Advancing
circularity
together
Renewi plc
Annual Report and Accounts 2024
Advancing circularity together
Strategic report
2
Group overview
4
Business model in a
circular economy
6
Case studies
11
Market, trends and competitors
14
Our customers
16
Investment case
18
Chairman’s statement
20
CEO’s statement
23
Vision and strategy
34
Our alignment to the UN SDGs
36
Being a circular economy
change maker
40
Reducing our carbon emissions
44
Caring for our people
and ecosystems
50
Ratings and Frameworks
52
KPIs
54
CFO’s statement
60
Operating review
66
Risk management
90
Section 172(1) statement
91
Non-Financial and Sustainability
Information Statement
Our work with
Schiphol Airport
over 2023 has
allowed us to help
them reduce their
waste and help
meet their
sustainability
targets.
Find out more about us and the work we
are doing to create a zero waste world by
visiting our website at www.renewi.com
Our subsidiary Maltha transforms over
a million tonnes of glass waste into
high-quality secondary raw materials.
Our purpose
To protect the world by giving
new life to used materials.
Our vision
To be the leading waste-to-
product company in Europe’s
most advanced circular
economies, contributing to
a sustainable society for all
our stakeholders: customers,
suppliers, local communities,
employees, regulators,
governments, investors
and lenders.
Governance report
94
Board of Directors
96
Executive Leadership Team
98
Governance at a glance
99
Corporate Governance Report
117
Safety, Health and Environment
Committee Report
119
Audit Committee Report
125
Nomination Committee Report
128
Directors’ Remuneration Report
148
Other disclosures
151
Directors’ Responsibilities
Statement
10
Maltha’s operations
6
Working towards waste-free with Schiphol Airport
Contents and introduction
Unless otherwise stated, all financial
results throughout this report are shown
without UK Municipal, as these activities
are classified as “Asset Held for Sale”.
Non-financial metrics are shown
including UK Municipal.
Renewi plc Annual Report and Accounts 2024
FY24 highlights
Financial highlights
Revenue from continuing operations*
€1,689.2m
FY23: €1,703.9m
Underlying EBIT from continuing operations*
€105.5m
FY23: €131.7m
Result for the year**
€30.9m loss
FY23: €66.6m profit
Leverage ratio
2.14x
FY23: 1.83x
Non-financial highlights
Recycling rate
63.2%
FY23: 63.7%
Carbon avoidance per tonne
237kg CO2e/T
FY23: 232 kg/T
Scope 1 & 2 carbon footprint
577kT CO2e
FY23: 604kT
*
Following the decision to show the UK Municipal business as asset held for
sale and a discontinued operation numbers are presented on a continuing
basis and comparatives for FY23 have been restated. The definition and
rationale for use of non-International Financial Reporting Standards (IFRS)
measures are shown in note 8.3 in the consolidated financial statements.
** As a result of accounting for the UK Municipal business as asset held for sale
which has led to an exceptional charge of €64.5m.
Financial statements
154
Auditor’s Report
164
Financial Statements
Other information
258
Sustainability disclosures
274
Shareholder information
275
Company information
276
Glossary
4
Our role in the circular economy
We help prevent waste, offer efficient collection solutions and
recycle residual waste into circular materials.
44
What we do to support our people
At Renewi,
we prioritise
supporting
our people
by cultivating
a nurturing
and inclusive
environment
for growth and
development.
Renewi plc Annual Report and Accounts 2024
1
Our business today
Our business divisions
Who we are
Safe
Safety above
all else
Sustainable
Make a daily
difference to
our planet
Innovative
Do it better
every day
Accountable
Do what we
say we’ll do
Customer focused
Add value to our
customers
Together
Always open
and respectful
How we act
Commercial Waste
Comprises industrial and commercial
waste collection and processing and
secondary materials production
across the Netherlands and Belgium.
Key activities include the processing of
mixed waste streams and monostreams
into high-quality recyclates and turning
organic waste into biogas and bio-LNG.
To see more, visit page 62
Mineralz & Water (M&W)
Comprises our activities of processing
and cleaning contaminated soil and tar
and turning it into building products such
as gravel, sand and filler. It also includes
cleaning of bottom ash and contaminated
water, as well as our packed chemical
waste processing activities. This division
operates in the Netherlands and Belgium.
To see more, visit page 64
Specialities
This division operates in Belgium, the
UK, the Netherlands, France and Portugal
and comprises three businesses: Maltha
glass recycling, Coolrec – speciality Waste
and Electrical and Electronic Equipment
(WEEE) recycling – and UK Municipal
public-private partnership contracts (PPI),
now classified as Asset held for Sale.
To see more, visit page 65
Group overview
Group overview
Renewi is a leading pure-play waste-to-
product company that gives new life to
used materials every day, contributing
to a cleaner, circular world in which we
‘waste no more’. We have more than
6,000 employees working at 154 operating
sites across Europe, and our extensive
operational network enables us to always
be close to our customers.
We use innovation and the latest
technology to push the limits of how
much can be recycled, with a vision of
a world where all waste is circular. Our
focus is extracting value from waste that
in the past would have been incinerated
or sent to landfill. The result is less waste
and contamination, smarter use of raw
materials and a direct contribution to
a lower carbon economy through the
production of secondary raw materials and
by avoiding carbon emissions. Renewi
shares are listed both on the London Stock
Exchange and Euronext Amsterdam.
Our values
2 Renewi plc Annual Report and Accounts 2024
Number of operating sites
154
Volume of recycled material FY24
6.6mT
Volume of waste handled FY24
10.4mT
Our sites
Our geographic footprint means we are
never far from our customers, minimising
transportation of waste.
b e l g i u m
t h e n e t h e r l a n d s
Commercial Waste
Mineralz & Water
Specialities
5 contracts across
locations in the UK
5 sites situated
in France
Number of sites in location
An additional Renewi site
situated in Portugal
1
2
3+
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
3
Business model in
a circular economy
Business model
Renewi is one of the leading
European waste-to-product
companies. We extract value
from waste streams by
collecting, sorting and
processing waste to create
secondary materials. We also
connect with other participants
in the circular economy to
develop new solutions together,
enabling our partners to realise
their circular ambitions as we
realise ours.
Through our collection activities and
partnerships, we collect, process and
sort waste and wastewater at 154 Renewi
facilities, primarily in the Netherlands and
Belgium. With market-leading expertise
and infrastructure, we produce high-
quality secondary materials and sell them
for use in the manufacturing of new, more
sustainable products.
Technological and regulatory limitations
mean that there is a residual portion of
waste that cannot be recovered. We
contract third parties to incinerate or
dispose of this residual waste as landfill,
thus our business model incentivises us
to recycle as much as possible. As a result,
we maximise the amount of material we
recycle and strive to create the highest
possible added value while achieving
significant carbon emissions avoidance
across the value chain.
Global awareness of the climate crisis
and commitment to The Paris Climate
Agreement’s CO2 reduction objectives
is creating an increasingly supportive
environment for our business model.
Societal pressures and governmental
regulations require companies to consider
their impacts on the environment, by
reducing their carbon footprint, recycling
waste products, and procuring more
sustainable materials. This places
Renewi’s market-leading, innovative
and competitively priced services at
the heart of the circular economy.
Our business is built on two streams of
material: inbound waste streams and
outbound recycled material streams.
We are paid to collect inbound waste
streams from our customers: businesses,
governmental organisations, care facilities,
educational facilities, secondary disposers1
and other organisations (see page 14 for
more information about Customers). Our
outbound circular material streams are
the secondary materials we sell in various
forms to producers and in some cases
secondary sorters and traders. Products
manufactured with circular materials are
approaching the quality of virgin materials
and are often less CO2 intensive – an
increasingly important characteristic to
companies who have joined in the global
effort to slow climate change.
1. Smaller, mostly regional waste collection companies
that have no recycling capacity themselves.
Circular material:
shredded glass
from solar panels
4 Renewi plc Annual Report and Accounts 2024
Delivering value for our stakeholders
Aligned to UN SDGs
Our competitive advantages
To see more, visit page 34
To see more, visit page 112
People
Our employees’ commitment
to our purpose combined with
their unmatched experience and
expertise in the area of collection
and recycling processes is an
important competitive
advantage for Renewi.
Opportunities
We have identified multiple
attractive investment
opportunities within our
business. Two examples from
FY24 are the opening of the
advanced sorting line in Belgium
and rigid plastics facility in
The Netherlands.
Customers
A growing number of our
customers have partnered
with us to help them realise
their sustainability objectives by
maximising the recycling of their
waste and including secondary
materials in their new products.
Scale
Our geographic footprint allows
us to minimise transportation of
materials and benefit from route
density and economies of scale.
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Product designer
We minimise residual waste
going to incineration
In
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Our role in
the circular
economy
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Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
5
Making airports
waste-free by 2030
In FY24 we began our eight-year collaboration with
Amsterdam Airport Schiphol, Rotterdam The Hague
Airport and Seenons waste management, taking
charge of waste processing and recycling of waste
flows at both airports.
Our goal is to make both airports waste-free* by 2030
and push for full circularity by 2050.
Case studies
*
‘Waste-free’ is Schiphol’s definition of an airport that has no
residual waste; only waste streams that are fully reused or
recycled.
6 Renewi plc Annual Report and Accounts 2024
Recycling healthcare waste
We’ve continued to partner with GreenCycl and last
year acquired 40% of their shares to help improve
sustainability practices within the healthcare industry,
aiming to increase circularity and reduce carbon
emissions. Our focus is on collecting disposable and
reusable medical equipment from hospitals across
the Netherlands, which we then transfer to GreenCycl
for processing. The discarded instruments require
specialist sorting before being repurposed back into
medical equipment and sold to hospitals or suppliers.
Our collaboration with GreenCycl has yielded
promising results, demonstrating the capability
to restore 85% of surgical instruments to pristine
condition through efficient collection, handling and
recycling processes. Beyond recirculation, our joint
initiative has also led to significant cost savings for
healthcare facilities and helped them improve their
sustainability practices.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
7
Pioneering advanced
plastic recycling
We use a range of methods to maximise the re-use of
plastic, reduce landfill and prevent incineration. It’s
our aim to effectively manage various plastic types,
maximising circular material output. By processing
polymers safely, we prevent their incineration. We are
continually looking for ways to strengthen our
position in the value chain, providing certified,
high-quality recycled plastics to producers. This helps
replace fossil-based feedstock with sustainable,
circular alternatives.
We are at the forefront of addressing rigid plastics
circularity, operating Coolrec, Ghent and Acht, our
new sorting line that opened in March 2024. Acht
utilises advanced technology to enhance rigid
plastics recycling. The line delivers high-quality
Post-Consumer Recycled (PCR) materials, focusing
on Polypropylene (PP) and Polyethylene (PE),
achieving over 95% purity while operating on
100% renewable energy.
We continue to explore new ways to strengthen our
position in the value chain by providing certified,
high-quality recycled plastics to producers, and
replacing fossil-based feedstock with sustainable,
circular alternatives.
Case studies continued
8 Renewi plc Annual Report and Accounts 2024
Water treatment that
safeguards the environment
ATM, a subsidiary of Mineralz & Water located at
Moerdijk port, stands as a pioneering force in meeting
the ever-growing demand for secondary raw materials.
At the heart of our operations lies our cutting-edge
water treatment facility, a testament to our
commitment to environmental stewardship. The
facility uses advanced bacterial purification to process
800,000 tonnes of contaminated water a year. Through
meticulous filtration and treatment methods, the
water is cleaned thoroughly to safeguard the delicate
balance of the environmental ecosystem when it is
returned to drainage.
Our water treatment facility is a cornerstone of our
sustainability efforts, representing our dedication
to preserving natural resources and mitigating
environmental impact. As droughts increase, water
treatment becomes increasingly vital. By effectively
removing contaminants and impurities from large
volumes of water, we play a crucial role in protecting
local waterways and ecosystems while meeting
stringent regulatory standards set for environmental
conservation. Our commitment to continuous
innovation and investment in technology ensures
we remain at the forefront of sustainable water
management practices, setting new benchmarks
for environmental responsibility in the industry.
Renewi plc Annual Report and Accounts 2024
9
Strategic report
Governance report
Financial statements
Other information
Sustainable glass
production
In FY24, the Maltha Group embarked on a strategic
collaboration in Portugal with Vidrala, a glass
packaging and manufacturing company, to increase
sustainability in glass production. The aim was to
enhance the quality of cullet – glass that has been
crushed or imploded for re-use – used in the process
of bottle manufacturing. As a result, we have seen
improvements that not only bolster the efficiency of
the melting process but also significantly reduce the
energy consumption and overall carbon footprint of
Vidrala’s furnace. Maltha and Vidrala continue to work
together to increase supply and further innovate the
glass recycling process.
Case studies continued
10 Renewi plc Annual Report and Accounts 2024
Market, trends and competitors
Circularity is increasingly important
against a backdrop of climate
crisis and geopolitical tensions.
Regulatory climate
The climate crisis, supply-chain disruptions
and geopolitical tensions have rapidly
changed how governments think about
waste and the use of natural resources.
The European Union aims to be the global
leader in reducing CO2 emissions and
resource consumption through its Green
Deal and Circular Economy Action Plan.
In 2026, an impact study will be conducted
on the inclusion of incineration plants in
the ETS scheme. In addition, European
and member state environmental laws
protect land, water and communities
from contamination and pollution.
Corporate sustainability objectives
Our customers operate in the most circular
economies of Europe1, but even in our
main markets of the Netherlands and
Belgium, recycling rates for 2022 were
only 27.5% and 22.2% respectively2.
Companies have a long way to go to meet
the requirements of the European Union’s
Circular Economy Action Plan and related
legislation namely:
• a 50% reduction in material footprint
by 2030;
• plastic packaging recycling rate 55%
by 2030; and
• share of recycled content to shift to 60%
by 2030
EU businesses are reviewing all their
processes looking for measurable ways
to reduce their carbon footprint and
decrease their use of virgin materials
as these regulations approach. We see a
growing trend for companies to use waste
management techniques to contribute
to their sustainability goals. They wish to
know more about their own waste, how to
measure it, how to maximise recycling and
how to incorporate as much as possible
into new products in order to meet their
circularity goals. Data is an important part
of this equation, as only with verifiable
data can companies count their waste
management efforts towards their
sustainability targets.
Demand for secondary raw materials
Recycled content that was once perceived
as second best is now often preferred to
new material, and consumers seek out and
respect companies that reuse and recycle.
Secondary raw materials help meet this
demand, and producers know this.
However, the prices of secondary materials
are linked to virgin commodity prices,
which show some degree of volatility.
During the pandemic, global supply chain
disruptions seen from 2021-2022 caused
prices for raw materials to spike, followed
by a return to pre-pandemic price levels
over the past year. The plastics market was
an exception to this, as plastics prices have
fallen to lower than average levels
following recent oversupply of virgin plastics
to the EU.
Competitors
Renewi is the number one recycler in the
Netherlands and Belgium, with 10.4mT
of waste handled in FY24. Our competitors
range from large waste management
companies with broad asset bases that still
include incinerators and landfill to regional
companies, often family-owned, with
significant operations but smaller asset
bases than ours. There is also a large
number of very small players who generally
own small fleets of trucks and limited
personnel. We regularly work with these
parties when they can provide non-client-
facing transportation on certain routes
competitively. We have also
formed partnerships with some regional
companies to maximise route efficiencies
and limit inner-city traffic, such as in the
Green Collective.
1. National Circularity Gap Metric – Circularity Gap
Reporting Initiative (circularity-gap.world).
2. Eurostat, Circular material use rate.
Circular material:
foam from recycled
mattresses by
RetourMatras
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Renewi plc Annual Report and Accounts 2024
11
Competitive landscape
Key Legislation
Legislation is an important factor in Renewi’s business.
In conjunction with our sound commercial model it helps us
operate in the highly-regulated waste sector. In this section,
we will focus on legislation which impacts the inbound
volumes and outbound products which form our business.
The first tranche of legislation relates to our inbound waste
volumes. Waste management and landfill legislation dating
from the late nineties and early 2000’s laid the foundation. The
EU Landfill Directive from 1999 and the EU Waste Framework
Directive of 2008 created restrictions and taxes on both landfill
and incineration as means of disposal of waste, making
recycling comparatively more attractive. Over the years,
the restriction on landfill in the Netherlands and Belgium
increased and today the use of landfill in both countries
is highly regulated and limited. Incineration has also been
disincentivised over the years in both countries, with regular
increases in incineration tax in the Netherlands and Belgium.
VLAREMA 8 has been an important piece of recent legislation
affecting inbound waste streams. This Flemish law came into
effect in 2021 and requires commercial waste to be sorted in to
24 streams with the objective of increasing the percentage of
waste recycled.
Further legislation creates tailwinds in the encouragement of
the use of recycled products and Waste-to-Energy producers.
This legislation is expected to increase demand for our
outbound products like recycled plastic, glass cullet, wood
and metals as well as our biogas and bio-LNG. In many cases,
revisions to existing legislation will create additional demand
for our products once enacted. Many of these regulations will
be enacted over the coming 1-3 years and require recycled or
renewable content in production of goods and energy. Key
policy and legislation includes:
• Circular Economy Action Plan
• Ecodesign Directive
• Waste Framework Directive – (Kaderrichtlijn afval)
• Construction Products Regulation –
(Bouwproducten verordening)
• WEEE Directive (AEEA-richtlijn)
• Packaging waste directive
• Product specific legislation (i.e. toys, medical devices)
Most large peers
• Typically own incineration activities
• Balancing of assets
Smaller competitors
• Play a limited role – i.e. collection or
sorting.
Renewi
• Pure play recycler – incentivised
to minimise incineration
• #1 in commercial waste in
Netherlands and Belgium
• #1 in fridge dismantling in
Netherlands and Belgium
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Incineration
Market, trends and competitors continued
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12 Renewi plc Annual Report and Accounts 2024
Creating value,
from waste to product
As a pure-play recycling
company, we generate revenue
by providing waste management
services as well as processing the
waste we collect into secondary
materials, which we sell to our
outbound customers.
Metals
We process a broad range of materials,
with the aim of giving them a second life
wherever feasible. The most important
material streams for us from a revenue
perspective are metals, glass, paper,
plastics and wood. Metals come primarily
from Specialties (Coolrec), Commercial
Waste’s construction volumes and a
smaller portion from Mineralz & Water.
For an overview from a volume perspective,
Glass & ceramics
Commercial Waste
Paper-based
Specialities
Plastics
Mineralz &
Water
Wood
Other
31%
51%
43%
6%
24%
20%
6%
6%
13%
Outbound
revenues
by material
see page 259. We aim to achieve an overall
recycling rate of 75% – we call this
Mission75. Today our recycling rate is
63.2%.
Of the total outbound revenues, 87%
relates to metals, glass, paper, plastics
and wood, combined. About 65% of the
volatility related to the metals, wood,
paper and plastics is effectively hedged by
dynamic pricing contracts in place with the
inbound customer. The outer ring of the
graph above shows revenues by division.
Commercial Waste has considerably more
variety in its outbound materials than the
other divisions. This is largely due to the
relatively high percentage of inbound
mixed waste within the Commercial Waste
division, whereas the other two divisions
deal with a more limited range of inbound
waste streams, often monostreams.
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Renewi plc Annual Report and Accounts 2024
13
Our customers and partners
Our customers
We see our customers as
partners. Their needs define
our services, and their success is
also ours. Renewi’s customers
fall into two main categories:
inbound and outbound.
Inbound revenue by sector*
Wholesale & Retail
5%
10%
3%
13%
9%
2%
15%
1%
12%
6%
10%
7%
7%
Water, Sewage & Waste
Business Services
Government
Manufacturing
Construction
Transportation & Storage
Oil, Gas & Chemical
Hospitality & Recreation
Healthcare
Food Processing
Education
Agriculture
Specialities
Maltha takes its incoming volumes
from various manufacturing companies
through a tolling arrangement and
various other companies in different
countries through local municipalities.
Coolrec inbound customers primarily
constitute e-waste Extended Producer
Responsibility schemes. These are looking
for a compliant, circular and traceable
processing partner. Additional volumes
are processed directly from OEMs.
UK Municipal collects, recycles and
disposes of household and commercial
waste for five municipalities in the UK, its
inbound customers are the Councils of
these municipalities.
Outbound
Across the Group, we have close to
1,000 outbound clients who rely on
us to produce specific grades of circular
materials to support their manufacturing
processes. With extended contract
durations for materials, there’s an
opportunity to enhance the value of
products by customising them to better
meet the needs of the end customers.
We occasionally purchase waste streams
where supply from our inbound streams
is insufficient, typically glass, wood, and
plastics when necessary for our processes.
These suppliers are typically traders and
secondary disposers.
Commercial Waste
Commercial Waste’s outbound customers
are purchasers of raw materials such as
traders, compounders, processors and
manufacturers. Buyers of our outbound
Commercial Waste products are suppliers
to the concrete industry, manufacturers of
particle board, glass manufacturers and
plastics producers. In most cases, our
client uses the recyclates to produce
components which are then sold on to
manufacturers, but in some cases we also
have contracts with the manufacturer.
Inbound
Across the Group, our inbound customers
include small and medium-sized
businesses, construction companies,
corporations, government ministries and
organisations, healthcare and educational
institutions, wholesale and retail shops,
restaurants and leisure organisations. We
also have customers who are secondary
disposers which are smaller, mostly
regional waste collection companies that
have no recycling capacity themselves.
We have a large, diverse base of more
than 150,000 inbound customers, with
our largest customer representing
approximately 1% of total revenues from
continuing operations. Our inbound
customer services vary considerably
between the divisions.
Commercial Waste
For our inbound Commercial Waste
customers, we collect waste on a
subscription basis, manage post-
collection sorting and provide an array
of practical and consultancy services,
such as advice on residual waste
reduction and optimal sorting into
monostreams. In return, these customers
give us access to waste streams from
which we collect and process materials
for their second life cycle.
Mineralz & Water
Mineralz & Water inbound customers are
typically large construction companies
who bring tarmac from roadworks and
(chemical) manufacturing sites who bring
their contaminated soil. For the water
business, we serve (petro) chemical
companies who bring their sludge and
wastewater for cleaning, incidental
wastewater and industrial production for
purification and cleaning to Renewi.
National and international packed
chemical waste collectors and producers
bring their specialised packed chemical
waste for pyrolysis treatment.
*
Revenues from continuing operations
14 Renewi plc Annual Report and Accounts 2024
Mineralz & Water
Outbound customers for Mineralz & Water
are typically civil construction and
engineering companies in the Netherlands
and abroad that use our Forz®Sand T in
elevation projects as well as concrete
producers who purchase Forz®Sand T,
Forz®Gravel and Forz®Filler as ingredients
for their sustainable concrete applications.
While in the past we paid partners to
offtake our outbound mineral product of
thermally treated soil (TGG), today our new
products of sand, gravel and filler for the
concrete market shift the balance of the
outbound product value to positive.
FY24 group revenue from
continuing operations (€m)
Inbound revenue
1,371
318
Outbound revenue
Our high quality
recycled plastic from
fridge liners is pure
enough for use in toys.
Specialities
Maltha outbound customers are mainly
manufacturing companies for glass that is
processed and then sent to the clients’
furnaces. Maltha also works with various
companies in different industries for the
rest of the products it recycles in the process.
Main outbound products for Coolrec are
plastics and metals. Plastics are sold either
directly to producers such as Electrolux
or Playmobil, or to distributors or other
intermediaries such as compounders.
Metals are sold to metal smelters or to
metal recyclers.
UK Municipal outbound products are
circular materials like wood, glass, metal
and plastics, which are sold to traders,
compounders, smelters and others.
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Renewi plc Annual Report and Accounts 2024
15
Investment case
Investment case
Renewi is the only pure-play
recycler and has a market-
leading position in Benelux.
We have attractive growth and
margin ambitions in our core
businesses and our strategy is
to deliver organic sales growth
through market share gains,
increased recycling rate and
new technology solutions.
Shareholder value
Renewi’s disciplined capital allocation
framework is focused on driving
shareholder value while targeting a
conservative balance sheet with a 2.0x
leverage target. Our return to sustained
positive free cash flow will support a
dynamic and sustainable capital
allocation policy, enabling us to:
• reinstate the ordinary dividend, with a
progressive policy targeting sustainable
growth while maintaining underlying
earnings cover of 3.0-4.0;
• invest ~30% of free cash flow annually
into capex for innovative growth
projects with return hurdles at
least in line with the Group target
of 16% pre-tax;
• target value accretive bolt-on
acquisitions in the medium term; and
• make supplemental returns to
shareholders in the form of share
buy-backs or additional dividends
where the Board determines there
is excess capital beyond the Group’s
near-term investment requirements.
Opportunities
• Long term, structural regulatory
and customer demand drivers
underpin accelerating demand
for recycling solutions
• Experienced and committed
management team with track
record of value creation at Renewi
• Potential to deliver increased and
sustainable margins, cash generation
• Commercial agility and innovation
underpin organic growth ambition
of >5% per annum
• Opportunity to enhance shareholder
returns through investment, acquisition
and capital returns
• Enabler of the circular economy
realising meaningful carbon
avoidance across the ecosystem
Optimise our portfolio
Drive organic growth
Build a strong platform for growth
Short-term priorities
Medium-term targets
High single-digit Underlying EBIT margin
ROCE >15%
Free cash flow/EBITDA conversion* >40%
Organic annual revenue growth >5%
Our strategic
progress is
driven by…
*
Cashflow before dividends, growth projects and M&A.
16 Renewi plc Annual Report and Accounts 2024
1. Attractive growth outlook underpinned by strong regulatory and
customer demand tailwinds
2. Market leader, at the forefront of recycling technology in the most
advanced recycling markets
3. Strong partner – customer relationships and value proposition drive
commercial momentum
4. Unmatched footprint with hubs close to customers and state-of-art
recycling sites benefitting from scale
5. Significant investments made to take advantage of growth opportunity
Increasingly strict
regulation and
sustainability targets
#1
Commercial waste
Netherlands and Belgium
154
Key facilities
>€40m
Growth capital spent over
last 2 years
50%*
reduction in material
footprint by 2030 in NL
500k
Containers and bins
Advanced sorting
lines Biogas Facility
Refitting ATM
55%**
Plastic packaging
recycling rate by 2030
#1
Fridge dismantling
Netherlands and Belgium
1,814
Vehicles
Increasing sustainability
requirements by
companies and
consumers
*
Circular Dutch Economy by 2050.
** Packaging and Packaging Waste Directive.
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17
Delivering on our commitments
I am pleased that we have been able to
deliver on key commitments against a
challenging operating environment. At
our Capital Markets Day in October, we
outlined three key strategic priorities to
our shareholders: Drive organic growth,
build a stronger platform and optimise
our portfolio. Underpinning our strategy is
a key focus on driving higher margins and
cash returns as well as shareholder value.
We continued to focus on our organic
growth commitment and won important
new customers and partnerships.
To optimise our portfolio, we focused on
the turnaround of Mineralz & Water and
began a strategic review of UK Municipal.
The turnaround of Mineralz & Water has
been successful, and by the end of FY24 it
was once again an important contributor
to our profits. The review of UK Municipal
resulted in a successful sale of this
complex asset to Biffa Limited, an owner
better suited to these activities. The sale
of UK Municipal is transformational and
once completed will simplify our portfolio
and enhance cash generation. We also
continued the execution of our
digitisation roadmap. We completed the
Simplify programme to eliminate costs
and improve our margins and announced
the simplification of our organisational
structure to enable growth, become more
efficient and bundle expertise. These
efforts will continue throughout the
coming year.
In 2023, the Board received non-binding
indicative offers to acquire the entire
share capital of the Company from
Macquarie Asset Management, which
we carefully considered. Internal and
third-party valuations based on the
company’s existing standalone strategy
concluded that the potential bid
significantly undervalued Renewi, and so
we rejected the offers. We engaged with
shareholders around the time of the offer
period, and in the period since then. As a
Board, we are focused on maximising
value for all of our shareholders and are
objective about the route through which
this is achieved.
Fostering excellence: appreciating
our team
Throughout FY24, the Renewi team
has demonstrated unwavering passion
and dedication, served our customers
and prioritised the safety of each team
member. I extend our sincere thanks
to every member of the team for their
energy, skill, determination and strong
sense of unity.
