subject to sales to meet taxes).
The CEO to
hold 1,000%
of salary and
the other
executive
directors
275% of
salary.
Post cessation of
employment and
general shareholding
requirements
Ensures alignment
between the interests of
executive directors and
shareholders.
All executive directors are subject to a post-employment
shareholding requirement of the lower of (i) shares or equity
interests held on cessation, or (ii) 200% of salary, for two years
post-employment.
No change
to current
policy.
Approach to recruitment
To attract an executive
director of the calibre
required to shape and
deliver the Group’s
business strategy.
In exceptional circumstances, such as to facilitate recruitment,
the committee may exercise its discretion and grant LTIPs up to
the same level as the maximum permitted for the CEO.
An increase
from 400%
under the
current policy
to 450%
under the
new policy.
Termination - notice
periods
Each of the executive directors have service contracts with
Kingspan which provide for 12 months’ notice of termination by
the Company (or, at the discretion of the Company, payment
for all or part thereof) and 6 or 12 months by the director and
it is Kingspan’s policy that notice periods will not exceed 12
months. The service contracts do not include any provision for
compensation for loss of office, other than the notice period
provisions set out above. There are no enhanced provisions
on a change of control and there are no specific severance
arrangements.
The committee’s policy in relation to termination of service
contracts is to deal with each case on its merits having regard
to the circumstances of the individual, the termination of
employment, any legal advice received and what is in the best
interests of Kingspan and its shareholders.
No change
to current
policy.
Annual Report & Financial Statements 2024
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Report of the Remuneration Committee
Termination - annual
performance bonus
and long-term
incentive plans
Annual performance bonuses and PSP awards are dealt
with in accordance with the rules of the relevant plans. At
the discretion of the committee (and normally where the
individual has served a minimum of 6 months of the bonus
year), a pro-rata annual performance bonus may become
payable at the normal payment date for the period of service
subject to full year performance targets being met.
The default treatment for share based awards is that any
unvested award will lapse on termination of employment.
However, under the rules of the Performance Share Plan,
in certain prescribed circumstances (e.g. “good leaver”),
awards are eligible to vest subject to the performance
conditions being met over the normal performance period (or
a shorter period at the committee’s discretion) and with the
award being reduced pro-rata by an amount to reflect the
proportion of the vesting period not actually served.
No change
to current
policy.
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Total Pay over 5 Years
Fixed pay
Annual bonus
(Malus and clawback
provisions apply)
LTIP
(Malus and clawback
provisions apply)
Shareholding requirement
(From 2025, 1,000% of salary
for the CEO and 275% for
the other executive directors)
Up to
100% of
salary in
cash
Excess bonus in shares
Two-year deferral period
No further performance
conditions
Three-year performance period
Two-year post-vesting
holding period
No further performance
conditions
Executive directors’ minimum shareholding requirement
Year 1
Year 2
Year 3
Year 4
Year 5
Salary,
benefits
and
pension
114
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Report of the Remuneration Committee
115
Directors’ Report
2024 Remuneration Outturn
The table below sets out the total remuneration for the executive and non-executive directors for the financial
years ended 31 December 2024 and 2023.
Directors’ Remuneration for year ended 31 December 2024
Executive directors
Gene
Murtagh
EUR’000
Geoff
Doherty
EUR’000
Russell
Shiels1
EUR’000
Gilbert
McCarthy
EUR’000
Total
EUR’000
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Fixed Remuneration
Salary and Fees
1,004
956
677
618
676
644
625
571
2,982
2,789
Pension Contributions 2
120
134
88
99
95
122
75
80
378
435
Benefits 3
43
32
50
38
90
94
43
47
226
211
Total Fixed Remuneration
1,167
1,122
815
755
861
860
743
698
3,586
3,435
Performance Pay
Annual Incentives
Cash Element
958
956
646
618
585
644
381
571
2,570
2,789
Deferred Share Awards
-
437
-
283
-
258
-
18
-
996
Long Term Incentives
LTI - Grant Value 4 5
482
1,463
276
827
276
765
262
765
1,296
3,820
LTI - Share Price Growth 4 5
(78)
421
(43)
230
(44)
213
(38)
213
(203)
1,077
Total Performance Pay
1,362
3,277
879
1,958
817
1,880
605
1,567
3,663
8,682
Total Remuneration
2,529
4,399
1,694
2,713
1,678
2,740
1,348
2,265
7,249
12,117
Non executive directors
2024
2023
Jost Massenberg
350
350
Linda Hickey
105
105
Anne Heraty
75
75
Éimear Moloney
75
75
Paul Murtagh
75
75
Senan Murphy
90
85
Louise Phelan6
75
50
Michael Cawley7
-
30
John Cronin8
-
25
Total non-executive pay
845
870
Total Directors’ Remuneration
8,094
12,987
1
Russell Shiels’ remuneration is denominated in USD, and has been converted to Euro at the following average rates USD: 1.082 (2023: 1.0818).
2
The Group operates a defined contribution pension scheme for executive directors. Certain executives have elected to receive part of their
prospective pension entitlement as a non-pensionable cash allowance in lieu of the pension benefit foregone, subject to all applicable employee
and employer payroll taxes.
3
Benefits principally relate to health insurance premiums and company cars/car allowances. In the case of Russell Shiels the cost of life insurance
and permanent health benefit is also included.
4
The vesting value of the 2022 LTIP awards (vesting in 2025) was calculated using the average share price for December 2024, being €70.45. The
calculation for this award will be adjusted in next years’ annual report to reflect the actual share price on the vesting dates (23/02/2025) and
(22/08/2025). The share price decreased from the date of grant in respect of the awards granted on 23/02/2022 (share price: €88.60) and the
share price increased in respect of the awards granted on 22/08/2022 (share price: €58.34) to the share price used to determine the vesting value.
5
The vesting value of the 2021 LTIP awards (that vested in 2024) was calculated using the share prices on their respective vesting dates of
24/02/2024 (share price: €84.94) and 23/08/2024 (share price: €78.95). From the date of grant, the share price increased for awards granted
on 24/02/2021 (share price: €62.70) and decreased for awards granted on 23/08/2021 (share price €96.16) to the date of vesting.
6
Louise Phelan was appointed as a non-executive director on 28 April 2023.
7
Michael Cawley retired as a non-executive director on 28 April 2023.
8
John Cronin retired as a non-executive director on 28 April 2023.
Base salary
For 2024, the CEO and Mr Shiels received basic
salary increases of 5%, and the CFO and Mr
McCarthy received increases of 9.5%. This
compares with the general workforce increases for
the markets in which they are based of c.4% to
5%. The salaries for 2024 were:
»
Gene Murtagh: €1,003,800
»
Geoff Doherty: €676,710
»
Russell Shiels: $731,850
»
Gilbert McCarthy: €625,245
Pension
As outlined in previous Annual Reports, all
executive directors’ contractual pension
contributions will be reduced to 10% of base salary
from 2025. This approach, which balances the
legacy contractual entitlement of the executive
directors with the general expectations of
stakeholders, was adopted by the committee and
subsequently supported by shareholders following
feedback on the 2019 Remuneration Policy.
Pension Contribution
Executive director
Pension Contribution
2023
2024
2025
Gene Murtagh
14%
12%
10%
Geoff Doherty
16%
13%
10%
Russell Shiels
19%
14%
10%
Gilbert McCarthy
14%
12%
10%
2024 performance related bonus
All executive directors were eligible for a maximum performance related bonus opportunity of up to
150% of base salary.
Annual performance bonus targets are a mixture of Group and divisional financial performance
measures, as well as non-financial targets based on NPS customer experience scores. The CEO and CFO’s
financial targets are based on the achievement of Group EPS performance, and the Divisional MDs’
financial targets are based on a combination of stretching profit targets for their respective divisions,
plus an element of Group EPS. NPS measures brand loyalty and is one of the metrics we use to measure
customer experience as part of the Worldwide Voice of Customer programme. An external review by an
independent third–party validates the NPS scores and underlying methodology.
Annual Report & Financial Statements 2024
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Kingspan Group plc
Report of the Remuneration Committee
117
Directors’ Report
Performance against targets, and bonus achieved, are set out in the tables below.
Bonus
measure
Max.
opportunity/
weighting
(as % salary)
Threshold
target
Target for
maximum
Performance
Outcome
(% of
weighted
measure)
Chief
Executive
Group EPS
140%
317.07 cent
387.53 cent
365.2 cent
65.1%
NPS
10%
NPS of 42 to 48
44
42.9%
Chief
Financial
Officer
Group EPS
140%
317.07 cent
387.53 cent
365.2 cent
65.1%
NPS
10%
NPS of 42 to 48
44
42.9%
Russell
Shiels
Divisional
profit
70%
90% of prior
year
105% of
prior year
102.0%
55.8%
Group EPS
70%
317.07 cent
387.53 cent
365.2 cent
39.0%
NPS
10%
Divisional NPS range not disclosed
33.3%
Gilbert
McCarthy
Divisional
profit
70%
75% of prior
year
100% of
prior year
83.4%
23.6%
Group EPS
70%
317.07 cent
387.53 cent
365.2 cent
39.0%
NPS
10%
Divisional NPS range not disclosed
100%
Executive director
Overall annual performance outcome
% of max. opportunity
% of salary
Gene Murtagh
63.6%
95.4%
Geoff Doherty
63.6%
95.4%
Russell Shiels
57.6%
86.5%
Gilbert McCarthy
40.6%
60.9%
All bonuses earned in excess of 100% of base salary are satisfied by the grant of share awards, which are
deferred for two years.
Performance Share Plan (PSP)
Vesting of awards granted in 2022
Performance against targets and vesting levels for the PSP awards granted in 2022 is set out below.
Weighting
% of award that will vest
Outcome
Vesting %
0%
25%
100%
EPS
45%
Less than
6% CAGR
6% CAGR
12% CAGR
6.12% CAGR
13.14%
TSR
45%
Less than
Median
Median
At or above
upper
quartile
30.7
percentile
0.00%
Planet Passionate
10%
See below
See below
See below
See below
10.00%
Total Vesting
23.14%
Planet Passionate
Performance Measure
Weighting1
2020
Base Year
2024
Target
2024
Actual
Vesting
%
Carbon
»
Net Zero carbon
manufacturing - scope 1 &
2 GHG emissions² (tCO2e)
1.1%
409,7463
286,822
82,865
100%
»
Zero emissions company
funded cars – annual
replacement (%)
1.1%
11
75
89
100%
Energy
»
60% direct renewable
energy use (%)
1.1%
19.93
32.5
43.3
100%
»
20% on-site energy
generation (%)
1.1%
4.9
10
10.2
100%
»
Solar PV systems on all
wholly owned facilities (%)
1.1%
20.73
46
64
100%
Circularity
»
Zero company waste to
landfill (tonnes)
1.1%
18,6223
11,173
7,088
100%
»
Recycle 1 billion PET bottles
into our manufacturing
processes annually (million
bottles)
1.1%
573
750
1,102
100%
»
QuadCore® products
utilising recycled PET
(%)
1.1%
5.9
75
75
100%
Water
»
Harvest 100 million litres
of rainwater annually
(million litres)
1.1%
20.1
55
62.1
100%
Overall Vesting of Planet Passionate measures
100%
All figures related to the underlying business. Underlying business includes manufacturing, assembly and R&D sites within the Kingspan
Group in 2020 plus all organic growth.
1 Net Zero Energy target was removed from the programme in 2022 and replaced with an internal carbon charge to put central focus
on absolute GHG emission reduction. Its 1% weighting was reallocated across the other measures on an equal basis.
2 Excluding biogenic emissions. Scope 2 GHG emissions calculated using market-based methodology.
3 Restated figures due to improved data collection, change in calculation methodologies and site disposal.
Annual Report & Financial Statements 2024
119
Directors’ Report
118
Kingspan Group plc
Report of the Remuneration Committee
The peer group against which TSR performance was measured was as follows:
Armstrong World Industries Inc.
Mohawk Industries Inc.
Boral Ltd
Owens Corning Inc.
Compagnie de Saint Gobain SA
Rockwool A/S
CRH plc
Sika AG
Geberit AG
Travis Perkins plc
Grafton Group plc
Wienerberger AG
Holcim AG
Grant of awards in 2024
The executive directors were granted the following PSP awards in 2024:
Executive
Basis of the award
(% of salary)
Threshold vesting
(% of award)
Number of
awards granted
Grant date
Gene Murtagh
250%
25%
30,604
19 February 2024
Geoff Doherty
225%
25%
18,568
19 February 2024
Russell Shiels
225%
25%
18,431
19 February 2024
Gilbert McCarthy
225%
25%
17,156
19 February 2024
The vesting of the 2024 PSP awards is based on achievement of the EPS, TSR and sustainability targets
set out below.
Weighting
% of award that will vest
0%
25%
100%
EPS1
45%
Less than 3% p.a.
3% p.a.
6% p.a.
TSR1
45%
Less than Median
Median
At or above upper quartile
Planet Passionate1
10%
Various
Various
Various
1. Straight line vesting between threshold and 100% vesting.
The TSR peer Group for the 2024 PSP awards is set out below:
Armstrong World Industries Inc
Masco Corporation
Boral Ltd
Mohawk Industries Inc
Builders FirstSource Inc
Owens Corning Inc
Carlisle Companies Inc
Recticel NV
Compagnie de Saint Gobain SA
Rockwool A/S
CRH plc
Sika AG
Grafton Group plc
Wienerberger AG
Holcim AG
While our philosophy on
remuneration has not
changed, the scope, scale and
reach of our business has.
Istanbul Grand
Airport
Turkey
Insulated Panels
QuadCore® Evolution
facade panels
Annual Report & Financial Statements 2024
120
Kingspan Group plc
121
Directors’ Report
Report of the Remuneration Committee
Summary of PSP awards
The table below sets out the total number of PSP awards held by the directors and the Company Secretary
during the year:
Performance Share Plan
Director
At 31
Dec
2023
Granted
during
year
Vested
during
year
Exercised
or lapsed
during
year
At 31
Dec
2024
Option
price €
Earliest
exercise
date
Latest
expiry date
Gene Murtagh
Unvested
85,798
30,604 (22,327)
(4,751)1
89,324
0.13
23/02/2025
19/02/2031
Vested
87,354
-
22,327
-
109,681
0.13
26/02/2021
23/08/2028
173,152
30,604
-
(4,751)
199,005
0.13
Geoff Doherty
Unvested
49,003
18,568
(12,532)
(2,666)1
52,373
0.13
23/02/2025
19/02/2031
Vested
-
-
12,532
(12,532)2
-
0.13
-
-
49,003
18,568
-
(15,198)
52,373
0.13
Russell Shiels
Unvested
48,900
18,431
(11,591)
(2,466)1
53,274
0.13
23/02/2025
15/03/2028
Vested
-
-
11,591
(11,591)3
-
0.13
-
-
48,900
18,431
-
(14,057)
53,274
0.13
Gilbert McCarthy
Unvested
45,304
17,156
(11,591)
(2,466)1
48,403
0.13
23/02/2025
19/02/2031
Vested
45,130
-
11,591
-
56,721
0.13
26/02/2021
23/08/2028
90,434
17,156
-
(2,466)
105,124
0.13
Company Secretary
Lorcan Dowd
Unvested
8,620
2,854
(2,503)
(303) 4
8,668
0.13
23/02/2025
19/02/2031
Vested
10,775
-
2,503
- 13,278
0.13
26/02/2021
24/02/2028
19,395
2,854
-
(303)
21,946
0.13
1 Cancelled on 24/02/2024 and 23/08/2024 due to partial achievement of performance conditions.
2 Exercised on 19/11/ 2024. Market value on day of exercise €73.40.
3 Exercised 10,454 on 23/05/2024. Market value on day of exercise €90.30.
Exercised 1,137 on 03/12/2024. Market value on day of exercise €70.80.
4 Cancelled on 24/02/2024 due to partial achievement of performance conditions.
Deferred Share Awards
The table below sets out the total number of Deferred Share Awards held by the directors at year end:
Director
At 31 Dec
2023
Granted
during year
Vested &
transferred
during year
At 31 Dec
2024
Earliest
vesting/
transfer date
Gene Murtagh
Unvested
8,566
5,329
(5,021) 8,874
31/03/2025
Geoff Doherty
Unvested
5,530
3,445
(3,242) 5,733
31/03/2025
Russell Shiels
Unvested
5,967
3,142
(3,107)
6,002
31/03/2025
Gilbert McCarthy
Unvested
4,969
219
(2,998) 2,190
31/03/2025
Directors’ & Secretary’s interests in shares
The beneficial interests of the directors and secretary and their spouses and minor children in the shares
of the Company at the end of the financial year are as follows:
31 Dec 2024
31 Dec 2023
Shareholding at
31 Dec 2024¹
(% Salary)
Shareholding
requirement met
(CEO 250% and
others 225% salary)
Executive directors
Gene Murtagh
1,080,020
1,080,020
7,580%
Yes
Geoff Doherty
266,228
253,547
2,772%
Yes
Russell Shiels
227,145
226,008
2,366%
Yes
Gilbert McCarthy
282,833
282,833
3,187%
Yes
Non-executive directors
Jost Massenberg
(Chairman)
1,000
1,000
Linda Hickey
5,000
5,000
Anne Heraty
2,250
2,250
Éimear Moloney
2,000
2,000
Paul Murtagh
-
-
Senan Murphy
-
-
Louise Phelan
-
-
Company Secretary
Lorcan Dowd
3,816
3,667
1. Expressed as a percentage of base salary on 31 December 2024 and calculated using the average share price for December 2024
(€70.45).
As at 17 February 2025, there have been no
changes in the directors’ and secretary’s interests
in shares since 31 December 2024.
Non-executive directors
The Chairman’s fee is €350,000. The basic
non-executive director fee is €75,000. An
additional fee of €15,000 is paid for chairing
the Remuneration Committee and the Audit &
Compliance Committee, as well as for the Senior
Independent Director.
Payments to former directors and for
loss of office
A payment of €22,700 was paid to former director,
John Cronin, in respect of consultancy services.
There were no other payments to past directors or
payments to directors for loss of office.
Change in directors and employee
remuneration
The following table shows the percentage
change in fixed and variable remuneration using
the single figure methodology for the directors
of the Company and the global average total
remuneration of an employee for the respective
year ends.
Annual Report & Financial Statements 2024
122
Kingspan Group plc
123
Directors’ Report
Report of the Remuneration Committee
Fixed Remuneration1
Variable Remuneration2
% change
2023 to
2024
% change
2022 to
2023
% change
2021 to
2022
% change
2020 to
2021
% change
2023 to
2024
% change
2022 to
2023
% change
2021 to
2022
% change
2020 to
2021
Executive directors
Gene Murtagh
4%
1%
3%
0%
-58%
70%
-59%
110%
Geoff Doherty
8%
0%
1%
0%
-55%
67%
-56%
116%
Russell Shiels
0%
-1%
17%
0%
-57%
54%
-51%
136%
Gilbert McCarthy
6%
1%
1%
0%
-61%
46%
-57%
116%
Non-executive directors
Jost Massenberg
(Chairman)
0%
0%
36%
244%
N/A
N/A
N/A
N/A
Linda Hickey
0%
0%
24%
0%
N/A
N/A
N/A
N/A
Anne Heraty
0%
0%
0%
0%
N/A
N/A
N/A
N/A
Éimear Moloney3
0%
0%
50%
N/A
N/A
N/A
N/A
N/A
Paul Murtagh3
0%
0%
50%
N/A
N/A
N/A
N/A
N/A
Senan Murphy4
6%
347%
N/A
N/A
N/A
N/A
N/A
N/A
Louise Phelan5
50%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Average
Employee6
1%
2%
7%
4%
-16%
2%
-24%
32%
commercially sensitive and will be disclosed retrospectively with performance against them in the 2025
Report of the Remuneration Committee.
Performance share awards
For 2025, the CEO will receive a PSP award over shares with a market value of 300% of base salary,
and the other executive directors 225% of base salary. An additional ROCE metric has been introduced
alongside the current EPS metric. We propose to retain relative TSR as a measure, acting as a multiplier
to the other outcomes. The sustainability measures included in the LTIP are measured against Kingspan’s
ambitious Planet Passionate goals, drawing a clear focus on achieving one of our core strategic pillars.
In increasing the potential opportunity and headroom under the PSP, the committee was conscious of
ensuring that performance expectations also increased. With the addition of a ROCE measure and the
EPS growth targets being measured off another record year, the committee is confident that this aim
has been achieved.
The 2025 PSP targets are as set out below.
Performance
Measure
Weighting
Percentage
vesting at
threshold
Threshold vesting
target
Maximum vesting
target
EPS
60%
25%
3% CAGR
6% CAGR
ROCE
25%
25%
12%
16%
Planet Passionate
15%
0%
Various
Various
TSR Performance
Below median
Between median
& upper quartile
Top quartile
TSR Multiplier
0.9X
1.1X to 1.5X
(straightline)
1.5X
Non-executive director fees
The non-executive director fees for 2025 are set out in the table below:
2024
2025
Chairman’s annual fee
€350,000
€350,000
Non-executive director’s annual fee
€75,000
€100,000
Senior Independent Director’s annual fee
€15,000
€25,000
Audit or Remuneration Committee Chair’s annual fee
€15,000
€25,000
Committee governance
Committee membership and attendance
Name
Number of Meetings Attended
Linda Hickey (Chair)
4/4
Éimear Moloney
4/4
Louise Phelan
4/4
The Chief Executive does not normally attend meetings but provides input where relevant, to the
committee chair prior to the meeting. No individual is present at a meeting when the terms of his or her
own remuneration are discussed. The Company Secretary acts as the secretary to the committee. The
terms of reference are available on the Group’s website: www.kingspan.com
Key activities during the year
1. Includes salary and fees, pension contributions and taxable benefits.
2. Includes annual bonus and long term incentives calculated at the market value on the vesting date.
3. Appointed as a director as of 30 April 2021.
4. Appointed as a director as of 1 October 2022.
5. Appointed as a director as of 28 April 2023.
6. Calculated by dividing the aggregate payroll costs of employees for the respective year ends (excluding social welfare costs and
costs related to executive directors) by the average number of employees for the respective year ends as disclosed in note 3 to the
consolidated financial statements.
Implementation of Remuneration Policy for 2025
Base salary and pension
As part of the Remuneration Policy review detailed above, the committee has reviewed the salaries
and overall remuneration packages of each of the executive directors in the context of their roles,
responsibilities and market pay levels. For 2025, all of the executive directors will receive salary
increases of 9%.
Base Salary 2024
Base Salary 2025
Gene Murtagh
€1,003,800
€1,094,500
Geoff Doherty
€676,710
€738,000
Russell Shiels
$731,850
$798,000
Gilbert McCarthy
€625,245
€681,500
As outlined previously, pension contributions of all incumbent executives will be 10% from 2025.
Annual bonus
For 2025, the maximum bonus opportunity for all the executive directors remains at 150% of salary and
is to be measured as 130% of salary on financial metrics, 10% of salary on customer NPS, and 10% of
salary on a new Health & Safety metric. The executive directors’ financial element is based solely on
Group EPS and the divisional directors split between Group EPS and divisional profit targets. Targets are
Annual Report & Financial Statements 2024
124
Kingspan Group plc
125
Directors’ Report
Report of the Remuneration Committee
FEB
JUL
OCT
NOV
Salary and fees
Engage independent consultants for policy and benchmark review
Review implementation of overall remuneration policy
Review and approve executives’ salary, role and responsibilities
for 2025
Review and recommend to the Board, non-executives’ fees for 2025
Review remuneration benchmark
Review non-financial performance measures
Review and approve Chairman’s fee
Performance pay
Assess Group and individual performance against targets for 2023
Review executive bonus measures and weighting for 2025
Agree Group and individual performance targets for 2025
PSP Awards
Assess performance of 2021 PSP Awards against targets
Determine percentage of 2021 PSP Awards which vest
Review performance measures for grants of PSP Awards for 2024
Agree targets and level for grants of PSP Awards for 2024
Review non-financial Planet Passionate measures for 2024
Governance
Review and approve Report of the Remuneration Committee for
Annual Report 2023
Update on governance and remuneration trends generally
Consider shareholder votes and feedback from AGM 2024
Review of the Remuneration Policy
Shareholder engagement on proposed policy changes
External advisors
The Remuneration Committee obtained advice during the year from independent remuneration
consultants Korn Ferry. Korn Ferry’s fees for advice to the committee were £75.9k. Korn Ferry is a
member of the Remuneration Consultants Group and a signatory to its Code of Conduct, and all advice
is provided in accordance with this code. Korn Ferry also provided some leadership and development
services to Kingspan during the year. The committee concluded that the associated fee for the provision
of this service was not material and would not affect Korn Ferry’s independence and objectivity.
Accordingly, the committee is satisfied that the advice obtained was objective and independent.
Shareholder Voting
The following table summarises the details of votes cast in respect of the resolution on the Report of the
Remuneration Committee at the 2024 AGM.
Resolution
Votes For
Votes Against
Total Votes
Votes
Withheld
Number
%
Number
%
Number
% of
Total
Voting
Rights
Report of the
Remuneration
Committee
150,219,734
98.64%
2,068,688
1.36%
152,288,422
83.09%
5,945
Fusion Building
South Oxfordshire,
UK
Insulated Panels
Dri-Design® facade,
QuadCore® roof and
wall panels
127
Directors’ Report
Report of the Remuneration Committee
Annual Report & Financial Statements 2024
Kingspan Group plc
126
CEO REMUNERATION VS KINGSPAN PERFORMANCE
€10,000
€8,000
€6,000
€4,000
€2,000
€0
-€2,000
2020
2021
2022 2023 2024
CEO Remuneration (€’000)
Total Shareholder Return (%)
Earnings Per Share (cents)
600
500
400
300
200
100
0
Fixed Remuneration
Total Performance Pay (excl. share price growth)
LTI Share Price Growth
EPS
TSR
206c
100%
184%
306c
330c
352c
89%
The business has grown,
organically and
through acquisition,
into a diversified, global
provider of advanced
insulation and building
envelope solutions.
1,000
900
800
700
600
500
400
300
200
100
-
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Kingspan
MSCI World
MSCI Europe
TOTAL SHAREHOLDER RETURNS %
The graph below shows the Company’s TSR performance against the performance of the MSCI
World and MSCI Europe indices over the 10-year period to 31 December 2024:
139%
126%
365c
Performance graphs
Annual Report & Financial Statements 2024
128
Kingspan Group plc
Report of the Remuneration Committee
129
Directors’ Report
REPORT OF THE
AUDIT & COMPLIANCE
COMMITTEE
SENAN
MURPHY
Space in Lund
Scania, Sweden
Insulation
Troldtekt® acoustic
panel; Troldtekt®
tiles; Troldtekt® line
The Audit & Compliance Committee focused
particularly on the appropriateness of the Group’s
financial statements and product compliance
processes. During the year, the committee’s Terms
of Reference were expanded to include compliance
with the Corporate Sustainability Reporting
Directive (CSRD) and alignment with European
Sustainability Reporting Standards (ESRS).
The committee has satisfied itself, and has advised
the Board accordingly, that the 2024 Annual
Report and financial statements are fair, balanced
and understandable, and provide the information
necessary for shareholders to assess the Group’s
performance, business model and strategy. The
significant issues that the committee considered in
relation to the financial statements and how these
issues were addressed are set out in this report.
The committee has also satisfied itself in relation
to the effectiveness of the controls and processes
regarding product compliance and monitoring the
culture of compliance across the Group.
The committee acknowledges the requirements
under section 225 of the Companies Act 2014 and
has ensured that the directors are aware of their
responsibilities and comply fully with this provision.
One of the committee’s key responsibilities is to
review the Group’s risk management and internal
controls systems, including internal financial
controls. During the year, the committee
carried out a robust assessment of the principal
risks facing the Group and monitored the risk
management and internal controls system on an
ongoing basis. Further details regarding these
matters are also set out later in this report.
The committee also reviewed the effectiveness
of both the external audit process and the
internal audit function as part of the continuous
improvement of financial reporting and risk
management across the Group. A comprehensive
audit tender process was also undertaken during
the year which is detailed within this report.
Senan Murphy
Chairman, Audit & Compliance Committee
As chairman of the Audit
& Compliance Committee,
I am pleased to present the
report of the committee for
the year ended 31 December
2024 to stakeholders and
wider society.
This report details how the
committee has met its
responsibilities under its
Terms of Reference, the Irish
Companies Act 2014 and under
the UK Corporate Governance
Code (July 2018) during the last
twelve months.
131
Directors’ Report
Report of the Audit & Compliance Committee
Annual Report & Financial Statements 2024
Kingspan Group plc
130
Committee membership
Throughout the financial period, the committee
comprised three independent non-executive
directors, Senan Murphy (chairman), Anne Heraty
and Éimear Moloney. The biographies of each can
be found in the Directors’ Report.
The Board considers that the committee has an
appropriate and experienced blend of commercial,
financial and industry expertise to enable it to
fulfil its duties, and that the committee chairman,
Senan Murphy B.Comm., F.C.A, has appropriate,
recent and relevant financial experience.
Meetings
The committee met four times during the year
ended 31 December 2024. Attendance at the
meetings and matters under review at each
meeting are noted in the following tables.
Role and Responsibilities
The Board has established an Audit & Compliance
Committee to monitor the integrity of the Group’s
financial statements and the effectiveness of the
Group’s internal financial and IT general controls.
Additionally, the committee has responsibility for
reviewing the effectiveness of the processes and
controls associated with product certification and
the marketing of the Group’s products.
During the year, the committee’s Terms of
Reference were expanded to include oversight of
the Group’s compliance with CSRD and alignment
with ESRS. The committee reviews sustainability
disclosures, oversees the assurance process,
monitors sustainability risk integration, and
ensures the Group has the appropriate systems
and expertise from a compliance perspective.
The committee’s role and responsibilities are set
out in the committee’s Terms of Reference which
are available from the Company and are displayed
on the Group’s website (www.kingspan.com).
The Terms of Reference are reviewed annually
and amended where appropriate. During the
year the committee worked with management,
the external auditors and Group Internal Audit in
fulfilling these responsibilities.
The Audit & Compliance Committee Report deals
with the key areas in which the committee plays
an active role and has responsibility. These areas
are as follows:
1. Financial reporting and related primary
areas of judgement;
2. CSRD reporting;
3. The external audit process;
4. The Group’s internal audit function and
risk management controls;
5. The Group’s product compliance and
certification function;
6. Compliance with the Group Marketing
Integrity Manual; and
7. Governance.
Committee Member
Attended
Eligible
Appointment Date
Senan Murphy (chairman)
4
4
2022
Anne Heraty
4
4
2019
Éimear Moloney
4
4
2021
Audit & Compliance Committee activities
FEB
JUN
AUG
NOV
Financial Reporting
Review and approve preliminary & half-year results
Consider key audit and accounting issues and judgements
Review correspondence with Irish Auditing and Accounting
Supervisory Authority (IAASA)
Approve going concern and viability statements
Consider accounting policies and the impact of new
accounting standards
Review management letter from auditors
Review of any related party matters and intended disclosures
Review Annual Report (including ESEF format) and confirm if
fair, balanced and understandable
CSRD
Engagement with statutory auditor regarding limited assurance
requirements for CSRD Sustainability Statement and associated
planning
Update from management on CSRD readiness and establishment
of reporting processes
External Auditor
Oversight of statutory auditor tender process (including CSRD
Sustainability Statement) and selection of audit firm following
final presentations
Ongoing assessment of auditor performance – including feedback
from management
Approval of external audit plan and ongoing review
Review reports and correspondence from the auditor to the Audit
& Compliance Committee
Review of digital audit findings and insights
Confirm auditor independence and consider non-audit services
and materiality of related fees
Review and consideration of audit fees
Annual Report & Financial Statements 2024
132
Kingspan Group plc
133
Directors’ Report
Report of the Audit & Compliance Committee
Audit & Compliance Committee activities
FEB
JUN
AUG
NOV
Internal Audit and Risk Management Controls
Ongoing performance assessment of internal audit team
Review of internal audit reports and monitor progress on
open actions
Approve internal audit plan and resources, taking account
of risk management
Review of financial and IT general controls
Review of internal audit reports for cybersecurity controls
Meeting with Group Head of IT for update on the Group’s cyber
risk management policy and procedures
Review and approve the structure of the internal audit team
Review details of global fraud and cyber-attack attempts and
managements’ response
Monitor Group confidential independent hotline procedures and
reports
Assessment of compliance with Group Global Sanctions policy
Review of Group liquidity position
Assessment of the principal risks and effectiveness of
internal control systems
Product Compliance and Certification
Review and approve internal audit plan for audit of product
marketing compliance with Group Marketing Integrity Manual
Review of internal audit reports relating to product
marketing compliance
Review and consider the structure and expertise of the product
compliance and certification team
Meetings and updates from Group Head of Compliance &
Certification and divisional compliance teams
Discussions with divisional management on product
compliance and certification matters as well as site visit
Governance
Formal evaluation of external and internal audit functions
Review and impact assessment of the 2024 UK Corporate
Governance Code
Review and consideration of the consultation on the launch
of the Irish Corporate Governance Code
Review and approve Directors’ Compliance Statement
Update on Group Treasury Strategy and approve Group
Treasury Policy
Update on the new Euronext Dublin Corporate Governance Code
Each committee meeting was attended by the
Group Chief Financial Officer, the Group Head
of Internal Audit & Compliance and the external
audit lead partner. The Company Secretary is the
secretary of the committee. Other directors and
members of the senior management team may
attend meetings as required.
The chairman of the committee also met with
both the Head of Internal Audit & Compliance
and the external audit lead partner outside of
committee meetings as required throughout
the year.
Committee evaluation
As outlined within the Report of the Nominations
& Governance Committee, the performance of the
Board also includes a review of the committees.
Any recommendations raised in relation to the
Audit & Compliance Committee are acted upon in
a formal and structured manner. No issues were
identified for the year ended 31 December 2024.
Financial reporting
The committee is responsible for monitoring the
integrity of the Group’s financial statements and
reviewing the financial reporting judgements
contained therein. The financial statements are
prepared by a finance team with the appropriate
qualifications, expertise, and experience.
The committee confirmed to the Board that the
Annual Report, taken as a whole, is fair, balanced
and understandable and provides the information
necessary for shareholders to assess the Group’s
position and performance, business model and
strategy.
In respect of the year to 31 December 2024, the
committee reviewed:
»
the Group’s Trading Updates issued in April and
November 2024;
»
the Group’s Interim Report for the six months
to 30 June 2024; and
»
the Preliminary Announcement and Annual
Report to 31 December 2024.
In carrying out these reviews, the committee:
»
reviewed the appropriateness of Group
accounting policies and monitored changes to,
and compliance with, accounting standards on
an ongoing basis;
»
discussed with management and the external
auditor the critical accounting policies and
judgements that had been applied;
»
compared the results with management
accounts and budgets and reviewed
reconciliations between these and the final
results;
»
discussed a report from the external auditor
identifying the significant accounting and
judgemental issues that arose in the course of
the audit;
»
considered the management representation
letter, requested by the external auditor for
any non-standard issues and monitored action
taken by management as a result of any
recommendations;
»
discussed with management future accounting
developments which are likely to affect the
financial statements;
»
reviewed the budgets and strategic plans of
the Group to ensure that all forward looking
statements made within the Annual Report
reflect the actual position of the Group; and
»
considered key areas in which estimates
and judgement had been applied in the
preparation of the financial statements
including, but not limited to, a review of fair
values on acquisition, the carrying amount
of goodwill, intangible assets and property,
plant and equipment, litigation and warranty
provisions, recoverability of trade receivables,
determination of lease terms, valuation of
inventory, measurement of put option liabilities
and tax matters.
The primary areas of judgement considered by the
committee in relation to the Group’s 2024 financial
statements, and how they were addressed by the
committee are set out overleaf.
In addition, the Group Internal Audit team reviews
the businesses covered in its annual internal audit
plan, as agreed by the committee, and reports
its findings to the committee throughout the
year. These internal audit reviews are focused on
areas of judgement such as warranty provisions,
trade receivables and inventory, and provide the
committee with information on the adequacy and
appropriateness of provisions in these areas.
Annual Report & Financial Statements 2024
134
Kingspan Group plc
135
Directors’ Report
Report of the Audit & Compliance Committee
CSRD
As part of the committee’s ongoing responsibilities
to oversee financial and non-financial reporting,
the committee’s Terms of Reference were
expanded during the year to include compliance
with CSRD. CSRD introduces a comprehensive
framework for sustainability reporting, requiring
companies to disclose detailed information about
their environmental, social, and governance
(ESG) performance in accordance with the
ESRS standards and its alignment with the EU’s
sustainability objectives.
During the year, the committee, in collaboration
with Group management, undertook significant
work to prepare the Group for its first time
CSRD reporting. The committee oversaw the
development and implementation of processes to
ensure ESRS compliance and enhance the quality
of the Group’s sustainability disclosures. Key
activities during the year include:
»
Expanding the committee’s Terms of Reference
to include responsibility for overseeing CSRD
reporting and compliance;
»
Appointment of EY as the approved
Sustainability Assurance Service Provider
(SASP) to provide limited assurance on the
Group’s CSRD reporting;
»
Regularly reviewing updates from management
and EY on the Group’s CSRD readiness;
»
Oversight of the Double Materiality Assessment
(DMA) process to identify the key sustainability
issues relevant to the Group and its
stakeholders and ensuring alignment with ESRS
requirements;
»
Monitoring the establishment of systems and
controls for collating, validating, and reporting
sustainability data;
»
Ensuring that sustainability reporting processes
are integrated into the Group’s existing
governance and risk management frameworks;
»
Overseeing the assurance process, conducted
by EY as SASP, for CSRD-related disclosures;
and
»
Review and approve the Group’s CSRD
Sustainability Statement, ensuring compliance
with CSRD and ESRS requirements.
The committee is satisfied that the Group has
made significant progress in its CSRD readiness
and will continue to oversee the integration of
sustainability reporting into the Group’s broader
strategic and operational framework.
Primary areas
of judgement
Committee activity
Adequacy of
warranty provision
The committee reviewed the judgements applied by management in assessing both
specific and risk based warranty provisions at 31 December 2024. The committee reviewed
and discussed with management the monthly reports presented to the Board which set
out, for each of the Group’s divisions, warranty provisions, warranty costs and an analysis
of these costs as a percentage of divisional sales. Warranty provisions are reviewed on
an ongoing basis throughout the year in conjunction with the internal audit process. The
committee was satisfied that such judgements were appropriate, and the risk had been
adequately addressed.
Recoverability of
trade receivables
and adequacy of
provision
The committee reviewed the judgements applied by management in determining the
provision for expected credit loss at 31 December 2024. The committee reviewed and
discussed with management the monthly board report which sets out aged analysis of gross
receivable balances and associated provisions for expected credit loss and reviewed security
(including credit insurance) that is in place. Expected credit loss provisions are reviewed on
an ongoing basis throughout the year in conjunction with the internal audit process. The
committee was satisfied that such judgements were appropriate and the risk had been
adequately addressed.
Accounting for
acquisitions
Total acquisition consideration in 2024 amounted to €977.9m. The committee discussed
with management and the external auditors the accounting treatment for newly acquired
businesses, and the related judgements made by management, and were satisfied that the
treatment in the Group’s financial statements was appropriate.
Consideration of
impairment of
goodwill, intangible
assets and property,
plant and equipment
The committee considered the annual impairment assessment of goodwill, intangible assets
and property, plant and equipment prepared by management for each Cash Generating
Unit (CGU) using a discounted cash flow analysis based on the strategic plans approved
by the Board, including a sensitivity analysis on key assumptions. The primary judgement
areas were the achievability of the long-term business plans and the key macroeconomic
and business specific assumptions. In considering the matter, the committee discussed with
management the judgements made and the sensitivities performed. Further detail of the
methodology is set out in Note 9 to the financial statements.
Kingspan completed 19 acquisitions during the financial year. The measurement of goodwill is
not yet finalised however, and in accordance with IFRS, the methodology for all acquisitions
and assessment of such items of goodwill was presented to the committee and the results
were determined appropriate.
Valuation of
inventory and
adequacy of
inventory provision
The committee reviewed the valuation and provisioning for inventory at 31 December 2024.
The main area of judgement was the level of provisioning required for slow moving and
obsolete inventory. The committee reviewed and discussed with management the monthly
board report which sets out, for each of the Group’s divisions, gross inventory balances and
associated obsolescence provision including an analysis by inventory, category and ageing.
Inventory provisions are reviewed on an ongoing basis throughout the year in conjunction
with the internal audit process. The committee was satisfied that such judgements were
appropriate and the risk had been adequately addressed.
Taxation
Provisioning for potential current tax liabilities and the level of deferred tax asset recognition
in relation to accumulated tax losses are underpinned by a range of judgements. The
committee addresses these issues through a range of reporting streams from senior
management and a process of challenging the appropriateness of management’s views
including the degree to which these are supported by professional advice from external legal
and other advisory firms. This assessment was conducted in line with the provisions of IFRIC
23. The Group’s Accounting Manual sets out detailed policies that prescribe the methodology
to be used by management in calculating such provisions. Each division formally confirms
compliance with these policies on an annual basis. The committee was satisfied that such
judgements were appropriate, and the risk had been adequately addressed.
Kannerhaus
Beidweiler,
Luxembourg
Roofing +
Waterproofing
EVALASTIC®
waterproofing
membrane;
Aluminium profiles
Annual Report & Financial Statements 2024
137
Directors’ Report
136
Kingspan Group plc
Report of the Audit & Compliance Committee
AUDIT V OTHER ASSURANCE & NON-AUDIT SERVICES (€M)
4.1
0.1
2022
3.7
0.3
2021
2.7
0.1
2020
4.8
0.3
2023
2024
5.8
0.9
Audit services
Other
An analysis of fees paid to the external auditor, including the non-audit fees, is set out in
Note 5 and below:
External auditor
The committee has responsibility for overseeing
the Group’s relationship with the external
auditor including reviewing the audit team, the
quality and effectiveness of their performance,
their external audit plan and process, their
independence from the Group, their appointment
and their audit fee proposals.
Performance and audit plan
Following the completion of the 2023 year end
audit, the committee carried out a review of the
effectiveness of the external auditor and the audit
process. This review involved discussions with both
Group management and internal audit, in addition
to feedback provided by divisional management.
The committee continues to monitor the
performance, independence and objectivity of the
external auditors and takes this into consideration
when making its recommendations to the Board
on the remuneration, the terms of engagement
and the re-appointment, or otherwise, of the
external auditors.
Prior to commencement of the 2024 year end
audit, the committee approved the external
auditor’s work plan and resources and agreed
with the auditor’s key areas of focus, including
accounting for acquisitions, warranty provisions
and revenue recognition.
During the year, the committee met with the
external auditor without management being
present. This meeting provided the opportunity
for direct dialogue and feedback between the
committee and the auditor, where they discussed
inter alia some of the key audit management
letter points.
EU audit reform
The regulatory framework for the Group’s statutory
audit is governed by EU legislation under Directive
2014/56/EU and Regulation EU No. 537/2014.
EU Audit reform legislation is applicable in the
Member States of the European Union, including
Ireland. Under this legislation, Kingspan Group
plc is considered a Public Interest Entity (PIE). Key
developments falling from the implementation of
this legislation are:
»
a requirement that the PIE changes its
statutory auditor every ten years (following
rotation, the statutory audit firm cannot be
reappointed for four years);
»
a requirement that certain procedures are
followed for the selection of the new statutory
auditor; and
»
restrictions on the entitlement of the statutory
auditing firm to provide certain non-audit
services.
During the year, the Committee conducted a
comprehensive statutory audit tender process.
This decision was influenced by the expanded
reporting obligations under CSRD, for which the
Group auditor also provides limited assurance.
It also enabled the committee to evaluate the
cost competitiveness of the incumbent auditor
amid recent cost inflation in professional services
markets globally.
All invited firms participated, and they were
assessed on criteria including team capabilities,
experience in auditing large multinational
companies, industry expertise, onboarding
acquisitions, transition strategy, and value for
money. Following the evaluation, EY was deemed
to offer the best audit proposition and will
therefore continue as the Group’s auditor. Under
EU legislation, EY is permitted to continue as the
Group’s statutory auditor until the financial year
ended 31 December 2029.
Independence and objectivity
The committee is responsible for ensuring that the
external auditor is objective and independent. EY
was appointed as the Group’s auditor on 1 May
2020, following a formal tender process in which
several leading global firms submitted written
tenders and delivered in-person presentations.
The committee received confirmation from the
external auditor that they are independent of
the Group under the requirements of the IAASA
Ethical Standard for Auditors (Ireland) 2020. The
external auditor also confirmed that they were
not aware of any relationships between the Group
and the firm or between the firm and any persons
in financial reporting oversight roles in the Group
that may affect its independence.
Non-audit services
To further ensure independence, the committee
has a policy on the provision of non-audit services
by the external auditor that seeks to ensure that
the services provided by the external auditor are
not, or are not perceived to be, in conflict with
auditor independence. The committee ensured
that the independence of the external audit was
not compromised by obtaining an account of all
relationships between the external auditor and
the Group, by reviewing the economic importance
of the Group to the external auditor and by
monitoring the audit fees as a percentage of total
income generated from the relationship with the
Group. The committee’s policy on the provision of
non-audit services by the Group’s external auditor
is fully compliant with EU audit reform legislation.
Internal audit and compliance
The committee reviewed and agreed the annual
internal audit plan. The internal audit plan is risk
based, with all divisions audited every year, and
all new businesses audited within 12 months of
acquisition.
The committee reviewed reports from the Group
Head of Internal Audit & Compliance at its
quarterly meetings. These reports enable the
committee to monitor the progress of the internal
audit plan, to discuss key findings and the plan
to address them, and to obtain status updates of
previous key findings.
The committee is responsible for reviewing the
effectiveness of the internal audit function
and does so based upon discussion with Group
management, the Group’s external auditor and
feedback provided by divisional management.
The committee was satisfied that the internal
audit function is working effectively, improves
risk management throughout the Group and that
the internal audit team is sufficiently resourced
in addition to having the adequate level of
experience and expertise.
The terms of reference of the committee include
oversight of the processes around product
certification and product marketing. During the
year, the Group Head of Product Compliance and
Certification retired, and his role was assumed by
the Group Head of Internal Audit & Compliance.
Risk management and internal controls
The committee has been delegated, by the Board,
the responsibility for monitoring the effectiveness
of the Group’s system of risk management
and internal control. As part of both the year
end audit and the half year review process, the
committee monitors the Group’s risk management
and internal control processes through detailed
discussions with management and executive
directors, the review and approval of the internal
and external audit reports, all of which highlight
the greatest areas of risk and control weakness
in the Group. All weaknesses identified by
either internal or external audits are discussed
by the committee with Group management
and an implementation plan for the targeted
improvements to these systems is put in place.
The implementation plan is overseen by the Group
Chief Financial Officer and the committee is
satisfied that this plan is being properly executed.
Annual Report & Financial Statements 2024
138
Kingspan Group plc
139
Directors’ Report
Report of the Audit & Compliance Committee
Anonymous misconduct reporting procedures
The Group has a Code of Conduct, full details
of which are available on the Group’s website
(www.kingspan.com).
Based on the standards set out in this Code of
Conduct, the Group employs a comprehensive,
confidential and independent phone service
to allow all employees to raise their concerns
about their working environment and business
practices. This service then allows management
and employees to work together to address any
instances of fraud or other misconduct in the
workplace.
Any instances of fraud or misconduct reported
on the independent phone service are reported
to the Head of Internal Audit & Compliance and
the Company Secretary who ensure each incident
is appropriately investigated and details of the
incident reported to the committee including: key
control failures, any financial loss and actions for
improvement. All reports through the independent
reporting line and all fraud attempts are presented
at each committee meeting.
During the year, the committee reviewed the
Group’s anonymous misconduct reporting process
and were satisfied with the design and operating
effectiveness of the process.
As part of its standing schedule of business, the
committee carried out an annual risk assessment
of the business to formally identify the key
risks facing the Group. Full details of this risk
assessment and the key risks identified are set out
in the Risks & Risk Management section of this
Annual Report.
These processes, which are used by the committee
to monitor the effectiveness of the Group’s system
of risk management and internal control, are
in place throughout the accounting period and
remain in place up to the date of approval of this
Annual Report.
The main features of the Group’s internal control
and risk management systems that specifically
relate to the Group’s financial reporting and
accounts consolidation process are set out in the
Report of the Directors.
Product compliance framework
The committee has responsibility for reviewing
the effectiveness of the processes and controls
associated with product compliance and
monitoring the culture of compliance across
the Group.
The Group product compliance framework can be
split into two categories:
1. Compliance of products with product specific
laws and regulations, testing, certification and
accreditation; and
2. The accuracy and consistency of product
marketing materials.
The Group Product Compliance & Certification
team, led by the Group Head of Internal Audit
& Compliance, is independent of divisional
management and performs the following
functions:
»
Supports compliance governance across the
Group in implementing policies, processes and
procedures to ensure continued improvement
in management systems. This includes
ownership of the Group Product Compliance
Policy;
»
Performs extensive audits of processes and
controls associated with product compliance
and the monitoring of compliance across the
Group; and
»
Leads the design and roll-out of the Group
Compliance Management System (CMS)
which has achieved the international ISO 37301
standard.
The committee meet with the Group Head of
Internal Audit & Compliance for updates on the
Group’s compliance and certification agenda.
This includes updates on the product compliance
audit schedule and the results of completed
audits as well as reviewing the Group Compliance
Auditing Guidelines. The Audit & Compliance
Committee visit sites with the Group Product
Compliance & Certification team to better
understand the product compliance culture at an
operational level.
The committee also meet regularly with the Group
Head of Internal Audit & Compliance in relation to
product marketing compliance matters. Following
the adoption of the Group Marketing Integrity
Manual in September 2021, the Group Internal
Audit Plan includes specific audits, performed by
appropriately trained internal auditors, of product
marketing compliance with the Group Marketing
Integrity Manual.
The committee noted the following product
compliance highlights in 2024:
»
An additional 26 sites have been accredited
with the leading international compliance
standard, ISO 37301. This now brings the total
number of sites with this accreditation to 85
with a plan to have 105 sites certified to this
standard by the end of 2025.
»
Updated Group Compliance Auditing
Guidelines issued.
»
123 internal product compliance audits were
conducted by the Group Product Compliance
and Certification team.
»
490 external product compliance audits were
conducted by independent certification bodies.
»
29 business unit marketing audits were
performed by the Group Internal Audit &
Compliance team.
»
ISO 37301 education and training systems
delivered.
»
Incorporation of newly acquired businesses into
the Compliance Management System (CMS).
»
Recruitment of additional compliance experts
for Group Internal Audit & Compliance team.
»
Divisional Compliance Managers reporting
to Group Compliance & Certification team
monthly.
»
Product compliance registers maintained
across all divisions.
Linara GmbH
Kaufbeuren,
Germany
Insulated Panels
Karrier BK panel
Annual Report & Financial Statements 2024
140
Kingspan Group plc
141
Directors’ Report
Report of the Audit & Compliance Committee
REPORT OF
THE DIRECTORS
GENE MURTAGH
GEOFF DOHERTY
Information incorporated by reference
The following information is provided in other appropriate sections of this Annual Report and the financial
statements and is incorporated into this Report of the Directors by reference.
Information
Reported in
Page
A review of the business of the Group.
Chief Executive’s Review
38
The Group’s key performance indicators (KPIs).
Financial Review
50
A description of likely future developments in
the Group’s business.
Chief Executive’s Review
49
A description of the principal risks and
uncertainties that could affect the Group’s
business.
Risk & Risk Management Report
56
The Company’s application of the principles,
and compliance with the provisions, of the 2018
UK Corporate Governance Code and the Irish
Corporate Governance Annex.
Report of the Nominations &
Governance Committee
88
The names and biographical details of
the directors.
The Board
85
The directors’ and Company Secretary’s interests
in shares and debentures.
Report of the Remuneration
Committee
123
The Group’s financial risk management objectives
and policies and a description of the use of
financial instruments.
Financial Statements
(Note 20)
301
The amount of interim dividends (if any) paid by
the Company during the year and the amount
(if any) that the directors recommend should be
paid by way of final dividend.
Financial Review
52
Information required by EU Taxonomy Regulation
(Sustainable finance taxonomy - Regulation
(EU) 2020/852), the Corporate Sustainability
Reporting Regulations 2024 and by the European
Union (Disclosure of Non-Financial and Diversity
Information by certain large undertakings and
groups) Regulations 2017.
CSRD Sustainability Statement
154
The directors of Kingspan
Group plc (Kingspan) have
pleasure in presenting
their report with the
audited financial
statements for the year
ended 31 December 2024.
This Report of the Directors
and the Business & Strategic
Report on pages 26-83 together
comprise the Management
Report for the purposes of
the Transparency (Directive
2004/109/EC) Regulations 2007
of Ireland.
103 City Point
Massachusetts, USA
Light, Air + Water
UniQuad® wall
system; PentaClad®
cladding system
142
Kingspan Group plc
143
Directors’ Report
Report of the Directors
Annual Report & Financial Statements 2024
Kingspan Group plc
142
At Kingspan, innovation is
a core pillar of our strategy
and we view it as a key
strategic advantage.
Principal Activities
Kingspan is the global leader in high-performance insulation and building envelope solutions. Kingspan
Group plc is a holding company for the Group’s subsidiaries and other entities. The Group’s principal
activities comprise the manufacture and distribution of the following product suites as part of the
complete Building Envelope:
Stommen Group
Headquarters
Småland, Sweden
Roofing +
Waterproofing
Derbigum® SP Anti-
Root Waterproofing
Membrane
Innovation
At Kingspan, innovation is a core pillar of our
strategy and we view it as a key strategic
advantage. We believe building industry traditions
must be challenged through innovation in
advanced materials and digital technologies in
order to achieve a net zero emissions future.
We have innovated a portfolio of advanced
products and solutions for architects and building
owners which enable them to construct buildings
that consume less resources. Future proofing their
investment, generating returns through enhanced
internal space and operational performance, and
facilitating efficient construction through thinner,
lighter and safer to handle materials. Increasingly,
we are enhancing our service and solutions
through digitalisation. By surfacing our products
digitally, we’re making it easier to find, specify,
buy, build with and track them.
In the year ended 31 December 2024, the
Group’s research and development expenditure
amounted to €75.5m (2023: €63.5m). Research
and development expenditure is generally
expensed in the year in which it is incurred.
Kingspan’s continuing investment in research and
development involves a number of key projects
which include:
»
the launch of a range of solar PV systems,
suitable for both newbuild and retrofit
applications, with testing and certification
underway to the following global recognised
standards via FM Approvals:
- PV solar-integrated PowerPanel® roof
solution having tested and satisfied the
requirements of FM4478;
- PowerPlus KS1000RW having tested and
satisfied the requirements of FM4478;
- PowerCanopy having tested and satisfied
the requirements of FM4480; and
- PowerPlus KS1000TD with a certification
programme underway to FM4478.
»
QuadCore LEC® to FM4540;
»
QuadCore® 2.0 continued roll-out;
»
evolution of QuadCore® to satisfy FM4882
Clean Room Classification;
»
evolution of QuadCore® to enhance Fire
Resistance;
»
next generation Kooltherm®;
»
A-class vacuum insulated panel;
»
decarbonisation of materials and products;
»
digitalisation of the construction industry;
»
translucent insulated solutions;
»
lower carbon acoustic solutions;
»
bio-based low carbon insulation;
»
next generation PIR and Therma insulation
board;
»
end of life recycling options, including
mechanical and chemical recycling solutions;
and
»
enhanced installation solutions from semi
automated to robotic systems.
Share Certificate Dematerialisation
In accordance with the EU Central Securities
Depositories Regulation (EU) 909/2014 (CSDR),
all securities of Irish issuers admitted to trading
or traded on trading venues in the European
Economic Area are now required to be held in
book-entry form as of 1 January 2025. This change
eliminates the need for physical share certificates
as ownership is now recorded electronically. From
1 January 2023, all new share issuances by the
Company have been issued in book-entry form
and from 1 January 2025, all remaining shares
have transitioned to this format. Share certificates
previously issued to shareholders became invalid as
of 1 January 2025 and have been replaced by book-
entry balances maintained by the Company’s
registrar, Computershare Investor Services
(Ireland) Limited.
Share Buyback Programme
On 26 April 2024, the Board approved a limited
Share Buyback Programme to repurchase up
to 1,500,000 Ordinary Shares of €0.13 each in
the capital of the Company. Over the course
of the Programme, the Company repurchased
in aggregate 1,500,000 ordinary shares
between 26 April 2024 and 11 June 2024 for a
total consideration of €133m and at a volume
weighted average price of €88.85 per share. The
repurchased shares are held in treasury.
Kingspan’s five key business divisions offer a suite of complementary building envelope solutions for both
the new build and refurbishment markets.
Insulation
Manufacture of
a broad range
of insulation
solutions (rigid
boards, stonewool,
bio-based
and technical
insulation) and
engineered timber
systems.
Data
Solutions
Manufacture
of data
centre airflow
management/
cooling solutions
and raised access
floors.
Light, Air +
Water
Manufacture
of energy and
water solutions,
daylighting, smoke
management and
ventilation systems
and related service
activities.
Roofing +
Waterproofing
Manufacture
of roofing and
waterproofing
solutions for
renovation and
new construction
of buildings.
Insulated
Panels
Manufacture
of insulated
panels, structural
framing and
metal facades.
Annual Report & Financial Statements 2024
145
Directors’ Report
144
Kingspan Group plc
Report of the Directors
additional ordinary shares. In the event of any
surplus arising on the occasion of the liquidation of
the Company, shareholders would be entitled to a
share in that surplus pro rata to their holdings of
ordinary shares.
Holders of ordinary shares are entitled to receive
notice of and to attend, speak and vote in person
or by proxy, at general meetings having, on a
show of hands, one vote, and, on a poll, one
vote for each Ordinary Share held. Procedures
and deadlines for entitlement to exercise, and
exercise of, voting rights are specified in the notice
convening the general meeting in question. There
are no restrictions on voting rights except in the
circumstances where a “Specified Event” (as
defined in the Articles) shall have occurred and the
directors have served a Restriction Notice on the
shareholder. Upon the service of such Restriction
Notice, no holder of the shares specified in the
notice shall, for so long as such notice shall remain
in force, be entitled to attend or vote at any
general meeting, either personally or by proxy.
Holding and transfer of ordinary shares
The ordinary shares may be held in uncertificated
form through the Euroclear Bank system or (via a
holding of CREST Depository Interest (CDIs)) the
CREST system.
Save as set out below, there is no requirement to
obtain the approval of the Company, or of other
shareholders, for a transfer of ordinary shares. The
directors may decline to register (a) any transfer
of a partly-paid share to a person of whom they
do not approve, (b) any transfer of a share to
more than four joint holders, or (c) any transfer of
a share on which the Company has a lien.
Transfers of uncertificated shares may be effected
by means of a relevant system in the manner
provided for in the Regulation (EU) No. 909/2014
of the European Parliament and of the Council of
23 July 2014 (the CSD Regulations) and the rules
of the relevant system. The directors may refuse
to register a transfer of uncertificated shares only
in such circumstances as may be permitted or
required by the CSD Regulations.
Rules concerning the appointment and
replacement of the directors and amendment
of the Company’s Articles
Unless otherwise determined by ordinary resolution
of the Company, the number of directors shall not
be less than two or more than 15.
Subject to that limit, the shareholders in general
meeting may appoint any person to be a director
either to fill a vacancy or as an additional director.
The directors also have the power to co-opt
additional persons as directors, but any director
so co-opted is under the Articles required to be
submitted to shareholders for re-election at the
first Annual General Meeting (AGM) following his
or her co-option.
The Articles require that at each AGM of the
Company one-third of the directors retire by
rotation. However, in accordance with best
practice, the directors have resolved they will all
retire and submit themselves for re-election by the
shareholders at the AGM to be held on 1 May 2025.
The Company’s Articles may be amended by
special resolution (75% majority of votes cast)
passed at general meeting.
Powers of directors including powers in relation
to issuing or buying back by the Company of
its shares
Under its Articles, the business of the Company
shall be managed by the directors, who exercise
all powers of the Company as are not, by the
Companies Acts or the Articles, required to be
exercised by the Company in general meeting.
The directors are currently authorised to issue a
number of shares equal to the authorised but
as yet unissued share capital of the Company
on such terms as they may consider to be in
the best interests of the Company, under an
authority that was conferred on them at the
AGM held on 26 April 2024. The directors are also
currently authorised on the issue of new equity
for cash to disapply the strict statutory pre-
emption provisions that would otherwise apply,
provided that the disapplication is limited to
the allotment of equity securities in connection
with (i) any rights issue or any open offer to
shareholders, or (ii) the allotment of shares not
exceeding in aggregate 10% of the nominal value
of the Company’s issued share capital, or (iii)
for the purpose of financing (or refinancing) an
acquisition or other capital investment of a kind
contemplated by the UK Pre-emption Group not
exceeding in aggregate 10% of the nominal value
of the Company’s issued share capital. Both these
authorities expire on 26 July 2025 unless renewed
and resolutions to that effect are being proposed
at the AGM to be held on 1 May 2025.
The Company may, subject to the Companies Acts
and the Articles, purchase any of its shares and
may either cancel or hold in treasury any shares
so purchased, and may re-issue any such treasury
shares on such terms and conditions as may be
determined by the directors. The Company shall
not make market purchases of its own shares
unless such purchases have been authorised by a
special resolution passed by the members of the
The European Communities (Takeover Bids
(Directive 2004/25/EC)) Regulations 2006
The information required by Regulation 21 of the
above Regulations as at 31 December 2024 is set
out below.
Structure of the Company’s share capital
At 31 December 2024, the Company had an
authorised share capital comprised of 250,000,000
(2023: 250,000,000) ordinary shares of €0.13
each and the Company’s total issued share
capital comprised 184,596,642 (2023: 183,591,682)
ordinary shares.
The number of shares held as treasury shares at
the beginning of the year was 1,668,148 (0.92% of
the then issued share capital (excluding treasury
shares)) with a nominal value of €216,859. During
the year, the Company repurchased 1,500,000
shares (0.82% of the issued share capital
(excluding treasury shares)) with a nominal value
of €195,000 which are held in treasury. A further
15,689 shares (with a nominal value of €2,040)
were bought back by the Company and held in
treasury for the purpose of the Deferred Bonus
Plan. A total of 386,678 shares (0.21% of the
issued share capital (excluding treasury shares))
with a nominal value of €50,268 were reissued
during the year relating to the exercise of share
options under the Kingspan Group Performance
Share Plan and the Kingspan Group Employee
Benefit Trust. As at 31 December 2024, the balance
of treasury shares held was 2,797,159 (1.54% of the
issued share capital (excluding treasury shares))
with a nominal value of €363,631.
Analysis of registered shareholding accounts as at 31 December 2024:
Shareholding
range
Number of
accounts
% of total
Number of
shares held
% of total
1 - 1000
1,315
70.55
570,626
0.32
1,001 - 10,000
509
27.31
1,391,967
0.75
10,001 - 100,000
34
1.82
725,297
0.39
100,001 - 1,000,000
3
0.16
392,162
0.21
Over 1,000,000
3
0.16
181,516,590
98.33
1,864
100.00
184,596,642
100.00
Substantial Interests
As at 17 February 2025, the Company had received notification of the interests outlined in the table
below, in its ordinary share capital, which were equal to, or in excess of, 3%.
Notification
Date
Shareholder
Shares
held
%
27/01/2021
Eugene Murtagh
27,018,000
14.88%
20/01/2025
Blackrock, Inc.
12,507,574
6.87%
13/02/2025
FMR LLC
10,630,880
5.84%
04/02/2025
Generation Investment Management LLP
9,096,622
4.99%
10/12/2024
The Capital Group Companies, Inc.
9,031,308
4.96%
Rights and obligations attaching to the
ordinary shares
The Company has no securities in issue conferring
special rights with regards control of the Company.
All ordinary shares rank pari passu, and the
rights attaching to the ordinary shares (including
as to voting and transfer) are as set out in the
Company’s Articles of Association (Articles).
The Articles also contain the rules relating to the
appointment and removal of directors, procedures
for amending the Articles, the powers of the
Company’s directors, and the issuing or buying
back by the Company of its shares. A copy of the
Articles may be found on www.kingspan.com
or may be obtained on request to the Company
Secretary.
Holders of ordinary shares are entitled to receive
duly declared dividends in cash or, when offered,
Annual Report & Financial Statements 2024
146
Kingspan Group plc
147
Directors’ Report
Report of the Directors
Company at a general meeting. At the AGM held
on 26 April 2024, shareholders passed a resolution
giving the Company, or any of its subsidiaries, the
authority to purchase up to 10% of the Company’s
issued ordinary shares. At the AGM to be held on 1
May 2025, shareholders are being asked to renew
this authority.
Change of Control Provisions
Some of the Group’s banking facilities include
provisions that, in the event of a change of control
of the Company, could oblige early prepayment
of the facilities. Some of the Company’s joint
venture arrangements also contain provisions that
would allow the counterparty to terminate the
agreement in the event of a change of control of
the Company. The Company’s Performance Share
Plan contains change of control provisions which
allow for the acceleration of the exercise of share
options/awards in the event of a change of control
of the Company.
There are no agreements between shareholders
that are known to the Company which may result
in restrictions on the transfer of securities or
voting rights.
There are no agreements between the Company
and its directors or employees providing for
compensation for loss of office or employment
(whether through resignation, purported
redundancy or otherwise) that occurs because of
a takeover bid.
Directors and Secretary
The directors and secretary of the Company at
the date of this report are as shown in The Board
section of this Annual Report.
Conflicts Of Interest
None of the directors have any direct or indirect
interest in any contract or arrangement subsisting
at the date hereof which is significant in relation
to the business of the Company or any of its
subsidiaries nor in the share capital of the
Company or any of its subsidiaries.
Financial Instruments
In the normal course of business, the Group has
exposure to a variety of financial risks, including
foreign currency risk, interest rate risk, liquidity
risk and credit risk. The Company’s financial risk
objectives and policies are set out in Note 20 of
the financial statements.
Internal control and risk management systems
The Board confirms that there is an ongoing
process for identifying, evaluating and managing
any significant risks faced by the Group. This
process has been in place for the year under
review and up to the date of approval of the
financial statements, and it is regularly reviewed
by the Board in compliance with ‘Guidance on
Risk Management, Internal Control and Related
Financial and Business Reporting’ issued by the
Financial Reporting Council.
The Board has delegated responsibility to the Audit
& Compliance Committee to monitor and review
the Group’s risk management and internal control
processes, including the financial, operational
and compliance controls. This is done through
detailed discussions with management and the
executive directors, the review and approval of the
internal audit reports, which focus on the areas of
greatest risk to the Group, and the external audit
reports, as part of both the year end audit and
the half year process, all of which are designed to
highlight the key areas of control weakness in the
Group. Further details of the work conducted by
the Audit & Compliance Committee in this regard
is detailed in the Report of the Audit & Compliance
Committee contained in this Annual Report.
The main features of the Group’s internal control
and risk management systems that relate
specifically to the Group’s financial reporting
processes are:
»
budgets and strategic plans are approved
annually by the Board and compared to actual
performance and forecasts on a monthly basis;
»
sufficiently sized finance teams with appropriate
level of experience and qualifications
throughout the Group;
»
formal Group Accounting Manual in place which
clearly sets out the Group financial policies in
addition to the formal controls;
»
formal IT and treasury policies and controls in
place;
»
centralised tax and treasury functions;
»
sales reports are submitted and reviewed on
a weekly basis whilst full reporting packs are
submitted and reviewed on a monthly basis;
and
»
internal audit function review financial controls,
IT general controls, cyber security controls and
report results/findings on a quarterly basis to
the Audit & Compliance Committee.
The main features of the Group’s internal control
and risk management systems that relate
specifically to the Group’s consolidation process are:
»
the review of reporting packages for each
entity as part of the year end audit process;
»
the reconciliation of reporting packages to
monthly management packs as part of the
audit process and as part of management
review;
»
the validation of consolidation journals as part
of the management review process and as
an integral component of the year end audit
process;
»
the review and analysis of results by the Chief
Financial Officer and the internal auditors with
the management of each division;
»
consideration by the Audit & Compliance
Committee of the outcomes from the annual
risk assessment of the business; and
»
the review of internal and external audit
management letters by the Chief Financial
Officer, the Head of Internal Audit &
Compliance and the Audit & Compliance
Committee and the follow up of any critical
management letter points to ensure issues
highlighted are addressed.
In addition, the remit of the Audit & Compliance
Committee also includes reviewing the
effectiveness of the controls and processes
relating to product compliance by:
»
reviewing reports from the Group Head of
Audit & Compliance relating to product
compliance, certification and accreditation,
including implementation status of the Group’s
ISO 37301 Compliance Management Systems
targets;
»
auditing compliance with the Group Marketing
Integrity Manual; and
»
monitoring the culture of compliance across
the Group.
Further information on the risks faced by the Group
and how they are managed are set out in the Risk &
Risk Management section of this Annual Report.
Accounting Records
The directors are responsible for ensuring that
accounting records, as outlined in Sections 281 to
285 of the Companies Act 2014, are kept by the
Group. The directors have provided appropriate
systems and resources, including the appointment
of suitably qualified accounting personnel,
CC Estepark
Castellón,Spain
Insulated Panels
Italia 30 linear ceiling
Annual Report & Financial Statements 2024
148
Kingspan Group plc
149
Directors’ Report
Report of the Directors
to maintain adequate accounting records
throughout the Group, in order to ensure that the
requirements of Sections 281 to 285 are complied
with. The accounting records of the Company
are maintained at the principal executive offices
located at Dublin Road, Kingscourt, Co. Cavan,
A82 XY31, Ireland.
Political Donations
Neither the Company nor any of its subsidiaries
have made any political donations in the year
which would be required to be disclosed under the
Electoral Act 1997 (2023: €nil).
Subsidiary Companies
Kingspan is a truly global business, trading in over
80 countries with 273 manufacturing sites across
the globe.
The Company’s principal subsidiary undertakings
at 31 December 2024, country of incorporation
and nature of business are listed on pages 328 to
329 of this Annual Report.
The Company does not have any branches outside
of Ireland.
Significant Events Since Year End
On 4 February 2025, the Group announced a
public offer for all shares in Nordic Waterproofing
Holding AB (NWG) at a price of SEK 182.50
in cash per share (the Offer). The total value
of the Offer, based on the 3,041,052 shares
in NWG which are not owned by the Group,
amounts to approximately SEK 555 million. The
Board of Directors of NWG have unanimously
recommended that the shareholders of NWG
accept the Offer. Please see Note 35 of the
financial statements for further details.
There have been no other material events
subsequent to 31 December 2024 which would
require adjustment to, or disclosure in this report.
Going Concern
The directors have reviewed budgets and
projected cash flows for a period of not less than
12 months from the date of this Annual Report,
and considered its net debt position and capital
commitments, available committed banking
facilities and other relevant information including
the economic conditions currently affecting the
building environment generally and the Group’s
Strategic Plan. On the basis of this review, the
directors have concluded that there are no material
uncertainties that would cast significant doubt over
the Company’s and the Group’s ability to continue
as a going concern. For this reason, the directors
consider it appropriate to adopt the going concern
basis in preparing the financial statements.
Viability Statement
The directors are required to assess the prospects
of the Company, explain the period over which
we have done so and state whether we have a
reasonable expectation that the Company will be
able to continue in operation and meet liabilities
as they fall due over this period of assessment.
The directors have assessed the prospects of the
Group over the three-year period to February 2028.
The directors concluded that three years was an
appropriate period for the assessment, having had
regard to:
»
the Group’s rolling Strategic Plan which extends
to 2028;
»
the Group’s long-term funding commitments
some of which fall to be repaid during the
period;
»
the inherent short-cycle nature of the
construction market including the Group’s
order bank and project pipeline; and
»
the potential impact of macro-economic
events and political uncertainty in some
regions.
It is recognised that such future assessments are
subject to a level of uncertainty that increases
with time, and therefore future outcomes cannot
be guaranteed or predicted with certainty.
The Group Strategic Plan is approved by the Board,
building upon the several divisional management
plans as well as the Group’s strategic goals. It
is based on a number of cautious assumptions
concerning macro growth and stability in our
key markets, and continued access to capital to
support the Group’s ongoing investments. The
strategic plan is subject to stress testing which
involves flexing a number of the main assumptions
underlying the forecast in severe but reasonable
scenarios. Such assumptions are rigorously tested
by management and the directors. It is reviewed
and updated annually and was considered
and approved by the Board at its meeting in
December 2024.
In making this assessment, the directors have
considered the resilience of the Group, taking
account of its current position and the principal
risks facing the business as outlined in the Risk
& Risk Management Report contained in this
Annual Report, and the Group’s ability to manage
those risks. The risks have been identified using
a top-down and bottom-up approach, and their
potential impact was assessed having regard to
the effectiveness of controls in place to manage
each risk. In assessing the prospects of the Group
such potential impacts have been considered as
have the mitigating factors in place.
Based on this assessment the directors have
a reasonable expectation that the Group will
be able to continue in operation and meet its
liabilities as they fall due over the three-year
period of their assessment.
Directors’ Responsibility Statement
Each of the directors whose names and functions
are set out in The Board section of this Annual
Report confirm their responsibility for preparing
the Annual Report and the consolidated and
Company financial statements in accordance with
applicable Irish law and regulations.
Company law in Ireland requires the directors to
prepare financial statements for each financial
year. Under that law the directors have to
prepare the consolidated financial statements in
accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European
Union (EU). The directors have elected to prepare
the Company financial statements in accordance
with IFRSs as adopted by the EU and as applied by
the Companies Act 2014. The financial statements
are required by law to give a true and fair view of
the assets, liabilities and financial position of the
Group and Company at 31 December 2024 and of
the profit or loss of the Group for that period. In
preparing those financial statements, the directors
are required to:
»
select suitable accounting policies and then
apply them consistently;
»
make judgements and estimates that are
reasonable and prudent;
»
state whether applicable IFRSs have been
followed, subject to any material departures
disclosed and explained in the financial
statements; and
»
prepare the financial statements on the going
concern basis unless it is inappropriate to
presume that the Company, and the Group as
a whole, will continue in business.
The directors are responsible for keeping
accounting records which disclose with reasonable
accuracy at any time the financial position of the
Group and the Company and which enable them
to ensure that the financial statements comply
with the Companies Act 2014 and Article 4 of the
IAS Regulation.
They are responsible for safeguarding the assets of
the Group and hence for taking reasonable steps
for the prevention and detection of fraud and
other irregularities.
The directors are responsible for the maintenance
and integrity of the corporate and financial
information on the Company’s website. Legislation
in the Republic of Ireland governing the preparation
and dissemination of financial statements may
differ from legislation in other jurisdictions.
In accordance with Transparency (Directive
2004/109/EC) Regulations 2007 and the
Transparency Rules of the Financial Regulator,
the directors confirm that to the best of their
knowledge:
»
the Group financial statements and the
Company financial statements, prepared
in accordance with the applicable set of
accounting standards, give a true and fair view
of the assets, liabilities, financial position and
profit or loss of the Group and Company; and
»
the Report of the Directors 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 they face.
They are also satisfied:
»
that the Annual Report and financial
statements, taken as a whole, is fair,
balanced and understandable and provides
the information necessary for shareholders to
assess the Group’s position, business model
and strategy.
Statement of Directors’ Responsibilities for the
CSRD Sustainability Statement
The directors are responsible for developing and
implementing a process to identify the information
reported in the CSRD Sustainability Statement (the
Sustainability Statement) in accordance with the
ESRS and for disclosing this process in the basis
of preparation on page 161 of the Sustainability
Statement. This responsibility includes:
»
understanding the context in which the Group’s
activities and business relationships take
place and developing an understanding of its
affected stakeholders;
»
the identification of the actual and potential
impacts (both negative and positive) related
to sustainability matters, as well as risks and
opportunities that affect, or could reasonably
be expected to affect, the Group’s financial
position, financial performance, cash flows,
access to finance or cost of capital over the
short, medium, or long-term;
Annual Report & Financial Statements 2024
150
Kingspan Group plc
151
Directors’ Report
Report of the Directors
»
the assessment of the materiality of the
identified impacts, risks and opportunities
related to sustainability matters by selecting
and applying appropriate thresholds; and
»
making assumptions and estimates that are
reasonable in the circumstances.
The Directors are further responsible for the
preparation of the Sustainability Statement in
accordance with Part 28 of the Companies Act
2014, including, but not limited to:
»
preparation in accordance with the ESRS;
»
presenting and reporting a double materiality
assessment process to identify the information
required to be reported in the Sustainability
Statement pursuant to the ESRS and for
disclosing this process in the Sustainability
Statement;
»
preparing the disclosures in subsection The EU
Taxonomy within the environmental section of
the Sustainability Statement, in compliance
with Article 8 of EU Regulation 2020/852 (the
Taxonomy Regulations);
»
designing, implementing and maintaining such
internal controls that are deemed necessary
to enable the preparation of the Sustainability
Statement free from material misstatement,
whether due to fraud or error; and
»
the selection and application of appropriate
sustainability reporting methods and
making assumptions and estimates that are
reasonable in the circumstances.
In reporting forward-looking information in
accordance with ESRS, the Group is required
to prepare the forward-looking information
on the basis of disclosed assumptions about
events that may occur in the future and possible
future actions by the Group. This includes the
selection of different but acceptable estimation,
approximation or forecasting techniques, which
could have resulted in materially different
amounts or disclosures being reported. Actual
outcome is likely to be different since anticipated
events frequently do not occur as expected.
Directors’ Compliance Statement
The directors acknowledge that they are
responsible for securing the Company’s
compliance with its relevant obligations in
accordance with Section 225 (2)(a) of the
Companies Act 2014 (the Act) (described below as
the Relevant Obligations).
In accordance with Section 225 (2)(b) of the Act,
the directors confirm that:
»
a Compliance Policy Statement has been
drawn up setting out the Company’s policies
(that are, in the opinion of the directors,
appropriate to the Company) in respect of the
compliance by the Company with its Relevant
Obligations;
»
appropriate arrangements or structures are
in place that, in the opinion of the directors,
provide a reasonable assurance of compliance
in all material respects with the Company’s
Relevant Obligations; and
»
during the financial year to which this report
relates, a review has been conducted of the
arrangements or structures that are in place
to ensure material compliance with the
Company’s Relevant Obligations.
Relevant Audit Information
Each of the directors have taken all the steps that
they should or ought to have taken as a director
in order to make himself or herself aware of any
relevant audit information and to establish that
the Group’s statutory auditor is aware of that
information. So far as the directors are aware,
there is no relevant information of which the
Group’s statutory auditor is unaware.
Auditor
In accordance with Section 383(2) of the
Companies Act 2014, the Company’s auditor, EY,
will continue in office. EY were first appointed as
the Company’s auditor on 1 May 2020, with effect
for the financial year ending 31 December 2020. A
resolution authorising the directors to determine
their remuneration will be proposed at the AGM.
On behalf of the Board
Gene Murtagh
Chief Executive Officer
Geoff Doherty
Chief Financial Officer
25 February 2025
By surfacing our products
digitally, we’re making it
easier to find, specify, buy,
build with and track them.
Annual Report & Financial Statements 2024
152
Kingspan Group plc
153
Directors’ Report
Report of the Directors
103 City Point
Massachusetts, USA
Light, Air + Water
UniQuad® wall
system; PentaClad®
cladding system
155
CSRD
Sustainability
Statement
Kingspan Group plc
Annual Report & Financial Statements 2024
154
Greater Manchester
Major Trauma Hospital
Salford, UK
Insulation
K-Roc® Rainscreen Slab
Limited Assurance Report on the CSRD Sustainability Statement
156
General Information
160
Environmental Information
170
EU Taxonomy
171
E1 Climate change
177
E2 Pollution
192
E3 Water and marine resources
194
E4 Biodiversity and ecosystems
196
E5 Resource use and circular economy
198
Social Information
208
S1 Own workforce
209
S2 Workers in the value chain
220
S3 Affected communities
223
S4 Consumers and end-users
226
Governance Information
232
G1 Business conduct
233
Appendices 238
156
Kingspan Group plc
157
Our limited assurance conclusion
We have performed a limited
assurance engagement on the
sustainability reporting set out in
the CSRD Sustainability Statement
prepared by Kingspan Group plc
(‘the Group’), included on pages
160 to 251 of the Annual Report
of the Group for the year ended
31 December 2024, prepared in
accordance with Part 28 of the
Companies Act 2014.
Based on the procedures performed
and evidence obtained, nothing has
come to our attention to cause us
to believe that the Group’s CSRD
Sustainability Statement for the
year ended 31 December 2024 is not
prepared, in all material respects,
in accordance with Part 28 of the
Companies Act 2014, including:
»
The compliance of the CSRD
Sustainability Statement with
the European Sustainability
Reporting Standards (ESRS);
»
The process carried out by
the Group to identify material
sustainability related impacts,
risks and opportunities in
accordance with ESRS;
»
The compliance with the
reporting requirements of Article
8 of Regulation (EU) 2020/852
(the “Taxonomy Regulations”);
and
»
Compliance with the
requirement to mark up the
CSRD Sustainability Statement
in accordance with Section 1600
of the Companies Act 2014.
Basis for our conclusion
We conducted our limited assurance
engagement in accordance with
International Standard on Assurance
Engagements (ISAE) (Ireland)
3000, as adopted by the Irish
Auditing and Accounting Supervisory
Authority (IAASA). The procedures
in a limited assurance engagement
vary in nature and timing from,
and are less in extent than for, a
reasonable assurance engagement.
Consequently, the level of assurance
obtained in a limited assurance
engagement is substantially lower
than the assurance that would have
been obtained had a reasonable
assurance engagement been
performed.
Any internal control structure,
no matter how effective, cannot
eliminate the possibility that fraud,
errors or irregularities may occur and
remain undetected and because
we use selective testing in our
engagement, we cannot guarantee
that all errors or irregularities, if
present, will be detected.
The CSRD Sustainability Statement
includes prospective information
such as ambitions, strategy, plans,
expectations and estimates.
Prospective information relates to
events and actions that have not yet
occurred and may never occur. We
do not provide any assurance on the
assumptions and achievability of this
prospective information.
Our responsibilities under this
standard are further described in the
section titled ‘Our responsibilities’ in
this report.
We are independent of the Group in
accordance with the International
Code of Ethics for Professional
Accountants (including International
Independence Standards) issued
by the International Ethics
Standards Board for Accountants
(IESBA Code), the independence
requirements of the Companies Act
2014 and the Code of Ethics issued
by Chartered Accountants Ireland
that are relevant to our limited
assurance engagement of the CSRD
Sustainability Statement in Ireland.
Our firm applies International
Standard on Quality Management
(ISQM) 1 (Ireland), Quality
Management for Firms that
Perform Audits or Reviews of
Financial Statements, or Other
Assurance or Related Services
Engagements, issued by the IAASA.
This standard requires the firm to
design, implement and operate a
system of quality management,
including policies or procedures
regarding compliance with ethical
requirements, professional standards
and applicable legal and regulatory
requirements.
We believe that the evidence we
have obtained is sufficient and
appropriate to provide a basis for our
conclusion.
Other matter – Compliance with
the requirement to mark-up the
CSRD Sustainability Statement
We note that Section 1613(3)(c) of
the Companies Act 2014 requires
us to report on the compliance by
the Group with the requirement to
mark-up the CSRD Sustainability
Statement in accordance with
Section 1600 of that Act. Section
1600 of the Companies Act 2014
requires that the Directors’ Report is
prepared in the electronic reporting
format specified in Article 3 of
Delegated Regulation (EU) 2019/815
and shall mark-up the CSRD
Sustainability Statement. However,
at the time of issuing our limited
assurance report, the electronic
reporting format has not been
specified nor become effective by
Delegated Regulation. Consequently,
the Group is not required to mark-up
the CSRD Sustainability Statement.
Our conclusion is not modified in
respect of this matter.
Other information
The directors are responsible
for the other information. The
other information comprises the
information included in the Group’s
Annual Report but does not include
the CSRD Sustainability Statement
and our Limited Assurance Report
thereon.
Our limited assurance conclusion on
the CSRD Sustainability Statement
does not cover the other information
and we do not express any form of
assurance conclusion thereon.
The comparatives included in the
CSRD Sustainability Statement have
not been part of the assurance
engagement. Consequently, the
comparative sustainability reporting
and thereto related disclosures in the
CSRD Sustainability Statement for
this period are not assured.
Responsibilities for the CSRD
Sustainability Statement
As explained more fully in
the Statement of Directors’
Responsibilities for the CSRD
Sustainability Statement, the
directors of the Group are
responsible for:
»
Preparing, measuring, presenting
and reporting the CSRD
Sustainability Statement in
accordance with the relevant
criteria, contained in the
applicable sustainability reporting
framework being the ESRS, Part
28 of the Companies Act 2014;
the Taxonomy Regulations; the
requirement to mark up the
CSRD Sustainability Statement
in accordance with Section 1600
of the Companies Act 2014; and
any additional criteria used by
the Group to supplement and/
or interpret the sustainability
reporting framework criteria; and
»
Developing, implementing and
reporting its double materiality
assessment process to identify
the information reported in the
CSRD Sustainability Statement
in accordance with ESRS and
for disclosing this process in the
CSRD Sustainability Statement.
This responsibility includes
identifying and engaging with
the Group’s stakeholders as
identified in the Group’s double
materiality assessment process
(stakeholders) to understand
their information needs.
Those charged with governance
are also responsible for overseeing
the Group’s CSRD Sustainability
Statement reporting process.
Inherent limitations in preparing
the CSRD Sustainability
Statement
Inherent limitations exist in all
assurance engagements. There
are inherent limitations regarding
the measurement or evaluation of
the CSRD Sustainability Statement
subject to limited assurance, which
have been set out below:
»
Estimates, approximations and/
or forecasts used by the Group
in preparing and presenting
their CSRD Sustainability
Statement are subject to
significant inherent uncertainty.
The extent to which the CSRD
Sustainability Statement contains
qualitative, quantitative,
objective, subjective, historical
and prospective disclosures, also
represents a significant degree
of uncertainty. The selection
by management of different
but acceptable estimation,
approximation or forecasting
techniques, could have resulted
in materially different amounts
or disclosures being reported.
For the avoidance of doubt, the
scope of our engagement and
our responsibilities will not involve
us performing work necessary for
any assurance on the reliability,
proper compilation, or accuracy
of the prospective information.
»
Certain metrics reported
within the CSRD Sustainability
Statement may be subject to
inherent limitations, for example,
value chain information relating
to emissions data provided by
third parties.
Our responsibilities
Our objectives are to plan and
perform the assurance engagement
to obtain limited assurance about
whether the CSRD Sustainability
Statement in scope of our
conclusion, is free from material
misstatement, whether due to
fraud or error, and to issue a Limited
Assurance Report that includes
our conclusion. Misstatements can
arise from fraud or error and are
considered material if, individually
or in the aggregate, they could
reasonably be expected to influence
decisions of users on the basis of the
CSRD Sustainability Statement.
As part of a limited assurance
engagement in accordance with
ISAE (Ireland) 3000, we exercise
professional judgment and maintain
professional scepticism throughout
the engagement. We also:
»
Perform risk assessment
procedures, including obtaining
an understanding of internal
controls relevant to the
engagement, to identify
disclosures where material
misstatements are likely to
arise, whether due to fraud or
error, but not for the purpose
of providing a conclusion on
the effectiveness of the Group’s
internal control.
»
Design and perform
procedures responsive to where
material misstatements are
likely to arise in the CSRD
Sustainability Statement.
The risk of not detecting a
material misstatement resulting
from fraud is higher than for
one resulting from error, as
fraud may involve collusion,
forgery, intentional omissions,
misrepresentations, or the
override of internal control.
»
Design and perform procedures
to evaluate whether the CSRD
Sustainability Statement has
been prepared in accordance
with the ESRS, which includes
the process carried out by the
Group to identify material
sustainability related impacts,
risks and opportunities.
»
Design and perform procedures
to evaluate whether the CSRD
Sustainability Statement has
been prepared in compliance
with the Taxonomy Regulations.
»
With respect to our conclusion in
respect to the Group’s reporting
obligations and responsibility to
Independent Practitioner’s Limited Assurance Report to the Directors of Kingspan Group plc
Limited Assurance Report on the CSRD Sustainability Statement
Annual Report & Financial Statements 2024
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Kingspan Group plc
157
CSRD Sustainability Statement
158
Kingspan Group plc
159
mark up the CSRD Sustainability
Statement in accordance with
Section 1600 of the Companies
Act 2014, we assess whether we
have become aware of anything
to suggest that the CSRD
Sustainability Statement has not
been prepared, in all material
respects in this specified format.
However, as explained in the
‘Other matter - Compliance with
the requirement to mark-up the
CSRD Sustainability Statement’
section of our assurance report,
the Group is not currently
required to mark-up the CSRD
Sustainability Statement.
Summary of the work performed
A limited assurance engagement
involves performing procedures
to obtain evidence about the
CSRD Sustainability Statement.
The nature, timing and extent of
procedures selected depend on
professional judgment, including
the identification of disclosures
where material misstatements are
likely to arise, whether due to fraud
or error, in the CSRD Sustainability
Statement.
The procedures in a limited
assurance engagement vary in
nature and timing from, and are
less in extent than for, a reasonable
assurance engagement and depend
on professional judgment, including
the identification of disclosures
where material misstatements are
likely to arise, whether due to fraud
or error, in the CSRD Sustainability
Statement. Consequently, the
level of assurance obtained in a
limited assurance engagement
is substantially lower than the
assurance that would have
been obtained had a reasonable
assurance engagement been
performed.
In conducting our limited assurance
engagement, the procedures
performed included the following:
»
We obtained an understanding
of the CSRD Sustainability
Statement reporting process
performed by the Group,
including the preparation of the
CSRD Sustainability Statement;
»
We obtained an understanding
of the Group’s double
materiality assessment process
by performing inquiries to
understand the sources of
the information used by
management and reviewing the
Group’s internal documentation
of this process; and evaluated
whether the evidence obtained
from our procedures about the
Group’s process is consistent
with the description of the
process set out in the CSRD
Sustainability Statement;
»
We performed risk assessment
procedures to understand the
Group and its environment,
including the Group’s reporting
boundary, its value chain
information and identified risks
of material misstatement;
»
We designed and performed
further assurance procedures
(which included inquiries and
analytical procedures) to
respond to the identified risks of
material misstatement; and
»
We evaluated the overall
presentation of the CSRD
Sustainability Statement and
considered whether the CSRD
Sustainability Statement
as a whole, including the
sustainability matters and
disclosures, is disclosed in
accordance with the applicable
criteria.
The purpose of our limited
assurance work and to whom we
owe our responsibilities.
Our report is made solely in
accordance with Section 1613 of the
Companies Act 2014 to the Directors
of the Group.
Our assurance work has been
undertaken so that we might state
to the Directors those matters we
are required to state to them in a
limited assurance report and for
no other purpose. To the fullest
extent permitted by law, we do not
accept or assume responsibility to
anyone other than the Group and its
Directors, as a body, for our limited
assurance work, for this report, or for
the conclusions we have formed.
Dermot Daly
for and on behalf of
Ernst & Young Chartered
Accountants Office: Dublin
Date: 26 February 2025
Linara GmbH
Kaufbeuren,
Germany
Insulated Panels
Karrier BK panel
Annual Report & Financial Statements 2024
158
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159
CSRD Sustainability Statement
160
Kingspan Group plc
161
BP-1 – General basis
for preparation of the
Sustainability Statement
We, the directors of Kingspan Group
plc (the Group) have prepared this
CSRD Sustainability Statement
(the Sustainability Statement) for
the year ended 31 December 2024
in accordance with Part 28 of the
Companies Act 2014. Relevant data
points within the Environmental,
Social and Governance (ESG)
sections have been evaluated
through our Double Materiality
Assessment (DMA) to ensure that
applicable material information is
disclosed in compliance with the
reporting requirements.
Our Sustainability Statement is
prepared on the same consolidated
basis as the financial statements.
Where full integration was not
feasible, we have incorporated
estimates to ensure completeness
and transparency in our disclosures.
In addition to covering our internal
operations, the Sustainability
Statement extends to relevant
aspects of our upstream and
downstream value chain.
Specifically, our DMA identifies
material Impacts, Risks and
Opportunities (IROs) throughout the
value chain and we clearly define
the boundaries of our value chain
coverage where relevant.
In accordance with ESRS, the
Group has opted to omit certain
information due to its commercially
sensitive nature. Specifically, this
omission pertains to details on
future financial resources allocated
to the action plan, including capital
expenditures (capex) and operating
expenses (opex). The Group has
allocated significant operational
and capital resources to execute
its sustainability action plan and
achieve its long-term strategic
objectives. The Group funds its
operations and investments through
a capital structure comprising a
combination of equity and debt.
Debt financing includes a green
revolving credit facility and green
private placement loan notes,
reflecting the Group’s commitment
to sustainable development. In
2024, the Group established a
Green Finance Framework to
support the issuance of green
finance instruments, enabling
the financing or refinancing of
projects that meet Taxonomy
criteria and further advancing its
sustainability initiatives. Additional
details on the Group’s capital
structure, financing arrangements
and available headroom can be
found in the Financial Review
section of this Annual Report. For
further information relevant to the
Group’s core funding and liquidity
risk, please refer to Note 20 of the
Financial Statements.
The Group’s ability to implement
its sustainability action plan
is not dependent on external
preconditions, such as financial
support or public policy
developments. While specific
funding allocations per action are
commercially sensitive and not
disclosed, the Group’s established
financing structure ensures the
flexibility and capacity to execute
the action plan effectively.
External review
This Sustainability Statement has
been subject to a limited assurance
review by the Group’s statutory
auditor, EY. Please refer to the
Limited Assurance Report for
further information.
CSRD SUSTAINABILITY
STATEMENT
Résidence
Étudiante Lemon
Brest, France
Insulated Panels
JI Ouragan P30 reverse
facade cladding
GENERAL
INFORMATION
Summary of Key Terms and Acronyms
Acronym
Definition
CSRD
Corporate Sustainability Reporting Directive
DMA
Double Materiality Assessment
ESRS
European Sustainability Reporting Standards
IRO
Impact, Risk and Opportunity
DNSH
Do No Significant Harm
For a comprehensive list of acronyms and definitions used in this report, please refer to Appendix 6.
Annual Report & Financial Statements 2024
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161
CSRD Sustainability Statement
162
Kingspan Group plc
163
oversee sustainability related
targets, including their integration
into remuneration policies, please
refer to section GOV-3 of this
Statement.
GOV-2 – Information
provided to and
sustainability
matters addressed
by the undertaking’s
administrative,
management and
supervisory bodies
The Board, CEO and executive
directors are informed about
sustainability matters through
our internal reporting structures.
These structures allow oversight of
sustainability related IROs across
the Group’s operating divisions. This
process includes reporting material
issues to the Board, with updates
on CSRD compliance provided at
each of the four Audit & Compliance
Committee meetings during the
year ended 31 December 2024.
Divisional management teams must
assess sustainability progress and
raise material IROs for escalation
via our structured internal reporting
processes, which include monthly
divisional management meetings.
The Chief Sustainability, Digital
and Marketing Officer provides
periodic updates to the Board on the
progress of the Planet Passionate
programme. The Board reviews
material sustainability topics,
including climate initiatives, resource
efficiency and employee wellbeing,
ensuring that these topics, as
outlined in ESRS 2 SBM-3 of the
Statement detailing the Group’s
material IROs, are incorporated
into the decision-making processes
across the Group.
The Board also considers
sustainability IROs when overseeing
the Group’s strategy and approving
major transactions. The Board
evaluates relevant factors including
potential fit with our sustainability
goals, opportunities to leverage
synergies and learnings and also
balancing short-term risks to our
sustainability journey against longer-
term success factors.
GOV-3 – Integration of
sustainability related
performance in incentive
schemes
The remuneration principles and
overall remuneration of the Group’s
executive directors are outlined in
the Report of the Remuneration
Committee section within this
Annual Report.
The Group offers both short-term
and long-term incentive schemes for
members of management linked to
sustainability related performance.
This demonstrates the Group’s
commitment to achieving its
sustainability strategy.
»
Short-term incentives:
These include an annual bonus
based on the Group’s financial
performance and the customer
performance indicator (Net
Promoter Score). A portion
of the Net Promoter Score
(NPS) is directly tied to the
Group’s perceived sustainability
performance, reflecting key
ESG elements. This includes
factors such as customer trust
in our sustainable practices
and the broader impact of our
ESG initiatives on customer
perception. By linking NPS
to sustainability related
performance, the Group
ensures that customer focused
sustainability outcomes are
meaningfully integrated
into its incentive schemes.
While NPS accounts for 10% of
the base salary component, this
represents 6.7% of the
total maximum bonus
opportunity. Note that from
2025, a new health & safety
metric will also be included
as part of the annual bonus
performance targets.
»
Long-term incentive plan
(LTIP): These include specific
sustainability related targets,
which account for 10% of the
vesting criteria applicable to
the annual performance share
plan award (increasing to 15%
for 2025 awards). These targets
focus on nine of the Group’s
Planet Passionate environmental
objectives, such as reducing GHG
emissions, increasing renewable
energy use and rainwater
harvesting. These objectives
directly contribute to the Group’s
overall climate strategy and
performance is assessed against
these targets, which align with
our GHG emission reduction
targets under E1-4 – Targets.
The Board and the Remuneration
Committee review sustainability
linked incentives annually to ensure
they align with the Group’s evolving
ESG priorities and long-term
strategy.
For further information on the
specific sustainability related targets
included within the performance
share plan, please see the Report of
the Remuneration Committee within
this Annual Report.
GOV-4 – Statement on due
diligence
The table below maps where in
our Statement we outline our due
diligence process, including the key
aspects and steps we follow.
BP-2 – Disclosures in
relation to specific
circumstances
The Group uses estimates in the
reporting of certain data points.
These estimates are reviewed and
updated based on evolving ESG
reporting standards and other
relevant factors. Any changes
to estimates are recognised in
the period they are revised. We
are committed to maintaining
transparency around each data
point, reporting this information
alongside the relevant disclosures
and sharing key estimates,
judgments and assumptions used in
our reporting.
Unless otherwise stated, we define
time horizons as follows: short-term
refers to one year, medium-term
covers the period from the end of
the short-term up to five years and
long-term is defined as more than
five years.
To prepare for the CSRD, we
have aligned our ESG KPI (Key
Performance Indicator) reporting
with the applicable definitions
and requirements of the ESRS. Any
restatements are disclosed in the
accounting principles related to the
relevant KPI.
The Group uses estimates for
reporting selected data points
when direct data is not readily
available. These estimates and
judgments are reviewed on an
ongoing basis to ensure accuracy
and reliability. Management
develops its estimates using
historical experience, insights from
internal experts, independent
advice, external data sources
and other information deemed
reasonable under the given
circumstances. For each data
point, we clearly indicate where
an estimate has been applied.
The measurement of all disclosed
metrics has only been subject
to validation by the assurance
provider, with no additional
external validation. Where specific
information, metrics or data
points are required disclosure for
the purposes of the Statement,
but are noted in the Statement as
being included elsewhere in the
Annual Report, they are hereby
incorporated by reference.
A content index with the ESRS
Disclosure Requirements that
are covered by the Statement is
included alongside information
reported in alignment with other
sustainability frameworks.
GOV-1 – The role of
the administrative,
management and
supervisory bodies
The Group Board of Directors (the
Board) holds overall responsibility
for the Group’s internal control
system, while day-to-day
implementation is delegated to
executive management.
The Audit & Compliance
Committee, established as a
sub-committee of the Board, is
specifically tasked with monitoring
the effectiveness of the Group’s risk
management and internal control
systems. This governance structure
ensures that sustainability matters
are integrated into the highest
levels of oversight, including the
management of material IROs.
To support this, a CSRD working
group, consisting of members
of Group Management and
senior managers, was formed
to coordinate and support
strategic decision-making for the
implementation of CSRD. The
Group holds monthly meetings,
with progress updates on CSRD,
including the DMA and the
management of IROs, provided
to the CFO on a bi-monthly basis
and to the Audit & Compliance
Committee at each of their
meetings throughout the year.
The Group CEO is tasked with
overseeing sustainability related
issues, ensuring they are integrated
into the Group’s strategy, risk
management and business plans.
The CEO, supported by the Board’s
executive directors also oversees
sustainability efforts across our five
operating divisions, with key issues
reported to the Board bi-monthly
via our internal reporting structures.
The Chief Sustainability, Digital and
Marketing Officer reports directly
to the CEO and leads the Planet
Passionate programme, providing
periodic updates to the Board on
environmental initiatives. In 2023,
the Group launched the People
Passionate programme, led by the
Group Head of Leadership and
Development. This programme
focuses on social sustainability,
including employee development
and well-being and is supported by
Human Resource representatives
across the Group.
The Board, CEO, executive directors
and divisional management ensure
that appropriate skills and expertise
are in place to oversee sustainability,
either through direct experience
or external support and promote
the ongoing development of
sustainability expertise across
the Group. Following Linda Hickey’s
retirement from the Board, Éimear
Moloney will be appointed as
workforce engagement iNED.
Additionally, following the Annual
General Meeting, Eavan Saunders
will be appointed as the CSR
Engagement iNED, reinforcing the
Board’s commitment to strong
governance practices in addressing
material sustainability issues.
The Board is composed of four
executive members and seven
non-executive members. Further
information on the Board’s
composition, skills and experience
and responsibilities is incorporated
by reference in The Board section of
this Annual Report.
For details on how the Board and
the Remuneration Committee
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164
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165
key suppliers to identify short and
medium term solutions that reduce
the environmental impacts of our
key products while maintaining their
high performance. Procuring lower
embodied carbon raw materials is
a key part of our strategy, as it will
enable us to offer lower embodied
carbon products to our customers
and contribute to the reduction of
our scope 3 GHG emissions.
The Group’s core product
categories, insulated panels,
insulation boards, roofing and
waterproofing solutions, raised
access flooring, data centre airflow
systems and daylighting and water
management solutions are widely
used across sectors such as retail,
infrastructure, manufacturing and
residential. Through the continuous
development of innovative and
proprietary technology, the Group
has built a portfolio of products
that deliver value across key
metrics. Critically, the differentiated
thermal performance of the Group’s
insulation solutions enables design
teams, architects and ultimately our
customers to play a role in tackling
climate change by reducing energy
consumption and GHG emissions.
These solutions provide recognised
benefits for stakeholders.
The Group distributes its products
through a combination of direct
sales and distribution channels,
primarily targeting the new-build,
commercial and industrial sectors.
Upstream, the Group collaborates
with key suppliers to source key raw
materials, working with partners
to understand and benchmark
their sustainability performance.
Downstream, the Group fosters
strong relationships with a range
of stakeholders including but not
limited to contractors, architects,
developers, engineers, building
designers, building owners, facilities
managers and local authorities to
deliver high-performance building
envelope solutions across a wide
range of applications. For further
details on our global reach and
solutions, please refer to the Our
Business Model and Strategy section
of this Annual Report.
The total headcount for the Group
and the headcount of countries
with greater than 10% of the total
headcount are reported in section
S1-6 of the Statement. For total
revenue breakdown by the Group’s
operating segments please refer to
Note 2 of the Financial Statements.
Where applicable and material,
none of our products or services
are banned in any markets when
installed correctly in systems that
comply with building regulations. We
actively stay ahead of regional and
local regulatory changes to ensure
compliance and there is no evidence
of non-compliance.
SBM-2 – Interests and
views of stakeholders
As a global leader in building
envelope solutions, the Group
engages with a diverse range of
stakeholders at a local, regional
and global scale. The Group defines
stakeholders as individuals or groups
whose interests are affected or could
be affected by our activities and
products.
Key stakeholder groups include:
»
Employees;
»
Shareholders/Investors;
»
Financial institutions;
»
Suppliers;
»
Customers and end-users;
»
Regulatory bodies/government
agencies/policymakers;
»
Industry associations/
professional bodies; and
»
Community organisations/Non-
governmental organisations
(NGOs).
We engage with key stakeholder
groups through various methods,
including direct meetings, surveys,
industry forums and participation in
working groups. The purpose of these
engagements varies depending on
the specific circumstances, but a
common theme is understanding
their views, needs and expectations.
We recognise that collaboration
with our stakeholders is crucial for
achieving our business objectives,
fostering growth and contributing
to sustainable development.
Maintaining an open dialogue allows
us to build strong relationships
across our value chain, within local
communities and within the broader
construction industry.
Stakeholder engagement is a
critical component of our ongoing
due diligence and DMA processes,
informing both our risk management
approach and the development of
collaborative projects. Stakeholder
feedback and insights have been
incorporated into our decision
making process, especially within
the context of our due diligence and
DMA, as detailed in section IRO-1 of
this Statement.
The feedback and insights gained
from these engagements play a key
role in shaping our business model
and strategy. Stakeholder input
directly influences decisions related
to key sustainability initiatives,
resource efficiency measures and
employee wellbeing. Additionally,
these insights help identify potential
risks and opportunities, which guide
the Group’s long-term strategy
for growth and sustainability. This
ensures that our business model
remains adaptive to evolving
stakeholder expectations and
market dynamics.
SBM-3 – Material impacts,
risks and opportunities
and their interaction with
strategy and business
model
The table below presents the
Group’s analysis of the material
IROs that have been identified
across the relevant ESRS topics.
This is based on the Group’s DMA.
Detailed information on specific
IROs and the actions taken to
address them can be found in the
corresponding topical ESRS sections
of this report. The DMA process is
further explained in section IRO-1.
GOV-5 – Risk
management and
internal controls over
sustainability reporting
The Group’s risk management
and internal control system for
sustainability reporting is an
important component of the
Group’s operational and strategic
framework. Risk management is
integrated across the divisions, each
business is responsible for identifying
and managing sustainability related
risks, while ensuring alignment with
the Group’s overall sustainability
strategy. This localised approach
enables a tailored response to
risks that arise at various levels of
the organisation, ensuring they
are addressed effectively and
incorporated into decision making
processes under the oversight of
divisional senior management,
executive directors and the Audit &
Compliance Committee.
Sustainability risks are identified
through a multi-disciplinary
approach including, but not limited
to, divisional management monthly
meetings with executive directors.
The cross-functional management
teams assess and escalate risks,
starting at the business unit
level, ensuring comprehensive
review across all divisions along
with appropriate escalation
in conjunction with divisional
management. Additionally, an
annual risk review is conducted
by the Group Internal Audit &
Compliance function. This includes
an analysis of sustainability related
risks. The findings are submitted
to the Audit & Compliance
Committee and these risks are
a key component of the annual
strategic review presented to senior
management.
Our assessments cover risks across
the entire value chain, including
those related to suppliers and
operations. Risks are prioritised
based on their potential financial
and strategic impact, ensuring
that the material risks receive
appropriate attention.
The Group’s material risks are
detailed within the corresponding
topical sections of this Statement.
To ensure the completeness and
integrity of sustainability related
data, the Group has established
internal validation and reporting
processes across its divisions. These
controls include standardised
reporting procedures, cross-
functional data reviews and
oversight mechanisms to mitigate
the risk of estimation errors and
data gaps.
Findings from our sustainability risk
assessments are integrated into the
Group’s core functions. Operational
adjustments are made where
necessary to address identified
risks and ensure alignment with
the Group’s sustainability goals.
Additionally, these findings feed
into the Group’s broader strategic
planning process, ensuring that
sustainability considerations are
factored into both medium and
long-term business decisions.
Periodic reporting of key
sustainability risk findings to the
Audit & Compliance Committee
supports ongoing monitoring and
governance, ensuring transparency
and accountability in sustainability
disclosures.
Additionally, Planet Passionate data
is collated and reviewed at the Group
level by the Group Sustainability
team and is also subject to review
by Internal Audit to ensure accuracy,
reliability and alignment with
reporting requirements.
SBM-1 – Strategy, business
model and value chain
The Group’s mission is to
accelerate a net zero emissions
built environment with people
and the planet at its heart. We
aim to achieve this through four
strategic pillars: Innovation, Planet
Passionate, Completing the Envelope
and Globalisation. Our business
model and strategic pillars enable
the ongoing transition to high
performance building envelopes,
replacing outdated and inefficient
construction methods.
The Group’s five key operating
segments offer a suite of
complementary building envelope
solutions for both the new-build and
refurbishment construction markets.
With 273 manufacturing sites, the
Group sources key raw materials
such as metals, chemicals, mineral
fibre and wood from supply chain
partners. To secure and develop
these inputs, the Group works with
Further information may be found here:
Core elements of due diligence
Section in the
Statement
Page
a) Embedding due diligence in governance, strategy and business model
General
165
b) Engaging with affected stakeholders in all key steps of the due diligence
General
165
c) Identifying and assessing adverse impacts
Environmental /
Social
197, 211, 215
d) Taking actions to address those adverse impacts
Environmental /
Social
188, 222
e) Tracking the effectiveness of these efforts and communicating
Social
222
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management team to ensure
alignment with the Group’s
strategic priorities. The DMA
process remained flexible,
allowing for recalibration and
refinement where necessary
to reflect additional insights,
emerging issues or regulatory
guidance.
5. Reporting
The outcome of the DMA
identified material IROs across
all ten ESRS topics, as detailed
in the topical ESRS standards,
forming the basis for the Group’s
sustainability reporting. The
findings were aligned with both
impact and financial materiality,
ensuring that the Group’s
sustainability efforts focus on
the most significant societal,
environmental and business risks
and opportunities.
The assessment serves as a
foundational tool for the Group’s
sustainability reporting. The
dynamic nature of this process
allows for continuous refinement
and adjustment as new risks,
opportunities and stakeholder
expectations emerge. The Group
monitors this assessment on an
ongoing basis, with the findings
integrated into the Group’s overall
risk management and decision
making processes.
The following sections describe the
process in more detail, illustrating
how it was implemented for each of
the ESRS Environmental topics.
Topic-Specific Assessment:
E1 – Climate change
To assess our impacts on climate
change, in particular in our GHG
emissions we have a Group-
wide methodology for collecting,
collating, analysing and reporting
our scope 1, 2 and 3 GHG emissions.
These emissions, which are available
in section E1-6, are the basis of our
climate change impact assessment.
Climate change scenario analysis
enables improvement to our
strategic thinking and planning,
which refines the resilience of our
strategy. A resilient strategy allows
the Group to be more flexible,
adaptable to disruptions and remain
effective under many different
circumstances and conditions.
An integral part of this process
is to identify the multifaceted
implications of climate change
scenarios.
To achieve this, we use a two-
pronged approach:
1) Quantitative analysis: In 2024,
we strengthened our approach
by working with external experts
to better understand the
implications of a wider spectrum
of physical and transition
climate change risks across
different scenarios and time
horizons. The tool used is built
on the latest climate change
science with over 1,000 impact
functions based on literature.
Both our own operations and our
key suppliers (which is the most
material part of our upstream
value chain) were included in the
analysis.
a. Physical risks: We examined
eight physical hazards
(extreme temperature,
drought, wildfire, coastal
flooding, fluvial flooding,
pluvial flooding, tropical
cyclone and water stress)
across eight decades (2020
to 2100) and four climate
change scenarios, across a
mix of Shared Socioeconomic
Pathways (SSPs) and
Representative Concentration
Pathways (RCP). These
included, 1. RCP 8.5-SSP5, 2.
RCP 7.0-SSP3, 3. RCP 4.5-
SSP2 and 4. RCP 2.6-SSP1.
The results of the physical
risk analysis showed exposure
to minimal impacts due to
temperature extremes and
water stress in the higher
climate change RCP-SSP
scenarios starting from the
2040s and rising steadily
until the 2090s. However, the
financial impact of physical
risks was not material to the
Group’s operations in the
lower RCP-SSP scenarios.
b. Transition risks: We
examined five transition
risk types (carbon pricing,
litigation, new technology,
reputational damage and
market) across eight decades
(2020 to 2100) and four
climate change scenarios (1.
RCP 8.5-SSP5, 2. RCP 7.0-
SSP3, 3. RCP 4.5-SSP2 and 4.
RCP 2.6-SSP1).
The results of the transition
risk analysis showed a
number of items including,
but not limited to, exposure
to litigation, new technology,
reputational damage and
market risks were not
material to the Group’s
operations in all the scenarios
that we examined. The
exposure to the financial
impact of carbon pricing was
not found to be material in
medium, medium high and
high scenarios. However, we
found that the exposure to
carbon pricing increased only
in the 2090s in the low (RCP
2.6-SSP1) scenario.
2) Qualitative analysis: For
several of our risks and
opportunities, we were
faced with the constraints
and limitations of publicly
available scenarios. Specifically,
quantitative scenario data for
customer demand/ market
fluctuations for insulation
products are not yet available,
so we studied and used a mix
of SSPs and related Integrated
Assessment Models (IAMs) to
construct a relevant narrative.
This approach allowed us
to better understand broad
socio-economic trends that
could shape future society and
gain access to a wider array
of quantitative information.
We used SSP1 (a low challenge
to mitigation and adaptation
pathway), SSP2 (a medium
challenge to mitigation and
adaptation pathway), SSP5 (a
IRO-1 – Description of the
process to identify and
assess material impacts,
risks and opportunities
The Group completed a DMA which
was carried out in collaboration
with both internal and external
stakeholders. The process involved
the identification of key IROs across
our value chain. This assessment
spanned short, medium and long-
term time horizons, evaluating
both impact materiality, the
effects of the Group’s activities on
society and the environment and
financial materiality, examining how
sustainability factors could influence
the Group’s financial performance.
The Group’s DMA methodology
aligns with CSRD and ESRS
requirements. This process was
supported by third-party experts
and included a detailed, multi-step
approach:
1. Scoping
The scope of the assessment
included, but was not limited
to, a review of the Group’s
operational segments,
encompassing upstream
and downstream activities,
geographical reach and key
suppliers. Internal business
knowledge and external
expertise was utilised to ensure
an evaluation of impacts.
2. Identification
A list of actual and potential
IROs was developed through
desktop research, peer
benchmarking, internal
consultations with subject
matter experts and input
from external experts. This
assessment considered both the
actual and potential impacts of
the Group’s business on society
and the environment (impact
materiality), as well as how
sustainability matters could
potentially affect the Group’s
financial performance and
position (financial materiality).
Additionally, publicly available
tools were used to assess
environmental risks. Each
identified IRO was mapped to
ESRS topical standards.
For impacts, the Group
assessed materiality based
on criteria of severity and
likelihood, with thresholds set
accordingly. This assessment
considers activities, business
relationships and geographies
where adverse impacts may be
more likely, factoring in resource
dependencies, regulatory
variations and market conditions
that influence risk exposure.
Severity is determined by the
scale, scope and irremediable
nature of negative impacts, as
well as the scale and scope of
positive impacts. In contrast,
the financial materiality of risks
and opportunities is assessed
using thresholds based on the
anticipated financial effects and
likelihood of occurrence. This
dual approach ensures that both
the societal and environmental
impacts, as well as financial
risks and opportunities, are
appropriately evaluated
and prioritised for reporting
purposes. This structured rating
system is aligned with ESRS
guidelines.
3. Engagement
The Group engaged with over
50 stakeholders from a range
of groups, including executives,
customers, employees, NGOs
and regulatory bodies, through
surveys and interviews.
Also, input from NGOs and
community organisations
served as a valuable proxy to
capture societal perspectives.
This broad engagement ensured
the validation of identified
sustainability matters from
both impact and financial
perspectives, helping to prioritise
IROs based on the significance
of their potential societal and
financial impacts.
4. Consolidation
Feedback from stakeholders
was analysed and integrated
into the final DMA. The results
were validated by the Group’s
ESRS topic
Impacts
Risks
Opportunities
Actual
Potential
E1 – Climate change
E2 – Pollution
E3 – Water and marine resources
E4 – Biodiversity and ecosystems
E5 – Resource use and circular economy
S1 – Own Workforce
S2 – Workers in the value chain
S3 – Affected communities
S4 – Consumers and end users
G1 – Business conduct
Materiality Thresholds:
Material
Not Material
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high challenge to mitigation, low
challenge to adaptation) and
three RCP targets: 1.9, 3.4 and
6.0 w/m2 targets (1.3 – 1.4, 2.1 –
2.3 and 3.2-3.3 Co respectively).
During the year, the Group updated
the resilience analysis of its strategy
and business model. This update
incorporated both quantitative
and qualitative analyses, as well
as internal expertise in the building
materials industry and was. Based
on these findings and our assertion
that climate change risks and
opportunities are already integrated
into our strategy, products and
business model, we concluded that
our business model and strategy
are resilient across all SSPs. This
includes the worst-case scenario
of SSP3, which assumes lower
demand for sustainable products,
though insulating buildings will be
mandated in all scenarios. We will
continue to refine our strategic
planning as more detailed tools
on future demand for building
and insulation products become
available. While certain critical
climate related assumptions
used in the Financial Statements
are largely compatible with the
scenarios detailed above, the
impairment tests are broader in
scope, which includes additional
factors such as macro-economic
conditions and market dynamics.
Additionally, the Group did not
identify any assets or business
activities that are incompatible with
or require significant adjustments
to align with the transition to a
climate-neutral economy (see our
disclosure on locked-in emissions
in the Climate change section and
our EU Taxonomy alignment in the
Environmental information section
below).
Topic-Specific Assessment:
E2 – Pollution
The Group comprises several
distinct manufacturing processes,
with a variety of inputs, outputs
and scale, which makes the
process of assessing our pollution-
related IROs at the Group level
complex and challenging. To
tackle this challenge, we utilised
our internal expertise across the
Group’s divisions and engaged a
third-party expert in this field. We
also considered and applied the
established knowledge on this area,
as presented in industry standards
and publications and examined
data including, but not limited
to, raw materials, direct pollutant
measurements and production
volumes. Due to the complexity
and broad coverage of the topic
of pollution and its sub-topics, we
are committed to reassess and
refine our list of material IROs in the
following reporting cycles.
Topic-Specific Assessment:
E3 – Water and marine resources
To identify its water-related IROs,
the Group screened its assets
and activities using various tools,
including water withdrawal and
consumption data collected
across the Group and an external
tool (WRI’s Aqueduct) to help to
identify and evaluate water risks
around the world. We evaluated
our dependencies on water by
conducting a detailed analysis
of our processes to understand
for which of them water is an
integral input. We used data on
water withdrawals as a proxy for
water dependencies and water
consumption as a proxy for water
impacts. In summary, due to
the nature and variety of our
operations and processes, we
do not believe our impacts and
dependencies are material at the
Group level. Similarly, given the
large number and geographical
spread of our facilities, we
concluded that water is not a
material risk at the Group level.
Nevertheless, we will continue to
monitor the situation and if we
identify a priority site (based on
either impacts or dependencies on
water) we will examine developing
site specific, water action plans.
For our upstream value chain, we
used publicly available sectoral
water assessment tools and
leveraged our internal expertise
on the topic. Based on this initial
analysis, we concluded that we do
have material impacts on water
due to the nature of operations
of our key suppliers (i.e. steel
and chemicals). As a next step
we envisage conducting a more
detailed assessment of our key
suppliers related to water and
ecosystem services. The results
will help us to refine our impacts
and dependencies materiality
assessment and aid our teams in
deciding if specific actions need to
be taken to mitigate these impacts.
Topic-Specific Assessment:
E4 – Biodiversity and ecosystems
Biodiversity is location specific; its
state and importance can vary
greatly depending on location. The
Group is a global manufacturer with
273 manufacturing, assembly and
R&D sites and a vast and complex
value chain. To understand, assess
and manage biodiversity related
IROs, we used location specific
data. For our first biodiversity
IRO assessment, we used WWF’s
Biodiversity Risk Filter (BRF) tool
that allowed us to combine location
specific data on the integrity of
biodiversity with corporate data
(e.g. site importance and industry
classification) to gain an initial
understanding of our IROs and
assess the need for prioritising
location(s) for action. BRF covers
both physical and reputational risks
(transition and systemic were not
included), with eight underlying
risk categories and a plethora of
indicators. We used the results of
the analysis to conduct our first,
high-level, biodiversity-specific
materiality analysis.
Based on this initial analysis during
the year, which utilised both the
BRF tool and desktop research, we
concluded that we do not have
sites in biodiversity sensitive areas.
In contrast, we have sites located
near these area types, but the
materiality of their impacts will
need to be investigated further.
Topic-Specific Assessment:
E5 – Resource use and
circular economy
As a global leader in advanced
insulation and building envelope
solutions, the Group recognises
circularity as a critical issue and aims
to help accelerate the transition to
a circular economy. Our material
IROs related to resource use and
circular economy have been
identified via the DMA. As part of
the assessment, we screened our
activities and key manufacturing
processes to understand related
IROs. This screening process included
reference to available data on our
material inflows and outflows,
market trends and regulatory drivers.
This assessment was completed by
the Group Sustainability team who
engaged with divisional sustainability
teams and procurement leads for
relevant input and utilised internal
expertise on these topics to assist
in the determination of double
materiality. For the assessment of
the IROs related to our material
inflows, 2023 raw material volumes
and spend data was reviewed. This
dataset is collated from divisional
procurement and finance teams
during and at the end of the year,
respectively. Material outflows,
products and waste were assessed.
Our waste data is collected at site
level, monthly, in our environmental
data collection system. Assessing
product alignment was completed
through review of product literature
including, but not limited to,
environmental product declarations
and consultations with internal
stakeholders.
IRO-2 – Disclosure
requirements in
ESRS covered by
the undertaking’s
sustainability statement
The Group’s DMA process, as defined
in section IRO-1, serves as the
foundation for determining material
information to be included regarding
the relevant IROs.
The tables in Appendix 1 list all the
ESRS disclosure requirements in
ESRS 2 and the 10 topical standards
that are material to the Group,
guiding the preparation of our
Statement. These tables also
indicate where information related
to specific disclosure requirements,
located outside the Statement,
is incorporated by reference to
sections such as Our Business
Model and Strategy, Financial
Statements, or the Report of the
Remuneration Committee within
this Annual Report.
The table in Appendix 4 includes all
the data points derived from other
EU legislation, as listed in ESRS 2
Appendix B, indicating where these
data points can be found in our
report and which are assessed as
not relevant.
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EU TAXONOMY
DISCLOSURE
General
Our mission is to accelerate a net
zero emissions built environment
with people and planet at its heart.
Our business model built around five
key operating divisions - Insulated
Panels, Insulation, Data Solutions,
Light, Air + Water and Roofing +
Waterproofing. These divisions
deliver integrated building envelope
solutions that enhance energy
efficiency and reduce GHG emissions
in both new-build and refurbishment
projects. By replacing outdated,
inefficient construction methods
with innovative, high-performance
solutions, we align with global
sustainability goals and contribute
to climate change mitigation. The
Group is reporting pursuant to Article
8 of Regulation (EU) 2020/852 on
the EU Taxonomy.
Eligible and Aligned Screening
Process
The Group applies a structured
screening process to assess
alignment with the EU Taxonomy
framework, referencing the Climate
Delegated Act (EU 2021/2139),
the Complementary Climate
Delegated Act (EU 2022/1214), the
Environmental Delegated Act (EU
2023/2486) and the amendments
to the Climate Delegated Act (EU
2023/2485).
To determine taxonomy-eligible
activities, we assessed our
economic activities across the
151 taxonomy-eligible activities
outlined in Annex I and II of the
Climate Delegated Act, identifying
those that contribute to one or
more of the six environmental
objectives. Our primary eligible
activity, ‘Manufacture of energy
efficiency equipment for buildings’
(CCM 3.5), was identified based
on its role in enhancing energy
efficiency and reducing carbon
emissions in the built environment.
To ensure compliance with the
Technical Screening Criteria (TSC),
we conducted a detailed assessment
of our aligned activities against
the substantial contribution
requirements set out in Annex I.
This included evaluating product
performance, energy efficiency
thresholds and alignment with
regulatory standards that contribute
to climate change mitigation.
Additionally, we assessed our
operations against Do No Significant
Harm (DNSH) criteria to confirm
that our activities do not adversely
impact other environmental
objectives. The assessment process
also included reviewing governance
and social safeguards to ensure
compliance with minimum
safeguards under Article 18 of the EU
Taxonomy Regulation.
Technical Screening
The Group primarily aligns with
Activity CCM 3.5 – Manufacture
of energy efficiency equipment
for buildings, under the Climate
Change Mitigation objective.
Our insulation and building
envelope solutions enable
significant reductions in energy
consumption and GHG emissions,
supporting the transition to a
low-carbon future. In line with
Regulation (EU) 2020/852,
Article 3, an economic activity
qualifies as taxonomy-aligned if
it substantially contributes to one
or more environmental objectives,
does no significant harm to the
remaining objectives and meets
minimum safeguards for social and
governance standards. The Group’s
taxonomy-aligned activities have
been assessed against Annex I of
the Climate Delegated Act. We
note, certain acquisitions are going
through the onboarding process in
relation to the technical screening
assessment.
Double counting
Reporting to one eligible activity
(CCM 3.5) and excluding
intercompany sales ensures double
counting is avoided from a revenue
KPI perspective. The opex KPI
relates to day-to-day expenditure
and the capex KPI relates to larger
expansion/improvement projects
and/or capacity additions ensuring
double counting is avoided.
Taxonomy-Eligible and Aligned
Turnover
Taxonomy-aligned and/or eligible
turnover is derived from Activity
CCM 3.5 – Manufacture of energy
efficiency equipment for buildings
and from a reporting basis is
consistent with the Group’s revenue
recognition policy outlined in Note
1 to the financial statements. The
denominator reflects total Group
revenue. The numerator represents
the total eligible and aligned
revenue activities derived from the
sale of energy efficient building
envelope solutions.
Taxonomy-Eligible and Aligned
Capex
The numerator for the taxonomy-
aligned and/or eligible capex
KPI, includes expenditure on the
expansion, establishment or
improvement of taxonomy-eligible/
aligned assets. The denominator
consists of all additions to tangible
and intangible assets before
depreciation, amortisation and
remeasurements, excluding fair
value changes. This includes costs
accounted for under relevant
IFRS standards, including IAS 16
Property, Plant & Equipment,
IAS 38 Intangible Assets, IAS
40 Investment Property, IAS 41
Agriculture and IFRS 16 Leases.
There are no capex plans to
specifically extend taxonomy
alignment.
Taxonomy-Eligible and Aligned
Opex
The opex KPI denominator is
defined as direct non-capitalised
costs relating to research and
development, renovation measures,
short-term leases, maintenance
and other direct expenditures
relating to the day-to-day
servicing of the Group’s assets of
property, plant and equipment
that are necessary to ensure the
continued and effective use of
such assets. The opex numerator
includes expenditure within the
above defined boundary that
supports eligible and/or aligned
revenue under Activity CCM 3.5 –
CSRD SUSTAINABILITY
STATEMENT
ENVIRONMENTAL
INFORMATION
Pascal Probst
Headquarters
Burgberg, Germany
Insulated Panels
JI SF Wall 1000 panel
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of our manufactured products by
collaborating with a third-party
with expertise in the chemical
industry. Based on this assessment,
it is determined that the Group’s
manufacturing activities do not
use or produce any substances
listed in the regulation under the
points (a) to (d) of the Appendix
C: Generic Criteria for DNSH to
pollution prevention and control
regarding use and presence of
chemicals. Regarding REACH
regulation, all substances used by
the Group are either not restricted
under EC 1907/2006 Annex XVII or
are used in full compliance with the
specified conditions in that Annex.
For more information see Pollution
prevention and control.
Protection and restoration of
biodiversity and ecosystems
Directive 2011/92/EU outlines (in
Annexes I and II) project categories
that are likely to have a significant
effect on the environment. Projects
listed in Annex I are those that
have significant effects on the
environment, whereas projects
listed in Annex II do not necessarily
have significant effects on the
environment in every case. The
Group does not own or operate
projects (i.e. sites) listed in Annex
I. Only four of the Group’s sites
(1.5%) are listed in Annex II. For
the latter, either an Environmental
Impact Assessment (EIA) or
screening has been completed and
the required mitigation measures
– where applicable – for protecting
the environment has been
implemented.
Due to the location of our
activities, the nature of our
impacts and our proactive
management approach, we
maintain that we do not have
any significant effects on the
conservation objectives of
biodiversity-sensitive areas.
Minimum Safeguards
The Group ensures compliance with
the Minimum Safeguards under the
EU Taxonomy by aligning its policies
and practices with key international
frameworks, including the OECD
Guidelines for Multinational
Enterprises, the UN Guiding
Principles on Business and Human
Rights, the ILO Declaration on
Fundamental Principles and Rights
at Work and the International Bill
of Human Rights.
Our approach focuses on nine
key areas, which include, Human
Rights Policies, Human Rights
Due Diligence, Addressing Human
Rights Impacts and Tracking
Effectiveness, Human Rights
Communications, Grievance
Mechanisms, Consumer Interests,
Anti-Corruption, Fair Competition
and Taxation. Through our Human
Rights Policy and Supplier Human
Rights and Environmental Due
Diligence (SHREDD) Policy, we
uphold human rights across our
operations and supply chains,
addressing forced labour, non-
discrimination and supporting
collective bargaining rights.
We also maintain a zero-tolerance
approach to fraud, bribery and
corruption through our Anti-Fraud,
Bribery & Corruption Policy. The
Group Code of Conduct reinforces
this commitment by including a
confidential independent hotline
policy, supported by a secure and
anonymous channel to report
concerns. The SHREDD process
assesses supplier risks, implements
corrective action plans and
ensures ongoing alignment with
international standards.
Governance and transparency
underpin our approach, with
confidential reporting mechanisms
and annual reviews to monitor
and improve compliance. By
embedding robust policies and
fostering accountability, the Group
demonstrates its commitment to
human rights, labour standards
and ethical governance across its
value chain.
Manufacture of energy efficiency
equipment for buildings.
Do No Significant Harm (DNSH)
Climate change adaptation
To identify physical climate risks that
might be material to our activities,
we performed a physical climate
risk assessment. The assessment
was performed using a third-party
platform that supports companies to
identify and measure climate risk. It
models eight different hazards over
the next 80 years for several emission
scenarios. Based on the results of the
analysis and the materiality of the
identified physical climate risks, we
concluded that the implementation
of adaptation solutions was not
warranted for our activities. Hence,
we have not adversely affected the
adaptation efforts of other people,
of nature, of cultural heritage,
of assets or of other economics
activities via adaptation solutions
or plans.
Sustainable use and protection
of water and marine resources
Due to the nature of our activities,
including the variance in both size
and location of our operations, our
impacts and dependency on water
vary across our Group. For example,
the majority of our sites withdraw
less than 10,000 m3 of water per
year (categorised as very low) and
are therefore not water intensive.
As part of our DMA, we identified
and analysed environmental
degradation risks related to both
water stress and water quality
using third-party tools and internal
expertise. Regarding water stress,
29% of our sites (manufacturing,
assembly and R&D) are located
in areas of high or extremely
high-water stress. These facilities
represent 9% of our water
withdrawals.
We assessed water quality for sites
with water withdrawals exceeding
10,000 m3 per year as we believe
that there is a clear correlation
between water withdrawal volumes
and impacts/risks related to water
quality. The results showed that
none of the examined sites have
high (or very high) operational risks
related to water quality.
Based on the above and our
overall water profile, we did not
identify any priority sites for the
implementation of water use and
protection management plans
during the reporting year.
Pollution prevention and control
The Group has collaborated with
a third-party with expertise in the
chemical industry and, based on
this assessment, it is determined
that the Group meets the current
criteria for DNSH as at the end of
2024. Based on this assessment,
the Group’s manufacturing
activities do not use or produce any
substances listed in the Climate
Delegated Act (EU 2021/2139),
under the points (a) to (d) of
the Appendix C: Generic Criteria
for DNSH to pollution prevention
and control regarding use and
presence of chemicals. Regarding
REACH (Registration, Evaluation,
Authorisation and Restriction of
Chemicals) Regulation, substances
used by the Group are either not
restricted by EC 1907/2006 Annex
XVII or are used in full compliance
with the conditions specified in
that Annex.
This applies to both formaldehyde
and methylene diphenyl
diisocyanate (MDI). Formaldehyde
is classified as CMR (Carcinogenic,
Mutagenic, or Reprotoxic) and
its emissions are in the process
of being restricted in consumer
products, whereas industrial
products are covered by worker
protection rules. There are exposure
limits for workers set at an EU level.
Formaldehyde is a building block for
phenolic resins which are purchased
for use in the manufacture of
phenolic foam insulation. In
the final product there is very
little residual formaldehyde left
and hazard thresholds are not
knowingly breached. Similarly,
MDI is used as a building block
for the polyurethane (PU) and
polyisocyanurate (PIR) used in
the manufacture of PU/PIR foam
insulation. Again, the residual
presence of MDI is minimal,
ensuring that the requirements of
Appendix C points (e) and (f) are
satisfied in that case as well.
The Group’s products meet the
requirements of EC 1907/2006
Annex XVII with respect to
microplastics, since they are
either used in industrial settings
or incapsulated in final products
and therefore meet the stated
exemption requirements.
Transition to a circular economy
The Group has assessed
information related to the use of
secondary recycled raw materials
and reused components in the
Group’s manufactured products by
reviewing and reporting data on
key raw materials collected at the
group level and through divisional
sustainability engagement
initiatives. The Group has also set
a new target, under the Planet
Passionate programme, to increase
the use of renewable and recycled
raw materials in the manufacturing
of its products.
The Group continues to assess
and increase adoption of circular
design best practices through
multi-disciplinary collaboration and
innovation. This includes supporting
product design for high durability,
recyclability, ease of disassembly
and adaptability by working in
collaboration with divisional teams.
The majority of the Group’s core
product portfolio is designed to be
highly durable and long lasting.
The Group has also undertaken
multiple initiatives to evaluate
and improve waste management
systems which have helped identify
opportunities for recycling of our
waste and highlight areas for
improvement in our manufacturing
processes. We continue to divert
waste from landfill, driven by
our zero waste to landfill by
2030 target, which has been a
fundamental pillar of our Planet
Passionate programme since 2020.
The Group has begun the
assessment of the availability
of information on substances of
concern throughout the lifecycle
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Revenue
Financial year 2024
Substantial contribution criteria
DNSH criteria
Economic
Activities
Codes
Absolute turnover (€m)
Proportion of turnover (%)
Climate change mitigation (%)
Climate change adaptation (%)
Water and marine resources (%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems (%)
Climate change mitigation (Y/N)
Climate change adaptation (Y/N)
Water and marine resources (Y/N)
Circular economy (Y/N)
Pollution (Y/N)
Biodiversity and ecosystems (Y/N)
Minimum safeguards (Y/N)
Taxonomy-aligned proportion of turnover 2024 (%)
Taxonomy-aligned proportion of turnover 2023 (%)
Category Enabling activity (E)
Category Transitional activity (T)
A. Taxonomy-Eligible Activities
A.1. Environmentally Sustainable Activities (taxonomy-aligned)
Manufacture of
energy efficiency
equipment for
buildings
CCM
3.5
3,466
40%
Y
N
N
N
N
N
Y
Y
Y
Y
Y
Y
Y
40%
42%
E
-
Turnover of
environmentally
sustainable
activities
(taxonomy-
aligned) (A.1)
3,466
40%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
40%
42%
Of which
enabling
3,466
40%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
40%
42%
E
Of which
transitional
0
0%
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL;N/
EL
EL;N/
EL
EL;N/EL
EL;N/EL
EL;N/
EL
EL;N/
EL
%
%
Manufacture of
energy efficiency
equipment for
buildings
CCM
3.5
1,674
20%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
20%
16%
Turnover of
taxonomy-
eligible but not
environmentally
sustainable
activities (not
taxonomy-
aligned) (A.2)
1,674
20%
100%
0%
0%
0%
0%
0%
20%
16%
Turnover of
taxonomy-
eligible activities
(A1 + A.2)
5,140
60%
100%
0%
0%
0%
0%
0%
60%
58%
B. Taxonomy-non-eligible activities
Revenue of
Taxonomy-non-
eligible activities
3,468
40%
Total
8,608
100%
Capex
Financial year 2024
Substantial contribution criteria
DNSH criteria
Economic
Activities
Codes
Absolute Capex (€m)
Proportion of Capex (%)
Climate change mitigation (%)
Climate change adaptation (%)
Water and marine resources (%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems (%)
Climate change mitigation (Y/N)
Climate change adaptation (Y/N)
Water and marine resources (Y/N)
Circular economy (Y/N)
Pollution (Y/N)
Biodiversity and ecosystems (Y/N)
Minimum safeguards (Y/N)
Taxonomy-aligned proportion of Capex 2024 (%)
Taxonomy-aligned proportion of Capex 2023 (%)
Category Enabling activity (E)
Category Transitional activity (T)
A. Taxonomy-Eligible Activities
A.1. Environmentally Sustainable Activities (taxonomy-aligned)
Manufacture of
energy efficiency
equipment for
buildings
CCM
3.5
140
38%
Y
N
N
N
N
N
Y
Y
Y
Y
Y
Y
Y
38%
39%
E
-
Capex of
environmentally
sustainable
activities
(taxonomy-
aligned) (A.1)
140
38%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
38%
39%
Of which
enabling
140
38%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
38%
39%
E
Of which
transitional
0
0%
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL;N/
EL
EL;N/
EL
EL;N/EL
EL;N/EL
EL;N/
EL
EL;N/
EL
%
%
Manufacture of
energy efficiency
equipment for
buildings
CCM
3.5
123
34%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
34%
14%
Capex of
taxonomy-
eligible but not
environmentally
sustainable
activities (not
taxonomy-
aligned) (A.2)
123
34%
100%
0%
0%
0%
0%
0%
34%
14%
Capex of
taxonomy-
eligible activities
(A1 + A.2)
263
72%
100%
0%
0%
0%
0%
0%
72%
53%
B. Taxonomy-non-eligible activities
Capex of
Taxonomy-non-
eligible activities
104
28%
Total
366
100%
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Opex
Financial year 2024
Substantial contribution criteria
DNSH criteria
Economic
Activities
Codes
Absolute Opex (€m)
Proportion of Opex (%)
Climate change mitigation (%)
Climate change adaptation (%)
Water and marine resources (%)
Circular economy (%)
Pollution (%)
Biodiversity and ecosystems (%)
Climate change mitigation (Y/N)
Climate change adaptation (Y/N)
Water and marine resources (Y/N)
Circular economy (Y/N)
Pollution (Y/N)
Biodiversity and ecosystems (Y/N)
Minimum safeguards (Y/N)
Taxonomy-aligned proportion of Opex 2024 (%)
Taxonomy-aligned proportion of Opex 2023 (%)
Category Enabling activity (E)
Category Transitional activity (T)
A. Taxonomy-Eligible Activities
A.1. Environmentally Sustainable Activities (taxonomy-aligned)
Manufacture of
energy efficiency
equipment for
buildings
CCM
3.5
565
41%
Y
N
N
N
N
N
Y
Y
Y
Y
Y
Y
Y
41%
67%
E
-
Opex of
environmentally
sustainable
activities
(taxonomy-
aligned) (A.1)
565
41%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
41%
67%
Of which
enabling
565
41%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
41%
67%
E
Of which
transitional
0
0%
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL;N/
EL
EL;N/
EL
EL;N/EL
EL;N/EL
EL;N/
EL
EL;N/
EL
%
%
Manufacture of
energy efficiency
equipment for
buildings
CCM
3.5
136
10%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
10%
6%
Opex of
taxonomy-
eligible but not
environmentally
sustainable
activities (not
taxonomy-
aligned) (A.2)
136
10%
100%
0%
0%
0%
0%
0%
10%
6%
Opex of
taxonomy-
eligible activities
(A1 + A.2)
701
51%
100%
0%
0%
0%
0%
0%
51%
73%
B. Taxonomy-non-eligible activities
Opex of
Taxonomy-non-
eligible activities
664
49%
Total
1,365
100%
Notes: EL; N/EL: “EL” denotes that the activity is taxonomy-eligible, meaning it falls under the EU Taxonomy’s defined economic
activities. “N/EL” indicates that the activity is not taxonomy-eligible, as it does not meet the eligibility criteria outlined in the regulation
for substantial contribution to environmental objectives.