Collaboration is crucial to fulfil our
purpose and maintain our values, and so
we’re committed to fostering a respectful
and diverse environment. We recognise
the benefits of diversity at both Board
level and throughout the organisation
and continue to champion a variety of
activities to create an even stronger and
yet more diverse and inclusive company.
“Renewi is committed to making
a positive impact on sustainability
and driving the circular economy,
both now and in the future.”
Ben Verwaayen
Chairman
Chairman’s statement
18 Renewi plc Annual Report and Accounts 2024
Celebrating our valued customers:
a cornerstone of success
We place customers at the centre of
everything we do, ensuring they receive
the right service and, in particular, expert
advice. We offer more than just waste
disposal solutions – we become dedicated
partners who help customers achieve their
sustainability objectives.
EPS and dividend
Financial developments included revenue
from continuing operations of €1,689m
down 1% year on year. The result for the
year was a loss of €30.9m driven by the
impact of the expected loss on the UK
Municipal divestment. Leverage on our
core borrowings at the end of March
was 2.14x, an increase from last year end as
a result of higher average borrowings and
a lower profit performance. It remains the
Board intention that medium-term core
debt leverage should be 2.0x.
At the Capital Markets Day we announced
our intention to recommence dividend
payments. The Board is pleased to
recommend a modest final dividend of 5
pence per share for FY24, which will be paid
on 31 July subject to shareholder approval
at the 2024 AGM.
Looking ahead
With a bold vision for the future, Renewi is
resolutely focused on creating sustainable
growth and strong value for our shareholders.
We are committed to making a positive
impact on sustainability and driving the
circular economy both now and in the
future. Renewi is well-placed to navigate
challenges, seize opportunities and drive
sustainable growth to secure a prosperous
future for all stakeholders.
To close, I would like to express my
appreciation to our employees, customers,
suppliers, investors and other key
stakeholders, who all contribute significantly
to making Renewi one of Europe’s leading
waste-to-product companies.
Ben Verwaayen
Chairman
[
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19
Moving ahead
Our strategic ambitions encompass
three priorities – optimise our portfolio,
build a stronger platform and accelerate
our organic growth. While FY24 saw a
challenging market environment with
limited macroeconomic growth, a fall in
recyclate prices and market declines in
some of our key end markets, we focused
on operational agility and commitments.
Our portfolio optimisation is progressing
well with the completion of the strategic
review of our UK Municipal business,
resulting in a sale of our UK Municipal
activities to Biffa Limited. This transaction
entails a €154m cash outflow for us, but
thereafter will unburden our cashflow and
free up management focus to realise our
growth ambitions for the core business.
We are also on track with the turn-around
of Mineralz & Water within the envisaged
timeframe, through the growing uptake
of our new materials. The new Mineralz &
Water product line has been created with
the specific needs of the concrete and
construction industries in mind and we
expect to further increase the production
volume and quality of our new sand,
filler and gravel products. We expect the
recovery of Mineralz & Water to continue
through FY25.
In order to strengthen our systems and
processes, we launched three initiatives
over the course of FY24. The Simplify
programme identified a number of areas
for efficiency gains, especially in our SG&A
functions, where we were able to make
significant savings by combining activities
and increasing efficiency. We started the
process of streamlining our organisational
structure and bringing Commercial Waste
Netherlands and Belgium together under
a single Commercial Waste leader, to
maximise the sharing of best practices,
organisational efficiency and economies
of scale. We further developed and
accelerated the launch of Future Fit,
our digitisation programme to replace
our legacy IT systems and increase the
resilience and agility of our platform.
Workday, a comprehensive workforce
management solution, was one of the
tools we rolled out to manage our human
resources functions more efficiently.
While the financial results of FY24 were
impacted by both recyclate prices largely
returning to historical averages and the
challenging market in the Commercial
Waste Netherlands business, work
continued across the organisation to
put the right measures in place to return
to organic revenue growth and realise
higher margins. Within Commercial Waste,
a simplified leadership structure, an
enhanced sales strategy and investments
in high growth projects have set the
groundwork for accelerated growth in
the future. Mineralz & Water continues
to improve its underlying EBIT in line with
its recovery programme. Coolrec, while
impacted by the low plastics prices,
processed record volumes and has started
constructing new processing lines which
will further contribute to growth in 2025.
“We made strides in optimising
our portfolio to position Renewi
for future growth. We invested in
the future by opening state-of-the-
art lines and launched initiatives
to make our company stronger.”
Otto De Bont
CEO
CEO’s statement
20 Renewi plc Annual Report and Accounts 2024
Maltha showed impressive growth, with
refinements in processes and investments
in plant improvements combined with
strong price dynamics to yield exceptional
results.
If we look at the higher-growth materials
and sectors we set out on our Capital
Markets Day, we have made progress on a
number of areas of our 5 year commitment
to add €275m in revenues in glass, plastics,
organics, construction & demolition and
zero waste solutions.
Against a background of macroeconomic
challenges including lower levels of
construction and demolition activities
in the Netherlands and high inflation, our
financial performance for FY24 was weaker
with revenue from continuing operations
down 1% and underlying EBIT down 20%.
In the last quarter of the year, volumes
stabilised or returned to modest sequential
growth. The planned divestment of UK
Municipal has been reflected as asset held
for sale at 31 March 2024 and has resulted
in an exceptional charge of €64.5m.
We continued to grow our operations and
officially opened our Ghent sorting line,
which is capable of recycling 125kt of
commercial residual waste annually. The
facility aligns with VLAREMA 8 legislation
which requires that some 24 materials
must be removed from commercial waste
for recycling before any residual waste can
be incinerated. We also opened our new
rigid plastics sorting line in Acht, which
produces high-quality Post-Consumer
Recycled (PCR) materials, focusing on
polypropylene (PP) and polyethylene (PE).
We are proud to have achieved over 95%
purity at the site, ensuring our recycled
plastics meet the highest standards.
In a ground-breaking achievement, our
Coolrec subsidiary in partnership with
Electrolux, pioneered the creation of a
refrigerator crafted from recycled materials.
This collaboration earned us the European
Plastic Recycling Award for Automotive,
Electrical, or Electronic Product of the Year,
recognising our excellence in recycled
material processing, innovative product
design and cutting-edge manufacturing in
the European plastics recycling industry.
Maltha installed a new line at the Portugal
site for the processing of ceramics, stone
and porcelain, a waste stream coming
from glass sorting, and made a number
of upgrades to improve quality and yields.
Looking forward, we expect to see
increasing demand for our services, as our
offering is even more attractive in light of
upcoming regulatory requirements which
will affect many of our customers, such as
CSRD regulation and will continue to drive
higher levels of recycling. We are well-
positioned to meet this demand. We
continue to focus on customer experience
and with the implementation of Future Fit,
we expect to see further improvement in
customer satisfaction.
Ensuring health and safety in our
workplace is paramount, we have made
excellent progress in maintaining a safe
environment. We are proud to report a
decrease in Lost Time Injuries overall from
9.4 to 6.8, surpassing our 2025 target of 7.
Group Summary
Revenue
Underlying EBIT
FY24
€m
FY23*
€m
Variance
%
FY24
€m
FY23*
€m
Variance
%
Commercial Waste
1,384.7
1,397.3
-1%
98.5
129.3
-24%
Mineralz & Water
181.6
190.9
-5%
9.6
0.5
n/a
Specialities
175.2
160.2
9%
16.3
15.9
3%
Group central services
–
–
(18.9)
(14.0)
-35%
Inter-segment revenue
(52.3)
(44.5)
–
–
Continuing operations
1,689.2
1,703.9
-1%
105.5
131.7
-20%
Discontinued
operations
179.9
188.4
-5%
1.3
1.2
8%
Total
1,869.1
1,892.3
-1%
106.8
132.9
-20%
*
The FY23 numbers have been reclassified to reflect discontinued operations as set out in section 1 in the
consolidated financial statements.
The underlying figures above are reconciled to statutory measures in notes 2 and 8.3 in the consolidated
financial statements.
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Renewi plc Annual Report and Accounts 2024
21
CEO’s statement continued
We have proactively implemented
enhanced traffic plans across all our
sites to mitigate risks. The rollout of
safety leadership training is evidence of
our commitment to fostering a culture of
safety at every level of the organisation.
We were pleased that our employee
satisfaction levels stayed stable at an
eNPS 23 against the backdrop of a
strategic review and implementation
of our Simplify programme.
Group outlook
Our strategic focus for the coming year
centres around completing the
divestment of our UK Municipal business,
driving further improvements in Mineralz
& Water operations and driving efficiency
through digitisation and simplification of
our organisation and processes. We aim
to achieve further growth through organic
expansion and the strengthening of our
core commercial waste business with the
targeted sales strategy and continuing
investment in innovation in circular
materials. We expect Commercial
Waste Belgium to continue its strong
performance in the second half, and
Netherlands to show improvement
despite the ongoing weakness in the
construction sector. We will see further
margin improvement as the existing
programmes ramp up to their run-rate
benefits. In line with our upgraded capital
allocation policy we shared at the Capital
Markets Day in October of last year, I am
pleased to announce that we will be
proposing a dividend of 5p per share.
I want to express my gratitude to the
diverse group of stakeholders who
have been instrumental in supporting
us throughout this year. I appreciate
our customers for entrusting us with
their business, our workforce for their
continued dedication, the Board for their
valuable guidance and our shareholders
for their support of our vision.
Otto De Bont
CEO
Status update: Value drivers
In 2021, we introduced three key value drivers as part of our strategic plan: Renewi 2.0, circular innovations and Mineralz & Water
recovery aiming to enhance our operational effectiveness and customer experience.
Circular innovations
Our efforts to deliver circular innovations
have been further developed and
segmented into sectors, the five most
important of which are described in detail
under our third strategic priority, ‘Drive
organic growth’, in particular under
‘High-potential sectors’.
Renewi 2.0
The Renewi 2.0 programme, aimed at
streamlining and enhancing customer-
facing operations, was completed early
in FY24 and had already contributed to
heightened productivity in the first half.
Anticipated final implementation costs
for Renewi 2.0 remain approximately
€28m, with €20m of run rate benefits
realised during FY24.
Mineralz & Water recovery
Mineralz & Water’s recovery is fully
underway and initial results were slightly
ahead of our original plans. Going
forward, continuing Mineralz & Water
recovery will fall under our first strategic
priority, ‘Optimise our portfolio’, and
updates will be given in that context.
We will no longer be reporting on the completed Renewi 2.0 value driver, and ‘Circular innovations’ and ‘Mineralz & Water recovery’
will be reported under the new strategy. Our Group strategy, described in the following section, will enable us to achieve our mission
to become the European leader in recycling and secondary materials, deliver attractive shareholder returns and help protect our
planet by reducing carbon emissions and pollution.
22 Renewi plc Annual Report and Accounts 2024
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Vision and strategy
Our vision is to be the leading waste-to-product company in Europe. We plan to achieve this by
establishing ourselves as leaders in recycling and secondary materials production, while strategically
expanding our market share. Our primary objective is to facilitate the transition to a circular economy,
thereby reducing carbon emissions while fostering social responsibility. Our strategic plan is based on
three pillars and aims to grow profitability, accelerate cash conversion and deliver attractive returns to
our shareholders.
Our priorities to drive sustainable shareholder growth
1.
2.
3.
Optimise
our portfolio
Build a strong
platform for growth
Drive
organic growth
Leading
waste-to-
product
company
Leader in
secondary
materials
production
Leader in
recycling
Selectively grow
market share
Our strategy
Our vision is based on
these guiding principles:
To be the leading recycler in Europe
• Extend our industry-leading position
to achieve 75% recycling rates
• Divert more volumes of waste away
from incineration
• Develop new recycling technologies
and partnerships
To be the leading producer of
low-carbon secondary materials
• Invest in advanced technology to
produce high quality, low-carbon
secondary materials to replace
virgin sources
To grow our market share
• Develop partnerships with
leading companies
• Invest in advanced treatment capacity
• Offer superior customer propositions
• Consolidate market position over time
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23
1. Optimise our portfolio
Commercial waste
Our core business; improved growth
prospects and strengthened margins.
Maltha/Coolrec
A key growth driver; strong business with
good margins operating in very attractive
niche markets.
Mineralz & Water
Fundamentally attractive businesses;
synergistic to the core business and
operating model. Recovery plan
under way.
UK Municipal
UK Municipal not synergistic with
our core business.
-5%
0%
5%
10%
0%
10%
5%
FY22
Profitability:
Organic growth potential (5 year revenue CAGR)
Revenue
FY24
Profitability across our portfolio
Our priorities
The first priority of our strategy
is to optimise our portfolio.
Our portfolio serves as a robust
foundation for growth and we are
continually exploring avenues
for further optimisation.
In reviewing our portfolio,
our main priorities in FY24 were
recovery of ATM (part of Mineralz
& Water) and a strategic review of
UK Municipal (part of Specialities).
Going forward, Renewi will
continue to focus on organic
expansion of its activities and
over the medium term value-
accretive bolt-on acquisitions.
Our portfolio optimisation is progressing
well with the completion of the strategic
review of our UK Municipal business,
resulting in a sale of our UK Municipal
future activities to Biffa Limited,
unburdening our cashflow and freeing
up management focus to realise our
growth ambitions for the core business.
We are also on track to complete the
Mineralz & Water – EBIT (€m)
performance improvement of Mineralz &
Water within the envisaged timeframe
through the growing uptake of our new
materials. The new Mineralz & Water
product line – sand, gravel and filler, have
been created with the specific needs of
UK
UK
CWNL
CWNL
CWBE
M&W
M&W
Maltha
CWBE
Coolrec
Maltha
the cement and construction industries in
mind and are in the process of receiving
End of Waste certification which will
further open the market for their sales.
We expect this recovery of Mineralz &
Water to continue through FY25 and FY26.
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26
24.2
10.7
Historical
Actuals
7.8
0.3
5.8
0.5
9.6
14
18
11
3
5
4.6
Original forecast
Revised forecast
24 Renewi plc Annual Report and Accounts 2024
2. Build a strong
platform for growth
This strategic priority is built
on step-change improvements
in margins, free cash flow and
return on capital employed.
Digitisation
Future Fit is our efficiency and digitisation
programme, building on the results of
Renewi 2.0, where Digital Core and business
harmonisation come together to realise
our growth ambitions. With Future Fit we
are working on the future of Renewi. This
will enable us to improve our services, raise
our customer satisfaction and employee
engagement. Future Fit will support our
growth ambitions and strengthen our
position in the markets we operate.
functions. Together, Future Fit and Simplify
have the potential to increase the margin
significantly over the medium term.
Cash flow
Another part of our ‘strong platform’ pillar
is a firm focus on cash conversion, and we
are working on multiple actions to realise a
40% EBITDA conversion target. These are:
• resolution of legacy cash flow drag from
the UK municipal operations and ATM
soil offtake;
• lower exceptionals
• improved asset management, leading
to lower replacement capex; and
leasing costs
This improved cash flow will give Renewi the
ability to invest in innovation and growth.
Our programme priorities are as follows:
• Improvement in our sales operations
• Digital enablement to realise our
ambition to become a waste to
product company
• Harmonising our business model and
unleashing the potential of the data that
we generate and becoming a truly data
driven company
This programme will impact all of Renewi.
Our focus in FY25 is to prepare for the roll
out in the business which will start in FY26.
Margins
Our Simplify programme, initiated in
FY24, is focused on decreasing costs by
optimising operations to protect margins.
Simplify aims to reduce the SG&A cost
base by €15m per annum by streamlining
and centralising certain administrative
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Our priorities continued
Return on capital employed
Return on capital employed will be
increased by a combination of business
improvement actions and investment in
growth. Business improvement actions
will focus on reducing capital employed
through site rationalisation and optimised
fleet and asset utilisation and, on the other
side of the equation, increasing returns.
Actions which will increase returns include:
portfolio rationalisation; addressing
selling, general and administrative
(SG&A) costs; increasing our recycling
rate; and digitisation.
Investing in growth requires a range of
actions. The first is driving organic and
profitable growth to over 5% by pursuing
attractive material streams and customer
segments. The second is the selection of
growth projects for investment that have
a minimum return hurdle of 16% before
tax. Finally, in the medium term, once
the optimisation of our existing portfolio
and platform is completed, we will seek
value-accretive, bolt-on mergers and
acquisitions to further the leading
positions of existing technologies or
add attractive material streams and
customer segments.
Clear medium-term targets
With these measures in place, clear
medium-term targets are essential
to guide our actions and provide
accountability to our shareholders.
We have committed to medium-term
targets of high single-digit underlying
EBIT margin, free cash flow/EBITDA
conversion of greater than 40%, return on
capital employed of more than 15% and
organic revenue growth of more than 5%.
Shareholder returns
Adding a disciplined capital allocation
framework to the measures described
above should lead to boosted shareholder
returns. While management is committed
to keeping a conservative balance sheet
with leverage near the 2.0x target over the
medium term, returning to a sustained
positive free cash flow will support a
dynamic and sustainable capital
allocation policy. This includes:
• an ordinary dividend with a progressive
policy targeting sustainable growth
while maintaining cover of 3.0–4.0x
underlying earnings;
KPI
FY24
FY23
Medium term target
Underlying EBIT margin*
6.2%
7%
High single digit
Free cash flow/EBITDA conversion
9.0%
10%
>40%
ROCE
7.7%
11%
>15%
Organic Annual Growth revenue*
-1%
1%
>5%
Recycling rate
63.2%
63.7%
75%
*
Values are presented on a continuing operations basis excluding UK Municipal business.
Business improvement actions
Reduce capital employed
Fleet and asset
utilisation
Site
rationalisation
UK Municipal
Increase
recycling rate
Digitalisation
Increase returns
Lower SG&A
ROCE
Target: >15%
• investing approximately 30% of
free cash flow annually into capex for
innovative growth projects with return
hurdles at least in line with the Group
target of 16% pre-tax;
• targeting value-accretive bolt-on
acquisitions in the medium term, with
a disciplined approach to meet clear
strategic, operational and financial
criteria; and
• where the Board determines that there
is excess capital beyond the Group’s
near-term investment requirements, it
will consider supplemental returns to
shareholders in the form of buybacks
and special dividends.
26 Renewi plc Annual Report and Accounts 2024
3. Drive organic growth
The third strategic priority is
to drive organic growth. Across
our divisions, ambitious growth
targets have been set that will
be driven by increasing volumes
and recycling rates as well as
by targeting attractive sectors
and waste streams. One way
of increasing revenues is by
increasing our recycling rate, in
line with our Mission75 objective.
In FY24, we added advanced sorting
capabilities to our Belgian operations,
in response to the increased recycling
regulations from VLAREMA 8 legislation
in Flanders. Early results show that
these facilities improve recycling rates
significantly. To ensure volumes, we
worked with the Flemish authorities on
how best to enforce VLAREMA 8. The
authorities adopted our suggestion that
enforcement at incinerators is most
efficient.
In the Netherlands, where volumes
were declining due to macroeconomic
developments impacting the Dutch
construction sector, a targeted sales
strategy was launched. This sales strategy
for Commercial Waste Netherlands targets
specific sectors such as health care,
construction & demolition and retail,
as well as material streams including
minerals, plastics and medical waste.
Maltha has been investing in upgrading
and improving its installations across the
group. The focus of the group is to become
the producer of the best quality cullet in
Europe and the supplier of choice to all
glass producers. The technology upgrades
have also had positive effects on the CO2
emission reductions as they are more
energy efficient, supporting our clients’
own sustainability targets and visions.
Construction &
demolition waste
processing installation
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27
Our priorities continued
High-potential sectors
We have identified five sectors that will significantly contribute to our organic
growth ambitions:
Construction & Demolition
Helping on of the highest carbon
industries become more circular
Glass
Capitalising on the opportunity that glass
is endlessly recyclable
Organics
Bringing carbon capture to the next level
Rigid plastics
Providing answers to a big environmental
and societal issue
Zero waste solutions
Enable customers to a zero residual
waste future
Deliver on our five-year plan
Renewi’s organic growth over the medium
term will be supported by developments
in regulation, market demand and
consumer demand. Upcoming European
Union regulations will require a 50%
reduction in material footprint by 2030,
the share of recycled content to shift to
60% by 2030 and packaging to be made
from 70% recycled materials by 2030.
Market demand will be driven by
companies’ growing focus on ESG as they
increasingly commit to more responsible
production. Scope 1, 2 and 3 reporting
will become mandatory for companies in
Europe from 2025 onwards, and recycling
waste, as well as using recycled materials
in production can help them decrease
their carbon footprint. Consumers
increasingly want to engage with
sustainable, responsible producers
and seek products with recycled content.
Renewi serves a wide range of industry
sectors. Our sector growth strategy is
underpinned by strong dedicated
commercial plans, focusing on:
• a superior customer proposition;
• sector-specific service offerings;
• more and better recycling options; and
• higher quality secondary materials.
Combined, these will drive >5% top-line
growth at high single-digit margins.
Represent
€275m
total revenue growth included in
five year plan
28 Renewi plc Annual Report and Accounts 2024
Construction &
Demolition
Helping one of the most
carbon intensive industries
become more circular
Construction & Demolition (C&D) market
growth is supported by societal need,
European Union regulation and market
dynamics. This waste accounts for more
than a third (35%) of all waste generated,
with 600 million tonnes produced in the
European Union, 455 million tonnes
recycled and 145 million tonnes sent
to landfill. In the Netherlands, there is
a market of 22 million tonnes of waste
with 3 million tonnes for advanced sorting
(the remainder is mostly rubble). The
European Union is expected to revise
its construction products regulations to
include a mandatory share of recyclates.
Meanwhile, the Dutch government aims
to reduce primary material usage to 50%
by 2030 and establish a circular economy
with net zero carbon emissions by 2050.
The C&D market faces some short-term
challenges such as nitrogen deposition,
historically higher interest rates, inflation,
building materials and a workforce
shortage. At the same time, long-term
growth drivers remain in place, namely
the Dutch housing shortage, the energy
transition policy that drives increased
renovation and changing family composition.
Catalysts for growth in this sector are
creating high-value monostreams with
our customers, forging partnerships and
sorting capabilities to enable growth in
mixed C&D waste and increasing value
from recyclates through innovation.
Financial growth
Targeted revenue increase
in 5-year plan
€50m
• Market set to recover after
slowdown 2022-2024
• Additional growth from
partnerships and excellent
sorting capabilities
• Higher value recycling options
from innovations
Environmental impact
Targeted carbon avoidance
350kT
• Current carbon avoidance driven
by recyclable sales of minerals
and metals
• Waste separation at the source
leads to more and better recycling
• Frontrunner in C&D collection.
Strategic report
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Renewi plc Annual Report and Accounts 2024
29
Our priorities continued
Glass
Capitalising on the
opportunity that glass
is endlessly recyclable
Maltha is our main business to drive glass
growth, through process optimisation,
innovation and geographic expansion.
We have already optimised sites in the
Netherlands and Portugal, resulting in
a significant increase in throughput. We
are now redefining flow and introducing
additional technology for further
optimisation at these locations and
will be implementing the same strategy
across all sites over the next few years.
Our innovation plans also include:
recycling solar panels into glass and
making new products; recycling car
windscreens back into flat glass, roofing
and pallets; and using fine fraction output
for glass powder and glass foam. Maltha
is exploring sourcing and operations in
selected countries in Western Europe
with attractive market fundamentals
and increasing our client relationships
to create future expansion.
>60% growth expected, at
high recycling rates
Financial growth
Targeted revenue increase
in 5-year plan
€40m
• Key growth drivers are:
• investment in process
improvements
• capacity expansion
• innovation
• The resulting higher quality
finished product and pricing
drive margin improvements
Environmental impact
Targeted carbon avoidance
225kT
• Glass is endlessly recyclable
without loss of quality
• Use of glass cullet over virgin
materials yields significant and
consistent carbon avoidance
given its lower energy consumption
• Current recycling rate in
Maltha at 97%
30 Renewi plc Annual Report and Accounts 2024
Organics
Bringing carbon capture to the
next level
Organics consists of wood, food
and garden, and green waste streams.
Renewi is the market leader in organics in
Netherlands and Belgium, with more than
two million tonnes of inbound organic
material per year.
We have identified three routes to growth
through the organics sector:
• Green
from commodity compost to functional
fibres and organic fertilisers
• Wood
from incineration and biomass to
recycling and chemicals
• Food and garden
from energy production to chemicals
for materials and fuels
Three sample projects
(non exhaustive)
Fibre for construction boards and vegan
leather (1-3 years)
• Mechanical pressing, separation
processes to extract fibres from
tomato stalks
• These are feedstocks for biobased
construction materials and
vegan leathers
Refined woodchips for biorefining
(2-5 years)
• Mechanical refining processes for
wood chips
• These are a feedstock for
upcoming biorefining plants
Precursors for bioplastics, specialty
biochemicals (2-5 years)
• Fermentation processes to
produce biochemicals
• These are a feedstock for the
production of bioplastics and/or
personal care products
>100% growth expected,
further increasing our
environmental impact
Financial growth
Targeted revenue increase
in 5-year plan
€100m
• Growth primarily driven by food
and wood, followed by green waste
• Increasing value per tonne of
recyclates key growth driver
Environmental impact
Targeted carbon avoidance
550kT
• Mainly driven by wood recycling
and providing biomass feedstock
• Increase expected by means of:
• Increase in recycling rate of wood
• Higher carbon avoidance of
advanced fuels, biochemicals
and nutrients
• Prolonged storage of captured
carbon in building materials
Strategic report
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Other information
Renewi plc Annual Report and Accounts 2024
31
Our priorities continued
Rigid plastics
Providing answers to a
big environmental and
societal issue
Rigid plastics are set to contribute to
Renewi’s organic growth plans supported
by regulation, and both market and
consumer demand. By 2030, European
regulations will dictate that 55% of all
packaging must be recycled and that
10–35% of all plastic packaging in Europe
should be made from recycled material.
The revised End-of-Life Vehicles (ELV)
Directive mandates that 30% of the
plastics from these vehicles must be
recycled, and as of 2021 European Union
member states must pay a fine of €800 a
tonne for non-recycled plastics. Due to
upcoming legislation and a continuous
growth of plastic usage we expect
demand for post consumer recyclates to
more than double over the medium term.
At the same time their scarcity will
increase prices, especially for recyclates
with high-polymer-purity that can be
applied in quality end-products.
To further increase the inbound volumes
for recycling, we see considerable potential
in extracting plastics through advanced
sorting of Commercial & Industrial waste
(C&I) and Construction & Demolition
(C&D) waste.
Key areas of focus for Renewi in this area
are producing consistent quality at the
right specification, increased sourcing of
rigid plastic waste, forward integration
in the production chain, certification of
our post-consumer input and product
chain management. For post-consumer
recycling, we will optimise our mechanical
recycling lines to sort higher polymer
purity (>95%) and increase output
volumes, collaborate in the value
chain to produce compounds for plastic
converters, deliver directly to brand
owners and work with start-ups to
improve polymer quality. We are also
investing in the sorting of mixed C&I and
C&D waste to deliver plastic feedstocks for
upcoming technologies (e.g. pyrolysis and
gasification). We collaborate with the
petrochemical industry and plastic
producers on further
pre-treatment of the feedstock.
Financial growth
supported by positive
environmental impact
Financial growth
Targeted revenue increase
in 5-year plan
€35m
• Plastics recyclate revenues
comprises Commercial Waste
Divisions and Coolrec
• Growth driven by both volumes
and pricing as a result of
increased product quality
• Management plans include
revenue growth ambition
of >100%
Environmental impact
Targeted carbon avoidance
110kT
• Plastics represent a key
opportunity for carbon
avoidance given the 100%
fossil content of virgin plastics
• Increased volumes of plastics
recycling will increase the
carbon avoidance realised
32 Renewi plc Annual Report and Accounts 2024
Zero waste solutions
Enable customers to a zero
residual waste future
Our zero-waste solutions enable customers
to reduce their waste and achieve up to
97% recycling. The growth of our zero-
waste offering is supported by legislation
as well as market and consumer demand.
Organisations are focusing on maximising
recycling and minimising incineration of
residual waste in an effort to improve their
carbon footprint and sustainability.
Growth will be realised by forming
partnerships with customers for integral
waste management programmes that
are data-driven and employee-powered.
These will take place initially in the office
environment of our clients, but over time
will increasingly be a part of the customer’s
supply chain and production processes, as
we already see in automotive and retail.
300% growth projected,
driven by long-term
customer partnerships
Financial growth
Revenue increase
€50m
• Revenue and EBIT improvements
driven by:
• Expansion of Zero waste
management services, fuelled
by accredited Zero Waste
certification, supporting
customer ESG objectives
• In-house monostream
management, collaboration
with large corporate clients
• Creating value through new
data analytics and reporting
services
Strategic report
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
33
SDGs
Our alignment to the UN SDGs
SDG 3: Good health
and well-being
“Ensure healthy lives and promote
well-being for all at all ages.”
What we do and how we do it both enable
us to contribute to SDG 3. Our operations
on recycling, avoiding landfill and
incineration, and our focus on hazardous
and non-hazardous waste, directly reduce
the incidence of deaths and illness due to
hazardous chemicals and polluted air,
water and soil.
We also regularly track a wide range of
safety KPIs and have specific goals on
safety for our people. We work hard to
promote mental health and well-being
among employees, monitoring mood and
absence rates to support and inform a
diverse range of activities and awareness
programmes that take place throughout
each year.
SDG 6: Clean water
and sanitation
“Ensure availability and sustainable
management of water and sanitation
for all.”
It’s not only our work to clean wastewater
that directly contributes to the circularity
and health of local water ecosystems. The
focus of our business on processing waste
into valuable secondary materials also has
an essential role to play in supporting water
quality – reducing pollution and minimising
the release of hazardous materials.
Making contaminated water suitable for
treatment by municipal water treatment
stations is our primary responsibility
(see more on page 39). At some locations,
we also treat wastewater to the quality
standard required for discharging treated
water into surfacewater. During FY24, we
treated 1.03 mT of wastewater, down from
1.05 mT in FY23.
SDG7 – Affordable and
clean energy
“Ensure access to affordable, reliable,
sustainable and modern energy for all.”
To increase the share of renewable
energy in the local energy mix, during
FY24 we diversified the market for
Renewi-produced biogas, adding to our
established relationship with Nordsol.
This is through a new agreement to provide
Swedish energy company Vattenfall with
7.5 million m³ of green gas.
We are also gradually transitioning
to using a higher share of renewables
by installing of renewable generation
capacity (wind and solar) on our sites,
as well as securing green electricity
certificates for grid electricity.
At Renewi, we prioritise seven of the 17 UN Sustainable
Development Goals (SDGs), launched in 2015 to “achieve a
better and more sustainable future for all” through bringing the
world together, eradicating poverty and tackling climate change.
34 Renewi plc Annual Report and Accounts 2024
SDG 11 – Sustainable cities
and communities
“Make cities and human settlements
inclusive, safe, resilient and sustainable.”
We are aligned with SDG 11, working
closely with municipalities, partners
and even competitors, on how we handle
waste in cities. We are active on many fronts
to reduce and measure urban carbon
emissions, including the transition to HVO
vehicles, the electrification of our fleet and
our work in our white label Green Collective
to reduce emissions from waste collection
in Dutch cities. Further positive outcomes
include reduced particulate matter, noise
and congestion.
During FY24, we increased the proportion
of Euro 6 zero-emission fuel trucks in our
fleet from 77% to 87%, progressing towards
our 100% target. We also continued to
work on increasing the number of electrical
EVs (electric vehicles) in our fleet. This is an
essential aspect of reducing the per-capita
environmental impact of cities.
SDG 12 – Responsible
consumption and production
“Ensure sustainable consumption and
production patterns.”
We are committed to being a leader
in recycling and in the production of
secondary materials. Our Mission 75
programme aims to increase our recycling
rate to 75%, driving us to continually
extract more recyclates from the waste
we process. This target influences all our
actions, including our work with partners
to develop sustainable innovations and
create new recycling opportunities.
Through our Mission 75 programme, we
also pay continuous attention to emerging
new legislation to promote circularity.
During FY24, despite continuous focus
on this metric, our recycling rate slightly
decreased from 63.7% to 63.2%. (see more
on last year’s performance and each
divisional’s contribution on page 37).
SDG 13 – Climate action
“Take urgent action to combat and
its impacts by regulating emissions
and promoting developments in
renewable energy.”
Our activities under our first two
sustainability pillars (Being a circular
economy change maker and Reducing our
carbon emissions) contribute to SDG 13.
Our recycling activities enable carbon
avoidance across the full value chain,
replacing precious raw materials with
recycled secondary equivalents.
Our targets for cutting our absolute carbon
emissions by 2030 (FY31) from a base year
of FY22, commit us to reducing absolute
Scope 1&2 GHG emissions by 50% and our
indirect use phase emissions (Scope 3) by
25%. The decarbonisation roadmap that
will make this happen on schedule is one
of our priorities. (see more about our
roadmap on pages 42 and 43 – “Reducing
our Carbon Emissions”).
SDG 15: Life on land
“Protect, sustain and promote
sustainable use of terrestrial
ecosystems, sustainably manage
forests, combat desertification, and
halt and reverse land degradation and
halt biodiversity loss.”
While our alignment with this SDG is
still under development, we are already
active in several related areas. Examples
include our work to create 60T of
high-quality organic compost annually
from 160T of initial green waste for UK
farmers, and in The Netherlands our
involvement in the EU-led ‘Bin2Bean’
programme to recycle bio-waste into
effective means of enriching soils for
improved biodiversity and ecosystem
health. The latter is a significant
business opportunity for Commercial
Waste Netherlands, enabling us to use
our leading waste-treatment facilities to
create tailor made organic fertilisers
and compost from kitchen and green
waste. Those new sorted volumes will
come from cities, as a new European
legislation is focused on the separate
collection of kitchens and gardens
waste streams there.
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Renewi plc Annual Report and Accounts 2024
35
Sustainability
Being a circular economy
change maker
During FY24, we extended the
external validation of our key
data beyond scope 1 & 2 carbon
emissions to cover recycling rate.
Our auditors have completed, for the first
time, a limited assurance review of our
recycling rate for both FY23 and FY24.
As a result of this exercise some of our
previously reported FY23 numbers have
been amended.
An essential step
We take the approach that best reflects
the spirit of the circular economy while
also appreciating the greater accuracy
that the Corporate Sustainability
Reporting Directive (CSRD) will
require from companies by 2025.
We’re also highly aware that fully
embedding the circular economy will
require consistent effort over the long
term. This is why we aim to fully automate
the data structure supporting our material
‘resources use and circular economy’ KPIs
under the ESRS E5 sustainability reporting
standard during the years ahead.
Seeking solutions to
complex challenges
While widespread support for the aims
and practice of the circular economy
continues, a recent report paints a
concerning picture. The Circularity Gap
Report highlights a troubling trend: the
global economy’s use of secondary
materials has decreased from 9.1%
in 2018 to 7.2% in 2023 – a 1.9% drop
over the course of five years.
Such findings make our work to prevent
the loss of valuable materials more
important than ever from a truly global
perspective. To maximise our impact,
we’ve deliberately focused our resources
and expertise on the sorting and recycling
segment of the circular economy. This
makes us the go-to source of guidance on
scaling up resources and addressing the
tough challenges so often involved in
closing the loops created by the
technological cycle.
So, in cases where options such as ‘avoid’,
‘reuse’ and ‘refurbish’ have not gained
traction, we remain committed to taking
the action needed to ensure the physical
properties of precious materials live on
to continue delivering sustainable value.
How circularity is instrumental
in addressing climate change
The way materials are managed in
the circular economy is also essential in
addressing other global challenges. This
aligns with our theory of change, that the
more secondary materials we can return
to the market, the fewer virgin materials
will need to be extracted and exploited
to deliver the same product.
Progress to date
Objective
Metric
FY24
FY23
Target
To turn our customers’ waste into new
products
Recycling rate
(% of total waste handled)
63.2%
63.7%*
75.0%
Volume of material recycled
(mT)
6.6
7.2*
Volume of waste handled
(mT)
10.4
11.2*
Carbon avoidance
(kg CO2e per tonne of waste handled)
237
232*
Innovative secondary materials produced
(tonnes)
361,796
325,990
1m
Wastewater cleaning activities
(total output in tonnes)
1,032,945
1,053,400
Production of renewable electricity
(MWh)
98,707
85,204
Low carbon footprint biogas
(m3)
6,302,324
4,787,000
*
Certain FY23 metrics have been restated following the completion of a limited assurance review.
Volume of materials handled includes all outputs and direct deliveries, and inputs in cases where Renewi site is a final destination of material
36 Renewi plc Annual Report and Accounts 2024
It’s an approach with several benefits
beyond reducing pressure on the planet’s
resources, allowing minerals and fossil
fuels to remain in the ground and reducing
the impact on fragile habitats. By avoiding
the use of virgin materials in manufacture,
we preserve valuable natural resources and
avoid millions of tonnes of GHG emissions
every year. It enables us to bring our
customers materials with a low carbon
footprint, so they, in turn, can reduce
carbon levels in their value chains.
It means we can work in-house, with
partners and via other routes to build
the infrastructure needed to grow existing
closed loops. In short, by pushing for more
circular thinking by design, we can break
the ‘disposable mindset’ that’s endemic
to society.
Recycling rate and journey towards
our Mission 75
Our recycling rate has shown a slight
decrease from 63.7% end FY23 to 63.2 %
end of FY24, after showing an increase over
the previous years. We diverted 9.7 million
tonnes of waste from landfill during
the year, significantly outweighing the
3.2 million tonnes of materials sent to
incineration for energy recovery. In total,
we successfully ensured that 6.6 million
tonnes or 63.2% of the materials we
handled contributed to material cycles,
either as ready-to-use secondary materials
or as high-quality pre-processed ingredients
for transforming the materials in our
supply chain.
In the last year, our divisions did contribute
in different ways to our group recycling
rate. The two divisions Mineralz & Water
and Specialities both delivered higher
recycling rate through several initiatives.
In Mineralz & Water, ATM contributed to
the increase with improved performance
in cleaning and treating wastewater.
Specialities significantly increased
recycling rate across the three business
activities. Both Coolrec and Maltha
performed consistently. Municipal
increased as well, due to the ending
of one contract.
The size and impact of our Commercial
Waste division did however overshadow
the positive contribution from the two
other divisions and lowered the group
performance. While the ramp up of the
advance sorting line of Ghent did start
delivering increased recycling rate
in Belgium, significant reduction of
construction & demolition volumes in
the Netherlands did generate a drop
of recycling rate.
We are further developing our Mission
75 programme, which aims to raise our
recycling rate to 75%.
In last year’s Annual Report, we described
our progress across many areas, including
investments in four key areas of innovation:
recycling plastics; deriving value from
organic waste; producing building
materials; and improved sorting of
residual waste.
This year, we’ve built further on our
achievements in all these areas, and we
describe some of the highlights here.
Driving circular advancements
Once again, plastics have been a
major focus area. One of our primary
achievements during the year was the
collaboration between our Coolrec
subsidiary and Electrolux, the world’s
largest producer of household appliances,
producing a fridge with an interior made of
70% plastics from recycled fridges.
This important world-first, which won first
prize at Amsterdam’s Plastics Recycling
Show Europe, drew on Coolrec’s advanced
sorting and sophisticated quality control
processing, as well as on their long-term
contracts with schemes in Belgium, the
Netherlands and France to source the
plastic for recycling.
New sorting lines at Acht and Ghent
In another important development that
will have a significant positive impact on
our recycling capacity, we have ramped up
our new state-of-the-art sorting line at our
site in Ghent, Belgium, to its full annual
capacity of 125,000 tonnes. This will
support the recycling of an additional 38%
of raw material from company residual
waste, bring new life to 56% of commercial
waste and extract 60,000 kg of recyclates
for use as secondary raw materials.
During FY24, we also opened another line
of the same type at our Acht site in the
Netherlands – see page 8 for full details.
Extracting value from waste MDF
In another significant breakthrough,
during the year we were involved in a
programme that has enabled medium-
density fibreboard (MDF) to be recycled
for high-quality recycling for the first time.
Based on work undertaken with partners
Gielissen and Unilin, this is now extracting
actual value from waste MDF and helping
to reduce a major constituent of
biomass incineration.
Recycling performance
Volumes (‘000 tonnes)
FY24
FY234
Total waste handled at sites
10,392
11,231
Of which
Recycled1,2
6,564
7,150
Recovered for energy production from waste3
3,161
3,393
Landfilled, incinerated with loss of energy
667
688
Recycling rate
63.2%
63.7%
1. Recycling is material given a ‘second life’ for reprocessing into new goods/materials.
2. Includes tonnages of treated wastewater.
3. Recovery is waste used for energy production, such as production of waste-derived fuels, biomass and similar.
4. Restated metric following a review of our methodologies and limited assurance.
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Renewi plc Annual Report and Accounts 2024
37
Sustainability continued
This project effectively illustrates our
continued work to divert materials away
from disposal or incineration by giving
them new life as raw materials for
products. During the year, we once again
diverted multiple materials in this way,
ranging from plastics, metal, glass, wood
and ceramics to rubble, chipboard,
drink cartons and even orange peel
and coffee grounds.
As a result, we produced 362kT of
innovative secondary materials, an 11%
increase compared with 326kT end FY23.
Looking ahead, this performance keeps
us on target to achieve our overriding
sustainability targeted scale of 1 million
tonnes annually as we continue to
leverage our internal innovation pipeline.
Developing new recycling routes
for products
This pipeline is essential to accelerate
our recycling rate. Several of these were
underway during the year. They include
Coolrec’s development of a new way of
recycling water boilers that complies with
European legislation (EN 50625-2-3).
This requires treatment plant operators
to extract, capture, and recycle or dispose
of the environmentally harmful volatile
fluorocarbons or hydrocarbons contained
in domestic boilers. Coolrec has now
developed its own systems for safely
recycling boilers, and from the end of 2024
will be capable of processing 15kT of
appliances at its site at Lesquin in France.
Outlook and future priorities
These have all been key steps on our
route to achieving Mission 75, and we
have a number of essential ongoing
priorities that have important roles
to play during our continued journey.
The first of these is the requirement to
actively source more inbound streams
of materials that are proven to require
high rates of recycling activity, including
waste from demolition and construction
projects. We also aim to sort more raw
materials from mixed residual waste.
Secondly, we’re committed to creating
plastic recyclates of ever-higher quality,
encouraging increased demand and
uptake among manufacturers. Thirdly,
we aim to expand our activities on many
fronts around the recycling of minerals,
organics and wood. Success under all
these dimensions will accelerate our
progress towards our all-important
Mission 75 goal, and we’ll continue
reporting on progress in future.
Our commitment to
carbon avoidance
Every year, Renewi prevents carbon
emissions by diverting waste from
landfill and turning it into valuable new
resources. By calculating our carbon
avoidance numbers, we see the tangible
impact we’re making on the fight against
climate change and our transition from an
economy that’s essentially based on virgin
materials to a more circular economy.
Our calculation shows us the amount of
CO₂ that using secondary materials saves
over a virgin source. When making this
measurement, however, we know not to
expect a consistently positive outcome.
There are various reasons for this. For
example, it can sometimes take less
energy to make a new material than to
recycle an old one, particularly when it
comes to plastics. Even transporting
a material to a new application can
produce more emissions than simply
letting it pile up in landfill.
However, the wide range of non-carbon
benefits to be gained through using
secondary materials massively outweigh
these occasional negative impacts – see
the graph on page 39 for the balance
between positive and negative outcomes.
In addition, we use a range of strategies
to maximise our total carbon avoidance.
Next to the production of secondary
materials, these include generating
energy from waste using landfill gas and
anaerobic digestion, we also produce
waste-derived fuels in energy production
that our customers can use to replace
fossil fuels. These include refuse-derived
fuel (RDF) or solid recovered fuel (SRF),
Renewi’s ICOPOWER® pellets, wood chips
and other biomass fuels. Waste-derived
fuels on our sites also drive our processes.
Please see page 261 and 262 for details of
Renewi’s avoided emissions, reported in
accordance with the WBCSD Guidance on
Avoided Emissions (2023).
In total, our 9.7 mT of material streams
that contributed to our net carbon
avoidance during FY24 amounted to
2.5 mT of CO2e, compared to 2.6 mT
in the previous year. In line with the
decrease of Renewi’s total volume of
materials handled between FY23 and
FY24, our total carbon avoidance
generated has also decreased.
Three essential areas of focus enable us
to progress further every year towards our
goals around creating and sustaining
a greener world based on a truly
circular economy.
Carbon avoidance in the supply chain as a result of our actions1
Volumes (‘000)
FY24
FY232
Materials separated for re-use/recycling
1,933
2,100
Waste-derived fuels produced and sold
742
740
Landfill gas/anaerobic digestion electricity production
31
37
Waste-derived fuel used at ATM
173
186
Actual emissions from incineration
(411)
(461)
Total carbon avoidance
2,468
2,601
1. Framework of disclosure around avoided emissions available on page 261 and 262.
2. Restatement of FY23 metric resulting from the limited assurance exercise on our Recycling Rate.
38 Renewi plc Annual Report and Accounts 2024
Decontaminating wastewater
The first is the action we take to
decontaminate wastewater and give it a
second life – directly and in full or partially
– and to support local municipality
wastewater facilities in first removing
the most heavily polluted share.
Renewi has the twin capability of both
removing very high levels of pollutants
and also rendering it safe for return to
local wastewater sewage systems. We
can even remove traces of fuel from water
contaminated by shipping activities and
then reuse it on site as our own source of
energy. In some locations, we are also able
to comply with more stringent wastewater
quality standards and actually discharge
treated wastewater into surface water,
directly contributing to the circularity of
water in our local ecosystem. During FY24,
we decontaminated and prepared for
reuse 1.03 million tonnes of wastewater.
Biogas production
We are also generating biogas with a
low carbon footprint. While we don’t see
creating energy as our primary focus, this is
a critical area of activity since the world’s
burgeoning reliance on energy continues
to grow as a threat to the circular economy.
Recognising how displacing fossil fuels
reduces carbon emissions, we aim to use
the highly versatile biogas generated at our
landfills and our own anaerobic digestion
facilities in three key ways.
We either transform it directly into
electricity – see below for further details –
or we sell it, either directly to the grid in
a compressed form or as a feedstock
material in the production of bio-LNG. This
emits almost no particulate matter and is
estimated to generate around 80% fewer
greenhouse gases than traditional diesel.
Breakdown of our 2.5 mT of Carbon avoidance by major category
80
20
60
40
0
-20
Recycling-based
potential
‘avoidance’
Waste-derived
fuels produced
and sold or
used on site
Anaerobic
digestion
power
generation
Landfill gas
power
generation
Actual
emissions from
incinerations
78%
37%
1%
0.3%
-17%
In a significant step forward, we launched
a new partnership in FY24 with Swedish
energy company Vattenfall to provide gas
made from food waste for use in the Dutch
national gas network. The contract will
start in FY25 and commits us to providing
more than 7.5 million m³ annually,
contributing to the Netherlands’ target
of producing 2 billion m³ of green gas
each year by 2030.
Electricity from waste
As mentioned above, producing renewable
electricity from waste is our third key area
of focus – selling to the grid any electricity
we don’t use in our own operations. So,
even though we increase the surface area
of our sites covered by solar panels every
year, the conversion of biogas from
landfills and anaerobic digestion is the
biggest contributor to our internal
electricity production.
In fact, during FY24, the 72 GWh we
produced and self-consumed from this
source covered 14% of our own electricity
demand – see page 266 for more detailed
statistics.
Outlook
As a circular economy change maker, the
impact of our waste, water, and energy
activities speaks for itself. We recycle
resources, treat and depollute water,
produce low-carbon types of energy, and
enable local communities to transition to
renewable energy instead of fossil fuels.
Renewi plays a major role in contributing
to a more circular economy and to a
low-carbon future. The avoided carbon
emissions we enable are our contribution
to the decarbonisation of our customers’
activities. Through our Mission 75 ambition,
we will continue to increase our positive
environmental impact.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
39
Reducing our carbon emissions
Sustainability continued
Each year, we give millions of
tonnes of materials a second
life, saving them from landfills
or incinerators. When doing so,
we decarbonise the trajectory
of our customers but we also
generate CO₂ emissions. Here,
we outline our efforts to reduce
our own carbon footprint.
The race to slow climate change
In today’s complex economic landscape,
prioritising the circular economy can have
widespread benefits. At Renewi, we’re
committed to investing in innovative
solutions that transform waste into new
materials, addressing various economic
and social challenges.
Addressing the climate emergency is
paramount. Carbon reduction stands
as the top priority for us, our partners,
customers, investors and governments.
Nearly a decade has passed since the
adoption of the Paris Agreement, aiming
to limit global temperature rise to 1.5ᵒC
by 2050’s end. The pursuit of effective
solutions to combat climate change is
more crucial and challenging than ever.
Many signatory governments
acknowledged at the time that the targets
set in Paris wouldn’t limit temperature
rise to 1.5ᵒC. This reality is now widely
accepted. While halting climate change
is deemed unattainable, our collective
goal is to slow its pace. However, the
independent Climate Action Tracker
warns that even if all pledges are
honoured and targets met, the world is
projected to warm by around 2.1ᵒC by
2100 – potentially reaching up to 3.4ᵒC.
The implications of this scenario are
staggering. Despite promises made at
the Glasgow Climate Summit over two
years ago, warming projections show no
improvement. FY24 witnessed numerous
extreme weather events globally, yet
governmental policies remain largely
unchanged. COP28 in Dubai sparked
controversy over fossil fuel commitments,
with some advocating for “phasing down”
rather than “phasing out.” UN Secretary
General António Guterres emphasised the
inevitability of the fossil fuel phase out,
urging prompt action. It’s evident that
global action to phase out fossil fuels
and embrace low-carbon solutions is
imperative, with time running short
it’s crucial that action is taken.
Our goals and metrics
At the end of FY23, we committed
ourselves to setting near-term science-
based targets, to be validated by the
Science Base Target initiative (SBTi).
Our specific carbon-reduction target is
to reduce our absolute Scope 1&2 GHG
emissions by 50% before the end of 2030
(FY31), using FY22 as our baseline. It also
includes a commitment to reduce our
Scope 3 emissions by 25% over the
same timescale.
Progress to date
Objective
Metric
FY24
FY23
FY22
2025 Target
(FY26)
2030 Target
(FY31)3
Reduce our carbon footprint
Absolute carbon footprint Scope 1 & 21,5
(kT of CO2 e)
577
604
631
536
(-15%)3
315
(-50%)3
Absolute carbon footprint Scope 3
(mT of CO2 e)
–2
1.3
1.2
0.9
(-25%)3
Be a leader in clean and green
waste collection
Carbon intensity collection1
(kg CO2 per tonne of waste collected)
13.3
12.9
–
Share of Euro 6 trucks
(% of total fleet)
87%
77%
67% 100% 100%
EV (electric vehicle) trucks
(number)
12
4
2
65
Reduce the carbon impact of
our operations
Carbon intensity of our sites1
(kg CO2 per tonne of waste handled)
7.8
8.1
–
Share of renewable energy used on site1
(% of renewable electricity out
of total electricity use)
45.9%
35.0%
32.7%
50% 100%
Hybrid or electric lease cars
(% (PH)EV vehicles out of total fleet)
–4
38%
39%
40%
50%
1. Certain FY23 metrics have been restated following further limited assurance work.
2. To be reported through our 2024 CDP disclosure (Climate Change questionnaire).
3. Reduction target vs baseline year FY22.
4. KPI not measurable this year due to lack of reporting data from service provider.
5. Please refer to the methodology notes on p. 263 for the detail on limitations of the calculation approach applied.
40 Renewi plc Annual Report and Accounts 2024
During the year errors were identified in the
data submitted for the limited assurance
exercise completed last year. As a result the
assurance exercise for Scope 1 and Scope 2
for FY23 and FY22 has been re-performed
this year, along with FY24. As a result
previously reported FY23 and FY22 have
been amended. Our total Scope 1&2
emissions from our baseline year FY22 was
restated to 631 kT. Our absolute 2030
(FY31) carbon-reduction target is now of
315 kT, around which we have built our
carbon-reduction strategy.
The table “Absolute carbon footprint Scope
1,2 and 3” provides a detailed overview of
the three primary sources of greenhouse
gases (GHG) that relate directly to our
operations. The related emissions are
those from our:
• own onsite industrial processes;
• fleet and other logistics activities; and
• onsite energy usage.
We have a set of KPIs that act as levers to
drive the decarbonization of our activities.
Our two carbon-intensity KPIs and
associated sub-targets help us address
Absolute carbon footprint Scope 1, 2 and 3
Renewi
(incl. UK)
FY24
UK only2
FY24
Renewi
(incl. UK)
FY23
UK only2
FY23
Scope 1
Anthropogenic emissions
356
19
375
20
Process emissions (kT CO2e)
240
15
253
16
Fuel combustion (kT CO2e)
116
4
122
4
Fuel consumption on sites only (Fuel: diesel, gas, other)
34
3
39
3
Fuel consumption in the logistic (Fuel: diesel, bio-LNG, other)
82
1
84
1
Biogenic emissions from processes and combustion
(kT CO2)
179
62
182
64
Total Scope 1
535
81
557
84
Scope 2
Emissions from purchased electricity1 (market-based) (kT CO2 e)
42
8
47
11
Emissions from purchased electricity1 (location-based) (kT CO2 e)
44
7
45
6
Total Scope 1&2
(considering market-based emissions from purchased electricity) (kT CO2 e)
577
90
604
95
Total Scope 3
mT CO2 e3
*
*
1.3
0.1
1. Renewi does not currently procure any other form of energy than electricity. Heat and steam are generated on premises where applicable therefore accounted for in Scope 1.
2. As per SECR Regulation.
3. Including categories 1, 2, 3, 5, 6, 7 and 15.
*
To be reported through our 2024 CDP disclosure (Climate Change questionnaire).
Strategic report
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Renewi plc Annual Report and Accounts 2024
41
Sustainability continued
those operational GHG contributors over
which we have the greatest influence and
can control on a daily basis.
The first, ‘carbon intensity of collection’,
addresses the emissions generated from
the consumption of fuels and electricity
per ton of waste transported in our
logistics operations. The second, ‘carbon
intensity of our sites’, considers the
emissions from our consumption of
diverse onsite energy sources per tonne
of waste handled. We track these two
KPIs, enabling us to use them as
primary measures of the efficiency and
performance of our energy usage while
moving waste or transforming it into
valuable secondary materials.
Additionally we’ve articulated four
sub-targets to drive the reduction of these
carbon intensity KPIs. Daily, connecting
the dots between these sub-targets and
our absolute carbon reduction target
helps our employees understand
operational choices and how they
contribute to our company’s goals.
• To enhance the reduction of the
“carbon intensity of collection” KPI,
we are working on increasing the
proportion of EURO-6 trucks within
our fuel-powered fleet. Our target is to
reach 100% by 2025 (FY26). And we are
also electrifying the fleet with a target
of 65 electrical vehicles within the two
commercial waste divisions by 2030.
• The ‘’carbon intensity of our sites” KPI
is also supported by two sub-targets.
The first KPI focuses on reaching 100%
of renewable electricity used on site,
whether purchased or self-produced
and consumed. Our second sub-target
aims at increasing the share of hybrid
and/or electric lease cars for our
employees to 50% of the fleet by 2030.
To support reaching that target, a new
HR policy was introduced last year to
start only providing electric lease cars
to employees when lease car’s
contracts are renewed.
The largest share of GHG arising from
our activities originates from our process
emissions from our manufacturing
activities, including anaerobic digestion,
mechanical biological treatment and
landfill activities. Emissions are also
generated by the incineration of specific
kinds of waste using a specialist incinerator
at our Mineralz & Water division’s ATM site.
Our remaining emissions are linked to
routine or waste-specific onsite activities,
including potential fugitive emissions
from coolant recovery at our Coolrec sites.