ESRS E1
- CLIMATE CHANGE
ESRS 2 – SBM-3
As climate change intensifies,
it presents an urgent and
multifaceted challenge. While
the Paris Agreement underscores
the pressing need for immediate
measures to limit global
temperature increase at 1.5°C
above pre-industrial levels (which
was surpassed for the first time
in 2024), the journey towards
achieving a net zero world will
not take the trajectory originally
anticipated. Buildings and
construction are responsible for
37%1 of energy-related carbon
dioxide emissions globally,
a fact that highlights the
importance of the sector in the
transition to a net zero emission
pathway. We are uniquely
placed to help support the
decarbonisation of the building
sector via our extensive offering of
high-performance, energy saving
systems and solutions.
Through the DMA, we identified our
material IROs pertaining to climate
change, which are presented in
more detail in this section.
The Group’s business strategy
is built around the importance
of addressing climate change
through the built environment. The
Group’s product portfolio consists
of products which have a positive
impact on resource efficiency,
particularly in relation to in-use
energy and carbon saving benefits
(see impacts below). The embodied
carbon of our insulation products
is not material relative to their
estimated lifetime carbon savings.
While our insulation systems
enable significant energy and
carbon savings in the operation
of buildings, the Group recognises
the importance of working
with key suppliers on emission
reduction activities to reduce the
embodied carbon of our products
(see impacts below). We believe
it is imperative that we continue
to demonstrate leadership on
the climate change agenda. As
an industry leader, we take our
position on climate action very
seriously and have set ourselves
ambitious targets with respect
to our own GHG emissions (see
impacts below and disclosure E1-6
for how we assess and measure our
total GHG emissions). The results
of our use of scenario analysis to
assess the resilience of our business
model and strategy in relation to
climate change can be found in
section ESRS 2, IRO-1.
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
impact – actual
Value chain
stage:
Downstream
Reduced
energy used
via insulation
products &
solutions
Consumers can reduce energy
usage and costs by better
insulating their buildings
(reducing usage) or through
installing other insulation
products. In this respect the
Group is indirectly contributing to
reduced energy usage and CO2e
emissions downstream.
»
Product offering: The Group
offers market leading products,
particularly in the field of
building insulation. The Group’s
high-performance insulation
solutions help architects and
building owners design buildings
that consume less energy for
the long-term.
»
Innovation strategy:
Decarbonisation of our product
portfolio is a key focus area
for innovation. We aim to
achieve this through two main
strategies: refining existing
products with lower carbon
alternatives and exploring
new bio-based materials and
solutions. Such innovations
ensure our products and
systems help our end users to
meet the need to reduce the
carbon footprint of the built
environment.
1 United Nations Environment Programme, & Yale Center for Ecosystems + Architecture (2023). Building Materials and the
Climate: Constructing a New Future .
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IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Negative
impact – actual
Value chain
stage: Own
operations
GHG from
operations
The Group is an industry leader in
manufacturing products which
help mitigate climate risk in the
construction sector. We take this
leadership position very seriously
and have set ourselves industry
leading targets with respect to
our direct carbon emissions. The
Group already has an extensive
environmental sustainability
programme, Planet Passionate,
which has set ambitious direct
renewable energy (60% by
2030) and GHG emissions
reduction targets. In 2024, the
Group achieved its 20% on-site
renewable energy generation
target. This programme serves us
well in mitigating the risk of an
increased cost of operations.
»
Decarbonisation plan: The
Group developed a transition
plan (the Plan) for climate
change mitigation. The Plan
comprises mitigation levers for
scope 1, 2 and 3 GHG emissions
and is underpinned by our
carbon targets, which are
set out as part of the Planet
Passionate programme.
»
Product offering: In recent
years, the Group took
significant steps forward in the
development of lower embodied
carbon (LEC) alternatives across
our portfolios (e.g. QuadCore
LEC® insulated panel, RMG600+
and Tate Grid+ LEC). In addition,
PowerPanel®, a fully integrated
insulated panel with solar
technology is another solution
that embodies the future of
sustainable construction.
Type: Negative
impact – actual
Value chain
stage:
Upstream &
downstream
GHG from our
value chain
(scope 3 GHG
emissions)
The Group relies on the
procurement of raw materials
to manufacture its products.
These raw materials include steel
and chemicals - the embodied
carbon of these products can be
considered moderate to high. The
vast majority of the Group’s total
carbon footprint derives from the
procurement of these materials.
Type: Positive
impact –
potential
Time horizon:
Medium/long-
term
Value chain
stage: Upstream
Reduced
embodied
carbon of key
raw materials we
procure
The Group actively collaborates
with its suppliers to assist them in
reducing their embodied carbon,
resulting in productive partnerships
that aim for a significant 15%
reduction in product CO2e intensity
from primary supply partners by
2030, as documented in our Planet
Passionate report.
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
impact –
potential
Time horizon:
Medium/long-
term
Value chain
stage:
Downstream
New, lower
emission
products
Innovation in the form of new
Group products provides customers
with superior products and added
value. It may also aid customers in
lowering their GHG emissions.
»
Product offering: In recent
years, the Group took significant
steps forward in the development
of lower embodied carbon (LEC)
alternatives across our portfolios
(e.g. QuadCore LEC® insulated
panel, RMG600+ and Tate Grid+
LEC). In addition, PowerPanel®,
a fully integrated insulated panel
with solar technology is another
solution that embodies the future
of sustainable construction.
»
Innovation strategy:
Decarbonisation of our product
portfolio is a key focus area for
innovation. We aim to achieve
this through two main strategies:
refining existing products with
lower carbon alternatives
and exploring new bio-based
materials and solutions. Such
innovations ensure our products
and systems help our end users
to meet the need to reduce the
carbon footprint of the built
environment.
Type: Positive
impact –
potential
Time horizon:
Short-term
Value chain
stage:
Downstream
Solar panels
- consumer
benefits
By installing PowerPanel®,
consumers can experience
multiple positive impacts
including diversifying their energy
sources to reduce dependency on
the grid, decreasing their GHG
emissions and potentially saving
money on energy bills, particularly
if costs of other heating power
sources continue to rise.
Type: Risk/
transitional
(market)
Time Horizon:
Medium-term
Derives from:
Other (market)
Changing
customer
behaviour
Failure to reduce the embodied
carbon of our products may lead
to deselection by the market.
»
Innovation strategy:
Decarbonisation of our product
portfolio is a key focus area for
innovation. We aim to achieve
this through two main strategies:
refining existing products with
lower carbon alternatives
and exploring new bio-based
materials and solutions. Such
innovations ensure our products
and systems help our end users
to meet the need to reduce the
carbon footprint of the built
environment.
Type: Risk/
transitional
(market)
Horizon:
Medium-term
Derives from:
Other (market)
Substitution of
existing products
and services with
lower emission
options
If the Group does not continue
to develop industry leading
high-performance, low carbon
insulation technologies, there is a
risk that our existing products are
substituted by competitors.
Type: Risk/
transitional
(regulation)
Time Horizon:
Medium-term
Derives from:
Dependencies
Carbon price
mechanisms
If our key suppliers fail to
decarbonise in line with the latest
climate science there is a risk they
will pass through their increased
cost to their customers.
»
Decarbonisation plan: The Plan
for climate change mitigation.
The Plan comprises mitigation
levers for scope 1, 2 and 3 GHG
emissions and is underpinned
by our carbon targets, which
are set out as part of the Planet
Passionate programme. For more
information, see the relevant
transition plan section below.
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IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type:
Opportunity
Time Horizon:
Short-term
Derives from:
Other (market)
Use of public
sector incentives
In October 2020, the EU adopted
the strategic communication
on the Renovation Wave which
contains an action plan aiming
to at least double the annual
energy renovation rate of buildings
by 2030 and to foster deep
renovations. A key facet within the
renovation wave is to improve the
energy efficiency of the building
envelope. The Group’s high-
performance insulation products
are ideally suited for renovation
given that dimension can be a key
constraint in refurbishment.
»
Product offering: In recent
years, the Group have taken
significant steps forward in the
development of lower embodied
carbon (LEC) alternatives across
our portfolios (e.g. QuadCore
LEC® insulated panel, RMG600+
and Tate Grid+ LEC). In addition,
PowerPanel®, a fully integrated
insulated panel with solar
technology is another solution
that embodies the future of
sustainable construction.
»
Innovation strategy:
Decarbonisation of our product
portfolio is a key focus area for
innovation. We aim to achieve
this through two main strategies:
refining existing products with
lower carbon alternatives
and exploring new bio-based
materials and solutions. Such
innovations ensure our products
and systems help our end users
to meet the need to reduce the
carbon footprint of the built
environment.
Type:
Opportunity
Time Horizon:
Short-term
Derives from:
Other
(products &
services)
Development of
new products
or services
through R&D and
innovation
Innovation is a key facet to
our strategy. Should the Group
innovate an energy efficient
product with substantially superior
carbon saving performance to
alternatives, it could accelerate
share gains from traditional
insulation.
Type:
Opportunity
Time Horizon:
Short-term
Derives from:
Other
(products &
services)
Development
of climate
adaptation,
resilience and
insurance risk
solutions
The EU is expected to include the
carbon emissions from buildings
in the next phase of its Emissions
Trading Scheme (ETS II). This will
support the demand for high-
performance building envelope
products as they help to lower the
heating and cooling needs of a
building.
Type:
Opportunity
Time Horizon:
Medium-term
Derives from:
Other (market)
Shift in
consumer
preferences
A significant proportion of
a building’s embodied and
operational carbon impact comes
from how the building has been
designed and the materials used.
Based on this, we have seen
increased interest and engagement
from top-tier customers seeking
to develop strategic partnerships
with key suppliers, enabling them
to develop lower embodied carbon,
net zero energy buildings. The
Group regards this as a significant
opportunity to strengthen its
relationships with key customers
who have similar strategic
decarbonisation goals.
Our mission is to help accelerate
a net zero emissions built
environment with people and
planet at its heart. Our strategy is
to be the global leader in innovative
building envelope solutions which
reduce the resource consumption
of buildings, lowering their long-
term running costs and their
environmental impacts.
Climate change risks and
opportunities are deeply embedded
in our strategy, R&D investment,
products and business model.
We have clear plans and actions
in place to address our impacts,
manage our risks and pursue our
opportunities.
Innovation as a key lever to
manage our material IROs
The Group strives to be the market
leader with the most advanced
solutions. We target to invest
approximately 1% of revenue
annually in R&D and digital
transformation which gives us
significant scale in innovation
versus our peers. The Group’s
innovation efforts has led to
breakthrough products such as
QuadCore®, AlphaCore®, Optim-R®
and Kooltherm®. QuadCore® is an
insulated panel technology which
is almost 20% more thermally
efficient than a traditional PUR
(polyurethane) core panel.
Kooltherm® is an insulation board
technology which is almost twice
as efficient as traditional stonewool
type insulation, while Optim-R® is
a high-performance rigid vacuum
insulation panel (VIP) with a
declared thermal conductivity of
just 0.007 W/mK, offering even
greater insulating performance than
commonly used insulation materials.
These innovative products and
future innovative products, such
as QuadCore LEC®, will continue
to differentiate the Group from
our competitors and help to drive
adoption of advanced materials to
reduce the energy consumption of
buildings. The Group continues to
invest in R&D to create technologies
which combat climate change and
we expect innovation to increment
revenue in the future.
Supplier engagement is an
integral part of our strategy
The Group has made two public
commitments to reduce scope 3
GHG emissions, for more details see
pages 186-188. Supplier engagement
is generally prioritised based on size
of expenditure with focus on key raw
material suppliers. Procurement and
sustainability teams work closely with
our key suppliers on decarbonisation
strategy and product development.
An example of the Group’s intent to
make meaningful progress towards
this goal is its active engagement
with suppliers on an ongoing basis to
obtain data and project updates. The
Group monitors key suppliers’ carbon
emissions performance annually,
where available, to map progression
against its targets and engages to
improve availability of supplier and
product specific emissions data.
Engagement to date has included
site visits, meetings, conference calls,
electronic communications between
procurement and sustainability
functions and testing/development
of alternative materials.
Our business model and strategic
pillars, detailed in section ESRS
2, SBM-1, outline our ongoing
conversion strategy to high-
performance building envelopes
from outdated, inefficient methods
of construction. Scenario analysis
plays a critical role in evaluating the
resilience of our business model and
strategy over the short, medium
and long-term, enabling us to
adapt to climate related risks and
opportunities, such as emerging
regulations, changing customer
preferences and the physical impacts
of climate change. The following
highlights illustrate our ability to
adapt and maintain our resilience:
»
Securing Access to Finance: In
alignment with our sustainability
strategy, we have established
a Green Finance Framework to
issue financial instruments such
as bonds and loans, enabling us
to finance and refinance projects
that support the transition to a
low carbon and climate resilient
economy. This ensures continued
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type:
Opportunity
Time Horizon:
Medium-term
Derives from:
Other (market)
Expansion into
new markets
The Group recently invested in
additional manufacturing facilities
in new territories. Over time, the
Group will help to develop these
markets and to educate building
owners and regulators on the
benefits of high-performance
insulation and thermally efficient
building envelopes.
»
Strategic pillar – Global:
The Group aims to continue
expanding globally to bring high-
performance building envelope
solutions to markets which are at
an earlier stage in their evolution
to sustainable and efficient
methods of construction.
»
Strategic pillar – Completing
the Envelope: The Group’s
strategy of Completing the
Envelope aims to take our
innovation and sustainability
DNA and apply them to a wider
portfolio of products which are
complementary to our current
offering.
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access to affordable capital
to drive innovation, reduce
embodied carbon and improve
operational efficiency.
»
Redeploying, Upgrading, or
Decommissioning Assets:
The Group is committed to
reducing emissions across
its operations, with scope 1
and 2 GHG emissions in 2024
accounting for less than 5%
of our total GHG footprint. To
ensure continued progress, we
have set a 1.5°C aligned absolute
reduction target for scope 1 and
2 emissions.
»
Shifting Products and
Services Portfolio: We have
seen increased engagement
from top-tier customers
seeking strategic partnerships
to develop lower embodied
carbon, net zero energy
buildings. Scenario analysis
has informed decisions to
prioritise innovative, sustainable
product solutions, such as
high-performance insulation
and low carbon materials.
This focus not only ensures our
portfolio evolves in alignment
with market needs but also
strengthens relationships
with customers who share our
decarbonisation goals, securing
the Group’s position as a leader
in sustainable building solutions.
»
Reskilling the Workforce:
Our people are central to
the success of all four of our
strategic pillars: Innovation,
Planet Passionate, Completing
the Envelope and Global. By
fostering an agile, innovative
and skilled workforce, we ensure
our employees are equipped to
support the transition to a low
carbon economy and drive our
long-term strategic goals. See
section S1-4 Actions for more
details on the Group’s training
and development programmes.
E1-1 – Transition plan
for climate change
mitigation, E1-3 – Actions
and E1-4 – Targets
The Plan is managed through our
Planet Passionate environmental
sustainability programme (the
Programme), which is underpinned
by our GHG reduction targets.
Aligned with our climate IROs,
the Plan is deeply integrated into
our strategy, R&D investments,
products and business model.
The Plan has been approved by
our CEO, who is the most senior
person responsible for sustainability
related issues.
Following on from our Net Zero
Energy programme, the Group
launched the Planet Passionate
programme at the end of 2019,
setting ambitious targets across
four key themes: Carbon, Energy,
Circularity and Water. Our targets
included absolute reductions in
scope 1, 2 and 3 GHG emissions, in
line with a 1.5°C trajectory. By the
end of 2024, we have achieved an
80% reduction in scope 1 & 2 GHG
emissions from a 2020 base year
(61% including acquisitions), against
a 90% target. We have also achieved
a 14% reduction in scope 3 GHG
emissions, over the same period.
In line with our strategic pillars of
Globalisation and Completing the
Envelope, our global manufacturing
footprint has more than doubled
since 2020. This expansion (both
organic growth and acquisitions)
has contributed to >300% increase
in energy use and a 100% increase in
baseline (i.e. 2020) GHG emissions.
To align with this growth, for the
period 2025–2030, we have updated
our Plan and our scope 1 & 2 GHG
emissions reduction target from
90% to 65%, including acquisitions
to date and further potential
growth. Our updated target is
projected to achieve an additional
197,000 tCO2e reduction by 2030,
beyond the original commitment.
Further information on our updated
targets and progress to date is
outlined in section E1-4 below.
TRANSITION PLAN
100%
80%
60%
40%
20%
0%
2020 Scope 1 & 2 Scope 3 2024 Potential Scope 1 & 2 Scope 3 2030
Achieved Achieved
Organic Reduction Reduction
Reduction Reduction Growth Projects Projects
Scope 3
Scope 1 & 2
Scope 1 and 2 GHG emissions
#
Target name
Base
year
Base year
emissions
Target
year
Scope
2024
emissions
Progress
to date
1
65% absolute
reduction – scope
1 and scope 2
emissions
2020
870,482
tCO2e
2030
1, 2
337,837
tCO2e
61%
reduction
Target context and additional information
Overview: We have set a 65% absolute scope 1 and 2 GHG emissions reduction target by 2030, from a 2020
base year. This target is science based, developed based on the absolute contraction approach, compatible
with limiting global warming to 1.5°C, but not externally assured. Due to significant growth since the inception
of the Planet Passionate programme, our externally verified scope 1 and 2 90% reduction target is under review.
Our 2020 baseline emissions are recalculated to account for acquisition impact, in line with the GHG Protocol’s
guidance. The target aims to mitigate our scope 1 and scope 2 (market based) GHG emissions, as outlined in
the climate change section of our environmental policy. Our mitigation actions (both completed to date and
planned) to achieve this target are outlined below, detailed per decarbonisation lever.
Scope: Scope 1 and 2 GHG emissions (market based) excluding biogenic emissions. All manufacturing, assembly
and R&D sites within the Group, including businesses acquired on or prior to 30 September 2024. The impact of
acquisitions after this date were estimated and deemed not material at the Group level.
Consideration of future developments: We will continue to improve energy efficiency and electrify process
equipment, such as our insulated panel manufacturing process, to reduce carbon emissions associated with
fossil fuel use. However, the capacity of the electricity grid is a crucial consideration for future electrification
efforts.
The availability of renewable electricity is critical to our strategy. While we closely monitor market developments
in this area, we will prioritise generating electricity through solar PV systems at our sites. Given the limited
access to renewable electricity in certain regions, we will continue to monitor market developments and pursue
renewable energy solutions as they become available. Unlike the more established renewable electricity markets,
renewable fuel markets are still relatively underdeveloped. However, as biofuel technology matures, we are also
committed to actively seeking biofuel suppliers to replace our fossil fuel usage, where suitable. Our target is also
supported by the phasing out of high Global Warming Potential (GWP) blowing agents.
Progress outlook and trends: The target is monitored on a monthly basis by our Group Sustainability team.
Since 2020, we have achieved a 61% reduction, a rate that is exceeding the minimum annual reduction needed
to limit warming to 1.5oC above preindustrial levels.
Progress so far
In 2024, we achieved a further
14.4% reduction in scope 1 and
2 GHG emissions, approximately
10% of which is attributable to
over 100 energy related, emissions
reduction initiatives. The majority
of the remaining approximately
4% is related to process emissions
reductions, achieved by minimising
the use of high GWP blowing
agents. Overall, the Group has
reduced scope 1 and 2 GHG
emissions by 61% in comparison to
2020, our base year and they now
represent less than 5% of our total
carbon footprint.
These reductions are achieved
through our decarbonisation levers
which include energy efficiency,
fuel conversion and process
electrification, on-site renewable
energy generation, renewable
electricity contracts and phasing out
the use of high GWP blowing agents.
During the development of our Plan
and its decarbonisation levers, we
have considered a climate scenario
compatible with limiting global
warming to 1.5°C.
Our strategy seeks to minimise GHG
emissions from the organic growth
of the business where possible,
however we also account for this
potential impact variable within our
transition plan.
Further information on projects
completed in 2024 and planned
actions are outlined per
decarbonisation lever below.
-6%
-13%
+10%
-1%
-34%
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1. Decarbonisation Lever: Energy Efficiency
Scope: In addition to pursuing the increased use of renewable energy, we will continue to implement energy
efficiency projects to enhance energy utilisation and decrease reliance on both renewable and non-renewable
energy sources, which also supports our goal of reducing scope 1 and 2 GHG emissions.
Completed actions in the reporting year:
32 projects, including air compressor upgrades and LED light replacements were completed during the year.
These projects are expected to have an estimated 1,198 tCO2e of annual GHG emission savings, representing a
0.1% reduction in GHG emissions for the reporting year.
Planned actions:
Numerous energy efficiency projects are completed every year including air compressor upgrades, LED light
replacements, process energy efficiency projects and heat recovery projects. Planned projects, for 2025 and
2026, will have an estimated 1,374 tCO2e annual GHG emission savings which are expected to contribute 0.2%
to the achievement of our Target #1. However, as these are short-term projects, a plethora of additional projects
are expected to be completed between now and 2030 as appropriate, with additional impacts.
Key mitigation actions taken during the reporting year and planned for the future per identified
decarbonisation lever:
2020
2020 - 2023 Initiatives
2024 Energy related
2024 Process related
2024
Potential organic growth
Purchased renewable energy
On-site generation
Energy efficiency
Lower GWP raw materials
2030 target
100%
80%
60%
40%
20%
0%
100.0%
-46.8%
-10.3%
-4.1%
38.8%
+10.9%
Increase
Decrease
Total
SCOPE 1 AND 2 DECARBONISATION ROADMAP
- 10.6%
- 0.9%
- 0.2%
- 3.4%
34.6%
2. Decarbonisation Lever: Purchased Renewable Energy - Renewable Energy Contracts
Scope: The Group has prioritised conversion to renewable electricity where it is available to reduce scope 2 GHG
emissions, focusing initially on European markets. However, as other markets develop (e.g. North America), the
implementation of projects in these areas will be considered.
Completed actions in the reporting year:
23 energy contracts have been converted to renewable energy and are expected to reduce GHG emissions by
approximately 172,419 tCO2e annually (representing a 19.8% reduction in scope 2 GHG emissions). While 53% of
this was realised in 2024, a further 9.2% reduction is expected from these same projects in 2025, when in place
for a full year.
Planned actions:
Nine further energy contracts are planned to be converted to renewable energy, between 2025 and 2026,
which will reduce GHG emissions by approximately 1,259 tCO2e annually and contribute a 0.1% GHG emissions
reduction towards Target #1, with further projects under investigation where renewable energy is becoming
available in the marketplace.
3. Decarbonisation Lever: Purchased Renewable Energy - Fuel Conversion and Process Electrification
Scope: To reduce scope 1 emissions from our operations, the Group utilises both conversion to renewable fuel and
process electrification as an important decarbonisation lever, where suitable.
Completed actions in the reporting year:
30 fuel conversion and electrification projects were completed, across our operations, including forklift
electrification and conversion to biofuels and process conversion to biofuels. These projects are estimated to save
approximately 2,060 tCO2e annually and contribute 0.2% GHG emissions reduction towards our Target #1.
Planned actions:
51 further fuel conversion and electrification projects, including those targeting both mobile combustion and
stationary combustion, related to our manufacturing processes, are planned by 2030. These projects are
estimated to save approximately 9,645 tCO2e annually and contribute 1.1% GHG emissions reduction towards our
Target #1.
4. Decarbonisation Lever: On-site Renewable Energy Generation
Scope: The Group will continue the roll out of on-site solar PV systems across all wholly owned facilities to
minimise the reliance on non-renewable electricity purchases, especially for businesses that have limited access
to renewable electricity suppliers, to further reduce scope 2 GHG emissions. We will also investigate other
renewable energy generation technologies beyond solar PV, to determine when and if suitable.
Completed actions in the reporting year:
24 projects including, solar PV installation and expansion, were completed in 2024. These projects are estimated
to save approximately 1,381 tCO2e annually and contribute 0.2% GHG emissions reduction to Target #1.
Planned actions:
74 further projects, including solar PV installation and expansion and heat pumps, are planned between 2025
and 2030. 10 key projects will have a significant impact, with an estimated 6,119 tCO2e annual carbon GHG
emission savings, which would contribute a further 0.7% GHG emissions reduction to Target #1.
5. Decarbonisation Lever: Lower GWP Raw Materials
Scope: The Group is in the process of phasing our use of high GWP blowing agents for the production of
insulation products where technically possible, which has significantly reduced our scope 1 process related GHG
emissions by 85% prior to 2024.
Completed actions in the reporting year:
Further adoption of lower GWP blowing agents in 2024, has resulted in a 30,000 tCO2e reduction in scope 1 GHG
emissions from 2023. This initiative contributes approximately 3.4% further reduction towards our GHG emissions
reduction Target #1.
Planned actions:
The continued adoption of lower GWP blowing agents by 2030 is expected to save a further 5,000 tCO2e annually
and contribute a further 0.5% GHG emissions reduction towards Target #1.
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Scope 3 GHG emissions
Scope 3 emissions make up the
majority of the Group’s total GHG
emissions, with 92% deriving from
the below three categories:
1. Purchased goods & services
(Category C1)
2. Use of sold products (Category
C11)
3. End of life treatment of sold
products (Category C12)
In 2019, at the commencement of
the Planet Passionate programme,
we set two targets to reduce these
emissions – an absolute reduction
target (C1, C11 and C12) and an
intensity target, which aims to drive
reductions specifically in our C1
scope 3 emissions.
Emissions from C11 and C12 have
significantly reduced to date due to
the phasing out of use of high GWP
blowing agents in North America,
as addressed above in our scope 1
and 2 emissions reductions. Since
2020, we have successfully reduced
our C11 and C12 emissions by 94%.
In 2024, these targets were
assessed and the intensity target
was updated to reflect the pace of
development among regulators,
suppliers and customers. The below
decarbonisation levers have been
identified to help us reduce our C1
GHG emissions and achieve these
targets:
»
Data collection and reporting;
»
Supplier engagement and
collaboration; and
»
Development of lower impact
products.
Our targets, progress and actions
are outlined in further detail below.
#
Target name
Base
year
Base year
emissions
Target year
Scope
2024
emissions
Progress
to date
2
42% absolute
reduction
– scope 3
emissions
2020
8,130,451
tCO2e
2030
3
6,990,923
tCO2e
14%
reduction
Target context and additional information
Overview: We have set a 42% scope 3 GHG emissions reduction target by 2030, from a 2020 base year, in line
with a 1.5°C trajectory and verified by the Science Based Targets Initiative. Our 2020 baseline emissions are
recalculated to account for acquisition impact, in line with the GHG protocol’s guidance. The target aims to
mitigate our scope 3 GHG emissions, as outlined in the climate change section of our environmental policy.
Scope: The target covers the following scope 3 categories: purchased goods and services, use of sold products
and end of life treatment of sold products, which represented 92% our total scope 3 GHG emissions in 2024.
Consideration of future developments: Reductions in absolute scope 3 emissions is challenging for a global
manufacturing business with over 91% of emissions embedded in our upstream raw materials. However, it
is critical that each industry sets 1.5°C aligned decarbonisation targets in relation to scope 3. We are closely
monitoring relative industry trends and working closely with our procurement team and suppliers to increase
availability and procurement of lower embodied carbon raw materials to support the progression of this target.
Target monitoring/ progress outlook/ trends: The majority of our reduction is attributable to C1 and
C11/C12, contributing approximately 24% and 65%, respectively. The boundary of this progress includes all
manufacturing, assembly and R&D sites within the Group, including businesses acquired on or prior to 30
September 2024. The impact of acquisitions after this date were estimated and deemed not material at the
Group level.
Key mitigation actions taken during the reporting year and planned for future per identified
decarbonisation lever:
1. Decarbonisation Lever: Data Collection and Reporting
Scope: This decarbonisation lever relates to both our internal and external data collection. The collection of
raw material volumes and spend data, along with the application of suitable emission factors is critical to
accurately reporting scope 3 GHG emissions. Our data collection and reporting improvement strategy is focused
on collecting more granular product and supplier specific emissions information to allow for more accurate
reporting of emissions and strategic decision making. Internally, we focus on collecting detailed volume data for
key raw materials used in our core product families. This approach improves visibility of our upstream value chain
emissions and supports the achievement of Target #2 and #3.
Completed actions in the reporting year:
In 2024, we increased our collection of supplier specific and product specific data, resulting in 34% of our scope
3 emissions being calculated using primary data. Product specific carbon intensity information is collected in the
form of environmental product declarations and product carbon footprints. These are sourced both directly and
indirectly, through supplier engagement and supplier annual reports, respectively. We also implemented a new
scope 3 data collection and reporting system which is used to both calculate, analyse and report on our C1 scope
3 GHG emissions. The use of this tool has allowed us to calculate >70% of our scope 3 C1 emissions using physical
emission factors as opposed to monetary, supporting our data collection and reporting improvement strategy.
Planned actions:
Further development of internal data collection methodologies, will increase the transition towards emissions
calculated using physical emission factors. We will also continue the collection of further supplier specific and
product specific emissions information to increase the accuracy of our reporting. This is led through our supplier
engagement programme (further details below) and is critical in supporting the achievement of our scope 3
GHG reduction targets.
#
Target name
Base
year
Base year
intensity
Target year
Scope
2024
intensity
Progress
to date
3
15% reduction in
carbon intensity of
key raw materials
2020
2.540
tCO2e/t
2030
3
2.440
tCO2e/t
3.9%
reduction
Target context and additional information
Overview: We seek to find solutions to help reduce emissions from our purchased goods and services, which
account for over 91% of our total value chain emissions. Achieving absolute scope 3 emissions reductions is
challenging and this target was set to help us to track and demonstrate progress as our key suppliers implement
their emissions reduction strategies. This target was developed after consultations with several internal
stakeholders, including members of our group and divisional procurement teams. Our mitigation actions and
decarbonisation levers are outlined in section E1-3.
Scope: This target covers the key raw materials we procure from our primary raw material suppliers. The majority
of our upstream value chain emissions are attributable to three key raw material categories – metals, chemicals
and mineral fibre. In 2024, these raw materials accounted for 76% of emissions related to purchase of raw
materials.
Consideration of future developments: Achievement of our supply chain targets is dependent on the progress
made by our key raw material suppliers. It is also reliant on significant industry decarbonisation in the metals and
chemicals industries. We have taken these dependencies into account in setting our target and developing our
strategy to achieve this target through collaboration with our key suppliers.
Target monitoring/ progress outlook/ trends: To date, through procurement and supplier engagement
strategies, we have reduced the intensity of the carbon in our key raw materials by 3.94%.
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2. Decarbonisation Lever: Supplier Engagement and Collaboration
Scope: Through our supplier engagement strategy, we prioritise engagement with major suppliers of our key raw
materials, as they contribute significantly to our upstream emissions. By collaborating with our key suppliers,
maintaining long-term relationships, we aim to ensure alignment with our environmental objectives.
We recognise the critical role these stakeholders play in contributing to the embodied carbon of our products and
scope 3 emissions at the group level as shown by the fact that C1 scope 3 emissions accounted for 91% of the
total scope 3 emissions.
Completed actions in the reporting year:
As previously mentioned, the Group focused on reducing the embodied carbon of the key raw materials
we purchase. To achieve this, we hold open discussions with our suppliers to address the challenges and
opportunities associated with decarbonisation, requesting decarbonisation roadmaps at both company and
product level for key raw material suppliers.
In 2024, we also developed a SHREDD Policy which outlines the Group’s supplier due diligence process. Through
this process, we aim to reduce environmental impacts by collaboration with critical suppliers of our key raw
materials and holding them accountable to the Group’s environmental standards.
Our supplier engagement programme includes suppliers covering over 62% of our C1 scope 3 emissions.
Planned actions:
We will continue our supplier engagement, working with our suppliers to further reduce the embodied carbon
of our key raw materials and to identify opportunities for collaboration. We also plan to expand the scope of
our engagement programme to include additional suppliers and address a further proportion of our emissions
related to raw materials. Supplier engagement and collaboration is a key lever in progressing both Target #1 and
#2, in relation to C1 scope 3 emissions.
3. Decarbonisation Lever: Development of Lower Impact Products
Scope: To support our scope 3 GHG emissions reduction targets, supplier engagement strategy and the
procurement of lower embodied carbon raw materials, we aim to continue developing and expanding our lower
embodied carbon (LEC) product ranges. These products are designed to help achieve our scope 3 GHG emission
reduction targets by offering a market route for products with enhanced environmental performance. This in
turn, helps our customers meet their own decarbonisation goals.
Completed actions in the reporting year:
The Group has brought 19 products with improved environmental performance to market to date, including
12 LEC products launched in 2024. This helps develop a market for these products while also driving demand
upstream for lower embodied carbon raw materials.
Planned actions:
We are in the process of developing further decarbonisation product roadmaps and continuing to work closely
with our R&D teams to continue the expansion of the LEC product range and other products with improved
environmental performance by 2030 and beyond.
Our Article 8 disclosures, outlined
in the EU Taxonomy section of this
report, detail the proportion of our
revenue, capex and opex currently
eligible and aligned with the EU
Taxonomy. These disclosures cover
activities such as:
»
CCM 3.5 Manufacturing of
Energy Efficiency Equipment for
Buildings
To support the continued alignment
of our economic activities with
Taxonomy criteria, the Group
established a Green Finance
Framework in 2024. This framework
enables the issuance of green
financial instruments to fund
or refinance projects that meet
Taxonomy criteria. These include
investments in energy-efficient
manufacturing facilities, renewable
energy infrastructure and green
building projects certified under
recognised standards. Eligible
expenditures under the framework
include both capex and opex,
ensuring alignment with substantial
contribution criteria for climate
change mitigation and, where
applicable, compliance with
transition plans.
The Group’s organic expansion
in 2024, including new lines
and facilities, integrates energy
efficiency and low carbon
technologies, contributing to
increased alignment with Taxonomy
objectives. Ongoing renovations
of existing assets further ensure
operational improvements are
consistent with sustainability goals.
Over time, we expect our alignment
with Taxonomy criteria to evolve
through continued investment in
innovative, low carbon solutions and
the expansion of taxonomy-aligned
revenue, capex and opex.
For further details on our EU
Taxonomy alignment, refer to the
EU Taxonomy section of this report.
To learn more about the Green
Finance Framework, please see
the Green Finance Framework
document
.
The Group did not invest capex
amounts in coal, oil and gas-related
economic activities (these activities
are related to the following NACE
codes: B.05, C.19, D.35.1, D.35.3,
G.46.71 and gas-related activities
with direct GHG emissions that are
higher than 270 gCO2e/KWh) during
the reporting year. Also, the Group
is not excluded from EU Paris-
aligned Benchmarks.
The Group does not manufacture
GHG-intensive or energy intensive
products; the Group is focused on
reducing the embodied carbon of
its products, delivering enhanced
value to its customers. Regarding
locked-in GHG emissions from its
key assets, the Group has assessed
that it does not have locked-
in GHG emissions that might
jeopardise the achievement of its
targets or its transition plan for
climate change mitigation.
E1-2 - Policies
The Group’s updated Environmental
Policy was approved in December
2024 and communicated to
responsible parties. Kingspan
policies can be accessed on
our website: https://www.
kingspangroup.com/en/about/
policies/. A training programme
is in development, which will be
rolled out to relevant stakeholders
throughout 2025. The Group
has developed a Climate
Change Section (CCS) within its
Environmental Policy to manage,
prevent, mitigate and remediate
actual and potential impacts,
to address risks and to pursue
opportunities related to both
climate change mitigation and
adaptation. The CCS’s provisions
relate to all climate-related
material IROs and it covers our
own operations and the upstream
stage of our value chain, as these
two were the stages with material
IROs. The CCS addresses climate
change mitigation, climate change
adaptation, energy efficiency and
renewable energy generation.
Via our policy, we highlight that
our commitment is aligned with
the Paris Agreement. Also, while
setting the policy, we considered
the views and expectations of
key stakeholders as part of the
DMA process outlined in previous
sections. The divisional managing
directors (MDs) are responsible for
the implementation of the CCS.
Monitoring of the CCS is performed
as part of our Planet Passionate
programme, which included targets
that were designed to help us
achieve our policy objectives. The
CCS is available on our website
and was also made available to
all stakeholders responsible for its
implementation.
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E1-5 - Energy consumption and mix
Metric (MWh)
2020
2021
2022
2023
2024
Total energy consumption1
637,370
765,814
831,986
932,665
2,526,110
Total fossil energy consumption
510,294
572,121
544,914
605,325
1,024,081
Share of fossil sources (%)
80%
75%
65%
65%
41%
Coal and coal products
0
0
0
0
126,816
Crude oil and petroleum products
86,271
107,220
105,073
94,742
103,580
Natural gas
279,616
331,389
334,979
415,924
607,973
Other fossil sources2
19,822
27,489
24,116
15,381
8,801
Purchased electricity/heat/steam/cooling from
fossil sources3
124,585
106,023
80,746
79,278
176,911
Consumption from nuclear sources3
n/a
n/a
n/a
n/a
n/a
Total renewable energy consumption
127,076
193,693
287,072
327,340
1,502,029
Share of renewable sources (%)
20%
25%
35%
35%
59%
Renewable fuel
18,416
22,170
52,276
65,272
1,087,895
Purchased renewable electricity/heat/steam/
cooling from renewable sources
97,747
159,387
216,512
237,141
384,694
Self-generated, non-fuel
10,913
12,136
18,284
24,927
29,440
Note - Boundary: Whole Business includes manufacturing, assembly and R&D sites within the Group, excluding acquisitions made
after 30 September 2024. The impact of acquisitions after this date were estimated and deemed not material at the Group level.
1 Includes restated figures for historical data due to improved data collection and change in calculation methodologies.
2 Includes other non-renewable, non-fossil sources.
3 The Group does not actively source energy from nuclear sources, however the non-renewable electricity we purchase might
include nuclear sources.
Metric (MWh)
2020
2021
2022
2023
2024
Total energy production1
42,099
52,582
73,466
90,320
814,259
Non-renewable energy production
10,993
15,147
13,011
8,555
49,506
Renewable energy production
31,106
37,435
60,455
81,765
764,753
1 Includes restated figures for historical data due to improved data collection and change in calculation methodologies.
Metric (MWh / €m of net revenue)
2024
Energy intensity
293
Net revenue from activities in high climate impact sectors1 used to calculate energy intensity (€m)
8,608
Net revenue - other (€m)
-
Total net revenue per financial statements (€m)
8,608
1 High climate impact sectors refer to those listed under NACE Sections A to H and Section L, as defined in Commission
Delegated Regulation (EU) 2022/1288. As all our operations fall within these sectors, it is assumed that the entirety of our
revenue is captured under the relevant appendices.
E1-6 - Gross Scopes 1, 2, 3 and total GHG emissions
Metric (tCO2e)1
2020
2021
2022
2023
2024
% (2024
vs 2023)
Gross scope 1 GHG emissions
606,488
594,753
445,154
264,707
227,672
-14.0%
% of scope 1 GHG emissions from regulated
emission trading schemes
-
-
-
-
53%
N/A
Biogenic CO2 emissions
386,604
479,655
454,915
356,644
394,948
10.7%
Gross location-based scope 2 GHG emissions
254,940
255,969
223,304
204,383
216,093
5.7%
Gross market-based scope 2 GHG emissions
263,994
282,541
243,949
198,747
110,165
-44.6%
Gross scope 1 and 2 (market based) GHG
emissions
870,482
877,294
689,103
463,454
337,837
-27.1%
Gross scope 3 GHG emissions
8,130,451
9,688,866
8,560,679
7,684,446
6,990,923
-9.0%
1. Purchased goods and services
6,680,401
8,163,984
7,486,560
6,846,605
6,375,447
-7.9%
11. Use of sold products
497,975
529,956
329,629
54,978
6,048
12. End of life treatment of sold products
453,925
488,631
303,859
83,364
51,352
2. Capital goods
85,081
81,562
106,575
207,272
133,995
-35.4%
3. Fuel and energy related activities
34,001
48,179
50,518
86,069
139,579
62.2%
4. Upstream transportation and distribution
297,778
292,795
190,161
291,311
222,506
-23.6%
5. Waste generated in operations
4,874
7,512
5,592
11,387
4,918
-56.8%
6. Business travel
46,116
44,524
58,214
73,910
23,849
-67.7%
7. Employee commuting
30,300
31,723
29,571
29,550
33,229
12.5%
Total GHG emissions (location-based)
8,991,879
10,539,588
9,229,137
8,153,536
7,434,688
-8.8%
Total GHG emissions (market-based)
9,000,933
10,566,160
9,249,782
8,147,900
7,328,760
-10.1%
Note 1. Boundary: Whole Business includes manufacturing, assembly and R&D sites within the Group, excluding acquisitions made
after 30 September 2024. The impact of acquisitions after this date were estimated and deemed not material at the Group level.
Note 2. Significant changes: In 2024, we made significant changes to the definition of our reporting boundary due to strategic
acquisitions. We acquired control of Steico through a majority stake and also acquired the stonewool manufacturing business
from Karl Bachl Kunststoffverarbeitung GmbH & Co. KG. We recalculate both base and interval years in line with the GHG
Protocol’s guidance, to allow for better and more accurate year-on-year comparability.
Note 3. GHG emissions include the following GHG gases: CO2, CH4, N2O and HFCs. PFCs, SF6 and NF3 are not included as they are
not considered to be associated with our inputs.
Note 4. See Appendix 6 for more details on our calculation methodology and assumptions.
1 Includes restated figures due to improved data collection, change in calculation methodologies and recalculations due to
acquisitions.
GHG Intensity per net revenue (tCO2e / €m of net revenue)
2024
Total GHG emissions (location-based) per net revenue
864
Total GHG emissions (market-based) per net revenue
851
Net revenue used to calculate GHG intensity
8,608
Net revenue - other (€m)
-
Total net revenue per financial statements (€m)
8,608
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E1-7 - GHG removals
and GHG mitigation
projects financed through
carbon credits
The Group did not purchase carbon
credits from the voluntary market
during the reporting period and
did not generate or apply GHG
removals and/or storage resulting
from projects within its own
operations or value chain.
We follow updated guidance
and recommendations from
several authoritative institutions
and we do not procure carbon
credits to count as reductions
towards meeting our carbon
targets. Our focus is instead
on decarbonisation within our
operations and value chain.
Towards the end of our
decarbonisation roadmap, for hard
to abate residual emissions, we
plan to procure only high quality
carbon credits to neutralise residual
GHG emissions after we have met
our science-based absolute GHG
emission reduction targets.
We will only procure credible,
high-quality carbon credits that
will demonstrate and ensure
additionality and permanence.
Nature-based solutions, such as
reforestation, cannot guarantee
the permanence needed so we
will continue to closely monitor
the market and invest in the most
suitable solution in the coming
years.
E1-8 - Internal carbon
pricing
In January 2023, we introduced
an internal carbon charge across
our global business for all our
manufacturing, assembly and
R&D sites. Each operating business
unit is charged €70* for each
energy-related tCO2e emitted by
their business during the year. The
charge is included in divisional
management accounts, directly
affecting divisional profitability and
management remuneration. The
charge covers our scope 1 and 2
GHG emissions (excluding process
and biogenic emissions) and will
be adjusted as required to ensure
progress against our targets align
to relevant developments in this
field. The carbon charge does not
cover scope 3 GHG emissions.
Scope 1 GHG emissions covered in
2024: 215,252 tCO2e (95% of overall
scope 1 GHG emissions).
Scope 2 GHG emissions (market-
based) covered in 2024: 110,165
tCO2e (100% of overall scope 2 GHG
emissions).
The carbon charge was implemented
to accelerate reduction of direct
GHG emissions. It has helped
to further incentivise the rapid
deployment of decarbonisation
projects including renewable
energy contract conversions and
forklift fleet decarbonisation, while
facilitating increased focus across
the business on our decarbonisation
strategy.
* The carbon charge price was
determined through an extensive
review of carbon pricing guidance,
existing carbon pricing mechanisms
and rates already implemented,
both at corporate and national level,
including a review of the EU ETS
carbon price and trajectory. A variety
of carbon price levels were modelled
against our business footprint and
strategic decarbonisation projects to
determine a suitable price to assist
in furthering our science based 1.5˚C
aligned decarbonisation strategy.
ESRS E2 – POLLUTION
Interaction with
other ESRS
a) Relevant Greenhouse gases
connected to air pollution:
carbon dioxide (CO2), methane
(CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), sulphur
hexafluoride (SF6) and nitrogen
trifluoride (NF3) are covered in
E1 - Climate change.
b) Water consumption, water
recycling and storage. Emissions
to water, air and soil and
substances of concern are
covered in E3 - Water and
marine resources.
c) Biodiversity loss and interaction
with ecosystems and species are
covered in E4 - Biodiversity and
ecosystems.
d) Transition away from extraction
of non-renewable resources and
the implementation of practices
that prevent waste generation
are covered in E5 - Resource use
and circular economy.
ESRS 2 - SBM-3
Our overall DMA approach for the
topic of Pollution is outlined in the
ESRS 2 IRO-1 section of this Report.
The outcome of this analysis is as
follows:
»
Pollution to air, water and
soil (including generation
and use of microplastics):
As a global manufacturer of
building materials with 273
manufacturing sites, the sub-
topic of pollution to air, water
and soil is considered relevant
and IROs were identified and
assessed in further detail. Both
impact and financial materiality
were assessed and we concluded
that based on the assessment
to date, this sub-topic is not
material at the Group level for
our own operations. Given the
nature, extent and complexity
of our value chain, we have
assessed that this topic is
material for our upstream value
chain, while not material for our
downstream value chain.
»
Substances of concern
(SoC)/ Substances of very
high concern (SVHC): As
a global manufacturer of
building materials with 273
manufacturing sites, this
sub-topic of SoC and SVHC is
considered relevant and IROs
were identified and assessed in
further detail. Using a risk-based
approach we identified key
chemical raw materials from a
group level, which were further
assessed by a third-party expert.
Material impacts related to Pollution
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Negative
impact - potential
Time Horizon:
Short-term
Value chain
stage: Upstream
Pollution to air,
water and soil
Due to the nature of the
construction industry and
its value chain, we consider
the Group’s impacts related
to pollution of air, water and
soil material for our upstream
value chain.
»
Policy update: In 2024,
the Group updated its
Environmental Policy to include
considerations and provisions
aligned with potential
pollution related IROs.
»
Certifications: In 2024,
50% of our sites held ISO
14001 certification, reflecting
the implementation of their
environmental management
systems.
Type: Negative
impact - potential
Time Horizon:
Short-term
Value chain
stage: Upstream
Pollution caused
by substances of
concern/very high
concern
Due to the nature of the
construction industry and its
value chain, we consider the
Group’s impacts related to
pollution caused by substances
of concern/ very high concern
material for our upstream
value chain.
E2-1 – Policies, E2-2 -
Actions and E2-3 - Targets
In the Pollution Section (PS) of our
Environmental Policy, we recognise
the importance of pollution, as
a critical global issue. Our policy
outlines our objectives in relation
to material pollution related to our
IROs, including our commitment
to develop a process to identify
and monitor these IROs within our
operations. Specifically, it outlines
our aim to manage material IROs
related to pollution to air, water
and soil (including pollution from
microplastics and of living organisms
and food resources). As we have
not identified any material IROs
related to SoC or SVHC within
our operations and due to the
complexity of the topic and unique
regional requirements, management
of IROs related to the substituting
or minimising of substances of
concern and incident and emergency
prevention are not addressed in our
Environmental Policy.
As we did not identify any material
pollution related IROs for our own
operations, we did not set Group
level pollution targets or related
actions, but we will continue to
monitor the materiality of our
IROs and reassess our approach if
needed.
Although we have not identified
any material IROs at a group
level for our own operations, this
topic is managed by our local
teams at the site level, in line with
applicable regulations and giving
consideration to unique local
circumstance. Our manufacturing
sites hold environmental permits
or equivalent, where applicable,
in line with national and/or
regional requirements. Compliance
with these requirements may
include, but is not limited to, the
monitoring and reporting of air
emissions, water discharges and
soil contamination. Environmental
permits outline the local pollution
regulatory thresholds and limits,
thus providing clear guidance and
thresholds for the manufacturing
sites to operate in. We monitor
material environmental breaches
and/or concerns raised by local
communities (i.e. those in or
around our business locations) and
no material fines or breaches have
been reported for 2024.
Another key element of our
environmental management
approach is the implementation
of ISO 14001 environmental
management systems at our sites.
At the end of 2024, 50% of our
manufacturing sites have achieved
ISO 14001 certification.
The above measures support in
tracking the effectiveness of the
PS of our Environmental Policy,
however, we plan to establish a
group level reporting mechanism
to enhance the monitoring and
management of pollution-related
IROs. As a first step, by consulting
with both internal experts and
The results of this assessment
allowed us to consider the
materiality of SoCs and SVHCs in
relation to our overall materials
procured and product portfolio.
We concluded, based on this
assessment completed to date,
that SoCs and SVHCs are not
a material sub-topic at the
Group level for our operations
(including procured materials)
and downstream value chain.
Given the nature, extent and
complexity of our value chain, we
have determined that this topic
is likely material for our upstream
value chain.
The assessment to date included
estimates and assumptions. As
availability of primary data increases
through the development of a group
level reporting mechanism, we will
continue to refine and review our
assessment.
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third-party consultants, we aim to
gather more comprehensive and
accurate data on our key value
chain partners’ pollution-related
impacts. This increased visibility will
facilitate the development of an
effective process to manage our
material impacts.
ESRS E3 - WATER AND
MARINE RESOURCES
Interaction with
other ESRS
a) Emissions to water and the use
and generation of microplastics
will be covered in E2 – Pollution.
b) Sustainable use and impacts on
freshwater aquatic ecosystems
are covered in E4 – Biodiversity
and ecosystems.
c) Waste management, including
plastic and wastewater are
covered in E5 – Resource use and
circular economy.
ESRS 2 – SBM-3
Data from the Food and Agriculture
Organisation of the United
Nations from 2017 indicates that
of the global annual freshwater
withdrawals, agriculture accounts
for 71% of the total, domestic
withdrawals account for 12% and
industry for 17%. Most of our sites
(90%) withdraw less than 10,000
m3 of water per year (categorised
as very low) and are therefore not
water intensive. 27.5% of our sites
consume water as an integral part
of their manufacturing purposes,
while the other 72.5% use water
only for social purposes.
As part of our IRO assessment,
we have established a process to
identify any priority sites, in relation
to water. Priority sites are those
which are deemed to have material
water impacts or dependencies,
determined by annual water
withdrawal exceeding 100,000
m3 (categorised as medium) and
location in areas of high or very high
water stress. During the reporting
period, no priority sites have been
identified, supporting our claim that
we do not have material impacts or
risks within our own operations. See
the results of this assessment of our
sites in the heatmap below.
Nevertheless, we acknowledge
that our business relies on the
procurement of raw materials
from industries that consume large
quantities of water. The Group does
not rely nor have impacts on marine
resources (e.g. gravels and seafood
products), hence we deem that
we do not have any material IROs
related to this topic. Through the
DMA we conducted (as outlined in
section ESRS 2 IRO-1), we identified
material IROs related to water,
which are presented in more detail
in this section.
100%
Regarding our water-related
opportunity, we manufacture and
support pioneering new technologies
to preserve and protect water, such
as rainwater harvesting systems and
wastewater treatment systems. As
water stress and water availability
become more severe in the coming
decades, we anticipate an increased
demand for these products can lead
to increased sales and revenues.
Our ambition is to grow our Light,
Air + Water divisional revenue to
over c.€2bn over the medium to
long-term. Water broadly represents
c.30% of this division and should
expect growth rates in line with
the overall division. The growth
in revenue could accelerate as
consumer awareness of the value of
water rises based on higher incidence
rates of both droughts and floods.
As we continue to improve our
IRO assessment processes across
our Group, we will examine the
possibility of conducting further
water consultations in the future.
E3-1 - Policies
The Group has developed a
dedicated Water Section (WS)
in its Environmental Policy to
manage, prevent, mitigate and
remediate actual and potential
impacts, to address risks and to
pursue opportunities related to
water. The WS’s provisions relate
to our material impacts and
dependencies and covers all of our
manufacturing, R&D and assembly
facilities (including sites in water
stressed areas). The WS addresses
water management at priority
sites – priority sites are identified
based on their dependency on
water (i.e. water withdrawal), their
impacts (i.e. water consumption)
and their water-stress status.
Water considerations related
to water treatment and use/
sourcing, product and service
design and consumption reduction
commitments are not explicitly
addressed in the WS, since our
management approach, including
the water-related topics tackled,
will depend on the local context of
water and the specific needs and
circumstances at priority sites.
Our SHREDD Policy (see section
S2-1 for further detail), which is
aligned with several guidelines and
principles (i.e. OECD Guidance for
Multinational Enterprises (MNCs) on
Responsible Business Conduct (RBC)
(OECD, 2023); UN Guiding Principles
on Business and Human Rights
(UNGP, 2011); International Labour
Organisation (ILO) Declaration on
Fundamental Principles and Rights at
Work (ILO, 1998) seeks to address our
material upstream environmental
impacts – including water. The WS
does not include provisions related to
sustainable oceans and seas, as they
were deemed not material topics.
Divisional MDs oversee and
are responsible for the WS’s
implementation. Monitoring of
the WS is performed as part of our
Planet Passionate programme. Our
Environmental Policy is available
on our website and was also
made available to all stakeholders
responsible for its implementation.
Note: Water pollution is under the scope
of our pollution policy.
E3-2 - Actions and
E3-3 - Targets
As outlined above, our impacts
and dependency on water vary
across our Group. This fact, along
with the local context of water,
means that a Group-wide target
based on absolute reductions is
neither the most efficient nor the
most strategically relevant option.
Instead, we are focusing our
attention and resources on sites
and helping to address their water-
related challenges. As outlined
in the WS of our Environmental
Policy, priority sites will be identified
by using relevant criteria such
Material impacts and opportunities related to Water and marine resources
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Negative
impact - actual
Value chain stage:
Upstream
Water
consumption
quantities
The Group’s key suppliers operate in
industries that consume large quantities
of water (e.g. steel and plastics), hence
having negative impacts on water
availability.
»
Policy update: In 2024,
the Group updated its
Environmental Policy to
include considerations and
provisions aligned with our
water-related IROs.
Type: Positive
impact - actual
Value chain stage:
Downstream
Manufacture
of water-
related
products
The Group has a range of products
available to customers which aid in
treating water to improve its quality
including sewage treatment, septic tanks
and rainwater collection infrastructure.
»
Product offering: The
Group manufactures and
supports new technologies
to preserve and protect
water, such as rainwater
harvesting systems and
wastewater treatment
systems. The Group sells
rainwater harvesting and
telemetry systems.
Type: Opportunity
Time Horizon:
Short-term
Derives from:
Other (market)
Increased
sales of
existing
products and
services
The Group sells rainwater harvesting and
telemetry systems. As water stress and
water availability become more severe in
the coming decades, we anticipate an
increased demand for these products can
lead to increased sales and revenues.
KINGSPAN’S WATER HEATMAP
1,000,000
100,000
10,000
Water withdrawals (m3/year)
2 sites
16 sites
152 sites
Low/medium
High/ very high
Very Low
Low
Medium
Baseline water stress
0%
40%
0 sites
6 sites
64 sites
Note: Water withdrawal categories based on WWF (2024) WWF Risk Filter Suite version 2.0. https://riskfilter.org/
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as exposure to water stress and
dependency on water (see more
detailed explanation and heatmap
above) and action plans developed,
as needed. The site-specific action
plans will have a focus on the
local nature of water and local
circumstances. As mentioned above,
no priority sites were identified in
2024, therefore there are no specific
actions at the Group level related
to water. As the Group grows, our
methodologies will evolve. In 2024,
we have not set targets related to
our material IROs for E3. The Group
tracks the effectiveness of the WS
of our Environmental Policy through
our internal environmental data
collection and reporting processes.
However, as part of Planet
Passionate, we have set a voluntary
water-related target; to harvest 100
million litres of rainwater annually
by 2030. The target covers all Group
manufacturing, assembly and R&D
sites. Harvesting rainwater helps
our sites reduce their impacts and
alleviate stress on local aquifers
and water systems by withdrawing
less freshwater from third-party
providers or groundwater sources.
This target was not designed to
address any of our material impacts
or risks, however, helps further our
goal of playing a role in helping
address global environmental
challenges and be a good neighbour
to our local communities.
ESRS E4 – BIODIVERSITY
AND ECOSYSTEMS
Interaction with
other ESRS
a) Climate change, which
addresses in particular GHG
emissions, is covered in E1 -
Climate change.
b) Pollution, which addresses
pollution to air, water and soil is
covered in E2 – Pollution.
c) Transition away from extraction
of non-renewable resources and
the implementation of practices
that prevent waste generation,
including pollution generated
by waste, is addressed in
E5 – Resource use and circular
economy.
ESRS 2 – SBM-3 and
E4-1 - Transition plan
and consideration
of biodiversity and
ecosystems in strategy
and business model
The results of the DMA (see section
ESRS 2 IRO-1 for more information
on how we identified and assessed
our biodiversity-related IROs)
showed that our most material
impact on biodiversity from our
operations (based on the type and
nature of our activities) is pollution
and our most material dependency
is water availability. As presented in
the E3 – Water and marine resources
section, our water-related impacts
are not deemed material, so in turn,
we do not consider our dependency
and hence risks, on the biodiversity
water provisioning services as
material.
Similarly, as outlined in the E2 –
Pollution section, we do not consider
pollution to air, water and soil and
pollution caused by SoC/SVHC as
material sub-topics for our own
operations based on our assessment
to date. The Paper & Forest Products
parts of our business are associated
with an increased number of
material impacts and dependencies,
but their contribution to the Group-
level materiality was assessed and
deemed not material (based on
contribution to revenue and size).
Furthermore, we recognise that
climate change is inextricably linked
with biodiversity loss and ecosystem
integrity, so we also consider our
impact via climate change as a key
pressure on biodiversity as material.
Examining these results through
another high-level filter, namely the
direct impact drivers on biodiversity
loss, as outlined in CSRD, some
commonalities are visible that
showcase the nature of our impacts
based on our industry.
Material impacts and
dependencies at the Group
level based on the WWF
Biodiversity Risk Filter (BRF) tool:
»
Dependency - water scarcity:
deemed to be not material
after additional analysis (see
E3 - Water and marine resources
section for more detail);
»
Impact – pollution: deemed not
material for our own operations
(see E2 - Pollution section for
more detail).
Key biodiversity impact
drivers (source: CSRD, ESRS
4 – paragraph 4):
»
Climate change – material
covered in E1 - Climate change;
»
Land-use, freshwater and sea-
use change – not applicable;
»
Direct exploitation – not
applicable;
»
Invasive alien species - not
applicable; and
»
Pollution - deemed not material
for our own operations (see E2 –
Pollution for more information).
Finally, we have not identified
material negative impacts with
regards to land degradation,
desertification or soil sealing.
Site materiality and site
proximity to biodiversity-
sensitive areas:
Due to the type and nature of our
material impacts on biodiversity, we
have not provided a list of material
sites with activities that negatively
affect biodiversity sensitive areas.
We recognise that further analysis is
needed to determine the existence
and magnitude of impacts on
biodiversity sensitive areas. We
aim to do so in the coming years
pending the availability of detailed
biodiversity footprinting tools.
Due to the location of our activities,
the nature of our impacts and our
proactive management approach,
we assessed that we do not have
operations that affect threatened
species. As we refine our approach
and more sector-specific tools
become available, we will reassess
the materiality of our impacts on
threatened species.
Value chain:
Given the location specific nature of
biodiversity, assessing IROs across
our extensive value chain poses a
greater challenge. Even though
we used the BRF tool to assess the
impacts and dependencies of our
upstream value chain, we realise
that it is going to take a lot of
resources, including collaborative
effort, to assess our value chain
IROs in detail. In the meantime
and in the absence of conclusive
evidence, we have applied the
precautionary principle and
classify our upstream impacts on
biodiversity as material. We will
monitor this situation, in line with
our SHREDD Policy and through
our current supplier due diligence
process. We aim to further progress
our analysis when tools and
guidance mature.
Material impacts related to Biodiversity and ecosystems
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Negative
impact – actual
Value chain
stage: Own
operations
Climate
change
Climate change is one of the key
impact drivers on biodiversity and
ecosystems degradation and as
explained in the E1 - Climate change
section, the Group has material
impacts on climate change from its
own operations.
»
Policy: In 2024, the Group updated
its Environmental Policy to include
considerations and provisions
aligned with our biodiversity-related
IROs.
»
Decarbonisation plan: The Group
developed a transition plan (the
Plan) for climate change mitigation.
The Plan comprises mitigation levers
for scope 1, 2 and 3 GHG emissions
and is underpinned by our carbon
targets, which are set out as part of
the Planet Passionate programme.
Type: Negative
impact – actual
Value chain
stage:
Upstream
Climate
change
Climate change is one of the key
impact drivers on biodiversity and
ecosystems degradation and as
explained in the E1- Climate change
section, the Group has material
impacts on climate change from its
upstream value chain.
Type: Negative
impact – actual
Value chain
stage:
Upstream
Pressures on
biodiversity
Direct drivers or pressures are
impacts that unequivocally
influence biodiversity and ecosystem
processes. Areas with high pressures
on biodiversity are likely to decline
in the future, independent from
whether the current status of
biodiversity is intact or already
compromised. This risk category
includes the following pressures on
biodiversity: land, freshwater and
sea use change; tree cover loss;
invasives and pollution.
»
Policy: In 2024, the Group updated
its Environmental Policy to include
considerations and provisions
aligned with our biodiversity-related
IROs.
Planet Passionate, our Group
environmental sustainability
programme, which is one of our
four strategic pillars, aims to help
tackle climate change, promote
circularity and the protection of the
natural world. Planet Passionate is
deeply embedded in our business
model and strategy. We did not
perform a resilience analysis
related to biodiversity because
we’re still exploring the implications
of different biodiversity-related
scenarios on our strategy. We aim to
do so in the coming years pending
the availability of relevant tools and
guidance. In addition, based on
the above analysis and the nature
and materiality of our biodiversity
IROs, we believe that our business
model/ strategy is to a large extent
compatible with global public policy
ambitions and targets. For example,
many of the Kunming-Montreal
Global Biodiversity Framework’s
targets are not relevant for the
Group (e.g. invasive species, wild
species, genetic resources and
biotechnology), showing that much
of the international focus is in areas
where the Group is not involved in.
With a trading presence in over 80
countries and 273 manufacturing
facilities, our geographical
diversification enhances the
resilience of our business model,
reducing exposure to localised
biodiversity risks and allowing us
to adapt to regional ecosystem-
related regulatory changes, while
also capturing opportunities for
sustainable growth.
E4-2 - Policies
The Biodiversity Appendix (BA)
of our Environmental Policy was
developed based on the identified
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impacts, risks, dependencies and
opportunities related to biodiversity
and ecosystems. With the BA we
aim to manage and mitigate our
material direct impact drivers as
identified in our materiality analysis
(e.g. climate change) and support
the traceability of timber products,
by obtaining relevant certification
for material timber quantities. The
BA also covers all sites that are in or
near biodiversity areas and does not
cover: sustainable land/agricultural
practices, invasive alien species,
sustainable oceans/seas practices,
deforestation commitments,
production, sourcing or consumption
from ecosystems that are
managed to maintain or enhance
conditions for biodiversity and social
consequences of biodiversity and
ecosystems-related impacts.
Divisional MDs are responsible for
the implementation of the BA.
Based on the nature and materiality
of our IROs, we concluded that
it is not necessary to implement
biodiversity mitigation measures,
such as those identified in: Directive
2009/147/EC of the European
Parliament and of the Council on
the conservation of wild birds;
Council Directive 92/43/EEC on the
conservation of natural habitats
and of wild fauna and flora; an
Environmental Impact Assessment
(EIA) as defined in Article 1(2),
point (g), of Directive 2011/92/EU
of the European Parliament and of
the Council on the assessment of
the effects of certain public and
private projects on the environment;
and for activities located in third
countries, in accordance with
equivalent national provisions or
international standards, such as the
International Finance Corporation
(IFC) Performance Standard 6:
Biodiversity Conservation and
Sustainable Management of Living
Natural Resources.
E4-3 - Actions
As explained above, our material
biodiversity-related IROs are
connected to climate change for
our own operations. To address the
biodiversity IROs related to climate
change, we have developed a
detailed transition plan for climate
change mitigation to ensure our
business model is compatible with
a 1.5°C future, in line with the Paris
Agreement. The plan will help us
not only reduce our GHG emissions,
but also reduce our climate-related
biodiversity impacts. We do not
use biodiversity offsets in any of
our action plans. More details
on the plan are presented in the
E1- Climate change section of
this Report. The Group has not
implemented additional biodiversity
specific actions.
E4-4 - Targets and E4-5 -
Impact metrics
Our targets relate to our material
IROs for our own operations
(i.e. climate change). They are
not directly linked to ecological
thresholds nor informed by relevant,
global/regional biodiversity
frameworks and strategies. For
targets that address the climate
change-related biodiversity IROs,
we have set GHG mitigation
targets that serve as the basis for
our transition plan. More details
on the targets are presented in
the E1- Climate change section
of this Report. The Group has not
set additional biodiversity specific
targets.
Similarly, our progress against
our targets is monitored using
relevant metrics. We are not
reporting impacts metrics related to
biodiversity and ecosystems change
for this reporting period as we have
concluded we do not materially
contribute to:
»
the impact drivers of land-use
change, freshwater-use change
and/or sea-use change;
»
the accidental or voluntary
introduction of invasive alien
species; and
»
the state of species.
For our analysis on a number of
sites near or in biodiversity sensitive
areas, see site materiality and site
proximity to biodiversity-sensitive
areas section.
ESRS E5 - RESOURCE
USE AND CIRCULAR
ECONOMY
Interaction with other
sustainability topics
a) GHG emissions and energy
resources (energy consumption)
are covered in E1 - Climate
change.
b) Emissions to water, air and soil
and substances of concern are
covered in E2 – Pollution.
c) Water management and water
harvesting are covered in E3 -
Water and marine resources.
d) Interaction of the Group’s
activities and processes with
ecosystems, species and raw
materials are covered in E4 -
Biodiversity and ecosystems.
ESRS 2 – SBM-3
The majority of the Group’s
material IROs are in our upstream
and downstream value chain.
Our use of virgin, non-renewable
materials across the business has
an impact on resource depletion.
However, the durability of our key
product categories, with typical
expected lifespans of approximately
50 years, has a positive impact by
reducing or eliminating the need
for replacement during the lifespan
of a building and therefore can
contribute to reduced demand for
raw materials.
We identified both material risks and
opportunities in relation to evolving
customer behaviour and potentially
increasing demand for solutions with
higher recycled and/or renewable
content and end of life solutions that
can help reduce upstream resource
depletion and material leakage from
the economy.
The Group’s waste from its own
operations was not identified as
material. However, we have a
robust waste management and
monitoring process in place with
the aim to minimise our impact, to
the extent possible.
Material impacts, risks and opportunities related to Resource use and circular economy
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
impact - actual
Value chain stage:
Upstream
Reduce resource
depletion due
to long life
of products
(durability –
typically around
50 years)
The average durability of
the Group’s key building
products (approximately
50 years) prevents the
need for replacement
through the lifespan of a
building and therefore can
reduce the overall material
impacts on the upstream
use of materials.
»
Policy: In 2024, the Group updated
its Environmental Policy, including
considerations and provisions aligned
with circular economy-related IROs.
»
LIFECycle Product Framework -
Input Materials: Input materials,
which is a lever of our circular
economy programme, was designed
to help us increase the use of recycled
and renewable raw materials, in line
with our new recycled and renewable
raw materials target.
»
Innovation: Decarbonisation of our
product portfolio is a key focus area
for innovation. We aim to achieve this
through two main strategies: refining
existing products with lower carbon
and increased recycled content
alternatives and exploring new bio-
based materials and solutions e.g.
QuadCore LEC® insulated panel,
RMG600+ and Tate Grid+ LEC.
Type: Positive
impact – potential
Time Horizon:
Long-term
Value chain stage:
Upstream
Reduce resource
depletion from
increased use of
recycled and/or
renewable raw
materials
The Group has a strategy
to increase use of
recycled and renewable
materials, in production
processes. This could lead
to a reduction in resource
depletion.
Type: Negative
impact – actual
Value chain stage:
Upstream
Resource depletion
from use of non-
renewable and/
or virgin raw
materials
The Group uses virgin,
non-renewable materials
in products across the
business and while certain
materials can be reused or
recycled, this does result in
depletion of resources.
Type: Risk
Time Horizon:
Long-term
Derives from:
Other (market)
Changing
customer
behaviour -
Increased demand
for products with
recycled and /or
renewable content
Increased emphasis being
placed on the recycled
and/or renewable content
when selecting products,
could impact market
share of existing products,
resulting in reduced
revenues.
»
LIFECycle Product Framework -
Input Materials: Input materials,
which is a lever of our circular
economy programme, aims to
increase the use of recycled and
renewable raw materials, in line with
our new recycled and renewable raw
materials target.