Such emissions are driven by the volumes
we process. Higher efficiency of processes
and upgrade of technologies can help
small reductions. Gaining a significant
reduction of that type of emission remains
therefore a challenge. Technologies such
as carbon capture are one of the key
solutions of our decarbonization plan.
Our performance in FY24
Thanks to great effort to work on our
carbon-intensity KPIs and the associated
sub-targets, our absolute carbon
emissions have decreased from 604 kT
previous year to 577 kT of CO2e by the
end of FY24. Since FY22, we have been
decreasing our total carbon footprint by
4% year on year. This steady decrease has
been delivered through a progressive
reduction of emissions from our three
main sources of GHG.
We have been making progress on
reducing the carbon intensity of our sites
KPI by increasing the share of renewable
electricity used on site from 35% up to
45.9% end FY24. Which is putting us on
track to reach a total share of 50% within
two years’ time. This, combined with our
continuous improvement’s activities and
focus on optimizing our energy usage,
and despite a 1.6% increase of energy
consumption on site, has largely
contributed to a lower carbon intensity
of our sites KPI which slightly decreased
from 8.1 to 7.8 kg of CO2 per tonne of
waste handled.
Looking at our collection’s activities, we
have been making progress in transforming
our fleet. The share of Euro 6 trucks
increased from 77% up to 87%. Our fleet
has also welcomed 8 new electrical
vehicles in the last year. However, this
progress on our two sub-targets was not
reflected in a lower carbon intensity in
collection KPI, which increased from 12.9
to 13.3 kg of CO2 per tonne of waste
collected. More attention to routes’
efficiency, trucks’ loads and
transportation activities between our own
sites will be needed in the coming year.
Our decarbonisation roadmap
For us to help decarbonise our industry
to the greatest possible extent, we need
to completely shift away from the use of
fossil fuels. This truth is at the heart of our
roadmap, which alongside its focus on
onsite and transportation-linked energy
consumption, also identifies a wide range
of further carbon-reduction initiatives
across our divisions. Naturally, these are
designed both to meet the specific needs
of our business and to align with different
national regulations and other requirements.
42 Renewi plc Annual Report and Accounts 2024
Reducing our carbon footprint in the
collection of waste
The transformation of our fleet is critical.
Several initiatives are being considered in
order to articulate and phase short term,
medium term and long term emissions
reduction solutions. In the Netherlands
and Belgium, two levers are considered in
parallel. On one side, switching to HVO fuel
from waste origin is seen as a transition
strategy that will allow GHG reductions in
scope 1 and scope 3 simultaneously while
planning for further electrification of the fleet,
which requires first to secure grid connection
and on-site electrical infrastructure.
Reducing our carbon footprint on site.
Our ambition to reach 100% renewable
electricity by 2030 (FY31) is already
supported every year with increased
self-production of electricity. For all
purchased electricity, we plan to purchase
green electricity through green certificates
for the coming few years.
It is foreseen that our total electricity
consumption will still increase from the
electrification of our fleet and the phase
out of fossil fuel. On-site self-production
could become strategic to secure stable
pricing. We are currently investigating
which other sites after Ghent (and the
tallest windmill in Belgium) could
contribute to our self-production ambition.
In parallel, all our teams are working
in building and enriching sobriety and
efficiency plans next to the creation of a
plan to electrify yellow and white goods.
Total energy balance by usage location
Megawatt hours (MWh)
FY24
Total
FY24
excl UK
FY24
UK
FY23
Total
FY23
excl UK
FY23
UK
Energy demand of sites
392,570
339,765
52,805
386,577
333,092
53,484
Electricity purchased
165,618
132,738
32,879
172,673
139,965
32,708
Own electricity production
58,342
51,710
6,632
25,526
18,276
7,249
Fuels
168,611
155,317
13,294
188,378
174,851
13,527
Of which natural gas
82,097
77,482
4,616
89,509
84,599
4,910
Energy demand of fleet (cars and trucks)
338,071
334,441
3,629
339,881
336,114
3,767
Electricity purchased
1,620
1,620
0
1,353
1,353
0
Fuels
336,450
332,821
3,629
338,528
334,761
3,767
Total energy demand
730,641
674,206
56,435
726,458
669,206
57,252
Reducing our process emissions
Reducing process emissions remains a
challenge. Through our activities, we deliver
environmental benefits in processing and
treating waste, we enable carbon avoidance
in the value chain, and we ensure that
contaminated or hazardous waste is taken
away from the environment. Technologies
such as carbon capture are one of the key
solutions of our decarbonisation plan. We
are currently investigating the feasibility of
such technologies within our operations.
Outlook
Looking ahead, we remain on track to
reach our short-term carbon reduction
target by 2025 (FY26). The coming years are
going to be pivotal in determining and
implementing the right transformational
and technological solutions to halve our
carbon footprint by 2030 (FY31). We are on
a journey to continuously drive our business
performance and to have the greatest
possible long-term positive environmental,
social and economic impact.
The positive impact from our industry
is major. Ensuring that most secondary
materials will soon supersede virgin
materials is playing an essential role
in slowing down climate change.
Strategic report
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Renewi plc Annual Report and Accounts 2024
43
Caring for our people
and ecosystems
Sustainability continued
Safety first:
our zero-accidents ambition
Safety is our top priority at Renewi,
and during the year we have continued
to focus our attention on creating a
zero-accident culture at every level of the
organisation. Our most important efforts
have been on ensuring that all our sites
are safe, starting with the shopfloor where
the risks are at their greatest. We have
therefore delivered several programmes,
including the Site Traffic Plan designed
ultimately to eliminate risk in those
environments where our people work
in close proximity to vehicles and
other machinery.
At the most senior level of the business,
we also rolled out our safety leadership
programme. Our Executive Committee took
part in the programme and participated
in the first sessions conducted with the
divisional management teams. During
the year, more than 200 of our leaders
participated in this 2.5-day modular
programme, representing a significant
investment in our leadership teams.
Our focus now is on the development
and delivery of programmes designed to
strengthen and sustain our safety culture
at all levels of the organisation. As part of
this, the top leadership teams within each
division have also been participating in
discussion sessions on the following themes:
• Clear roles and expectations
• Seeing risks and acting accordingly
• Facilitating safe working
Gaining insights and conducting
constructive discussions on a diverse
range of safety, health, environment and
quality (SHEQ) topics with our leaders
enables us to take the next step in the
development of our safety culture,
which will be to roll out the programme
to more of the operational leaders within
the organisation.
Such initiatives are part of a significant
cultural development at Renewi, in
line with our organisation-wide Safety
Strategy, which has ‘Zero Accidents’ as its
ultimate objective, resulting in a working
environment that is guaranteed to be safe
for all.
Progress to date
Objective
Metric
FY24
FY23
2025 Target
Deliver people home safe and well
every day
Lost time/injuries rate (LTIF)
(number LTI x1’000’000)/number of hours worked
6.8
9.4
7.0
(Target year:
FY24)
Employee mood
(‘mood’ score in Pulse)
7.4
7.4
7.5
(+5%)1
Healthy at work rate
(% healthy employees)
94%
92%
96%
Make Renewi a rewarding, diverse and
inclusive working environment
Employee engagement
(eNPS score in Pulse survey)
+23
+22
+30
(doubled)1
Females in higher management
(% of all employees)
23%
24%
30%
(+10% pts)1
Positively impact our communities
Number of complaints
(number of complaints received annually)
63
133
Major environmental incidents and major fires
(absolute figure)
2
3
0
1. Versus baseline year FY20.
44 Renewi plc Annual Report and Accounts 2024
Renewi has been implementing the
International Sustainability Rating System
(ISRS) since 2022 to identify and adopt
best-in-class safety practices, including
those from beyond our own industry.
The system comprises three key elements:
a culture of safety leadership and risk
awareness; investments in the right tools
and equipment; and the management
systems, standards and rules necessary
for a safe workplace.
As part of our ISRS implementation, we
also completed the development of our
12 shared Renewi standards, including
Permit to Work and Management of
Change. Training is now well underway
across our divisions, and divisional action
plans are being cascaded down to site
level. Looking ahead, our focus for the year
to come will be on measuring our progress
and seeking new opportunities for
continuous improvement.
We are committed to the continual
progress of this strategy, and during FY24
we delivered a range of tactical elements,
including the launch of our Work Safe
awareness campaign. Risk awareness is
crucial for our employees. During the year
we emphasised its importance to our
colleagues through dedicated training and
best practice knowledge-sharing sessions.
Delivering people home safe and well,
every day
Ensuring that everybody connected
with Renewi returns safely to their homes
and loved ones every day is at the heart
of our safety culture. Everything we have
described above contributes strongly
to this core principle, and as part of our
day-to-day routine we carry out many
actions to reinforce our safety culture and
reduce the number of harmful incidents
across the business.
As mentioned above, site safety is critical
to our business. Traffic-related issues
were risk assessed by a multidisciplinary
team (operations and SHEQ) on all our
operational sites. These risk assessments
resulted in a revision of the formal traffic
management plan, in which adequate
systems, physical controls, and procedures
to control the risks are documented.
We have invested in the delivery and
realisation of these plans in FY24
to ensure an environment where
pedestrians and vehicles will not collide.
We regularly measure three key metrics
relating to the health and happiness of our
people – the lost-time injury rate (LTIF),
employee mood, and the healthy at
work rate.
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Renewi plc Annual Report and Accounts 2024
45
Sustainability continued
Last year’s trends of our LTIF and the total
sickness rate1 are displayed on the two
charts above.
Due to our commitment, effort and
continuous focus on safety and health,
we have managed to successfully lower
our number of recorded injuries. Our LTIF
has decreased from 9.4 to 6.8, which
is below our FY24 target of 7. A great
collective achievement. In the coming
year, the SHEQ team will work on
continuously pursuing a lower LTIF and
on defining our next safety target towards
2030 (FY31). We have completed for the
first time a limited assurance review of our
LTIF which covered both FY24 and FY23.
On top of the implementation of the first
six ISRS elements together with Renewi
standards, the following three behavioral
8
6
4
2
0
Q1
2024
5.30%
Q2
2024
Q3
2024
5.20%
5.93%
Q4
2024
5.77%
LTIF rate during FY24*
10
9
8
7
7.0
6
5
Q1
FY24
FY24 Target
Q2
FY24
Q3
FY24
Q4
FY24
Total Renewi sickness rate during FY24*
drivers have played a major role
in focusing on managing risks and
prevention: better definition of roles
and expectations to drive a safety culture,
improved awareness of health and safety
related topics, constructive dialogues
amongst teams.
Making Renewi a rewarding, diverse
and inclusive working environment
Our ability to adapt to changing market
conditions and transform our businesses
to meet customer needs is one of Renewi’s
key strengths, underpinning the delivery
of our growth strategy.
In FY24, we laid the foundations for
growth in our core markets by ensuring
our businesses were right-sized and fit
for purpose. This involved introducing
efficiencies and preparing the ground
for growth in various markets by engaging
in several change programmes, including
Simplify and Future Fit, and these
programs will be our focus for the future.
We have also supported our business
managers in dealing with continuous
change and, in some cases, replaced
senior management to ensure our
organisation is fit for the future.
Diversity and inclusion
Diversity and inclusion is an important,
ongoing part of our culture and
hiring practices. Raising awareness of
unconscious bias is part of our standard
training for Renewi managers and leaders,
and a structural part of the recruitment
process. Our Diversity & Inclusion targets
include achieving a 75/25 male/female
employee ratio and we aim to create an
1. The healthy at work rate is calculated by deducting the sickness rate from a total of 100%.
*
Both metrics generated on a rolling 12 months basis
46 Renewi plc Annual Report and Accounts 2024
inclusive culture for all. In the coming year
we will improve our efforts to attract and
retain more women in leadership functions
by improving the recruitment of our top
level functions and by setting up mentoring
programs. Full breakdown of employee’s
gender diversity is detailed on page 270.
At Renewi, we are proud to also be a
multinational and multicultural collective
of people. With more than 70 nationalities
within our permanent workforce1, we
celebrate and appreciate differences as
we work together every day. Each year, one
D&I day is organised around a new theme.
Our last three themes were: discussing our
differences, traditions and celebrations
and “what is your own super power?’’.
Equipped to make an impact,
every day
We develop our employees to become
the best they can be and help deliver our
vision: to be the leading waste-to-product
company in Europe.
We are now optimising our personnel
development plan and will offer a
programme to all our employees as
an integral part of our performance
management cycle. This includes expanding
our suite of learning opportunities to
provide training in the three areas of
the 70-20-10 learning principle, which
states that 70% of learning is gained from
on-the-job experience, 20% from feedback
and 10% from training.
We are also ensuring that our operations-
based employees achieve a Licence to
Operate certificate, to prove that they
have the mandatory knowledge and skills
to carry out their work efficiently and safely.
Nurturing talent
Our employees are our most important
asset, and we want to give them the space
and support that allows their talent to
flourish. Our talent function is designed
to help our people develop their potential
in roles that match their strengths, for
example, by becoming an expert in
their field or a future leader.
Annual talent reviews are conducted for
all office-based employees above a certain
grade. We then actively use the data from
this review to conduct a career
conversation with the employee, create
their development plan, and provide them
with appropriate career opportunities.
We also hold Talent Board lunches
where selected employees meet with
Board members to discuss aspects of the
business. This open dialogue is invaluable,
both in bringing to the Board knowledge
and ideas from different parts of the
organisation and in giving employees
the opportunity to learn more about
what the Board does and suggest
ideas to the Directors.
In addition, we continue to ensure the
next generations of remarkable people can
find their place in Renewi: we do this by
providing management traineeships and
internship programmes to junior talent.
Developing leaders
In 2024, we will launch the first level of a
new leadership development programme
tailored to each leader’s specific level. This
will replace the previous programme, LEAD.
The new programme will define a
leadership success profile, which outlines
what successful leadership looks like at
each of our five leadership levels. Leaders
will be given a 360-degree assessment and
a leadership curriculum to help them work
on the skills they need to develop.
We are further supporting our leaders by
optimising the way we recruit, onboard,
develop and oversee the performance
and health of our employees. Part of this
is the annual People Leader Essentials
programme, which gives our new and
existing leaders both the knowledge and
the skills to support employees at every
stage of their engagement with Renewi.
We are also continuing our two-year Future
Leader Journeys development programme,
which is designed to help early-career
employees with leadership potential
develop the skills they need to become
future leaders. The pilot of this programme
gained very positive feedback and resulted
in 9 out of 12 young leaders moving into a
leadership role.
Labour market
The shortage in the labour market has
been challenging, but we have achieved
great results from projects and focused
campaigns designed to attract employees
with specific skills we need, such as drivers.
We continue to build our employer
brand and engage potential employees
by communicating our purpose, growth
and career opportunities – as well as our
working-from-home policy and company-
wide grading – using a range of platforms
from job websites to social media,
including TikTok.
1. Operations-based employees in France and Portugal are not included in the generation of this figure.
Strategic report
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Renewi plc Annual Report and Accounts 2024
47
Sustainability continued
We hired 887 people in FY24, 22.3%
of whom are women. 19.7% of our
vacancies were filled by internal
candidates, while 743,000 potential
candidates viewed us on careers websites.
We are living in a time when workplaces
include employees from a wide span of
generations, each with different needs
and expectations of what they want from
work. Our approach to the labour market
is to reach out to all generations to inform
and educate them about what we do, and
excite and inspire their interest in the
areas that might interest them.
Healthy employees
In 2023, we rolled out our health
programme Renewi Vitality in both
the Netherlands and Belgium. This
programme has been translated into
three practical pillars for employees:
• Feeling good about yourself,
which discusses the benefits of
both physical and mental health
• Working in balance, which offers
advice on how employees with a
good work-life balance create a
healthy working environment
• Ready for the future, which is about
“working sustainably”. This addresses
both physical and mental health for
today and tomorrow. And it addresses
as well the learning and development
needs to be employable in the future,
when different skills and competencies
might be required.
In 2023, the focus for Renewi Vitality
was on physical strain, which had been
identified as the number one cause of
absenteeism within Renewi. Three target
groups were identified. We rolled out a
series of initiatives to help employees in
these groups avoid and manage physical
strain. We also launched a refreshed
online portal in the Netherlands, where
employees can find coaching and training
programme and “take control of their
own vitality”.
In parallel of this programme, we also
developed a Renewi Vitality card game
to help managers raise awareness and
facilitate discussions with every employees.
In recognition that last year’s economic
situation caused unexpected financial
stress for some colleagues, we set up the
Renewi Social Fund. Employees who are
faced with an unexpected financial
emergency that they could not have
foreseen can apply for an allowance
from the fund.
The healthy at work rate for FY24
is 94%
We want to nurture the wellbeing of
everybody at Renewi. If anyone has a
health issue – be it physical or mental –
we will try to find them alternative
activities that better suit their condition,
support their health and reduce the
chances of them becoming ill.
The healthy at work rate1 is calculated by
deducting the sickness rate from the total
number of employees expressed as 100%.
The sickness rate is an average of all
sickness rates recorded since July 20232.
Harmonisation and digitisation
An important part of our culture is
providing fair and equal rewards and
conditions for all our employees. As we
grow, particularly through inorganic
growth, we take care to make sure
conditions are harmonised across
our operations.
After harmonising most of the labour
conditions of our employees in the
Netherlands, we focused in 2023 on
harmonising the rewards of the largest
group of employees in Belgium –
the non-office-based employees
of Commercial Waste Belgium. We
minimised the number of variations in
reward policies with the consent of the
unions after a challenging negotiation
process. In co-operation with union
delegates, we then informed all
employees of the changes and individual
impact. Our employees in Belgium and
the Netherlands can now be confident
that we offer everyone fair and equal pay
for similar work. We have also simplified
rewards, and enhanced data quality and
process efficiency.
Our final step will be to simplify and
unify rewards for the remaining office and
non-office-based employees in Belgium
and harmonise the reward policies of our
employees in France and Portugal. For
those whose rewards have not yet been
harmonised, we will use employee and
manager self-service tooling until full
harmonisation is completed.
As a result of this harmonisation of
rewards and policies, we were able to
successfully implement Workday, a single
HR system for all employees, and began
using its core modules in June 2023.
Approximately 4,000 employees then
began using this software to manage
absences, annual leave, expenses and
salary information.
Harmonising data and reporting for
the entire Renewi Group represents a big
step forward. All HR data in this report is
drawn from data in Workday. Our use of
the software can also be expanded if we
extend operations into different countries.
Positively impacting our
communities and ecosystems
wherever we operate
Being a positive force in the communities
where we operate is at the heart of who
we are and what we do. That’s why we
work so hard to minimise the impact of
our operations on local communities
and to make people’s lives better.
We know that processing discarded items
can have a significant community impact,
which is why managers across our 154
sites and their local SHEQ (Sustainability,
Health, Environment, Quality) leaders
maintain an open dialogue with their
1. Operations-based employees in France, Portugal and Belgium are not included in the figures because they are not recorded in Workday software.
2. The average was calculated between June 2023 and March 2024. The averages of April and May cannot be included since Workday software was not introduced until
June 2023.
48 Renewi plc Annual Report and Accounts 2024
local communities. If a complaint
arises, they quickly collect, identify
and understand any concerns. And
when there is a need to take corrective
action or manage an incident, they
always implement a specific plan while
maintaining open communication
on status, progress and next steps.
Our SHEQ team reports on and tracks
the number of complaints each quarter,
registering them in our central system
along with the actions taken. The number
of complaints reduced by half in FY24,
thanks to our focus on investing in
technology, staff awareness training
and active communication with
communities and the regulators.
Everywhere we operate, we report on any
significant environmental incidents that
may occur, covering any incidents that
take place on site and have an impact on
the local environment and vicinity of our
operations. Major risks in the waste
industry include fires and spills or
emissions to soil, water and air. We have
undertaken measures to address these
risks, including improvements to waste
storage and investment in technology.
During FY24, there were no major
environmental incidents reported.
We did suffer from two fires, down from
three in FY23, and significantly below the
19 events in FY22. We therefore remain
on track to meet our FY25 target of zero
major environmental incidents and fires.
We are not complacent though due to our
awareness of the growing threat of fire
represented by lithium batteries and vapes.
We also work with the wider industry and
our regulators to improve legislation on
handling dangerous waste, as well as aim
to educate community members around
separation and enforcement, to ensure
that waste arriving on site is as safe
as possible.
Integrity and Code of Conduct
Integrity is an important topic within
Renewi. We have a group-wide Code
of Conduct in place which can be found
on our company’s website (https://www.
renewi.com/en/our-policies). Renewi’s
Code of Conduct is the compilation of i.a.
(I) our commitments:
• Against forced labor and child labor,
• Against bribery, corruption,
discrimination and unethical
business practices; and
(ii) our core values, mission and vision.
Renewi’s Code of Conduct not only
specifies what conduct is expected
of Renewi employees but also what
employees can expect from Renewi.
Statutory framework
Renewi’s Code of Conduct is an adjunct to
national and international legislation and
regulations. Renewi’s Modern Slavery
Statement can also be found on our
company’s website.
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Other information
Renewi plc Annual Report and Accounts 2024
49
Ratings and frameworks
We use the advice and insight
gained from third-party ratings
and standards to measure and
guide our ESG performance.
This ensures we are always
benchmarked to current best
practices in management to meet
stakeholders’ expectations.
Recognition of our work
Our work was acknowledged with several
awards in FY24. In Belgium, we won the
Trends Impact Award in the Circular
Economy category, which recognised
our innovative sorting installations and
compliance with VLAREMA 8 legislation.
Meanwhile, Coolrec won first prize at the
Plastics Recycling Show Europe for its
refrigerator made with recycled plastics
and, at Express PME Caixa, Maltha took
the PME Revelation award in the Energy
and Environment activity sector,
recognising its commitment to the
circular economy.
ESG accreditations and ratings
GRI
Renewi reports on its non-financial
metrics with reference to the GRI. This
important international benchmark is
one of the criteria for UN Global Compact
membership and is recognised as best
practice for non-financial reporting.
The GRI standards we report on include
emissions, energy consumption, diversity
and safety. You will find the GRI content
index on p272.
UN Global Compact
Renewi is an Advanced level reporter of
progress towards the UNGC Ten Principles
and has pledged to continuously pursue
improvements in the key areas of the
environment, human rights, labour and
anti-corruption. You can find the relevant
UNGC disclosures on p273.
TCFD
We are working towards full adoption of
the guidance and further improving our
understanding of climate-related risks
and opportunities. You can find the
section on TCFD on p78 in the
Risk section.
CDP
We have been participating in the largest
corporate disclosure project for several
years1. In FY24, we maintained the score C
for our corporate transparency on climate
change, having seen an improvement in
the scoring of the underlying score
elements versus last year.
SBTi
In 2023, Renewi committed to submit
near-term targets to the SBTi. This is
the first step towards our net zero carbon
emission reduction goals for meeting the
maximum 1.5°C global warming target,
as set out in the Paris Agreement.
Renewi is currently waiting for its targets
to be reviewed and approved by the SBTi.
S&P
S&P global ratings have in prior years
recognised the sustainability-oriented
business model of Renewi, our
contribution to the circular economy
and our efforts to lower GHG emissions.
In FY23, in contrast to previous years,
our sustainability rating decreased
significantly, and we are investigating
the reasons behind this result. Going
forwards, we aim to address any
perceived issues and return to the
higher rating ranges.
C
33
Guidance
Performance scores
1. To learn more about CDP scores,
visit https://www.cdp.net/en/scores.
50 Renewi plc Annual Report and Accounts 2024
ISO
100% of our Commercial Waste
and Specialities sites and 86% of our
Mineralz & Water sites are certified under
the ISO 14001 standard for environmental
management and certification is planned
for one remaining uncertified M&W site.
ISAE
Our Scope 1&2 emissions have been
limited assured under the ISAE 3410
standard since FY22. This year, the
assurance for FY22 and FY23 was reissued
following retrospective data corrections.
CO2 Performance Ladder
The Dutch government has endorsed
this carbon management system and it is
now being adopted in Belgium and other
countries. Thanks to the standardisation
of our GHG calculation carried out in FY23,
Renewi was able to extend its CO2
Performance Ladder certification by SKAO
(Stichting Klimaatvriendelijk Aanbesteden
& Ondernemen) to the entire non-UK
business in FY24.
Renewi proudly maintains Level 4
certification out of 5 levels available.
PSO Ladder
The Performance Ladder for Social
Entrepreneurship (PSO in Dutch) has
been developed to provide insight into
the extent to which companies contribute
to the employment of people with a
vulnerable labour market position.
The Performance Ladder has 5 levels:
Aspirant, Basis, Level 1, 2, and 3.
Renewi’s activities in the Netherlands are
certified Level 1.
LSE Green economy mark
Renewi continues to be recognised by the
LSE as one of the issuers driving the green
economy in the FY24 cohort.
EcoVadis
This platform evaluates the quality of
sustainability management in our local
entities, focusing on policies, procurement
practices, labour standards and other
responsible business aspects specific
to the size and location of the entity,
with an industry-specific angle.
Our Commercial Waste divisions have been
both awarded a silver medal with a score
of 55/100 in Belgium and 66/100 in
the Netherlands
FTSE4Good
Renewi maintained its position on the
FTSE4Good index for the 5th year running
in FY24.
Audits and validations
Stock market
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
51
KPIs
Measuring our performance
Revenue
€1,689.2m
Revenue from continuing operations down year
on year by 1% given overall volume declines
particularly in Commercial Waste Netherlands
despite the impact of price increases.
Underlying EPS
61 cents
In line with the lower profit in FY24, underlying
EPS from continuing operations dropped from
89 cents last year to 61 cents.
Underlying EBIT
€105.5m
The decline in underlying EBIT from continuing
operations is driven mostly by construction and
demolition volumes along with lower recyclate
prices. Positive action from the recent Simplify
programme and a strong performance at ATM
and Maltha have not been able to compensate
the shortfalls in Commercial Waste division. The
Simplify programme will be beneficial to FY25.
Return on capital employed
7.7%
A decline year on year for ROCE on a total
operations basis given the loss for the year
including the impact of the UK Municipal exit.
Statutory loss
€30.9m
An overall loss of €30.9m for the year as a result
of accounting for the UK Municipal business
as asset held for sale which has led to an
exceptional charge of €64.5m.
Leverage ratio
2.14
Leverage ratio closed the year at 2.14 times,
an increase from March 2023 given a higher
average of core net debt following the prior
year acquisition of Westpoort and reduced
EBITDA given the current year performance.
Strong cash actions in the last quarter
helped the year end position.
Unless otherwise stated, all financial results throughout this report
are shown without UK Municipal, as these activities are classified as
“Asset Held for Sale”. Non-financial metrics are shown including
UK Municipal.
Financial
FY22
FY23
FY24
1,689.2
1,703.9
1,652.9
FY22
FY23
FY24
61
89
109
FY22
FY23
FY24
7.7
10.6
11.6
FY22
FY23
FY24
2.14
1.83
1.44
FY22
FY23
FY24
105.5
131.7
140.9
FY22
FY23
FY24
(30.9)
66.6
75.4
*
The definition and rationale for use of non-International Financial Reporting Standards (IFRS) measures are shown in note 8.3 in the consolidated financial statements.
52 Renewi plc Annual Report and Accounts 2024
Absolute carbon footprint
scope 1&2 (kT of CO2e)
577kT
We have delivered an 8% decrease in our scope
1&2 carbon emissions from our baseline year
FY22. A steady decrease delivered through a
continuous reduction of emissions from our three
main sources of GHG. Our ambition is to halve
our absolute carbon footprint Scope 1&2 by
2030 (FY31).
Lost time injury rate
(LTIF)*
6.8
Due to our commitment, effort and continuous
focus on safety and health, we have managed to
successfully lower our number of recorded injuries.
This year, our LTIF has decreased from 9.1 to 6.8,
which is below our FY24 target of 7. A great collective
success. In the coming year, the SHEQ team will
work on continuously pursuing a lower LTIF and
defining our next target toward 2030 (FY31).
Recycling rate
(%)
63.2%
Our industry-leading recycling rate has seen a
slight decrease in FY24 to 63.2% primarily due to
the overall volume decline seen in Commercial
Waste Netherlands, overshadowing greater
recycling rate from both M&W and Specialities
divisions.
Carbon intensity in collection
(kg CO2/T of waste collected)
13.3kg/T
Reducing our carbon footprint in the collection
of waste is driven by increasing route efficiency,
fuel and driver efficiency and the electrification
of our fleet. Despite continuous efforts, this KPI
has seen an increase from 12.9 to 13.3 kg of CO2
per tonne of waste collected in FY24.
Employee engagement
(eNPS score in pulse survey)
+23
We are focused on positioning Renewi as a
leading company to work for in the circular
economy. We have conducted three Pulse
surveys this year, and our eNPS score has
increased from +22 to +23, with a target
of +30 by 2025.
Carbon Avoidance
(kg CO2e/T of waste handled)
237kg/T
We prevent carbon emissions by diverting
waste from landfill and turning it into valuable
new resources. In FY24, we avoided 2.5 mT of
carbon emissions, which equals to 237 kg of
CO2e per tonne of waste handled.
Share of renewable energy used
on site (%)
45.9%
We are making progress in lowering our
on-site carbon emissions by reducing energy
consumption, increasing our own production
of renewable energy (solar, wind, energy from
waste) and by prioritising the purchase of
renewable electricity. Our target is to reach
50% by 2025 (FY26) and 100% by 2030 (FY31).
Women in leadership
(%)
23%
After making good progress with our Diversity
and Inclusion strategy in the previous years,
we have seen a one-point decrease of women
in leadership positions this year, to 23%.
Our target is to reach 30% by 2025.
*
(Number of LTI/total number of working hours)
× 1,000,000 hours
Non-Financial
FY23
FY24
63.2
63.7
FY23
FY24
13.3
12.9
FY22
FY23
FY24
+23
+22
+18
FY22
FY23
FY24
23
24
22
FY22
FY23
FY24
45.9
35.0
32.7
FY23
FY24
6.8
9.4
FY23
FY24
237
232
FY22
FY23
FY24
577
604
631
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Renewi plc Annual Report and Accounts 2024
53
Progress in a challenging market
We have continued to deliver against
the strategic priorities previously
communicated at Renewi’s Capital
Markets Day in October 2023. However
despite these successes, a challenging
operating environment for Commercial
Waste Netherlands, particularly in the
Construction and Demolition sector,
adversely impacted the overall Group
results in FY24. We achieved a number of
goals including further optimisation of the
portfolio as Mineralz & Water continued
its recovery with its overall performance
slightly ahead of the original recovery
plan. As announced, an exit for the UK
Municipal business has been agreed with
completion expected before 31 December
2024. Cost reduction and efficiency in
both the short and longer term, remains
a key focus for the Group. The Simplify
programme launched in the third quarter
has achieved its targeted full year run-rate
impact of €15m in SG&A costs by the end
of March. This action will contribute to our
medium term objective of delivering high
single-digit EBIT margins.
Given the status of the UK Municipal
strategic review at the end of the financial
year, the business is presented as an asset
held for sale at 31 March 2024. This has
resulted in this business being disclosed
as a discontinued operation with the
financials now presented on a continuing
and discontinued operations basis with a
restatement of the prior year comparatives.
As a result of this an exceptional charge of
€64.5m has been recorded.
“We moved forward on a number
of our strategic priorities in a
challenging market environment,
where our operational results
were solid in three out of our
four business areas.”
Annemieke den
Otter
CFO
CFO’s statement
Financial performance
FY24
€m
FY23*
€m
Variance
%
Continuing operations
Revenue
1,689.2
1,703.9
-1%
Underlying EBIT
105.5
131.7
-20%
Operating profit
97.6
141.5
-31%
Underlying profit before tax
68.0
105.2
-35%
Non-trading and exceptional items
(7.9)
9.8
Profit before tax from continuing
operations
60.1
115.0
Total tax charge for the year
(14.9)
(29.0)
Profit for the year from continuing
operations
45.2
86.0
Discontinued operations
(76.1)
(19.4)
(Loss) profit for the year
(30.9)
66.6
Organic annual revenue growth
-1%
3%
Underlying EBIT margin
6.2%
7.7%
Free Cash Flow/EBITDA conversion
9.0%
9.9%
Return on capital employed
7.7%
10.6%
*
The FY23 numbers have been reclassified to reflect discontinued operations as
set out in section 1 in the consolidated financial statements.
The underlying figures above are reconciled to statutory measures in notes 2 and 8.3
in the consolidated financial statements.
54 Renewi plc Annual Report and Accounts 2024
Revenue from continuing operations fell by
1%, to €1,689.2m driven by slow economic
growth and a reduction in recyclate prices.
Overall volumes were down year on year
albeit stable in the second half and
recyclate prices have remained largely
stable throughout the year. Underlying
EBIT from continuing operations was 20%
lower than the prior year driven by volume
and recyclate impact of €35m as cost
inflation was largely mitigated by pricing
discipline and ongoing cost initiatives. In
addition, there has also been the impact
this year of a higher level of favourable
one-off items of c€5m arising from some
accrual releases and other settlements.
These one-off items do not qualify as
non-trading or exceptional in accordance
with our accounting policy. The benefit of
ongoing cost reductions and execution
of strategic initiatives has resulted in
an improved underlying EBIT margin
performance in the second half of the year
of 6.7% compared to 5.8% in the first half
of the year. Net finance charges have risen
in FY24 as a result of increased costs of
borrowing and higher average debt
balances across the year. The level of
exceptional and non-trading items in
continuing operations was higher than
last year as described below, resulting in a
statutory profit for the year from continuing
operations of €45.2m compared to €86.0m
last year.
Additionally, during FY24, we have
embarked on our Future Fit digital
programme, a strategic initiative expected
to increase operational efficiency, asset
utilisation and customer satisfaction,
also supporting the Group in achieving
its medium-term margin ambitions.
Our capital allocation policy was reset
during the year to reflect an ongoing
disciplined approach to capital, prioritising
shareholder returns and investing in
profitable growth. In line with this a final
dividend of 5 pence per share is proposed
which will be subject to approval at the
Annual General Meeting.
Non-trading and exceptional items
excluded from underlying profits
To enable a better understanding of
underlying performance, certain items
are excluded from underlying EBIT and
underlying profit before tax due to their
size, nature or incidence.
Total non-trading and exceptional items in
continuing operations were a cost of €7.9m
(FY23: €9.8m credit) and include the costs
of the Simplify restructuring programme,
portfolio management activity,
amortisation of acquisition related
intangibles reduced by profits from
property disposals and other items.
Further details on all non-trading and
exceptional items are provided in note 3.3
to the consolidated financial statements.
Operating profit from continuing
operations, after taking account of all
non-trading and exceptional items,
was €97.6m (FY23: €141.5m).
Net finance costs
Net finance costs from continuing
operations increased by €11.2m to €38.0m
(FY23: €26.8m) as a result of the impact of
additional fixed rate borrowings in the
second half of FY23, increased interest
rates, the level of borrowings on the
revolving credit facility and a non-cash
write off of €1m of unamortised loan fees
following the August 2023 renewal of the
€400m revolving credit facility. Further
details are provided in note 5.4 to the
consolidated financial statements.
Profit before tax
Profit before tax from continuing
operations on a statutory basis, including
the impact of non-trading and exceptional
items, was €60.1m (FY23: €115.0m).
Taxation
Total taxation for the year from
continuing operations was a charge of
€14.9m (FY23: €29.0m). The effective tax
rate on underlying profits was 23.7% at
€16.1m, a decrease from 29.3% in the prior
year, as a result of tax losses claimed from
the UK Municipal entities. A tax credit of
€1.2m is attributable to the non-trading
and exceptional items of €7.9m as a
number of items are not subject to tax.
Looking forward, we anticipate the
underlying tax rate to be approximately 27%.
Due to items disallowed for tax in both the
Netherlands and Belgium, our effective tax
rate is higher than the nominal rates in the
countries where we operate. Our Group tax
strategy remains unchanged and is fully
documented on the Group website.
The Group statutory profit for the year
from continuing operations, including all
non-trading and exceptional items, was
€45.2m (FY23: €86.0m).
Discontinued operations
The post-tax loss for the year from the
disposal group was €76.1m including the
re-measurement impact in reflecting the
business as asset held for sale. Further
details on the performance of the UK
Municipal business and the implications of
the transaction are provided in note 6.4 to
the consolidated financial statements.
Earnings per share (EPS)
Underlying EPS from continuing operations
excluding non-trading and exceptional
items was 61 cents per share, a decrease of
28 cents given the lower profits. Basic EPS
from total operations was a loss of 43 cents
per share compared to earnings of 79 cents
per share in the prior year.
Dividend
The Board is recommending a final
dividend of 5 pence per share. Subject to
shareholder approval at the 2024 AGM, the
final dividend will be paid on 31 July 2024
to shareholders on the register at close of
business on 28 June 2024.
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Renewi plc Annual Report and Accounts 2024
55
CFO’s statement continued
Cash flow performance
The funds flow performance table is
derived from the statutory cash flow
statement including both continued
and discontinued operations and
reconciliations are included in note 18
in the consolidated financial statements.
The table shows the cash flows from an
adjusted free cash flow to total cash flow.
The adjusted free cash flow measure
focuses on the cash generation excluding
the impact of historical liabilities relating
to Covid-19 tax deferrals, settlement of
ATM soil liabilities, spend relating to the
UK PPP onerous contracts and other
items including exceptional cash spend.
Free cash flow represents the cash
available to fund growth capital projects,
pay dividends and invest in acquisitions.
Adjusted free cash flow was only
slightly lower than last year at €69.6m
(FY23: €72.9m) despite the lower EBITDA,
which was offset by improved working
capital management, increased utilisation
of invoice discounting and disposal
proceeds. Replacement capital
expenditure of €57.2m was significantly
lower than last year following the disposal
of the Hemweg site in Amsterdam. The
disposal of this site was anticipated as
part of the overall business plan for the
Renewi Westpoort acquisition in 2022.
Stripping out proceeds from this and
other exceptional property disposals,
replacement capital expenditure was
€77m, a decrease of €17m on the prior
year which included a number of catch up
projects delayed during Covid. In addition,
€66.6m of new leases or modifications
have been entered into which are
reported as right-of-use assets with a
corresponding lease liability. These leases
include the continuation of the truck
replacement programme, property
lease renewals or extensions and others.
Growth capital expenditure of €22.0m
includes further spend on the VLAREMA 8
advanced sorting investments in Belgium
and the newly commissioned rigid plastics
sorting line at Acht in the Netherlands.
Funds flow performance
FY24
€m
FY23*
€m
Underlying EBITDA
232.3
255.6
Working capital movement
25.7
(5.8)
Movement in provisions and other
(8.5)
(0.2)
Net replacement capital expenditure
(57.2)
(87.3)
Repayment of obligations under lease liabilities
(55.3)
(47.5)
Interest and loan fees
(31.1)
(20.7)
Tax
(36.3)
(21.2)
Adjusted free cash flow
69.6
72.9
Deferred Covid taxes
(19.9)
(19.7)
Offtake of ATM soil
(2.5)
(1.2)
UK Municipal contracts
(15.8)
(12.2)
Renewi 2.0 and other exceptional spend
(5.3)
(4.1)
Other
(5.2)
(10.4)
Free cash flow
20.9
25.3
Growth capital expenditure
(22.0)
(30.8)
Acquisitions net of disposals
0.2
(59.4)
Total cash flow
(0.9)
(64.9)
Free cash flow/EBITDA conversion
9.0%
9.9%
*
All numbers above contain both continued and discontinued operations. Free cash flow conversion is free cash
flow as a percentage of underlying EBITDA. The non-IFRS measures above are reconciled to statutory measures
in note 8.3 in the consolidated financial statements.
Debt structure
March 24
€m
March 23*
€m
Variance
€m
Belgian Green retail bonds
(200.0)
(200.0)
–
Green RCF
(155.0)
(102.5)
(52.5)
Other Green loans
(90.0)
(105.0)
15.0
Gross borrowings before lease liabilities
(445.0)
(407.5)
(37.5)
IAS 17 lease liabilities and other
(5.2)
(9.1)
3.9
Loan fees
3.1
2.3
0.8
Core cash
79.0
43.7
35.3
Core net debt
(368.1)
(370.6)
2.5
IFRS 16 lease liabilities
(247.9)
(245.8)
(2.1)
Net debt continuing operations
(616.0)
(616.4)
0.4
*
The FY23 numbers have been reclassified to reflect discontinued operations as set out in section 1 in the
consolidated financial statements.
56 Renewi plc Annual Report and Accounts 2024
As previously communicated, this level
of growth spend is lower than originally
planned given delays at further sites for
advanced sorting in Belgium, as full
enforcement of the new regulation
ramps up.
The higher cash outflow relating to interest
includes the settlement of €2.6m of fees
relating to the August 2023 renewal of the
Group revolving credit facility along with
the impact of higher financing costs. Tax
payments were higher in the current year
given the timing of settlements with some
items falling into FY24.
Looking at the three legacy components
that are shown below adjusted free cash
flow, there has been a further €19.9m
repayment on Dutch Covid-19 tax deferrals
as expected. The remaining balance
of €10m will be settled by the end of
September 2024. Cash spend for
placement of TGG soil stocks has been
limited in the period. Cash outflow on
UK PPP contracts was €15.8m. Following
completion of the UK Municipal divestment,
we do not expect any further cash outflows
in respect of UK PPP contracts.
The acquisitions net of disposals inflow
included the sale of an entity acquired
with the Renewi Westpoort acquisition in
September 2023, net of the acquisition of
the Meeus rockwool business in Belgium.
Other cash flows include funding for the
closed UK defined benefit scheme and the
funding of the Renewi Employee Share trust.
Net cash inflow from operating activities
decreased from €188.4m in the prior year to
€168.7m in the current year. A reconciliation
to the underlying cash flow performance as
referred to above is included in note 18 in
the consolidated financial statements
and further details on cash flows from
discontinued operations in note 6.4.
Strategic report
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
57
CFO’s statement continued
Moving forward, our focus is on enhancing
our capacity to generate free cash flow
and achieving a conversion rate of 40% of
EBITDA by the end of FY26. We will achieve
this by eliminating legacy cash outflows,
reducing exceptional costs and optimising
asset utilisation to decrease capital
expenditures. By bolstering our ability
to generate cash, we can adopt a capital
allocation strategy that balances
growth-oriented investments with
enhanced returns for our shareholders.
Investment projects
Expenditure in FY25
Asset optimisation is a key objective to
improve our cash flow generation and
deliver a cash conversion rate of 40%
of EBITDA in the coming years. As such
replacement capital expenditure will
continue to be tightly controlled and is
expected to be between €70m and €80m
in FY25. In addition, c.€50m of IFRS 16
lease investments are anticipated, as
further deliveries on the replacement
truck programme continue. Our medium-
term ambition is to earmark c. 30% of free
cash flow annually to growth capital
projects with return hurdle rates of at
least 16% on a pre-tax basis. Total growth
capital spend in FY25 is expected to be
around €30m on a number of projects
across the divisions.
Return on assets
The Group return on operating assets on a
continuing basis, excluding debt, tax and
goodwill, decreased to 19.9% at 31 March
2024 down from 30.0% at 31 March 2023
given the lower profits in FY24. The Group
post-tax return on capital employed on a
total operations basis was 7.7%
(FY23: 10.6%).
Treasury and cash management
Core net debt and leverage ratios
Core net debt excludes IFRS 16 lease
liabilities and the net debt relating to the
UK PPP contracts which is non-recourse
to the Group and secured over the assets
of the special purpose vehicles. Given
the UK Municipal planned exit and
classification as asset held for sale all cash
and borrowings relating to the disposal
group at 31 March 2024 are now shown in
assets and liabilities held for sale. Core
net debt at 31 March 2024, excluding
any core cash held in UK Municipal,
was €368.1m (FY23: €370.6m). Cash
performance in the last half resulted in
lower net debt and a closing net debt to
EBITDA ratio of 2.14x. Liquidity headroom
including cash and undrawn facilities
remained sufficient at €307m.
Debt structure and strategy
All our core borrowings of bonds and
loans are green financed. As at 31 March
2024, 78% of our core net debt was on a
fixed rate. Most borrowings are long term
with the exception of the €75m Belgian
green retail bonds due for repayment
in July 2024.
In August 2023, the Group completed the
renewal of its revolving credit facility, part
of its Euro denominated multicurrency
green finance facility. The size of the
revolving credit facility (“RCF”) remains
unchanged at €400m and is for an initial
five-year term to 2028 with two one-year
extension options to 2030 together with a
€150m accordion option to increase the
facility subject to lender approval at that
time. Interest remains based on Euribor
plus a margin grid based on leverage and
green sustainability metrics performance.
Financial covenants remained unchanged
and are now tested semi-annually at
September and March.
The introduction of IFRS 16 on 1 April 2019
brought additional lease liabilities onto
the balance sheet with an associated
increase in assets. Covenants on our main
bank facilities remain on a frozen GAAP
basis and exclude IFRS 16 lease liabilities.
The Group has complied with its banking
covenants during the period. The Group
operates a committed invoice discounting
programme. The cash received for
invoices sold at March 2024 was
€116.4m (March 2023: €84.7m).
Provisions and contingent liabilities
Further to the recognition of the UK
Municipal business as asset held for
sale all associated long-term onerous
contracts are included in the liabilities for
disposal group held for sale and outside
of the total provisions value in the balance
sheet. Looking at provisions in continuing
operations around 88% of the Group’s
provisions are long-term in nature relating
to landfill provisions. The provisions
balance classified as due within one year
amounts to €21m, including €5m for
restructuring, €1m for onerous contracts,
€10m for landfill related spend and €5m
for environmental, legal and others.
Further details are provided in note 14
to the consolidated financial statements.
Retirement benefits
The Group has a closed UK defined benefit
pension scheme and at 31 March 2024,
the scheme had an accounting deficit of
€7.6m (FY23: €4.3m). The change in the
year was due to lower returns on pension
scheme assets which were only partly
offset by an increase in the discount rate
assumption on scheme liabilities.
The triennial actuarial valuation of the
scheme as at 5 April 2024 is underway.
The Group’s funding plan has been
maintained at the current level of
€3.5m per annum until December 2024.
There are also several defined benefit
pension schemes for employees in the
Netherlands and Belgium which had a
retirement benefit deficit of €5.3m at
31 March 2024, a €0.3m increase from
31 March 2023.
58 Renewi plc Annual Report and Accounts 2024
Going concern
The Directors have adopted the
going concern basis in preparing these
consolidated financial statements after
assessing the Group’s principal risks.
Further details of the modelling and
scenarios prepared are set out in section 1
of the consolidated financial statements.
The key judgement in both scenarios is
the possibility of weaker macroeconomic
conditions, delivery of the year on year
profit enhancements together with the
Group’s ability to finance the funding of the
UK Municipal exit through its existing RCF
and €120m bridge facilities and settle all
other funding repayments as they fall due.
Having considered all the key judgements
around the financial projections, including
the availability of financing and the
achievability of mitigating actions
included and other levers not included, the
Directors confirm they have a reasonable
expectation that the Group has adequate
resources to continue in operational
existence for the foreseeable future
and to meet all banking covenants.
Annemieke den Otter
CFO
Dismantling
discarded electrical
household
appliances
Strategic report
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
59
Inbound and Outbound revenue
from continuing operations
Operating review
Commercial waste
Division information
Operating sites: 98
Volume of material recycled:
3.7mT
Employees: 4,822 FTE
Revenue: €1,385m
Underlying EBIT: €98.5m
Division information
Operating sites: 46
Volume of material recycled:
1.5mT
Employees: 931 FTE
Revenue: €175m
Underlying EBIT: €16.3m
Specialities
Division information
Operating sites: 8
Volume of material recycled:
1.3mT
Employees: 291 FTE
Revenue: €181m
Underlying EBIT: €9.6m
Mineralz & Water
Financial performance
Financial performance
Financial performance
Material processing
Material processing
Material processing
FY24
€m
FY23
€m
Revenue
1,384.7
1,397.3
Underlying EBIT
98.5
129.3
Underlying
EBIT margin
7.1%
9.3%
Operating profit
96.1
134.7
Return on
operating assets
16.1%
25.4%
FY24
€m
FY23
€m
Revenue
181.6
190.9
Underlying EBIT
9.6
0.5
Underlying
EBIT margin
5.3%
0.3%
Operating profit
7.3
1.0
Return on
operating assets
15.9%
0.8%
FY24
€m
FY23*
€m
Revenue
175.2
160.2
Underlying EBIT
16.3
15.9
Underlying
EBIT margin
9.3%
9.9%
Operating profit
15.3
17.1
Return on
operating assets
28.6%
35.4%
Inbound
Outbound
12%
88%
87%
13%
Inbound
Outbound
20%
80%
Inbound
Outbound
*
The FY23 numbers have been reclassified to reflect discontinued operations as set out in section 1 in the consolidated financial statements.
The underlying figures above are reconciled to statutory measures in notes 2 and 8.3 in the consolidated financial statements.
Group Central Services locations and employees are not accounted for in the totals above.
60 Renewi plc Annual Report and Accounts 2024
Commercial waste
Mineralz & Water
Specialities
Renewi’s Commercial Waste division
generates our core revenue, contributing
over 80% to our overall income. The division
comprises industrial and commercial
waste collection, processing and secondary
materials production. Our fleet collects the
waste, which is then sorted and processed
using cutting-edge recycling technologies
into high-quality secondary materials
and recyclates at one of our 98 sites. Key
activities include the processing of mixed
waste streams and monostreams into
high-quality recyclates, and turning organic
waste into biogas. We also offer bespoke
solutions, such as optimised source
separation, to help our customers
manage waste more effectively.
The division’s primary focus is on delivering
the best cost-efficient waste-to-product
solutions to customers by going above and
beyond basic waste management. We are
proactive in helping customers achieve
their sustainability goals by supporting
product recycling, reducing waste and
minimising reliance on virgin raw materials.
Our M&W division plays a crucial role
in advancing the circular economy by
managing substantial quantities of heavily
contaminated soils, aged road surfaces,
industrial waters, sludges, chemical waste,
incinerator residues and packaged
hazardous waste. We feed these diverse
waste streams into decontamination
processes involving separation techniques,
biological methods, thermal extraction
and pyrolysis treatments. As a result, we
generate secondary materials that increase
the sustainability of the construction and
building industries, often in closed-loop
systems such as reintegrating gravel into
new road surfaces.
Our Specialities division comprises
three businesses: Coolrec, which recycles
household appliances; Maltha, a specialist
glass recycling business; and UK Municipal,
which manages our public-private
partnership (PPP) operating contracts.
The division has a presence in five
countries: Belgium, the Netherlands,
the UK, France and Portugal.
Coolrec excels in recycling fridges,
freezers and other small domestic
appliances across sites in the Netherlands,
Belgium and France. Through its recycling
processes, Coolrec efficiently sorts waste
streams into high-quality recycled plastic
and both ferrous and non-ferrous recycled
metal streams. Inbound supply is secured
through collection schemes on
predominantly long-term contracts,
with outbound products supplying
industry partners with premium secondary
materials for closed-loop circular products.
Maltha, a leading European glass recycling
entity, operates in the Netherlands, Belgium,
France and Portugal. Specialising in
recycling flat and container glass into
cullet and glass powder, Maltha is helping
to bring greater sustainability to the glass
industry. O-I, a global packaging glass leader,
holds a 33% stake in the Maltha group.
UK Municipal manages waste treatment
facilities for UK councils. Typically
operating under long-term PPP contracts,
these facilities are well-equipped to treat
residual waste.
Strategic report
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Other information
Renewi plc Annual Report and Accounts 2024
61
Commercial waste
Commercial Waste revenues were lower
over FY24 at €1,385m (FY23 €1,397m)
versus prior year due to lower recyclate
prices and a weaker construction and
demolition market in the Netherlands.
Underlying EBIT declined to €98.5m
(FY23 €129.3m) and operating profit was
€96.1m (FY23 €134.7m). Recyclate prices
normalised following a sharp peak due
Revenue
Underlying EBIT
Operating profit
Commercial Waste
FY24
€m
FY23
€m
FY24
€m
FY23
€m
FY24
€m
FY23
€m
Netherlands Commercial
911.5
932.0
52.9
76.9
53.2
69.4
Belgium Commercial
476.2
468.4
45.6
52.4
42.9
65.3
Intra-segment revenue
(3.0)
(3.1)
–
–
–
–
Total (€m)
1,384.7
1,397.3
98.5
129.3
96.1
134.7
Year-on-year variance %
Netherlands Commercial
-2%
-31%
-23%
Belgium Commercial
2%
-13%
-34%
Total
-1%
-24%
-29%
Underlying EBIT margin
Return on
operating assets
FY24
€m
FY23
€m
FY24
€m
FY23
€m
Netherlands Commercial
5.8%
8.3%
12.0%
19.3%
Belgium Commercial
9.6%
11.2%
27.9%
47.3%
Total
7.1%
9.3%
16.3%
25.4%
The return on operating assets excludes all landfill related provisions. The underlying figures above are reconciled to statutory measures in notes 2 and 8.3 in the
consolidated financial statements.
to supply-chain disruption during and
directly after the Covid pandemic. In the
second half of the year, recyclate prices
had largely stabilised around pre-covid
levels, with the exception of plastics
which continued to be lower due to
excess supply of low-cost virgin plastic
from abroad. Costs increased in line
with inflation, with higher labour costs
across the division.
Operating review continued
Throughout Commercial Waste there
was a strong focus on cost savings,
with headcount reduction and improved
asset utilisation helping to offset the
exceptionally high inflation. Cash
performance was also a top priority,
with improvements in working capital
management and a phased approach
to capital expenditure timing.
62 Renewi plc Annual Report and Accounts 2024
Commercial Waste Netherlands
Market developments
Overall economic activity was subdued in
the Netherlands over the period, with GDP
growth over 2023 of 0.1% with most growth
in the services sector leading to lower
volumes overall. In the Construction &
Demolition segment, nitrogen deposition
caps limited new construction activities
across the country, resulting in decreased
construction volumes and thus increased
competition for the remaining volumes.
A fire at AVR, one of the main incinerators
in the Netherlands, took significant
incineration capacity out of the market.
Operational developments
Through the period, Commercial Waste
Netherlands retained its client base of large
construction companies, differentiating
itself from competitors with its circular
offering, high safety standards and
geographic footprint. In order to meet
customer demands and achieve its own
green ambitions, Renewi purchased a
number of electric vehicles which have
the added benefit of not contributing to
nitrogen deposition.
Decreased inbound Construction &
Demolition volumes also resulted in
decreased outbound recyclate volumes.
Over H2, Commercial Waste Netherlands
saw a stabilisation of the volumes from this
segment. The reduced construction activity
is expected to persist until late 2024 or
early 2025, after which large residential
construction projects currently backlogged
around major cities are expected to
pick up. The rigid plastics line in Acht was
commissioned in the last quarter of FY24,
and will ramp up over the course of FY25.
Commercial Waste Netherlands had
some notable client wins, with zero waste
contracts for Schiphol Airport, Rotterdam
the Hague Airport, University of Twente
and the Ministry of Defence and Custodial
Institution Agency. Partnerships were
concluded with Shell Refineries Pernis
and Moerdijk for total waste management
and Vattenfall for the offtake of Green Gas
as of Q1FY25.
Financial results
Commercial Waste Netherlands revenues
were €911.5m, down 2% year on year driven
by weaker volumes from the Construction
& Demolition sector and lower recyclate
prices. Underlying EBIT was €52.9m, down
31% year on year due to lower recyclate
prices and underlying EBIT margin was
5.8%, down from 8.3% in FY23. In order
to protect margins through the period
of reduced activity, Commercial Waste
Netherlands downscaled variable costs in
line with the decrease in volumes. Savings
were achieved by increasing route density,
measures included in the Simplify
programme, and a reduction in SG&A.
Operating profit was €53.2m, down 23%
from €69.4m in FY23. Return on operating
assets was 12.0%.
Commercial Waste Belgium
Market developments
Over the course of FY24, the new VLAREMA
8 legislation was introduced which requires
a much more extensive sorting to limit the
amount of material going to incineration.