»
Innovation: Decarbonisation of our
product portfolio is a key focus area
for innovation. We aim to achieve this
through two main strategies: refining
existing products with lower carbon
and increased recycled content
alternatives and exploring new bio-
based materials and solutions e.g.
QuadCore LEC® insulated panel,
RMG600+ and Tate Grid+ LEC.
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The Group’s strategy to mitigate
impacts, reduce risk and capitalise
on opportunities through policies
and actions is explained in the
following sections.
E5-1 - Policies
As a global manufacturer, we are
committed to helping to accelerate
the use of circularity practices
within our industry. To achieve
this, we have included a dedicated
Circular Economy Section (CES)
within our Environmental Policy.
As part of the DMA process, key
internal and external stakeholder
groups including regulatory
bodies, shareholders, customers,
employees, industry associations
and community organisations were
consulted through surveys and
interviews. Their feedback has been
considered in the CES, along with
circularity principles as outlined in
The UN Environment programme
and World Economic Forum Centre
for Nature and Climate.
The CES aims to further integrate
circular economy into our
environmental strategy and
consider circularity principles
throughout the Group’s operations
and product development
processes. The CES aims to achieve
this by outlining our approach
to managing, preventing and
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Risk
Time Horizon:
Long-term
Derives from:
Other (market)
Changing
customer
behaviour -
Increased demand
for products
with end of life
recycling or reuse
options
Increased customer
emphasis on recyclability
when selecting products,
could impact market
share of current products,
resulting in reduced
revenue.
»
LIFECycle Product Framework-
Cycling: Developing a range of
options to help keep materials and
products that reach the end of their
service life circulating within the
economy, in line with our target. We
aim to do this through partnerships
and the deployment of in-house
mechanical and chemical recycling
facilities, such as Winterswijk’s
glycolysis plant and Derbigum’s No
Roof to Waste Scheme.
Type: Opportunity
Time Horizon:
Long-term
Derives from:
Other (market)
Changing
customer
behaviour -
Increased demand
for products with
recycled and/or
renewable content
Opportunity to take steps
to become a market
leader in the production
of products with increased
recycled/renewable
content, resulting in
increased revenue.
»
LIFECycle Product Framework -
Input Material: Input materials,
which is a lever of our circular
economy programme, aims to
increase the use of recycled and
renewable raw materials, in line with
our new recycled and renewable raw
materials target.
»
Innovation: Decarbonisation of our
product portfolio is a key focus area
for innovation. We aim to achieve this
through two main strategies: refining
existing products with lower carbon
and increased recycled content
alternatives and exploring new bio-
based materials and solutions e.g.
QuadCore LEC® insulated panel,
RMG600+ and Tate Grid+ LEC.
Type: Opportunity
Time Horizon:
Long-term
Derives from:
Other (market)
Development and
deployment of
solutions to divert
products from
landfill and/or
energy recovery
Development and
deployment of solutions
for end of life of products.
»
LIFECycle Product Framework
- Cycling: Developing a range of
options to help keep materials and
products that reach the end of their
service life circulating within the
economy, in line with our target. We
aim to do this through partnerships
and the deployment of in-house
mechanical and chemical recycling
facilities, such as Winterswijk’s
glycolysis plant and Derbigum’s No
Roof to Waste Scheme.
#
Target name
Target year
Target (Million Tonnes)
1
1.5 million tonnes recycled and renewable
raw materials used annually
2030
1.5
Target context and additional information
Overview: Aim to increase our use of recycled and responsibly sourced, renewable materials in our material
inflows. We have set this target to directly address our material IROs related to material inflows. In order to
mitigate negative impacts on biodiversity and ecosystem degradation, the renewable content must be procured
from sources using responsible production practices, in line with our Environmental Policy. The target supports the
embedding of circular design principles and aims to increase the circular material use rate.
Scope: This target aims to increase the recycled and renewable content in the raw materials used in the
manufacture of our products, the scope of which includes materials such as metals, chemicals, mineral fibre and
bio-based materials.
Target monitoring/ progress outlook/ trends: This is a 5 year target, starting in 2025. Progress towards this
target will be made through the supplier engagement programme, increasing the procurement of lower embodied
carbon and high recycled content raw materials.
Linked LIFECycle themes and actions: Input materials.
mitigating actual and potential
impacts, addressing risks and
pursuing opportunities related
to the circular economy. The CES
outlines our aim to increase our
use of secondary and sustainably
sourced, renewable raw materials.
In addition, it also addresses our aim
to follow the waste hierarchy when
managing our waste generation
from our manufacturing processes
and to report in a clear and
transparent manner. As a result,
the CES has a direct impact on the
setting of our targets and actions,
which are managed through our
Planet Passionate programme.
Further detail is provided in
the Actions & Targets section.
Divisional MDs are responsible for
the implementation of the CES,
which is made available to relevant
stakeholders and on our website.
E5-2 - Actions and E5-3 -
Targets
As a global manufacturer,
enhancing the circularity of our
products is a key focus. Our
strategic actions related to resource
use and the circular economy
are underpinned by our LIFECycle
Product Circularity Framework.
This framework is aligned with
internationally recognised
Circular Economy principles. The
LIFECycle Framework shall assist
in embedding these principles
within our operations and our
upstream and downstream value
chain through the lean design for a
circularity approach. The framework
addresses four key themes:
»
Input materials;
»
Factory processes;
»
Extended life models & reuse;
and
»
Cycling.
To achieve our policy objectives the
Group has set voluntary targets,
outlined below, which cover all
Group manufacturing, assembly
sites and R&D centres. Through the
achievement of our targets, we aim
to increase our use of recycled and
renewable raw materials, reduce
waste to landfill, develop recycling
technologies and facilitate the
takeback and reuse or recycling of
our products in key markets. Our
circular economy targets are built
on the recommendations from our
DMA and designed to help address
our material impacts, risks and
opportunities identified. Our targets
have been set considering the
scientific evidence that the current
global rate of natural resource
consumption is at a rate of 1.7
times1 the rate that our planet’s
biocapacity can regenerate and
that accelerating a transition to a
circular economy can greatly help to
alleviate the resource pressures on
our planet.
Input from relevant stakeholders was
considered and targets were set to
mitigate negative impacts and risks.
These targets focus on increasing
our use of renewable and recycled
resources, developing products
with improved environmental
performance and innovating to meet
customer and market demands.
Our strategy aims to contribute to
the acceleration of the transition
to a more circular economy. Waste
data is collected at site level and
reported through our Group wide
sustainability reporting software
platform. Our target to facilitate
product takeback and recycling
schemes has been set based on an
assessment of our material flows
and product families. Further details
for each of the targets are provided
below.
Note 1: World Economic Forum, Circular
Transformation of Industries, 2023.
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#
Target name
Target year
Target
2
Facilitate 20 product takeback and
recycling schemes
2030
20
Target context and additional information
Overview: We aim to improve the end of life or end of first use options for our products and materials. For
construction products, extended life models can take many forms and this target was designed to help us
manage our IROs for resource outflows through a variety of solutions aiming to reduce material leakage from the
economy. It also helps provide another driver for circular product design to consider the use phase and the end of
functional life of our products and materials to improve the durability, disassembly, repairability and recyclability
of our products as we aim to accelerate our progress towards this target.
Scope: This target aims to improve the end of life options for key products in key markets.
Target monitoring/ progress outlook/ trends: This is a five year target starting in 2025. The Group is managing
a number of internal projects including but not limited to the technical development of recycling solutions. These
projects are assisting in building the pipeline of LIFECycle schemes to be offered to the market by 2030.
Linked LIFECycle themes and actions: Extended life models and cycling.
#
Target name
Target year
Target (%)
Progress to date
3
Zero company waste to landfill
(90% reduction from 2020)
2030
90
33%
Target context and additional information
Overview: Prevention of material leakage from the economy is a key focus in the implementation of our
circularity strategy. This target is designed to manage our IROs for resource outflows in relation to waste and
development and deployment of solutions to divert waste from landfill. It was designed to directly prevent waste
going to disposal, the least preferred stage in the waste hierarchy and address improving the circularity of the
end of functional life of the materials we use.
Scope: All manufacturing, assembly and R&D sites within the Group, including business acquired on or prior to
30 September 2024. The impact of acquisitions after this date were estimated and deemed not material at the
Group level.
Target monitoring/ progress outlook/ trends: The Group has reduced waste to landfill by over 33% since 2020
(18,622 tonnes). This includes additional waste to landfill from acquisitions of over 5,000 tonnes since 2020.
Linked LIFECycle themes and actions: Factory processes and cycling.
Target
Waste Hierarchy
1.5 million tonnes recycled and renewable raw materials used annually
Prevention
Facilitation of 20 product takeback and recycling schemes
Preparing for re-use
Recycling
Zero company waste to landfill (90% reduction from 2020)
Other recovery
Disposal
We have completed actions and
planned further steps to support
the progress of our targets in
each theme of the LIFECycle
product framework, along with
the overarching aim to develop
our new and existing products
with circularity principles in mind,
denoted within the framework as
Lean Design for Circularity.
Lean Design for Circularity
Circular economy is considered
as part of our sustainability
focused innovation strategy
during the development of new
products. By incorporating
circular design principles in
construction product design,
we can seek to design processes
with the vision of minimising the
embodied carbon and end of life
impacts of construction products
and projects. At our Global
Innovation Centre, IKON, we have
incorporated a sustainable design
review process into our product
development stage gate process
including considerations for
longevity, reusability, disassembly
and recyclability.
While existing and upcoming policy
and legislative frameworks aim to
incentivise and enable the transition
to a circular economy, models within
the built environment (including but
not limited to reuse, refurbishment
and reverse logistics) are not yet
widespread. This is crucial to enable
circularity at scale in our industry.
Moving forward, we aim to actively
work with industry partners with
the intention of addressing these
issues and will continue to adapt our
approach as the topic evolves.
Lever: Input Materials
The use of recycled, bio-based and
recyclable input materials that are
responsibly sourced is an important
element of our circularity strategy.
We are working to increase our
use of recycled materials whilst
also exploring potential bio-based
raw material options for future
products.
Completed actions:
In 2024, we have achieved our
target to recycle 1 billion PET bottles
annually into our manufacturing
processes, one year ahead of
schedule. This target contributes
towards mitigating resource
depletion by consuming secondary
recycled raw materials.
Steel has been one of the key focus
areas as it significantly contributes
to the embodied carbon of our
insulated panel products. In 2021,
the Group invested in Stegra,
a manufacturer of green steel
(formerly H2 Green Steel), reflecting
its intention to establish a long-term
supply agreement to meet a share
of its future steel requirements.
This will contribute to our recycled
and renewable content target (see
Target #1 above).
In 2023, the Group launched
HemKor®, our first bio-based
insulation product range largely
made of hemp. HemKor® represents
a significant step forward in the
Group’s strategy to combine
advanced material science, bio-
based products and product
innovations which can help to
reduce embodied carbon emissions
in buildings. In 2024, the Group
acquired a controlling stake in
Steico, a wood fibre insulation
manufacturer, increasing the use
of renewable raw materials and
supporting our strategy to offer the
full spectrum of insulation solutions
to our customers.
Planned actions:
Our procurement and sustainability
teams are actively engaging with
suppliers to source raw material
options with lower embodied
carbon and higher recycled or
renewable content. This aligns with
our target of utilising 1.5 million
tonnes of recycled and renewable
raw materials by 2030. For further
information on our supplier
engagement strategy and planned
actions see section E1-1 - scope 3
GHG emissions.
Lever: Factory Processes
We aim to increase resource
efficiency in factory processes
to minimise the generation of
waste. When production waste
cannot be reintroduced back into
our manufacturing processes,
we seek to repurpose and recycle
it into other products thanks to
established partnerships with other
industry stakeholders.
Completed actions:
We have made strong progress
on waste segregation and we are
continually improving our waste
data collection systems and
processes. The strategic focus on
segregation of waste helps to divert
eligible waste streams from landfill.
This allows for increased visibility
on material flows and highlights
areas for improvement. As part
of the effort to improve waste
management and segregation,
various sites have conducted waste
diversion training for employees
which involves education around
good waste management
practices. Implementation of waste
segregation programmes have
reduced municipal waste to landfill
by over 75% since 2020.
Our Brazilian business has
developed a new product called
EcoPIR using remanufactured
production waste from the insulated
panel process. This significantly
reduces waste sent to landfill. Due
to the introduction of this new
process, our site at Araquari has
achieved zero waste to landfill
certification from the Zero Waste
International Alliance. We also work
closely with our waste contractors
where possible to maximise
the diversion of our waste from
landfill. In some cases, we may
use multiple waste contractors to
ensure appropriate management
of different waste streams. The
combination of said actions
completed to date has contributed
to waste to landfill reduction of 33%
since 2020.
Planned actions:
The Group will continue to invest
in improving material efficiency in
our manufacturing processes while
focusing on waste management,
segregation and data collection
systems to drive progress
towards minimising material
leakage from the economy. The
pipeline of projects will focus on
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finding recycling solutions for
traditionally difficult to recycle
materials (including technologies
to separate heavily mixed waste
materials), finding new reuse
and remanufacturing pathways
for manufacturing waste and
finding new partnerships to
support the development of
circular infrastructure where
existing recycling pathways are
not available. Our planned actions
will aim to continue to reduce
and ultimately minimise material
leakage from our factory processes
in line with achieving our zero
company waste to landfill target
by 2030.
Lever: Extended Life Models
and Reuse
Extended life models or reuse of
products is critical to reduction of
material leakage from the economy
and can take many forms. Due
to construction and demolition
practices and current regulations, it
can be challenging to find ways to
reuse or extend the life of a building
product.
Planned actions:
With the introduction of our new
target, we are planning to develop
alternative end of life solutions
for our products in key markets to
help reduce material leakage from
the economy. These solutions will
include takeback schemes, support
of industry extended producer
responsibility programmes and
collaboration with key partners
to help us achieve our goals, in
accordance with the aims set out
in the CES and in line with our
target of facilitation of 20 product
takeback and recycling schemes by
2030. Multiple internal and external
stakeholders have been engaged
in developing a roadmap for the
development of solutions across
key European and US markets in
product sets including insulated
panels, daylighting and data and
flooring products.
Lever: Cycling
Where feasible, we strongly
advocate for reuse over recycling.
However, as this is not always
possible, we are also exploring and
implementing cycling options to
keep materials within the economy.
We are involved in ongoing projects
to develop and implement chemical
and mechanical cycling solutions
for products and materials at each
stage of production, installation and
end of life, as well as finding new
purposes for waste generated in
production.
Completed actions:
An example is our partnership
with BelterTech, a company that
makes products containing up to
85% recycled content from post-
consumer and post-industrial
waste, which help recycle PIR
(polyisocyanurate) insulation waste.
BelterTech uses the insulation waste
to make a variety of products
including cement fill, ceiling tiles
and panel products.
The Group has also developed a
chemical recycling process which
is taking place on two of our
manufacturing sites: Castellbisbal
(Synthesia) and Winterswijk
(Insulation). The Winterswijk
recycling process has the capacity
to manage up to 500 tonnes of
insulation waste from production,
annually.
Planned actions:
Focusing on a 2030 time horizon,
the Group will expand the ongoing
projects to support operations
in other regions, which are
currently underway and outlined
in the completed actions above.
The Group has now built both
mechanical recycling solutions
and chemical recycling solutions
for insulation materials with the
construction of further recycling
facilities envisaged. The Group
has plans to build more recycling
facilities which will significantly
contribute to our target of 20
takeback and recycling schemes
and zero waste to landfill targets
by 2030.
E5-4 - Resource inflows
Our 273 manufacturing sites produce
a wide range of products for the
construction sector, utilising a variety
of raw materials.
The use of sustainably sourced,
biological raw materials is
an important element of our
circularity strategy, as stated in the
CES. In 2024, 95% of our biological
raw materials are certified as
sustainably sourced by PEFC
(Programme for the Endorsement
of Forest Certification) and FSC
(Forest Stewardship Council). We
also aim to increase our use of
recycled raw materials, supporting
the achievement of our target.
Since 2020, we have recycled the
equivalent of over 4 billion PET
bottles into our manufacturing
processes.
The table below provides further
detail on our resource inflows. Our
packaging materials have been
excluded from this disclosure as
they are not deemed a material
resource inflow.
Metric
Unit
2024
Total weight of technical materials
Tonnes
3,982,224
Total weight of biological materials
Tonnes
352,744
Weight of secondary reused or recycled content
Tonnes
316,341
Percentage of secondary reused or recycled content
%
7
Our total weight of technical and
biological raw material disclosure
is based on a variety of data
sources. Information related to the
procurement of our key raw materials
is collated monthly at group level.
Further raw material information
is collected annually, with the
balance of our raw material volumes
estimated based on our spend.
The disclosure of secondary raw
materials used throughout the year
is calculated based on product or
supplier specific recycled content
information, where available. If
specific recycled content data is
not available, industry averages for
the reporting period are applied.
We are continuously improving
our data collection and reporting
methodologies, with the aim of
increasing the accuracy of our
disclosure each year.
E5-5 - Resource outflows
Products and materials
The Group’s divisions manufacture
a variety of products for numerous
applications including, but not
limited to: insulation solutions (rigid
boards, bio-based, technical),
insulated panels, structural steel
products and systems, facades,
ceiling systems, raised access
floors and daylighting solutions.
Our reporting boundary for E5-5
encompasses the Group’s key
product groups and excludes
packaging as it is not deemed to be
a material resource outflow.
The Group takes actions to ensure
products can be aligned with
circular economy principles by
considering circular design principles
during product development, where
possible, such as designing for
durability, disassembly, recyclability
and repairability. The methodology
to determine product alignment to
circularity principles, detailed below,
included desktop research and
reference to our third party verified
Environmental Product Declarations
(EPDs), which can be found on our
website.
Circularity principle - Durability
Our insulation and insulated panel
products have long reference
service lives, typically around 50
years, with the remainder of our
product portfolio between 25-60
years. This reflects the fact our
products have been designed
to last for the typical lifespan of
building projects, depending on the
end-use conditions and material
specification and therefore have
been designed for durability.
Circularity principle - Disassembly
While current construction and
demolition practices do not always
prioritise disassembly, certain Group
products, such as insulated panels
and raised access floor products,
are prefabricated modular single
component units and site experience
has shown that they can be safely
disassembled for reuse or recycling.
The design of our products for ease
of disassembly also contributes to the
repairability of buildings where they
are installed.
Circularity principle - Recyclability
Certain products have been designed
considering recyclability with the aim
that their main constituent materials
can be separated at end of life to
maximise recycling potential. The
recyclability of our products vary
depending on the type of material
and application. Our product
portfolio also includes many products
which consist mainly of a single
material (such as steel, aluminium
or polycarbonate) which generally
can be recycled (or reused) by the
relevant industry. Our insulated
panels and insulation boards consist
of a variety of insulation materials
combined with steel or other facers.
The recycling of insulated panels
involves the recycling of the metal
and the insulation material which
may require further processing. The
separation of insulation materials
from the metal can be executed
manually, therefore such processing
can be undertaken at reclamation
plants. The metal components can
be recycled by the relevant metal
industry. Wood-based insulation
products, including Steico wood
fibre insulation boards form an
important part of our full spectrum
insulation product portfolio and
can also be re-introduced back into
production processes at end of life.
While recycling solutions exist for
insulation materials, they are not yet
considered widely recycled in practice.
However, we have set targets and
are undertaking initiatives (outlined
in the Targets and Actions Section)
to develop and support end of life
solutions for our products.
Circularity principle - Repairability
The repairability is not presented as
there are currently no international
standards or agreed metrics for
classifying the repairability of building
materials and construction products.
Our products, like all building
products, are designed to last. The
current available methodologies
for classifying repairability are not
applicable to building materials
because a discussion on repairability
will need to consider how the product
will contribute to the available circular
design choices and the repairability
of the building as a whole rather than
just the repairability of the product on
its own. Without these considerations
and without recognised international
standards or metrics, a meaningful
representation of repairability is
not possible therefore we have not
included repairability as a metric at
this time.
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Expected durability and recyclable content of key product groups
Key Product Group1
Expected Durability2
Recyclable Content3
Insulated panels1, 2, 3
40-60
31-69%
Insulation solutions1, 2, 3
30-50
0%
Wood fibre insulation1, 2, 3
50
81-91%
Structural steel products & systems1, 2, 3
60
100%
Facades1, 2, 3
50
97%
Ceiling systems1, 2, 3
50
100%
Raised access floors1, 2, 3
25
99%
Polycarbonate daylighting solutions1, 2, 3
25-30
100%
While every effort has been made to ensure the accuracy and reliability of the information in this table, it is provided for general reporting
purposes only and should not be construed as definitive or exhaustive. The data and assumptions are subject to change and the information
does not constitute a guarantee of any specific product performance, durability or otherwise. Please refer to specific product guidelines and
recommendations for such information.
1 The above information for each Key Product Group is indicated based on a sample of products reviewed, within the product category and ranges
included where necessary to provide indication of variety of product parameters within said category.
2 Expected durability as stated above is indicated based on the Reference Service Life (RSL), durability or warranty, stated in EPDs, product
datasheets or brochures, where available.
3 Recyclable content is based on product material composition stated in EPDs, where available, or material composition stated in product
datasheets and brochures. Conservatively, only the metal portion of our insulated panel products has been included as recyclable, based on
product with thickness ≥ 100mm.
Description of methodologies,
criteria and assumptions used to
calculate data in relation to the
table above:
The expected durability is based
on the published reference service
life obtained from a representative
sample of product EPDs for
each Key Product Group. The
representative sample includes at
least one product from each major
product with similar performance
and characteristics.
The recyclable content is based
on the published material
composition data obtained from a
representative sample of product
EPDs for each Key Product Group.
The representative sample includes
at least one product from each
major product family with similar
performance and characteristics.
The recyclable content presented in
the table encompass closed loop or
open loop materials that are widely
recyclable in practice and at scale.
However, for insulation solutions,
although recycling technologies
exist and are available, we have
conservatively assumed these
materials to not yet be widely
recyclable in practice and therefore
they do not contribute to the
recyclable content in the table.
Waste reporting
The waste metrics provided below
encompass all of the Group’s
manufacturing and assembly sites,
as well as R&D centres. To ensure
accuracy and completeness of our
waste data, we have established a
comprehensive Environmental Data
Reporting Procedure, which sets
reporting requirements and overall
guidance for data collation and
reporting. Waste data is monitored
at the site level, with all applicable
sites required to report both
hazardous and non-hazardous
waste streams, along with the
relevant treatment methods, on a
monthly basis. Each waste fraction
entry is supported by applicable
evidence, increasing our confidence
in data accuracy. Data is collated
and reviewed at the group level by
the Group Sustainability team and
subject to an Internal Audit review.
Metric (tonnes)
2024
Total amount of waste generated
172,261
Total amount by weight diverted from disposal
119,980
Non-Hazardous Waste
118,796
Preparation for reuse
-
Recycling
118,631
Other recovery operations
165
Hazardous Waste
1,184
Preparation for reuse
-
Recycling
1,178
Other recovery operations
6
Total amount by weight directed to disposal
52,281
Non-Hazardous Waste
44,571
Incineration
32,635
Landfill
11,936
Other disposal operations
-
Hazardous Waste
7,710
Incineration
7,110
Landfill
600
Other disposal operations
-
Total amount of non-recycled waste
52,452
Total percentage (%) of non-recycled waste
30.4%
Total amount of hazardous waste generated
8,895
Total amount of radioactive waste generated
-
Note 1. Boundary: Whole Business includes manufacturing, assembly and R&D sites within the Group, excluding acquisitions made after 30
September 2024. The impact of acquisitions after this date were estimated and deemed not material at the Group level.
The relevant waste streams and waste composition is presented in the table below which represents the Group’s key
waste streams covering 94% of our total waste by volume.
Relevant waste streams and materials present in waste
Metals
Municipal, construction and demolition waste
Insulation materials
Chemicals
Paper and cardboard
Wood and wood production waste
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ESRS S1 - Own Workforce
ESRS 2 - SBM-3
The material IROs related to our
own workforce have been identified
through a DMA. In alignment with
the ESRS standards, this section
includes only employees with
direct employment contracts,
encompassing full-time, part-time
and temporary staff across various
roles and functions. In accordance
with the one year transition
exemption, non-employee workers,
such as agency staff and sub-
contractors, are excluded from the
scope of this section.
We focus on key positive impacts,
including employee engagement,
learning and career development
and health and safety, through
our People Passionate programme,
which includes initiatives addressing
core people policies, including our
commitment to Human Rights.
While still in its first phase, the
programme has provided valuable
insights into workforce risks. The
nature of the Group’s operations
has the potential, in some
instances, to expose employees,
such as those directly engaged
in the manufacturing process, to
increased health and safety risks.
Each division already implements
comprehensive approaches tailored
to meet the specific needs of their
people and organisation.
Through risk assessments,
stakeholder engagement and
feedback collection, we have
developed a more informed
understanding of how different
roles, activities and individual
characteristics contribute to these
risks. This ongoing process informs
our proactive risk management
approach, helping us tailor our
internal controls and processes to
address the unique challenges faced
by different groups, ensuring the
well-being of all employees across
various contexts and functions.
In terms of negative impacts,
while no systemic issues have been
identified, any material negative
impacts related to occupational
health and safety would likely
manifest as individual incidents.
To address these risks, we have
implemented strict internal
controls, mandatory safety
training and a strong safety culture
supported by the rollout of ISO
45001 certification. ISO 45001 is an
internationally recognised standard
for occupational health and safety
management systems, designed to
improve employee safety, reduce
workplace risks and create safer
working conditions. Additionally, no
material impacts on the workforce
have been identified related to
our transition to climate-neutral
operations.
Through the ongoing development
of the People Passionate
programme, we have gained
insights into risks affecting
different workforce groups by
utilising stakeholder engagement,
risk assessments and feedback
mechanisms. This helps us better
understand and address the unique
needs and challenges faced by our
workforce.
The Group engaged and
collaborated with an external
consultant to develop a human
rights risk assessment framework
which included screening potential
risks of forced labour and child
labour within our operations. To
identify countries with elevated
risks, we consulted indices such as
the Global Slavery Index (GSI) by
Walk Free and Children’s Rights in
the Workplace by UNICEF.
Based on this assessment, the
Group has no operations in
countries considered at significant
risk of incidents of forced labour
or compulsory labour. However,
United Arab Emirates, China and
Vietnam, are considered to be
at significant risk of incidents of
child labour. Our presence in these
regions is limited, with less than
0.1% of Group employees located in
China. Building on this assessment,
we are updating and deploying
due diligence processes to assess
countries and/or Group sites at
significant risk of incidents of forced
labour or child labour.
Our assessment concluded that
the potential salient human rights
risks of forced labour and child
labour scored lower relative to other
risks. This is due to relevant internal
controls and policies, including The
Group’s Human Rights Policy and
Human Rights Charter, which apply
universally across all our businesses,
helping to mitigate localised risks
associated with forced or child
labour. For further information,
regarding how the Group applied
the indices through our global
approach to human rights please
refer to our Human Rights Policy.
The relationship between material
risks and opportunities arising
from workforce impacts is closely
aligned with the Group’s strategy
and business model. Our people
are central to the success of all four
of our strategic pillars; Innovation,
Planet Passionate, Completing the
Envelope and Globalisation. Failure
to manage workforce health, safety
and wellbeing could lead to material
negative impacts, while effectively
managing these aspects drives
innovation, productivity and long-
term business success. Furthermore,
our policies on ethical labour
practices enhance our reputation
and align with stakeholder
expectations, ultimately supporting
value creation.
CSRD SUSTAINABILITY
STATEMENT
Zénith de Strasbourg
Strasbourg, France
Light, Air + Water
Ecofil lighting vault;
Ecofeu DV 110
ventilation rooflight
SOCIAL
INFORMATION
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Material impacts, risks and opportunities related to own workforce
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Own Operations
Career
progression
through
training and
development
The Group offers
comprehensive learning
and development
programmes, which
support employee career
progression. These
programmes foster skill
development, develop
leaders and facilitate
transitions from
academia to industry or
to more senior positions.
»
People Passionate: The Group’s People
Passionate programme encapsulates key aspects
of talent management and engagement such
as performance evaluation, career development
and opportunities for upskilling.
»
Talent, Management and Leadership
Development programmes:
- PEAK (Programme for Executive Acceleration
in the Company) targets middle to senior
managers to enhance leadership diversity and
expand the pool of future senior leaders in line
with the Group’s global growth.
- Executive Development Programme, in
partnership with INSEAD, supports the
Group’s senior leaders to engage with
enterprise level goals in a more collaborative
way while transforming their leadership
capabilities to drive significant long-term
growth.
- A suite of tailored programmes for frontline,
middle and senior managers is offered
globally.
- Graduates participate in the Yours to Shape
development programme.
- Early Career staff can undertake programmes
such as Developing Talent Programme and
Explore.
»
Succession planning: The Group regularly
reviews its pipeline of leaders to support the
growth of the business as part of our Human
Capital risk assessment. The Group Head of
Leadership Development is responsible for
succession planning.
»
Careers portal: The Group’s internal career
portal provides an open and transparent
forum for employees to learn about and
apply for career opportunities throughout the
Group. The Group has a strong track record of
fostering internal promotions across divisions,
demonstrating its commitment to employee
growth and development.
»
Policies: Through key policies such as the
Group’s Inclusion and Diversity Policy and our
global Code of Conduct, the Group sets out the
Group’s commitment to equal opportunities,
integrity, honesty and compliance. Supporting
these are the Group’s Board Diversity Policy.
»
Steering groups: The Group established a
Group Inclusion & Diversity (I&D) Forum in
September 2023.
»
Surveys: The Group’s Global People Pulse Survey
gathers feedback with a view of identifying any
risks in the workplace related to diversity, equity
and inclusion.
Type:
Potential Risk
Time Horizon:
Short-term
Triggered by:
Our Impacts
Effective
talent
management
There is a potential
risk that some sites
might not effectively
manage talent
attraction, retention
and development. If
talent management
is inefficient, it could
lead to the departure
of skilled employees,
subsequently increasing
costs related to hiring
and training new
talent and operational
inefficiencies.
Type: Potential
Opportunity
Time Horizon:
Short-term
Triggered by:
Our Impacts
Learning and
development
programmes
The Group’s
comprehensive learning
and development
programmes support
career progression,
fostering skill
development, aiding
retention and ensuring a
skilled workforce for the
future.
Type: Positive
Impact - actual
Value chain:
Own Operations
Employee
engagement
programme
The Group is
continuously engaging
and implementing
various programmes
that promote wellbeing
of employees and a
collaborative working
culture.
Type: Positive
Impact - potential
Time Horizon:
Short-term
Value chain:
Own Operations
Equal
opportunities
The Group can
contribute to the
promotion of inclusive
policies in the areas
of recruitment,
training and career
development.
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Own Operations
Occupational
health and
safety
Initiatives promoting
health and safety can
enhance employees’
overall occupational
health and safety.
»
ISO certifications: 122 of the Group’s
manufacturing sites are accredited to ISO
45001.
»
Internal control mechanisms: The Group
closely monitors the performance of its health
and safety framework, using KPIs to track
adherence and identify areas for improvement.
Immediate and decisive action is taken in
response to any instances of non-compliance.
The Group Health and Safety Auditor provides
monthly reports and regular updates, including
a best practice league table, ensuring
continuous improvement and accountability
across the Group.
»
Training and awareness: A robust health and
safety framework is in place throughout the
Group’s operations requiring all employees to
complete formal health and safety training on a
regular basis.
»
Internal communications and network: A
Group health and safety reporting platform
was created to share best practice guidance,
safety alerts and report near misses and
safety concerns, ensuring that the entire
Group remains informed of key issues and
improvements. All safety professionals have
access to this platform, which also includes
detailed policies. Additionally, annual safety
forums bring together safety professionals to
review KPI performance, address challenges and
foster a community focused on sharing best
practices.
»
Culture: The development of a strong
safety culture is driven by management and
employees at every level and is a core part of
doing business with integrity.
Type: Negative
Impact - actual
Value chain:
Own Operations
Occupational
health and
safety
Insufficient actions to
ensure health and safety
would negatively affect
employees’ overall
occupational health and
safety.
Type:
Potential Risk
Time Horizon:
Short-term
Triggered by:
Our Impacts
Occupational
health and
safety
Failures in health and
safety can lead to
injuries, illnesses, or
even fatalities among
employees, resulting in
significant human and
financial consequences.
Type: Potential
Opportunity
Time Horizon:
Short-term
Triggered by:
Our Impacts
Occupational
health and
safety
The Group recognises
that a safe workplace
builds trust, improves
performance and boosts
employee retention.
Type: Positive
Impact - actual
Value chain:
Own Operations
Established
Human Rights
Policy and
due diligence
procedures
The Group has
established
comprehensive policies
and procedures ensuring
safe and ethical labour
practices but also
significantly reducing
the risk of modern
slavery and human
trafficking.
»
Internal and external policies: The Group has
established clear standards for ethical practices
and sustainability expectations across our own
workforce through key policies such as the
Group’s Human Rights Policy and the Code of
Conduct.
»
Reporting mechanisms: The Group provides
anonymous reporting channels that allow
employees to raise concerns including but not
limited to ethical or human rights violations.
These mechanisms, outlined in our Human
Rights Policy, ensure that concerns can be
raised confidentially and are addressed through
appropriate processes.
Type: Potential
Risk
Time Horizon:
Short-term
Triggered by:
Our Impacts
Human rights
breaches
Potential breaches
of human rights
regulations could lead
to reputational damage,
litigation and may
impact the Group’s
ability to attract labour.
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ESRS 2 - SBM-2 - Interests
and views of stakeholders
The Group recognises its own
workforce as key stakeholders,
whose interests, views and rights are
integral to shaping our strategy and
business model. People are a critical
driver of the Group’s success and
our People Passionate programme
further integrates the interests and
views of our workforce into both our
business model and strategy.
S1-1 – Policies
The below policies apply to the
Group, its subsidiaries, joint
ventures and their directors, officers
and employees. These policies cover
all our businesses, wherever they are
located. The Group policies can be
accessed on our website:
https://www.kingspangroup.com/
en/about/policies/.
The Group policies relevant to the
material IROs related to our own
workforce, for which divisional MDs
are responsible, include:
The People and Organisation Policy
establishes global principles for
the implementation of our People
Passionate programme, ensuring
a balance between fair treatment
of employees and business needs.
The programme includes key
aspects of talent management and
engagement such as recruitment,
onboarding, training and
development, career progression,
opportunities for upskilling
and leadership development.
This supports effective talent
management, career progression
and learning and development
programmes.
The Code of Conduct, applicable
to all Group businesses, details
our commitment to responsible
behaviour and compliance with
laws and regulation. It outlines
how we commit to do all that
is reasonably practicable to
prevent personal injury and to
protect against work hazards
and environmental risks to
employees. This commitment is
reinforced through the Group’s
health and safety framework,
which implements the ISO 45001
standard to support robust
management of workplace
safety and risk prevention. This
supports occupational health
and safety. The Code of Conduct
also promotes our core values of
honesty, integrity and compliance
with the law, guiding our
behaviours and decision-making.
The Human Rights Policy outlines
our commitment to upholding and
promoting human rights values
in all aspects of our operations.
Aligned with International Labour
Organisation (ILO) conventions
and UN principles, it includes
mechanisms for reporting breaches
of human rights. For more
information on the salient human
rights risks we seek proactively to
identify, prevent or mitigate see our
Human Rights Policy.
The I&D Policy ensures inclusion,
diversity, equal opportunities,
equity and a sense of belonging
across our business. It promotes
a culture that values differences
and aims to eliminate workplace
discrimination. This policy supports
equal opportunities and fosters
a supportive and equitable
environment for all employees. As
part of our zero-tolerance approach
to discrimination in any form, we
are committed to encouraging
inclusion and diversity among our
workforce. While our policies do
not explicitly list specific grounds
for discrimination, we enforce
a comprehensive and robust
framework to ensure all employees
are treated fairly and with respect.
This framework is upheld through
communication of the policy,
training and awareness programmes
to promote understanding and
adherence. To ensure employees are
treated fairly, ultimate responsibility
for the policy’s implementation rests
with the divisional MDs. Additionally,
we provide access to remedy
through anonymous reporting
channels, including our global
confidential independent hotline,
which empowers employees to raise
concerns in a safe and
secure manner.
S1-2 - Processes for
engaging with own
workers and workers’
representatives about
impacts
Employee engagement played
a key role in shaping the People
Passionate programme. In 2023,
we established a Global Steering
Group representing all divisions
to contribute to the design and
implementation of this global
programme.
In 2023, we collaborated with
employee representatives to
establish a European Works
Council (EWC), which serves as
a platform for engaging with
our employees at the European
level on business strategy,
development, employment matters,
investments and transnational
issues. The EWC represents over
13,200 Group employees across 24
countries. Additionally, our Human
Rights Policy is aligned with ILO
conventions and UN principles
that outlines our commitment to
upholding and promoting human
rights values across all operations.
Employee engagement across
the Group is actively managed
at the local level, with the
frequency depending on the
type of interaction. There is
also positive interaction with
employee representatives and
works councils at the local
level. Internal communications
are supported by a network of
communication champions across
each division. The effectiveness
of the engagement is assessed
through various means, including
employee surveys and regular
review meetings. By continuously
integrating feedback from our
workforce into our strategic people
programmes, we ensure that our
strategies and actions are informed
by their perspectives, leading to
more effective management of
actual and potential impacts.
The divisional MDs hold ultimate
responsibility for ensuring active
employee engagement.
Through our People Passionate
programme, we are actively
working to identify and
address workforce risks, across
varying employee categories
which may include groups
potentially vulnerable to impacts
or marginalisation. In the
programme’s first phase, valuable
insights have been gathered,
and we are continuing to refine
our engagement processes to
better understand and support
these groups.
See section ESRS 2 SBM-2 for
more information on stakeholder
engagement.
S1-3- Processes to
remediate negative
impacts and channels
for own workers to raise
concerns
The Group is committed to
achieving an open working
environment in which employees
feel able to report directly to their
line manager. However, in rare
circumstances when an employee is
not comfortable with that or feels
unable to do so, concerns may be
reported to Group legal teams or
through EthicsPoint. EthicsPoint
is a comprehensive, confidential
and entirely anonymous reporting
tool created by NAVEX Global to
assist management and employees
to work together in addressing
misconduct in the workplace, all
while cultivating a positive work
environment. For further details,
please refer to Section G1-1
regarding procedures that protect
the Group’s anonymous and
independently run hotline.
S1-4 - Actions
The Group has developed a
framework to address workforce
engagement wellbeing, career
development, health and safety
and ethical labour practices. These
initiatives are guided by senior
leadership to ensure that the Group
continues to foster a positive and
supportive workplace environment.
Below are the key actions that
support the Group’s approach to
addressing own workforce impacts,
risks and opportunities.
People Passionate Programme
The People Passionate programme,
endorsed by the Group CEO, is the
Group’s global initiative, launched
in 2023, focused on enhancing
employee engagement, career
development and wellbeing.
Phase 1 of the programme, which
will run from 2024 to 2026, was
communicated to the Group in 2023.
This programme builds on the
Group’s past successes while
identifying areas for improvement,
aiming to create a workplace where
employees feel empowered to
contribute their unique strengths
and perspectives. The programme
emphasises employee performance
and development, leadership
development and upskilling
opportunities, supporting the
Group’s ambition of maintaining
a highly engaged and productive
workforce. Progress and
effectiveness are monitored by
the Global Steering Group, with
key metrics such as retention rates
being reviewed regularly to ensure
alignment with business objectives.
The Group identifies appropriate
actions through a combination of
employee feedback and regular risk
assessments. These processes allow
the Group to proactively address
potential risks and capitalise
on opportunities for workforce
development and wellbeing.
Examples of dedicated resources
include, but are not limited to,
dedicated human resources teams,
digital learning platforms, employee
feedback tools such as pulse surveys
and leadership and management
development programmes aligned
to the Group’s Business drivers.
Learning and Development
Programmes
The Group offers a range of
learning and development
initiatives designed to support
talent progression, upskilling and
leadership development.
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These initiatives foster a culture
of continuous learning and
development, ensuring employees
are supported to perform their
current role and have the tools
they need to grow within the
organisation. Programme
evaluations including impact
evaluations as well as annual
talent forums and regular feedback
mechanisms allow the Group to
evaluate the effectiveness of these
programmes and adjust them
based on evolving workforce needs.
The Group’s divisions track metrics
internally, such as improving
employee engagement scores.
Tracking these metrics allows the
Group to assess the success of
its initiatives and make informed
adjustments as needed. Examples
of dedicated resources include,
but are not limited to, learning
and development teams, digital
learning platforms, mentorship
programmes and financial support
for further education.
Occupational Health and Safety
The Group takes a proactive
approach to occupational health
and safety, implementing the
ISO 45001 standard across our
manufacturing facilities. This
comprehensive safety framework
includes regular training, internal
audits and prompt corrective actions
when non-compliance is identified.
The Group continuously tracks
progress on ISO 45001 certification
through internal KPIs, including
monthly reports and best practice
league tables, provided by the
Group Health and Safety Auditor.
These help to ensure continuous
improvement, accountability and
alignment with the ISO 45001
standard. Health and safety is
prioritised at every level of the
organisation, with management
and employees actively promoting
a strong safety culture. To support
these efforts, the Group has
dedicated divisional health and
safety professionals.
Further initiatives to deliver positive
impacts include the creation of a
Group health and safety reporting
platform to share best practice
guidance, safety alerts and report
near misses and safety concerns,
ensuring that the entire Group
remains informed of improvements
and developments. All safety
professionals have access to this
platform, which also includes
relevant policies. Additionally,
our annual safety forums bring
together our safety professionals
to review KPI performance,
address challenges and foster a
stronger culture of safety through
collaboration and the sharing
of best practices. Examples of
dedicated resources include, but are
not limited to, health and safety
personnel, comprehensive training
programmes, provision of safety
equipment and investments in new
safety technologies.
Human Rights Policies and
Due Diligence
The Group has developed a Human
Rights Policy and Human Rights
Charter which includes an insight
into the ongoing development
of due diligence processes that
promote and safeguard ethical
labour practices across our
operations. This policy is designed
to mitigate human rights violations
where possible, such as modern
slavery and human trafficking
and to promote ethical standards
throughout the workforce. The
Group provides employees with
anonymous reporting channels
through the confidential
independent hotline, allowing
concerns about ethical or human
rights violations to be raised
and addressed confidentially. All
reported cases are investigated and
findings are shared with the Audit
& Compliance Committee. This
approach ensures that the Group
maintains high ethical standards
while mitigating the risks associated
with human rights breaches.
The Group’s commitment to human
rights not only aids in mitigating
potential risks but also enhances
our reputation as a responsible
and ethical employer, aligning
with core values, contributing to
talent attraction and retention and
aligning with global sustainability
initiatives. Examples of dedicated
resources include, but are not limited
to, the confidential independent
hotline for anonymous reporting and
dedicated compliance teams.
S1-5 - Targets
The Group’s People Passionate
programme is aligned with the
Group’s strategy and material
IROs related to own workforce.
The programme is a multi-year
initiative which aims to address
critical workforce priorities, with
the first phase running from 2024
to 2026, focusing on performance,
learning and career development,
health and safety and ethical
labour practices.
The next phase, spanning 2027
to 2029, will be informed by a
comprehensive employee feedback
exercise planned for 2026. This
complements current feedback
mechanisms, including employee
surveys and regular management
evaluations and reinforces a
continuous feedback loop, ensuring
that the relevant people policies
and initiatives remain responsive
to material IROs related to own
workforce.
The Group tracks the effectiveness
of its policies through qualitative
assessments such as surveys,
feedback and management
reviews. While specific quantitative
targets and a base year have
not yet been adopted, insights
gathered during this phase
will guide the development of
measurable targets and baselines
in future phases. This phased
approach ensures the programme
evolves to meet workforce needs
while remaining aligned with the
Group’s long-term strategy.
Programme
Objective
Target
Yours to Shape
»
Build a pipeline of leaders for now and into the future
»
Provide opportunities for graduate employees to form
networks across the Group
»
Complement on the job functional development
Graduates are hired directly from
university into a full–time roles in
all divisions across the Group.
Explore (New
for 2025)
»
Develop skills for self-leadership, interpersonal
effectiveness and team working
»
Learn more about prioritising and being productive
»
Develop core skills like change and resilience
»
Learn about an approach to career development
For employees hired in the last 5
years and are at an early stage in
their working life.
Ignite
»
Transition from Peer to Boss
»
Inspiring others to deliver results
»
Planning and prioritisation
»
Communicating with impact
Frontline team leaders or
managers or about to become a
manager for the first time.
Accelerate
»
Creating high performing teams
»
Communication and engagement
»
Strategic workforce planning
»
Agility and pace
For team managers or managers
of team leaders.
Safety
Leadership
Programme
(New for 2025)
»
Effective communication for safer workplaces
»
Coaching and motivating at the front line
»
Delegation and goal-setting at the front line
»
The role of conflict and change in safety
Employees with safety leadership
responsibilities.
Evolve
»
Creating high performing organisations
»
Energising teams and organisations
»
Collaborating to achieve shared purpose
»
Creating and sustaining fulfilling workplaces
Manager of managers, director,
member of leadership teams.
Transform
(New for 2025)
»
Develop enterprise level leadership skillset, mindset and
toolkit
»
Align organisational goals and drive strategic direction
across the business
»
Leading at enterprise level, align resources, drive cross-
functional collaboration to deliver outstanding results
»
Lead complex transformations and integrations and
tackle enterprise-level challenges successfully
Senior leaders with significant
leadership responsibility.
PEAK
»
Leading in a global business
»
Grow and empower others
»
Cross group networking and collaboration organisation
»
Strategic thinking, vision and execution
Middle to senior leaders currently
responsible for effectively leading
and managing significant teams
and committed to even more
significant roles within the
Group.
Executive
Leadership
Development
in partnership
with INSEAD
»
Engage with enterprise level goals
»
Lead and drive significant long terms growth
The Group’s most senior leaders.
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S1-6 - Characteristics
of the undertaking’s
employees, S1-8 -
Collective bargaining
coverage and social
dialogue and S1-9
Diversity metrics
The Group’s reported employee
metrics encompass all businesses
controlled by the Group as of
the end of 2023, with additional
estimates reflecting acquisitions
made in 2024. This encompasses
employees with direct employment
contracts, including full-time,
part-time and temporary staff.
Employee numbers are expressed
as headcount.
In line with CSRD guidance, the
Group defines top management as
individuals occupying positions one
and two levels below the CEO. This
includes divisional MDs and their
direct reports.
The Group collates workforce data
quarterly at the group level. Data
collection is conducted at the
global divisional level, with each
division preparing and submitting
consolidated reports. Each division
is required to submit a standardised
template to the Group, detailing
workforce metrics, including
employee numbers, turnover and
diversity figures.
To further improve the accuracy,
consistency and efficiency of data
collection, an enterprise-wide
People and Organisation IT system
is being implemented across the
Group. This system will streamline
the process of recording and
reporting employee data, gradually
replacing the existing approach
and enhancing the integration of
workforce data across divisions.
The average number of persons
employed by the Group can be
reconciled with the information
reported in the Financial Statements
under Note 3.
Key employee figures for 2024:
Category
Female
Male
Other
Not
Disclosed
Total
Total number of employees1,5
5,664
20,671
-
2
26,337
Percentage of total employees
22%
78%
Number of permanent employees1,5
5,351
19,449
-
2
24,802
Number of temporary employees1,5
301
1,201
-
-
1,502
Number of non-guaranteed hours employees1,2,5
12
21
-
-
33
Average number of employees3,5
25,401
Total number of leavers4,5
4,520
Employee total turnover rate %3
17.8%
Diversity metrics:
Category
2024
Number of males and females in top management 1,5
179 / 31
Percentage of males and females in top management
85% / 15%
Employees under 30 1,5
4,540
Employees aged 30–50 1,5
14,206
Employees over 50 1,5
7,591
Number of employees in countries representing at least 10% of total number of employees:
Country
Total
Poland1,5
3,533
United Kingdom1,5
3,220
Collective bargaining coverage and social dialogue:
In 2024, 71%5 of the Group’s total employees within the European Economic Area (EEA) were covered by collective
bargaining agreements. This figure excludes employees in non-EEA countries, in line with the one-year transition
exemption for non-EEA data collection.
Coverage Rate
Collective Bargaining Coverage:
EEA Countries Only (>10% of
Total Employees)1,5
Social Dialogue and Workplace
Representation: EEA Countries
Only (>10% of Total Employees)1,5
0-19%
20-39%
Poland
40-59%
Poland
60-79%
80-100%
1 The number of persons employed by the Group at 31 December 2024.
2 Non-guaranteed hours employees are employed by the undertaking without a guarantee of a minimum or fixed number of
working hours.
3 The average number of persons employed by the Group in the financial year.
4 Total number of employees who left the division during the reporting period, excluding those who transferred within the
business and excluding contracted agency staff (non-employees).
5 Includes estimates for acquisitions completed in 2024.
The Group’s current methodology does not support a breakdown of employee numbers by gender at the country level. However,
we are actively developing our data collection processes and plan to provide this breakdown in future reporting cycles.
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S1-10 - Adequate wages
All employees across the Group
are paid an adequate wage, in
line with applicable benchmarks.
For the purpose of defining an
adequate wage, we use the
national minimum wage in each
jurisdiction, as specified by national
legislation or collective agreements.
The adequate wage indicator
is calculated by comparing the
wages of employees earning the
lowest wage (basic wage plus fixed
additional payments) with market
data on the minimum wage in the
respective area.
The Group is committed to ensuring
that all employees receive at
least the legal minimum wage in
every country where we operate.
As outlined in our People and
Organisation Policy, the Group
provides fair compensation for work
performed, including overtime,
in accordance with local laws,
individual contracts, or union
agreements. We regularly monitor
local wage standards to maintain
full compliance with applicable laws
and regulations.
In alignment with our Human Rights
Policy, this approach to assessing
and maintaining adequate wages
helps to mitigate potential salient
human rights risks related to wages
and benefits. By ensuring that all
employees are fairly compensated
for their work, the Group reduces
the risk of economic exploitation,
poverty-level wages and inequitable
treatment across its global
operations. Beyond meeting legal
requirements, we actively assess our
global compensation packages to
ensure they remain competitive and
aligned with market benchmarks.
This reflects our commitment
to protecting human rights
and fostering a responsible and
ethical workplace.
S1-14 - Health and
safety metrics
The Group’s health and safety
figures pertain exclusively to
employees in our manufacturing
sites, as these are the primary
focus of our health and safety
management system. Our total
number of work-related accidents
includes Group employees with
a contract of employment, as
well as agency workers and sub-
contractors. Agency workers are
defined as individuals employed
by an agency that has been hired
to supply staff for specific tasks
over a short period, without
placing the individual on a short-
term employment contract with
the Group. Sub-contractors are
employed by third parties and hired
to perform specific tasks, either
for a fixed price or a daily rate, but
are not on short-term employment
contracts with the Group.
The Group tracks and monitors
health and safety data on a
monthly basis at the group level.
Data is collected monthly at the
divisional level, with each division
required to submit a standardised
template to the Group Health
and Safety Auditor. This template
details key metrics, including the
number of total recordable and
lost time accidents, which are then
reported to senior management to
ensure continuous oversight and
improvement.
We are deeply saddened to report
that during the year, a fatal
accident occurred at one of our
recently acquired Steico facilities.
Training has been undertaken and
policies updated to incorporate
learnings from this tragic incident
and to strengthen our commitment
to health and safety.
Health and safety metrics:
Unit
2024
Share of workforce covered by the health and safety
management system1
%
84
Fatalities2
Number
1
Total recordable work-related accidents3
Number
523
Total recordable rate of work-related accidents4
Per million hours worked
12.9
1 The percentage of workforce covered by the health and safety management system pertains exclusively to employees in our
manufacturing sites, as these are the primary focus of the system.
2 Fatalities refer to the number of employees who lost their lives due to work-related injuries or ill health.
3 Injuries that result in more than one day away from work.
4 Assumes 8-hour workday and 225 workdays per year.
Note: Boundary includes all businesses controlled by the Group as of the end of 2023, as well as any material acquisitions made
in 2024.
S1-16 - Compensation
metrics (pay gap and
total compensation)
The below metrics encompasses
employees with direct employment
contracts, including full-time,
part-time and temporary staff.
Total remuneration data is collected
at the global divisional level. The
standardised template includes
base salary, bonuses paid during
the relevant period and benefits-
in-kind. Additionally, it incorporates
the total fair value of all annual
long-term incentives per employee.
This standardised and transparent
approach ensures consistency
across divisions and comparability
of data.
In line with ESRS standards, the
calculation for the metrics adheres
to detailed guidance to ensure
compliance and accuracy. For the
gender pay gap, we leverage the
data obtained in calculating total
remuneration to assess the average
gross hourly pay levels of male and
female employees. The gender pay
gap shows the pay gap between
men and women without adjusting
for other factors impacting
pay levels (e.g. career level and
work experience).
The formula specified within the
ESRS standards is then applied to
determine the difference, expressed
as a percentage of the average
male gross hourly pay.
The table below illustrates the key
compensation metrics for 2024,
including the gender pay gap
and the ratio of the highest-paid
individual to the median annual
remuneration for all employees
(excluding the highest-paid
individual), covering the reporting
period from 1 November 2023 to 31
October 2024.
2024
Gender pay gap1
3.75%
Total remuneration ratio2
121
1 The difference between the average gross hourly pay of male and female employees, expressed as a percentage of the average
male gross hourly pay. Average gross hourly pay represents total remuneration.
2 Total remuneration ratio represents the ratio of the highest paid individual’s remuneration to the median total remuneration of
all employees. Total remuneration includes base salary, bonus, cash benefits, non-cash benefits and long-term incentives i.e.
share options.
Note: The metrics are based on the period from November 2023 to October 2024. As this differs from our financial reporting
period timeline, the figures should be considered an estimate.
S1-17 - Incidents, complaints and severe human rights impacts
The information presented below has been gathered using the methodologies specified in sections S1-6 and G1-1
of this report. Section S1-6 details the process for collecting complaints raised through local channels, such as
reporting directly to a line manager. In contrast, section G1-1 outlines the procedure for handling complaints
submitted via EthicsPoint, the Group’s confidential and independent hotline.
The Group is committed to creating an open working environment where employees feel comfortable reporting
issues directly to their line manager. However, in exceptional cases where an employee is uncomfortable or unable
to do so, concerns can be reported to Group legal teams or through EthicsPoint, the Group’s anonymous and
independently managed hotline. Whilst all complaints are fully investigated not all are substantiated.
Unit
2024
Complaints of incidents of discrimination, including harassment1,3
Number
36
Complaints filed through channels for people to raise concerns1, 2,3
Number
147
Complaints filed to National Contact Points for OECD Multinational Enterprises
Number
0
Fines, penalties and compensation for damages as a result of the incidents
and complaints of discrimination
€
0
Severe human rights incidents, including cases of non-respect of UN Guiding
Principles and OECD Guidelines for Multinational Enterprises
Number
0
Fines, penalties and/or compensation severe human rights issues and incidents
€
0
1 Including complaints filed through EthicsPoint.
2 Excluding incidents of discrimination, including harassment.
3 Includes estimates for acquisitions completed in 2024.
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ESRS S2 – WORKERS IN
THE VALUE CHAIN
ESRS 2 - SBM-3
The material IROs related to
workers in the value chain have
been identified through a DMA,
which relied on internal business
knowledge and focused on our tier 1
direct suppliers. This approach was
particularly crucial in identifying
and assessing IROs. No specific
groups within these suppliers have
been identified as disproportionately
impacted at this stage. For this
section, workers at the Group’s
tier 1 direct suppliers are included
in scope. With the development
of our SHREDD process we are
actively working to identify ways to
continuously improve the process
to identify risk where possible and
meaningfully seek to impact change
in our supply chain.
To address positive impacts, we
base our efforts on our policies
and supplier due diligence. We
monitor the ESG performance of
our upstream suppliers and provide
internal training on human rights to
embed ethical standards and ensure
compliance with international
labour laws.
As a global leader in high-
performance insulation and building
envelope solutions, we rely on a
global network of suppliers. With
273 manufacturing sites, the Group
operates within a complex supply
chain, depending on the practices,
policies and standards of our
partners to ensure compliance with
ethical labour practices. Workers
involved in the extraction and
processing of key raw materials such
as metals, chemicals and stonewool
are essential to our supply chain but
may face risks related to working
conditions and human rights
violations, including but not limited
to forced labour or child labour
in certain regions and industries.
To address these risks, the Group
has developed and continues to
enhance its supplier due diligence
processes, promoting ethical
sourcing and aiming to ensure
compliance with international
labour laws and sustainability
standards, ultimately reducing these
risks and creating opportunities for
improving labour conditions across
our supply chain. Country indices
were referenced to assess social
and environmental risk such as the
Global Slavery Index (GSI) by Walk
Free and Children’s Rights in the
Workplace by UNICEF.
The Group’s strategy and
business model are aligned with
managing the impacts, risks and
opportunities related to suppliers’
workers. Supplier engagement,
data tracking and collaboration are
integral to our Planet Passionate
strategic pillar, ensuring that
our building envelope solutions
deliver long-term, sustainable
performance. In line with our
mission to accelerate a net zero
emissions built environment with
people and planet at its heart,
we work to ensure that our supply
chain reflects our commitment
to ethical labour practices and
environmental responsibility. We
periodically hold supplier forums,
attended by the Group CEO, to
articulate the Group’s strategy and
strengthen relationships with our
key partners.
Material impacts, risks and opportunities related to workers in the value chain
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Upstream
The Group
promotes
sustainable
supply chains
through its Code
of Conduct and
Supplier Policy
The Group promotes
sustainable supply chains
through a detailed code
of conduct and supplier
policy, utilising ESG rating
tools such as EcoVadis to
monitor ESG scores across
its supply chain.
»
Due diligence: The Group has
developed a due diligence process that
includes supplier audits, corrective
action plans and the use of various
ESG rating tools to monitor supplier
sustainability performance.
»
Internal and external policies: The
Group has established clear standards
for ethical practices and sustainability
expectations across our supply
chain through key policies, including
our Human Rights Policy, Code of
Conduct, Supplier Policy and SHREDD
Policy.
Type: Positive
Impact - actual
Value chain:
Upstream
Current/
emerging
regulation
The Group observes the
evolving regional and
jurisdiction-specific supply
chain regulations.
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Upstream
Established
human rights
policy and
due diligence
procedures
The Group has established
comprehensive policies
and procedures helping to
mitigate adverse human
rights impacts across its
supply chain.
»
Training programmes: The Group
provides training programmes for
internal teams on its human rights
policies.
»
Engagement and collaboration:
The Group promotes continuous
improvement by prioritising
collaboration and engagement
to enhance supplier practices and
further align them with the Group’s
sustainability initiatives.
»
Regulatory compliance: The Group
actively stays informed and up to
date with evolving regional and
jurisdiction-specific supply chain
regulations, ensuring that our policies
and practices reflect the latest
requirements and best practices.
»
Reporting mechanisms: The Group
provides anonymous reporting
channels that allow workers in the
value chain to raise concerns about
ethical or human rights violations.
These mechanisms, outlined in our
Supplier Policy, ensure that concerns
can be raised confidentially and
are addressed through appropriate
processes.
Type: Potential
Risk
Time Horizon:
Short-term +
Medium-term
Triggered by:
Dependency
Risks of human
rights breaches
Potential breaches of
human rights regulations
could lead to reputational
damage and litigation
issues.
Type: Potential
Opportunity
Time Horizon:
Short-term +
Medium-term
Triggered by:
Our Impacts
Policies and
procedures
mitigating
human rights
risk
The Group’s policies help
to prevent human rights
violations and ensure
ethical labour practices,
reducing modern slavery
risks. Promoting human
rights and protection for
confidential independent
hotlines boosts the Group’s
reputation, enhancing
business relationships and
stakeholder trust.
ESRS 2 - SBM-2 - Interests
and views of stakeholders
As detailed in section ESRS 2, SBM-2
of this report, the Group recognises
suppliers as a key stakeholder
group. We seek to build and
maintain long-term relationships
with key suppliers and contractors.
This vision assists in aligning goals
and standards to address strategic
global issues, emerging trends and
ultimately our customer needs,
while also respecting the interests,
views and rights of workers
employed by our suppliers.
S2-1 Policies
The below policies apply to the
Group, its subsidiaries, joint
ventures and their directors, officers
and employees. These policies
cover all our businesses, wherever
they are conducted. The Group
expects the same high standards
of its contractors, suppliers and
other business partners. The
Group policies can be accessed
on our website: https://www.
kingspangroup.com/en/about/
policies/.
The Group promotes a sustainable
supply chain through its Supplier
Policy (also referred to as the
Supplier Code of Conduct),
Environmental Policy and Human
Rights Policy. These policies,
approved by the Board of Directors
and available on our website, aim
to minimise environmental impacts,
human rights risks, including child
labour, human trafficking and
anti-slavery and ensure compliance
with health, safety and applicable
laws. Suppliers are encouraged to
highlight to the Group any areas of
legal or ethical concern, allowing for
constructive dialogue to resolve gaps
and deficiencies. The divisional MDs
take ultimate responsibility for the
implementation of these policies.
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Our internal SHREDD Policy, also
approved by the Board, outlines
our supplier human rights and
environmental due diligence
process, ensuring accountability
and transparency across business
functions. This policy helps us
identify and prioritise actual and
potential risks to human rights and
the environment related to our
business activities, products and
relationships. Through SHREDD, we
proactively seek to address, prevent
and mitigate impacts on individuals,
communities and the environment.
Furthermore, the policy is dynamic,
allowing us to stay abreast of
current and emerging regulations,
ensuring our due diligence processes
remain robust and compliant.
SHREDD is aligned with the
following guidelines and principles:
»
OECD Guidance for
Multinational Enterprises
(MNCs) on Responsible Business
Conduct (RBC) (OECD, 2023);
»
UN Guiding Principles on
Business and Human Rights
(UNGP, 2011); and
»
International Labour
Organisation (ILO) Declaration
on Fundamental Principles and
Rights at Work (ILO, 1998)
We continue to closely monitor the
channels designed to capture where
a breach of human rights may have
occurred or is occurring. Please see
section S2-4 for further details.
S2-2 - Processes for
engaging with value
chain workers about
impacts
The Group seeks to build and
maintain long-term relationships
with key suppliers and contractors.
Engagement with workers
employed by the Group’s suppliers
occurs through various stages
and formats. The views of workers
are conveyed indirectly through
a range of supplier management
activities, which occur at varying
frequencies depending on their
nature. Ongoing processes
such as contract negotiations,
surveys and self-assessment
questionnaires take place as
part of routine operations, while
broader engagements, including
supplier forums, conferences and
interviews, are conducted on a
quarterly, semi-annual, or annual
basis, depending on their purpose.
The insights gathered from these
indirect engagements help inform
our decisions and actions aimed
at managing actual and potential
impacts on value chain workers.
The effectiveness of these
engagement channels are
assessed through ongoing two-
way communication, including
open dialogue and regular
interactions with key suppliers and
stakeholders. This open dialogue
not only creates opportunities for
value chain workers to share their
perspectives, particularly those who
may be vulnerable to impacts or
marginalisation, but also supports
the ongoing development and
refinement of our due diligence
process. Additionally, the Group
engaged with NGOs during the
DMA process to gain further insight.
By developing these processes, the
Group aims to create opportunities
for value chain workers to
collaborate and share their
perspectives, especially those who
may be vulnerable to impacts or
marginalisation. The divisional MDs
take ultimate responsibility
for the implementation of the
SHREDD Policy.
For more on agreements related
to respecting the human rights of
workers, please refer to section S2-1,
which outlines our policies aligned
with ILO conventions.
See section ESRS 2 SBM-2 for
more information on stakeholder
engagement.
S2-3- Processes to
remediate negative
impacts and channels for
value chain workers to
raise concerns
The Group has channels for workers
employed by our suppliers to raise
concerns.
As highlighted in the Group’s
Human Rights Policy and
Supplier Policy there are various
channels available, which include
confidential independent platform
for stakeholders to raise concerns.
Both policies are publicly available
and can be accessed on the Group
website. Third parties can contact
us directly by visiting our website
for further contact information.
The Group does not currently
assess if workers in the value
chain are aware of and trust these
existing structures. For further
details, please refer to Section
G1-1 regarding procedures that
protect the Group’s confidential
independent hotline and processes.
S2-4 – Actions
The Group’s SHREDD Policy outlines
our commitment to ensuring that
our suppliers adhere to the highest
standards of human rights and
environmental sustainability. This
policy applies to the Group, its
subsidiaries, joint ventures, directors,
procurement teams and their key
raw material suppliers. The SHREDD
Policy establishes a due diligence
process, which identifies, prioritises
and mitigates risks related to human
rights violations and environmental
impacts across our supply chain.
This process is aligned with global
frameworks such as the OECD
Guidelines, UN Guiding Principles
and ILO Standards, ensuring
accountability and transparency
in all supplier engagements. The
SHREDD process itself serves as an
action plan and resource to manage
material IROs related to value chain
workers. This entails continuous
identification, prioritisation
and mitigation of potential
environmental and human rights
IROs. Where relevant, additional
action plans may be required based
on the outcomes of this process to
ensure that any emerging risks are
effectively addressed.
The SHREDD process is built on
three key phases:
1. Identification: Suppliers are
assessed based on inherent risk
factors such as raw material
type, country of manufacture,
spending levels and their
environmental, social and
governance (ESG) performance.
This process helps identify
high-risk suppliers for further
due diligence.
2. Prioritisation: Suppliers
are categorised by risk level
(low, medium or high), which
determines the level of due
diligence required. High-
risk suppliers are prioritised
for further assessment and
mitigation measures.
3. Due Diligence Execution:
A range of due diligence
mechanisms, including audits,
corrective action plans and
regular reviews, are employed
for high-risk suppliers to address
potential human rights and
environmental risks. The remedy
approach employed will depend
on the level and type of risk
identified. These mechanisms
help mitigate risks such as forced
labour and child labour, ensuring
that ethical standards are
upheld across the supply chain.
As referenced in our Supplier
Policy, the Group reserves the
right to terminate the supplier
relationship in the event that
the supplier fails to uphold the
standards as contained in the
Policy. Training and awareness
programmes on the SHREDD
Policy will be provided to
employees where applicable.
The SHREDD process will be
regularly reviewed and refined to
ensure it continues to support the
values and objectives of the Group
and evolving regulations. Please
refer to section S2-2 for details on
how we track effectiveness.
To reduce the risk of contribution
to material negative impacts
on workers employed by our
suppliers, the Group has developed
its SHREDD Policy in alignment
with the Code of Conduct which
highlights our commitment
to acting responsibly and in
compliance with the law whilst
maintaining high standards of
ethics, honesty and integrity in
all dealings with stakeholders.
The Group prioritises long-term,
sustainable partnerships that align
with its values.
The Group has allocated the
necessary resources to support the
SHREDD process, including, but not
limited to, subscriptions to various
ESG rating platforms, allotting
additional personnel and arranging
structured collaboration across
divisions and functions within the
global Group.
The Group remains committed to
addressing severe human rights
issues. The business closely monitors
channels designed to identify
potential or actual breaches of
human rights and the mechanisms
for reporting such issues are clearly
outlined in our Supplier Policy and
Human Rights Policy. Through these
channels and mechanisms, we have
not yet identified any potential or
actual breaches of human rights.
S2-5 – Targets
The Group is in the early phase of
implementing its SHREDD process,
which was developed and released
across the Group in 2024. The
SHREDD process is focused on
mitigating risks related to human
rights violations and environmental
impacts across our supply chain.
Specific quantitative targets have
not yet been adopted, but the
Group is focusing on developing its
due diligence framework to identify,
prioritise and mitigate risks.
Effectiveness is tracked through
qualitative reviews such as supplier
assessments and risk evaluations.
These methods help us monitor
how well the SHREDD process is
addressing material impacts, risks
and opportunities for workers
employed by our suppliers, without
relying on formal numerical targets
at this early stage.
The Group’s ambition is centred
on continuous improvement,
using insights gathered during the
implementation of the SHREDD
process to guide our strategy.
As formal targets have not yet
been set, a base year for measuring
progress is not in place. However,
insights from this phase will
inform future target-setting and
evaluation.
ESRS S3 – AFFECTED
COMMUNITIES
ESRS 2 - SBM-3
The material IROs related to
affected communities have been
identified through a DMA. The
scope for this section generally
includes all affected communities
that could be materially impacted
by our operations or through our
value chain. These communities
are diverse and numerous, given
that we have a trading presence
in over 80 countries with a wide
range of supplier types and sizes.
Affected communities considered
in the assessment include those
adjacent to our manufacturing
facilities, those along our value
chain, including both endpoints
and indigenous peoples. Based
on the results of the DMA we
conducted, the actual impacts on
affected communities are deemed
not material for the purposes of
this Statement.
The Group does not operate in a
higher risk sector (e.g. agribusiness,
oil and gas), hence its impacts to
the rights of indigenous peoples are
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minimal, if any. The Group is not
in the business of land acquisition
and does not exploit the land
for resources. The Group is not
connected with activities related to
adequate food or housing and does
not have security-related impacts.
There are no ongoing complaints,
identified incidents involving the
rights of indigenous peoples, legal
exposure, or experienced boycotts
by indigenous peoples.
Assessing and understanding the
full spectrum of our IROs across
our value chain will take time and
the support from publications
and/or tools that are not currently
available. Consequently, for this
reporting period, we applied the
precautionary principle to account
for potential impacts in our value
chain where evidence is lacking. As
a result, we included a potential
negative impact covering both
our upstream and downstream
value chain as material. We will
continue to refine our DMA and
due diligence processes and expect
more dedicated external tools will
become available to enable us to
adequately identify impacts in our
upstream and downstream value
chain. No material opportunities
were identified.