This is a positive development for our
business and the introduction of this
legislation was an important part of
the investment case for Renewi’s
commissioning of an advanced sorting
line in Ghent. As is often the case, the
implementation of this regulation had a
delay between its effective date and actual
enforcement, initially enabling some waste
collecting companies to bypass the new
sorting and recycling obligation. During
the course of the year, Renewi worked
with the authorities to find efficient ways of
enforcing VLAREMA 8 resulting in increased
compliance with the new law and
increased volumes to Commercial Waste
Belgium’s recycling facilities. Electricity
prices were lower than anticipated in FY24,
and labour costs increased.
Operational highlights
Commercial Waste Belgium commissioned
its new advanced sorting line in Ghent in
August, ramping up to 83 kt of throughput
by the end of FY24. A similar advanced
sorting line was to be commissioned
in Puurs, but was postponed until the
enforcement of VLAREMA 8 corresponded
with management expectations.
Commercial Waste Belgium had some
notable client wins, including Total
Energies, BPost, Limburg.net, Nike,
Puurs-St Amands (public), Infra group,
Molnlycke, VRT, Exel Composites (LA) and
Sciensano (Haz Waste), Total (Feluy) and
the wins of SPF Penitentiaire and hospital
Mouscron, reflecting our successful
approach in the care sector.
In terms of new commercial offerings,
Commercial Waste Belgium introduced
the Zero Waste Container which allows
customers to mix 5 waste streams into
one container and is fully VLAREMA 8
compliant, which is particularly attractive
to customers who have limited space.
Commercial Waste Belgium’s food waste
offering was also an area of focus over FY24.
Financial Results
Commercial Waste Belgium revenues were
€476.2m, up 2% year on year driven by
strong volumes helped by the enforcement
of the VLAREMA 8 legislation in Flanders.
Despite cost measures, underlying EBIT
was €45.6m down 13% year on year due to
lower recyclate prices and underlying EBIT
margin was 9.6%, down from 11.2% in
FY23. Operating profit was €42.9m, 34%
lower year on year. Return on operating
assets was 27.9%.
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Renewi plc Annual Report and Accounts 2024
63
Operating review continued
Mineralz & Water
FY24
€m
FY23
€m
Variance
%
Revenue
181.6
190.9
-5%
Underlying EBIT
9.6
0.5
n/a
Underlying EBIT margin
5.3%
0.3%
Operating profit
7.3
1.0
n/a
Return on operating assets
15.9%
0.8%
The return on operating assets excludes all landfill related provisions. The underlying figures above are reconciled
to statutory measures in notes 2 and 8.3 in the consolidated financial statements.
Market developments
Due to further product quality
improvements and positive long term
environmental impact analysis, first
signs of recovery in the civil engineering
market in which Mineralz & Water is
active are visible.
Although the concrete and construction
markets have shown low momentum,
concrete producers have increased
interest in the use of recycled materials,
following the Dutch “Beton-akkoord”
and the EU-directive regarding the
use of recycled materials.
Developments regarding the presence
of PFAS, the emergence of possible new
regulations and best available removal
techniques continue to be an important
topic in the wastewater purification and
soil cleaning market. In both markets,
these developments can introduce both
significant opportunities as well as
challenges to meet emerging
regulatory requirements.
Operational highlights
M&W recovery continued on track over the
course of FY24, with the re-design of the
production line to produce sand, gravel
and filler for use in the concrete and
construction industry, rather than the
previous unsorted product: Thermally
Treated Soil (TGG). As part of this
turnaround, adjustments were made
to improve the quality and consistency
of the sand and filler in order to meet
the technical requirements of concrete
producers. Further important milestones
for entering the concrete market have
been reached, including the End of Waste
(EOW) certification for gravel and filler.
EOW for sand is expected in FY25.
Offtake of the remaining inventory of
legacy TGG stock is proceeding and in
FY24 another 100kt was transferred
to buyers.
Investments in the efficiency of the
packed chemical waste pyrolysis plant
have resulted in a new production
throughput record.
Financial results
Mineralz & Water revenue was down 5%
year on year mainly driven by termination
of unprofitable activities, including soil
washing and bottom ash treatment
Underlying EBIT increased to €9.6m from
€0.5 for FY23, primarily driven by the
turnaround related to soil treatment in
H2 FY24, underlying market pricing and
efficiency improvements, also resulting
in operating profit of €7.3m up from €1m
for FY23.
Mineralz & Water Division
64 Renewi plc Annual Report and Accounts 2024
Maltha
Prices for glass cullet increased over
the period as demand for recycled glass
continued to grow against a scarcity of
glass shards.
Maltha showed continued excellent
performance over FY24, benefitting from
price increases, partially offset by increased
sourcing costs and cost inflation. Volumes
were slightly lower over FY23.
An investment in Polyvinyl butyral (PVB)
was approved for the Lommel site in
Belgium in collaboration with several
companies with the objective of being
able to recycle this material during FY24/25.
The Portugal site has been transformed
over recent years, adding a roof, solar
panels and more recently installing an
improvement in 2024 of an additional
external line for processing CSP (ceramics,
stone & porcelain) material, large volumes
of which would normally be sent to landfill.
The focus in the next financial year will be
to continue to expand the site to process
more material, improving the profitability
through increased sales.
Maltha’s aim is to become the producer
of the best quality cullet in Europe and the
supplier of choice to all glass producers.
The technology upgrades have also had
positive effects on CO2 emissions, as they
are more energy efficient, which supports
our clients’ and our own sustainability
targets and vision.
Coolrec
The market for e-waste continues to
provide interesting opportunities for
growth. In addition to market growth
from increased use of electrical appliances,
Extended Producer Schemes continue to
up their efforts to increase collection rates
and regulators increase requirements for
compliant recycling. For instance, in the
Netherlands a stimulus campaign aimed
to improve compliant treatment of cooling
and freezing appliances yielded significant
results. In France, the regulator announced
the requirement for electrical boilers to be
recycled starting January 2025.
On the back of these market developments,
as well as continued commercial success
(e.g. contract extensions with the same
or higher volumes), Coolrec saw record
volumes (up c.10% vs FY23). Coolrec is
building a new boiler treatment line in the
North of France on the back of the new
French boiler regulation, operational Q4
of FY25, expecting to add 15kt of volumes
over the course of the coming three years.
Specialities
FY24
€m
FY23*
€m
Variance
%
Revenue
175.2
160.2
9%
Underlying EBIT
16.3
15.9
3%
Underlying EBIT margin
9.3%
9.9%
Operating profit
15.4
17.1
-10%
Return on operating assets
28.6%
35.4%
*
The FY23 numbers have been reclassified to reflect discontinued operations as set out in section 1 in the
consolidated financial statements.
The underlying figures above are reconciled to statutory measures in notes 2 and 8.3 in the consolidated
financial statements.
Plastics prices, however, remained
significantly depressed as international
plastics producers continued to supply
virgin plastic at prices below recycled to
the European market, as a result of
significant increases in production capacity
coming online, mostly in Asia. This will
remain a point of attention in FY25 and
possibly beyond, as the supply/demand
balance restores.
UK Municipal
At the Capital Markets Day in October 2023,
Renewi announced its intention to conduct
a strategic review of the UK municipal
business to evaluate divestment due to
the drag on cash, poor profit profile and
lack of strategic fit. Renewi has announced
the divestment of UK Municipal, to be
completed before 31 December 2024. As such,
UK Municipal’s financial results are held as
an asset for sale throughout the financial
statements. UK Municipal’s performance
over FY24 was in line with expectations.
Financial results
Revenue from Specialities excluding UK
Municipal (now disclosed as discontinued
operations) was up 9% year on year to
€175.2m and underlying EBIT was up 3%
to €16.3m with margin falling slightly.
Operating profit was €15.4m compared
to €17.1m in FY23.
Specialities Division
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Renewi plc Annual Report and Accounts 2024
65
Risk management
Evaluating key risks
In our dynamic operating environment, we encounter various industry, commercial, regulatory,
and other risks, many of which are beyond our direct control. The Board and Executive Committee
vigilantly monitor shifts and developments, identifying and prioritising potential threats. This ongoing
assessment of risk helps ensure the protection of our operations, customers, employees, and the
execution of our strategic objectives.
Integrated risk management
Our assessments have identified various
potential risks, outlined in this section
of the report. For each, we’ve developed
robust mitigation strategies to effectively
reduce these risks, serving as the
cornerstone of our divisional risk
management approach. Our Group risk
management strategy and internal
control frameworks are essential in
enabling us to:
• achieve our objectives;
• maintain shareholder value;
• protect our reputation;
• promote ethical conduct; and
• exercise good governance.
Changes to risk in FY24
Detailed below are the changes to the
risks facing the Group which materialised
in FY24. The business impact was limited
by the mitigations already in place and by
the Group’s risk management processes.
We also detail the emerging risks facing
the Group, to which we remain vigilant.
Input volumes, pricing and composition
The influx and composition of incoming
waste volumes changed due to a weak
construction market in the Netherlands,
and changes in export dynamics, leading
to a reduction in high-value materials
within inbound streams. Moreover,
there was a decline in prices for
recycled materials, such as plastics, and
adjustments in input prices couldn’t
fully offset this decrease. To address
these challenges, we’ve taken proactive
measures, including pricing new business
based on margin over volume, with
well-defined minimum return targets.
Ageing IT backbone
Majority of our existing IT infrastructure is
no longer ideally suited for purpose, the
risk of failure or sub optimal functioning
of our existing IT systems is significant.
The effective maintenance of these older
systems during the development and roll
out of the Future Fit programme will be
important. The failure or sub-optimal
functioning of our existing IT systems can
negatively impact service our customer
satisfaction and employee engagement.
Future Fit is being designed to support our
growth ambitions and strengthen
Renewi’s position in our markets. Over the
past year, we’ve finalised the high-level
process and architectural design of
Future Fit. In FY25, our attention will pivot
towards the construction, configurations
and implementation phases of the new
digital systems. During this transitional
period to the new platform, maintaining
the effectiveness of our current
operational systems will be paramount.
Safety, Health, Environment
and Quality (SHEQ)
One of the most important SHEQ risks
in Renewi’s activities is the risk of fires.
Waste presents an ongoing fire risk due to
its potential for spontaneous combustion,
particularly with the increasing number
of batteries which are inappropriately
included in the waste we receive.
Aside from maintaining appropriate
fire insurance, we are constantly
improving our fire-prevention practices.
This includes investing in fire detection
and prevention technology, providing
comprehensive training to our teams,
and conducting regular fire safety audits.
We also proactively educate our
customers and communities on
the correct disposal of batteries.
Define risks
Assess risks
Evaluate risks
Monitor and
report
Identify existing
and future
mitigating
actions
66 Renewi plc Annual Report and Accounts 2024
Although we had a rise in the number
of minor fires during FY24 which were up
more than 20% versus the previous year,
we had fewer major fires – two in FY24
versus 3 in the prior year and more in
previous periods. This was due to the
effectiveness of our fire detection and
prevention systems.
Another important SHEQ risk is
environmental compliance. With
continuous scientific improvement in
the ability to detect harmful substances,
environmental standards are constantly
increasing. One category which is
important is Per-and Polyfluorinated
Substances (“PFAS”), which we increasingly
test in many of our processes, in line with
environmental requirements (see page 39
for more information). We closely monitor
planned regulatory developments, especially
concerning Per-and Polyfluorinated
Substances in waste, to ensure we are
prepared for any upcoming changes.
A key safety risk is the number of accidents
involving our employees or contractors.
There were no fatal incidents at our sites
during FY24. In response to a previous
year’s fatal incident, we’ve implemented
additional safety measures including
Site Traffic Plans (see page 44 in “Caring
for people and ecosystems“for more
information). We were pleased that the LTIF
rate decreased over FY24 after significant
investment safety training over the year.
Third party incineration
The disruption in business operations at
one of our key outlets has had a substantial
impact on the available capacity for
incineration in the Netherlands, necessitating
significant adjustments in our supply chain,
which were promptly addressed. With
reduced capacity at the remaining outlets,
our flexibility in distributing combustible
waste to incinerators is constrained. We
anticipate this situation will persist until
the key outlet is fully operational again,
which is expected by the end of 2024.
Risk appetite
At Renewi, we take a proactive approach
to managing risk. We regularly evaluate our
risk appetite against the potential impact
on the following:
• Health and safety
• Environment
• Development and acquisition
• Business continuity
• Investors and shareholders
• Financial
• Reputation and media
• Control environment
Principal risks characteristics
Relative speed of impact
Relative inherent risk trend
Dynamic/More gradual
Stable/More gradual
Dynamic/Rapid
Stable/Rapid
4. Changes in law and policy
8. Labour availability, talent
development and diversity
11. Regulatory compliance
13. Cyber threat and ICT failure
14. Input pricing
18. Supply chain transparency
19. Lack of developing climate
policies
2. Residue costs, capacity
and specification
5. Disruptive event
10. Unsustainable debt
12. Long-term contracts
15. Water, stress and drought
16. Extreme heat
1. Product pricing, demand
and quality
3. Input volumes
7. Digital transformation
challenges
17. Increasing pricing of
GHG emissions
6. Health and safety
9. Major plant failure or fire
16. Natural disasters, storms and
wind, flooding
More gradual
Stable
Dynamic
Rapid
To see more about key risks,
visit page 70
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Renewi plc Annual Report and Accounts 2024
67
Risk management continued
Our focus on environmental, regulatory
and health and safety risks is unwavering,
and we have dedicated significant
resources and attention to these areas.
The Executive Committee and senior
management continuously monitor
these risks to ensure they align with
our low-risk appetite.
Our risk management
framework
Effective risk management is paramount
for achieving sustainable success. It serves
as a cornerstone of sound management
practice and is integral to our strategic
decision-making process. We have
implemented a robust framework that
enables us to conduct thorough and
cost-effective evaluations of risk, ensuring
that our actions are informed and our
objectives are met. The core elements
of our risk management framework are:
the schedule of matters reserved for the
Board which stipulates that the Board
ensures the maintenance of a sound
system of internal control and risk
management; an appropriate risk culture
that ensures risks are effectively
recognised and managed; the risk
assessment review process, which
ensures the timely identification of risks
and the evaluation of their importance.
The outcome of this process is:
• the identification of all significant
strategic, operational, financial
and compliance risks;
• the determination of our current
mitigating controls; and
• the development of action plans
necessary to reduce risks to within
our risk appetite.
The divisional management teams
are responsible for executing the
risk management activities within the
divisions. Divisional management teams
review divisional risk registers, including
mitigating actions, during their meetings.
The Renewi risk register is subject to
thorough discussion and review by both
the Executive leadership and the Board.
Our day-to-day operations benefit from
robust risk management systems, which
encompass divisional risk registers and
integrate risk management into project
management endeavors. Major capital
requests undergo rigorous risk
assessments, adhering to the standards
outlined in the Group Authorisation
Document. Additionally, risk registers are
routinely reviewed during management
team meetings to ensure the efficient
monitoring and mitigation of key risks.
68 Renewi plc Annual Report and Accounts 2024
Board
• Approval and oversight of strategic risk
objectives and actions
• Put in place an appropriate, adequately
resourced risk management policy
• Establish the risk appetite of the Group
and review periodically
• Assess key strategic risks
• Assess the effectiveness of risk management
• Ensure that risk in excess of the risk appetite
after all mitigation measures have been taken
is adequately insured
• Oversight to ensure that the processes for
management of risk are effective, efficient and
robust (delegated to the Audit Committee)
Executive
leadership
• Delivery of strategic actions in line with
risk appetite
• Identify and manage key strategic risks
• Monitor key risk developments
• Drive a culture of risk awareness
• Consider completeness of key strategic risks
• Consider adequacy of mitigations in line with
risk appetite
• Consider aggregation of risk exposures across
the Divisions
• Submit summary risk reports for the Audit
Committee and the Board
Group risk
management
• Ensure that the Board-approved Group risk
management framework is implemented
and effective
• Support the Renewi risk culture through
risk systems, sharing of learnings and best
practices, and review of risk failures
• Provide access to expertise in managing risks,
from across Renewi or from outside specialists
• Review selected risks from risk registers,
assess adherence to the risk appetite and
the mitigations in place.
• Drive consistency in approach, use of tools
and risk appetite across Renewi
Business
areas/divisions
• Owners of the risks are responsible for
delivering mitigating actions in line with the
risk appetite and within a strong risk culture
• Promote an appropriate risk culture
across Renewi in which an awareness
and management of risk in all its forms
is considered by management in their
daily activities
• Periodic and ongoing assessments of risks
and risk trends.
• Reporting risk registers that include the key
strategic risks for each Division, mitigating
actions in place, current risk score, design and
execution of future mitigation approaches and
consider the effects of such actions to the risks
and risk profile.
• Review occurrences of risk management
failure to identify root cause, and identify
and share lessons learned to mitigate risk
of repetition
Our risk management framework
Bottom-up enterprise risk management
Top-down strategic risk management
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Renewi plc Annual Report and Accounts 2024
69
Summary of key risks
Key risk
Key mitigation
Change in the year
1. Product pricing, demand and quality
Market-driven developments that reduce
demand, cause changes in quality or
decrease value of recycled products
Risk direction
Strategic objectives
• Improve product quality to optimise the
price we receive for our products.
• Apply dynamic pricing techniques, that
link input and output market prices and
stabilises margins.
• Create partnerships, innovate and invest in
sustainable technologies that meet market
needs for products and services.
• Expand our contracted outbound
product off-take customer base to
reduce dependency risk.
• Renegotiate long-term and fixed-price
contracts, when the existing ones are
no longer attractive.
• Recyclate prices have dropped further but in
general have now stabilised.
• Fully offsetting the decline in recyclate prices
through dynamic pricing for inbound and
outbound volumes remained challenging
though about 65% of volatility was mitigated.
2. Residual waste disposal costs, capacity and specification
Lack of adequate available capacity
of outlets or changing outlet demands,
resulting in increased pricing or limitations
for disposal of residual waste to incinerators
and other residual volumes
Risk direction
Strategic objectives
• Ensure contracting of multiple outlets,
to reduce dependency risk.
• Explore using alternative
disposal opportunities.
• Use temporary storage of stock to stabilise
supply chain peaks and lows.
• Apply quality controls to ensure residue
volumes meet outlet requirements.
• Lobby and management of relationships in
sector based associations.
• Monitor impact of new legislation and
develop sustainable change to operations
as appropriate.
• A disruption of business operations at one
of our key incineration outlets has seriously
impacted available capacity for incineration
in the Netherlands and required significant
supply chain adjustments, which were
adequately addressed.
• Emerging changes in legislation (e.g. PFAS)
and composition of residual waste (e.g.
inflammable, explosive elements) are forcing
outlets to review specification requirements
and apply more critical acceptance
procedures, threatening our ability and
agility in disposal of residual waste.
3. Input volumes, pricing and composition
Changes in availability and composition of
waste volumes driven by market disruptions
and/or changes laws and regulations, that
deteriorate market demand and/or pricing
conditions for waste collection services and
the processing of waste volumes
Risk direction
Strategic objectives
• Careful monitoring and reporting on
incoming waste volumes and pricing trends.
• Agile and focused sales activity and
customer lead planning.
• Secure flexibility in contracting in adapting
to external and inherent changes that could
jeopardise margins.
• Intensified portfolio management, focus on
relevant profitable market segments and
products for growth and realisation of our
sustainability targets.
• Where appropriate, use longer-term
contracts to limit exposure to volume loss.
• Available waste volumes in general at
best remained stable and in some cases
slightly decreased.
• The composition and sourcing of
incoming waste volumes shifted as a result
of legislation and enforcement of it (e.g. level
playing field in application of the VLAREMA 8
framework in Belgium) and exports which
results in fewer high-value materials in
inbound streams.
• We are pricing new business for margin over
volume with clear minimum returns targets.
Risk management continued
70 Renewi plc Annual Report and Accounts 2024
Risk direction
Dynamic/More gradual
Stable/More gradual
Dynamic/Rapid
Stable/Rapid
Strategic objectives
Leader in recycling
Being a circular economy changemaker
Leader in secondary material production
Reducing our carbon emissions
Caring for our people and ecosystems
Selectively gain market share
Key risk
Key mitigation
Change in the year
4. Changes in law and policy
Changes in laws and policies, including
environmental and compliance regulations, that do
not contribute to our strategy and competitiveness in
increasing the use of recycled materials and related
sustainability targets
Risk direction
Strategic objectives
• Participate in sector-based associations
(e.g. Vereniging Afvalbedrijven in the
Netherlands) and engage with legislators
and regulators to advise on appropriate
policies for the sector.
• Research by internal specialists to ensure
changes are planned for and potential
opportunities are captured.
• Opening of our new facility in Ghent,
Belgium, to comply with VLAREMA 8
legislation requirements.
• Frequent on-site engagements with
policy makers.
• Hiring of a senior executive, a former
senior government official, as Chief
Strategy Officer with a strong focus
on public affairs.
• Upcoming important changes in various
legislative areas are under review and are
adequately prepared for.
5. Disruptive event
A disruptive event such as a pandemic or war
with severe consequences for continuity or
competitiveness of our business activities
Risk direction
Strategic objectives
• Develop crisis protocols and set up of
site based business continuity plans.
• Monitor developments in external
indicators of increased risk for events
that have a disruptive impact on
business operations as a standard
management activity.
• Set up and maintain site-based risk
assessments and reviews.
• During 2023, energy prices returned
to 2021 levels; We have reduced our
exposure to uncontrollable changes
through fixed contracts, which has
stabilised our energy risk.
6. Health and safety
Accidents causing injury or loss of life, ensuing
personal suffering, causing damage to our personnel,
safety track record and reputation.
Deterioration of physical and mental health in society
in general and our workforce in particular that affects
the employability of our employees as well as
effective and efficient operations
Risk direction
Strategic objectives
• Continued execution of safety risk
assessments (RI&E).
• Continuous improvement of
safety standards.
• Strict reporting on safety performance
(KPIs, near misses, incidents)
and follow-up.
• Implementation of new safety standards
following incident reviews.
• Extensive self assessment programmes
and internal audit activity on
safety effectiveness.
• ISRS Management System
implementation started, enhancing
safety leadership and management,
supported by a more elaborate system
for risk identification.
• Company wide implementation of a site
traffic safety programme by installing
technical facilities and tailored
procedures to create a significantly
safer work environment.
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Other information
Renewi plc Annual Report and Accounts 2024
71
Key risk
Key mitigation
Change in the year
7. Ageing IT backbone
Ageing IT backbone limits the ability
to further enhance and optimise our core
business processes in line with market
needs, and to fully leverage the value from
digital innovations available in the market
Risk direction
Strategic objectives
• Invest in replacing current fragmented and
bespoke systems with a market standard,
SaaS, “Digital Core” spanning our core
business processes.
• Harmonise business processes to enable
efficiencies at scale.
• “Future Fit” launched as joint IT/Business
programme to implement new Digital Core
and harmonise the business processes
and data.
• Configuration of a SaaS solution is
under way.
• Programme and IT team have
been mobilised.
8. Labour availability, talent development and diversity
Lack of availability of sufficient number and
skillset of key personnel in markets where
we operate
Access to recruiting of talented people to
ensure availability of capable key personnel
Changing demands in society to ensure a
safe and diverse culture in organisations
Risk direction
Strategic objectives
• Invest in training and development of staff
and management by talent programmes
and talent reviews.
• Increased focus and attention on critical
positions, succession planning, individual
development plans, as well as needs and
expectations to create better balanced
composition of local teams.
• Continued attention to diversity and
inclusion, offering specific trainings and
awareness raising activities.
• A succession planning grid was created for
critical positions (our top 15 positions),
including quarterly follow-ups.
• The economy and labour market stabilised,
but in some areas (e.g. economic hot spots)
we are still facing challenges in recruitment.
• Several organisational changes (e.g. the
Simplify programme), increased efficiency
and reduced cost.
• Increased attention to talent management,
succession planning and individual
development plans in the annual
performance review cycle.
• D&I day to raise awareness and
celebrate diversity in our organisation.
9. Major operational failure or calamity
Operational failure or calamity at a key
facility, leading to business interruption,
loss of revenue or material damages
Risk direction
Strategic objectives
• Fire safety standards and prevention
facilities and procedures are in place.
• Close engagement with insurers and
continuous review of creating a balanced
approach in prevention and required
insurance cover.
• Business continuity planning in place at
all major sites and under review for all sites.
• Mechanical breakdown insurance in place
at high-risk facilities, and reviewed regularly.
• Regular periodic structural maintenance
shutdowns at key facilities to ensure
process continuity.
• We noticed a trend of more minor fires,
mainly due to the increase of flammable/
explosive components in the incoming
waste; increasingly we have detection
systems in place and if such fires occur,
they usually can be extinguished quickly.
• In recent years, we have made significant
investments in fire safety and prevention.
This has been successful with a significant
reduction in the number of major fires.
Risk management continued
Summary of key risks
72 Renewi plc Annual Report and Accounts 2024
Risk direction
Dynamic/More gradual
Stable/More gradual
Dynamic/Rapid
Stable/Rapid
Strategic objectives
Leader in recycling
Being a circular economy changemaker
Leader in secondary material production
Reduce our carbon emissions
Caring for our people and ecosystems
Selectively gain market share
Key risk
Key mitigation
Change in the year
10. Unsustainable debt
Lack of availability in the marketplace of
attainable funding at competitive conditions
Risk direction
Strategic objectives
• Explore new or different financing structures
that reduce our financing cost, optimise
liquidity and financing headroom.
• Strict return requirements for
capital expenditure.
• Strong budget and project control on
investment projects and accept only
projects that meet our return requirements.
• Balance of leased and owned assets,
optimise asset utilisation.
• Debt levels were held at comfortable levels
with ample liquidity headroom.
• Revolving Credit Facility renewed in August,
covenant and liquidity headroom
remains adequate.
11. Regulatory compliance
Increasing complexity and changes in
environmental laws and regulations that
do not contribute to our sustainability
targets or undermine our market
competitiveness
Risk direction
Strategic objectives
• Implementation of compliance based
management system (ISRS).
• Include potential non-compliance issues in
business case evaluations and CAPEX-budgets.
• Participate in sector based associations and
engage with legislators and regulators to
advise on compliance matters for the sector.
• Adequate follow-up on certification and
internal audits.
• Potential risks are related to emerging
developments in regulations for specific issues
(eg. PFAS). We are monitoring this closely.
• ISRS implementation gap analysis provided
additional insights in risks and potential
non-compliance issues, which enables us to
better target investments to mitigate these gaps.
• New and changed regulatory standards create
organisational challenges around data definition
and recognition, to enable consistent reporting.
We have responded by implementing
process improvements.
12. Long-term contracts
Entry into long-term contracts on
disadvantageous terms that have
significant negative impact on
operations and performance
Risk direction
Strategic objectives
• Selective bidding on contracts, combined with
robust governance controls on entering any
new major contracts.
• Detailed risk assessments and due diligence
on contracts.
• Clear understanding of contractual
requirements and substantiated plans
to address and mitigate these risks must
be included in business cases and
investment decisions.
• The Board remains cautious regarding complex
long-term contracts; appropriate governance
procedures are in place.
• Due to careful review and decision to exit the UK
Municipal business, we believe this risk will be
mitigated to a normal business as usual level,
and we expect not to report on this risk
separately in the next financial year.
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Renewi plc Annual Report and Accounts 2024
73
Key risk
Key mitigation
Change in the year
13. Cyber threat and ICT failure
Cyber crime and/or ICT failure causing
business interruption, loss of revenue
or damages
Risk direction
Strategic objectives
• Data back-up and system recovery
procedures, following standard IT
security protocols.
• Review of business continuity planning,
back-up and recovery strategies.
• Service level agreements exist with
key external providers.
• Increased focus on developing new
mitigations for newly discovered
cyber security risks.
• Ongoing improvements to security in IT
infrastructure and user-awareness campaigns.
• Security breach monitoring and detection
capabilities are further improved.
14. Extreme heat
Global rise of seasonal average
temperatures, causing disruption in
continuity of business operations, loss of
revenue or damages due to climate change
Risk direction
Strategic objectives
• Develop risk assessments, emergency
responses and adapt contingency plans
to ensure business continuity.