Any potential negative impacts
across the Group’s value chain
related to local communities and
indigenous peoples are not directly
connected to our business model
and strategy, but rather via the
business activities of our suppliers
and downstream partners. True to
our mission of helping accelerate a
net zero emissions built environment
with people and planet at its heart,
we aim to stay vigilant, monitor any
relevant developments and take
appropriate action, to the extent
possible, if such a material impact
ever occurs.
Material impacts, risks and opportunities related to affected communities
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Negative
Impact -
potential
Time Horizon:
Short-term
Value chain:
Upstream and
downstream
Upstream
and
downstream
potential
negative
impacts on
indigenous
and local
communities
Includes potential negative
impacts across our value
chain (both upstream and
downstream) relating to
environmental factors.
»
Due diligence: The Group has developed
a due diligence process that includes but
is not limited to supplier audits, corrective
action plans and the use of various ESG
rating tools to monitor supplier sustainability
performance.
»
Internal and external policies: The Group
has established clear standards for ethical
practices and sustainability expectations
across our supply chain through key policies,
including our Human Rights Policy, Code
of Conduct, Supplier Policy, Corporate
Citizenship Policy, Environmental Policy and
SHREDD Policy.
»
Reporting mechanisms: As highlighted in
our Human Rights Policy, there are various
channels available for affected communities.
Third parties can contact the Group directly
by visiting our website for further contact
information.
ESRS 2 - SBM-2 - Interests
and views of stakeholders
As detailed in section ESRS 2,
SBM-2 of this report, the Group
recognises local communities and
NGOs as key stakeholder groups.
We actively engage with various
key stakeholder groups, including
NGOs, sponsorship and donation
partners and local communities
to better understand their views,
interests and expectations. We
did not engage directly with local
communities in the DMA process,
however, their views were considered
indirectly via the divisional business
representatives who took part in the
DMA process to help identify and
assess our IROs. They were included
in the process due to their knowledge
and work with our local communities
and understanding of local-specific
circumstances. Moving forward, we
aim to develop a more formalised
process for feedback via our Planet
Passionate Communities initiative.
S3-1 – Policies
As detailed in section SBM-3 of this
report, material impacts related to
local communities include potential
negative impacts arising from
environmental factors across both
our upstream and downstream
value chain. The Group applies the
precautionary principle to account
for potential impacts where evidence
or data may currently be insufficient.
Consequently, we do not yet have a
Group policy that directly manages
this potential negative impact
related to affected communities.
We aim to establish such policies
within a dynamic and evolving
framework, aligned with the
availability of reliable data and best
practices in the industry. While we
cannot provide a definitive timeline
at this stage, we continue to refine
our DMA and due diligence processes
to enhance our ability to identify and
address impacts across our value
chain. This reflects our commitment
to adopting policies that effectively
manage material risks and
opportunities while promoting
responsible practices aligned with
our sustainability objectives.
Following the materiality assessment
of our impacts on indigenous
peoples (see previous page), we
have determined that, at present,
our policies do not include specific
provisions for preventing and
managing impacts on indigenous
peoples. We will continue to monitor
this area to ensure our policies
remain aligned with evolving
materiality and stakeholder
expectation.
While several policies indirectly
manage material impacts on
affected communities, these
primarily focus on the Group’s own
operations rather than addressing
upstream or downstream activities.
These policies set standards for
ethical practices and provide
reporting mechanisms. They
include the Code of Conduct,
Supplier Policy, Environmental
Policy, Corporate Citizenship Policy
and SHREDD Policy.
Our Human Rights Policy outlines
our commitment to upholding and
promoting human rights values in
all aspects of our operations and
aligns with ILO conventions and UN
principles. We continue to monitor
and maintain channels for reporting
and addressing potential breaches
of human rights, as detailed in the
policy. Through these channels
and mechanisms, we have not
yet identified any cases of non-
compliance with these principles
relevant to affected communities.
While we apply the precautionary
principle to address potential
impacts where evidence or data
may be insufficient, we continue to
refine our due diligence processes
and will review and expand the policy
accordingly to address interactions
with affected communities across
our value chain, if required.
S3-2 – Processes for
engaging with affected
communities about
impacts
The Group promotes open dialogue
and understands the importance
of engagement and collaboration
with its local communities. We
engage in dialogue with local
communities via several initiatives,
the most significant being our
Planet Passionate Communities
initiative. Launched in 2021, the
Planet Passionate Communities is
the philanthropic arm of our 10-year
sustainability programme, Planet
Passionate. Through this initiative,
we aim to support people and
communities around the world.
On a local level, our businesses are
devoting a portion of their time and
resources to support community
projects. In 2024 we completed over
100 projects.
The scope, frequency and process
for engagement differs across
our Group, influenced by several
factors. Engagement with local
communities can be on an ad-
hoc basis or through more formal
initiatives. A site representative
is responsible for overseeing
community engagement and
escalating any feedback or
concerns to senior management
if required.
An example of engagement would
be for infrastructure projects.
During the implementation of a
key environmental project, a 1.5
MWh wind turbine installation
at our site at Holywell, UK, we
engaged extensively with the
local community throughout the
process which ran from 2011 – 2017.
An example of a more formal
engagement initiative is our Planet
Passionate Community Fund in
Ireland. We are currently reviewing
our processes and will update them
in 2025 if required to potentially
include an assessment of the
effectiveness of our engagement
processes.
The Group did not have an active
conflict with a local community
(including indigenous peoples) on
matters related to their economic,
cultural, civil or political rights
during the reporting year and
historically has not been involved
with any breaches or litigation
relevant to the aforementioned
human rights issues.
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For more information on
stakeholder engagement, see
section ESRS 2 SBM-2.
S3-3 – Processes to
remediate negative
impacts and channels for
affected communities to
raise concerns
The Group has channels for
affected communities to raise
concerns. These channels are
localised across the Group and
may vary across divisions to
ensure accessibility and relevance
for each specific market. The
Group ensures that each of our
273 manufacturing facilities
provides a means for local
communities to voice concerns,
such as via a site address, phone
number, or email. Tracking and
monitoring of concerns raised
is a site and business level
responsibility, potential concerns
can be escalated to Group level for
support if required.
The Group’s Human Rights Policy
is publicly available and can be
accessed on the Group website.
Third parties can contact us directly
by visiting our website for further
contact information. The Group
does not currently assess if affected
communities are aware of and
trust these existing structures.
However, the Group Code of
Conduct incorporates our policy for a
confidential and independent hotline
and explicitly outlines protections
against retaliation for individuals
who raise concerns or report issues.
For further details, please refer to the
disclosure provided in accordance
with ESRS G1-1.
We recognise the need to
engage actively and cooperate in
addressing and, where appropriate,
remediating adverse impacts which
we may have caused or contributed
to through our own activities.
We will review the processes that
are currently in place across the
businesses in 2025. Based on the
outcome of this review, if required,
we will update processes to ensure
that processes to provide or enable
remedy in the event of material
negative impacts are available and
effective in their implementation
and outcomes.
S3-4 – Actions
The Group is committed to ensuring
our suppliers uphold our rigorous
standards for ethical behaviour and
environmental sustainability. As
part of our commitment, the Group
applies the precautionary principle
to account for potential impacts
related to affected communities
where evidence or data may
currently be insufficient.
As outlined in section S3-1, we
currently do not have a Group
policy specifically addressing
this potential negative impact
on affected communities.
Consequently, no direct action is in
place to mitigate these potential
impacts within our upstream
value chain at this time. However,
consistent with our approach to
such policies, we aim to develop
targeted actions as part of a
dynamic and evolving framework,
informed by the availability of
reliable data and industry best
practices.
The Group’s SHREDD process was
developed and released across
the Group in 2024. Its primary
objective is to proactively address,
prevent and mitigate impacts on
human rights, the environment and
associated individuals, communities
and ecosystems. To help mitigate
potential negative impacts related
to affected communities, the
Group is dedicated to the continued
development and roll-out of our
SHREDD process. For further details,
please refer to section S2-4 Actions
section of this report.
In addition, the Group remains
committed to addressing severe
human rights issues. The business
monitors channels designed
to identify potential or actual
breaches of human rights and the
mechanisms for reporting such
issues are clearly outlined in our
Human Rights Policy. Through these
channels and mechanisms, we have
not yet identified any potential or
actual breaches of human rights.
S3-5 – Targets
We currently do not have any actual
impacts on local communities.
We haven’t identified any relevant
issues or concerns that would be
material at the Group level and
therefore have not deemed it
necessary to set targets pertaining
to local communities and
indigenous peoples. As we continue
to refine both our IRO process and
our process of engaging with local
communities, we will re-examine
the setting of a relevant target in
the coming years.
Nevertheless, for information on
targets related to the Group’s
SHREDD process, see section S2-5
Targets of this report.
ESRS S4 – CONSUMERS
AND END-USERS
ESRS 2 - SBM-3
The material IROs related to
consumers and end-users have
been identified through a DMA.
Our consumer base is wide ranging
and includes a diverse cohort of key
stakeholders across the construction
service and maintenance of buildings
and manufacturing industry.
This includes but is not limited to
professionals involved in building
design (e.g. architects, engineers,
building designers), installation
(e.g. contractors or installers),
management (e.g. building owners
or facilities managers) as well as
those responsible for the operation
and maintenance of buildings and
infrastructure (e.g. local authorities).
Based on our end-market mix and
the context outlined in the ESRS
standards (ESRS S4, AR 7), the
Group, through its due diligence
process, believes that its operations
do not involve consumers or end-
users with characteristics, contexts,
or activities that would place
them at greater risk of harm. We
will continue to develop our DMA
process, aiming to ensure that
any emerging risks to stakeholders
are appropriately identified and
addressed.
To address positive impacts, we
focus on continuous product
innovation, customer service
improvements and the digitalisation
of the construction industry,
enhancing product safety, quality
and satisfaction.
We are continuously developing
our understanding of risks for
specific groups through ongoing
stakeholder engagement,
comprehensive risk assessments
and feedback mechanisms.
As per ESRS S4, DR 10 classifications,
the most relevant category for
our consumers is: consumers
and/or end-users who depend on
accurate and accessible product-
or service-related information
to avoid potentially damaging
use of a product or service. Risks
associated with product failure and
product marketing exist. The Group
recognises this and have initiatives
to address these risks as described
in the initiatives in the table below.
The Group’s strategy and business
model are aligned with managing
impacts on consumers and
end-users. Product quality and
safety are central to our strategic
pillars, ensuring that our building
envelope solutions deliver long-
term performance and safety
for our customers. To address
these impacts, our business
model continually adapts through
investments in product innovation
and digital engagement, as
demonstrated by the development
of tools like BIM (Building
Information Modelling) and the
3D Viewer. Through mitigating
potential risks such as product
failure or marketing integrity issues,
we’ve shaped our strategy with
robust compliance measures and
rigorous product testing throughout
our operations.
Digital adoption plays a crucial
role in enabling greater efficiency
and sustainability across
the manufacture, delivery,
construction and operation of the
built environment.
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IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Potential
opportunity
Time Horizon:
Medium-term
Triggered by:
Our impacts
Leverage
technology
The Group could
leverage technology to
enhance its customer
service capabilities by
progressively surfacing
products digitally, making
it easier for customers
to find, specify, buy and
track them.
»
3D Viewer 2.0 & Mobile App: Launched
advanced 3D Viewer and complementary
mobile app to improve product
visualisation and on-the-go access for
customers.
»
Digital Calculation Tools: Introduced a
Panel & Fastener calculator to streamline
product specification, enhancing accuracy
and ease of use.
»
BIM & Digital Integration: Expanded
use of BIM and Digital Project Delivery to
improve customer workflows and integrate
products seamlessly into projects.
»
Devleo Platform Expansion: Added
new apps to the Devleo platform,
offering tailored digital tools for design,
specification and operations.
ESRS 2 - SBM-2 - Interests
and views of stakeholders
As outlined in section ESRS 2,
SBM-2 of this report, the Group
recognises consumers and end-
users as key stakeholders whose
interests, views and rights play
a significant role in shaping our
strategy and business model. Two
of our four key strategic pillars,
Planet Passionate and Innovation,
are informed by consumer feedback
and engagement.
The Customer Experience
Programme places customers
at the centre of the Group’s
operations, aiming to improve all
aspects of the business to better
serve them. In 2018, we launched
the Worldwide Voice of Customer
programme, led by our Global
Customer Experience team. This
initiative enables us to listen more
closely to our customers and
gain a deeper understanding of
their experiences across the 200+
businesses and diverse brands
within our Group. This programme
helps the Group track evolving
customer expectations and identify
areas for improvement, driving
changes in products, services,
processes and advancing the
Group’s digital agenda.
S4-1 Policies
The below policies apply to the
Group, its subsidiaries, joint
ventures and their directors, officers
and employees. These policies apply
to all our businesses, wherever they
are conducted. The Group policies
can be accessed on our website:
https://www.kingspangroup.com/
en/about/policies/.
The Group Product Compliance
Policy, publicly available and aligned
with the Group Code of Conduct,
ensures the safety, quality and
integrity of products through a
comprehensive framework. It
emphasises product safety and
quality by adhering to legal and
industrial standards, supported by
compliance risk assessments and
procedures aligned with the ISO
37301 standard.
This policy is further supported
by an internal-facing Group
Compliance Manual. This manual
comprehensively covers all aspects
of the implemented processes
across the Group, including the
requirement for a Register of
External Certificates and Test
Reports for each product. Marketing
information is controlled and
maintained in accordance with
the MIM, ensuring ethical and
transparent representation of
products. The manual is reviewed
annually to ensure continuous
improvement and compliance.
In addition, the policy ensures
accurate product information
through robust documentation and
governance, while mitigating risks
of product failure via confidential
reporting mechanisms that enable
early issue identification and
resolution. It upholds the integrity
of product marketing by embedding
the Group’s core values of integrity
and honesty into operations.
Together, these measures effectively
manage critical product impacts
across the Group’s operations.
By leveraging technology to
enhance our customer service
capabilities, the Group can
progressively surface products
digitally, making it easier for
customers to find, specify, buy and
track them. This approach aligns
with our commitment to accurate
product information and ethical
marketing practices outlined in
our policies. Furthermore, the
continuous review and improvement
of our compliance processes ensure
that we can adapt and integrate
new technological advancements
while maintaining high standards of
product safety and integrity.
Sustainability for the Group’s
consumers and end-users is also
Material impacts, risks and opportunities related to consumers and end-users
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Downstream
Safety and
quality of
products
The Group has a positive
impact on the lives of
consumers through the
provision of products and
services that are safe and
of high quality.
»
Dedicated Oversight Structures:
The Group has established dedicated
structures and processes to oversee
product quality and compliance, with the
Audit & Compliance Committee reviewing
their effectiveness and monitoring
compliance culture.
»
Global Compliance Programme: The
Group has implemented a global product
compliance and marketing programme,
led by the Group Head of Internal Audit &
Compliance, following ISO 37301 standards
and supported by internal audits and
Board oversight.
»
Policies: The Group’s Product Compliance
Policy outlines our commitment to
the safety, quality and integrity of our
products. This policy is further reinforced
by an internal-facing Group Compliance
Manual, which details the processes
implemented across the Group. The
manual also includes the requirement
for maintaining a Register of External
Certificates and Test Reports for each
product.
»
Marketing Integrity: The Group launched
an updated Group Marketing Integrity
Manual in 2023, providing a compliance
framework for marketing materials and
websites, with adherence audited by the
Group Internal Audit function.
»
Environmental Claims Guide: The Group
introduced a global Environmental Claims
Guide to ensure all sustainability-related
marketing claims are accurate and robust.
»
Product Testing & Safety: New
products undergo rigorous testing at our
Global Innovation Centre, IKON and Fire
Engineering Research Centre (FERC),
adhering to ISO 9001 standards, to ensure
product safety and quality.
»
Continuous Improvement: The Group
regularly reviews and updates compliance
and quality management systems,
with progress tracked and reported to
the Audit & Compliance Committee,
including specific targets for continuous
improvement.
Type: Positive
Impact - actual
Value chain:
Downstream
Product
Information
Providing accurate
product information
is crucial for ensuring
structural integrity and
optimal performance.
Type: Potential
Risk
Time Horizon:
Short-term
Triggered by:
Our impacts
Product failure
Potential functional failure
of our products could lead
to health and safety issues
alongside reputational
damage. Dedicated
structures and processes
are in place to manage
and monitor product
quality.
Type: Potential
Risk
Time Horizon:
Short-term
Triggered by:
Our impacts
Integrity
of product
marketing
Risk of reputational
damage and/or litigation
issues resulting from mis-
marketing incidents. The
Group Marketing Integrity
Manual (MIM) establishes
a compliance framework
for product marketing
materials/websites and is
subject to internal audit.
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This ongoing auditing process,
coupled with rigorous internal
testing at IKON and FERC, ensures
products meet the highest safety
and performance standards before
entering the market. New products
undergo thorough certification
by independent, internationally
recognised authorities.
The Group’s MIM, aligned with the
Group Code of Conduct establishes
clear guidelines for product
marketing materials. Compliance
with the MIM is monitored through a
dedicated audit programme led by
the Group Internal Audit function,
ensuring integrity and transparency.
In addition, the Group Compliance
Manual outlines clear responsibilities
for operating divisions to develop
and maintain the Product
Compliance Register (PCR). The
PCR serves as a centralised record
of approved products, detailing
applicable legal obligations and
standards in their commercial
markets. Marketing materials,
product labels and order forms
are required to adhere to the PCR
to ensure compliance. The Group
tracks the effectiveness of these
actions through regular reporting
and key performance indicators
(KPIs), providing oversight into the
impact of its product compliance
and integrity programme.
Examples of dedicated resources
include, but are not limited to, the
product compliance team and the
IKON and FERC testing facilities. We
have 28 product lead compliance
officers appointed across the
business and over 6,000 people
trained in product compliance.
Digital Solutions for Enhanced
Consumer Experience
The Group is leveraging technology
to enhance the customer experience
through the continued development
and enhancement of established
digital tools that empower users
to interact with products more
efficiently, access real-time data
and improve overall satisfaction.
While these tools were not newly
launched this year, they are
continuously evolving to meet the
diverse needs of customers across
regions and markets. Examples
include:
»
3D Viewer 2.0 & Mobile App:
An advanced 3D visualisation
tool used globally within our
Insulated Panels division,
enabling customers to explore
products interactively. The
complementary mobile app
enhances on-the-go accessibility
and product engagement.
»
Panel & Fastener Calculator:
A digital calculation tool
designed to streamline product
specification and enhance
accuracy and ease of use.
Currently utilised in the UK
and Ireland markets within
the Insulated Panels division,
with plans to expand into new
markets in the coming years.
»
BIM & Digital Integration: A
process leveraging data to
create comprehensive plans
and models in construction,
improving customer workflows
by integrating products
seamlessly into projects. BIM
adoption and digital project
delivery are being expanded
across divisions to enhance
project collaboration and
efficiency.
These tools, tailored to different
products, customers and regions,
are part of the Group’s long-term
strategy to innovate and adapt
in response to the changing
needs of the construction and
building industries. These tools
reflect the Group’s ongoing
commitment to driving digital
innovation, simplifying workflows
and delivering better outcomes
for customers worldwide, while
continuously evolving to address the
dynamic needs of our markets and
stakeholders.
Human Rights
The Group remains committed to
addressing severe human rights
issues. The Group closely monitors
channels designed to identify
potential or actual breaches of
human rights and the mechanisms
for reporting such issues are clearly
outlined in the Group’s Human
Rights Policy. Through these
channels and mechanisms, we have
not yet identified any potential or
actual breaches of human rights.
S4-5 - Targets
The Group is committed to tracking
the effectiveness of its policies and
actions in relation to IROs as they
pertain to consumers and end-
users. Our approach integrates
ISO 37301 as a cornerstone
of compliance management,
supported by internal audits and
compliance assessments that
evaluate adherence to policies and
identify areas for improvement.
Progress on certification targets,
such as the number of sites
achieving ISO 37301 certification, is
assessed annually and reported to
the Audit & Compliance Committee.
Customer insights gathered
through surveys and engagement
channels further help refine our
product offerings and customer
satisfaction initiatives. Additionally,
independent evaluations, including
Net Promoter Score (NPS) tracking,
provide qualitative indicators
of performance. CEO and CFO
performance goals linked to NPS
are detailed in the Report of the
Remuneration Committee, with
results tracked annually to align
with stakeholder expectations.
While formal targets and base years
are yet to be defined, the Group
leverages existing compliance
processes and customer feedback
to inform future target setting
and performance evaluations, as
required. Data gathered through
these mechanisms may assist in
the development of measurable
targets and a base year for tracking
progress. This approach underscores
the Group’s dedication to building
a strong foundation for assessing
and enhancing the effectiveness
of its related policies and actions,
focusing alignment with long-term
goals and continual improvement.
indirectly guided by several policies,
including the Code of Conduct,
Supplier Policy and Environmental
Policy, all approved by the Board
of Directors and available on our
website. These policies aim to
minimise environmental impacts
and ensure compliance with
health, safety and applicable laws,
demonstrating our commitment to
sustainability and product safety.
The divisional MDs takes ultimate
responsibility for the implementation
of these policies.
Additionally, our SHREDD Policy
outlines our supplier human rights
and environmental due diligence
process, while our Human Rights
Policy outlines our commitment to
upholding and promoting human
rights values in all aspects of our
operations. Both are aligned with
ILO conventions and UN principles.
We continue to monitor and
maintain channels for reporting
and addressing potential breaches
of human rights, as detailed in the
Human Rights Policy. Through these
channels and mechanisms, we have
not yet identified any cases of non-
respect to the principles relevant
to consumers and end-users. We
continue to develop our processes.
S4-2 Processes for
engaging with consumers
and end users about
impacts
The Group aims to sustain long-
term consumer relationships.
Engagement occurs at various
stages across the purchase cycle,
with frequency dependent on
the type of engagement. The
effectiveness of engagement is
assessed through various means
including, but not limited to, follow-
up surveys, customer satisfaction
scores and regular review meetings.
Through continuously integrating
feedback from consumers into
our decision-making processes,
we ensure that our strategies
and actions are informed by their
perspectives, leading to more
effective management of actual
and potential impacts. The divisional
MD take ultimate responsibility for
ensuring active consumer and end-
user engagement.
See section ESRS 2 SBM-2 for
more information on stakeholder
engagement.
S4-3 Processes to
remediate negative
impacts and channels for
consumers and end users
to raise concerns
The Group has channels for
consumers and end-users to raise
concerns. These channels are
localised across the Group and
may vary across divisions to ensure
accessibility and relevance for
each specific market. Concerns are
typically received via electronic mail
or telephone and shall be directed
to the appropriate team allowing
for efficient and thorough handling
of each issue.
If a concern is raised, it is addressed
using procedures that are tailored
to the specific needs and regulatory
requirements of each region. These
processes endeavour to ensure
responses are appropriate and
effective, taking into account local
laws, cultural expectations and
market conditions.
If issues or concerns are raised,
they are monitored using various
platforms and systems, which
differ between divisions and
regions. Each division employs
its own methods to foster
improvement in addressing and
resolving consumer and end-user
concerns. This structure enhances
our responsiveness and consumer
satisfaction across our global
footprint. Considering the diverse
nature of the aforementioned
structures or processes, trust and
awareness are assessed through
ongoing two-way communication,
including open dialogue and regular
interactions with key consumers
and stakeholders. We do not
currently assess the effectiveness
of our engagement processes but
are actively focused on reviewing
and improving them as part of our
ongoing reporting efforts.
As highlighted in the Group’s
Human Rights Policy, there are
various channels available for
consumers to raise concerns.
The Group’s Human Rights Policy
is publicly available and can be
accessed on the Group website.
Third parties can contact the
Company directly by visiting
our website for further contact
information. https://www.
kingspangroup.com/en/contact/.
For further details, please
refer to Section G1-1 regarding
procedures that protect the Group’s
confidential independent hotline
and processes.
S4-4 – Actions
The Group has developed a
framework to manage product
quality, safety and integrity,
ensuring these elements are
prioritised throughout product
development, testing, support
and marketing. Below are the key
actions supporting the Group’s
approach to addressing impacts,
risks and opportunities for
consumers and end-users.
Product Safety and
Compliance Initiatives
The Group has implemented a
comprehensive framework to
manage and monitor product
quality, safety and compliance
across the organisation. This
framework is supported by a
robust internal control system and
overseen by the Audit & Compliance
Committee. The Group Head of
Internal Audit & Compliance, who
reports to the Audit & Compliance
Committee, ensures the programme
adheres to the globally recognised
ISO 37301 standard for compliance
management. As of December
2024, 85 global sites were certified,
with plans to certify 105 sites by
the end of 2025. Additionally, 153
manufacturing sites are accredited
to the ISO 9001 standard for
quality management.
The Group conducted 123 internal
audits across its global sites in 2024,
alongside 490 third-party external
audits of products and systems.
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ESRS G1 - BUSINESS
CONDUCT
ESRS 2 – SBM- 3
The material IROs related to
business conduct have been
identified through the Group’s DMA,
which serves as the foundation
for this section. The Group is
committed to upholding best
practice standards in governance,
accountability and transparency.
This commitment is set by the
Board and cascades throughout
the organisation, across all divisions
and geographical locations. The
Board’s proactive approach to risk
management is supported by a
robust internal control system that
monitors business risks and ensures
compliance with ethical standards.
The internal audit and compliance
functions provide additional
assurance, with key findings
reported directly to the Board.
This comprehensive approach
helps the Group stay aligned with
best practices in governance and
business conduct, maintaining
accountability and transparency
across all operations.
IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Own operations
Confidential
independent
hotline service
The Group’s confidential
independent hotline
encourages employees
and other stakeholders
to report issues via
a dedicated hotline,
positively impacting
stakeholders by fostering
a culture of transparency
and accountability.
»
Reporting mechanisms: The Group
employs a comprehensive, confidential
independent hotline service to allow all
employees to raise their concerns about
their working environment and business
practices.
»
Control procedures: Any instances of
fraud or misconduct reported on the
confidential independent hotline service
are reported to the Head of Internal
Audit & Compliance and the Company
Secretary. All reports through the hotline
and all fraud attempts are presented at
each Audit & Compliance Committee
meeting.
»
Policies: The Group’s Code of Conduct
incorporates our policy for a confidential
and independent hotline which was
enhanced in 2021 with higher visibility
in all manufacturing sites across the
Group. All key policies including but not
limited to our Code of Conduct outline
how employees can raise any potential
concern.
Type: Potential
Risk
Time Horizon:
Short-term +
Medium-term
Triggered by:
Dependency
If trust in the confidential
independent hotline
diminishes and suspected
misconduct goes
unreported, it could
adversely impact the
Group’s reputation.
Type: Positive
Impact - actual
Value chain:
Downstream
Board oversight
and culture
Strong board oversight
fosters a positive and
transparent culture across
the Group. Ethics and
integrity are emphasised
to all employees, positively
impacting all stakeholders.
»
Oversight: The Board foster a
transparent and accountable culture
across the Group. Key responsibilities
include:
- Setting strategic direction and values.
- Overseeing compliance, internal
controls and major decisions.
- Supporting governance through
three standing committees: Audit
& Compliance, Nominations &
Governance and Remuneration.
CSRD SUSTAINABILITY
STATEMENT
GOVERNANCE
INFORMATION
Tscherning
Hedehusene, Denmark
Insulation
Troldtekt® acoustic
panels
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IRO detail
IRO name
IRO brief description
Kingspan Initiatives
Type: Positive
Impact - actual
Value chain:
Downstream
Transparency
and reporting
The Group promotes
transparency by regularly
reporting financial and
non-financial information
to stakeholders.
»
Reporting & engaging: The
Group promotes transparency by
regularly providing stakeholders with
comprehensive financial and non-
financial information. Through annual
reports, sustainability updates and
active stakeholder engagement, we
ensure stakeholders are fully informed
about the Group’s operations, strategy
and impacts. In 2024, the executive
management and investor team
conducted 483 institutional one-on-one
and group meetings, including presenting
at 7 capital market conferences.
Type: Potential
Risk
Time Horizon:
Short-term +
Medium-term
Triggered by:
Dependency
Anti-fraud,
bribery and
corruption
The Group’s Anti-Fraud,
Bribery & Corruption
Policy aims to minimise
financial and reputational
damage from fraud,
bribery, or corruption.
Any violations could lead
to severe consequences,
including financial losses,
fines, imprisonment and
significant harm to the
Group’s reputation.
»
Policies & internal controls: The Group’s
Anti-Fraud, Bribery & Corruption Policy
establishes a comprehensive system
to prevent, detect and respond to
incidents of fraud and corruption through
regular employee training, independent
investigations, clear reporting
mechanisms and strict disciplinary
measures, ensuring compliance with legal
and ethical standards across the Group.
GOV-1 – The role of
the administrative,
management and
supervisory bodies
The Board of the Company is
responsible for the leadership,
strategic direction and overall
management of the Group,
ensuring the Company operates
with integrity and maintains
strong corporate governance. It
has established three standing
committees, Audit & Compliance,
Nominations & Governance and
Remuneration, to oversee specific
areas of governance and business
conduct. These committees
operate under written terms
of reference that clearly define
their responsibilities, ensuring
accountability and transparency
across the Group.
The Audit & Compliance Committee
monitors the integrity of the Group’s
financial statements and internal
controls, ensuring adherence to
regulatory and ethical standards.
This committee works closely with
the internal audit and compliance
teams to manage risks related to
business conduct. The Nominations
& Governance Committee ensures
the Board has the necessary
skills and experience to govern
effectively, including overseeing
matters of business conduct
and ethics. The Remuneration
Committee, meanwhile, ensures
that executive remuneration aligns
with both financial performance
and ethical behaviour.
The key strengths and relevant
experience of each director are
outlined in the Directors’ Report,
while the background, principal
skills and experience of the non-
executive directors are detailed in
the Report of the Nominations &
Governance Committee section of
this Annual Report.
G1-1 – Corporate
culture and business
conduct policies
The below policies apply to the
Group, its subsidiaries, joint
ventures and their directors, officers
and employees. These policies cover
all our businesses wherever they are
located. The Group policies can be
accessed on our website:
https://www.kingspangroup.com/
en/about/policies/.
The Group has implemented a suite
of policies to manage its IROs related
to business conduct and corporate
culture, with ultimate responsibility
held by divisional MDs. These
policies are designed to uphold the
highest ethical standards, ensure
transparency and foster a culture of
integrity across all operations. Key
publicly available policies include the
Code of Conduct, Anti-Fraud, Bribery
& Corruption Policy and Conflicts of
Interest Policy.
The Code of Conduct reflects the
Group’s commitment to acting
responsibly, complying with
the law and maintaining high
ethical standards in interactions
with stakeholders. It applies to
all employees across the Group
and is supported by mandatory
training for all staff, including
new joiners. The Group Code of
Conduct incorporates our Policy
for a confidential independent
hotline and details that retaliation
or reprisals will not be tolerated.
The policy is underpinned by the
EthicsPoint hotline, a confidential
and anonymous reporting tool
available to both internal and
external stakeholders. Employees
are encouraged to report concerns
directly to their line managers,
but if this is not possible, they can
escalate matters to the Group Legal
team or through EthicsPoint. All
reports are overseen by the Head
of Internal Audit & Compliance and
the Company Secretary, ensuring
a robust process for investigating
incidents. Reports and outcomes,
including fraud attempts or
misconduct, are presented to the
Audit & Compliance Committee,
which also evaluates the
effectiveness of the confidential
independent hotline process. These
mechanisms are critical to how the
Group manages the material IROs
related to business conduct and
corporate culture.
The Anti-Fraud, Bribery & Corruption
Policy underscores the Group’s zero
tolerance approach to bribery and
corruption, mandating that all
incidents or suspicions are promptly
investigated and that appropriate
recovery and disciplinary actions
are taken. Compliance with this
policy is supported by the internal
Group Accounting Manual (GAM),
which governs financial and legal
compliance by providing clear
guidelines to prevent fraud, bribery
and corruption. The Group identifies
IT users as being at the highest risk
for corruption and bribery. For more
details on the training provided,
please refer to section G1-3.
The Conflicts of Interest Policy
establishes a framework for
identifying, disclosing and managing
conflicts of interest to maintain
impartiality and integrity. The
Board is responsible for establishing
systems to manage conflicts across
the Group, monitoring compliance
with the policy and reviewing
the policy regularly to ensure its
effectiveness. This policy strengthens
the Group’s governance by ensuring
transparency in managing potential
or actual conflicts.
Our People Passionate initiative,
launched in 2023, is a key
component of the Group’s efforts to
promote and evaluate its corporate
culture. This initiative aims to
enhance the employee experience
across the Group, while over time
enabling the Board to assess and
monitor the evolution of the Group’s
performance and corporate culture.
See section S1-4 Actions for further
detail. Corporate culture within the
Group is further supported by the
Group’s People & Organisation Policy.
The Group has no policies in place
with respect to animal welfare,
as this is not a material topic for
the Company. The Group remains
committed to ongoing evaluations
of its policies and practices to ensure
alignment with best practices and
regulatory requirements.
G1-2 – Management
of relationships with
suppliers
The Group seeks to build and
maintain long-term relationships
with key suppliers. Supplier
engagement, data tracking and
collaboration are integral to our
Planet Passionate strategic pillar,
ensuring that our building envelope
solutions deliver long-term,
sustainable performance. The Group
does not have a specific Policy to
prevent late payments to small and
medium-sized enterprises (SMEs).
However, we are committed to
working collaboratively with our
suppliers to ensure fair and timely
payments and to maintaining
positive relationships across the
supply chain.
The Group’s Code of Conduct plays
a central role in our approach to
managing supplier relationships. It
sets clear expectations of integrity,
honesty and legal compliance
for all employees, directors and
partners globally. These principles
are incorporated into the Group’s
Supplier Policy, which ensures that
our suppliers are aligned with our
ethical standards and expectations
for responsible business practices.
Sustainability factors are taken
into account through engagement
with suppliers, including during the
selection process, and alignment
with the Group’s Supplier Policy
and Code of Conduct. We aim to
ensure ongoing adherence to these
standards through continuous
engagement. As referenced in our
Supplier Policy, the Group reserves
the right to terminate the supplier
relationship if a supplier fails to
uphold the standards outlined in
the Policy.
In 2024, the Group developed the
SHREDD Policy, which outlines
our commitment to ensuring that
suppliers adhere to the highest
standards of human rights and
environmental sustainability. This
policy enables the Group to assess
and manage risks related to human
rights violations and environmental
impacts within our supply chain. The
SHREDD process will be regularly
reviewed and refined to ensure
that it continues to align with our
Group’s values, objectives and
evolving regulatory standards.
G1-3 – Prevention and
detection of corruption
and bribery
The Group has established a
comprehensive system to prevent,
detect and respond to allegations or
incidents of corruption and bribery.
This is outlined in our Anti-Fraud,
Bribery & Corruption Policy and
supported by the Group’s Code of
Conduct and our internal GAM,
which governs financial and legal
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compliance. These policies reflect
our commitment to integrity and
full compliance with applicable
laws. Oversight is provided by
the Board, Audit & Compliance
Committee and the Internal Audit &
Compliance team.
Our system includes comprehensive
measures such as fraud risk
assessments, third-party due
diligence and continuous
communication and training
to ensure compliance with our
standards. All relevant employees
receive mandatory training on the
Anti-Fraud, Bribery & Corruption
Policy every two years, reinforcing
their understanding of anti-
corruption laws, risk identification
and reporting procedures.
Responsibility for delivering this
training is assigned to each division’s
MD, supported by solutions from
Group Legal, ensuring tailored
implementation across functions.
Compliance with the Group’s
policies on corruption and bribery is
mandatory for all employees.
The Group rolled out targeted
training on its Anti-Fraud, Bribery &
Corruption Policy to all employees,
with a particular focus on functions
identified as at-risk. The Group
considers all IT users at risk due to
their access to sensitive systems
and data. Training is mandatory for
all employees and is delivered on a
two-year cycle to ensure ongoing
awareness and compliance with the
Group’s policy.
The Group Legal team provides
divisional teams with standardised
examples and guidance on training
content to ensure alignment with
regulatory requirements and evolving
risks. Responsibility for the successful
rollout of the training lies with
divisional teams, which are equipped
with the necessary tools and
resources to facilitate compliance.
During the reporting period,
100% of employees in identified
at-risk functions received access
to training. Divisional teams are
also responsible for monitoring
training rollout rates and ensuring
timely notification of employee
obligations.
Allegations regarding corruption
and/or bribery may be addressed
through our confidential
independent hotline and all
investigations are conducted
independently by the Group Head
of Internal Audit & Compliance and
the Internal Audit & Compliance
Team, which operates separately
from the business functions
involved in the issue. All fraud and
cybercrime attempts, successful
or not, are reported to the Audit
& Compliance Committee at each
meeting, ensuring transparency and
comprehensive oversight.
Any suspected or confirmed
incidents of fraud, bribery,
corruption, sanctions violations, or
anti-competitive behaviour must
be promptly reported to the Group
CFO, Group Head of Internal Audit &
Compliance, Group Head of Legal,
Group Financial Controller and
Group Treasurer.
Failure to comply with these policies
may result in disciplinary action,
up to and including dismissal or
prosecution. This strict enforcement
upholds the Group’s ethical
standards and ensures compliance
across all operations. Each
leadership team is responsible for
clearly communicating the Group’s
stance on fraud to employees,
emphasising their roles and the
resources available to them.
The illustration below, which is
included in our Anti-Fraud, Bribery
& Corruption Policy, summarises
the key owners and measures for
the prevention, detection and
response to incidents of fraud,
corruption and bribery:
G1-4 – Confirmed
incidents of corruption
or bribery
The Group has established a
comprehensive framework to
prevent, detect and respond to
incidents of corruption and bribery,
as outlined in our Anti-Fraud,
Bribery & Corruption Policy (section
G1-3 of this report).
Key resources supporting these
efforts include a confidential
independent hotline for anonymous
reporting and a dedicated Internal
Audit & Compliance team who
oversee investigations to ensure
objectivity and impartiality. The
Group’s action plan incorporates
measures such as fraud risk
assessments, due diligence and
mandatory anti-corruption training,
which is delivered every two years.
Allegations are addressed through
confidential mechanism, with
findings regularly reported to the
Audit & Compliance Committee to
ensure accountability and oversight.
During the financial year, the Group
has reported zero convictions for
violations of anti-corruption and
anti-bribery laws.
PREVENTION
DETECTION
RESPONSE
OWNERS
Board / Audit & Compliance Committee oversight
Executive and Line Management functions
Internal Audit & Compliance and monitoring functions
MEASURES
Fraud and misconduct
risk assessment
Code of Conduct and
related standards
Employee and third-party
due diligence
Communication and training
Process-specific fraud
risk controls
Confidential independent
hotline
Auditing and monitoring
Proactive forensic data
analysis
Fraud investigation protocols
Remedial action protocols
Internal disciplinary actions
External investigation and
prosecution
Anti-corruption and anti-bribery:
Unit
2024
Number of convictions for anti-corruption and anti-bribery laws
Number
0
Total fines for violation of anti-corruption and anti-bribery laws
€m
0
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APPENDICES
Appendix 1: Disclosure requirements and incorporation by reference
Disclosure
code
Disclosure name
Section/
report1
Page
Reason for omitting
ESRS 2 - General disclosures
BP-1
General basis for preparation of the sustainability
statement
SUS
161
BP-2
Disclosures in relation to specific circumstances
SUS
162
GOV-1
The role of the administrative, management and
supervisory bodies
BOARD/SUS
91
162
GOV-2
Information provided and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
SUS
163
GOV-3
Integration of sustainability-related performance in
incentive schemes
REM/SUS
119, 163
GOV-4
Statement on due diligence
SUS
163
GOV-5
Risk management and internal controls over
sustainability reporting
SUS
164
SBM-1
Strategy, business model and value chain
BM&S/SUS/FS
30, 164,
286
SBM-2
Interests and views of stakeholders
SUS
165
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SUS
165
IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities
SUS
166
IRO-2
Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
SUS
169
ESRS E1 - Climate change
ESRS 2 GOV-3
Integration of sustainability-related performance in
incentive schemes
REM/SUS
119, 163
E1-1
Transition plan for climate change mitigation
SUS
182
ESRS SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SUS
177
ESRS 2 IRO-1
Description of the processes to identify and
assess material climate-related impacts, risks and
opportunities
SUS
166
E1-2
Policies related to climate change mitigation and
adaptation
SUS
189
E1-3
Actions and resources in relation to climate change
policies
SUS
182
E1-4
Targets related to climate change mitigation and
adaptation
SUS
182
E1-5
Energy consumption and mix
SUS
190
E1-6
Scopes 1, 2 & 3 GHG emissions
SUS
191
Disclosure
code
Disclosure name
Section/
report1
Page
Reason for omitting
ESRS E1 - Climate change (continued)
E1-7
GHG removals and GHG mitigation projects
financed through carbon credits
SUS
192
E1-8
Internal carbon pricing
SUS
192
E1-9
Anticipated financial effects from material physical
and transition risks and potential climate-related
opportunities
-
-
Transition exemption
ESRS E2 - Pollution
ESRS 2 IRO-1
Description of the processes to identify and assess
material pollution-related impacts, risks and
opportunities
SUS
166
E2-1
Policies related to pollution
SUS
193
E2-2
Actions and resources related to pollution
SUS
193
E2-3
Targets related to pollution
SUS
193
E2-4
Pollution of air, water and soil (note: including
microplastics)
-
No material IRO
identified related to
data points
E2-5
Substances of concern and substances of very high
concern
-
No material IRO
identified related to
data points
E2-6
Anticipated financial effects from material
pollution-related risks and opportunities
-
Transition exemption /
sensitive information
ESRS E3 – Water and marine resources
ESRS 2 IRO-1
Description of the processes to identify and assess
material water and marine resources-related
impacts, risks and opportunities
SUS
166
E3-1
Policies related to water and marine resources
SUS
195
E3-2
Actions and resources related to water and marine
resources policies
SUS
195
E3-3
Targets related to water and marine resources
SUS
195
E3-4
Water consumption
-
-
Not material
E3-5
Anticipated financial effects from material
water and marine resources-related risks and
opportunities
-
-
Transition exemption
ESRS E4 – Biodiversity and ecosystems
ESRS 2 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SUS
196
ESRS 2 IRO-1
Description of the processes to identify and assess
material biodiversity and ecosystem-related
impacts, risks and opportunities
SUS
166
E4-1
Transition plan and consideration of biodiversity
and ecosystems in strategy and business model
SUS
196
E4-2
Policies related to biodiversity and ecosystems
SUS
197
E4-3
Actions and resources related to biodiversity and
ecosystems
SUS
198
E4-4
Targets related to biodiversity and ecosystems
SUS
198
Appendix 1: Disclosure requirements and incorporation by reference (continued)
Annual Report & Financial Statements 2024
238
Kingspan Group plc
239
CSRD Sustainability Statement
240
Kingspan Group plc
241
Disclosure
code
Disclosure name
Section/
report1
Page
Reason for omitting
E4-5
Impact metrics related to biodiversity and
ecosystems change
SUS
198
E4-6
Anticipated financial effects from material
biodiversity and ecosystem-related risks and
opportunities
-
-
Transition exemption
ESRS E5 – Resource use and circular economy
ESRS 2 IRO-1
Description of the processes to identify and assess
material resource use and circular economy-related
impacts, risks and opportunities
SUS
166
E5-1
Policies related to resource use and circular
economy
SUS
200
E5-2
Actions and resources related to resource use and
circular economy
SUS
201
E5-3
Targets related to resource use and circular
economy
SUS
201
E5-4
Resource inflows
SUS
204
E5-5
Resource outflows
SUS
205
E5-6
Anticipated financial effects from material
resource use and circular economy-related risks
and opportunities
-
-
Transition exemption
ESRS S1 – Own Workforce
ESRS 2 SBM-2
Interests and views of stakeholders
SUS
212
ESRS 2 SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SUS
209
S1-1
Policies related to own workforce
SUS
212
S1-2
Processes for engaging with own workforce and
workers’ representatives about impacts
SUS
212
S1-3
Processes to remediate negative impacts and
channels for own workers to raise concerns
SUS
213
S1-4
Taking action on material impacts and approaches
to mitigating material risks and pursuing material
opportunities related to own workforce and
effectiveness of those actions and approaches
SUS
213
S1-5
Targets related to managing material impacts
SUS
215
S1-6
Characteristics of the undertaking’s employees
SUS
216
S1-7
Characteristics of non-employee workers in the
undertaking’s own workforce
-
-
Transition exemption
S1-8
Collective bargaining coverage and social dialogue
metrics
SUS
216
S1-9
Diversity metrics
SUS
216
S1-10
Adequate wages
SUS
218
S1-11
Social protection
-
-
Transition exemption
S1-12
Persons with disabilities metrics
-
-
Transition exemption
S1-13
Training and skills development metrics
-
-
Transition exemption
S1-14
Health and safety metrics
SUS
218
S1-15
Work-life balance metrics
-
-
Transition exemption
Disclosure
code
Disclosure name
Section/
report1
Page
Reason for omitting
S1-16
Compensation metrics (pay gap and total
remuneration)
SUS
219
S1-17
Incidents, complaints and severe human rights
impacts metrics
SUS
219
ESRS S2 – Workers in the value chain
ESRS 2 SBM-2
Interests and views of stakeholders
SUS
221
ESRS 2 SBM-3
Material impacts, risks and opportunities related to
workers in the value chain
SUS
220
S2-1
Policies related to value chain workers
SUS
221
S2-2
Processes for engaging with value chain workers
about impacts
SUS
222
S2-3
Processes to remediate negative impacts and
channels for value chain workers to raise concerns
SUS
222
S2-4
Taking action on material impacts on value chain
workers and approaches to managing material
risks and pursuing material opportunities related
to value chain workers and effectiveness of those
actions
SUS
222
S2-5
Targets related to managing material negative and
positive impacts
SUS
223
ESRS S3 – Affected communities
ESRS SBM-2
Interests and views of stakeholders
SUS
225
ESRS SBM-3
Material impacts, risks and opportunities related to
affected communities
SUS
223
S3-1
Policies related to affected communities
SUS
225
S3-2
Processes for engaging with affected communities
about impacts
SUS
225
S3-3
Processes to remediate negative impacts and
channels for affected communities to raise
concerns
SUS
226
S3-4
Taking action on material impacts on affected
communities and approaches to managing
material risks and pursuing material opportunities
related to affected communities and effectiveness
of those actions
SUS
226
S3-5
Targets related to managing material negative and
positive impacts
SUS
226
ESRS S4 – Consumers and end-users
ESRS 2 SBM-2
Interests and views of stakeholders
SUS
229
ESRS 2 SBM-3
Material impacts, risks and opportunities related to
consumers and end-users
SUS
226
S4-1
Policies related to consumers and end-users
SUS
229
S4-2
Processes for engaging with consumers and end-
users about impacts
SUS
230
S4-3
Processes to remediate negative impacts and
channels for consumers and end-users to raise
concerns
SUS
230
Appendix 1: Disclosure requirements and incorporation by reference (continued)
Appendix 1: Disclosure requirements and incorporation by reference (continued)
Annual Report & Financial Statements 2024
240
Kingspan Group plc
241
CSRD Sustainability Statement
242
Kingspan Group plc
243
Disclosure
code
Disclosure name
Section/
report1
Page
Reason for omitting
S4-4
Taking action on material impacts on consumers
and end-users and approaches to managing
material risks and pursuing material opportunities
related to consumers and end-users and
effectiveness of those actions
SUS
230
S4-5
Targets related to managing material negative &
positive impacts
SUS
231
ESRS G1 – Business conduct
ESRS 2 GOV-1
The role of the administrative, supervisory and
management bodies
SUS
162,234
ESRS 2 IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
SUS
166
G1-1
Business conduct policies and corporate culture
SUS
234
G1-2
Management of relationships with suppliers
SUS
235
G1-3
Prevention and detection of corruption and bribery
SUS
235
G1-4
Confirmed incidents of corruption or bribery
237
G1-5
Political influence and lobbying activities
-
-
Not Material
G1-6
Payment practices
-
-
Not material
1 REM = Remuneration report. SUS = CSRD Sustainability Statement. BOARD = The Board.
BM&S = Business Model and Strategy. FS = Financial statements.
Appendix 2: Reporting with reference to the GRI (Global Reporting Initiative)
Standards
Statement of use
Kingspan has reported the information cited in this GRI content index for the period
01.01.2024 to 31.12.24 with reference to the GRI Standards.
GRI 1 used
GRI 1: Foundation 2021
GRI Standard
Disclosure
Page
GRI 2: General Disclosures 2021
2-1 Organisational details
30
GRI 2: General Disclosures 2021
2-2 Entities included in the organisation’s
sustainability reporting
328
GRI 2: General Disclosures 2021
2-4 Restatements of information
A note has been added to all
cases where a restatement
has been provided
GRI 2: General Disclosures 2021
2-5 External assurance
156
GRI 2: General Disclosures 2021
2-9 Governance structure and composition
90, 98
GRI 2: General Disclosures 2021
2-11 Chair of the highest governance body
85
GRI 2: General Disclosures 2021
2-14 Role of the highest governance body in
sustainability reporting
162
GRI 2: General Disclosures 2021
2-18 Evaluation of the performance of the highest
governance body
95
GRI 2: General Disclosures 2021
2-19 Remuneration policies
110
GRI 2: General Disclosures 2021
2-22 Statement on sustainable development strategy
38
GRI 2: General Disclosures 2021
2-26 Mechanisms for seeking advice and raising
concerns
234
GRI 2: General Disclosures 2021
2-29 Approach to stakeholder engagement
165
GRI 3: Material Topics 2021
3-1 Process to determine material topics
165
GRI 101: Biodiversity 2024
101-1 Policies to halt and reverse biodiversity loss
196
GRI 301: Materials 2016
301-1 Materials used by weight or volume
204
GRI 301: Materials 2016
301-2 Recycled input materials used
204
GRI 302: Energy 2016
302-1 Energy consumption within the organisation
190
GRI 302: Energy 2016
302-3 Energy intensity
190
GRI 303: Water and Effluents
2018
303-1 Interactions with water as a shared resource
194
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions
191
GRI 305: Emissions 2016
305-2 Energy indirect (Scope 2) GHG emissions
191
GRI 305: Emissions 2016
305-3 Other indirect (Scope 3) GHG emissions
191
GRI 305: Emissions 2016
305-4 GHG emissions intensity
191
GRI 306: Waste 2020
306-3 Waste generated
207
GRI 306: Waste 2020
306-4 Waste diverted from disposal
207
GRI 306: Waste 2020
306-5 Waste directed to disposal
207
GRI 403 Occupational Health
and Safety 2018
403-1 Occupational health and safety management
system
218
Appendix 1: Disclosure requirements and incorporation by reference (continued)
Annual Report & Financial Statements 2024
242
Kingspan Group plc
243
CSRD Sustainability Statement
244
Kingspan Group plc
245
Appendix 3: SASB
Topic
Accounting metric
Section
Comment
Code
Greenhouse
Gas
Emissions
Gross global Scope 1 emissions, percentage
covered under emissions-limiting regulations
E1-6
-
EM-CM-
110a.1
Discussion of long-term and short-term
strategy or plan to manage Scope 1
emissions, emissions reduction targets and
an analysis of performance against those
targets
E1-1, E1-
3, E1-4
-
EM-CM-
110a.2
Air Quality
Air emissions of the following pollutants:
(1) NOx (excluding N2O), (2) SOx, (3)
particulate matter (PM10), (4) dioxins/
furans, (5) volatile organic compounds
(VOCs), (6) polycyclic aromatic
hydrocarbons (PAHs) and (7) heavy metals
-
As per section E2 - Pollution,
the sub topic of Pollution to
Air, Water and Soil has been
deemed not material for our
own operations.
EM-CM-
120a.1
Energy
Management
(1) Total energy consumed, (2) percentage
grid electricity, (3) percentage alternative,
(4) percentage renewable
E1-5
-
EM-CM-
130a.1
Water
Management
(1) Total fresh water withdrawn, (2)
percentage recycled, (3) percentage in
regions with High or Extremely High Baseline
Water Stress
-
As per section E3 - Water and
marine resources, water has
been deemed not material for
our own operations.
EM-CM-
140a.1
Waste
Management
Amount of waste generated, percentage
hazardous, percentage recycled
E5-5
-
EM-CM-
150a.1
Biodiversity
Impacts
Description of environmental management
policies and practices for active sites
-
See Kingspan’s Environmental
Policy.
EM-CM-
160a.1
Terrestrial acreage disturbed, percentage of
impacted area restored
-
This indicator is not applicable
to Kingspan. Kingspan does not
operate quarries.
EM-CM-
160a.2
Workforce
Health &
Safety
(1) Total recordable incident rate (TRIR)
and (2) near miss frequency rate (NMFR)
for (a) fulltime employees and (b) contract
employees
S1-14
Near miss data is recorded
at divisional level for internal
reporting purposes only.
EM-CM-
320a.1
Number of reported cases of silicosis
-
This indicator is not applicable
to Kingspan. Employees and
workers are not exposed to
large amounts of crystalline
silica dust.
EM-CM-
320a.2
Product
Innovation
Percentage of products that qualify for
credits in sustainable building design and
construction certifications
-
55%% of Kingspan’s product
revenue contributes directly or
indirectly to resource efficiency,
such as, energy efficiency or
lowering carbon emissions.
EM-CM-
410a.1
Total addressable market and share of
market for products that reduce energy,
water and/or material impacts during usage
and/or production
-
A 2024 report from Grand View
Research estimated the Global
Insulation Market size to be
$65.1bn in 2023.
EM-CM-
410a.2
Pricing
Integrity &
Transparency
Total amount of monetary losses as a result
of legal proceedings associated with cartel
activities, price fixing and anti-trust activities
-
Kingspan did not receive any
fines or sanctions in relation to
cartel activities, price fixing and
anti-trust activities.
EM-CM-
520a.1
Appendix 4: Datapoints that derive from other EU legislation
Disclosure requirement
Data
point
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference
Section
Page
ESRS 2 GOV-1 Board’s
gender diversity
21 (d)
x
x
BOARD
98
ESRS 2 GOV-1 Percentage
of board members who
are independent
21 (e)
x
BOARD
98
ESRS 2 GOV-4 Statement
on due diligence
30
x
SUS
163
ESRS 2 SBM-1 Involvement
in activities related to
fossil fuel activities
40 (d) i
x
x
x
Not applicable -
ESRS 2 SBM-1 Involvement
in activities related to
chemical production
40 (d) ii
x
x
Not applicable
-
ESRS 2 SBM-1 Involvement
in activities related to
controversial weapons
40 (d) iii
x
x
Not applicable
-
ESRS 2 SBM-1 Involvement
in activities related to
cultivation and production
of tobacco
40 (d) iv
x
Not applicable
-
ESRS E1-1 Transition plan
to reach climate neutrality
by 2050
14
x
SUS
182
ESRS E1-1 Undertakings
excluded from Paris-
aligned Benchmarks
16 (g)
x
x
SUS
182
ESRS E1-4 GHG emission
reduction targets
34
x
x
x
SUS
182
ESRS E1-5 Energy
consumption from fossil
sources disaggregated by
sources (only high climate
impact sectors)
38
x
SUS
190
ESRS E1-5 Energy
consumption and mix
37
x
SUS
190
ESRS E1-5 Energy intensity
associated with activities
in high climate impact
sectors
40-43
x
SUS
190
ESRS E1-6 Gross Scope 1, 2,
3 and Total GHG emissions
44
x
x
x
SUS
191
ESRS E1-6 Gross GHG
emissions intensity
53-55
x
x
x
SUS
191
ESRS E1-7 GHG removals
and carbon credits
56
x
Not applicable
-
ESRS E1-9 Exposure of the
benchmark portfolio to
climate-related physical
risks
66
x
Transition
exemption
-
Annual Report & Financial Statements 2024
244
Kingspan Group plc
245
CSRD Sustainability Statement
246
Kingspan Group plc
247
Disclosure requirement
Data
point
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference
Section
Page
ESRS E1-9 Disaggregation
of monetary amounts by
acute and chronic physical
risk; location of significant
assets at material physical
risk
66 (a);
66 (c)
x
Transition
exemption
-
ESRS E1-9 Breakdown
of the carrying value of
its real estate assets by
energy-efficiency classes
67 (c)
x
Transition
exemption
-
ESRS E1-9 Degree of
exposure of the portfolio
to climate-related
opportunities
69
x
Transition
exemption
-
ESRS E2-4 Amount of each
pollutant listed in Annex II
of the E-PRTR Regulation
emitted to air, water and
soil
28
x
Not material
-
ESRS E3-1 Water and
marine resources
9
x
SUS
195
ESRS E3-1 Dedicated policy
13
x
SUS
195
ESRS E3-1 Sustainable
oceans and seas
14
x
Not material
-
ESRS E3-4 Total water
recycled and reused
28 (c)
x
Not material
-
ESRS E3-4 Total water
consumption in m3 per
net revenue on own
operations
29
x
Not material
-
ESRS 2- SBM 3 - E4
16 (a)i
x
SUS
196
ESRS 2- SBM 3 - E4
16 (b)
x
SUS
196
ESRS 2- SBM 3 - E4
16 (c)
x
SUS
196
ESRS E4-2 Sustainable
land / agriculture practices
or policies
24 (b)
x
Not material
-
ESRS E4-2 Sustainable
oceans / seas practices or
policies
24 (c)
x
Not material
-
ESRS E4-2 Policies to
address deforestation
24 (d)
x
Not material
-
ESRS E5-5 Non-recycled
waste
37 (d)
x
SUS
205
ESRS E5-5 Hazardous
waste and radioactive
waste
39
x
SUS
205
ESRS 2- SBM3 – S1 Risk of
incidents of forced labour
14 (f)
x
SUS
209
ESRS 2- SBM3 – S1 Risk of
incidents of child labour
14 (g)
x
SUS
209
Disclosure requirement
Data
point
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference
Section
Page
ESRS S1-1 Human rights
policy commitments
20
x
SUS
212
ESRS S1-1 Due diligence
policies on issues
addressed by the
fundamental International
Labour Organisation
Conventions 1 to 8
21
x
SUS
212
ESRS S1-1 Processes and
measures for preventing
trafficking in human
beings
22
x
SUS
212
ESRS S1-1 Workplace
accident prevention policy
or management system
23
x
SUS
212
ESRS S1-3 Grievance/
complaints handling
mechanisms
32 (c)
x
SUS
213
ESRS S1-14 Number of
fatalities and number
and rate of work-related
accidents
88 (b)
and (c)
x
x
SUS
218
ESRS S1-14 Number of
days lost to injuries,
accidents, fatalities or
illness
88 (e)
x
Transition
exemption
-
ESRS S1-16 Unadjusted
gender pay gap
97 (a)
x
x
SUS
219
ESRS S1-16 Excessive CEO
pay ratio
97 (b)
x
SUS
219
ESRS S1-17 Incidents of
discrimination
103 (a)
x
SUS
219
ESRS S1-17 Non-respect of
UNGPs on Business and
Human Rights and OECD
104 (a)
x
x
SUS
219
ESRS 2- SBM3 – S2
Significant risk of child
labour or forced labour in
the value chain
11 (b)
x
SUS
221
ESRS S2-1 Human rights
policy commitments
17
x
SUS
221
ESRS S2-1 Policies related
to value chain workers
18
x
SUS
221
ESRS S2-1 Non-respect of
UNGPs on Business and
Human Rights principles
and OECD guidelines
19
x
x
SUS
221
Appendix 4: Datapoints that derive from other EU legislation (continued)
Appendix 4: Datapoints that derive from other EU legislation (continued)
Annual Report & Financial Statements 2024
246
Kingspan Group plc
247
CSRD Sustainability Statement
248
Kingspan Group plc
249
Disclosure requirement
Data
point
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law
reference
Section
Page
ESRS S2-1 Due diligence
policies on issues
addressed by the
fundamental International
Labour Organisation
Conventions 1 to 8
19
x
SUS
221
ESRS S2-4 Human rights
issues and incidents
connected to its upstream
and downstream value
chain
36
x
SUS
222
ESRS S3-1 Human rights
policy commitments
16
x
SUS
225
ESRS S3-1 Non-respect
of UNGPs on Business
and Human Rights, ILO
principles and OECD
guidelines
17
x
x
SUS
225
ESRS S3-4 Human rights
issues and incidents
36
x
SUS
226
ESRS S4-1 Policies related
to consumers and end-
users
16
x
SUS
229
ESRS S4-1 Non-respect of
UNGPs on Business and
Human Rights and OECD
guidelines
17
x
x
SUS
229
ESRS S4-4 Human rights
issues and incidents
35
x
SUS
230
ESRS G1-1 United Nations
Convention against
Corruption
10 (b)
x
SUS
234
ESRS G1-1 Protection of
whistle-blowers
10 (d)
x
SUS
234
ESRS G1-4 Fines for
violation of anti-corruption
and anti-bribery laws
24 (a)
x
x
SUS
237
ESRS G1-4 Standards of
anti-corruption and
anti-bribery
24 (b)
x
SUS
237
Note: Sustainable Finance Disclosures Regulation (SFDR). SUS = CSRD Sustainability Statement. BOARD = The Board
Appendix 5: Summary of Key Terms and Acronyms:
Acronym
Definition
CSRD
Corporate Sustainability Reporting Directive
DMA
Double Materiality Assessment
ESRS
European Sustainability Reporting Standards
IRO
Impact, Risk and Opportunity
DNSH
Do No Significant Harm
GHG
Greenhouse Gas
KPI
Key Performance Indicator
SAQ
Self-Assessment Questionnaire
TCFD
Task Force on Climate-related Financial Disclosures
ESG
Environmental, Social and Governance
EFRAG
European Financial Reporting Advisory Group
CEO
Chief Executive Officer
NPS
Net Promoter Score
LTIP
Long-Term Incentive Plan
NGOs
Non-Governmental Organisations
SSPs
Shared Socioeconomic Pathways
IAMs
Integrated Assessment Models
RCP
Representative Concentration Pathways
BRF
Biodiversity Risk Filter
MDI
Methylene Diphenyl Diisocyanate
PU/PUR
Polyurethane
PIR
Polyisocyanurate
EIA
Environmental Impact Assessment
CO2
Carbon Dioxide
LEC
Lower Embodied Carbon
ETS II
Emissions Trading Scheme
GWP
Global Warming Potential
CCS
Climate Change Section
CMR
Carcinogenic, Mutagenic, Reprotoxic
WS
Water Section
MNCs
Multinational Enterprises
RBC
Responsible Business Conduct
UNGP
UN Guiding Principles on Business and Human Rights
ILO
International Labour Organisation
MD
Managing Director
RWH
Rainwater Harvesting
BA
Biodiversity Appendix
EIA
Environmental Impact Assessment
IFC
International Finance Corporation
CES
Circular Economy Section
EPDs
Environmental Product Declarations
GSI
Global Slavery Index
Appendix 4: Datapoints that derive from other EU legislation (continued)
Annual Report & Financial Statements 2024
248
Kingspan Group plc
249
CSRD Sustainability Statement
250
Kingspan Group plc
251
Acronym
Definition
PEAK
Programme for Executive Acceleration in Kingspan
EWC
European Works Council
SHREDD
Supplier Human Rights and Environmental Due Diligence Policy
MIM
Marketing Integrity Manual
FERC
Fire Engineering Research Centre
PCR
Product Compliance Register
SMEs
Small and Medium-sized Enterprises
GAM
Group Accounting Manual
Scope 1 GHG emissions:
Environmental data is collated
in the environmental reporting
platform we use at Kingspan
Group on a monthly basis (where
applicable). Scope 1 emissions
were calculated in the platform
by applying an extensive range of
emission factors from a plethora of
sources, including but not limited
to IEA, DEFRA and EPA, to the
energy consumption data. Energy
sources included are purchased
fuels for both stationary and mobile
combustion, while non-energy
sources include emissions from the
use of blowing agents and catalysts.
Scope 1 emissions include CH4
and N2O from the combustion of
biomass.
Scope 2 GHG emissions:
Environmental data is collated
in the environmental reporting
platform we use at Kingspan
Group on a monthly basis (where
applicable). Scope 2 emissions
were calculated in the platform
by applying an extensive range of
emission factors from a plethora
of sources, including but not
limited to IEA, DEFRA and EPA,
to the energy consumption data.
Our platform calculates both
location and market-based scope 2
emissions by applying the applicable
emission factors; the emission
factors applied to calculate scope
2 emissions do not separate the
percentage of biomass or biogenic
emissions. Our renewable energy
related to scope 2 GHG emissions
is made up of approximately 2%
district heating and 98% Renewable
electricity supply contracts bundled
with renewable energy attributes
including Renewable Energy
Certificates (RECs) and Change to
Guarantees of Origin (GoOs). The
remaining approximately 31% of our
purchased energy, related to scope
2 GHG emissions, is non-renewable.
Note: Emission factor databases
may be a source of limitation
for scope 1 & 2 GHG emissions
calculations.
Scope 3 GHG emissions:
Our scope 3 GHG emissions are
calculated for the whole business,
excluding all acquisitions that
occurred after 30 September 2024.
34% of our scope 3 GHG emissions
were calculated using primary data
obtained from suppliers and value
chain partners, supported by our
supplier engagement programme.
Methodologies and assumptions
for each scope 3 category, where
applicable, are outlined below.
Note: Scope 3 GHG emissions
calculation is limited by challenges
in data collection, reliance on
secondary data and the use of
monetary-based emissions.
C1. Purchased good and services:
In 2024, we transitioned to
a SaaS platform to manage
our scope 3, category 1
GHG emissions, utilising
both monetary and physical
emissions factors from primary
and secondary sources.
For raw materials, we prioritise
primary data, product and
supplier specific, when
available. When primary data
is not available, we aim to
apply alternative physical
emission factors.
For the remaining activity data,
we use monetary emission
factors from sources including
but not limited to the EPA,
Ecoinvent, DEFRA, accounting
for inflation and deflation,
where necessary.
C2. Capital goods: For this
category, the most suitable
monetary emission factors,
sourced from the EPA, were
applied for each category of
capital expenditure.
C3. Fuel-and-energy related
activities: Fuel-based method.
We calculated this category by
using the amount of fuels and
electricity consumed during the
year and a combination of WTT
emission factors (factor source:
mainly DEFRA).
C4. Upstream transportation
and distribution: Spend-
based method. According to
the GHG Protocol - Guidance
document: Outbound
transportation and distribution
services that are purchased
Appendix 6: Methodologies and significant assumptions for the
calculation of GHG emissions
by the reporting company
are excluded from category
9 and included in category
4 (Upstream transportation
and distribution) because the
reporting company purchases
the service. Taking this into
account, all transport costs
(both for upstream and
downstream transport)
are reported under this
category. We used spend-
based emission factors and
calculated our emissions
based on the amount we
spent on transportation
costs. The monetary
emissions factor was sourced
from the EPA database.
C5. Waste generated in
operations: Waste-type-
specific method. We
calculated the emissions
for waste generated in our
operations using the amount
of waste generated during
the year and waste specific
emission factors (factor
source: mainly DEFRA).
C6. Business travel: Spend-
based method. We used the
cost for business travel across
our Group for 2024 and then
we made assumptions for
the breakdown of that cost
in different categories (e.g.
hotel stays and meals).
We then applied relevant
monetary emissions factors
from the EPA database.
C7. Employee commuting:
Spend-Based Method: Our
calculations for this category
are based on the number of
employees. We estimated
employees’ commuting
distances (round trip) and
the number of working days,
applying a relevant emission
factor, sourced from the
DEFRA database.
C8. Upstream leased assets:
Emissions from operation of
assets leased by Kingspan,
already included in Scope
1 and 2 and therefore, this
Scope 3 category is assumed
to be not applicable.
C9. Downstream
transportation and
distribution: Reported under
category 4, in accordance
with GHG protocol guidance.
C10. Processing of sold
products: The majority of
Kingspan products do no
need processing, so this
category is assumed to be
not applicable.
C11. Use of sold products: This
category includes emissions
from blowing agents released
during product use. Each
blowing agent has an annual
loss rate, as provided by the
IPCC, which we apply over a
50-year period to estimate
total emissions. Using
IPCC data, we calculate
fugitive emissions taking
place annually from our
products. We then assume a
product lifespan and apply
the relevant annual loss
percentages to estimate total
emissions over the lifetime of
products sold in 2024.
C12. End of life treatment of
sold products: More than
80% of the emissions of
this category are attributed
to the end-of-life loss of
blowing agents used for
our insulation products.
The E-o-l percentage is
derived from IPPC. The rest
of the emissions are from
the end-of-life treatment
of sold products. They
are estimated based on
sold product volumes and
industry average end-of-life
management practices.
C13. Downstream leased assets:
Kingspan’s business model
does not include the lease
of assets to other entities,
so this scope 3 category
is assumed to be not
applicable.
C14. Franchises: The Group did
not operate any franchises,
so scope 3, category 14 is not
relevant to our operations.
C15. Investments: According to
the GHG protocol, category
15 is designed primarily for
private financial institutions
(e.g., commercial banks),
but is also relevant to public
financial institutions (e.g.,
multilateral development
banks, export credit
agencies) and other entities
with investments not
included in scope 1 and scope
2. As a result, it’s not relevant
for Kingspan.
Recalculations:
To ensure comparable boundaries
for each year, Kingspan
recalculates its emissions from
acquisitions prior to ownership for
all relevant categories ( C1, C2, C4,
C6, C7). An “all year” approach is
used to recalculate emissions for
the whole year, as recommended
by the GHG Protocol. These
emissions are retroactively added
to each year from 2020 (the base
year) onwards.
For 2024, scope 3 emissions for
acquisitions were calculated
as described above, covering
only the period of ownership.
To extrapolate to a full year,
an average monthly rate is
determined based on the related
data. This rate is then used
to estimate emissions for the
pre-ownership period, utilising
appropriate emission factors for
each period.