• Review procedures for controlling
temperatures at sites when extreme
heat situations occur.
• Review the necessity to expand installation
of fire detection and prevention systems.
• No material changes in the year. We continue
to monitor occurrences and will develop
tools to quantify risk exposures and we
will adapt accordingly.
15. Water stress and drought
Local disruption of available water
sources and/or lower water levels, causing
discontinuity of business operations, loss
of revenue or damages
Risk direction
Strategic objectives
• Review risk assessments, emergency
response and adapt contingency plans
to ensure business continuity.
• Review procedures for how to respond when
water stress or drought situations occur.
• No material changes in the year. We continue
to monitor occurrences and will develop
tools to quantify risk exposures and
adapt accordingly.
16. Natural disasters, storms and wind, flooding
Natural disasters, caused by storms and
extreme winds, extreme rainfall, overflowing
waterways, causing local inoperability of
our facilities and/or fleet loss of revenue
or damages
Risk direction
Strategic objectives
• Emergency response and contingency plans
to ensure business continuity.
• Investment in additional water storage or
drainage capacity at some processing sites.
• No material changes in the year. We will
continue to monitor occurrences, and will
develop tools to quantify risk exposures and
adapt accordingly.
Risk management continued
Summary of key risks
74 Renewi plc Annual Report and Accounts 2024
Risk direction
Dynamic/More gradual
Stable/More gradual
Dynamic/Rapid
Stable/Rapid
Strategic objectives
Leader in recycling
Being a circular economy changemaker
Leader in secondary material production
Reduce our carbon emissions
Caring for our people and ecosystems
Selectively gain market share
Key risk
Key mitigation
Change in the year
17. Increasing pricing of GHG emissions
Changes in laws and regulations increasing our
exposure to pricing of GHG emissions, with cost
impact of business operations and
competitiveness challenges
Risk direction
Strategic objectives
• We monitor the regulatory landscape
across Europe to note any changes in
carbon taxing.
• We have built our carbon emission
reduction plan to reduce by 50% our
scope 1&2 emissions by 2030 (FY31).
• We are considering advanced
technologies for carbon capture.
• For more details about these actions see
‘The increasing price of GHG emissions’
on page 86.
• Actively following changes in regulations
in EU countries on carbon pricing.
• First decarbonisation roadmap built and
presented to Board.
18. Supply chain transparency
Complexity in laws and regulations on transparent
reporting about supply chain sustainability impact,
with cost increasing effects on business operations
and competitiveness challenges
Risk direction
Strategic objectives
• As CSRD starts being mandatory for
a wide range of companies in EU:
1) reporting and transparency on GHG to
become a standard and access to scope 3
should become easier within the
value chain.
2) carbon reduction targets in scope
3 will open the doors to discussions and
collaboration between stakeholders in
the value chain.
• The developments in the MyRenewi portal
create advanced dashboards that provide
insights for customers on recycling outcomes
and associated emissions.
• We support part of the CSRD reporting of
our customers by enabling our systems
to generate client-specific datasets.
19. Lack of developing climate policies
Lack of developing clear global climate policies
by governments or regulators which will slow
down adequate climate actions being
implemented swiftly
Risk direction
Strategic objectives
• We support and lobby for progressive
climate-related policies of governments in
our markets.
• We continuously monitor the progresses and
decisions from regulators and government
where we operate.
• We took part in several governmental and
associations’ working groups.
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Renewi plc Annual Report and Accounts 2024
75
Transition and physical climate risks overview
Category
Time horizon1
Key impacted
geographies
Potential financial
impact area
Scenario trend
significance
Link to
Key risks
Transition risk
Increasing pricing of GHG
emissions
Policy &
Legal
To 2025
Across all
• Operating
costs
• Capital
investment
Higher risk
3
4
Supply chain transparency
leading to decrease in volumes
Policy &
Legal
2025-2030
Across all
Revenues
Lower risk
3
4
Lack of developing
climate policies
Policy &
Legal
2025-2030
Across all
Revenues
Lower risk
3
4
Changes in waste volume and
composition due to reduce
and re-use principles
Markets
2025-2030
Across all
Revenues
Lower risk
1
3
Physical risk
Extreme heat
Acute &
Chronic
To 2025
Across all
• Operating
costs
• Capital
Investments
• Revenues
Higher risk
5
6
9
Water stress & drought
Chronic
2025-2030
Netherlands,
Belgium,
France,
Portugal
Moderate –
higher Risk
5
9
Flooding
Acute
2025-2050
Across all
Moderate –
higher Risk
5
9
Storms & wind
Acute
2025-2030
Across all
Moderate risk
5
9
1. Time horizon: By when the risk itself will start impacting Renewi’s activities.
Guidance on how to read “Scenario trend significance”:
• Transition risks: A direct output of our internal climate-related risks and opportunities assessment was the “impact rating” from
every transition risks and opportunities. These ratings represent the potential scale of impact on operations, reputation and financial
that those risks and opportunities have on Renewi. A weighting below 0 is a risk (negative impact), and above 0 is an opportunity
(positive impact). Risk and opportunities scores were then calculated by multiplying the “impact weighting” from that internal
assessment by the “scenario indicator delta”. A score closer to -1 is a higher risk, a score closer to 0 is a lower risk, a score above 0 is
an opportunity. The overall risk scores are provided per indicator.
• Physical risks: working with the same approach, the “impact rating” from every physical risks were generated. Physical risk scores
combine the relevance weightings and climate trends data at the locations of the site’s operations. Scores are displayed for both RCP4.5
and 8.5 under 2030 and 2050. Renewi uses RCP 8.5 for generating summary maps and disclosing here the scenario trend significance.
Risk management continued
Climate risk horizon
0-5 years:
Strategic key risk
0-25 years:
Climate-related risk
In the strategic risks assessment, the
impact and likelihood of key risks is
assessed for the upcoming 5 years.
Several climate related risks are already
integrated within this time frame as
key risks. Assessing and quantifying
the impact of climate related risks on
Renewi’s activities requires to consider
a longer time horizon. We also consider
climate related risks over a time horizon
of 0 to 25 years.
76 Renewi plc Annual Report and Accounts 2024
The main climate risks are as follows:
The increasing cost of GHG emissions
This risk is for Renewi both its primary risk
and opportunity. You can read more detail
about it on page 86 in the TCFD section.
To anticipate any potential impact
from carbon pricing, Renewi monitors
the regulatory landscape across Europe.
In the short term, Renewi expects no or
limited impact.
Not investing sufficiently in decarbonising
our operations, in green technologies,
efficiency upgrades and carbon capture
solutions may lead to high carbon costs in
the future. To be prepared for the medium
to long-term impact of carbon pricing,
Renewi has started its decarbonisation
journey and aims to halve its carbon
footprint Scope 1&2 by 2030 (FY31).
Extreme heat
This increases the risk of fire through
spontaneous combustion of waste.
Extreme heat can also make working
conditions difficult for our employees,
with the possibility of heat-related
illnesses such as heat stroke.
Water stress and drought
Water shortages may cause some plants
to halt operations or develop alternative
methods of obtaining water. At some sites,
low river levels may mean ships and barges
have difficulties reaching the dock.
In accordance with Provision 31 of the UK
Corporate Governance Code, the Board has
assessed the prospects of the Group over a
period of more than 12 months and has
adopted a period of five years for the
assessment which is in line with the
Group’s strategic planning process. The
strategic growth plan represents the
longer-term strategic goals of the Group
which are expected to deliver significant
growth in the later years of the five-year
plan, but the benefits of any projects not
yet formally approved by the Board are not
included in our viability assessment
modelling.
The key assumptions made in Renewi’s
long-term financial model are: optimise the
portfolio, build a strong platform for
growth and drive organic growth.
Optimising the portfolio includes the
continuation of recovery at ATM along with
the completion of certification and the
divestment of UK Municipal. The Group’s
ability to finance in FY25 the funding of the
UK Municipal exit and settle any short-term
funding repayments is a key judgement as
set out in the going concern considerations
included in section 1 of the consolidated
financial statements. It has been assumed
for viability modelling that all future
maturity of financing facilities will be
replaced with a facility of equivalent value
at that time.
The Board assessed the principal risks to
the business as set out in the preceding
pages and concluded that six severe but
plausible risk scenarios should be tested
separately. We have also tested an
appropriate combination of scenarios. The
risks selected for modelling are considered
to be those with the most significant,
quantifiable potential impact in the review
period. The scenarios modelled included
up to 20% lower recyclate product pricing
due to challenges in the offtake markets, a
3% volume driven revenue due to an
economic downturn, further delays in the
operational ramp-up at ATM combined
with increased plant downtime, failure to
implement general price increases due to
price pressure lower economic growth and
a cyber-attack which severely impacts our
ability to operate for a period of up to one
month. For each scenario the Group has
also identified the mitigation steps it would
take to reduce the risk and performed the
scenario testing on that basis. These
mitigations include the deferral of capital
expenditure, working capital controls and
other discretionary cash flows.
The Group’s liquidity and financial
headroom have been assessed and
incorporated within the risk-scenario
modelling. Based on the consolidated
financial impact of the sensitivity analysis
and associated mitigating actions that are
either in place or could be implemented, it
has been demonstrated that the Group
maintained headroom in the event of each
of the separate scenarios and a combined
scenario occurring.
Having considered all of the elements of
the assessment, the Directors confirm they
have a reasonable expectation that the
Group will be able to continue in operation
and meet its liabilities as they fall due for
the period of assessment.
Viability statement
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
77
TCFD
Task force on Climate-related
Financial Disclosure (TCFD)
Introduction
Climate change and sustainability are at the
core of Renewi’s purpose to protect the
world by giving new life to used materials.
As a waste-to-product company, we
enable the circular economy and
contribute to climate-change mitigation
by providing recycled, lower-carbon
secondary raw materials. As such, our
strategy is driven by supporting the effort
of keeping global warming to 1.5°C and
capitalising on opportunities provided by
the transition to a low-carbon economy.
Historically, we have considered and
assessed the Group to actively support
other companies’ contribution to keep
global warming to 1.5°C by enabling
carbon avoidance outside our Group’s
own value chain. From a transition
perspective, this is due to our position as
a leading waste-to-product company. We
have not yet been significantly impacted
by physical climate change. However,
we are continuing the integration of the
Task Force on Climate-related Financial
Disclosures (TCFD) framework into our
processes. Accordingly, we are now
considering climate-related risks
and opportunities in a systematic,
comprehensive and consistent way.
This will continue to evolve over time to
meet the increasing needs of these risks,
as well as the disclosure needs of all
stakeholders related to them.
Statement of compliance
Renewi has complied with the requirements
of the Financial Conduct Authority,
in particular LR 9.8.6R, by including
climate-related financial disclosures
consistent with the recommendations
of the TCFD across its four pillars. Areas
in which we have made progress this year
and in which we continue to develop our
climate-related disclosures are described
throughout this section, and we explain
how our actions align with the 11 TCFD
recommendations in the table below.
The areas where we have not yet fully
adopted, along with our plans to improve
in the coming years are:
• Strategy – S(c): While we performed
a qualitative risk and opportunities
assessment in our first year of disclosure,
we have yet to update our climate
scenarios and repeat this exercise
across all our locations. We are also yet
to further quantify the identified risks
and opportunities. We have conducted
a first pilot assessment for two risks
and opportunities, and are planning to
expand this to encompass all risks and
opportunities over the coming years.
• Risk management – Ra): From the update
of our climate scenario analysis, further
description of the relative significance
of climate-related risks in relation to
other risks needs to be provided.
• Risk management – R(c): We need
to further improve awareness and
understanding of climate-related
risks across the Group.
• Metrics & Targets – M(c): We are
determined to follow the SBTi guidance
towards a net zero decarbonisation
plan. We have committed to setting
near-term targets. While we are waiting
to get our targets validated by SBTi, we
are focusing on further enriching our
decarbonisation roadmap. In the
following years, we will extend this
plan to net-zero target.
Renewi will be working in the coming
years to meet full compliance on TCFD
requirements. By the end of FY25, we
expect to reach compliance in the
sections Ra) and Rc). Renewi will be
making good progress on section Sa)
during FY25 but we expect final work to be
completed during FY26. The validation of
our carbon reduction targets by the SBTi
is intended in FY25 but depending on
the availability, feedback and review
by the SBTi.
Compliance
Future focus
Location
page
Statement of compliance
78
Governance
Ga
a. Describe the Board’s
oversight of climate-related
risks and opportunities.
• Compliant
• The Board will continue its regular oversight, engagement
and challenge on climate-related strategy and activity.
• As the Group prepares for CSRD reporting by 1 April 2025, its
governance framework will be reviewed to ensure it includes
sufficient focus on ESG topics, including climate-related risks
and opportunities.
80
Gb b. Describe management’s
role in assessing and
managing climate-related
risks and opportunities.
• Compliant
• Management’s role in assessing climate risk will be enhanced
by improved data coverage.
• There will be focus on collating, enhancing and automating ESG
and climate-related activity, reporting and disclosures.
80-81
78 Renewi plc Annual Report and Accounts 2024
Compliance
Future focus
Location
page
Strategy
Sa
a. Describe the climate-related
risks and opportunities the
organisation has identified over
the short, medium and long term.
• Compliant
• Scenario analysis exercise to be repeated with latest
available climate scenarios.
77
82-84
Sb
b. Describe the impact of
climate-related risks and
opportunities on the
organisation’s businesses,
strategy and financial planning.
• Compliant
• Through updated scenario analyses, the Group will
revise the potential impact of climate-related risks and
opportunities on its strategy and expected financial
and performance.
85
Sc
c. Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario.
• Partly-compliant
• Improvement of the Group’s modelling through updated/
improved data and development of new models to cover
other risks, opportunities and financial impact metrics.
85-86
Risk management
Ra
a. Describe the organisation’s
processes for identifying and
assessing climate-related risks.
• Partly-compliant
• Develop internal methodologies to identify, assess and
manage climate-related risk.
• Analyse the outputs from our second generation climate
scenario analysis to support climate risk management.
• As CSRD reporting requirements become clearer to the
Group, improve our climate-related data coverage
and quality.
87-88
Rb
b. Describe the organisation’s
processes for managing climate-
related risks.
• Compliant
• Sufficiency of existing mitigation efforts will be reassessed
during the Group’s next scenario analysis exercise.
88
Rc
c. Describe how processes
for identifying, assessing and
managing climate-related risks are
integrated into the organisation’s
overall risk management.
• Partly-compliant
• As part of the regular risk assessment process
improvement, further raise awareness and understanding
of climate-related risks within the organisation.
88
Metrics and targets
Ma
a. Disclose the metrics used by the
organisation to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
• Compliant
• The Group will continue to identify and track appropriate
metrics to measure progress against our climate
ambitions and monitor progress against targets.
• The Group does not have an internal carbon pricing
framework but continues to consider the implementation
of appropriate tools and methodologies.
89
Mb
b. Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse
gas (GHG) emissions and the
related risks.
• Compliant
• Continue to enhance emissions calculations and improve
data quality.
89
Mc
c. Describe the targets used by the
organisation to manage climate-
related risks and opportunities
and performance against targets.
• Partly-compliant
• To get our targets validated by SBTi.
• To begin enriching the Group’s scope 3
decarbonisation roadmap.
• The Group will continue to monitor performance against
science-based targets and revise this in line with available
science and the latest pathways.
89
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
79
TCFD continued
Governance
Renewi carefully considers climate-
related matters during all key decision-
making at every management level of the
organisation. Over the past years, Renewi
took active steps to further improve its
climate governance. This included a
workshop organised with the help of a
leading global sustainability consultancy
team, which served as an upskilling
exercise to better align our processes and
priorities on climate governance. It was
attended by the Chief Executive Officer
(CEO), Chief Financial Officer (CFO) and
several senior management positions
across functions such as Strategy,
Finance, Risk and Sustainability.
The discussions that took place at this
workshop resulted in clear targets for
improving our climate governance,
which are described below.
Ga) Board oversight
The Board considers climate change
issues when reviewing and guiding
strategy and investment decisions. The
Board also has ultimate responsibility for
ESG, sustainability and climate-related
risks and opportunities. For example, the
Board requires each organic investment,
as well as every M&A or divestment
proposal, to cover its impact on the
Company’s carbon footprint and
recycling rate and also sets ESG-related
performance objectives for management.
The Board’s ESG responsibility also
includes approving the climate-related
risks and opportunities in the risk register
and setting climate-related targets.
Climate change is discussed at least
every six months through updates from
the Executive Committee, during which
progress against set targets is discussed.
To clarify responsibilities between itself
and the Board, the Audit Committee
updated its terms of reference to explicitly
include its climate-related tasks, which
are to review climate-related assessments
and associated methodologies, ensure
compliance with all relevant standards
and regulations, and track progress
towards targets. Sustainability topics
are mandatory agenda points at all
Audit Committee meetings.
The Board reviewed and approved Renewi’s
decarbonisation ambition and targets in
FY23. At the end of FY24, the Board
reviewed its decarbonisation strategy.
Given the high importance of climate
change to the purpose and values of
Renewi, many Board members have
good knowledge of climate change
in a commercial context. For more
information on their experience, please
see pages 94 to 95. To recognise the
importance of climate-related disclosures
to a broad range of stakeholders, the
Board regularly discusses climate-related
issues to gain a greater level of knowledge
that enhances the review, assessment,
modelling and reporting of these risks.
As the Group prepares for CSRD reporting
for its financial year 2025, its governance
framework will be reviewed to ensure it
includes sufficient focus on ESG topics,
including climate-related risks and
opportunities. The process is also under
way to verify and get Renewi’s near-term
targets validated by SBTi.
Gb) Management’s role
Within the Executive Committee, the
CEO is responsible for communicating
climate-related issues to the Board.
The CFO is responsible for guiding climate
risk management, and the Chief Strategy
Officer (CSO) is accountable for driving
climate-related strategies. The Executive
Committee reviews investment decisions,
including for climate-related risks and
opportunities, on an ongoing basis. It is
responsible for overseeing strategy and
targets, reviewing progress and managing
roadmaps and specific projects to meet
targets. Climate change is a standing
agenda item at each Executive Committee
meeting, following which updates are
communicated to the Board at least
every six months.
Our Sustainability function is responsible
for the day-to-day management of
climate-related matters at the
management level and for reporting
progress against our climate, ESG and
sustainability targets. The Sustainability
80 Renewi plc Annual Report and Accounts 2024
Manager collects climate-related
information from the Divisions and updates
the Executive Committee on progress,
while Sustainability Leads across all
divisions and key functions are responsible
for strategy implementation and data
collection at division and function level.
The Group’s long-term incentive plan
is designed to incentivise and reward
the achievements of earnings per share
growth, total shareholder return, the
recycling rate based on the Company’s
sustainability plan and, for Executive
Directors only, return on capital employed
over a three-year performance period.
The CEO, CFO and Executive Committee
members already have Renewi’s recycling
rate targets within the incentive plan.
Renewi’s recycling rate performance
directly quantifies the positive outcome
the Company achieves in combating
climate change through increasing the
circularity of materials, avoiding use of
landfill and incineration with or without
waste to energy, eliminating CO2 from our
customers’ carbon trajectory and enabling
carbon avoidance within their value chains.
We actively manage the Company’s
knowledge base on climate change and
sustainability and its importance to our
purpose and values, and include education
on these subjects both in our onboarding
sessions and online training materials
accessible for all employees. For example,
we use the UNGC’s (United Nations Global
Compact) Academy website to offer free
training to our employees. Employees also
have access, via a SharePoint page, to
Renewi’s sustainability goals, metrics and
targets, and latest updates, as well as basic
knowledge on climate change and how we
contribute to enabling a circular economy
of materials. Through a biannual live event
translated into three languages, we provide
updates for employees and customers on
our sustainability goals, year-to-date
performance figures and further
background on climate change and
our role in the circular economy.
We are focusing on collating, enhancing and
automating our reporting and disclosures
on ESG and climate-related activity.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
81
TCFD continued
Strategy
Sa) Our identified climate-
related risks and opportunities
We have worked alongside a leading
global sustainability consultancy to
identify relevant climate-related risks and
opportunities and assess the materiality
of these issues aligned with our Enterprise
Risk Management framework.
In FY22, Renewi ran its first scenario
analysis to identify the climate-related
risks and opportunities and assess the
resilience of its business model.
The methodology was based on the
climate scenarios provided by the
Intergovernmental Panel on Climate
Change (IPCC) (RCP 4.5 and RCP 8.5, 5th
Assessment Report) and the International
Energy Agency (IEA) (Net Zero and Stated
Policies scenarios). See more details about
the transition and physical scenarios
selected in the two tables below.
Renewi has selected these four different
scenarios to explore the possible risks and
opportunities associated with low and
high-carbon futures across a 30-year
time horizon. The analysis exercise was
undertaken primarily to understand and
quantify how climate change risks may
impact the Group’s activities, understand
what actions might be required to ensure
the future resilience of Renewi’s business
model, and support better planning and
preparation for alternative outcomes.
Transition scenarios selected for analysis:
Source
International Energy Agency (IEA)1
Net zero by 2050
Stated policies
Description
A pathway that limits global warming to 1.5°C
through stringent climate policies and
innovation. This reaches net zero CO2
emissions by 2050.
A scenario considering currently stated policies
without additional policy implementation. It takes
granular, sector-by-sector data, looking at existing
policies and measuring those under development.
It roughly aligns with a 3°C temperature outcome in
2100.
Rationale for selection
A lower carbon scenario – also seen as the
most optimistic scenario and aligned with
the Net-Zero Emissions by 2050 Scenario
(NZE).
A higher carbon scenario aligned with the Stated
Policies Scenario (STEPS) that would not even
reach net-zero by 2100.
1. IEA World Energy Outlook 2021. IEA Data was supplemented by market or technology-specific trends from other equivalent sources.
Physical scenarios selected for analysis:
Source
Intergovernmental Panel on Climate Change (IPCC) – Assessment Report 5 (2014)
Representative concentration pathway (RCP) 4.5.
Representative concentration pathway (RCP) 8.5.
Description and rationale of
selection in 2021 (prior to the
release of the 6th IPCC Report).
This used to be a scenario that assumed the
implementation of emissions management
and mitigation policies most closely aligned
with the commitments of the Paris Agreement.
This used to be a ‘business as usual’ scenario that
assumed, through limited co-ordinated action, the
world would continue to emit significant amounts
of GHGs throughout the century, with warming
continuing to 2100. It was selected as the scenario
most closely aligned with emissions trends and the
rate of warming known at the time of the assessment.
82 Renewi plc Annual Report and Accounts 2024
The following time horizons were used:
Time Horizons
Description
Short to medium term (0-5 years)
The time horizon for strategic and financial planning cycles
Long term (>5 years)
The time horizon for matters occurring beyond the Group’s financial planning cycle. This was considered
through scenario analysis, which assessed two different timeframes: until 2030 and 2030-2050
More information on our risk assessment
process is provided on pages 66 to 69
and in the risk management section of
this disclosure.
Renewi considers the advancement of the
circular economy to be one of its key
deliverables (see page 23 of our strategy
section). We are acutely aware of climate
change and the socio-economic transition
driven by mitigating and adapting to its
effects, and we embrace the responsibility
we bear to play a central role in shaping
the market in which we operate. At the
same time, we are aware that what we
do will to some extent be shaped by
the ongoing effects of climate change.
To quantify these potential changes,
Renewi has mapped its climate-related
risks and opportunities using the results
of the study carried out in FY22, which
remain relevant to the business today.
We are making steady progress in
assessing our current mitigation measures
for transition risks in light of the scenario
analysis findings to understand whether
they are sufficient or not. Therefore, only
planned mitigation approaches are listed.
For physical climate risks, our risk
management process already considers
some mitigation measures and these
are therefore listed as current
mitigation approaches.
The tables on page 76 provide details
on the key climate-related physical and
transition risks. The table on the next page
provides an overview of the key transition
opportunities that we consider most
material to us.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
83
TCFD continued
Overview of Renewi’s key climate-related transition opportunities
Category
Key opportunity
Description and commentaries
Time
horizon
Potential
financial
impact area
Size of
impact1
Ongoing measures to capture opportunities
Products &
Services
Increasing
pricing of GHG
emissions
Impact on the pricing of emissions:
• If ETS and national regulations
on GHG pricing extend to the
geographies where Renewi operates,
this might further disincentivise the
incineration of waste and boost
recycling services – providing a
growing revenue of sorted waste
volumes and revenue streams.
Impact on carbon avoidance:
• If the Group can monetise the
carbon avoidance its services
provide this could secure a
new growing revenue stream.
To 2025 Revenues
HIGH
We monitor progress on ETS and the
development of national regulations
on GHG pricing.
We aim to gain broader recognition for
the carbon avoidance we generate by
recycling among legislators and
standard-setting bodies.
Products &
Services
Development
of waste stream
recycling
activities that
support the
low carbon
transition
Producing materials from waste that
are expected to be highly sought-after
to enable the transition, therefore
appreciating in value, benefits the
Group by increasing demand for
Renewi’s services and products.
2025 to
2030
Revenues
HIGH
We monitor the market for opportunities
to recycle additional waste streams
and advancements in processing
technologies, to create the highest
possible product quality.
Products &
Services
Enhanced
climate change
regulation and
reporting
Continuing development of climate
change regulation could increase
competitiveness because the Group
is 1) lobbying for positive change and
2) structuring its internal organisation
to comply with upcoming corporate
sustainability regulation disclosures.
Renewi is also preparing to support
part of the CSRD reporting of its
customers, which would increase
the Group’s competitiveness.
2025 to
2030
Revenues
MODERATE
We aim to be a leader in sustainability and
do what is necessary to be recognised as
such by the international rating agencies.
We monitor climate change regulations
and corporate sustainability reporting
disclosures to identify potential
business opportunities.
We aim to build an IT structure and
process roadmap to enable our systems
to generate client-specific datasets.
Markets
Increasing cost
of materials
Higher revenue, due to the prices of
recycled materials becoming more
competitive as costs of raw
materials rise.
2025 to
2030
Revenues
MODERATE
To replace virgin materials as much
as possible, we invest in recycling
technologies that closely match
their specification and price.
Markets
Circular
economy
principles
Being a circular economy specialist
allows us to expand our offering.
To 2025 Revenues
LOW
We aim to maintain a leadership position
by continuously investing in advanced
recycling technologies and capabilities.
Products &
Services
Increasing
importance of
Scope 3
emissions
Increase in customers who may need
to reduce emissions leads to higher
revenue and product/service
opportunities.
FY24 already showed an increase in:
• customers looking for lower carbon
footprint raw materials; and
• customers looking for partnership in
reducing the carbon emissions from
the management of their waste.
To 2025 Revenues
LOW
Our investment in the MyRenewi portal
will create advanced dashboards that
provide insight for customers on recycling
outcomes and associated emissions.
As a new ERP System is currently
being set up, this will also enable the
generation of client-specific carbon
emission reports.
1. Guidance on how to read “size of impact” is available on page 76.
84 Renewi plc Annual Report and Accounts 2024
Sb) How climate-related risks
and opportunities influence
our strategy
Our strategy is inherently centred on goals
and ambitions that enhance sustainability
and tackle the climate crisis. Each Renewi
division analyses the sustainability and
climate-related developments related to
its specific market annually as part of our
strategic planning process. These analyses
form the basis for developing a set of goals,
ranging from GHG emissions avoidance
by recycling and supporting the
circular economy, to investing in the
commercialisation of innovative recycling
techniques to reduce waste and increase
the quantity and quality of secondary
materials. We have identified three
sustainability themes in our sustainability
strategy, two of which are directly linked
to and impacted by climate change and
the opportunities and risks assessed in
our scenario analysis: Being A Circular
Economy Change Maker and Reducing
Our Carbon Emissions. These are
outlined in detail on pages 36 to 43.
Our financing and investment are also
firmly related to climate. Renewi’s core
debt is entirely green and financed with
instruments issued under the Renewi
Green Finance Framework, which are
aligned with the Green Bond and Loan
taxonomy and principles. We are also
investing to decarbonise our operations, to
help us better align with the international
effort to limit global warming to 1.5°C (see
Reducing Our Carbon Emissions on pages
40 to 43).