Appendix 5: Summary of Key Terms and Acronyms (continued):
Appendix 6: Methodologies and significant assumptions for the
calculation of GHG emissions (continued)
Annual Report & Financial Statements 2024
250
Kingspan Group plc
251
CSRD Sustainability Statement
253
Financial Statements
Financial
Statements
Kingspan Group plc
Annual Report & Financial Statements 2024
252
Independent Auditor’s Report
254
Consolidated Income Statement
264
Consolidated Statement of Comprehensive Income
265
Consolidated Statement of Financial Position
266
Consolidated Statement of Changes In Equity
267
Consolidated Statement of Cash Flows
269
Company Statement of Financial Position
270
Company Statement of Changes In Equity
271
Company Statement of Cash Flows
272
NOTES TO THE FINANCIAL STATEMENTS
273
1
Statement of Accounting Policies
273
2
Segment Reporting
283
3
Employees
286
4
Finance Expense And Finance Income
288
5
Profit For The Year Before Income Tax
288
6
Directors’ Remuneration
289
7
Income Tax Expense
290
8
Earnings Per Share
291
9
Goodwill
291
10 Other Intangible Assets
293
11 Property, Plant And Equipment
294
12 Financial Assets
295
13 Investment In Associates
295
14 Inventories
296
15 Trade And Other Receivables
296
16 Trade And Other Payables
297
17 Leases
297
18 Interest Bearing Loans And Borrowings
298
19 Deferred Contingent Consideration
300
20 Financial Risk Management And Financial Instruments
301
21 Provisions For Liabilities
310
22 Deferred Tax Assets And Liabilities
311
23 Business Combinations
312
24 Share Capital
315
25 Share Premium
315
26 Treasury Shares
316
27 Retained Earnings
316
28 Dividends
316
29 Non-Controlling Interest
317
30 Reconciliation Of Net Cash Flow To Movement In Net Debt
317
31 Guarantees And Other Financial Commitments
318
32 Pension Obligations
318
33 Related Party Transactions
322
34 Contingent Liabilities
323
35 Events Subsequent To Year End
324
36 Approval Of Financial Statements
324
OTHER INFORMATION
Alternative Performance Measures
325
Principal Subsidiaries and Substantial Undertakings
328
Shareholder Information
330
Corporate Information
331
Group 5 year summary
332
Crystal Bridges
Museum of
American Art
Arkansas, USA
Insulated Panels
Morin Pulse Panels
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
INDEPENDENT AUDITOR’S REPORT
to the Members of Kingspan Group plc
Report on the audit of the
financial statements
Opinion
We have audited the European Single
Electronic Format financial statements
(‘the financial statements’) of
Kingspan Group plc (‘the Company’)
and its subsidiaries (‘the Group’) for
the year ended 31 December 2024,
which comprise the Consolidated
Income Statement, the Consolidated
Statement of Comprehensive Income,
the Consolidated Statement of Financial
Position, the Consolidated Statement
of Changes in Equity, the Consolidated
Statement of Cash Flows, the Company
Statement of Financial Position, the
Company Statement of Changes in
Equity, the Company Statement of
Cash Flows and notes to the financial
statements, including the material
accounting policy information set out in
note 1. The financial reporting framework
that has been applied in their preparation
is Irish Law and International Financial
Reporting Standards (IFRS) as adopted
by the European Union and, as regards
the Company financial statements, as
applied in accordance with the provisions
of the Companies Act 2014.
In our opinion:
• the Group financial statements give
a true and fair view of the assets,
liabilities and financial position of the
Group as at 31 December 2024 and of
its profit for the year then ended;
• the Company statement of financial
position gives a true and fair view of
the assets, liabilities and financial
position of the Company as at 31
December 2024;
• the Group financial statements
have been properly prepared in
accordance with IFRS as adopted by
the European Union;
• the Company financial statements
have been properly prepared in
accordance with IFRS as adopted
by the European Union as applied in
accordance with the provisions of the
Companies Act 2014; and
• the Group financial statements and
Company financial statements have
been properly prepared in accordance
with the requirements of the
Companies Act 2014 and, as regards
the Group financial statements,
Article 4 of the IAS Regulation.
Basis for opinion
We conducted our audit in accordance
with International Standards on Auditing
(Ireland) (‘ISAs (Ireland)’) and applicable
law. Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the Audit of
the Financial Statements section of our
report. We are independent of the Group
and Company in accordance with ethical
requirements that are relevant to our
audit of financial statements in Ireland,
including the Ethical Standard as applied
to public interest entities issued by the
Irish Auditing and Accounting Supervisory
Authority (‘IAASA’), and we have fulfilled
our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for
our opinion.
Conclusions relating to
going concern
In auditing the financial statements,
we have concluded that the Directors’
use of the going concern basis of
accounting in the preparation of the
financial statements is appropriate. Our
evaluation of the Directors’ assessment
of the Group and Company’s ability to
continue to adopt the going concern
basis of accounting included:
• In conjunction with our walkthrough
of the Group’s financial statement
close process, we confirmed our
understanding of management’s
going concern assessment process
and also engaged with management
early to ensure all key factors were
considered in their assessment.
• We obtained management’s going
concern assessment, including
the cash forecast and covenant
calculation for the going concern
period which covers a period of at
least twelve months from the date of
signing this audit opinion.
• We considered the appropriateness
of the methods used to calculate
the cash forecasts and covenant
calculations and determined
through inspection and testing of
the methodology and calculations
that the methods utilised were
appropriately sophisticated to be able
to make an assessment for the Group.
• We considered the mitigating factors
included in the cash forecasts and
covenant calculations that are within
control of the Group. This includes
review of the Group’s non-operating
cash outflows and evaluating the
Group’s ability to control these
outflows as mitigating actions if
required.
• We performed reverse stress testing in
order to identify factors which would
lead to the Group utilising all liquidity
or breaching financial covenants
during the going concern assessment
period. None of these factors were
considered likely.
• We reviewed the Group’s going
concern disclosures included in the
annual report in order to assess that
the disclosures were appropriate
and in conformity with reporting
standards.
The Group continued to generate
significant operating cash flows which
amounted to €894.5 million in 2024.
At 31 December 2024, the Group has
unrestricted cash and cash equivalents of
€1,005.4 million and unused committed
debt facilities of up to €800 million from
a revolving bank credit facility expiring in
May 2027.
Conclusion
Based on the work we have performed,
we have not identified any material
uncertainties relating to events
or conditions that, individually or
collectively, may cast significant doubt
on the Group and Company’s ability to
continue as a going concern for a period
of at least twelve months from when
the financial statements are authorised
for issue.
In relation to the Group and Company’s
reporting on how they have applied the
UK Corporate Governance Code, we
have nothing material to add or draw
attention to in relation to the Directors’
statement in the financial statements
about whether the Directors considered it
appropriate to adopt the going concern
basis of accounting.
Our responsibilities and the
responsibilities of the Directors with
respect to going concern are described
in the relevant sections of this report.
However, because not all future events
or conditions can be predicted, this
statement is not a guarantee as to the
Group and the Company’s ability to
continue as a going concern.
Overview of our audit approach
Key audit matters
• The key audit matters that we identified in the current year were:
»
Warranty provisions included within Provisions for Liabilities
»
Revenue recognition
»
Accounting for acquisitions
Audit scope
• We performed an audit of the complete financial information of 20 operating units and performed
audit procedures on specific balances for a further 42 operating units and central procedures on
purchase price accounting for acquisitions, goodwill impairment testing, taxation and transfer pricing,
leases, share-based payments, retirement benefit obligations and going concern.
• We performed procedures at a further 18 operating units that were specified by the Group audit team in
response to specific risk factors.
• ‘Operating units’ represent business units across the Group considered for audit scoping purposes.
Materiality
• Overall Group materiality was assessed to be €41.6 million which represents approximately 5% of Group
Profit before tax.
The key audit matters set out in the table below are consistent with those reported in 2023, with the exception of the addition of
“Accounting for acquisitions” due to the increase in the size and level of acquisition activity in 2024.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements in the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources
in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The maintenance and integrity of the Kingspan Group plc web site is the responsibility of the directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the
financial statements since they were initially presented on the web site.
255
Financial Statements
254
Kingspan Group plc
Annual Report & Financial Statements 2024
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
Risk
Our response to the risk
Key observations
communicated to the
Audit & Compliance
Committee
Warranty provisions (included within
Provisions for Liabilities 2024: €164.3
million, 2023: €183.9 million)
The Group’s business involves the sale of
products under warranty, some of which
use new technology and applications.
Due to the nature of its product offering,
the Group has significant exposure to
warranty claims which are inherently
uncertain in nature. Management
are required to exercise significant
judgement with regard to warranty
provision assumptions.
Changes in these assumptions, which
may be subject to management
override, can materially affect the levels
of provisions recorded in the financial
statements due to the higher estimation
uncertainty on the Group’s costs of
repairing and replacing, or otherwise
making reparations for the consequences
of, product that is ascertained to
be faulty.
Refer to the Audit and Compliance
Committee Report (page 130); the
Statement of Accounting Policies (page
273); and note 21 of the Group Financial
Statements (page 310).
We performed audit procedures that included
understanding the Group’s process for recording and
monitoring potential warranty claims incorporating
management’s review of significant assumptions
applied in the provision calculation and the recording
of the resulting amounts (including walkthroughs of
the design and implementation of relevant controls);
consideration of the nature and basis of the provision;
review and assessment of correspondence in relation
to specific claims; progress on individual significant
claims; and relevant settlement history of claims and
utilisation of related provisions.
We tested the validity, completeness and accuracy
of the data used in the calculations of product
return rates. We evaluated and tested the Group’s
assumptions developed and used in the determination
of the provisions by examining potential failure rates,
considering past failure rates, the costs estimated for
remediation and examining related settlements where
necessary. We considered whether alternative rates
to those employed by management might be more
appropriate and further tested manual journal entries.
We substantively tested material movements in
the provisions, including warranty provisions arising
on acquisitions, and considered the accounting for
movements in the provision balances and the related
disclosures for compliance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets.
The above procedures are performed locally
by component teams. We performed full and
specific scope audit procedures over this risk at
38 operating units.
Our observations included
an outline of the audit
procedures performed,
management’s key
judgements and the
results of our testing.
Our planned audit
procedures in respect
of warranty provision
were completed without
exception.
Risk
Our response to the risk
Key observations
communicated to the
Audit & Compliance
Committee
Revenue recognition (2024: €8,608.0
million, 2023: €8,090.6 million)
There is a risk that revenue may be
inflated through management override
of controls by posting manual journal
adjustments to achieve revenue targets
or forecasts.
There is no significant judgement
or estimate associated with the
identified risk.
Refer to the Audit and Compliance
Committee Report (page 130); the
Statement of Accounting Policies (page
273); and note 2 of the Group Financial
Statements (page 283).
We performed procedures on revenue at all in-scope
components, as outlined in further detail in the
‘Tailoring the scope’ section below.
We obtained an understanding of each in-scope
component’s revenue recognition policy and how it
is applied (depending on the nature of the revenue
recognised at each component), including a
walkthrough of the design and implementation of
relevant controls; performed detailed transactional
testing of revenue recognised throughout the year,
commensurate with the higher audit risk assigned
to revenue; examined supporting documentation
including customer contracts and terms of
agreements, statements of works or purchase orders,
sales invoices, customer balance confirmations
and cash receipts to determine whether revenue is
recognised in accordance with terms of contracts and
the Group accounting policies. We also performed cut-
off procedures and review of credit memos and other
adjustments such as discounts and rebates.
For significant manual journals posted to revenue, we
identified journal sources, profiled journal activity by
month and compared it to the prior year, analysed who
posted these journals considering our understanding
of the process, and followed up on any unusual trends
and anomalies. We tested non-routine material top-
side adjustments recorded in revenue accounts.
In some components, we utilised data analytics
procedures. This included correlation analysis of
the strength of relationship between revenue and
other accounts to identify anomalies and unusual
journal entries.
We performed procedures on key financial statement
disclosures for compliance with IFRS 15 Revenue from
Contracts with Customers.
The above procedures are performed locally by
component teams. We performed full and specific
scope audit procedures over this risk at 55 locations.
Our observations included
an overview of the risk,
outline of the audit
procedures performed,
the judgements we
focused on and the results
of our testing.
Our planned audit
procedures in respect
of revenue recognition
were completed without
exception.
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Annual Report & Financial Statements 2024
257
Financial Statements
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
Risk
Our response to the risk
Key observations
communicated to the
Audit & Compliance
Committee
Accounting for acquisitions
Significant acquisitions identified
during the year relate to STEICO SE
(consideration of €510 million) and
Nordic Waterproofing Holding AB
(consideration of €162.3 million)
There is a risk of improper accounting for
the treatment of acquired businesses,
due to the level of estimation uncertainty
included in management’s assessments.
Specifically, fair value adjustments
to property, plant and equipment
(PP&E) and the need for complex and
judgemental valuation techniques to
be utilised.
Also, the recognition and valuation of
intangible assets recorded in the opening
balance sheets, require significant
estimates and judgements to be made
by management.
Refer to the Audit and Compliance
Committee Report (page 130); the
Statement of Accounting Policies (page
273); and note 23 of the Group Financial
Statements (page 312).
We obtained an understanding of the Group’s
process for accounting for acquisitions, including a
walkthrough of the design and implementation of
relevant controls.
We completed detailed procedures on the opening
balance sheets, purchase price allocations and fair
value adjustments, including the identification and
valuation of intangible assets where possible for
all significant acquisitions. Where the accounting
remained provisional for significant acquisitions, we
assessed the reasonableness of the provisional values
attributable to the assets and liabilities on the opening
balance sheets.
We reviewed key agreements including the share
purchase agreements for material acquisitions to
understand the key terms and conditions. We reviewed
the appropriateness of the valuation techniques used
to determine the fair value of PP&E and intangible
assets. This includes assessing whether the methods
are suitable for the specific assets being valued.
We identified the key assumptions and judgements
made by management and challenged the
appropriateness thereof by reference to external
information, where available.
In respect of the recognition and valuation of the
fair value adjustments to PP&E and intangibles,
we examined how the Group identified all material
adjustments, obtained related evidence and examined
the key assumptions and calculations used to
ensure they were recorded in accordance with IFRS 3
Business Combinations.
We remained alert to the risk of management override
of controls in the fair value measurement process and
the potential for bias in management's estimates
and judgments.
We performed an evaluation of any experts engaged
by management and sought assistance from our
own specialists and team members with specialised
skills. Whilst our procedures were principally focused
on recognition and valuation, we also assessed the
completeness of recorded intangibles.
We considered compliance with IFRS 3 regarding the
adequacy of the related disclosures.
Work performed to address this risk was undertaken by
the Group audit team.
Our observations included
an outline of the audit
procedures performed,
management’s key
judgements and the
results of our testing.
Our planned audit
procedures in respect
of accounting for
acquisitions were
completed without
exception.
Our application of materiality
We apply the concept of materiality
in planning and performing the audit,
in evaluating the effect of identified
misstatements on the audit and in
forming our audit opinion.
Materiality
The magnitude of an omission or
misstatement that, individually or in
the aggregate, could reasonably be
expected to influence the economic
decisions of the users of the financial
statements. Materiality provides a basis
for determining the nature and extent of
our audit procedures.
We determined materiality for the
Group to be €41.6 million (2023: €39.7
million), which is approximately 5% of
the Group’s Profit before tax (2023: 5%
of the Group’s Profit before tax). Profit
before tax is a key performance indicator
for the Group and is also a key metric
used by the Group in the assessment of
the performance of management. We
therefore considered the Group’s Profit
before tax to be the most appropriate
performance metric on which to base our
materiality calculation as we consider
it to be the most relevant performance
measure to the stakeholders of
the Group.
We determined materiality for the
Company to be €23.3 million (2023:
€22.8 million), which is approximately 1%
of total equity.
During the course of our audit, we
reassessed initial materiality and
considered that no further changes to
materiality were necessary.
Performance materiality
The application of materiality at the
individual account or balance level. It
is set at an amount to reduce to an
appropriately low level the probability
that the aggregate of uncorrected
and undetected misstatements
exceeds materiality.
On the basis of our risk assessments,
together with our assessment of the
Group’s overall control environment,
our judgement was that performance
materiality should be set at 50% (2023:
50%) of our planning materiality, namely
€20.8 million (2023: €19.9 million). We
have set performance materiality at this
percentage based on our assessment of
the risk of misstatements, both corrected
and uncorrected.
Audit work was undertaken at
component locations for the purpose
of responding to the assessed risks of
material misstatement of the Group
financial statements. The performance
materiality set for each component
is based on the relative scale and risk
of the component to the Group as a
whole and our assessment of the risk of
misstatement at that component.
In the current year, the range of
performance materiality allocated
to components was €4.0 million to
€6.0 million (2023: €3.9 million to
€5.89 million).
Reporting threshold
An amount below which identified
misstatements are considered as being
clearly trivial.
We agreed with the Audit & Compliance
Committee that we would report
to them all uncorrected audit
differences in excess of €2.1 million
(2023: €1.99 million), which is set at
5% of planning materiality, as well as
differences below that threshold that,
in our view, warranted reporting on
qualitative grounds.
We evaluate any uncorrected
misstatements against both the
quantitative measures of materiality
discussed above and in light of other
relevant qualitative considerations in
forming our opinion.
An overview of the scope of our
audit report
Tailoring the scope
We are required to establish an overall
audit strategy that sets the scope,
timing, and direction of our audit.
Audit scope comprises the operating
units, activities, and processes to be
audited that, in aggregate, are expected
to provide sufficient coverage of the
financial statements for us to express an
audit opinion.
In the current year our audit scoping
has been updated to reflect the new
requirements of ISA (Ireland) 600
(Revised). We followed a risk-based
approach when developing our audit
approach to obtain sufficient appropriate
audit evidence on which to base our
audit opinion. We performed risk
assessment procedures, with input from
our component auditors, to identify and
assess risks of material misstatement
of the Group financial statements
and identified significant accounts
and disclosures.
Our assessment of audit risk, our
evaluation of materiality and our
allocation of performance materiality
determined our audit scope for each
operating unit within which, when taken
together, enabled us to form an opinion
on the consolidated financial statements.
Our audit effort was focused towards
higher risk areas, such as management
judgements and on operating units that
we considered significant based upon
size, complexity or risk.
We assessed our 2024 audit scope
following the completion of our 2023
audit. We identified those operating
units that were significant by virtue
of their contribution to results or
significant by virtue of their associated
risk or complexity. In identifying the
operating units where we would perform
audit procedures, we considered
our understanding of its operating
environment, the potential impact of
climate change, the Group’s system
of internal control at the entity
level, centralised processes and IT
applications. We also considered the
history or expectation of unusual or
complex transactions, potential for
material misstatements, the previous
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Annual Report & Financial Statements 2024
259
Financial Statements
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
effectiveness of controls, our fraud
assessment and internal audit findings.
We then considered the adequacy of
account coverage and remaining audit
risk of operating units not directly
covered by audit procedures. Finally,
we assessed the appropriateness of
our audit scope by comparing to the
prior year; ensured that there was
sufficient unpredictability in our scope
and made the necessary changes
where appropriate. We applied our risk
analysis which consolidate internal and
external data to inform us on higher
risk components to be included in
scope. This allowed us to risk rate the
group’s operating units. We identified
80 operating units where we believed
that it was appropriate to carry out
targeted testing.
By following this approach, our audit
effort focused on higher risk areas,
such as management judgements. Our
group wide procedures enabled us to
obtain audit evidence over the operating
units that were full, specific or specified
procedure scope.
We did not make substantial changes to
our 2023 assessment of the components
where we performed audit procedures.
Also, there were no significant changes
to the number of IT applications
we tested.
1 These procedures were performed at operating units and at the group level, to address specified risks of the audit or for audit coverage purposes.
2 We performed supplementary audit procedures in relation to centralised group accounting and reporting processes. These included, but were not
limited to, purchase price accounting on significant acquisitions, goodwill impairment testing, taxation and transfer pricing, leases, share-based
payments, retirement benefit obligations and going concern.
We determined that certain centralised
audit procedures could be performed in
the following audit areas: purchase price
accounting for significant acquisitions,
goodwill impairment testing, taxation
and transfer pricing, leases, share-based
payments, retirement benefit obligations
and going concern.
We then identified 14 components
as individually relevant to the Group
due to relevant events and conditions
underlying the identified risks of material
misstatement of the Group financial
statements being associated with the
reporting components or a pervasive
risks of material misstatement of
the Group financial statements or a
significant risk or an area of higher
assessed risk of material misstatement
of the Group financial statements being
associated with the components and
26 of the components of the Group as
individual relevant due to materiality or
financial size of the component relative
to the Group.
For those individually relevant
components, we identified the
significant accounts where audit work
needed to be performed at these
components by applying professional
judgement, having considered the
Group significant accounts on which
centralised procedures will be performed,
the reasons for identifying the financial
reporting component as an individually
relevant component and the size of the
component’s account balance relative to
the Group significant financial statement
account balance.
We then considered whether the
remaining Group significant account
balances not yet subject to audit
procedures, in aggregate, could give rise
to a risk of material misstatement of the
Group financial statements. We selected
40 components of the Group to include
in our audit scope to address these risks.
Having identified the components
for which work will be performed, we
determined the scope to assign to
each component.
Of the 80 components selected,
we designed and performed audit
procedures on the entire financial
information of 20 components
(“full scope components”). For 42
components, we designed and performed
audit procedures on specific significant
accounts balances or disclosures of the
financial information of the component
(“specific scope component”). For
the remaining 18 components, we
performed specified audit procedures
to obtain evidence for one or more
relevant assertions.
We kept our audit scope under review throughout the year to reflect changes in the underlying business and risks; however, no
significant changes were required. The table below illustrates the scope of work performed by our audit teams:
Operating Units
procedures
2024
2023
No. of
Countries
Basis of inclusion
Extent of
Full Scope
20
23
11
Size & significant risk
Complete financial information
Specific Scope
42
37
18
Significant risk or higher risk estimates
Individual account balances
Specified Procedures1
18
16
7
Other risk factors
Individual transactions or processes
Other Procedures
419
392
58
Residual risk of error
Supplementary audit procedures2
Total
499
468
Involvement with component teams
In establishing our overall approach to
the Group audit, we determined the type
of work that needed to be undertaken
at each of the components by us, as
the Group audit engagement team, or
by component auditors operating under
our instruction.
The Group audit team continued to
follow a programme of planned visits
that has been designed to ensure that
senior members of the Group audit
team, including the Audit Engagement
Partner, visit a number of overseas
locations. During the current year’s audit
cycle, visits were undertaken by the
primary audit team to the component
teams in the UK, Canada, USA, Brazil,
Poland, Germany and Belgium. These
visits involved discussing the audit
approach and any issues arising with the
component team, holding discussions
with local management, and attending
closing meetings as well as review of
component team files. The Group audit
team interacted regularly with the
component teams where appropriate
during various stages of the audit,
reviewed relevant working papers and
were responsible for the scope and
direction of the audit process. Where
relevant, the section on key audit
matters details the level of involvement
we had with component auditors to
enable us to determine that sufficient
audit evidence has been obtained as a
basis for our opinion on the Group as
a whole.
This, together with the additional
procedures performed at Group
level, gave us appropriate evidence
for our opinion on the Group
financial statements.
Other conclusions relating to principal
risks, going concern and viability
statement
We have nothing to report in respect of
the following information in the annual
report, in relation to which the ISAs
(Ireland) require us to report to you
whether we have anything material to
add or draw attention to:
• the disclosures in the annual report set
out on pages 56 to 65 that describe
the principal risks and explain how
they are being managed or mitigated;
• the Directors’ confirmation set out on
pages 150 to 151 in the annual report
that they have carried out a robust
assessment of the principal risks
facing the Group and the Company,
including those that would threaten its
business model, future performance,
solvency or liquidity;
• the Directors’ statement set out on
page 150 in the financial statements
about whether the Directors
considered it appropriate to adopt the
going concern basis of accounting in
preparing the financial statements
and the directors’ identification of
any material uncertainties to the
Group’s and the Company’s ability to
continue to do so over a period of at
least twelve months from the date of
approval of the financial statements;
• whether the Directors’ statement
relating to going concern required
under the Listing Rules of Euronext
Dublin is materially inconsistent with
our knowledge obtained in the audit;
or
• the Directors’ explanation set out
on page 150 to 151 in the annual
report as to how they have assessed
the prospects of the Group and the
Company, over what period they
have done so and why they consider
that period to be appropriate, and
their statement as to whether they
have a reasonable expectation that
the Group and the Company will be
able to continue in operation and
meet its liabilities as they fall due
over the period of their assessment,
including any related disclosures
drawing attention to any necessary
qualifications or assumptions.
Corporate Governance Statement
We report, in relation to information
given in the Corporate Governance
Statement on pages 90 to 99 that:
• in our opinion, based on the work
undertaken during the course of the
audit, the information given in the
Corporate Governance Statement
pursuant to subsections 2(c) and (d)
of section 1373 of the Companies Act
2014 is consistent with the Company’s
statutory financial statements
in respect of the financial year
concerned and such information has
been prepared in accordance with
the Companies Act 2014. Based on
our knowledge and understanding of
the Company and its environment
obtained in the course of the audit,
we have not identified any material
misstatements in this information;
• in our opinion, based on the work
undertaken during the course of the
audit, the Corporate Governance
Statement contains the information
required by Regulation 6(2) of the
European Union (Disclosure of Non-
Financial and Diversity Information
by certain large undertakings and
Groups) Regulations 2017; and
• in our opinion, based on the work
undertaken during the course of
the audit, the information required
pursuant to section 1373(2)(a),(b),(e)
and (f) of the Companies Act
2014 is contained in the Corporate
Governance Statement.
Other information
The Directors are responsible for the
other information. The other information
comprises the information included in the
annual report other than the financial
statements and our auditor’s report
thereon. Our opinion on the financial
statements does not cover the other
information and, except to the extent
otherwise explicitly stated in our report,
we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other
information and, in doing so, consider
whether the other information is
materially inconsistent with the financial
statements or our knowledge obtained
in the audit or otherwise appears to be
materially misstated. If we identify such
material inconsistencies or apparent
material misstatements, we are required
to determine whether there is a material
misstatement in the financial statements
or a material misstatement of the other
information. If, based on the work we
have performed, we conclude that there
is a material misstatement of this other
information, we are required to report
that fact.
We have nothing to report in this regard.
260
Kingspan Group plc
Annual Report & Financial Statements 2024
261
Financial Statements
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
INDEPENDENT AUDITOR’S REPORT (continued)
to the Members of Kingspan Group plc
In this context, we also have nothing to
report in regard to our responsibility to
specifically address the following items
in the other information and to report
as uncorrected material misstatements
of the other information where we
conclude that those items meet the
following conditions:
• Fair, balanced and understandable –
(set out on page 151)- the statement
given by the Directors that they
consider the annual report and
financial statements taken as a whole
is fair, balanced and understandable
and provides the information
necessary for shareholders to assess
the Group’s and the Company’s
performance, business model and
strategy, is materially inconsistent
with our knowledge obtained in the
audit; or
• Audit & Compliance Committee
reporting – (set out on page 130 to
141)- the section describing the work
of the Audit & Compliance Committee
does not appropriately address
matters communicated by us to
the Audit & Compliance Committee
is materially inconsistent with our
knowledge obtained in the audit; or
• Directors’ statement of compliance
with the UK Corporate Governance
Code (set out on page 90 to 99)– the
parts of the Directors’ statement
required under the Listing Rules
relating to the Company’s compliance
with the UK Corporate Governance
Code containing provisions
specified for review by the auditor
in accordance with the Listing Rules
of Euronext Dublin do not properly
disclose a departure from a relevant
provision of the UK Corporate
Governance Code.
Opinions on other matters
prescribed by the Companies
Act 2014
In our opinion, based solely on the work
undertaken in the course of the audit, we
report that:
• the information given in the Directors’
Report, other than those parts dealing
with the non-financial statement
pursuant to the requirements of S.I.
No. 360/2017, is consistent with the
financial statements; and
• the Directors’ Report, other than
those parts relating to sustainability
reporting required by Part 28 of
the Companies Act 2014 and
those parts dealing with the non-
financial statement pursuant to the
requirements of S.I. No. 360/2017 has
been prepared in accordance with the
Companies Act 2014.
We have obtained all the information
and explanations which, to the best of
our knowledge and belief, are necessary
for the purposes of our audit.
In our opinion the accounting records of
the Company were sufficient to permit
the financial statements to be readily
and properly audited and the Company
statement of financial position is in
agreement with the accounting records.
Matters on which we are required
to report by exception
Based on the knowledge and
understanding of the Group and its
environment obtained in the course of
the audit, we have not identified material
misstatements in the Directors’ report.
The Companies Act 2014 requires us
to report to you if, in our opinion, the
disclosures required by sections 305 to
312 of the Act, which relate to disclosures
of Directors’ remuneration and
transactions, are not complied with by
the Company. We have nothing to report
in this regard.
We have nothing to report in respect
of section 13 of the European Union
(Disclosure of Non-Financial and
Diversity Information by certain large
undertakings and Groups) Regulations
2017, which require us to report to you
if, in our opinion, the Company has not
provided in the non-financial statement
the information required by Section 5(2)
to (7) of those Regulations, in respect of
year ended 31 December 2023.
The Companies Act 2014 also requires
us to report to you if, in our opinion,
the Company has not provided the
information required by Section 1110N in
relation to its remuneration report for
the financial 31 December 2023. We have
nothing to report in this regard.
The Listing Rules of the Irish Stock
Exchange require us to review:
• the Directors’ statement, set out on
pages 142 to 153, in relation to going
concern and longer-term viability;
• the part of the Corporate Governance
Statement on page 90 to 99 relating
to the Company’s compliance with
the provisions of the UK Corporate
Governance Code specified for our
review; and
• certain elements of disclosures in the
report to shareholders by the Board on
Directors’ remuneration.
Respective responsibilities
Responsibilities of Directors for
the financial statements
As explained more fully in the Directors’
responsibilities statement set out on
pages 142 to 153, the Directors are
responsible for the preparation of the
financial statements in accordance
with the applicable financial reporting
framework that give a true and fair view,
and for such internal control as they
determine is necessary to enable the
preparation of financial statements that
are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements,
the Directors are responsible for assessing
the Group and the Company’s ability to
continue as going concerns, disclosing,
as applicable, matters related to going
concern and using the going concern
basis of accounting unless management
either intends to liquidate the Group or
the Company or to cease operations, or
has no realistic alternative but to do so.
Auditor’s responsibilities for the audit
of the financial statements
Our objectives are to obtain reasonable
assurance about whether the financial
statements as a whole are free from
material misstatement, whether due to
fraud or error, and to issue an auditor’s
report that includes our opinion.
Reasonable assurance is a high level
of assurance but is not a guarantee
that an audit conducted in accordance
with ISAs (Ireland) will always detect a
material misstatement when it exists.
Misstatements can arise from fraud
or error and are considered material
if, individually or in the aggregate,
they could reasonably be expected
to influence the economic decisions
of users taken on the basis of these
financial statements.
Explanation to what extent the audit
was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are
instances of non-compliance with laws
and regulations. We design procedures
in line with our responsibilities, outlined
above, to detect irregularities, including
fraud, that could reasonably be expected
to have a material effect on the financial
statements. The risk of not detecting a
material misstatement due to fraud is
higher than the risk of not detecting one
resulting from error, as fraud may involve
deliberate concealment by, for example,
forgery or intentional misrepresentations,
or through collusion. In addition, the
further removed any non-compliance
is from the events and transactions
reflected in the financial statements, the
less likely it is that our procedures will
identify such non-compliance. The extent
to which our procedures are capable
of detecting irregularities, including
fraud is detailed below. However, the
primary responsibility for the prevention
and detection of fraud rests with both
those charged with governance of the
Company and management.
Our approach was as follows:
• We obtained an understanding of
the legal and regulatory frameworks
that are applicable to the Group
and determined that the most
significant are those that relate to
the form and content of external
financial and corporate governance
reporting including company law,
tax legislation, employment law and
regulatory compliance;
• We understood how the Group
companies are complying with those
frameworks by making enquiries of
management, internal audit, those
responsible for legal and compliance
procedures and the Company
Secretary. We corroborated our
enquiries through our review of the
Group’s Compliance Policies, board
minutes, papers provided to the
Audit & Compliance Committee
and correspondence received with
regulatory bodies;
• We assessed the susceptibility of
the Group’s financial statements to
material misstatement, including
how fraud might occur by meeting
with management, including within
various parts of the business, to
understand where they considered
there was susceptibility to fraud. We
also considered performance targets
and the potential for management to
influence earnings or the perceptions
of analysts. Where this risk was
considered to be higher, we performed
audit procedures to address each
identified fraud risk. These procedures
included testing manual journals and
were designed to provide reasonable
assurance that the financial
statements were free from fraud
or error; and
• Based on this understanding we
designed our audit procedures to
identify non-compliance with such
laws and regulations. Our procedures
included a review of board minutes
to identify any non-compliance with
laws and regulations, a review of the
reporting to the Audit & Compliance
Committee on compliance with
regulations; and enquiries of
internal and external legal counsel
and management. We have involved
our own internal legal specialists in the
execution of certain procedures.
A further description of our
responsibilities for the audit of the
financial statements is located on the
IAASA’s website at: https://iaasa.ie/
wp-content/uploads/docs/media/
IAASA/Documents/audit-standards/
Description_of_auditors_responsibilities_
for_audit.pdf. This description forms part
of our auditor’s report.
Other matters which we are
required to address
We were appointed by the Board of
Directors following the AGM held on
1 May 2020 to audit the financial
statements for the year ended 31
December 2020 and subsequent financial
periods. The period of total uninterrupted
engagement including previous renewals
and reappointments of the firm is
5 years.
The non-audit services prohibited by
IAASA’s Ethical Standard were not
provided to the Group and we remain
independent of the Group in conducting
our audit.
Our audit opinion is consistent with
the additional report to the Audit &
Compliance Committee.
The purpose of our audit work
and to whom we owe our
responsibilities
Our report is made solely to the
Company’s members, as a body, in
accordance with section 391 of the
Companies Act 2014. Our audit work
has been undertaken so that we might
state to the Company’s members
those matters we are required to state
to them in an auditor’s report and for
no other purpose. To the fullest extent
permitted by law, we do not accept or
assume responsibility to anyone other
than the Company and the Company’s
members, as a body, for our audit work,
for this report, or for the opinions we
have formed.
Dermot Daly
for and on behalf of
Ernst & Young Chartered Accountants
and Statutory Audit Firm Dublin
26 February 2025
262
Kingspan Group plc
Annual Report & Financial Statements 2024
263
Financial Statements
CONSOLIDATED INCOME STATEMENT
For The Year Ended 31 December 2024
Note
2024
€m
2023
€m
REVENUE
2
8,608.0
8,090.6
Cost of sales
(6,061.6)
(5,750.9)
GROSS PROFIT
2,546.4
2,339.7
Operating costs, excluding intangible amortisation
(1,639.7)
(1,462.8)
TRADING PROFIT
2
906.7
876.9
Intangible amortisation
10
(44.6)
(41.7)
OPERATING PROFIT
862.1
835.2
Finance expense
4
(67.4)
(63.7)
Finance income
4
35.4
22.7
Share of associates’ profit after tax
13
1.7
-
PROFIT FOR THE YEAR BEFORE INCOME TAX
5
831.8
794.2
Income tax expense
7
(141.0)
(140.3)
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS
690.8
653.9
Attributable to owners of Kingspan Group plc
665.5
640.3
Attributable to non-controlling interests
29
25.3
13.6
690.8
653.9
EARNINGS PER SHARE FOR THE YEAR
Basic
8
365.2c
352.3c
Diluted
8
362.3c
349.6c
Gene Murtagh
Geoff Doherty
25 February 2025
Chief Executive Officer
Chief Financial Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For The Year Ended 31 December 2024
Note
2024
€m
2023
€m
Profit for the year
690.8
653.9
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
93.0
(19.0)
Effective portion of changes in fair value of cash flow hedges
0.3
(0.6)
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/(losses) on defined benefit pension schemes
32
3.4
(5.0)
Income taxes relating to actuarial (gains)/ losses on defined benefit pension schemes
22
(0.5)
0.4
Equity investments at FVOCI – net change in fair value
12
(2.7)
12.5
Total other comprehensive income/(loss)
93.5
(11.7)
Total comprehensive income for the year
784.3
642.2
Attributable to owners of Kingspan Group plc
769.8
626.4
Attributable to non-controlling interests
29
14.5
15.8
784.3
642.2
264
Kingspan Group plc
Annual Report & Financial Statements 2024
265
Financial Statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As At 31 December 2024
Note
2024
€m
2023
€m
ASSETS
NON-CURRENT ASSETS
Goodwill
9
3,365.7
2,660.6
Other intangible assets
10
239.2
188.4
Investment in associates
13
14.5
-
Financial assets
12
23.9
128.4
Property, plant and equipment
11
2,254.2
1,567.2
Right of use assets
17
235.8
219.2
Retirement benefit assets
32
4.3
1.0
Deferred tax assets
22
84.5
79.6
6,222.1
4,844.4
CURRENT ASSETS
Inventories
14
1,197.1
964.3
Trade and other receivables
15
1,390.2
1,254.2
Derivative financial instruments
20
4.7
-
Cash and cash equivalents
18
1,005.4
938.7
3,597.4
3,157.2
TOTAL ASSETS
9,819.5
8,001.6
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
16
1,560.2
1,346.1
Provisions for liabilities
21
55.9
70.2
Lease liabilities
17
63.9
48.0
Derivative financial instruments
20
-
0.2
Deferred contingent consideration
19
345.5
190.2
Interest bearing loans and borrowings
18
197.7
200.6
Current income tax liabilities
29.3
57.6
2,252.5
1,912.9
NON-CURRENT LIABILITIES
Retirement benefit obligations
32
41.8
38.0
Provisions for liabilities
21
108.4
113.7
Interest bearing loans and borrowings
18
2,385.3
1,717.6
Lease liabilities
17
174.7
171.8
Deferred tax liabilities
22
113.9
60.9
Deferred contingent consideration
19
152.1
38.9
2,976.2
2,140.9
TOTAL LIABILITIES
5,228.7
4,053.8
NET ASSETS
4,590.8
3,947.8
EQUITY
Share capital
24
24.0
23.9
Share premium
25
215.9
129.3
Capital redemption reserve
0.7
0.7
Treasury shares
26
(186.8)
(55.8)
Other reserves
(401.1)
(336.7)
Retained earnings
4,639.8
4,086.6
EQUITY ATTRIBUTABLE TO OWNERS OF KINGSPAN GROUP PLC
4,292.5
3,848.0
NON-CONTROLLING INTEREST
29
298.3
99.8
TOTAL EQUITY
4,590.8
3,947.8
Gene Murtagh
Geoff Doherty
25 February 2025
Chief Executive Officer
Chief Financial Officer
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2024
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
Balance at 1 January 2024
23.9 129.3
0.7
(55.8) (158.4)
-
61.3
0.7 (240.3)
- 4,086.6 3,848.0
99.8 3,947.8
Transactions with owners
recognised directly in equity
Employee share-based
compensation
-
-
-
-
-
-
19.9
-
-
-
-
19.9
-
19.9
Tax on employee share-based
compensation
-
-
-
-
-
-
(2.2)
-
-
-
2.4
0.2
-
0.2
Exercise or lapsing of share
options
-
23.9
-
3.6
-
- (14.7)
-
-
-
(12.8)
-
-
-
Repurchase of shares
-
-
- (134.6)
-
-
-
-
-
-
(0.3) (134.9)
- (134.9)
Dividends
-
-
-
-
-
-
-
-
-
-
(96.6)
(96.6)
-
(96.6)
Share consideration for acquisition
0.1
62.7
-
-
-
-
-
-
-
12.3
-
75.1
-
75.1
Transactions with non-controlling
interests:
Arising on acquisition
-
-
-
-
-
-
-
- (148.8)
-
- (148.8) 264.8
116.0
Purchase of NCI
-
-
-
-
-
-
-
-
-
-
(5.2)
(5.2) (88.2)
(93.4)
Increase in NCI
-
-
-
-
-
-
-
-
-
-
-
-
8.4
8.4
Dividends to NCI
-
-
-
-
-
-
-
-
-
-
-
-
(1.0)
(1.0)
Fair value movement
-
-
-
-
-
-
-
-
(35.0)
-
-
(35.0)
-
(35.0)
Transactions with owners
0.1
86.6
- (131.0)
-
-
3.0
- (183.8)
12.3 (112.5) (325.3) 184.0 (141.3)
Total comprehensive income
for the year
Profit for the year
-
-
-
-
-
-
-
-
-
-
665.5
665.5
25.3
690.8
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Cash flow hedging in equity
- current year
-
-
-
-
-
0.3
-
-
-
-
-
0.3
-
0.3
- tax impact
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Exchange differences on
translating foreign operations
-
-
-
-
103.8
-
-
-
-
-
-
103.8 (10.8)
93.0
Items that will not be
reclassified subsequently to
profit or loss
Actuarial gains on defined benefit
pension scheme
-
-
-
-
-
-
-
-
-
-
3.4
3.4
-
3.4
Income taxes relating to actuarial
gains on defined benefit pension
scheme
-
-
-
-
-
-
-
-
-
-
(0.5)
(0.5)
-
(0.5)
Equity investments at FVOCI – net
change in fair value
-
-
-
-
-
-
-
-
-
-
(2.7)
(2.7)
-
(2.7)
Total comprehensive income
for the year
-
-
-
-
103.8
0.3
-
-
-
-
665.7
769.8
14.5
784.3
Balance at 31 December 2024
24.0 215.9
0.7 (186.8)
(54.6)
0.3
64.3
0.7 (424.1)
12.3 4,639.8 4,292.5 298.3 4,590.8
Total Equity
Non-Controlling Interest
Total Attributable to
Owners of the Parent
Retained Earnings
Other Reserve
Put Option Liability Reserve
Revaluation Reserve
Share-based Payment Reserve
Cash Flow Hedging Reserve
Translation Reserve
Treasury Shares
Capital Redemption Reserve
Share Premium
Share Capital
266
Kingspan Group plc
Annual Report & Financial Statements 2024
267
Financial Statements
267
Financial Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2023
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
€m
Balance at 1 January 2023
23.9 112.4
0.7 (56.9) (137.2)
0.6
55.1
0.7 (207.2) 3,527.6
3,319.7
75.8 3,395.5
Transactions with owners
recognised directly in equity
Employee share-based
compensation
-
-
-
-
-
-
22.7
-
-
-
22.7
-
22.7
Tax on employee share-based
compensation
-
-
-
-
-
-
3.2
-
-
1.4
4.6
-
4.6
Exercise or lapsing of share options
-
16.9
-
1.8
-
- (19.7)
-
-
1.0
-
-
-
Repurchase of shares
-
-
-
(0.7)
-
-
-
-
-
-
(0.7)
-
(0.7)
Dividends
-
-
-
-
-
-
-
-
-
(91.2)
(91.2)
-
(91.2)
Transactions with non-controlling
interests:
Arising on acquisition
-
-
-
-
-
-
-
-
(22.9)
-
(22.9)
7.7
(15.2)
Increase in NCI
-
-
-
-
-
-
-
-
-
(0.4)
(0.4)
1.4
1.0
Dividends to NCI
-
-
-
-
-
-
-
-
-
-
-
(0.9)
(0.9)
Fair value movement
-
-
-
-
-
-
-
-
(10.2)
-
(10.2)
-
(10.2)
Transactions with owners
-
16.9
-
1.1
-
-
6.2
-
(33.1)
(89.2)
(98.1)
8.2
(89.9)
Total comprehensive income for
the year
Profit for the year
-
-
-
-
-
-
-
-
-
640.3
640.3
13.6
653.9
Other comprehensive loss:
Items that may be reclassified
subsequently to profit or loss
Cash flow hedging in equity
- current year
-
-
-
-
-
(0.6)
-
-
-
-
(0.6)
-
(0.6)
- tax impact
-
-
-
-
-
-
-
-
-
-
-
-
-
Exchange differences on
translating foreign operations
-
-
-
-
(21.2)
-
-
-
-
-
(21.2)
2.2
(19.0)
Items that will not be
reclassified subsequently to
profit or loss
Actuarial losses on defined benefit
pension scheme
-
-
-
-
-
-
-
-
-
(5.0)
(5.0)
-
(5.0)
Income taxes relating to actuarial
losses on defined benefit pension
scheme
-
-
-
-
-
-
-
-
-
0.4
0.4
-
0.4
Equity investments at FVOCI – net
change in fair value
-
-
-
-
-
-
-
-
-
12.5
12.5
-
12.5
Total comprehensive income for
the year
-
-
-
-
(21.2)
(0.6)
-
-
-
648.2
626.4
15.8
642.2
Balance at 31 December 2023
23.9 129.3
0.7 (55.8) (158.4)
-
61.3
0.7 (240.3) 4,086.6
3,848.0
99.8 3,947.8
Total Equity
Non-Controlling Interest
Total Attributable to
Owners of the Parent
Retained Earnings
Put Option Liability Reserve
Revaluation Reserve
Share-based Payment Reserve
Cash Flow Hedging Reserve
Translation Reserve
Treasury Shares
Capital Redemption Reserve
Share Premium
Share Capital
CONSOLIDATED STATEMENT OF CASH FLOWS
For The Year Ended 31 December 2024
Note
2024
€m
2023
€m
OPERATING ACTIVITIES
Profit for the year
690.8
653.9
Add back non-cash and/or non-operating expenses:
Income tax expense
7
141.0
140.3
Depreciation
5
231.9
190.9
Amortisation of intangible assets
10
44.6
41.7
Impairment of property, plant and equipment
11
3.9
2.9
Employee equity settled share options
3
19.9
22.7
Finance income
4
(35.4)
(22.7)
Finance expense
4
67.4
63.7
Profit on sale of property, plant and equipment
5
(7.9)
(1.3)
Movement of deferred contingent consideration
-
0.3
Changes in working capital:
Inventories
(67.4)
299.2
Trade and other receivables
56.0
74.0
Trade and other payables
21.4
(75.1)
Other:
Change in provisions
(26.3)
(2.6)
Defined benefit pension scheme buy in settlement
-
(15.9)
Pension contributions
32
(2.6)
(3.4)
Cash generated from operations
1,137.3
1,368.6
Income tax paid
(184.3)
(147.5)
Interest paid
(58.5)
(58.9)
Net cash flow from operating activities
894.5
1,162.2
INVESTING ACTIVITIES
Additions to property, plant and equipment
(366.3)
(234.2)
Additions to intangible assets
(0.4)
(3.5)
Additions to investment in associates
(1.0)
-
Proceeds from disposals of property, plant and equipment
32.9
4.2
Purchase of subsidiary undertakings (including net debt/cash acquired)
23
(775.3)
(219.6)
Transactions involving non-controlling interests
-
1.0
Purchase of financial asset
(17.5)
(22.2)
Dividends from investment in associates
13
0.3
-
Payment of deferred contingent consideration
19
(1.1)
(6.6)
Finance income received
17.4
22.6
Net cash flow from investing activities
(1,111.0)
(458.3)
FINANCING ACTIVITIES
Drawdown of loans
30
899.7
319.0
Repayment of loans and borrowings
30
(246.2)
(582.0)
Acquisition of minority interest
(93.4)
-
Acquired derivative financial instruments not settled in period
(4.6)
-
Payment of lease liability
17
(68.7)
(60.5)
Repurchase of shares
26
(134.6)
(0.7)
Dividends paid to non-controlling interest
29
(1.0)
(0.9)
Dividends paid
28
(96.6)
(91.2)
Net cash flow from financing activities
254.6
(416.3)
INCREASE IN CASH AND CASH EQUIVALENTS
30
38.1
287.6
Effect of movement in exchange rates on cash held
28.6
1.8
Cash and cash equivalents at the beginning of the year
938.7
649.3
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
1,005.4
938.7
268
Kingspan Group plc
Annual Report & Financial Statements 2024
269
Financial Statements
COMPANY STATEMENT OF FINANCIAL POSITION
As At 31 December 2024
Note
2024
€m
2023
€m
ASSETS
NON-CURRENT ASSETS
Investments in subsidiaries
12
2,328.0
2,118.4
CURRENT ASSETS
Amounts owed by group undertakings
15
18.3
165.9
Cash and cash equivalents
0.4
0.4
TOTAL ASSETS
2,346.7
2,284.7
LIABILITIES
CURRENT LIABILITIES
Amounts owed to group undertakings
16
0.1
0.1
Payables
16
0.5
0.2
TOTAL LIABILITIES
0.6
0.3
NET ASSETS
2,346.1
2,284.4
EQUITY
Equity attributable to owners of Kingspan Group plc
Share capital
24
24.0
23.9
Share premium
25
215.9
129.3
Capital redemption reserve
0.7
0.7
Treasury shares
26
(186.8)
(55.8)
Retained earnings
27
2,292.3
2,186.3
TOTAL EQUITY
2,346.1
2,284.4
In accordance with section 304 of the Companies Act 2014, the Company’s profit for the financial year was €194.6m (2023: profit
of €1,000.1m).
Gene Murtagh
Geoff Doherty
25 February 2025
Chief Executive Officer
Chief Financial Officer
COMPANY STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2024
Share
Capital
Share
Premium
Capital
Redemption
Reserve
Treasury
Shares
Retained
Earnings
Total Equity
€m
€m
€m
€m
€m
€m
Balance at 1 January 2024
23.9
129.3
0.7
(55.8)
2,186.3
2,284.4
Shares issued
0.1
86.6
-
3.6
(11.9)
78.4
Repurchase of shares
-
-
-
(134.6)
-
(134.6)
Employee share-based compensation
-
-
-
-
19.9
19.9
Dividends
-
-
-
-
(96.6)
(96.6)
Transactions with owners
0.1
86.6
-
(131.0)
(88.6)
(132.9)
Profit for the year
-
-
-
-
194.6
194.6
Balance at 31 December 2024
24.0
215.9
0.7
(186.8)
2,292.3
2,346.1
Share
Capital
Share
Premium
Capital
Redemption
Reserve
Treasury
Shares
Retained
Earnings
Total Equity
€m
€m
€m
€m
€m
€m
Balance at 1 January 2023
23.9
112.4
0.7
(56.9)
1,263.2
1,343.3
Shares issued
-
16.9
-
1.8
(8.5)
10.2
Repurchase of shares
-
-
-
(0.7)
-
(0.7)
Employee share-based compensation
-
-
-
-
22.7
22.7
Dividends
-
-
-
-
(91.2)
(91.2)
Transactions with owners
-
16.9
-
1.1
(77.0)
(59.0)
Profit for the year
-
-
-
-
1,000.1
1,000.1
Balance at 31 December 2023
23.9
129.3
0.7
(55.8)
2,186.3
2,284.4
270
Kingspan Group plc
Annual Report & Financial Statements 2024
271
Financial Statements
COMPANY STATEMENT OF CASH FLOWS
For The Year Ended 31 December 2024
2024
€m
2023
€m
OPERATING ACTIVITIES
Profit for the year after tax
194.6
1,000.1
Net cash flow from operating activities
194.6
1,000.1
FINANCING ACTIVITIES
Change in receivables
147.6
134.2
Change in payables
0.3
(195.4)
Repurchase of shares
(134.6)
(0.7)
Proceeds from shares issued
62.8
-
Proceeds from equity settled share scheme
27.3
18.7
Dividends paid
(96.6)
(91.2)
Net cash flow from financing activities
6.8
(134.4)
INVESTING ACTIVITIES
Investment in subsidiaries
(201.4)
(865.7)
Net cash flow from investing activities
(201.4)
(865.7)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
0.4
0.4
Net increase in cash and cash equivalents
-
-
CASH AND CASH EQUIVALENTS AT END OF YEAR
0.4
0.4
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
1
Statement of Accounting Policies
General information
Kingspan Group plc is a public limited
company registered and domiciled in
Ireland. Its registered number is 70576
and the address of its registered office is
Dublin Road, Kingscourt, Co Cavan.
The principal activities of Kingspan
Group plc (“the Group”) comprise the
manufacture of insulated panels, rigid
insulation boards, stonewool, bio-based
and technical insulation, architectural
facades, roofing and waterproofing
solutions, data solutions, daylighting
and ventilation systems and water and
energy solutions. The Group’s Principal
Subsidiary Undertakings are set out on
page 328 to 329.
Statement of compliance
The consolidated and Company financial
statements have been prepared in
accordance with International Financial
Reporting Standards (IFRSs) and
their interpretations issued by the
International Accounting Standards
Board (IASB) as adopted by the EU and
those parts of the Companies Acts 2014,
applicable to companies reporting under
IFRS and Article 4 of the IAS Regulation.
The Company has availed of the
exemption in Section 304 of the
Companies Act 2014 and has not
presented the Company Income
Statement, which forms part of the
Company’s financial statements,
to its members and the Registrar
of Companies.
Basis of preparation
The financial statements have been
prepared on a going concern basis,
under the historical cost convention, as
modified by:
• measurement at fair value of share-
based payments at initial date
of award;
• certain financial assets (including
derivative financial instruments) and
deferred contingent consideration
recognised and measured at fair
value; and
• recognition of the defined benefit
liability as plan assets less the present
value of the defined benefit obligation.
The accounting policies set out below
have been applied consistently to all
years presented in these financial
statements, unless otherwise stated.
These consolidated financial statements
have been prepared in Euro (millions),
rounded to one decimal point. The Euro
is the presentation currency of the Group
and the functional and presentation
currency of the Company.
The Group uses a number of Alternative
Performance Measures (APMs)
throughout these financial statements
to give assistance to investors in
evaluating the performance of the
underlying business and to give a better
understanding of how management
review and monitor the business on an
ongoing basis. These APMs have been
defined and explained in more detail on
page 325 to 327.
Changes in Accounting Policies and Disclosures
New and amended standards and interpretations effective during 2024
The following amendments to standards and interpretations are effective for the Group from 1 January 2024 and do not have a
material effect on the results or financial position of the Group:
Effective Date – periods
beginning on or after
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures:
Supplier Finance Arrangements
1 January 2024
Amendments to IAS 1 Presentation of Financial Statements – Classification of Liabilities as
Current or Non-current, Classification of Liabilities as Current or Non-current – Deferral of
Effective Date and Non-current Liabilities with Covenants
1 January 2024
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
1 January 2024
272
Kingspan Group plc
Annual Report & Financial Statements 2024
273
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
1
Statement of Accounting Policies (continued)
There are a number of new standards, amendments to standards and interpretations that are not yet effective and have not been
applied in preparing these consolidated financial statements. These new standards, amendments to standards and interpretations
are either not expected to have a material impact on the Group’s financial statements or are still under assessment by the Group.
The principal new standards, amendments to standards and interpretations are as follows:
Effective Date – periods
beginning on or after
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability
1 January 2025
Amendments to the Classification and Measurement of Financial Instruments (Amendments to
IFRS 9 and IFRS 7)
1 January 2026*
Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7
1 January 2026*
Annual Improvements Volume 11
1 January 2026*
IFRS 18 Presentation and Disclosure in Financial Statements
1 January 2027*
IFRS 19 Subsidiaries without Public Accountability: Disclosures
1 January 2027*
*Not EU endorsed
Basis of consolidation
The Group consolidated financial
statements incorporate the financial
statements of the Company and its
subsidiary undertakings.
Subsidiaries
Subsidiaries are entities controlled by
the Group. The Group controls an entity
when it is exposed to, or has the rights
to, variable returns from its involvement
with the entity and has the ability to
affect those returns through its power
over the entity.
Subsidiaries are included in the Group
financial statements from the date on
which control over the entity is obtained
and cease to be consolidated from the
date on which control is transferred out
of the Group.
Transactions eliminated
on consolidation
Intragroup transactions and balances,
and any unrealised gains arising from
such transactions, are eliminated in
preparing the consolidated financial
statements. Unrealised losses are
eliminated in the same manner as
unrealised gains, but only to the extent
that there is no evidence of impairment.
Segment reporting
The Group’s accounting policy for
identifying segments is based on internal
management reporting information
that is routinely reviewed by the Chief
Executive Officer and Chief Financial
Officer, who perform the function of
Chief Operating Decision Maker (CODM)
for the Group.
The measurement policies used for
the segment reporting under IFRS 8
Operating Segments are the same as
those used in the consolidated financial
statements. Segment results that are
reported to the CODM include items
directly attributable to a segment as
well as those that can be allocated on
a reasonable basis. Unallocated items
comprise mainly corporate assets,
finance income and expenses and tax
assets and liabilities.
The Group has determined that it has
five (2023: five) operating segments:
Insulated Panels, Insulation, Light, Air
+ Water, Data Solutions, and Roofing +
Waterproofing.
Revenue recognition
The Group recognises revenue exclusive
of sales tax and trade discounts which
would occur over time or at a point in
time. The Group uses the five-step model
as prescribed under IFRS 15 Revenue from
Contracts with Customers on the Group’s
revenue transactions. This includes
the identification of the contract,
identification of the performance
obligations under same, determination
of the transaction price, allocation of
the transaction price to performance
obligations and recognition of revenue.
Typically, individual performance
obligations are specifically called out in
the contract which allows for accurate
recognition of revenue as and when
performances are fulfilled.
The Group has generally concluded
that it is the principal in its revenue
arrangements, because it typically
controls the goods or services before
transferring them to the customers.
The Group has identified a number
of revenue streams where revenue is
recognised at a point in time and/or over
time. These are detailed overleaf:
1
Statement of Accounting Policies (continued)
Supply only contracts
The point of recognition arises when the
Group satisfies a performance obligation
by transferring control of a promised
good or service to the customer, which
could occur over time or at a point in
time. Revenue is recognised at the time
of delivery at the delivery address (where
Kingspan is to deliver the goods to the
delivery address) or at Kingspan’s works
(where the customer is to collect the
goods) or, if the customer wrongfully fails
to take delivery of the goods, the time
when Kingspan has tendered delivery
of the goods. Invoicing occurs at the
point of final delivery of the product or
performance obligation, at which point
a right is established for unconditional
consideration as control passes to the
customer. Typically, payment terms are
30 days from the end of the month in
which the invoice is raised.
Supply and install projects
If a contract requires the Group to install
or commission a product and the product
can be separated or sold separately from
the installation service and the contract
specifically separates the performance
obligations then the product only supply
element is recognised in line with the
criteria set out in the supply only policy.
The installation element is recognised
over time in line with the milestones set
out in the contract. If there is significant
integration provided for in the contract
then a single purchase order is identified
and the revenue is recognised over time.
Service and maintenance
Where the Group provides a post-sale
service and maintenance offering the
revenue associated with this separately
identifiable performance obligation is
initially recognised in deferred income.
The revenue is recognised in the
Consolidated Income Statement as each
site visit occurs.
Research and Development
Expenditure on research and
development is recognised as an expense
in the period in which it is incurred. An
asset is recognised only when all the
conditions set out in IAS 38 Intangible
Assets are met.
Business Combinations
Business combinations are accounted for
using the acquisition method as at the
date of acquisition.
In accordance with IFRS 3 Business
Combinations, the fair value of
consideration paid for a business
combination is measured as the
aggregate of the fair values at the date
of exchange of assets given and liabilities
incurred or assumed in exchange for
control. The assets, liabilities and
contingent liabilities of the acquired
entity are measured at fair value as at
the acquisition date. When the initial
accounting for a business combination is
determined, it is done so on a provisional
basis with any adjustments to these
provisional values made within 12 months
of the acquisition date and are effective
as at the acquisition date.
To the extent that deferred contingent
consideration is payable as part of the
acquisition cost and is payable after
one year from the acquisition date, the
deferred contingent consideration is
discounted at an appropriate interest
rate and, accordingly, carried at net
present value (amortised cost) in the
Consolidated Statement of Financial
Position. The discount component is then
unwound as an interest charge in the
Consolidated Income Statement over the
life of the obligation.
Where a business combination
agreement provides for an adjustment
to the cost of a business acquired
contingent on future events, other than
put options held by non-controlling
interests, the Group accrues the fair
value of the additional consideration
payable as a liability at acquisition
date. This amount is reassessed at
each subsequent reporting date with
any adjustments recognised in the
Consolidated Income Statement.
If the business combination is
achieved in stages, the fair value of
the acquirer’s previously held equity
interest in the acquiree is re-measured
at the acquisition date through the
Consolidated Income Statement
or the Consolidated Statement of
Comprehensive Income.
For each business combination, the
Group elects whether to measure the
non-controlling interests in the acquiree
at fair value or at the proportionate share
of the acquiree’s identifiable net assets.
Transaction costs are expensed to
the Consolidated Income Statement
as incurred.
Put options held by non-controlling
interest shares
Any contingent consideration is
measured at fair value at the date of
acquisition. Where a put option is held
by a non-controlling interest (NCI) in a
subsidiary undertaking, whereby that
party can require the Group to acquire
the NCI’s shareholding in the subsidiary at
a future date, but the NCI retains present
access to the results of the subsidiary, the
Group applies the present access method
of accounting to this arrangement.
The Group recognises a contingent
consideration liability at fair value, being
the Group’s estimate of the amount
required to settle that liability and a
corresponding reserve in equity. Any
subsequent remeasurements required
due to changes in fair value of the put
liability estimation are recognised in the
Put Option Liability Reserve in equity.
Goodwill
Goodwill arises on business combinations
and represents the difference between
the fair value of the consideration and
the fair value of the Group’s share of the
identifiable net assets of a subsidiary at
the date of acquisition.
The Group measures goodwill at the
acquisition date as:
• the fair value of the consideration
transferred; plus
• the recognised amount of any non-
controlling interest in the acquiree;
plus
• if the business combination is
achieved in stages, the fair value of
the pre-existing equity interest in the
acquiree; less
• the net recognised amount (generally
fair value) of the identifiable assets
acquired and liabilities assumed.
274
Kingspan Group plc
Annual Report & Financial Statements 2024
275
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
1
Statement of Accounting Policies (continued)
Following initial recognition, goodwill is
measured at cost less any accumulated
impairment losses.
As at the acquisition date, any goodwill
acquired is allocated to each of the cash
generating units expected to benefit
from the combination’s synergies. The
cash generating units represent the
lowest level within the Group which
generate largely independent cash
inflows and these units are not larger
than the operating segments (before
aggregation) determined in accordance
with IFRS 8 Operating Segments.
Goodwill is tested for impairment at the
same level as the goodwill is monitored
by management for internal reporting
purposes, which is at the individual cash
generating unit level.
Goodwill is subject to impairment
testing on an annual basis and at any
time during the year if an indicator
of impairment is considered to exist.
The goodwill impairment tests are
undertaken at a consistent time each
year. Impairment is determined by
assessing the recoverable amount of
the cash generating unit to which the
goodwill relates. Where the recoverable
amount of the cash generating unit
is less than the carrying amount, an
impairment loss is recognised in the
Consolidated Income Statement.
Impairment losses arising in
respect of goodwill are not reversed
following recognition.
On disposal of a subsidiary, the
attributable amount of goodwill, not
previously written off, is included in
the calculation of the profit or loss
on disposal.
Intangible Assets (other than
goodwill)
Intangible assets separately acquired
are capitalised at cost. Intangible
assets acquired as part of a business
combination are capitalised at fair
value as at the date of acquisition.
Following initial recognition, intangible
assets, which have finite useful lives,
are carried at cost or initial fair value
less accumulated amortisation and
accumulated impairment losses.
The amortisation of intangible assets is
calculated to write off the book value of
intangible assets over their useful lives on
a straight-line basis on the assumption of
zero residual value. Amortisation charged
on these assets is recognised in the
Consolidated Income Statement.
The carrying amount of intangible assets
is reviewed for indicators of impairment
at each reporting date and is subject
to impairment testing when events
or changes of circumstances indicate
that the carrying values may not
be recoverable.
The estimated useful lives are as follows:
Customer relationships
2 - 10 years
Trademarks & Brands
2 - 12 years
Patents
8 years
Technological know how
and order backlogs
1 - 10 years
Amortisation methods, useful lives
and residual values are reviewed at
each reporting date and adjusted
as necessary.
Foreign currency
Functional and presentation currency
The individual financial statements of
each Group company are measured
and presented in the currency of the
primary economic environment in which
the company operates, the functional
currency. The Group financial statements
are presented in Euro, which is the
Company’s functional currency.
Transactions and balances
Transactions in foreign currencies are
translated into the functional currency
at the exchange rates at the date of
the transaction. Monetary assets
and liabilities denominated in foreign
currencies are translated to the
functional currency at the exchange
rates at the reporting date. All currency
translation differences on monetary
assets and liabilities are taken to the
Consolidated Income Statement, except
when deferred in equity as qualifying net
investment hedges, which are recognised
in the Consolidated Statement of
Comprehensive Income.
Goodwill and fair value adjustments
arising on the acquisition of a foreign
entity are initially translated at the
exchange rate at the date of acquisition
and then subsequently these assets
and liabilities are treated as part of a
foreign entity and are translated at the
closing rate.
1
Statement of Accounting Policies (continued)
Exchange rates of material currencies used were as follows:
Average rate
Closing rate
Euro =
2024
2023
2024
2023
Pound Sterling
0.847
0.870
0.830
0.869
US Dollar
1.082
1.082
1.041
1.106
Canadian Dollar
1.482
1.459
1.496
1.464
Australian Dollar
1.640
1.629
1.675
1.622
Czech Koruna
25.118
24.000
25.150
24.701
Polish Zloty
4.305
4.541
4.274
4.344
Hungarian Forint
395.350
381.550
410.770
382.520
Brazilian Real
5.835
5.401
6.424
5.374
Foreign operations
The Income Statement, Statement
of Financial Position and Cash Flow
Statement of Group companies that
have a functional currency different
from that of the Company are translated
as follows:
• Assets and liabilities at each reporting
date are translated at the closing rate
at that reporting date.
• Results and cash flows are translated
at actual exchange rates for the year,
or an average rate where this is a
reasonable approximation.
All resulting exchange differences
are recognised in the Consolidated
Statement of Comprehensive Income and
accumulated as a separate component
of equity, the Translation Reserve.
On disposal of a foreign operation,
any such cumulative retranslation
differences, previously recognised
in equity, are reclassified to the
Consolidated Income Statement as part
of gain or loss on disposal.
Inventories
Inventories are stated at the lower of cost
and net realisable value.
Cost is based on the first-in, first-out
principle and includes all expenditure
incurred in acquiring the inventories and
bringing them to their present location
and condition.
Raw materials are valued at the purchase
price including transport, handling costs
and net of trade discounts.
Work in progress and finished goods
are carried at cost consisting of direct
materials, direct labour and directly
attributable production overheads and
other costs incurred in bringing them to
their existing location and condition.
Net realisable value represents the
estimated selling price less costs to
completion and appropriate marketing,
selling and distribution costs.
A provision is made, where necessary,
in all inventory categories for obsolete,
slow-moving and defective items.
Income tax
Income tax in the Consolidated Income
Statement represents the sum of
current income tax and deferred tax
not recognised in other comprehensive
income or directly in equity.
Current tax
Current tax represents the expected tax
payable or recoverable on the taxable
profit for the year using tax rates
and laws that have been enacted, or
substantively enacted, at the reporting
date and taking into account any
adjustments from prior years. Liabilities
for uncertain tax treatments are
recognised in accordance with IFRIC 23
Uncertainty Over Income Tax Treatments
and are measured using either the most
likely amount method or the expected
value method – whichever better predicts
the resolution of the uncertainty.
Deferred Tax
Deferred tax is provided using the liability
method on temporary differences at the
reporting date. Temporary differences
are defined as the difference between
the tax bases of assets and liabilities
and their carrying amounts in the
consolidated financial statements.
Deferred tax assets and liabilities are not
subject to discounting and are measured
at the tax rates that are expected to
apply in the period in which the asset is
realised or the liability is settled based
on tax rates and tax laws that have been
enacted or substantively enacted at the
reporting date.
The Group offsets deferred tax assets
and deferred tax liabilities only if it has a
legally enforceable right to set off current
tax assets and current tax liabilities and
the deferred tax assets and deferred tax
liabilities relate to income taxes levied
by the same taxation authority on either
the same taxable entity or different
taxable entities which intend either to
settle current tax liabilities and assets
on a net basis, or to realise the assets
and settle the liabilities simultaneously,
in each future period in which significant
amounts of deferred tax liabilities
or assets are expected to be settled
or recovered.
Deferred tax liabilities are recognised for
all taxable temporary differences (i.e.
differences that will result in taxable
amounts in future periods when the
carrying amount of the asset or liability is
recovered or settled).
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277
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
1
Statement of Accounting Policies (continued)
Deferred tax assets are recognised in
respect of all deductible temporary
differences (i.e. differences that give
rise to amounts which are deductible
in determining taxable profits in future
periods when the carrying amount of the
asset or liability is recovered or settled),
carry-forward of unused tax credits and
unused tax losses to the extent that
it is probable that taxable profits will
be available against which to offset
these items.
The carrying amounts of deferred tax
assets are subject to review at each
reporting date and reduced to the extent
that future taxable profits are considered
to be inadequate to allow all or part of
any deferred tax asset to be utilised.
Changes in deferred tax assets or
liabilities are recognised as a component
of tax income or expense in profit or loss,
except where they relate to items that
are recognised in other comprehensive
income or directly in equity, in which case
the related deferred tax is also recognised
in other comprehensive income or equity,
respectively.
The Group has applied the amendment
to IAS 12 Income Taxes on the mandatory
temporary exception to recognising and
disclosing information about deferred tax
assets and liabilities that are related to
tax law enacted or substantively enacted
to implement the Pillar Two model
rules published by the Organisation
for Economic Co-operation and
Development (OECD).
Investments in subsidiaries
Investments in subsidiaries are stated at
cost less any accumulated impairments
and are reviewed for impairment if there
are indications that the carrying value
may not be recoverable.
Investments in associates
An associate is an entity over which the
Group has significant influence and that
is neither a subsidiary nor an interest in a
joint venture. Significant influence is the
power to participate in the financial and
operating policy decisions of the investee
but is not control or joint control over
those policies.
The consolidated income statement
incorporates the results of the associate
using the equity method of accounting.
Under the equity method, an investment
in an associate is recognised initially in
the consolidated statement of financial
position at cost and adjusted thereafter
to recognise the Group’s share of the
profit or loss. If the Group’s share of
losses of an associate exceeds the
Group’s interest in that associate, the
Group discontinues recognising its share
of further losses. Additional losses are
recognised only to the extent that the
Group has incurred legal or constructive
obligations or made payments on behalf
of the associate.
The Group applies the equity method
from the date in which significant
influence is obtained and discontinues
the use of the equity method from the
date when the investment ceases to be
an associate.
Property, Plant and Equipment
Property, plant and equipment is
measured at cost less accumulated
depreciation and accumulated
impairment losses.
Depreciation is provided on a straight line
basis at the rates stated below, which
are estimated to reduce each item of
property, plant and equipment to its
residual value by the end of its useful life:
Freehold buildings
2% to 2.5%
on cost
Plant and machinery 4% to 20%
on cost
Fixtures and fittings
10% to 20%
on cost
Computer
equipment
12.5% to 33%
on cost
Motor vehicles
10% to 25%
on cost
Freehold land is stated at cost and is
not depreciated.
The estimated useful lives and residual
values of property, plant and equipment
are determined by management at
the time the assets are acquired and
subsequently reassessed at each
reporting date. These lives are based on
historical experience with similar assets
across the Group.
In accordance with IAS 36 Impairment of
Assets, the carrying values of property,
plant and equipment are reviewed
at each reporting date to determine
whether there is any indication of
impairment. An impairment loss is
recognised whenever the carrying value
of an asset or its cash generating unit
exceeds its recoverable amount.
Impairment losses are recognised in
the Consolidated Income Statement.
Following the recognition of an
impairment loss, the depreciation
charge applicable to the asset or cash-
generating unit is adjusted to allocate
the revised carrying amount, net of
any residual value, over the remaining
useful life.
Assets under construction are carried at
cost less any recognised impairment loss.
Depreciation of these assets commences
when the assets are ready for their
intended use.
Leases
The Group recognises right of use
assets representing its right to use the
underlying assets and lease liabilities
representing its obligation to make lease
payments at the lease commencement
date. The right of use assets are initially
measured at cost, and subsequently
measured at cost less accumulated
depreciation and impairment losses. The
cost of the right of use asset consists
of the initial measurement of the lease
liability, any initial direct costs incurred in
entering into the lease, restoration costs
and any payments made on or before
the lease commencement date, net of
any lease incentives received.
1
Statement of Accounting Policies (continued)
Depreciation is provided on a straight
line basis over the period of the lease, or
useful life if shorter.
Lease liabilities are measured at the
present value of the future lease
payments, discounted at the Group’s
incremental borrowing rate. Subsequent
to the initial measurement, the
lease liabilities are increased by the
interest cost and reduced by lease
payments made.
The right of use assets and lease
liabilities are remeasured when there are
changes in the assessment of whether
an extension option is reasonably
certain to be exercised or a termination
option is reasonably certain not to be
exercised or where there is a change in
future lease payments as a result of a
change in an index or rate. The Group
applies judgement when determining
the lease term where renewal and
termination options are contained in the
lease contract.
The Group applies the short-term lease
recognition exemption to leases that
have a lease term of 12 months or less
from the commencement date. The
Group also applies the lease of low-value
assets recognition exemption to leases
of equipment that are considered to be
low value. Lease payments on short-term
leases and leases of low-value assets are
recognised as an expense on a straight-
line basis over the term of the lease.
Retirement benefit obligations
The Group operates defined contribution
and defined benefit pensions schemes.
Defined contribution pension schemes
The costs arising on the Group’s defined
contribution schemes are recognised in
the Consolidated Income Statement in
the period in which the related service
is provided. The Group has no legal or
constructive obligation to pay further
contributions in the event that these
plans do not hold sufficient assets to
provide retirement benefits.
Defined benefit pension schemes
The Group’s net obligation in respect
of defined benefit plans is calculated
separately for each plan by estimating
the amount of future benefit that
employees have earned in return for their
service in the current and prior periods,
discounting that amount and deducting
the fair value of any plan assets.
The calculation is performed annually by
a qualified actuary using the projected
unit credit method. When the calculation
results in a benefit to the Group, the
recognised asset is limited to the total of
any unrecognised past service costs and
the present value of economic benefits
available in the form of any future
refunds from the plan or reductions in
future contributions to the plan.
Remeasurements of the net defined
benefit liability or asset, which comprise
actuarial gains and losses, the return
on plan assets (excluding interest)
and the effect of the asset ceiling,
are recognised immediately in other
comprehensive income.
The Group determines the net interest
expense on the net defined benefit
liability or asset by applying the discount
rate used to measure the defined benefit
obligation at the beginning of the annual
period to the then net defined benefit
liability or asset, taking into account
any changes in the net defined benefit
liability or asset during the period as
a result of contributions and benefit
payments. Net interest expense and
other expenses related to defined benefit
plans are recognised in profit or loss.
When the benefits of a plan are changed
or when a plan is curtailed, the resulting
change in benefit that relates to past
service or the gain or loss on curtailment
is recognised immediately in profit or
loss. The Group recognises gains and
losses on the settlement of a defined
benefit plan when the settlement occurs.
Provisions
A provision is recognised in the
Consolidated Statement of Financial
Position when the Group has a present
constructive or legal obligation as a
result of a past event and it is probable
that an outflow of economic benefit will
be required to settle the obligation and
the amount of the obligation can be
estimated reliably.
A specific provision is created when a
claim has actually been made against
the Group or where there is a known
issue at a known customer’s site, both
relating to a product or service supplied
in the past. In addition, a risk-based
provision is created where future claims
are considered incurred but not reported.
The warranty provision is based on
historical warranty data and a weighting
of all possible outcomes against their
associated probabilities.
Specific provisions will generally be
aged as a current liability, reflecting the
assessment that a current liability exists
to replace or repair product sold on foot
of an accepted valid warranty issue.
Only where the liability is reasonably
certain not to be settled within the next
12 months, will a specific provision be
categorised as a long-term obligation.
Risk-based provisions will generally be
aged as a non-current liability, reflecting
the fact that no warranty claim has yet
been made by the customer.
Provisions which are not expected to
give rise to a cash outflow within 12
months of the reporting date are, where
material, determined by discounting
the expected future cash flows. The
unwinding of the discount is recognised
as a finance expense.
Dividends
Final dividends on ordinary shares are
recognised as a liability in the financial
statements only after they have been
approved at the Annual General Meeting
of the Company. Interim dividends on
ordinary shares are recognised when they
are paid.
278
Kingspan Group plc
Annual Report & Financial Statements 2024
279
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
1
Statement of Accounting Policies (continued)
Cash and cash equivalents
Cash and cash equivalents principally
comprise cash at bank and in hand and
short-term deposits with an original
maturity of three months or less.
Derivative financial instruments
Derivative financial instruments,
principally interest rate and currency
swaps, are used to hedge the Group’s
foreign exchange and interest rate
risk exposures.
Derivative financial instruments are
recognised initially at fair value and
thereafter are subsequently remeasured
at their fair value. Fair value is the price
that would be received to sell an asset
or paid to transfer a liability in an orderly
transaction between market participants
at the measurement date. The fair value
of these instruments is the estimated
amount that the Group would receive
or pay to terminate the swap at the
reporting date, taking into account
current interest and currency exchange
rates and the current creditworthiness of
the swap counterparties.
The Group designates all of its derivatives
in one or more of the following types
of relationships:
i.
Fair value hedge: Hedges the
exposure to movements in fair value
of recognised assets or liabilities that
are attributable to hedged risks.
ii.
Cash flow hedge: Hedges the
Group’s exposures to fluctuations
in future cash flow derived from
a particular risk associated with
recognised assets or liabilities or
forecast transactions.
iii.
Net investment hedge: Hedges the
exchange rate fluctuations of a net
investment in a foreign operation.
At inception of the transaction, the
Group documents the relationship
between the hedging instruments
and hedged items, including the risk
management objectives and strategy in
undertaking the hedge transactions. The
Group also documents its assessment,
both at inception and on an ongoing
basis, as to whether the derivatives that
are used in hedging transactions are
highly effective in offsetting changes in
fair values or cash flows of hedged items.
Fair value hedge
Any gain or loss resulting from the
re-measurement of the hedging
instrument to fair value is reported in
the Consolidated Income Statement,
together with any changes in the fair
value of the hedged asset or liability that
are attributable to the hedged risk. The
gains or losses of a hedging instrument
that are in hedge relationships with
borrowings are included within Finance
Income or Finance Expense in the
Consolidated Income Statement. In the
case of the related hedged borrowings,
any gain or loss on the hedged item
which is attributable to the hedged
risk is adjusted against the carrying
amount of the hedged item and is
also included within Finance Income or
Finance Expense in the Consolidated
Income Statement.
If the hedge no longer meets the criteria
for hedge accounting, the adjustment to
the carrying amount of the hedged item
is amortised on an effective interest basis
to the Consolidated Income Statement
with the objective of achieving full
amortisation by maturity of the
hedged item.
Cash flow hedge
The effective part of any gain or loss
on the derivative financial instrument
is recognised in other comprehensive
income and presented in the Cash
Flow Hedge Reserve in equity with the
ineffective portion being recognised
within Finance Income or Finance
Expense in the Consolidated Income
Statement. If a hedge of a forecasted
transaction subsequently results in the
recognition of a financial asset or a
financial liability, the associated gains
and losses that were recognised directly
in other comprehensive income are
reclassified into profit or loss in the same
period or periods during which the asset
acquired or liability assumed affects
profit or loss. For cash flow hedges, other
than those covered by the preceding
statements, the associated cumulative
gain or loss is removed from other
comprehensive income and recognised
in the Consolidated Income Statement in
the same period or periods during which
the hedged forecast transaction affects
profit or loss. The ineffective part of any
gain or loss is recognised immediately in
the Consolidated Income Statement.
Hedge accounting is discontinued when
a hedging instrument expires or is sold,
terminated or exercised, or no longer
qualifies for hedge accounting. The
cumulative gain or loss at that point
remains in other comprehensive income
and is recognised when the transaction
occurs. If a hedged transaction is no
longer expected to occur, the net
cumulative gain or loss recognised
in other comprehensive income is
transferred to the Consolidated Income
Statement in the period.
1
Statement of Accounting Policies (continued)
Net investment hedge
Any gain or loss on the hedging
instrument relating to the effective
portion of the hedge is recognised
in other comprehensive income and
presented in the Translation Reserve
in equity. The gain or loss relating to
the ineffective portion is recognised
immediately in either Finance Income
or Finance Expense in the Consolidated
Income Statement. Cumulative gains
or losses remain in equity until disposal
of the net investment in the foreign
operation at which point the related
differences are reclassified to the
Consolidated Income Statement as part
of the overall gain or loss on sale.
Financial Assets
On initial recognition, a financial asset is
classified as measured at amortised cost
and subsequently measured using the
effective interest rate (EIR) method and
subject to impairment. Financial assets
may also be initially measured at fair
value with any movement being reflected
through other comprehensive income or
the Consolidated Income Statement.
On initial recognition of an equity
investment that is not held for trading,
the Group may irrevocably elect
to present subsequent changes in
the investment’s fair value in other
comprehensive income. This election
is made on an investment-by-
investment basis.
The Group applies the simplified
approach for expected credit losses
(ECL) under IFRS 9 Financial Instruments,
which requires expected lifetime
losses to be recognised from initial
recognition of receivables. Under IFRS 9
Financial Instruments, the Group uses
an allowance matrix to measure ECL
of trade receivables from customers.
Loss rates are calculated using a “roll
rate” method based on the probability
of a receivable progressing through
successive chains of non-payment to
write-off. The rates are calculated at a
business unit level which reflects the risks
associated with geographic region, age,
mix of customer relationship and type of
product purchased.
Financial Liabilities
Financial liabilities held for trading are
measured at fair value through the profit
and loss, and all other financial liabilities
are measured at amortised cost unless
the fair value option is applied.
Finance Income
Finance income primarily comprises
interest income on funds invested and
any gains on hedging instruments that
are recognised in the Consolidated
Income Statement. Interest income
is recognised as it accrues using the
effective interest rate method.
Finance Expense
Finance expense comprises interest
charged on cash balances held in
certain currencies, interest payable on
borrowings calculated using the effective
interest rate method, fair value gains and
losses on hedging instruments that are
recognised in the Consolidated Income
Statement, the net finance cost of the
Group’s defined benefit pension scheme,
lease interest, the discount component
of the deferred contingent consideration
which is unwound as an interest charge
in the Consolidated Income Statement
over the life of the obligation and fair
value movements associated with
deferred contingent consideration.
Share-Based Payment Transactions
The Group grants equity settled share-
based payments to employees through
the Performance Share Plan and the
Deferred Bonus Plan.
The fair value of these equity settled
transactions is determined at grant
date and is recognised as an employee
expense in the Consolidated Income
Statement, with the corresponding
increase in equity, on a straight line
basis over the vesting period. The fair
value at the grant date is determined
using a combination of the Monte Carlo
simulation technique and the Black
Scholes model, excluding the impact
of any non-market conditions. Non-
market vesting conditions are included
in the assumptions about the number
of options that are expected to vest. At
each reporting date, the Group revises
its estimates of the number of options
that are likely to vest as a result of
non-market conditions. Any adjustment
from this revision is recognised in the
Consolidated Income Statement with a
corresponding adjustment to equity.
Where the share-based payments give
rise to the issue of new share capital,
the proceeds received by the Company
are credited to share capital (nominal
value) and share premium (where
applicable) when the share entitlements
are exercised. Where the share-based
payments give rise to the re-issue of
shares from treasury shares, the proceeds
of issue are credited to share premium.
The Group does not operate any cash-
settled share-based payment schemes
or share-based payment transactions
with cash alternatives as defined in IFRS
2 Share-based Payments.
Treasury Shares
Where the Company purchases
its own equity share capital, the
consideration paid is deducted from
total shareholders’ equity and classified
as treasury shares until such shares
are cancelled or reissued. Where
such shares are subsequently sold or
reissued, any consideration received is
included in share premium account. No
gains or losses are recognised on the
purchase, sale, cancellation or issue of
treasury shares.
Non-controlling interest
Non-controlling interests represent the
portion of the equity of a subsidiary not
attributable either directly or indirectly to
the parent company and are presented
separately in the Consolidated Income
Statement and within equity in the
Consolidated Statement of Financial
Position, distinguished from shareholders’
equity attributable to owners of the
parent company.
280
Kingspan Group plc
Annual Report & Financial Statements 2024
281
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
1
Statement of Accounting Policies (continued)
Accounting Estimates and
Judgements
In the process of applying the Group’s
accounting policies, as set out on pages
273 to 283, management are required
to make estimates and judgements
that could materially affect the Group’s
reported results or net asset position.
The preparation of the Group’s
consolidated financial statements
requires management to make
judgements, estimates and assumptions
that affect the reported amounts of
revenues, expenses, assets and liabilities,
and the accompanying disclosures, and
the disclosure of contingent liabilities.
Uncertainty about these assumptions
and estimates could result in outcomes
that require a material adjustment to the
carrying amount of assets or liabilities in
future periods. The Group has considered
the impact of climate change on the
consolidated financial statements,
including the carrying value of assets,
the useful economic life of assets,
and provisions.
The areas where key estimates and
judgements were made by management
and are material to the Group’s reported
results or net asset position, are
as follows:
Impairment (Note 9)
The Group is required to review assets for
objective evidence of impairment.
It does this on the basis of a review of
the budget and rolling 5 year forecasts
(4 year strategic plan, as approved by
the Board, plus year 5 forecasted by
management), which by their nature are
based on a series of assumptions and
estimates. The forecasts used for the
Roofing + Waterproofing CGU are based
on a 4 year financial plan approved by
the Board of Directors, plus years 5-10 as
forecasted by management.
The Group has performed impairment
tests on those cash generating units
which contain goodwill, and on any
assets where there are indicators of
impairment. The key assumptions
associated with these reviews are
detailed in Note 9. The Group also
considered the potential impact of
climate change. This is an area of
estimation and judgement.
Guarantees & warranties (Note 21)
Certain products carry formal
guarantees of satisfactory functional
and aesthetic performance of varying
periods following their purchase. Local
management evaluate the constructive
or legal obligation arising from customer
feedback and assess the requirement
to provide for any probable outflow
of economic benefit arising from a
settlement. This is an area of estimation
and judgement.
Recoverability of trade receivables
(Note 15)
The Group provides credit to customers
and as a result there is an associated risk
that the customer may not be able to
pay outstanding balances.
Under IFRS 9 the Group uses an
allowance matrix to measure ECL of
trade receivables from customers.
Loss rates are calculated using a “roll
rate” method based on the probability
of a receivable progressing through
successive chains of non-payment to
write-off. The rates are calculated at a
business unit level which reflects the risks
associated with geographic region, age,
mix of customer relationship and type
of product purchased. This is an area of
estimation and judgement.
Valuation of inventory (Note 14)
Inventories are measured at the lower of
cost and net realisable value. The Group’s
policy is to hold inventories at original
cost and create an inventory provision
where evidence exists that indicates
net realisable value is below cost for a
particular item of inventory. Damaged,
slow-moving or obsolete inventory are
typical examples of such evidence. This is
an area of estimation and judgement.
Leases (Note 17)
The Group has applied judgement to
determine the lease term of contracts
that include termination and extension
options. If the Group is reasonably
certain to exercise such options, the
relevant amount of right of use assets
and lease liabilities are recognised.
The Group has also applied judgement in
determining the incremental borrowing
rates (IBR). The incremental borrowing
rate is the rate of interest that a lessee
would expect to incur on funds borrowed
over a similar term and security to
obtain a comparable value to the right
of use asset in the relevant economic
environment. The Group estimates the
IBR using observable inputs (such as
market interest rates) when available
and makes certain entity-specific
estimates (such as country risk and
entity specific credit rating) as required.
Business Combinations (Note 23)
Business combinations are accounted
for using the acquisition method
which requires that the assets and
liabilities assumed are recorded at
their respective fair values at the date
of acquisition. The application of this
method requires certain estimates and
assumptions relating, in particular, to the
determination of the fair values of the
acquired assets and liabilities assumed at
the date of acquisition.
For intangible assets acquired, the Group
bases valuations on expected future cash
flows. This method employs a discounted
cash flow analysis using the present value
of the estimated cash flows expected
to be generated from these intangible
assets using appropriate discount rates
and revenue forecasts. The period of
expected cash flows is based on the
expected useful life of the intangible
asset acquired.
1
Statement of Accounting Policies (continued)
Measurement of deferred contingent
consideration and put option liabilities
related to business combinations require
assumptions to be made regarding
profit forecasts and discount rates used
to arrive at the net present value of the
potential obligations. The Group has
considered all available information
in arriving at the estimate of liabilities
associated with deferred contingent
consideration obligations. This is an area
of estimation and judgement.
Income taxes (Note 7)
The Group is subject to income tax
in numerous jurisdictions. Significant
judgement is required in determining
the worldwide provision for income
taxes. There are many transactions for
which the ultimate tax determination
is uncertain. The Group recognises
liabilities based on estimates of whether
additional taxes will be due. Once it has
been concluded that a liability needs to
be recognised, the liability is measured
based on the tax laws that have been
enacted or substantially enacted at the
end of the reporting period. The amount
shown for current taxation includes an
estimate for uncertain tax treatments
where the Group considers it probable
that uncertain tax treatments will not
be accepted by tax authorities and
the estimate is measured using either
the most likely amount method or the
expected value method, as appropriate,
prescribed by IFRIC 23. Where the
final tax outcome of these matters is
different from the amounts that were
initially estimated, such differences will
impact the income tax and deferred tax
provisions in the period in which such
determination is made.
Deferred tax assets are recognised
to the extent that it is probable that
future taxable profit will be available
against which the unused tax losses
and unused tax credits can be utilised.
The Group estimates the most probable
amount of future taxable profits, using
assumptions consistent with those
employed in impairment calculations,
and taking into consideration applicable
tax legislation in the relevant jurisdiction.
These calculations also require the use of
estimates and judgement.
Deferred Contingent Consideration
(Note 19)
Measurement of put option liabilities and
deferred contingent consideration require
assumptions to be made regarding
profit forecasts and discount rates used
to arrive at the net present value of the
potential obligations. The Group has
considered all available information
in arriving at the estimate of liabilities
associated with put option obligations
and deferred contingent consideration.
This is an area of estimation.
2
Segment Reporting
In identifying the Group’s operating segments, management based its decision on the product supplied by each segment and the
fact that each segment is managed and reported separately to the Chief Operating Decision Maker. These operating segments
are monitored and strategic decisions are made on the basis of segment operating results.
Operating segments
The Group has the following five operating segments:
Insulated Panels
Manufacture of insulated panels, structural framing and metal facades.
Insulation
Manufacture of a broad range of insulation solutions (rigid boards,
stonewool, bio-based and technical insulation) and engineered
timber systems.
Data Solutions
Manufacture of data centre airflow management/cooling solutions and
raised access floors.
Light, Air + Water
Manufacture of energy and water solutions, daylighting, smoke
management and ventilation systems and related service activities.
Roofing + Waterproofing
Manufacture of roofing and waterproofing solutions for renovation and
new construction of buildings.
282
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Annual Report & Financial Statements 2024
283
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
2
Segment Reporting (continued)
Analysis by class of business
Insulated
Panels
€m
Insulation
€m
Data
Solutions
€m
Light, Air +
Water
€m
Roofing +
Waterproofing
€m
Total
€m
Total revenue – 2024
4,737.5
1,824.7
516.2
961.1
568.5
8,608.0
Total revenue – 2023
4,722.1
1,528.0
379.7
967.4
493.4
8,090.6
Disaggregation of revenue 2024
Point of Time
4,730.7
1,801.6
447.4
640.5
542.8
8,163.0
Over Time & Contract
6.8
23.1
68.8
320.6
25.7
445.0
4,737.5
1,824.7
516.2
961.1
568.5
8,608.0
Disaggregation of revenue 2023
Point of Time
4,719.8
1,502.9
333.3
671.8
493.4
7,721.2
Over Time & Contract
2.3
25.1
46.4
295.6
-
369.4
4,722.1
1,528.0
379.7
967.4
493.4
8,090.6
The disaggregation of revenue by geography is set out in more detail on page 286.
The segments specified above capture the major product lines relevant to the Group.
The combination of the disaggregation of revenue by product group, geography and the timing of revenue recognition capture the
key categories of disclosure with respect to revenue. Typically, individual performance obligations are specifically called out in the
contract which allow for accurate recognition of revenue as and when performance obligations are fulfilled. Given the nature of
the Group’s product set, customer returns are not a significant feature of our business model. No further disclosures are required
with respect to disaggregation of revenue other than what has been presented in this note.
Inter-segment transfers are carried out at arm’s length prices and using an appropriate transfer pricing methodology. As inter-
segment revenue is not material, it is not subject to separate disclosure in the above analysis. For the purposes of the segmental
analysis, corporate overheads have been allocated to each division based on their respective revenue for the year.
Insulated
Panels
€m
Insulation
€m
Data
Solutions
€m
Light, Air +
Water
€m
Roofing +
Waterproofing
€m
Total
2024
€m
Total
2023
€m
Trading profit – 2024
545.5
147.8
77.9
79.7
55.8
906.7
Intangible amortisation
(9.4)
(14.8)
(0.3)
(3.1)
(17.0)
(44.6)
Operating profit – 2024
536.1
133.0
77.6
76.6
38.8
862.1
Trading profit – 2023
573.8
145.1
51.2
78.7
28.1
876.9
Intangible amortisation
(10.2)
(10.1)
(0.7)
(3.5)
(17.2)
(41.7)
Operating profit - 2023
563.6
135.0
50.5
75.2
10.9
835.2
Net finance expense
(32.0)
(41.0)
Share of associates’ profit after tax
1.7
-
Profit for the year before tax
831.8
794.2
Income tax expense
(141.0)
(140.3)
Net profit for the year
690.8
653.9
2
Segment Reporting (continued)
Insulated
Panels
€m
Insulation
€m
Data
Solutions
€m
Light, Air +
Water
€m
Roofing +
Waterproofing
€m
Total
2024
€m
Total
2023
€m
Assets – 2024
3,606.8
2,415.7
359.9
934.0
1,408.5
8,724.9
Assets – 2023
3,352.8
1,568.9
291.9
915.3
854.4
6,983.3
Derivative financial instruments
4.7
-
Cash and cash equivalents
1,005.4
938.7
Deferred tax assets
84.5
79.6
Total assets as reported in the
Consolidated Statement of
Financial Position
9,819.5
8,001.6
Insulated
Panels
€m
Insulation
€m
Data
Solutions
€m
Light, Air +
Water
€m
Roofing +
Waterproofing
€m
Total
2024
€m
Total
2023
€m
Liabilities – 2024
(1,176.7)
(572.2)
(180.5)
(313.7)
(259.4)
(2,502.5)
Liabilities – 2023
(1,114.4)
(278.7)
(122.3)
(320.7)
(180.8)
(2,016.9)
Interest bearing loans and borrowings (current and non-current)
(2,583.0) (1,918.2)
Derivative financial instruments (current and non-current)
-
(0.2)
Income tax liabilities (current and deferred)
(143.2)
(118.5)
Total liabilities as reported in the Consolidated Statement of Financial Position
(5,228.7) (4,053.8)
Insulated
Panels
Insulation
Data
Solutions
Light,
Air +
Water
Roofing +
Waterproofing
Total
€m
€m
€m
€m
€m
€m
Capital investment – 2024*
231.9
553.5
34.0
37.6
108.6
965.6
Capital investment – 2023*
173.5
55.4
13.1
20.2
51.5
313.7
Depreciation included in segment result – 2024
(105.3)
(69.5)
(9.3)
(30.4)
(17.4) (231.9)
Depreciation included in segment result – 2023
(95.1)
(45.7)
(7.7)
(27.9)
(14.5)
(190.9)
Non-cash items included in segment result – 2024
(9.7)
(4.7)
(2.1)
(2.7)
(0.7)
(19.9)
Non-cash items included in segment result – 2023
(12.7)
(4.4)
(1.7)
(3.3)
(0.6)
(22.7)
* Capital investment also includes fair value of property, plant and equipment and intangible assets acquired in
business combinations.
284
Kingspan Group plc
Annual Report & Financial Statements 2024
285
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
2
Segment Reporting (continued)
Analysis of segmental data by geography
Western &
Southern
Europe
€m
Central &
Northern
Europe
€m
Americas
€m
Rest of
World
€m
Total
€m
Income Statement Items
Revenue – 2024
3,681.8
2,352.0
1,919.0
655.2
8,608.0
Revenue – 2023
3,650.6
2,021.1
1,877.9
541.0
8,090.6
Statement of Financial Position Items
Non-current assets – 2024 *
2,449.7
2,396.5
964.9
326.5
6,137.6
Non-current assets – 2023 *
2,409.3
1,269.0
805.4
281.1
4,764.8
Other segmental information
Capital investment – 2024
186.1
599.9
140.5
39.1
965.6
Capital investment – 2023
112.7
119.2
47.3
34.5
313.7
* Total non-current assets excluding deferred tax assets.
The Group is trading in over 80 countries worldwide. Foreign regions of operation are as set out above and specific countries of
operation are highlighted separately below on the basis of materiality where revenue exceeds 15% of total Group revenues.
Revenues, non-current assets and capital investment (as defined in IFRS 8 Operating Segments) attributable to France were
€1,324.9m (2023: €1,259.5m), €842.1m (2023: €757.7m) and €93.9m (2023: €20.4m) respectively.
Revenues, non-current assets and capital investment (as defined in IFRS 8 Operating Segments) attributable to the country of
domicile (Ireland) were €236.1m (2023: €234.3m), €119.4m (2023: €230.5m) and €11.3m (2023: €16.1m) respectively.
The country of domicile (Ireland) is included in Western & Southern Europe. Western & Southern Europe also includes France,
Benelux, Spain, and Britain while Central & Northern Europe includes Germany, the Nordics, Poland, Hungary, Romania, Czech
Republic, the Baltics and other South Central European countries. Americas comprises the US, Canada, Central Americas and
South America. Rest of World is predominantly Australasia and the Middle East.
There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8
Operating Segments. The individual entities within the Group each have a large number of customers spread across various
activities, end-uses and geographies.
3
Employees
a) Employee numbers
The average number of persons employed by the Group in the financial year was:
2024
Number
2023
Number
Production
15,599
13,437
Sales and distribution
5,250
5,032
Management and administration
4,552
3,915
25,401
22,384
3
Employees (continued)
b) Employee costs, including executive directors
2024
€m
2023
€m
Wages and salaries
1,290.9
1,126.1
Social welfare costs
173.8
144.2
Pension costs - defined contribution (Note 32)
43.6
37.8
Share-based payments and awards
19.9
22.7
1,528.2
1,330.8
Actuarial (gains)/losses recognised in other comprehensive income
(3.4)
5.0
1,524.8
1,335.8
c) Employee share-based compensation
The Group currently operates two equity settled share-based payment schemes; a Performance Share Plan (PSP) and a Deferred
Bonus Plan. The details of these schemes are provided in the Report of the Remuneration Committee.
Performance Share Plan (PSP)
Number of PSP Options
2024
2023
Outstanding at 1 January
1,635,093
1,714,879
Granted
491,852
505,989
Forfeited
(110,285)
(269,903)
Lapsed
-
-
Exercised
(365,240)
(315,872)
Outstanding at 31 December
1,651,420
1,635,093
Of which, exercisable
419,847
468,760
The Group recognised a PSP expense of €18.4m (2023: €22.7m) in the Consolidated Income Statement during the year. All PSP
options are exercisable at €0.13 per share. For PSP options that were exercised during the year the average share price at the date
of exercise was €82.82 (2023: €66.66). The weighted average contractual life of share options outstanding at 31 December 2024 is
4.4 years (2023: 4.4 years). The weighted average exercise price during the period was €0.13 (2023: €0.13).
The fair values of options granted under the PSP scheme during the current and prior year were determined using the Black
Scholes Model or the Monte Carlo Pricing Model as appropriate. The key assumptions used in the model were as follows:
2024 Awards
2023 Awards
19 February 2024
20 February 2023
Share price at grant date
€83.04
€63.58
Exercise price per share
€0.13
€0.13
Expected volatility
39.9%
43.8%
Expected dividend yield
1.25%
1.25%
Risk-free rate
2.4%
2.6%
Expected life
3 years
3 years
286
Kingspan Group plc
Annual Report & Financial Statements 2024
287
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
3
Employees (continued)
The resulting weighted average fair value of options granted in the year was €59.82 (2023: €47.95).
As set out in the Report of the Remuneration Committee, the number of options that will ultimately vest is contingent on
market conditions such as Total Shareholder Return and non-market conditions such as the Earnings Per Share of the Group and
achievement of its Planet Passionate targets. Market conditions were taken into account in determining the above fair value,
and non-market conditions were considered when estimating the number of shares that will eventually vest. Expected volatility
was determined by calculating the historical volatility of the Group and peer company share prices over the previous 3 years. The
Report of the Remuneration Committee sets out the current companies within the peer group.
Deferred Bonus Plan
As set out in the Report of the Remuneration Committee, the Deferred Bonus Plan (DBP) is intended to reward incremental
performance over and above the growth targeted by the annual performance related bonus. Any DBP bonus earned for such
incremental performance is satisfied by the payment of deferred share awards. These shares are held for the benefit of the
individual participants for two years without any additional performance conditions. These shares vest after two years but are
forfeited if the participant leaves the Group within that period.
During the year, 15,689 (2023: 13,547) awards were granted under the DBP and 21,438 (2023: nil) awards were exercised. 29,236
awards remain outstanding at 31 December 2024 (2023: 34,985). A charge of €1.5m was recognised in the Consolidated Income
Statement for 2024 (2023: €1.6m).
4
Finance Expense And Finance Income
2024
€m
2023
€m
Finance expense
Lease interest
7.2
6.0
Bank loan interest
21.6
24.9
Private placement loan note and bond interest
37.3
31.6
Other interest
1.3
1.2
67.4
63.7
Finance income
Interest earned
(15.6)
(19.2)
Deferred consideration – fair value movement
(16.1)
-
Equity investments at FVOCI – dividend income
(3.7)
(3.5)
(35.4)
(22.7)
Net finance expense
32.0
41.0
€3.6m of borrowing costs were capitalised during the year (2023: €0.8m). No costs were reclassified from other comprehensive
income to profit during the year (2023: €nil).
5
Profit For The Year Before Income Tax
2024
€m
2023
€m
The profit before tax for the year is stated after charging/(crediting):
Distribution expenses
386.6
327.2
Product development costs (total, including payroll)
75.5
63.5
Depreciation
231.9
190.9
Amortisation of intangible assets
44.6
41.7
Impairment of property, plant and equipment
3.9
2.9
Foreign exchange net gains
(11.5)
(1.6)
Profit on sale of property, plant and equipment
(7.9)
(1.3)
5
Profit For The Year Before Income Tax (continued)
Analysis of total auditor’s remuneration
EY Ireland
2024
€m
Other EY
Offices
2024
€m
Total
2024
€m
EY Ireland
2023
€m
Other EY
Offices
2023
€m
Total
2023
€m
Audit of Group and subsidiaries
2.3
3.5
5.8
1.5
3.3
4.8
Other assurance services
0.7
0.1
0.8
-
-
-
Tax compliance and advisory services
0.1
-
0.1
0.3
-
0.3
3.1
3.6
6.7
1.8
3.3
5.1
Included in Audit of Group are total fees of €0.4m which are due to EY in respect of the audit of the Parent Company (2023:
€0.4m).
6
Directors’ Remuneration
2024
€m
2023
€m
Fees
0.8
0.9
Other emoluments
5.8
6.8
Pension costs
0.4
0.4
7.0
8.1
Performance Share Plan accounting charge
3.7
4.1
10.7
12.2
In accordance with the Statement of Accounting Policies (Share-Based Payment Transactions) and Note 3, the Performance
Share Plan accounting charge of €3.7m (2023: €4.1m) is the fair value expense, accounted for in accordance with IFRS 2 Share-
based Payments, of equity settled share-based payments attributable to directors for the period. The fair value of each equity
settled share-based payment is determined at grant date and is recognised as an employee expense in the Consolidated Income
Statement on a straight-line basis over the vesting period.
Pursuant to the Companies Act 2014 and related guidance, the Report of the Remuneration Committee only reports share-based
payments which vested in the period, and they are measured at market value rather than fair value. This explains differences
between the total Directors’ Remuneration expense of €10.7m (2023: €12.2m) in this Note and the total Directors’ Remuneration
expense of €8.1m (2023: €13.0m) in the Report of the Remuneration Committee.
Aggregate gains of €1.9m (2023: €3.8m) were realised with respect to share options exercised by directors during the financial
year. Details of the number of share options exercised by each director, the market value of the shares on the date of exercise, and
the exercise price are included in the Performance Share Plan section of the Report of the Remuneration Committee.
A detailed analysis of Directors’ Remuneration is contained in the Report of the Remuneration Committee.
288
Kingspan Group plc
Annual Report & Financial Statements 2024
289
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
7
Income Tax Expense
2024
€m
2023
€m
Tax recognised in the Consolidated Income Statement
Current taxation:
Current tax expense
147.9
160.2
Adjustment in respect of prior years
(9.8)
(6.9)
138.1
153.3
Deferred taxation:
Origination and reversal of temporary differences
2.5
(12.1)
Effect of rate change
0.4
(0.9)
2.9
(13.0)
Income tax expense
141.0
140.3
The following table is the numerical reconciliation between tax expenses and the product of accounting profit multiplied by the
applicable tax rate:
2024
€m
2023
€m
Profit for the year
831.8
794.2
Applicable notional tax charge (12.5%)
104.0
99.3
Expenses not deductible for tax purposes
17.8
16.2
Net effect of differing tax rates
28.8
45.6
Utilisation of unprovided deferred tax assets
(1.9)
(3.6)
Other items
(7.7)
(17.2)
Total income tax expense
141.0
140.3
The total tax charge in future periods will be affected by any changes to the corporation tax rates in force in the countries in which
the Group operates. Changes in the geographical mix of future earnings will also impact the total tax charge.
The Group is subject to the Global Anti-Base Erosion Model Rules, also referred to as the Pillar Two model rules, with effect from
1 January 2024. The objective of these complex rules is to achieve minimum effective tax rates of 15% globally. The Group has
assessed the impact of these new rules and determined that the Group already has a Pillar Two effective tax rate of greater than
15% in the majority of the countries in which it operates. The Pillar Two tax charge is immaterial for 2024 and is included in the
total income tax expense.
The methodology used to determine the recognition and measurement of uncertain tax positions is set out in Note 1 ‘Statement of
Accounting Policies’.
The total value of deductible temporary differences which have not been recognised is €28.6m (2023: €33.4m) consisting mainly of
tax losses forward. €0.3m (2023: €0.1m) of the losses expire within 5 years while all other losses may be carried forward indefinitely.
No provision has been made for tax in respect of temporary differences arising from unremitted earnings of foreign operations as
there is no commitment to remit such earnings and no current plans to do so. Deferred tax liabilities of €29.9m (2023: €25.0m)
have not been recognised for withholding tax that would be payable on unremitted earnings of €598.0m (2023: €500.1m) in
certain subsidiaries.
8
Earnings Per Share
2024
€m
2023
€m
The calculations of earnings per share are based on the following:
Profit attributable to ordinary shareholders
665.5
640.3
Number of
shares (‘000)
2024
Number of
shares (‘000)
2023
Weighted average number of ordinary shares for the calculation of basic earnings per share
182,224
181,773
Dilutive effect of share options
1,446
1,371
Weighted average number of ordinary shares for the calculation of diluted earnings per share
183,670
183,144
2024
€ cent
2023
€ cent
Basic earnings per share
365.2
352.3
Diluted earnings per share
362.3
349.6
Dilution is attributable to the weighted average number of share options outstanding at the end of the reporting period.
The number of options which are anti-dilutive and have therefore not been included in the above calculations is nil (2023: nil).
9
Goodwill
2024
€m
2023
€m
At 1 January
2,660.6
2,495.5
Additions relating to acquisitions (Note 23)
682.5
168.2
Net exchange movement
22.6
(3.1)
Carrying amount 31 December
3,365.7
2,660.6
At 31 December
Cost
3,433.4
2,728.3
Accumulated impairment losses
(67.7)
(67.7)
Carrying amount
3,365.7
2,660.6
Cash generating units
Goodwill acquired through business combinations is allocated, at acquisition, to CGUs that are expected to benefit from
synergies in that combination. The CGUs are the lowest level within the Group at which the associated goodwill is monitored for
internal management reporting purposes and are not larger than the operating segments determined in accordance with IFRS 8
Operating Segments.
A total of 12 (2023: 12) CGUs have been identified and these are analysed between the five business segments in the Group as set
out below. Assets and liabilities have been assigned to the CGUs on a reasonable and consistent basis.
290
Kingspan Group plc
Annual Report & Financial Statements 2024
291
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
9
Goodwill (continued)
Cash generating units
Goodwill (€m)
2024
2023
2024
2023
Insulated Panels
6
6
1,106.4
1,041.9
Insulation
1
1
904.5
633.3
Data Solutions
2
2
122.7
119.2
Roofing + Waterproofing
1
1
807.5
466.4
Light, Air + Water
2
2
424.6
399.8
Total
12
12
3,365.7
2,660.6
Significant goodwill amounts
Management has assessed that, in line with IAS 36 Impairment of Assets, there are three CGUs that are individually significant
(greater than 10% of total goodwill) that require additional disclosure and these are as follows:
Panels
Joris Ide
Insulation
Roofing +
Waterproofing
2024
2023
2024
2023
2024
2023
Goodwill (€m)
397.1
364.3
904.5
633.3
807.5
466.4
Discount rate (%)
10.1
10.1
10.1
10.2
9.9
10.1
Excess of value-in-use over carrying amount (€m)
973.6
1,120.0
1,143.6
1,419.5
368.9
327.5
The goodwill allocated to these 3 CGUs (2023: 5 CGUs) accounts for 63% (2023: 78%) of the total carrying amount of €3,365.7m
(2023: €2,660.6m). The remaining goodwill balance of €1,256.6m (2023: €581.3m) is allocated across the other 9 CGUs (2023: 7
CGUs), none of which are individually significant. Similar assumptions and techniques are applied on the impairment testing of
these CGUs.
None of the individually significant CGUs are included in the “Sensitivity analysis” section as it is not considered reasonably
possible that there would be a change in the key assumptions such that the carrying amount would exceed value-in-use.
Consequently, no further disclosures have been provided for these CGUs.
Impairment testing
Goodwill acquired through business combinations has been allocated to the above CGUs for the purpose of impairment testing.
Impairment of goodwill occurs when the carrying value of the CGU is greater than the present value of the cash that it is expected
to generate (i.e. the recoverable amount). The Group reviews the carrying value of each CGU at least annually or more frequently
if there is an indication that a CGU may be impaired.
The recoverable amount of each CGU is determined from value-in-use calculations. The forecasts used in these calculations are
based on a 4 year financial plan approved by the Board of Directors, plus year 5 as forecasted by management, and specifically
excludes any future acquisition activity. The forecasts used for the Roofing + Waterproofing CGU are based on a 4 year financial
plan approved by the Board of Directors, plus years 5-10 as forecasted by management, and specifically excludes any future
acquisition activity. Roofing + Waterproofing is a relatively new CGU which was formed during 2022 and as a result, a longer
forecast period is required to reach a year that a long-term growth rate can be applied and is more akin to the existing CGUs
in order to calculate the terminal value. The forecast for the others include assumptions regarding future organic growth with
cash flows after year 5 assuming to continue in perpetuity at a general growth rate of 2% to 5% (Panels LATAM 5%), reflecting
the relevant CGU market growth. The use of cash flows in perpetuity is considered appropriate in light of the Group’s established
history of earnings growth and cash flow generation, its strong financial position and the nature of the industry in which the
Group operates.
The value in use calculation represents the present value of the future cash flows, including the terminal value, discounted at a
rate appropriate to each CGU. The real pre-tax discount rates used range from 9.8% to 23.3% (2023: 9.7% to 16.7%). These rates
are based on the Group’s estimated weighted average cost of capital, adjusted for risk, and are consistent with external sources
of information.
9
Goodwill (continued)
The cash flows and the key assumptions used in the value in use calculations are determined based on the historical performance
of the Group, its strong current financial position as well as management’s knowledge and expectation of future trends in the
industry. Expected future cash flows are, however, inherently uncertain and are therefore liable to material change over time.
The key assumptions used in the value in use calculations are subjective and include projected EBITDA margins, net cash flows,
discount rates used and the duration of the discounted cash flow model. Net cashflows incorporate the estimated capital
expenditure required to meet the Group’s Planet Passionate targets.
Sensitivity analysis
Sensitivity analysis was performed by reducing cash flows by 14%, increasing the discount rate by 11%, reducing the average
operating margin of each division by 14% and by reducing the long-term growth rate to 1%. Each test resulted in a positive
recoverable amount for each CGU under each approach. Management believes, therefore, that any reasonable change in any
of the key assumptions would not cause the carrying value of goodwill to exceed the recoverable amount, thereby giving rise to
an impairment.
10
Other Intangible Assets
2024
Customer
Relationships
€m
Patents &
Brands
€m
Other
Intangibles
€m
Total
€m
Cost
At 1 January
140.5
211.0
86.6
438.1
Acquisitions through business combinations (Note 23)
43.0
47.8
3.5
94.3
Additions
-
0.1
0.3
0.4
Net exchange difference
0.3
1.9
1.2
3.4
At 31 December
183.8
260.8
91.6
536.2
Accumulated amortisation
At 1 January
67.9
124.3
57.5
249.7
Charge for the year
19.4
18.3
6.9
44.6
Net exchange difference
0.4
1.5
0.8
2.7
At 31 December
87.7
144.1
65.2
297.0
Net Book Value as at 31 December 2024
96.1
116.7
26.4
239.2
2023
Customer
Relationships
€m
Patents &
Brands
€m
Other
Intangibles
€m
Total
€m
Cost
At 1 January
126.8
199.2
74.7
400.7
Acquisitions through business combinations (Note 23)
11.8
8.4
12.4
32.6
Additions
2.4
3.6
-
6.0
Net exchange difference
(0.5)
(0.2)
(0.5)
(1.2)
At 31 December
140.5
211.0
86.6
438.1
Accumulated amortisation
At 1 January
50.7
109.1
49.1
208.9
Charge for the year
17.7
15.2
8.8
41.7
Net exchange difference
(0.5)
-
(0.4)
(0.9)
At 31 December
67.9
124.3
57.5
249.7
Net Book Value as at 31 December 2023
72.6
86.7
29.1
188.4
Other intangibles relate primarily to technological know-how and order backlogs.
292
Kingspan Group plc
Annual Report & Financial Statements 2024
293
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
11
Property, Plant And Equipment
Land and
buildings
€m
Plant,
machinery
and other
equipment
€m
Motor
vehicles
€m
Total
€m
As at 31 December 2024
Cost
1,280.4
2,934.8
90.6
4,305.8
Accumulated depreciation and impairment charges
(405.8)
(1,592.5)
(53.3)
(2,051.6)
Net carrying amount
874.6
1,342.3
37.3
2,254.2
At 1 January 2024, net carrying amount
690.2
848.4
28.6
1,567.2
Acquisitions through business combinations (Note 23)
103.7
395.6
5.5
504.8
Additions
104.7
244.9
16.5
366.1
Disposals
(12.3)
(12.1)
(0.6)
(25.0)
Reclassification
6.3
(5.1)
(1.2)
-
Depreciation charge for year
(25.3)
(130.7)
(11.1)
(167.1)
Impairment charge for year
(0.2)
(3.7)
-
(3.9)
Effect of movement in exchange rates
7.5
5.0
(0.4)
12.1
At 31 December 2024, net carrying amount
874.6
1,342.3
37.3
2,254.2
Land and
buildings
€m
Plant,
machinery
and other
equipment
€m
Motor
vehicles
€m
Total
€m
As at 31 December 2023
Cost
1,024.6
2,113.2
71.0
3,208.8
Accumulated depreciation and impairment charges
(334.4)
(1,264.8)
(42.4)
(1,641.6)
Net carrying amount
690.2
848.4
28.6
1,567.2
At 1 January 2023, net carrying amount
657.2
757.8
22.9
1,437.9
Acquisitions through business combinations (Note 23)
5.0
36.2
0.2
41.4
Additions
51.2
169.5
13.0
233.7
Disposals
(0.3)
(2.0)
(0.6)
(2.9)
Reclassification
5.3
(6.5)
1.2
-
Depreciation charge for year
(22.5)
(103.9)
(8.0)
(134.4)
Impairment charge for year
(0.3)
(2.6)
-
(2.9)
Effect of movement in exchange rates
(5.4)
(0.1)
(0.1)
(5.6)
At 31 December 2023, net carrying amount
690.2
848.4
28.6
1,567.2
Included in land and buildings and plant, machinery and other equipment were amounts of €66.2m and €176.5m respectively
(2023: of €15.8m and €117.1m) relating to expenditure for assets in the course of construction. These assets have not yet
been depreciated.
The Group has no material investment properties and hence no property assets are held at fair value.
No property, plant or equipment have been pledged as security for liabilities entered into by the Group.
12
Financial Assets
2024
€m
2023
€m
Equity investments designated as FVOCI
At 1 January
128.4
93.6
Additions
23.4
22.2
Acquisitions through business combinations (Note 23)
0.2
-
Step up to subsidiary
(125.2)
-
Fair value remeasurement
(2.7)
12.5
Effect of movement in exchange rates
(0.2)
0.1
At 31 December
23.9
128.4
In October 2024, Kingspan acquired a controlling interest in Nordic Waterproofing Holding AB (Nordic Waterproofing) and
from this date has accounted for Nordic Waterproofing as a subsidiary and this has been disclosed in the Business Combination
note (see Note 23). Nordic Waterproofing is a publicly listed company on the Nasdaq Stockholm and is a market leader in
waterproofing products and services for the protection of buildings and infrastructure.
Investments in Subsidiaries
2024
€m
2023
€m
Company
At 1 January
2,118.4
1,238.5
Additions
201.4
865.7
Share options and awards
8.2
14.2
At 31 December
2,328.0
2,118.4
The Company increased its investment in Kingspan Holdings Limited during the year.
The share options and awards addition reflect the cost of share-based payments attributable to employees of subsidiary
undertakings, which are treated as capital contributions by the Company. The carrying value of investments is reviewed at each
reporting date and there were no indicators of impairment.
13
Investment In Associates
2024
€m
2023
€m
Interest in Associates accounted for using the equity method
At 1 January
-
-
Acquisitions through business combinations (Note 23)
11.9
-
Additions
1.0
-
Share of profit after tax
1.7
-
Dividends
(0.3)
-
Effect of movement in exchange rates
0.2
-
At 31 December
14.5
-
294
Kingspan Group plc
Annual Report & Financial Statements 2024
295
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
14
Inventories
2024
€m
2023
€m
Raw materials and consumables
869.5
732.4
Work in progress
55.4
40.1
Finished goods
452.1
359.5
Inventory impairment allowance
(179.9)
(167.7)
At 31 December
1,197.1
964.3
A total of €4.8bn (2023: €4.7bn) of inventories was included in the Consolidated Income Statement as an expense. This includes
a net income statement charge of €22.8m (2023: €18.6m) arising on the inventory impairment allowance. Inventory impairment
allowance levels are continuously reviewed by management and revised where appropriate, taking account of the latest available
information on the recoverability of carrying amounts.
No inventories have been pledged as security for liabilities entered into by the Group.
15
Trade And Other Receivables
2024
€m
2023
€m
Amounts falling due within one year:
Trade receivables, gross
1,264.6
1,163.2
Expected credit loss allowance
(116.4)
(111.4)
Trade receivables, net
1,148.2
1,051.8
Other receivables
159.0
133.6
Prepayments
77.0
68.8
Value added tax
6.0
-
1,390.2
1,254.2
The maximum exposure to credit risk for trade and other receivables at the reporting date is their carrying amount.
The Group uses an allowance matrix to measure Expected Credit Loss (ECL) of trade receivables from customers. The simplified
approach has been adopted and this gives rise to an ECL of €116.4m in 2024 (2023: €111.4m). This is presented in more detail in
Note 20.
Company
2024
€m
2023
€m
Amounts falling due within one year:
Amounts owed by group undertakings
18.3
165.9
18.3
165.9
The amounts due from group undertakings are unsecured, interest free and are repayable on demand.
16
Trade And Other Payables
2024
€m
2023
€m
Current
Trade payables
726.3
610.9
Accruals
630.5
524.7
Deferred income and customer prepayments
142.1
140.1
Income tax & social welfare
61.3
51.1
Value added tax
-
19.3
1,560.2
1,346.1
Deferred income primarily relates to service and maintenance and projected related revenue and is primarily short-term.
The directors consider that the carrying amount of trade and other payables approximates to their fair value.
Company
2024
€m
2023
€m
Current
Amounts owed to group undertakings
0.1
0.1
Payables
0.5
0.2
0.6
0.3
The amounts due to group undertakings are unsecured, interest free and are repayable on demand.
17
Leases
Right of use asset
Land and
buildings
€m
Plant,
machinery
and other
equipment
€m
Motor
vehicles
€m
Total
2024
€m
At 1 January 2024
158.6
22.9
37.7
219.2
Additions
17.1
5.8
26.5
49.4
Arising on acquisitions (Note 23)
20.2
3.1
2.2
25.5
Remeasurement
12.5
0.3
0.6
13.4
Terminations
(7.6)
(0.1)
(1.4)
(9.1)
Depreciation charge for the year
(35.6)
(7.7)
(21.5)
(64.8)
Reclassification
(0.3)
-
0.3
-
Effect of movement in exchange rates
2.2
(0.3)
0.3
2.2
At 31 December 2024
167.1
24.0
44.7
235.8
296
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Annual Report & Financial Statements 2024
297
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
17
Leases (continued)
Land and
buildings
€m
Plant,
machinery
and other
equipment
€m
Motor
vehicles
€m
Total
2023
€m
At 1 January 2023
154.3
21.7
29.3
205.3
Additions
17.9
7.3
26.4
51.6
Arising on acquisitions (Note 23)
(6.8)
1.5
0.2
(5.1)
Remeasurement
33.3
0.5
0.3
34.1
Terminations
(7.5)
(0.1)
(0.5)
(8.1)
Depreciation charge for the year
(30.6)
(7.6)
(18.3)
(56.5)
Reclassification
(0.1)
-
0.1
-
Effect of movement in exchange rates
(1.9)
(0.4)
0.2
(2.1)
At 31 December 2023
158.6
22.9
37.7
219.2
Lease liability
2024
€m
2023
€m
At 1 January
219.8
196.8
Additions
48.1
47.9
Arising on acquisitions (Note 23)
26.2
5.5
Remeasurement
13.2
34.4
Terminations
(9.9)
(8.2)
Payments
(68.7)
(60.5)
Interest
7.2
6.0
Effect of movement in exchange rates
2.7
(2.1)
At 31 December
238.6
219.8
Split as follows:
Current liability
63.9
48.0
Non-current liability
174.7
171.8
At 31 December
238.6
219.8
Expenses of €17.4m (2023: €13.3m) relating to short-term leases, leases of low-value assets and variable lease payments were
recognised in the Consolidated Income Statement.
18
Interest Bearing Loans And Borrowings
2024
€m
2023
€m
Current financial liabilities
Private placements
42.5
193.0
Bank loans (unsecured)
154.9
5.3
Lease obligations per banking covenants
0.3
2.3
197.7
200.6
18
Interest Bearing Loans And Borrowings (continued)
2024
€m
2023
€m
Non-current financial liabilities
Private placements
1,367.6
1,398.9
Public bonds
750.0
-
Bank loans (unsecured)
256.6
310.2
Lease obligations per banking covenants
11.1
8.5
2,385.3
1,717.6
Analysis of Net debt
2024
€m
2023
€m
Cash and cash equivalents
1,005.4
938.7
Derivatives financial instruments
4.6
-
Current borrowings
(197.7)
(200.6)
Non-current borrowings
(2,385.3)
(1,717.6)
Total Net debt
(1,573.0)
(979.5)
The Group’s core funding is provided by seven (2023: seven) private placement loan notes; one (2023: one) USD private placement
totalling $200m (2023: $200m) maturing in December 2028 and six (2023: six) EUR private placements totalling €1.2bn (2023:
€1.4bn) which mature in tranches between January 2025 and December 2032. The notes have a weighted average maturity of 4.5
years (2023: 5.0 years).
In October 2024, the Group established a new European Medium Term Note programme and boosted liquidity with a debut public
bond in the European market of €750m for 7 years at a fixed annual rate of 3.5%.
The primary bank debt facility is a €800m revolving credit facility, which was undrawn at year end, and which matures in May
2027.
During the year, the Group repaid part (€150m) of a 2022 acquisition related financing facility, with the remainder (€150m) to be
repaid in April 2025.
Included in cash at bank and in hand are overdrawn positions of €1,679.9m (2023: €1,789.1m). These balances form part of
a notional cash pool arrangement and are netted against cash balances of €1,698.9m (2023: €1,805.9m). The net cash pool
balance of €19.0m (2023: €16.8m) is included in the cash and cash equivalents balance above. There is a legal right of offset
between these balances and the balances are physically settled on a regular basis.
More details of the Group’s loans and borrowings are set out in Note 20.
Net debt, which is an Alternative Performance Measure, is stated net of interest rate and currency hedges which relate to hedges
of debt. Foreign currency derivative assets of €0.1m (2023: €nil) and foreign currency derivative liabilities of €nil (2023: €0.2)
which are used for transactional hedging are not included in the definition of net debt. Lease liabilities recognised due to the
implementation of IFRS 16 and deferred contingent consideration have also been excluded from the calculation of net debt which
is consistent with the terms and conditions of the covenants as set out in the Group’s external borrowing arrangements.
298
Kingspan Group plc
Annual Report & Financial Statements 2024
299
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
19
Deferred Contingent Consideration
2024
€m
2023
€m
At 1 January
229.1
187.1
Deferred contingent consideration arising on acquisitions (Note 23)
127.5
7.3
Movement in deferred contingent consideration arising from fair value adjustment
(16.1)
0.3
Put liability arising on acquisitions
148.8
22.9
Movement in put liability arising from fair value adjustment
35.0
10.2
Amounts paid
(1.1)
(6.6)
Effect of movement in exchange rates
(25.6)
7.9
At 31 December
497.6
229.1
Split as follows:
Current liabilities
345.5
190.2
Non-current liabilities
152.1
38.9
497.6
229.1
Analysed as follows:
Deferred contingent consideration
125.8
16.2
Put option liability
371.8
212.9
497.6
229.1
The put liability arising on acquisitions relates principally to the acquisitions of Steico, Villalba, TreeTops, IB Roofing, Fatek and
Solen. The deferred contingent consideration arising on acquisitions primarily relates to the acquisition of Steico and TreeTops.
For each acquisition for which deferred contingent consideration has been provided, an annual review takes place to evaluate
if the payment conditions are likely to be met. For the purposes of the fair value assessments all of the put option liabilities
are valued using the option price formula in the shareholders agreement and the most recent financial projections. These are
classified as unobservable inputs. The significant unobservable inputs used in the fair value measurements and the quantitative
sensitivity analysis are shown in the table below:
Type
Valuation technique
Significant
unobservable inputs
Sensitivity of the input to the fair
value
Deferred contingent
consideration
Discounted cashflow method
The net present value of the expected
payment is calculated by using a risk
adjusted discount rate where material.
The expected payments are valued
using the earn out formula in the
shareholders’ agreement and the most
recent financial projections.
• Risk adjusted
discount rates of
between 0.0% and
3.6%.
• Forecast
performance
in excess of a
predetermined
base target.
• A 10% decrease in the risk adjusted
discount rate would result in an
increase in the fair value of the
deferred contingent consideration of
€0.1m.
• A 5% increase in the assumed
profitability of the acquired entities
would result in an increase in the
fair value of the deferred contingent
consideration of €17.8m.
Put option liabilities
Discounted cashflow method
The net present value of the expected
payment is calculated by using a risk
adjusted discount rate. The expected
payments are valued using the option
price formula in the shareholders’
agreement and the most recent
financial projections.
• Risk adjusted
discount rates of
between 2.8% and
15.6%.
• EBITDA multiples of
between 5.0 and
10.2.
• A 10% decrease in the risk adjusted
discount rate would result in an
increase in the fair value of the put
option liabilities of €4.8m.
• A 5% increase in the assumed
profitability of the acquirees would
result in an increase in the fair value
of the put option liabilities of €17.7m.
19
Deferred Contingent Consideration (continued)
The amount of the deferred contingent consideration and put liability that have been recognised are arrived at by the application
of a range of outcomes and associated probabilities in order to determine the carrying amounts.
Liabilities in the range of €3.7m (2023: €nil) to €125.8m (2023: €16.2m) could arise with respect to potential deferred contingent
consideration obligations and €nil (2023: €nil) to €371.8m (2023: €212.9m) with respect to potential put option obligations.
Further detail has been presented below in relation to the principal put option liabilities and deferred contingent consideration.
The put option in the shareholders’ agreement with non-controlling shareholders of Isoeste has been exercisable since 2023. The
undiscounted expected cash outflow is estimated to be €145.0m (2023: €167.8m).
The put option in the shareholders’ agreement with non-controlling shareholders of Steico can be exercised in 2025. The
undiscounted expected cash outflow is estimated to be €68.6m (2023: N/A).
The put option in the shareholders’ agreement with non-controlling shareholders of PanelMET has been exercisable since 2022. The
undiscounted expected cash outflow is estimated to be €13.8m (2023: €14.8m).
The put option in the shareholders’ agreement with non-controlling shareholders of Kingspan Jindal has been exercisable since
2022. The undiscounted expected cash outflow is estimated to be €27.8m (2023: €16.6m).
The put option in the shareholders’ agreement with non-controlling shareholders of Q-nis can be exercised in 2029. The
undiscounted expected cash outflow is estimated to be €43.7m (2023: €24.2m).
The put option in the shareholders’ agreement with non-controlling shareholders of TreeTops can be exercised in 2028. The
undiscounted expected cash outflow is estimated to be €41.1m (2023: N/A).
The put option in the shareholders’ agreement with non-controlling shareholders of Villalba can be exercised in 2028. The
undiscounted expected cash outflow is estimated to be €31.5m (2023: N/A).
In relation to the put options listed above, call options also rest over the remaining shareholding held by non-controlling interests,
which are exercisable by the Group in a very limited range of circumstances. No value has been attributed to these call options.
The deferred contingent consideration in respect of Steico becomes exercisable in 2025. The undiscounted expected cash outflow
is estimated to be €82.9m (2023: N/A).
20
Financial Risk Management And Financial Instruments
Financial Risk Management
In the normal course of business, the Group and Company have exposure to a variety of financial risks, including foreign currency
risk, interest rate risk, liquidity risk and credit risk. The Group’s and Company’s focus is to understand these risks and to put in
place policies that minimise the economic impact of an adverse event on the Group’s performance. Meetings are held on a
regular basis to review the result of the risk assessment, approve recommended risk management strategies and monitor the
effectiveness of such policies.
The Group’s and Company’s risk management strategies include the usage of derivatives (other than for speculative
transactions), principally forward exchange contracts, interest rate swaps, and cross currency interest rate swaps.
Liquidity risk
In addition to the high level of free cash flow, the Group operates a prudent approach to liquidity management using a mixture of
long-term debt together with short-term debt and cash and cash equivalents to enable it to meet its liabilities when due.
The Group’s core funding is provided by a number of private placement loan notes totalling €1,410.1m (2023: €1,591.9m). The
notes have a weighted average maturity of 4.5 years (2023: 5 years).
In October 2024, the Group established a new European Medium Term Note programme and boosted liquidity with a debut public
bond in the European market of €750m for 7 years at a fixed annual rate of 3.5%. The primary bank debt facility is a €800m
revolving credit facility, which was undrawn at year end, and which matures in May 2027. During the year, the Group repaid part
(€150m) of a 2022 acquisition related financing facility, with the remainder (€150m) to be repaid in April 2025.
300
Kingspan Group plc
Annual Report & Financial Statements 2024
301
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
20
Financial Risk Management And Financial Instruments (continued)
Both the private placements and the banking facilities (revolving credit facility and one additional banking facility) have an
interest cover test (EBITDA: Net interest must not be less than 4 times) and a net debt test (Net debt: EBITDA must not exceed
3.5 times). These covenant tests have been met for the covenant test period to 31 December 2024.
The Group also has in place a number of uncommitted bilateral facilities including working capital facilities totalling €222.1m
(2023: €212.8m) and are supported by a Group guarantee. Core funding arrangements arise from a wide and varied number of
institutions and, as such, there is no significant concentration of liquidity risk.
The following are the carrying amounts and contractual maturities of financial liabilities (including estimated interest payments):
As at 31 December 2024
Carrying
amount
2024
€m
Contractual
cash flow
€m
Within 1
year
€m
Between
1 and 2
years
€m
Between
2 and 5
years
€m
Greater
than 5
years
€m
Non derivative financial instruments
Bank loans
411.5
433.4
168.3
259.3
3.7
2.1
Private placement loan notes
1,410.1
1,566.9
76.5
194.2
818.5
477.7
Public bonds
750.0
933.8
26.3
26.3
78.8
802.4
Lease obligations per banking covenants
11.4
11.4
0.3
5.0
4.9
1.2
Lease liabilities
238.6
258.3
67.8
54.6
81.4
54.5
Trade and other payables
1,418.1
1,418.1
1,418.1
-
-
-
Deferred contingent consideration
497.6
540.6
364.3
12.6
163.7
-
Derivative financial liabilities/(assets)
Foreign exchange forwards used for hedging:
Carrying value liabilities
-
-
-
-
-
-
Carrying value assets
(4.7)
-
-
-
-
-
- outflow
-
168.4
168.4
-
-
-
- inflow
-
(173.1)
(173.1)
-
-
-
As at 31 December 2023
Carrying
amount
2023
€m
Contractual
cash flow
€m
Within 1
year
€m
Between
1 and 2
years
€m
Between
2 and 5
years
€m
Greater
than 5
years
€m
Non derivative financial instruments
Bank loans
315.5
333.6
19.4
308.5
4.6
1.1
Private placement loan notes
1,591.9
1,784.6
230.0
76.3
666.6
811.7
Lease obligations per banking covenants
10.8
10.8
2.3
1.9
5.8
0.8
Lease liabilities
219.8
244.0
54.7
45.9
79.2
64.2
Trade and other payables
1,206.0
1,206.0
1,206.0
-
-
-
Deferred contingent consideration
229.1
244.1
202.1
15.1
2.7
24.2
Derivative financial liabilities/(assets)
Foreign exchange forwards used for hedging:
Carrying value assets
-
-
-
-
-
-
Carrying value liabilities
0.2
-
-
-
-
-
- outflow
-
4.4
4.4
-
-
-
- inflow
-
(4.2)
(4.2)
-
-
-
For provisions, the carrying amount represents the Group’s best estimate of the expected future outflows. As it does not represent
a contractual liability at the year end, no amount has been included as a contractual cash flow.
20
Financial Risk Management And Financial Instruments (continued)
Deferred contingent consideration, which includes any put option liabilities, is valued using the relevant agreed multiple of the
expected future EBITDA in each acquired business which is appropriately discounted using a risk-adjusted discount rate. The
estimated fair value of deferred contingent consideration would decrease if EBITDA was lower or if the risk adjusted discount rate
was higher. The range of outcomes are set out in Note 19.
The actual future cash flows could be different from the amounts included in the tables above, if the associated obligations
were to become repayable on demand as a result of non-compliance with covenants or other contractual terms. No such non-
compliance is envisaged.
Market Risks
Foreign exchange risk
There are two types of foreign currency risk to which the Group is exposed, namely transaction risk and translation risk. The
objective of the Group’s foreign currency risk management strategy is to manage and control market risk exposures within
acceptable parameters. As set out below the Group uses derivatives to manage foreign exchange risk. Transactions involving
derivatives are carried out in accordance with the Treasury policy. The Group seeks to apply hedge accounting, where practicable,
to manage volatility in profit or loss.
Transaction risk
Apart from transaction risk on debt, this arises where operating units have input costs or sales in currencies other than their
functional currencies. These exposures are internally hedged as far as possible. Group policy is to hedge up to a maximum of 75%
of a forecast exposure. Material exposures are hedged on a rolling 12 months basis. The Group’s principal exposure relates to GBP
and USD, with less significant exposure to the Canadian dollar.
In addition, where operating entities carry monetary assets and liabilities at year end denominated other than in their functional
currency, their translation at the year end rates of exchange into their functional currency will give rise to foreign currency gains
and losses. The Group seeks to manage these gains and losses to net to nil.
Based on current cash flow projections for the businesses to 31 December 2025, it is estimated that the Group is long GBP55m
(2023: long GBP24m) and long US$50m (2023: long US$35m). At 31 December 2024 these amounts were unhedged.
Translation risk
This exists due to the fact that the Group has operations whose functional currency is not the Euro, the Group’s presentational
currency. Changes in the exchange rate between the reporting currencies of these operations and the Euro, have an impact on
the Group’s consolidated reported result. For 2024, the impact of changing currency rates versus Euro compared to the average
2023 rates was positive €93.0m (2023: negative €19.0m). The key drivers of the change year on year are the movements in
GBP and USD. In common with many other international groups, the Group does not currently seek to externally hedge its
translation exposure.
Sensitivity analysis for primary currency risk
A 10% volatility of the EUR against GBP and USD in respect of transaction risk in the reporting entities functional currencies would
impact reported after tax profit by €10m (2023: €6m) and equity by €10m (2023: €6m).
Interest rate risk
The Group has an exposure to movements in interest rates on its debt portfolio, and on its cash and cash equivalent balances and
derivatives. The Group policy is to ensure that at least 40% of its debt is fixed rate.
In respect of interest bearing loans and borrowings, the following table indicates the effective average interest rates at the
year end and the periods over which they mature. Interest on interest bearing loans and borrowings classified as floating rate is
repriced at intervals of less than one year. The table further analyses interest bearing loans and borrowings by currency and fixed/
floating mix.
302
Kingspan Group plc
Annual Report & Financial Statements 2024
303
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
20
Financial Risk Management And Financial Instruments (continued)
As at 31 December 2024
Weighted average
effective interest rate
Total
€m
At fixed
interest rate
€m
At floating
interest rate
€m
Under 5
years
€m
Over
5 years
€m
Bank loans
0.69%
411.5
23.1
388.4
409.5
2.0
Loan notes
1.34%
1,410.1
1,410.1
-
946.6
463.5
Public bonds
1.02%
750.0
750.0
-
-
750.0
2,571.6
2,183.2
388.4
1,356.1
1,215.5
Total
€m
At fixed
interest rate
€m
At floating
interest rate
€m
Euro
2,379.5
1,991.1
388.4
USD
192.1
192.1
-
Other
-
-
-
2,571.6
2,183.2
388.4
The weighted average maturity of debt for wholly owned entities is 5 years as at 31 December 2024 (2023: 4.4 years).
As at 31 December 2023
Weighted average
effective interest rate
Total
€m
At fixed interest
rate
€m
At floating
interest rate
€m
Under 5
years
€m
Over
5 years
€m
Bank loans
4.68%
315.5
15.5
300.0
314.3
1.2
Loan notes
2.34%
1,591.9
1,591.9
-
809.4
782.5
1,907.4
1,607.4
300.0
1,123.7
783.7
Total
€m
At fixed interest
rate
€m
At floating
interest rate
€m
Euro
1,726.5
1,426.5
300.0
USD
180.9
180.9
-
Other
-
-
-
1,907.4
1,607.4
300.0
An increase or decrease of 100 basis points in each of the applicable rates and interest rate curves would impact reported after tax
profit by €6.1m (2023: €2.7m) and equity by €6.1m (2023: €2.7m) as there are floating rate borrowings in place and cash on the
balance sheet.
Credit risk
Credit risk encompasses the risk of financial loss to the Group of counterparty default in relation to any of its financial assets. The
Group’s maximum exposure to credit risk is represented by the carrying value of each financial asset:
2024
€m
2023
€m
Cash & cash equivalents
1,005.4
938.7
Trade receivables
1,264.6
1,163.2
Derivative financial assets
4.7
-
20
Financial Risk Management And Financial Instruments (continued)
Trade receivables arise from a wide and varied customer base spread across various activities, end users and geographies, and as
such there is no significant concentration of credit risk. The Group’s credit risk management policy in relation to trade receivables
involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience
and other factors. The utilisation of credit limits is regularly monitored and a significant element of credit risk is covered by credit
insurance or other forms of collateral such as letters of credit or bank guarantees.
At the year end, the Group was carrying a receivables book of €1,148.2m (2023: €1,051.8m) expressed net of provision for default
in payment. This represents a net risk of 13% (2023: 13%) of sales. Of these net receivables, approximately 63% (2023: 60%) were
covered by credit insurance or other forms of collateral such as letter of credit and bank guarantees.
At 31 December, the exposure to credit risk for trade receivables by geographic region was as follows:
2024
€m
2023
€m
Western & Southern Europe
612.1
608.8
Central & Northern Europe
257.3
204.5
Americas
279.6
248.7
Rest of World
115.6
101.2
1,264.6
1,163.2
At 31 December, the exposure to credit risk for trade receivables by customer type was as follows:
2024
€m
2023
€m
Insulated Panels customers
719.8
689.5
Insulation customers
220.9
204.3
Other customers
323.9
269.4
1,264.6
1,163.2
The Group uses an allowance matrix to measure Expected Credit Loss (ECL) of trade receivables from customers. The ECL
simplified approach has been adopted.
Loss rates are calculated using a roll rate method based on the probability of a receivable progressing through successive chains
of non-payment to write-off. The rates are calculated at a business unit level which reflects the risks associated with geographic
region, age, mix of customer relationship and type of product purchased. The identifiable loss pertaining to cash positions
is immaterial.
The following table provides the information about the exposure to credit risk and ECL for trade receivables as at
31 December 2024.
Weighted
average loss
rate
%
Gross
carrying
amount
€m
Loss
allowance
€m
Current (not past due)
0%
873.1
4.1
1-30 days past due
2%
212.9
4.5
31-60 days past due
10%
52.9
5.5
61-90 days past due
36%
18.4
6.7
More than 90 days past due
89%
107.3
95.6
1,264.6
116.4
304
Kingspan Group plc
Annual Report & Financial Statements 2024
305
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
20
Financial Risk Management And Financial Instruments (continued)
The following table provides the information about the exposure to credit risk and ECL for trade receivables as at
31 December 2023.
Weighted
average loss
rate
%
Gross
carrying
amount
€m
Loss
allowance
€m
Current (not past due)
1%
800.8
7.3
1-30 days past due
3%
199.0
6.2
31-60 days past due
7%
41.6
3.1
61-90 days past due
18%
21.4
3.9
More than 90 days past due
91%
100.4
90.9
1,163.2
111.4
Loss rates are based on actual credit loss experience over an appropriate diverse sample of trading periods. Trade receivables are
written off when there is no reasonable expectation of recovery.
Movements in the allowance for impairment in respect of trade receivables
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
2024
€m
2023
€m
Balance at 1 January
111.4
125.5
Arising on acquisition
4.0
3.2
Written off during the year
(6.4)
(13.5)
Net remeasurement of loss allowance
4.7
(3.4)
Effect of movement in exchange rates
2.7
(0.4)
At 31 December
116.4
111.4
There are no material trade receivables written off during 2024 (2023: €nil) which are still subject to enforcement activity.
The increase in the expected credit loss allowance during 2024 reflects the increase in the gross carrying amount of
trade receivables.
Cash & cash equivalents
On the Group’s cash and cash equivalents and derivatives, counterparty risk is managed by dealing with banks that have a
minimum credit rating and by spreading business across a portfolio of 10 relationship banks (2023: 10).
20
Financial Risk Management And Financial Instruments (continued)
Financial instruments by category
The carrying amount of financial assets presented in the Consolidated Statement of Financial Position relate to the following
measurement categories as defined in IFRS 9:
Financial
asset at
fair value
through OCI
€m
Assets at
amortised
cost
€m
Derivatives
designated
as hedging
instrument
€m
Total
€m
2024
Current:
Trade receivables, net
-
1,148.2
-
1,148.2
Other receivables
-
165.0
-
165.0
Cash and cash equivalents
-
1,005.4
-
1,005.4
Derivative financial instruments
-
-
4.7
4.7
-
2,318.6
4.7
2,323.3
Non-current:
Financial asset
23.9
-
-
23.9
23.9
-
-
23.9
Financial
asset at
fair value
through OCI
€m
Assets at
amortised
cost
€m
Derivatives
designated
as hedging
instrument
€m
Total
€m
2023
Current:
Trade receivables, net
-
1,051.8
-
1,051.8
Other receivables
-
133.6
-
133.6
Cash and cash equivalents
-
938.7
-
938.7
Derivative financial instruments
-
-
-
-
-
2,124.1
-
2,124.1
Non-current:
Financial asset
128.4
-
-
128.4
128.4
-
-
128.4
It is considered that the carrying amounts of the above financial assets approximate their fair values.
306
Kingspan Group plc
Annual Report & Financial Statements 2024
307
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
20
Financial Risk Management And Financial Instruments (continued)
The carrying amounts of financial liabilities presented in the Consolidated Statement of Financial Position relate to the following
measurement categories as defined in IFRS 9:
Financial
liabilities at
fair value
through profit
or loss
€m
Financial
liabilities
measured at
amortised cost
€m
Financial
liabilities at
fair value
though OCI
€m
Derivatives
designated
as hedging
instrument
€m
Total
€m
2024
Current:
Borrowings
-
197.7
-
-
197.7
Lease liabilities
-
63.9
-
-
63.9
Trade payables
Derivative financial instruments
-
-
726.3
-
-
-
-
-
726.3
-
Accruals
-
630.5
-
-
630.5
Deferred contingent consideration
103.2
-
242.3
-
345.5
103.2
1,618.4
242.3
-
1,963.9
Non-current:
Borrowings
-
2,385.3
-
-
2,385.3
Lease liabilities
-
174.7
-
-
174.7
Deferred contingent consideration
22.7
-
129.4
-
152.1
22.7
2,560.0
129.4
-
2,712.1
Financial
liabilities at fair
value through
profit or loss
€m
Financial
liabilities
measured at
amortised cost
€m
Financial
liabilities at fair
value though
OCI
€m
Derivatives
designated
as hedging
instrument
€m
Total
€m
2023
Current:
Borrowings
-
200.6
-
-
200.6
Lease liabilities
-
48.0
-
-
48.0
Trade payables
Derivative financial instruments
-
-
610.9
-
-
-
-
0.2
610.9
0.2
Accruals
-
524.7
-
-
524.7
Deferred contingent consideration
-
-
190.2
-
190.2
-
1,384.2
190.2
0.2
1,574.6
Non-current:
Borrowings
-
1,717.6
-
-
1,717.6
Lease liabilities
-
171.8
-
-
171.8
Deferred contingent consideration
16.2
-
22.7
-
38.9
16.2
1,889.4
22.7
-
1,928.3
Fair value hierarchy
Financial assets and liabilities recognised at fair value are analysed between those based on quoted prices in active markets
for identical assets or liabilities (Level 1), those involving inputs other than quoted prices that are observable for the assets
or liabilities, either directly or indirectly (Level 2); and those involving inputs for the assets or liabilities that are not based on
observable market data (Level 3) as set out in Note 19.
20
Financial Risk Management And Financial Instruments (continued)
Normally, the derivatives entered into by the Group are not traded in active markets. The fair values of these contracts are
estimated using a valuation technique that maximises the use of observable market inputs, e.g. market exchange and interest
rates (Level 2). All derivatives entered into by the Group are included in Level 2 and consist of foreign currency forward contracts,
interest rate swaps and cross currency interest rate swaps.
As at 31 December 2024
As at 31 December 2023
Level 1
€m
Level 2
€m
Level 3
€m
Level 1
€m
Level 2
€m
Level 3
€m
Financial Assets
Equity investments
-
23.9
-
110.8
17.6
-
Foreign exchange contracts for hedging
-
4.7
-
-
-
-
Financial Liabilities
Deferred contingent consideration
-
-
125.8
-
-
16.2
Put option liabilities
-
-
371.8
-
-
212.9
Foreign exchange contracts for hedging
-
-
-
-
0.2
-
The principal movements in Level 3 liabilities in 2024 are set out in the table below:
Balance
1 January
2024
€m
Settlement
€m
Fair value
movement
€m
Arising on
acquisition
€m
Translation
adjustment
€m
Balance
31 December
2024
€m
Deferred contingent consideration
16.2
(1.1)
(16.1)
127.5
(0.7)
125.8
Put option liabilities
212.9
-
35.0
148.8
(24.9)
371.8
229.1
(1.1)
18.9
276.3
(25.6)
497.6
The principal movements in Level 3 liabilities in 2023 are set out in the table below:
Balance
1 January
2023
€m
Settlement
€m
Fair value
movement
€m
Arising on
acquisition
€m
Translation
adjustment
€m
Balance
31 December
2023
€m
Deferred contingent consideration
15.7
(6.6)
0.3
7.3
(0.5)
16.2
Put option liabilities
171.4
-
10.2
22.9
8.4
212.9
187.1
(6.6)
10.5
30.2
7.9
229.1
During the year ended 31 December 2024, the put liabilities were reassessed based on the most recent available financial
information. There were no other significant changes in the business or economic circumstances that affect the fair value of the
remaining financial assets and liabilities, no reclassifications and no transfers between levels of the fair value hierarchy used in
measuring the fair value of the financial instruments.
Except as detailed below, it is considered that the carrying amounts of financial assets and financial liabilities recognised at
amortised cost approximate their fair values. The fair value of the Level 2 financial liabilities below has been determined through
the use of external market data available publicly.
308
Kingspan Group plc
Annual Report & Financial Statements 2024
309
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
20
Financial Risk Management And Financial Instruments (continued)
As at 31 December 2024
As at 31 December 2023
Carrying
amount
€m
Fair Value
€m
Level
Carrying
amount
€m
Fair Value
€m
Level
Private placements
1,410.1
1,426.5
2
1,591.9
1,594.8
2
Public bonds
750.0
817.3
2
-
-
-
Capital Management Policies and Procedures
The Group employs a combination of debt and equity to fund its operations. As at 31 December the total capital employed in the
Group was as follows:
2024
€m
2023
€m
Equity
4,590.8
3,947.8
Add back accumulated amortisation of intangible assets not fully amortised
139.2
130.9
Net debt
1,573.0
979.5
Total Capital Employed
6,303.0
5,058.2
The Board’s objective when managing capital is to preserve a strong capital base to maintain the confidence of investors, creditors
and the market. The Board monitors the return on capital (defined as total shareholders’ equity plus net debt and adjusted
for cumulative amortisation of intangibles not fully amortised), and targets a return in excess of 20% for investments over the
medium-term.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and
the advantages and security afforded by a sound capital position. The Group actively manages foreign currency and interest
rate exposure, as well as actively managing the net asset position, in order to create bottom line value. This necessitates the
development of a methodology to optimise the allocation of financial resources on the one hand and the return on capital on
the other.
The Board closely monitors externally imposed capital restrictions which are present due to covenants within the Group’s core
banking facilities.
There were no material changes to the Group’s approach to capital management during the year.
21
Provisions For Liabilities
2024
€m
2023
€m
Guarantees and warranties
At 1 January
183.9
181.5
Arising on acquisitions (Note 23)
5.0
6.3
Provided during year
67.4
71.4
Claims paid
(57.8)
(47.8)
Provisions released
(35.9)
(26.3)
Effect of movement in exchange rates
1.7
(1.2)
At 31 December
164.3
183.9
Current liability
55.9
70.2
Non-current liability
108.4
113.7
164.3
183.9
21
Provisions For Liabilities (continued)
The Group manufactures a wide range of insulation and related products for use primarily in the construction sector. Some
products carry formal guarantees of satisfactory performance of varying periods following their purchase by customers and a
provision is carried in respect of the expected costs of settling warranty, and guarantee claims which arise. The Group in the
course of its operations can be party to claims, litigation or enforcement actions. Both the number of claims and the cost of
settling the claim are sensitive to change. Where a performance obligation exists, in most cases, a sufficiently reliable estimate
can be made based on a range of possible outcomes and a provision has been recognised. In some cases where a performance
obligation exists but the extent and cost of settling a claim or potential claim or enforcement action cannot be measured with
sufficient reliability, no provision is recognised until such a reliable estimate can be made. Provisions are reviewed by management
on a regular basis and adjusted to reflect the current best estimate of the economic outflow. If it is no longer probable that an
outflow of economic benefits will be required, the related provision is reversed.
For the non-current element of the provision, the Group anticipates that these will be utilised within three years of the reporting
date. Discounting of the non-current element has not been applied because the discount would be immaterial.
22
Deferred Tax Assets And Liabilities
Deferred tax assets and liabilities arising from temporary differences and unused tax losses after offset are as follows:
2024
€m
2023
€m
Deferred tax assets
84.5
79.6
Deferred tax liabilities
(113.9)
(60.9)
Net position
(29.4)
18.7
Deferred tax arises from differences in the carrying value of items such as property, plant and equipment, intangibles, pension
obligations, and other temporary differences in the financial statements and the tax base established by the tax authorities.
The movement in the net deferred tax position for 2024 is as follows:
Balance
1 Jan
2024
Recognised
in profit
or loss
Recognised
in equity
Recognised
in other
comprehensive
income
Translation
adjustment
Arising on
acquisitions
Balance
31 Dec
2024
€m
€m
€m
€m
€m
€m
€m
Property, plant and equipment
(60.8)
(3.2)
-
-
(1.7)
0.2
(65.5)
Intangibles
(44.9)
10.0
-
-
(1.0)
(24.5)
(60.4)
Other temporary differences
95.6
(5.1)
(2.2)
-
1.0
(16.5)
72.8
Pension obligations
5.5
0.9
-
(0.5)
-
-
5.9
Unused tax losses
23.3
(5.5)
-
-
-
-
17.8
18.7
(2.9)
(2.2)
(0.5)
(1.7)
(40.8)
(29.4)
The movement in the net deferred tax position for 2023 is set out overleaf:
310
Kingspan Group plc
Annual Report & Financial Statements 2024
311
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
22
Deferred Tax Assets And Liabilities (continued)
Balance
1 Jan
2023
Recognised
in profit or
loss
Recognised
in equity
Recognised
in other
comprehensive
income
Translation
adjustment
Arising on
acquisitions
Balance
31 Dec
2023
€m
€m
€m
€m
€m
€m
€m
Property, plant and equipment
(53.4)
(7.7)
-
-
0.5
(0.2)
(60.8)
Intangibles
(60.9)
5.5
-
-
(1.0)
11.5
(44.9)
Other temporary differences
77.5
8.5
3.2
-
(1.3)
7.7
95.6
Pension obligations
6.4
(1.2)
-
0.4
(0.1)
-
5.5
Unused tax losses
15.3
7.9
-
-
-
0.1
23.3
(15.1)
13.0
3.2
0.4
(1.9)
19.1
18.7
23
Business Combinations
A key strategy of the Group is to create and sustain market leading positions through acquisitions in markets it currently operates
in, together with extending the Group’s footprint in new geographic markets. In line with this strategy, the principal acquisitions
completed during the year were as follows:
In January 2024, the Group acquired 51% of the share capital of Steico SE (Steico) with an option to acquire a further c.10% of
shares in Steico in the future. Steico is the world leader in wood fibre insulation and wood-based building envelope products, based
in Germany and listed on the unofficial markets of several German Stock Exchanges. The total combined consideration, including
deferred contingent consideration and net debt acquired, amounted to €510.0m.
In October 2024, the Group increased its shareholding in Nordic Waterproofing Holding AB (Nordic Waterproofing) to 62.6%
thereby attaining a controlling shareholding. Nordic Waterproofing is a publicly listed company on the Nasdaq Stockholm and
is a market leader in waterproofing products and services for the protection of buildings and infrastructure. The total combined
consideration, including net debt acquired, amounted to €162.3m.
The Group also made a number of smaller acquisitions during the year for a combined consideration, including deferred
contingent consideration and net debt acquired, of €305.6m:
• The Insulated Panels division acquired the business and assets of Conqueror in New Zealand in January 2024, 100% of the share
capital of Rafinor and Eftex in Denmark and 100% of the share capital of Clastina in Belgium in April 2024 and 70% of the
share capital of Fatek Advance Insulation in Thailand in June 2024. The division acquired 100% of the share capital of KZK in the
Netherlands in July 2024 and 100% of the share capital of Siegmetall in Germany in September 2024. The division also acquired
100% of the share capital of PSP Profile in France in October 2024, 85% of the share capital of Solen Energy in the UK, 51% of
the share capital of Villalba in Chile in November 2024 and acquired certain business and assets of TPF in France in December
2024. A controlling interest in a venture in Paraguay was also acquired during the financial year.
• In April 2024 the Insulation division acquired the stonewool manufacturing business and assets in Germany from Karl Bachl
Kunststoffverarbeitung GmbH & Co. KG as well as 75% of the share capital of TreeTops in Denmark. In May 2024, the division
also acquired the acoustic business and assets of Isolco in the Netherlands.
• In April 2024 the Light, Air + Water division acquired 100% of the share capital of Visa Oeste and Petaproj in Portugal and in
October 2024 acquired 100% of the share capital of National Poly Industries in Australia.
• In September 2024 the Roofing + Waterproofing division acquired 90% of the share capital of IB Roof Systems in the USA.
The table below reflects the provisional fair value of the identifiable net assets acquired in respect of the acquisitions completed
during the year. Any amendments to fair values will be made within the twelve month period from the date of acquisition, as
permitted by IFRS 3 Business Combinations.
23
Business Combinations (continued)
Steico
Nordic
Waterproofing
Other*
Total
€m
€m
€m
€m
Non-current assets
Intangible assets
65.7
7.5
21.1
94.3
Investment in associates
-
11.9
-
11.9
Financial assets
-
0.2
-
0.2
Property, plant and equipment
341.9
39.3
123.6
504.8
Right of use assets
2.2
11.0
12.3
25.5
Current assets
Inventories
50.2
60.6
51.7
162.5
Trade and other receivables
45.2
75.7
56.2
177.1
Current liabilities
Trade and other payables
(76.9)
(71.9)
(66.1)
(214.9)
Provisions for liabilities
(1.9)
(1.2)
(1.9)
(5.0)
Lease liabilities
(0.7)
(4.3)
(3.2)
(8.2)
Non-current liabilities
Retirement benefit obligations
(4.0)
-
-
(4.0)
Lease liabilities
(1.5)
(7.0)
(9.5)
(18.0)
Deferred tax liabilities
(22.8)
(9.6)
(8.4)
(40.8)
Total identifiable assets
397.4
112.2
175.8
685.4
Non-controlling interest arising on acquisition
(121.9)
(131.0)
(11.9)
(264.8)
Step up from financial asset
-
(125.2)
-
(125.2)
Goodwill
234.5
306.3
141.7
682.5
Total consideration
510.0
162.3
305.6
977.9
Satisfied by:
Cash (net of cash acquired)
337.2
162.3
275.8
775.3
Deferred contingent consideration
97.7
-
29.8
127.5
Share capital issued
75.1
-
-
75.1
Total consideration
510.0
162.3
305.6
977.9
* Other includes the remaining acquisitions completed during the period together with certain immaterial remeasurements of
prior year accounting estimates.
The acquired goodwill is attributable principally to the profit generating potential of the businesses, together with a strong
workforce, new geographies and synergies expected to be achieved from integrating the acquired businesses into the Group’s
existing business.
In the post-acquisition period to 31 December 2024, the businesses acquired during the current year contributed revenue of
€536.3m and trading profit of €35.3m to the Group’s results.
The Group’s full year revenue and trading profit had the acquisitions taken place at the start of the year, would have been
€9,171.4m and €947.6m respectively.
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to €181.1m. The fair
value of these receivables is €177.1m, all of which is recoverable, and is inclusive of an aggregate impairment provision of €4.0m.
There is €33.3m of goodwill (2023: €nil) which is expected to be deductible for tax purposes.
The Group incurred acquisition related costs of €6.1m (2023: €6.8m) relating to external legal fees and due diligence costs. These
costs have been included in operating costs in the Consolidated Income Statement.
312
Kingspan Group plc
Annual Report & Financial Statements 2024
313
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
23
Business Combinations (continued)
The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis due to the
relative size of the acquisitions and the timing of the transactions. Any amendments to these fair values within the twelve-month
timeframe from the date of acquisition will be disclosed in the 2025 Annual Report, as stipulated by IFRS 3.
Prior year acquisitions
The following principal acquisitions completed during the prior year were as follows:
In April 2023, the Group acquired 100% of the share capital of CaPlast, enhancing our Roofing + Waterproofing underlayment and
vapour control offerings in the DACH region. The total consideration, including net debt acquired amounted to €86.9m.
The Group also made a number of smaller acquisitions during the prior year for a combined consideration of €140.0m:
• The Insulated Panels division acquired 100% of the share capital of Alaço in Portugal in January 2023, 100% of the share capital
of LRM in France in May 2023, 51% of the share capital of MontFrio in Uruguay in June 2023 and 100% of the share capital of
Toode Group in the Baltics in September 2023.
• In June 2023, the Insulation division acquired 80% of the share capital of HempFlax Building Solutions in Germany and 100% of
the share capital of Thor Building Products in Australia.
• The Data Solutions division acquired 70% of Q-nis in Ireland during September 2023 and 100% of the share capital of Provan
Group in Belgium in November 2023.
The table below reflects the fair value of the identifiable net assets acquired in respect of the acquisitions completed during the
prior year. Any amendments to fair values are made within the twelve month period from the date of acquisition, as permitted by
IFRS 3, Business Combinations.
CaPlast
€m
Other*
€m
Total
€m
Non-current assets
Intangible assets
22.7
9.9
32.6
Property, plant and equipment
16.5
24.9
41.4
Right of use assets
1.8
(6.9)
(5.1)
Deferred tax assets
-
29.1
29.1
Current assets
Inventories
10.4
23.5
33.9
Trade and other receivables
6.5
9.5
16.0
Current liabilities
Trade and other payables
(7.9)
(51.7)
(59.6)
Provisions for liabilities
(2.0)
(4.3)
(6.3)
Lease liabilities
(0.6)
(0.8)
(1.4)
Non-current liabilities
Retirement benefit obligations
-
(0.1)
(0.1)
Lease liabilities
(1.2)
(2.9)
(4.1)
Deferred tax liabilities
(7.0)
(3.0)
(10.0)
Total identifiable assets
39.2
27.2
66.4
Non-controlling interest arising on acquisition
(0.2)
(7.5)
(7.7)
Goodwill
47.9
120.3
168.2
Total consideration
86.9
140.0
226.9
Satisfied by:
Cash (net of cash acquired)
86.9
132.7
219.6
Deferred contingent consideration
-
7.3
7.3
Total consideration
86.9
140.0
226.9
23
Business Combinations (continued)
*Included in Other are certain immaterial remeasurements of prior year accounting estimates as a result of the finalisation of the
assignment of fair values to identifiable net assets.
The acquired goodwill is attributable principally to the profit generating potential of the businesses, together with cross-
selling opportunities and other synergies expected to be achieved from integrating the acquired businesses into the Group’s
existing business.
In the post-acquisition period to 31 December 2023, the businesses acquired during the year contributed revenue of €110.6m and
trading profit of €12.8m to the Group’s results.
The full year revenue and trading profit had the acquisitions taken place at the start of the year, would have been €8,198.5m and
€889.6m respectively.
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to €19.2m. The fair
value of these receivables is €16.0m, all of which is recoverable, and is inclusive of an aggregate impairment provision of €3.2m.
There was €nil of goodwill expected to be deductible for tax purposes.
24
Share Capital
2024
€m
2023
€m
Authorised
250,000,000 Ordinary shares of €0.13 each (2023: 250,000,000 Ordinary shares of €0.13 each)
32.5
32.5
Issued and fully paid
Ordinary shares of €0.13 each
Opening balance – 183,591,682 (2023: 183,591,682) shares
23.9
23.9
Shares allotted– 1,004,960 (2023: nil) shares
0.1
-
Closing balance – 184,596,642 (2023: 183,591,682) shares
24.0
23.9
1,004,960 new ordinary shares (2023: nil) were issued as partial consideration for the acquisition of a majority shareholding in
Steico SE (Note 23).
25
Share Premium
2024
€m
2023
€m
At 1 January
129.3
112.4
Shares issued
62.7
-
Re-issued treasury shares
23.9
16.9
At 31 December
215.9
129.3
1,004,960 new ordinary shares (2023: nil) were issued at a premium as partial consideration for the acquisition of a majority
shareholding in Steico SE (Note 23).
During the year, the Company issued treasury shares in satisfaction of obligations falling under share schemes. The treasury shares
were issued for consideration exceeding their carrying value and the difference has been accounted for as share premium.
314
Kingspan Group plc
Annual Report & Financial Statements 2024
315
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
26
Treasury Shares
Consideration paid
2024
2023
No. of
shares
Consideration
paid
€
Total
€m
No. of shares
Consideration
paid
€
Total
€m
At 1 January
1,668,148
33.48
55.8
1,982,473
28.74
56.9
Repurchase of shares
1,515,689
88.80
134.6
13,547
57.68
0.7
Shares issued
(386,678)
9.30
(3.6)
(327,872)
5.67
(1.8)
At 31 December
2,797,159
66.80
186.8
1,668,148
33.48
55.8
Nominal value
2024
2023
No. of
shares
Nominal
value
€
Total
€
No. of shares
Nominal
value
€
Total
€
At 1 January
1,668,148
0.13
216,859
1,982,473
0.13
257,721
Repurchase of shares
1,515,689
0.13
197,040
13,547
0.13
1,761
Shares issued
(386,678)
0.13
(50,268)
(327,872)
0.13
(42,623)
At 31 December
2,797,159
0.13
363,631
1,668,148
0.13
216,859
The Company repurchased 1,515,689 shares during the year (2023: 13,547).
During the year, the Company issued 386,678 (2023: 327,872) shares in satisfaction of obligations falling under share schemes.
The Company holds 1.5% (2023: 0.9%) of the issued ordinary share capital as treasury shares.
27
Retained Earnings
In accordance with Section 304 of the Companies Act 2014, the Company is availing of the exemption from presenting its
individual Income Statement to the Annual General Meeting and from filing it with the Registrar of Companies. The Company’s
profit for the financial year was €194.6m (2023: €1,000.1m).
28
Dividends
2024
€m
2023
€m
Equity dividends on ordinary shares:
2024 Interim dividend 26.3 cent (2023: 26.3 cent) per share
47.8
47.9
2023 Final dividend 26.6 cent (2022: 23.8 cent) per share
48.8
43.3
96.6
91.2
Proposed for approval at AGM
Final dividend of 28.5 cent (2023: 26.6 cent) per share
51.8
48.4
The proposed final dividend for 2024 is subject to approval by the shareholders at the Annual General Meeting and has not been
included as a liability in the Consolidated Statement of Financial Position of the Group as at 31 December 2024 in accordance with
IAS 10 Events after the Reporting Period. The proposed final dividend for the year ended 31 December 2024 will be payable on 21
May 2025 to shareholders on the Register of Members at close of business on 11 April 2025.
29
Non-Controlling Interest
2024
€m
2023
€m
At 1 January
99.8
75.8
Profit for the year attributable to non-controlling interest
25.3
13.6
Arising on acquisition (Note 23)
264.8
7.7
Purchase of non-controlling interest
(88.2)
-
Increase in non-controlling interest
8.4
1.4
Dividends paid to minorities
(1.0)
(0.9)
Share of foreign operations’ translation movement
(10.8)
2.2
At 31 December
298.3
99.8
During the year, the Group acquired an additional shareholding in Nordic Waterproofing and as a result held a 87.37%
shareholding at 31 December 2024.
30
Reconciliation Of Net Cash Flow To Movement In Net Debt
2024
€m
2023
€m
Movement in cash and bank overdrafts
38.1
287.6
Drawdown of loans
(899.7)
(319.0)
Repayment of loans and borrowings
246.2
582.0
Change in net debt resulting from cash flows
(615.4)
550.6
Translation movement - relating to US dollar loan
(11.2)
6.5
Translation movement – other
28.5
3.0
Derivative financial instruments movement
4.6
-
Net movement
(593.5)
560.1
Net debt at start of the year
(979.5)
(1,539.6)
Net debt at end of the year
(1,573.0)
(979.5)
Lease liabilities of €238.6m (2023: €219.8m) are excluded from net debt.
A reconciliation of liabilities/(assets) arising from financing activities in 2024 is set out below.
Balance
1 Jan 2024
€m
Repayments
€m
Drawdowns /
Receipts
€m
Non cash
movements
€m
Balance
31 Dec 2024
€m
Bank loans and borrowings
326.3
(53.2)
149.7
0.1
422.9
Loan notes
1,591.9
(193.0)
-
11.2
1,410.1
Public debt
-
-
750.0
-
750.0
Derivatives
-
-
-
(4.6)
(4.6)
1,918.2
(246.2)
899.7
6.7
2,578.4
A reconciliation of liabilities arising from financing activities in 2023 is set out below.
Balance
1 Jan 2023
€m
Repayments
€m
Drawdowns /
Receipts
€m
Non cash
movements
€m
Balance
31 Dec 2023
€m
Bank loans and borrowings
866.9
(539.5)
-
(1.1)
326.3
Loan notes
1,322.0
(42.5)
319.0
(6.6)
1,591.9
2,188.9
(582.0)
319.0
(7.7)
1,918.2
316
Kingspan Group plc
Annual Report & Financial Statements 2024
317
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
31
Guarantees And Other Financial Commitments
(i) Guarantees and contingencies
The Group’s principal debt facilities are secured by means of cross guarantees provided by Kingspan Group plc. These include
drawn private placement notes of US$200m (2023:US$200m) and €1,218m (2023: €1,411m), public bond of €750m (2023: €nil),
an undrawn bank facility of €800m (2023: €800m) and one (2023: one) additional banking finance facility with an aggregated
value of €150m (2023: €300m).
Kingspan Group plc has guaranteed the relevant debts of certain Dutch and German subsidiaries in accordance with Article 403,
Book 2 of the Dutch Civil Code and Section 264 of the German Commercial Code (HGB) respectively. The respective entities
(noted in Principal Subsidiaries and Substantial Undertakings) have therefore availed of the exemption from preparing and filing
audited financial statements and management reports in the Netherlands and Germany.
(ii) Future capital expenditure
Capital expenditure in subsidiary entities, approved by the directors but not provided in the financial statements, is as follows:
2024
€m
2023
€m
Contracted for
96.6
93.1
Not contracted for
151.2
74.1
247.8
167.2
32
Pension Obligations
The Group operates defined contribution schemes in each of its main operating locations. The Group also has a number of defined
benefit schemes in the UK and mainland Europe.
Defined contribution schemes
The total cost charged to profit or loss of €43.6m (2023: €37.8m) represents employer contributions payable to these schemes
in accordance with the rules of each plan. An amount of €5.9m (2023: €5.7m) was included at year end in accruals in respect of
defined contribution pension accruals.
Defined benefit schemes / obligations
The Group has three defined benefit schemes in the UK, all of which are closed to new members and to future accrual. The total
pension contributions to these schemes for the year amounted to €nil (2023: €0.8m) and the expected contributions for 2025
are €nil. On 6 December 2022, the Group executed a €150.8m bulk insurance annuity insurance policy ‘buy in’ for the Colt Life
Assurance and Retirement Scheme (CLARS). This buy in ensures that an insurance asset fully matches the remaining pension
liability. Therefore for this particular scheme the Group is no longer exposed to the pension risks outlined below. The Group cash-
settled the pension buy in arrangement during 2023 for €15.9m.
The Group also has pension obligations in mainland Europe which are accounted for as defined benefit obligations. These
obligations have been accounted for in line with the Group’s existing pension obligations whereby companies are not required to
fund independent schemes for post employment benefit obligations. Instead, commencing from the date the employee becomes
eligible to receive the income stream, this obligation is satisfied from available cash resources of the relevant employing company.
A provision has been made for the unfunded liability. €2.8m of pension entitlements have been paid to retired former employees
during the year (2023: €2.5m).
The pension costs relating to all of the above defined benefit obligations are assessed in accordance with the advice of qualified
actuaries. In the case of the three UK legacy schemes, the most recent actuarial valuations were performed as of 31 December
2024. In general, actuarial valuations are not available for public inspection however, the results of valuations are advised to
members of the various schemes.
32
Pension Obligations (continued)
The UK and European defined benefit schemes expose the Group to the following risks:
Interest Rate Risk: The discount rates employed in determining the present value of the Group’s defined benefit liabilities are
set with reference to corporate bond yields. A decrease in corporate bond yields would increase the schemes’ defined benefit
obligation. Such movements in bond yields would result in volatility in the Group’s Consolidated Financial Statements.
Inflation Risk: A significant proportion of the Group’s defined benefit obligation is linked to inflation therefore higher inflation
will result in a higher defined benefit obligation (subject to the appropriate caps in place to protect the schemes against
extreme inflation). This is expected to be offset to an extent by an increase in the value of the Group’s holdings in liability driven
investments (LDI) type plan assets.
Longevity Risk: The present value of the Group’s defined benefit obligation is calculated with reference to the mortality of scheme
members, both during and after employment. If scheme members live longer than expected, the scheme’s benefits will need to be
paid for longer, increasing the scheme’s defined benefit obligation.
The directors note that the Group’s UK defined benefit schemes are also exposed to the following significant risk:
Asset Volatility: The Group’s defined benefit obligations are calculated using discount rates set with reference to corporate bond
yields. The schemes’ assets comprise of equities, bonds, property and LDI, all of which may fluctuate significantly in value. These
assets are expected to outperform corporate bonds in the long-term, but provide volatility and risk in the short-term.
The extent of the Group’s obligation under these schemes is sensitive to judgemental actuarial assumptions, of which the principal
ones are set out below. It is not considered that any reasonable sensitivity analysis on these assumptions would materially alter
the scheme obligations.
2024
2023
Funded
Schemes
Un-funded
Schemes
Funded
Schemes
Un-funded
Schemes
Life expectancies
Life expectancy for someone aged 65 - Males
21.5
20.7
21.6
21.1
Life expectancy for someone aged 65 - Females
24.0
23.6
24.1
25.4
Life expectancy at age 65 for someone aged 45 - Males
22.9
21.5
22.9
23.6
Life expectancy at age 65 for someone aged 45 - Females
25.5
23.4
25.6
28.1
Rate of increase in salaries
-
2% - 4%
-
2.50% -3.20%
Rate of increase of pensions in payment
0% - 3.03%
2% - 2.5%
0% - 3.05% 1.50% - 2.50%
Rate of increase for deferred pensioners
2.75% - 3.95%
- 2.20% - 2.55%
-
Discount rate
5.50%
2.5% - 5.6%
4.50% 3.17% - 4.59%
Inflation rate
3.35%
1.8% - 2.6%
3.20% 1.75% - 3.20%
It is noted that the ‘Funded Schemes’ relate to the wholly and partly funded UK schemes and 5 partially funded immaterial
European schemes. The ‘Un-funded Schemes’ covers all other European defined benefit schemes.
The table below gives an indication of the impact of a change in the principal actuarial assumptions on the funded defined
benefit scheme liabilities.
318
Kingspan Group plc
Annual Report & Financial Statements 2024
319
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
32
Pension Obligations (continued)
Assumption
Change in
assumption
Impact on plan liabilities
2024
2023
Funded Schemes
Discount rate
Increase/decrease by
0.5%
Decrease by 6% /
increase by 6%
Decrease by 6% /
increase by 7%
Un-Funded Schemes
Discount rate
Increase by 0.25%
Decrease by 3%
Decrease by 3%
Funded Schemes
Inflation rate
Increase/decrease by
0.5%
Increase by 3% /
decrease by 3%
Increase by 4% /
decrease by 4%
Un-Funded Schemes
Inflation rate
Increase by 0.25%
Increase by 1%
Increase by 2%
Funded Schemes
Mortality assumptions
Increase by 1 year
Increase by 3%
Increase by 3%
Un-Funded Schemes
Mortality assumptions
Increase by 1 year
Increase by 3%-7%
Increase by 3%-6%
The sensitivity analyses above have been determined on a method that extrapolates the impact on the defined benefit obligation
as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are
based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analyses may not be
representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in
isolation from one another.
Movements in net liability recognised in the Consolidated Statement of Financial Position
2024
€m
2023
€m
Net liability in schemes at 1 January
(37.0)
(49.5)
Acquisitions through business combinations (Note 23)
(4.0)
(0.1)
Employer contributions
2.6
3.4
Defined benefit pension scheme buy in settlement
-
15.9
Recognised in consolidated income statement
(2.5)
(2.1)
Recognised in consolidated statement of comprehensive income
3.4
(5.0)
Foreign exchange movement
-
0.4
Net liability in schemes at 31 December
(37.5)
(37.0)
Defined benefit pension income/(expense) recognised in the Consolidated Income Statement
2024
€m
2023
€m
Current service cost
(1.3)
(0.9)
Other expenses
(0.2)
(0.5)
Settlements of scheme obligations
0.3
0.5
Total, included in operating costs
(1.2)
(0.9)
Movement on scheme obligations
(9.1)
(8.9)
Interest on scheme assets
7.8
7.7
Net interest expense, included in finance expense (Note 4)
(1.3)
(1.2)
32
Pension Obligations (continued)
Analysis of amount included in other comprehensive income
2024
€m
2023
€m
Actual return less interest on scheme assets
(14.2)
6.5
Experience gain/(loss) arising on scheme liabilities
0.8
(4.9)
Actuarial gain arising from changes in demographic assumptions
11.0
2.0
Actuarial gain/(loss) arising from changes in financial assumptions
5.8
(8.6)
Gain/(loss) recognised in other comprehensive income
3.4
(5.0)
The cumulative actuarial loss recognised in other comprehensive income to date is €38.8m (2023: €42.2m).
In 2024, the actual return on plan assets was a loss of €11.6m (2023: gain of €8.9m).
Asset Classes and Expected Rate of Return
The assets in the scheme at each year end were as follows:
2024
2023
Asset Classes as % of Total Scheme Assets
Equities
9.5%
2.0%
Bonds (Corporates)
0.4%
0.4%
Bonds (Gilts)
6.4%
6.1%
Cash
2.0%
0.4%
Property
4.5%
4.3%
Liability Driven Investment
9.9%
18.1%
Insurance Policy net of Insurance Premium due
67.3%
68.7%
100%
100%
The net pension liability is analysed as follows:
2024
€m
2023
€m
Funded
Schemes
Un-funded
Schemes
Funded
Schemes
Un-funded
Schemes
Equities
15.0
-
3.5
-
Bonds (Corporates)
0.7
-
0.7
-
Bonds (Gilts)
10.2
-
10.4
-
Cash
3.2
-
0.6
-
Property
7.1
-
7.4
-
Liability Driven Investment
15.6
-
30.8
-
Insurance Policy net of Insurance Premium due
106.7
-
116.8
-
Fair market value of plan assets
158.5
-
170.2
-
Present value of obligation
(154.5)
(41.5)
(169.8)
(37.4)
Surplus/(deficit)
4.0
(41.5)
0.4
(37.4)
320
Kingspan Group plc
Annual Report & Financial Statements 2024
321
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
32
Pension Obligations (continued)
2024
€m
2023
€m
Analysed between:
Funded schemes’ surplus
4.3
1.0
Unfunded obligations
(41.8)
(38.0)
(37.5)
(37.0)
Related deferred tax asset
5.9
5.5
2024
€m
2023
€m
Changes in present value of defined benefit obligations
At 1 January
207.2
195.1
Acquired through business combinations (Note 23)
4.0
0.1
Current service cost
1.3
0.9
Other expenses
(0.2)
-
Interest cost
9.1
8.9
Benefits paid
(15.1)
(11.6)
Settlement
(0.5)
(0.5)
Actuarial (gains)/losses
(17.6)
11.5
Effect of movement in exchange rates
7.8
2.8
At 31 December
196.0
207.2
2024
€m
2023
€m
Changes in present value of scheme assets during year
At 1 January
170.2
145.6
Interest on scheme assets
7.8
7.7
Employer contributions
0.1
0.9
Defined benefit pension scheme buy in settlement
-
15.9
Benefits paid
(12.5)
(9.1)
Settlement
(0.2)
-
Other expenses
(0.5)
(0.5)
Actual return less interest
(14.2)
6.5
Effect of movement in exchange rates
7.8
3.2
At 31 December
158.5
170.2
The weighted average duration of the defined benefit obligation at 31 December 2024 was 10.5 years (2023: 13.0 years).
33
Related Party Transactions
The principal related party relationships requiring disclosure under IAS 24 Related Party Disclosures relate to (i) transactions
between group companies, (ii) compensation of key management personnel and (iii) goods and services purchased
from directors.
(i) Transactions between subsidiaries are carried out on an arm’s length basis.
The Company received €195m dividends from subsidiaries (2023: €1,000m), and there was a net decrease in the intercompany
balance of €147.6m (2023: €61.2m increase).
33
Related Party Transactions (continued)
Transactions with the Group’s non-wholly owned subsidiaries primarily comprise trading sales and capital funding, carried out on
an arm’s length basis. These transactions are not considered to be material.
(ii) For the purposes of the disclosure requirements of IAS 24 Related Party Disclosures, the term “key management personnel”
(i.e. those persons having the authority and responsibility for planning, directing and controlling the activities of the
Company), comprise the board of directors (executive and non-executive directors) who manage the business and affairs
of the Company. As identified in the Report of the Remuneration Committee, the directors, other than the non-executive
directors, serve as executive officers of the Group.
Key management personnel compensation is set out in Note 6. Dividends of €1.0m were paid to other key management personnel
(2023: €0.9m). €nil (2023: €nil) was outstanding at year end.
(iii) During the financial year, there were no disclosable goods and services purchased from directors (2023: €nil).
34 Contingent Liabilities
European Commission Proceedings
In March 2021, the Group notified the European Commission (EC) of its plan to acquire Trimo, architekturne rešitve, d.o.o.
(“Trimo”). In April 2021, the EC began an in-depth review of the transaction under the EU Merger Regulation (“EUMR”). After an
extensive process, the EC issued a Statement of Objections in March 2022, suggesting the acquisition could impact competition in
certain EU building materials markets. The transaction was abandoned in April 2022.
In November 2022, the EC opened an investigation to determine whether Kingspan supplied incorrect or misleading information
during the EUMR proceedings. The Group received a Statement of Objections from the EC on 19 March 2024, alleging that, as a
preliminary view, the Group supplied incorrect or misleading information during the EUMR proceedings related to the abandoned
Trimo acquisition. The Group has stated publicly that it disagrees with the EC’s preliminary views and that it fully cooperated with
the EC.
The Group filed a comprehensive rebuttal response to the EC’s Statement of Objections in August 2024 and subsequently
attended an oral hearing with the EC on the matter in November 2024. Since the oral hearing, the EC has requested additional
information from the Group to further consider the case and this process remains ongoing. There is no legal deadline for the EC to
complete their proceedings.
While the EC can impose fines up to 1% of consolidated turnover for an Article 14(1) EUMR breach, there are few precedent cases,
making it uncertain what the outcome or potential fine might be. The Group has not recognised a provision for a potential fine on
the basis that a present obligation does not exist. Moreover, any potential fine cannot be measured with sufficient reliability and
it would not be practical to do so.
A final decision from the EC is expected later in 2025, and the Group will have the right to appeal the decision via the European
judicial system. In order to appeal, the Group may be required to provisionally pay any fine, or provide a bank guarantee in that
amount. The outcome of the EC’s final decision, or any subsequent appeal by the Group of an adverse finding by the EC, cannot
be guaranteed.
Grenfell Tower Inquiry
In 2017, a subsidiary of the Group became a core participant of the Grenfell Tower Inquiry (the “Inquiry”), which was established
to examine the circumstances leading up to and surrounding the fire at Grenfell Tower in London, United Kingdom on 14 June
2017. While the Group’s subsidiary had no role in the design of the cladding system on Grenfell Tower, the Group’s K15 product
(constituting approximately 5% of the insulation on the tower) was misused without the Group’s knowledge in an unsafe and non-
compliant cladding system on the exterior of the building.
The Inquiry published its Phase 2 report on 4 September 2024 (the “Phase 2 Report”), which found that the primary cause of the
spread of the fire was the PE ACM cladding panels, which were not manufactured by the Group. Although not found by the Inquiry
to be causative of the tragedy, the Group has acknowledged certain historical failings that occurred in part of the business of the
relevant subsidiary, which the Group has since comprehensively addressed. There can be no assurance that the findings of the
Inquiry, negative press or industry sentiment following the Inquiry, will not negatively impact the Group or lead to the Group being
the subject of additional investigations, litigation, regulatory responses or other legal proceedings. The Group has not recognised
a provision for any liabilities that may arise on the basis that a present obligation does not exist. Any potential liabilities cannot be
measured with sufficient reliability, and it would not be practicable to do so.
322
Kingspan Group plc
Annual Report & Financial Statements 2024
323
Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2024
35
Events Subsequent To Year End
During 2024, the Group increased its shareholding in Nordic Waterproofing Holding AB (“NWG”) from 30.95% to 87.37% through
a series of market transactions. NWG is a leader in the waterproofing market in Northern Europe and is publicly listed on Nasdaq
Stockholm, Mid Cap.
On 4 February 2025, the Group announced a public offer for all shares in NWG at a price of SEK 182.50 in cash per share (“the
Offer”). The total value of the Offer, based on the 3,041,052 shares in NWG which are not owned by the Group, amounts to
approximately SEK 555 million. The Board of Directors of NWG have unanimously recommended that the shareholders of NWG
accept the Offer.
The acceptance period for the Offer commenced on 6 February 2025 and expires on 6 March 2025. Settlement of the Offer is
expected to commence on or about 13 March 2025 and will be financed from the Group’s existing cash and/or credit facilities.
NWG has a well-established reputation in the market, a proud heritage of innovation, and a strong brand in the manufacture of
high-quality waterproofing solutions across Sweden, Denmark, and other countries. This makes NWG a good fit for Kingspan’s
portfolio and aligns it with the Group’s strategic objectives.
There have been no other material events subsequent to 31 December 2024 which would require adjustment to, or disclosure in
this report.
36
Approval Of Financial Statements
The financial statements were approved by the directors on 25 February 2025.
ALTERNATIVE PERFORMANCE MEASURES
The Group uses a number of metrics, which are non-IFRS measures, to monitor the performance of its operations.
The Group believes that these metrics assist investors in evaluating the performance of the underlying business. Given that
these metrics are regularly used by management, they also give the investor an insight into how Group management review and
monitor the business on an ongoing basis.
The principal APMs used by the Group are defined as follows:
Trading profit
This comprises the operating profit as reported in the Consolidated Income Statement before intangible asset amortisation and
non trading items. This equates to the Earnings Before Interest, Tax and Amortisation (EBITA) of the Group. Trading profit is used
by management as it excludes items which may hinder year on year comparisons.
2024
2023
Financial Statements Reference
€m
€m
Trading profit
Consolidated Income Statement
906.7
876.9
Trading margin
Measures the trading profit as a percentage of revenue.
2024
2023
Financial Statements Reference
€m
€m
Trading profit
Consolidated Income Statement
906.7
876.9
Revenue
Consolidated Income Statement
8,608.0
8,090.6
Trading margin
10.5%
10.8%
EBITDA
The Group defines EBITDA as earnings before finance expenses, income taxes, depreciation, amortisation and non trading item.
2024
2023
Financial Statements Reference
€m
€m
Trading profit
Consolidated Income Statement
906.7
876.9
Share of associates’ profit after tax
Consolidated Income Statement
1.7
-
Depreciation
Consolidated Statement of Cash Flows
231.9
190.9
EBITDA
1,140.3
1,067.8
Free cash flow
Free cash flow is the cash generated from operations after net capital expenditure, interest paid, income taxes paid and lease
payments and reflects the amount of internally generated capital available for re-investment in the business or for distribution to
shareholders.
2024
2023
Financial Statements Reference
€m
€m
Net cash flow from operating activities
Consolidated Statement of Cash Flows
894.5
1,162.2
Additions to property, plant and equipment
Consolidated Statement of Cash Flows
(366.3)
(234.2)
Additions to intangible assets
Consolidated Statement of Cash Flows
(0.4)
(3.5)
Proceeds from disposals of property, plant and
equipment
Consolidated Statement of Cash Flows
32.9
4.2
Finance income received
Consolidated Statement of Cash Flows
17.4
22.6
Lease payments
Consolidated Statement of Cash Flows
(68.7)
(60.5)
Free cash flow
509.4
890.8
325
Financial Statements
324
Kingspan Group plc
Annual Report & Financial Statements 2024
ALTERNATIVE PERFORMANCE MEASURES (continued)
Return on capital employed (ROCE)
During the year, the Group redefined ROCE as trading profit plus share of associate’s profit after tax as a percentage of net assets
employed at the end of each reporting period, which excludes net debt and adjusts for cumulative amortisation of intangibles not
fully amortised. This enhances comparability with peers, and ensures consistency between internal and external reporting. Prior
period figures have been restated accordingly.
2024
2023
Financial Statements Reference
€m
€m
Net assets
Consolidated Statement of Financial
Position
4,590.8
3,947.8
Add back accumulated amortisation of intangible
assets not fully amortised
139.2
130.9
Net debt
Note 18
1,573.0
979.5
6,303.0
5,058.2
Trading profit
Consolidated Income Statement
906.7
876.9
Share of associates’ profit after tax
Consolidated Income Statement
1.7
-
908.4
876.9
Return on capital employed
14.4%
17.3%
Banking Covenants
The Net debt: EBITDA and the EBITDA: Net Interest ratios disclosed in this report are calculated in accordance with the terms and
conditions of the covenants as set out in the Group’s external borrowing arrangements. Therefore, EBITDA and Net Interest are
adjusted to exclude the impact of IFRS 16 Leases for these calculations.
Net debt
Net debt represents the net total of current and non-current borrowings, current and non-current derivative financial instruments,
(excluding foreign currency derivatives which are used for transactional hedging), and cash and cash equivalents as presented in
the Consolidated Statement of Financial Position. Lease liabilities recognised due to the implementation of IFRS 16 and deferred
contingent consideration have also been excluded from the calculation of net debt. Consistent with the 2023 APMs, this definition
is in accordance with the terms and conditions of the covenants as set out in the Group’s external borrowing arrangements.
2024
2023
Financial Statements Reference
€m
€m
Net debt
Note 18
1,573.0
979.5
Net debt : EBITDA
Net debt as a ratio to 12 month EBITDA. For the purpose of this calculation, EBITDA is solely adjusted for the impact of IFRS
16 Leases.
2024
2023
Financial Statements Reference
€m
€m
EBITDA
1,140.3
1,067.8
Lease liability payments
Consolidated Statement of Cash Flows
(68.7)
(60.5)
EBITDA (adjusted for the impact of IFRS 16)
1,071.6
1,007.3
2024
2023
Financial Statements Reference
€m
€m
Net debt
Note 18
1,573.0
979.5
EBITDA (adjusted for the impact of IFRS 16)
1,071.6
1,007.3
Net debt: EBITDA times
1.47
0.97
ALTERNATIVE PERFORMANCE MEASURES (continued)
Net interest
The Group defines net interest as the Group’s interest expense on borrowings net of bank interest receivable. The impact of IFRS
16 Leases is excluded from the calculation which is consistent with the terms and conditions of the covenants as set out in the
Group’s external borrowing arrangements.
2024
2023
Financial Statements Reference
€m
€m
Bank loan interest
Note 4
21.6
24.9
Private placement loan note interest
Note 4
37.3
31.6
Bank interest earned
Note 4
(15.6)
(19.2)
Net Interest
43.3
37.3
Working capital
Working capital represents the net total of inventories, trade and other receivables and trade and other payables, net of
transactional foreign currency derivatives excluded from net debt.
2024
2023
Financial Statements Reference
€m
€m
Trade and other receivables
Note 15
1,390.2
1,254.2
Inventories
Note 14
1,197.1
964.3
Trade and other payables
Note 16
(1,560.2)
(1,346.1)
Foreign currency derivatives excluded from net debt
Note 20
0.1
(0.2)
Working capital
1,027.2
872.2
Working capital ratio
Measures working capital as a percentage of October to December turnover annualised. The annualisation of turnover reflects the
current profile of the Group rather than a partial reflection of any acquisitions completed during the period.
2024
2023
Financial Statements Reference
€m
€m
Working capital
1,027.2
872.2
October - December turnover annualised
8,986.2
7,752.8
Working capital ratio
11.4%
11.3%
Total shareholder return (TSR)
Total shareholder return (TSR) is a key performance metric for the Performance Share Plan (PSP).
The methodology for calculating the total shareholder return assumes the following: the open price is set as the closing price
of the final trading day prior to the beginning of the performance period; the close price is set as the closing price on the final
trading day of the performance period; the calculation assumes all dividends are reinvested on the ex-dividend date, at the closing
price on that day.
2024
2023
Financial Statements Reference
%
%
Total Shareholder Return
Page 55
(9.5)
56.2
326
Kingspan Group plc
Annual Report & Financial Statements 2024
327
Financial Statements
PRINCIPAL SUBSIDIARIES AND SUBSTANTIAL UNDERTAKINGS
PRINCIPAL SUBSIDIARIES AND SUBSTANTIAL UNDERTAKINGS (continued)
%
Shareholding
Nature of
Business
MEXICO
Kingspan Insulated Panels SA DE CV
100
Manufacturing
NETHERLANDS
Derbigum Nederland B.V.
100
Sales & Marketing
Joris Ide Nederland B.V.
100
Manufacturing
Kingspan B.V.
100
Sales & Marketing
Kingspan Holding Netherlands B.V.
100
Holding Company
Kingspan Insulation B.V.
100
Manufacturing
Kingspan Light + Air Netherlands B.V.
100
Manufacturing
Kingspan Unidek B.V.
100
Manufacturing
LOGSTOR Nederland B.V.
100
Sales & Marketing
NEW ZEALAND
Kingspan Insulation NZ Limited
100
Manufacturing
NORWAY
Nordic Waterproofing AS
87.37
Sales &
Distribution
PHILIPPINES
OFIC Philippines Inc.
100
Sales & Marketing
POLAND
Balex Metal Sp. Z o.o.
100
Manufacturing
Corotop SA
100
Manufacturing
Kingspan Sp. Z o.o.
100
Manufacturing
LOGSTOR International Sp. Z.o.o
100
Holding Company
STEICO Sp. Z o.o
51
Manufacturing
ROMANIA
Terasteel SA
99
Manufacturing
Wetterbest SA
100
Manufacturing
SPAIN
Huurre Iberica SA
100
Manufacturing
Kingspan Insulation SAU
100
Manufacturing
Synthesia Technology Europe SLU
100
Manufacturing
Teczone Española SA
100
Manufacturing
THU Perfil SLU
100
Manufacturing
%
Shareholding
Nature of
Business
SWEDEN
Kingspan AB
100
Sales & Marketing
Kingspan Insulation AB
100
Manufacturing
Nordic Waterproofing AB
87.37
Manufacturing
Nordic Waterproofing Holding AB
87.37
Holding Company
Powerpipe Systems AB
100
Manufacturing
TURKEY
Kingspan Yapi Elemanlari A.S.
85
Manufacturing
Onduline Avrasya Insaat Malzemeleri
Sanayi Ve Ticaret A.S.
100
Manufacturing
UNITED ARAB EMIRATES
Kingspan Insulated Panels
Manufacturing LLC
85
Manufacturing
Kingspan Insulation LLC
100
Manufacturing
UNITED KINGDOM
Colt Group Limited
100
Holding Company
Colt International Limited
100
Sales & Marketing
Euroclad Group Limited
100
Manufacturing
Kingspan Group Limited
100
Holding Company
Kingspan Insulation Limited
100
Manufacturing
Kingspan Limited
100
Manufacturing
Kingspan Services (UK) Limited
100
Management &
Procurement
Kingspan Water & Energy Limited
100
Manufacturing
UNITED STATES
Kingspan Insulated Panels Inc.
100
Manufacturing
Kingspan Insulation LLC
100
Manufacturing
Kingspan Light & Air LLC
100
Manufacturing
Morin Corporation
100
Manufacturing
Pre-insulated Metal Technologies Inc.
100
Manufacturing
Tate Access Floors Inc.
100
Manufacturing
URUGUAY
Bromyros SA
51
Manufacturing
Pursuant to section 316 of the Companies Act 2014, a full list
of subsidiaries, joint ventures and substantial undertakings will
be annexed to the Company’s Annual Return to be filed in the
Companies Registration Office in Ireland.
%
Shareholding
Nature of
Business
AUSTRALIA
Kingspan Insulated Panels Pty Limited
100
Manufacturing
Kingspan Insulation Pty Limited
100
Manufacturing
Kingspan Water & Energy Pty Limited
85
Manufacturing
BELGIUM
Imperbel NV
100
Manufacturing
Joris Ide NV
100
Manufacturing
Kingspan Insulation NV
100
Manufacturing
BRAZIL
Kingspan-Isoeste Trading Importadora
E Exportadora Limitada
51
Sales & Marketing
Kingspan-Isoeste Construtivos
Isotérmicos SA
51
Manufacturing
CANADA
Kingspan Insulated Panels Limited
100
Manufacturing
Vicwest Inc.
100
Manufacturing
CZECH REPUBLIC
Kingspan AS
100
Manufacturing
DENMARK
Hetag Tagdækning Syd A/S
34.94
Installation
IFA Tagdaekning A/S
34.94
Installation
LOGSTOR Denmark Holding ApS
100
Manufacturing
Troldtekt A/S
100
Manufacturing
FINLAND
Kerabit Kattoelementit Oy
87.37
Manufacturing
Kingspan Oy
100
Sales & Marketing
FRANCE
B.A.C. Acier SAS
100
Manufacturing
Comptoir du Batiment et
de L’Industrie SAS
100
Manufacturing
Isocab France SASU
100
Manufacturing
Joris Ide Auvergne SASU
100
Manufacturing
Joris Ide Sud Ouest SASU
100
Manufacturing
Kingspan Light Air SASU
100
Sales & Marketing
Metal SASU
100
Manufacturing
Onduline France SASU
100
Manufacturing
Profinord SASU
100
Manufacturing
Skydôme SASU
100
Manufacturing
Societe Bretonne de Profilage SASU
100
Manufacturing
%
Shareholding
Nature of
Business
GERMANY
alwitra GmbH
100
Manufacturing
alwitra Holding (Germany) GmbH
100
Holding Company
CaPlast Kunststoffverarbeitungs
GmbH
100
Manufacturing
Colt International GmbH
100
Manufacturing
Joris Ide Deutschland GmbH
100
Manufacturing
Kingspan Access Floors GmbH
100
Manufacturing
Kingspan GmbH
100
Sales & Marketing
Kingspan Holding GmbH
100
Holding Company
Kingspan Insulation GmbH & Co. KG
100
Manufacturing
Kingspan Light + Air GmbH
100
Manufacturing
Kingspan Mineral Insulation GmbH
100
Manufacturing
Kingspan Services GmbH
100
Sales & Marketing
Kingspan STG GmbH
100
Manufacturing
LOGSTOR Deutschland GmbH
100
Sales & Marketing
STEICO SE
51
Manufacturing
HUNGARY
Kingspan Kereskedelmi Kft
100
Manufacturing
INDIA
Kingspan Jindal Private Limited
51
Manufacturing
INDONESIA
PT Onduline Indonesia
100
Manufacturing
IRELAND
Kingspan Holdings (Irl) Limited
100
Management &
Procurement
Kingspan Holdings (North
America) Limited
100
Holding Company
Kingspan Holdings (Overseas) Limited
100
Holding Company
Kingspan Holdings Limited
100
Holding Company
Kingspan Insulation Limited
100
Manufacturing
Kingspan International Finance
Unlimited Company
100
Finance Company
Kingspan Light & Air Limited
100
Manufacturing
Kingspan Limited
100
Manufacturing
Kingspan Nominees Limited
100
Holding Company
Kingspan Securities (Ireland) DAC
100
Finance Company
Kingspan Securities Limited
100
Finance Company
MALAYSIA
Onduline Building Materials
(M) SDN BHD
100
Manufacturing
328
Kingspan Group plc
Annual Report & Financial Statements 2024
329
Financial Statements
328
Kingspan Group plc
329
Financial Statements
SHAREHOLDER INFORMATION
CORPORATE INFORMATION
Stock exchange listing
The Company’s shares are listed on the main market of the
Euronext Dublin Stock Exchange.
Share Registrar
Computershare Investor Services (Ireland) Limited
(“Computershare”) maintains the Company’s register of
members. Should a shareholder have any queries in respect of their
shareholding, they should contact Computershare directly using
the contact details provided below:
The Company Registrar:
Computershare Investor Services (Ireland) Limited,
3100 Lake Drive,
Citywest Business Campus,
Dublin 24,
D24 AK82.
Telephone number +353 1 447 5103.
Dematerialisation
Under the EU Central Securities Depositories Regulation (EU)
909/2014 (CSDR), all securities of Irish issuers admitted to trading
or traded on trading venues in the European Economic Area are
now required to be represented in book-entry form, effective by
1 January 2025. Book-entry form refers to an electronic record
of ownership, eliminating the need for physical documents such
as share certificates. In line with CSDR, from 1 January 2023, all
new share issuances in the Company have been held in book-
entry form, and as of 1 January 2025, all remaining shares have
transitioned to this format. No action was required by shareholders
for this to take effect. Share certificates previously issued to
shareholders became invalid as a form of evidence of title to
shares as of 1 January 2025 and have been replaced by book-
entry balances maintained by our share registrar, Computershare
Investor Services (Ireland) Limited. Whilst paper certificates are
no longer valid, shareholdings are otherwise unchanged. For more
information, please visit the Dematerialisation section of our
website at www.kingspan.com/dematerialisation or contact the
Company’s Registrar, Computershare.
Amalgamation of Shareholding Accounts
Shareholders who receive duplicate sets of Company mailings due
to multiple accounts in their name should write to the Company’s
Registrar to have their accounts amalgamated.
Annual General Meeting
The Annual General Meeting (AGM) of the Company will be held on
Thursday, 1 May 2025 at 9.00 a.m.
Notice of the 2025 AGM will be made available to view online at
www.kingspan.com/agm2025.
Shareholders’ right to table draft resolutions and to put items
on the agenda
A shareholder or a group of shareholders holding 3% of the issued
share capital, representing at least 3% of the total voting rights
of all shareholders who have a right to vote at the meeting, have
a right to table a draft resolution for an item on the agenda of
the meeting subject to any contrary provisions in company law. In
the case of the 2025 Annual General Meeting, the latest date for
submission of such requests is 20 March 2025 (being 42 days prior
to the date of the meeting).
The request:
• may be in hard copy form or in electronic form;
• must set out in writing details of the draft resolution in full or,
if supporting a draft resolution sent by another shareholder,
clearly identify the draft resolution which is being supported;
• must be authenticated by the person or persons making it
(by identifying the shareholder or shareholders meeting the
qualification criteria and, if in hard copy, by being signed by the
shareholder or shareholders); and
• must be received by the Company not later than 42 days before
the meeting to which the request relates.
In addition to the above, the request must be made in accordance
with one of the following ways:
• a hard copy request which is signed by the shareholder(s),
states the full name and address of the shareholder(s) and
is sent to the Company Secretary, Kingspan Group plc, Head
Office, Dublin Road, Kingscourt, Co Cavan, Ireland; or
• a request which states the full name and address of the
Shareholder Reference Number (SRN), as printed on the
accompanying Form of Proxy of the shareholder(s) and is sent
to lorcan.dowd@kingspan.com.
A draft resolution must not be such as would be incapable of
being passed or otherwise be ineffective (whether by reason of
inconsistency with any enactment or the Company’s Memorandum
and Articles of Association or otherwise). Any draft resolution must
not be defamatory of any person.
Company Information
Kingspan Group plc was incorporated on 14 August 1979. It is an
Irish domiciled company and the registered office is Kingspan
Group plc, Dublin Road, Kingscourt, Co. Cavan, A82 XY31, Ireland.
The registered company number of Kingspan Group plc is 70576.
Financial Calendar
Preliminary Results
Trading Update
AGM
Half-Yearly Results
Trading Update
21 February 2025
30 April 2025
1 May 2025
8 August 2025
10 November 2025
Banks
Bank of America Merrill Lynch
ING Bank NV
Commerzbank
KBC Bank NV
Bank of Ireland
HSBC Bank plc
BNP Paribas
Danske Bank AS
NatWest Bank Plc
UniCredit Bank AG
Stockbrokers
Goodbody,
9-12 Dawson St,
Dublin 2,
D02 YX99,
Ireland.
Bank of America Merrill Lynch,
2 King Edward St,
Farringdon,
London,
EC1A 1HQ,
England.
Auditor
Ernst & Young,
Chartered Accountants,
EY Building,
Harcourt Centre,
Harcourt Street,
Dublin 2,
Ireland.
Solicitors
McCann FitzGerald,
Riverside One,
Sir John Rogerson’s Quay,
Dublin 2,
Ireland.
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Kingspan Group plc
Annual Report & Financial Statements 2024
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Financial Statements
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Kingspan Group plc
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Financial Statements
GROUP FIVE YEAR SUMMARY
Results (amounts in €m)
2024
2023
2022
2021
2020
Revenue
8,608.0
8,090.6
8,340.9
6,497.0
4,576.0
Trading profit
906.7
876.9
833.2
754.8
508.2
Net profit before tax
831.8
794.2
746.6
689.0
459.7
Operating cashflow
1,137.3
1,368.6
884.0
490.6
750.8
Equity (amounts in €m)
2024
2023
2022
2021
2020
Gross assets
9,819.5
8,001.6
7,681.4
6,387.9
5,341.6
Working capital
1,027.2
872.2
1,195.9
977.8
450.8
Total shareholder equity
4,590.8
3,947.8
3,395.5
2,959.3
2,397.6
Net debt
1,573.0
979.5
1,539.6
756.1
236.2
Ratios
2024
2023
2022
2021
2020
Net debt as % of total shareholders’ equity
34.3%
24.8%
45.3%
25.5%
9.9%
Current assets / current liabilities
1.60
1.65
1.78
1.80
2.21
Net debt / EBITDA
1.47
0.97
1.62
0.88
0.40
Per Ordinary Share (amounts in €cent)
2024
2023
2022
2021
2020
Earnings
365.2
352.3
329.5
305.6
206.2
Operating cashflows
624.1
752.9
487.1
270.5
414.3
Net assets
2,519.3
2,171.8
1,870.9
1,631.8
1,323.1
Dividends
54.8
52.9
49.4
45.9
20.6
Average number of employees
25,401
22,384
20,590
17,880
15,424
508.2
754.8
206.2
305.6
20.6
45.9
2021
2020
6,497.0
4,576.0
2022
8,340.9
833.2
329.5
49.4
2023
8,090.6
876.9
352.3
52.9
REVENUE (€M)
TRADING PROFIT (€M)
EPS (CENT)
DPS (CENT)
2024
8,608.0
906.7
365.2
54.8
2021
2020
2022
2023
2024
2021
2020
2022
2023
2024
2021
2020
2022
2023
2024
Environmental Credentials
Paper
»
Essential Velvet
»
Edixion Offset
Paper Credentials
»
Sustainably sourced from managed
wood fibre
»
Manufactured in accordance with ISO
certified standards for environmental,
quality and energy management
»
Carbon balanced
»
Recyclable and biodegradable
Print Credentials
»
98% vegetable based inks
»
The bioglaze laminate used on this
cover can be recycled along with paper,
as it is an acetate polymer made from
wood pulp and cotton
Aligned with our Planet Passionate
strategy, we are committed to
producing an environmentally
conscious Annual Report. To reduce our
environmental impact, this report is
printed on sustainably sourced, carbon-
balanced paper.
design: reddog.ie
1 Assumes 60 year product life; based on an EU airline disclosure of
over 15.4m tonnes of CO2e emissions for 12 months to March 2024
2 Assumes a 20 year product life
3 Equivalent number of PET bottles by weight
4 Assumes 10 x 60W bulbs per home
Our daylighting systems sold in
2024 create 3.8 billion lumens of
natural light annually
Enough to light
up 470k homes4
In 2024 alone, we recycled
1.1 billion waste plastic bottles³
Enough recycled bottles
to circle the Earth over
five times
Over 44.1 billion litres of
rainwater will be harvested by
our systems produced in 2024²
Enough water to fill over
550m baths
172 million tonnes of CO2e will
be saved over the life of our
insulation systems sold in 2024
Enough to power a major
airline for over 11 years1
NATURAL
DAYLIGHT
3.8bn
ULTRA ENERGY
EFFICIENT
172m
CONSERVED
WATER
44.1bn
RECYCLED
MATERIAL
1.1bn
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Dublin Road, Kingscourt
Co. Cavan, Ireland, A82 XY31
Tel: +353 42 969 8000
Email: admin@kingspan.com
www.kingspan.com