Transition opportunities and risks
We focus on extracting value from waste by
creating recyclates that help avoid the use
of virgin materials in manufacture, preserve
valuable natural resources and avoid
millions of tonnes of GHG emissions every
year. There is a growing demand for our
services from companies looking to reduce
supply chain emissions and, ultimately,
from consumers who increasingly seek
recycled products and sustainable services.
This increased demand is reflected in our
table of transition opportunities, which
outlines the different trends that will
ultimately benefit Renewi by allowing us to
grow our revenue and product offering. You
can read more details on how we will do
this in the table of transition opportunities.
One transition opportunity is “enhanced
climate change regulation and reporting”.
It will soon be mandatory for a wide range
of companies to disclose a set of KPIs on
climate change and their contribution to
the circular economy, and customers are
increasingly asking Renewi to provide
client-specific sets of data that comply
with the Corporate Sustainability Reporting
Directive (CSRD). This need could be
addressed through customer reports on
the MyRenewi portal, and we are already
looking at delivering a first set of KPIs in
FY25. A further opportunity is presented
by the increasing importance of Scope 3
emissions, where we are not only meeting
the rise in requests to deliver carbon
footprint details of customers’ waste but
also becoming active partners in Scope 3
decarbonisation; for example, we have
partnered with Schiphol airport to lower
its carbon footprint and provide adequate
data to justify the performance and enable
reporting (see the case study on page 6).
Taking advantage of opportunities such
as these further strengthens the business
and brings greater transparency in the
supply chain.
The core metrics we use to assess our
progress against these opportunities
are our recycling rate and total avoided
emissions. These metrics are reported in
the chapter Being A Circular Economy
Change Maker.
However, some recycling activities, and
particularly the increased valorisation of
waste by converting it into high-quality
secondary materials, require energy to
sort and treat what we collect through
successive processes. The sophisticated
sorting and treating techniques we use
increase energy consumption and
therefore our own GHG emissions.
Decarbonising the carbon journeys
of our customers may therefore come at
the cost of increasing our own footprint.
This is reflected in our biggest transition
risk and opportunity: the increasing cost
of GHG Emissions
Physical risks
A key risk is that of fire due to the rise in
the number of extreme heat events. Fire
is already one of the greatest operational
risks in the waste industry due to the
danger of spontaneous combustion,
and therefore measures to mitigate this
risk have long been integrated into our
Enterprise Risk Management system;
for example, smart technology such as
cameras supported by artificial intelligence
already plays an important role and are being
deployed on sites. However, continued
investment will be required to maintain
adequate levels of fire prevention, detection
and suppression in light of the increased
risk presented by extreme weather.
You can find more details on physical risks
on page 77.
Sc) Our view on strategic
resilience
We consider our current business model
and strategy to be resilient to the transition
to a lower carbon economy. This is because,
on balance, this transition presents more
opportunities for Renewi than risks
considering our position in the circular
economy. This conclusion is based on
the assessment of our material risks
and opportunities under different
future scenarios.
Next to the transition risks and
opportunities, physical climate change
poses risks to our operations and supply
chain. However, mitigation measures are
either already in place or are in the
process of being further developed.
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85
TCFD continued
An initial, qualitative scenario analysis
was carried out to better understand the
potential timing and future materiality of
key climate-related risks and opportunities.
We used globally recognised datasets that
give insight into the possible risk and/or
opportunity trends associated with low
and high-carbon futures. This supports
better planning and preparation for
alternative outcomes. The scenarios
used in the assessment are shown in the
section Sa). The outcomes and findings
of the scenario analysis were presented to
the Executive Committee and subsequently
to the Board, to validate the most significant
risks and opportunities for our business.
As highlighted in the table Physical
scenarios selected for analysis, our first
scenario analysis was carried out using
previously available climate data.
With the publication of the Climate Report
AR6 IPCC 2021, new climate scenarios
have been made available for companies,
institutions and governments to use.
The European Union’s Emissions Trading
Scheme (ETS) imposes an emissions cap
that is reduced annually and increases the
cost of high-emitting activities to drive
investment and behavioural change. Step
by step, the European Union is increasing
ETS coverage on CO2-emitting industries
and sectors.
In 2026, the EU Commission will conduct
an impact study on including waste-to-
energy (WtE) plants in the ETS, as it is
considering bringing them into the
scheme from the beginning of 2028.
If WtE plants are included in the scheme,
incineration will become more expensive
as carbon taxes will be applied to
emissions, which will in turn increase
the total cost of waste for customers.
To anticipate any potential impact on WtE
plants, Renewi monitors the regulatory
landscape across Europe to note any
changes in carbon taxing. At the
beginning of 2024, national levies
were introduced in the Netherlands
and Germany, while the UK is preparing a
national CO2 tax based on the ETS model.
Belgium does not currently levy a national
CO2 tax but one of its major WtE plants
is subject to the ETS because the cap
already applies to its main business
activity, which is processing paper and
cardboard. In the Netherlands, Renewi
expects no or limited impact from the
tax in the short term, but price dynamics
will significantly change if WtE plants are
integrated into the European Union’s
Emissions Trading Scheme. In Belgium,
two dynamics are evolving in parallel:
the free allowance will be lowered year
on year and the CO2 price is predicted
to increase. If the ETS scheme does not
extend to all WtE plants, a major price
impact is still predicted in the medium
to long term.
As the gate fee to incinerators increases,
industries and municipalities are expected
to reduce the amount of waste sent to
incineration and increase their use of
recycling services, providing a growing
revenue of sorted waste volumes and
revenue streams. This will boost metrics
such as recycling rates and carbon
avoidance. The Group is also looking
at possibilities to monetise the realised
carbon avoidance as a service to secure
a new growing revenue stream.
While acknowledging such challenges,
we continue to decarbonise our
operations. You can learn more about our
decarbonisation efforts and GHG footprint
in Reducing Our Carbon Emissions on
pages 40 to 43.
The five new scenarios provide a greater
narrative on climate trends, combining
more representative concentration
pathways (RCPs) and shared
socioeconomic pathways. Renewi
will update its scenario analyses in
the coming year.
We believe that this first qualitative
scenario analysis remains relevant
and expect that updating our scenario
analyses with updated climate models
will provide more insights into short to
medium-term priorities.
To further strengthen our resilience,
we have also begun to quantify the risks
and opportunities of climate change by
piloting internal risk modelling. This has
developed our understanding of the risks
and the data needs associated to mitigate
them; it has also expanded awareness of
these risks across the Group. We intend
to further develop those models and to
cover other risks and opportunities.
The increasing pricing of GHG emissions
86 Renewi plc Annual Report and Accounts 2024
Risk management
Ra) Our organisation’s processes for
identifying and assessing climate-
related risks.
Two years ago, we conducted our first
climate-related risk identification exercise.
In assessing climate-related risks and
opportunities, we followed the categories
outlined by the TCFD. We identified a long
list of relevant physical and transitional
climate-related risks that the business
is potentially exposed to, as well as
opportunities, while also considering
changing regulatory requirements
concerning climate change. For the
transition risks, we worked with 10 of the
most material climate-related transition
risks and opportunities for Renewi (six
opportunities and four risks) that were
identified during an internal assessment
step. For the physical risks, the scenario
indicators used gave us a headline view of
the most material climate-related physical
risks for a sample of 40 Renewi’s locations,
across all technologies and geographies.
During the exercise, we qualitatively
assessed the timeframe, likelihood and
impact of identified risks and opportunities
through stakeholder workshops, using
input from across the business to develop
an inherent risk/opportunity profile. The
process of risk identification is led jointly by
the Sustainability Manager and Group risk
management together with the divisions.
The timeframe of a given risk was
separated from its likelihood due to
the long-term nature of some climate
issues, which extend beyond the typical
time frames used in enterprise risk
management. Likelihood and impact
were scored on a scale of 1–5, from highly
unlikely/insignificant to almost certain/
severe, matching the existing Renewi ERM
categories. Scenario analysis was applied
to the most material risks and
opportunities, while risks were assessed on
an inherent basis to understand the
baseline risk exposure. This means any
mitigation efforts already in place have not
yet been compared to the perceived
change in baseline conditions to determine
whether they would still be sufficient to
manage the risk.
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Renewi plc Annual Report and Accounts 2024
87
Our scenario analysis approach is
described in the Strategy section. We
did not update our scenario analysis in
FY24 as we considered the results of the
previous analysis were still relevant.
In the coming year, we will expand the
climate-related risk identification exercise
beyond the top 40 sites to encompass
all our locations. We will also work with
updated scenario analyses and update
our risk scoring to quantify the impact of
mitigation actions that have been in place
for three years. This will enable us to
calculate inherent risk and mitigated
risk scores.
We have focused on incorporating climate
risks into our wider risk management
framework (see paragraph R(c)) and
begun to quantitatively assess our
highest risks (see paragraph S(c)).
Rb) Our organisation’s processes
for managing climate-related risks
We have reviewed our existing efforts
to mitigate key risks and have outlined
our strategy for maximising identified
opportunities in our risk tables (see on
page 77). Detailed in these tables are the
actions taken to mitigate key identified
risks. Our next step is to assess whether
these measures are sufficient, considering
the results of our forthcoming scenario
analysis exercise.
Rc) How processes for identifying,
assessing, and managing climate-
related risks are integrated into
the organisation’s overall
risk management
In the assessment process, climate-
related risks have been considered up to
2050. This differs from our enterprise risk
management framework that we use to
conduct risk assessments for the wider
business, where timeframes are aligned to
our five-year strategic planning exercise.
This year, we have integrated climate
risks into their divisional risk assessments.
This gives visibility to climate-related
risks across functions and divisions
and incorporates them into regular
risk management processes at
division and site level.
TCFD continued
88 Renewi plc Annual Report and Accounts 2024
Metrics & targets
Ma) and Mb): Our climate metrics
To provide vital insights that inform our
decision-making, we manage and assess
climate-related risks and opportunities
with a set of climate metrics. These are
reported in our sustainability strategy
chapters Being A Circular Economy
Change Maker and Reducing Our
Carbon Emissions on pages 36 to 43.
We began collecting a complete set of
Scope 1, 2 and 3 data in FY22 and have
obtained limited assurance for Scope 1&2.
Our GHG footprint methodology
follows the Greenhouse Gas Protocol,
a comprehensive, global, standardised
framework for measuring and managing
emissions and is reported in the chapter
Reducing Our Carbon Emissions, which
also describes some of the underlying
drivers of these emissions, including
fuel and energy use, and our targets
to reduce them.
Mc): Our climate-related targets
In FY23, we set to work on discussing and
defining our decarbonisation ambitions for
2030. In FY24, we submitted our near-term
science-based target for 2030, aligned with
a 1.5°C pathway, to the Science-Based
Targets initiative (SBTi). In FY25, we will
begin engaging with SBTi to get those
targets validated.
Beyond 2030, our target should be net-zero,
as defined by the SBTi, meaning no more
than 10% of emissions will be offset.
In FY24, we focused on building our
decarbonisation roadmap towards our
50% carbon reduction target on Scope 1&2
emissions from our FY22 baseline by 2030
(FY31). We are currently on track to deliver
our intermediary carbon reduction target
by FY26, which is in two years time.
Further information about our
decarbonisation efforts can be found
in Reducing Our Carbon Emissions on
pages 42 and 43. Additional climate-related
targets are reported in the sustainability
strategy section of this report, Being A
Circular Economy Change Maker (pages 36
to 39), and mapped to existing metrics that
we report annually.
We consider carbon pricing legislation in
the countries in which we operate as this
presents both a risk and an opportunity.
We do not currently have an internal
carbon price in place but monitor local
and national regulations on GHG pricing
as their introduction may disincentivise
customers from incinerating waste and
boost recycling services, providing a
growing revenue of sorted waste
volumes and revenue streams.
We believe in accurate measurement
of climate-related activity and engage in
lobbying for regulation around avoided
emissions. We also believe that our own
climate-related opportunity metrics – for
example, recycling rate, avoided emissions
and secondary materials produced – are
fit for purpose and vital in helping us to
understand and track progress against
identified transition opportunities. For
more information on our metrics, see the
chapter Being A Circular Economy Change
Maker on pages 36 to 39.
Traffic in this hallway
was halted to capture
this photo
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Renewi plc Annual Report and Accounts 2024
89
Section 172(1) statement
Section 172(1) statement
Throughout the past year,
the Board of Directors has
continued to promote the
long-term success of the
Company while also having
due regard to the matters set
out in Section 172(1) of the
UK Companies Act 2006.
Directors have had regard to those
specific factors listed below, as well as
others that are relevant to the decisions
being made. The Board acknowledges
that not every decision may result in a
positive outcome for all stakeholders.
By considering our purpose, values and
strategic priorities, the Board aims to
S172 (1) Summary
S.172 (1) Factor
Relevant disclosure
a. Likely consequences of any decisions in the long term
Chairman’s statement (page 18)
CEO’s statement (page 20)
CFO’s statement(page 54)
Being a circular economy change maker (page 36)
Reducing our carbon emissions (page 40)
Stakeholder engagement (page 112 to 115)
Principal decisions during FY24 (page 116)
b. Interests of the Company’s employees
Employee engagement (page 44)
Diversity (page 46)
Caring for our people and ecosystems (page 44)
Safety first: our zero accident ambition (page 44)
c. Need to foster the Company’s business relationships
with suppliers, customers and others
Stakeholder engagement (page 112)
Modern Slavery Statement (renewi.com/en/our-policies)
d. Impact of the Company’s operations on the community
and environment
Being a circular economy change maker (page 36)
Reducing our carbon emissions (page 40)
TCFD disclosures (page 78)
Caring for our people and ecosystems (page 44)
e. Desirability of the Company maintaining a reputation
for high standards of business conduct
Business model (page 4)
Caring for our people and ecosystems page 44)
Risk management (page 66)
Audit Committee Report (page 119)
Code of Conduct (renewi.com/en/our-policies)
f. Need to act fairly between the members of the Company Principal rights and obligations attaching to shares (page 149)
Annual General Meeting (page 150)
ensure that decisions are consistent and
intended to promote the Company’s
long-term success.
The Company continued engaging with
key stakeholders throughout the year to
deepen its understanding of the issues
and factors that are significant to them.
Our key stakeholders are listed in the
Stakeholder engagement section of the
Corporate Governance Report (see pages
112 to 115). Here we identify the relevance
of each stakeholder to our business
model and describe areas of focus,
how the Company engages with them,
Board oversight and the outcomes of
engagement. Details of how the Directors
discharged their Section 172(1) duties
when making principal decisions during
FY24 are set out on page 116 of the
Corporate Governance Report.
Renewi is a waste-to-product company.
Environmental and sustainability matters
are at the heart of what we do. The
consideration and impact of the Group’s
operations on the environment and our
wider contribution to the circular economy
are evidenced throughout the Strategic
Report section of this Annual Report and
further reported on our website.
The Directors recognise the importance
of increasing engagement with the widest
range of stakeholders, taking decisions
that will support the circular economy
and, at the same time, operating in a way
that helps secure the long-term success
of the business.
90 Renewi plc Annual Report and Accounts 2024
Non-Financial and Sustainability
Information Statement
This section of the Strategic Report constitutes the Non-Financial and Sustainability Information Statement in compliance with Sections
414CA and 414CB of the Companies Act 2006. The information listed in the table below is incorporated by cross-reference to the relevant
parts of the Annual Report.
Reporting requirement
Section of annual report
1. Description of business model
• Business model (page 4)
2. The main trends and factors likely to affect the future development, performance and position
of the Group’s business
• Market, trends and competitors (page 11)
• Operating review (page 60)
3. Description of the principal risks and any adverse impacts of business activity
• Summary of key risks (page 70)
• TCFD Report (page 78)
4. Non-financial key performance indicators
• Measuring our performance (page 53)
• Being a circular economy change maker (page 36)
• Reducing our carbon emissions (page 40)
• Caring for our people and ecosystems (page 44)
Reporting requirement
Renewi policies, processes and standards which
govern our approach
Risk management
Section of annual report
5. Environmental
matters
• Environmental policy
• Regulatory compliance risk
(page 73)
• TCFD Report (page 78)
• CEO’s statement (page 20)
6. Employees
• Code of Conduct
• Human Rights Statement
• Raising Concerns and Anti-Retaliation Policy
• Health & Safety Policy
• Diversity, Equity & Inclusion Statement
• Health and safety risk
(page 71)
• Labour availability, talent
development and diversity
(page 72)
• CEO’s statement (page 20)
• Caring for our people and ecosystems
(page 44)
• Diversity (page 46)
• Stakeholder engagement (page 112)
7. Human rights
• Business Partner Code of Conduct
• Human Rights Statement
• Modern Slavery Statement
• Regulatory compliance risk
(page 73)
• Our customers and partners (page 14)
• Caring for our people and ecosystems
(page 44)
8. Social and community
matters
• Human Rights Statement
• Regulatory compliance risk
(page 73)
• Caring for our people and ecosystems
(page 44)
• Stakeholder engagement (page 112)
9. Anti-corruption and
anti-bribery
• Code of Conduct
• Anti-Bribery and Corruption (ABC) Policy
• Regulatory compliance risk
(page 73)
• Governance (page 92)
Climate-Related Financial Disclosures
Reporting requirement
Section of annual report
10. A description of the Company’s governance arrangements for assessing and managing
climate-related risks and opportunities
• TCFD Report – Governance (page 80)
11. A description of how the Company identifies, assesses and manages climate-related risks
and opportunities
• TCFD Report – Risk management (page 87)
12. A description of how processes for identifying, assessing and managing climate-related risks are
integrated into the Company’s overall risk management process
• Risk management (page 66)
13. A description of:
i. the principal climate-related risks and opportunities arising in connection with the
Company’s operations; and
• TCFD Report – Risk management (page 87)
• Risk management (page 66)
ii. the time periods by which those risks and opportunities are assessed
• TCFD Report – Risk management (page 87)
• Risk management (page 66)
14. A description of the actual and potential impacts of the principal climate-related risks and
opportunities on the Company’s business model and strategy
• TCFD Report – Strategy (page 82)
• Risk management (page 66)
15. An analysis of the resilience of the Company’s business model and strategy, taking into
consideration different climate-related scenarios
• TCFD Report – Risk management (page 87)
16. A description of the targets used by the Company to manage climate-related risks and to realise
climate-related opportunities, and of performance against those targets
• TCFD Report – Metric and targets (page 89)
17. A description of the key performance indicators used to assess progress against targets in
managing climate-related risks and realising climate-related opportunities, and of the
calculations on which those key performance indicators are based
• TCFD Report – Metric and targets (page 89)
For more information see sustainability disclosures on page 258
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Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
91
Governance report
94
Board of Directors
96
Executive Leadership Team
98
Governance at a glance
99
Corporate Governance Report
117
Safety, Health and Environment
Committee Report
119
Audit Committee Report
125
Nomination Committee Report
128
Directors’ Remuneration Report
148
Other disclosures
151
Directors’ Responsibilities
Statement
92 Renewi plc Annual Report and Accounts 2024
Circular material:
Plastic flakes from
discarded
refrigerators
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Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
93
Advancing circularity together
Renewi’s Board of Directors supports the Company with an impressive range of skills and extensive experience across many disciplines.
Ben Verwaayen, MSc
Chairman
Allard Castelein, MD
Senior Independent Director
Katleen Vandeweyer, MSc
Independent
Non-Executive Director
Jolande Sap, MSc
Independent
Non-Executive Director
Appointed April 2020.
Skills and experience:
Ben has a breadth of experience,
having been the CEO of several
companies, including Alcatel-
Lucent SA and BT plc. He held the
position of vice chairman and
chief operating officer of Lucent
Technologies Inc, was president
of KPN and a non-executive
director of Bharti Airtel. He has
also been chairman of a number
of companies and industry bodies
including the CBI Energy and
Climate Change Board in the
UK. Ben currently serves as a
non-executive director on the
boards of Ofcom and Akamai
Technologies Inc. He is a Founding
Partner at venture capital company
Keen Venture Partners LLP. Ben
graduated from Utrecht University
with a master’s degree in Law and
International Politics.
Appointed January 2017.
Skills and experience:
Allard qualified as a medical
doctor before pursuing an
international career in the energy
sector, holding a number of senior
positions at Shell in various
countries, culminating in the post
of Vice President Environment of
Royal Dutch Shell in 2009. He was
President and CEO of the Port of
Rotterdam from 2014 to 2023.
Currently Allard is a Supervisory
Board member of SBM Offshore
N.V., Heijmans N.V. and a
Non-Executive director of
Associated British Ports PLC. He is
Chair of the Supervisory Board of
Rotterdam’s Philharmonic
Orchestra, the Erasmus Trust
Fund, and Supervisory Board
member of the Internationale
Architectuur Biënnale Rotterdam.
He is also Special Envoy for
Critical Raw Materials for
the Dutch Government.
Appointed December 2022.
Skills and experience:
Katleen brings a wealth of
experience in finance and
auditing, most recently until July
2022 in her role as Deputy Chief
Financial Officer at Belgian-listed
company, Proximus SA, an
international provider of digital
services, communication and ICT
solutions. Prior to Proximus, she
held various leadership positions
including that of CFO at Worldline
S.A. and Arthur Andersen. She
currently serves as Non-Executive
Director on the Boards of Fedrus
International BV, Ageas Group,
AG Insurance and Vantiva S.A; she
also sits on the Audit committees
of both Ageas Group, AG Insurance
and Vantiva (Audit Committee
Chair). Previously, she sat on the
Boards of Ion Beam Applications,
bpost bank, Connectimmo N.V.,
Scarlet N.V. and Proximus Pension
Fund. She holds a degree in
Applied Economics from the
University of Leuven.
Appointed April 2018.
Skills and experience:
Jolande is chair of the Social
Impact Team that advises
the Dutch government on the
social impact of pandemics
and disruptive crises. She is also
member of the Board of the Dutch
Emissions Authority, member of
the Supervisory Board of Royal
KPN N.V. and member of SAAT
Triodos Bank. In addition, she
is involved in a number of social
initiatives, including Chair of the
Smoke free table of the Dutch
National Prevention Agreement,
the Springtij Forum and the
Impact Economy Foundation.
Between 2008 and 2012, Jolande
represented the Dutch Green
Party, GroenLinks, in the lower
house of the Dutch parliament,
leading the party from 2010.
Before that she worked as an
economist in the fields of science,
policy and business. She was,
among other things, head of the
Incomes Policy department at
the Ministry of Social Affairs and
Employment, and director of
the LEEFtijd center of expertise,
a consultancy for sustainable
employment issues. Jolande
graduated from the Tilburg
University in economics.
The Board of Directors
94 Renewi plc Annual Report and Accounts 2024
Luc Sterckx, MSc, PhD
Independent
Non-Executive Director
Neil Hartley, MA, MBA
Independent
Non-Executive Director
Otto de Bont, MSc
Chief Executive Officer
Annemieke den Otter,
MA, RC
Chief Financial Officer
Appointed September 2017.
Skills and experience:
Luc started his career at Exxon
Chemicals, before becoming the
CEO of Indaver and subsequently
joining the executive committee
of PetroFina, where he served as
managing director of Fina Holding
Deutschland and as group senior
vice president for SHEQ matters
worldwide. He was then appointed
CEO of Oleon where he led a
successful management buyout.
Luc was subsequently appointed
as CEO of SPE-Luminus in 2005,
the second largest power and gas
company in Belgium, created as a
result of a multi-party merger. Luc
is an INSEAD certified international
director and a specialist in internal
governance. He currently holds
a number of non-executive and
advisory positions, specialising
in the fields of energy and
chemicals, renewables and
corporate governance.
Appointed January 2019.
Skills and experience:
Neil is a Partner at Velocity
Partners, a private equity firm that
invests in businesses that support
the energy industry with focus on
integration of renewable energy,
lowering emissions, increasing
energy efficiency, decarbonisation
of industrial processes and other
improvements to existing energy
infrastructure. He has an MBA from
Harvard Business School and is
also a graduate of Oxford University
in engineering, economics and
management. Neil has a total of 18
years in private equity, and prior to
that, spent six years in investment
banking with Simmons & Company
International, specialising in
corporate finance, M&A and
capital raising in the energy sector.
Neil has also been a management
consultant at McKinsey & Company
Inc. and spent seven years in
technical and line management
roles with Schlumberger as a field
service manager and field engineer.
Appointed April 2019.
Skills and experience:
Otto was promoted to the role of
Chief Executive Officer in April 2019.
Prior to this, he was the Managing
Director of Renewi’s Commercial
Waste Netherlands Division,
playing a central role in the
integration of Shanks Group plc
with Van Gansewinkel Groep B.V.
Before joining Renewi, Otto
worked for a number of blue-chip
companies including United
Technologies’ divisions Otis, Carrier
and Chubb and General Electric’s
Material and Security divisions.
He has worked a significant part
of his career abroad, including in
Belgium, Germany and the United
States. During his six years at
United Technologies, Otto spent
time in various managerial
positions culminating in his role
as president of Chubb Continental
Europe. Otto holds a MSc in
Engineering from the University of
Technology Twente. He is member
of the Strategic Advisory Board
of TNO’s unit for Energy and
Material Transition.
Appointed June 2022.
Skills and experience:
Annemieke joined the Board in
June 2022. Previously she held
the position of CFO of ERIKS, a
€1.7bn revenue global engineering
components and service provider
(privately owned and part of SHV
group). From 2016, she served for
five years as the CFO of Ordina, a
Dutch software company listed on
the Amsterdam Stock Exchange.
Earlier in her career she worked for
three years at VolkerWessels, one of
the large construction companies
in the Netherlands. Prior to this
she worked for ING and Macquarie
Bank while in London for five years.
Since 2020, she has been a
Supervisory Board member of
ForFarmers N.V., an international
organisation offering feed solutions
for livestock farming. Annemieke
holds a master’s degree in English
and Literary Science from the Vrije
Universiteit, Amsterdam and has a
post-masters degree in finance and
control from Erasmus University,
Rotterdam (Register Controller
in Dutch).
Committee membership:
Audit
Nomination
Remuneration
Safety, Health and Environment
Chair
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Governance report
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Other information
Renewi plc Annual Report and Accounts 2024
95
Executive Leadership Team
Mark Thys
Chief Operating Officer
Commercial Waste
Kirsten Yperman
Chief Human Resources Officer
(interim)
Bruno Bruins
Chief Strategy Officer
VACANT
Chief Operating Officer
Specialities*
Skills and experience:
Mark joined Renewi in May 2021
as Managing Director Commercial
Waste Belgium. Before joining
Renewi, Mark held the position
of Global Chief Transformation
Officer for Eurofins Scientific.
Prior to this, Mark built his career
at Goodyear Dunlop, completing
various international assignments
and holding different senior
positions, including Managing
Director International Sales and
Operations, Managing Director
France & Benelux and Goodyear’s
EMEA Business Transformation
Leader. Mark holds an MSc in
Commercial Engineering from
the University of Hasselt and
an Executive MBA in Business
Management from KU Leuven.
Skills and experience:
Kirsten assumed the Chief Human
Resources Officer (ad interim) role
in April 2024, having joined Renewi
as HR Director Belgium in 2022.
Prior to joining Renewi, Kirsten
held several senior HR functions
at Stanley Black & Decker where
her last function was Senior HR
Director Commercial Central East
Europe Region & Finance EMEA
ANZ and Talent Management
Director EMEA ANZ. Kirsten holds
a Bachelor in Marketing from
Karel de Grote Hogeschool as
well as several strategic Human
Resources qualifications from
Vlerick Business School.
Skills and experience:
Bruno joined Renewi in May 2024
as Chief Strategy Officer. Prior
to this he held various political
positions in the Netherlands,
most recently as member of the
Council of State, previously as
State Secretary for Education,
Culture and Science, and Minister
of Medical Care and Sports.
His career in industry spans
leadership roles in various
transport companies, including
as a member of the Board of
Directors of Connexxion Holding
NV and as acting general manager
of HTM NV. Bruno is a member of
the UNICEF and Chairman of the
Alrijne Zorggroep Supervisory
Boards, and Chairman of the
Keolis and Yris BV Advisory Boards.
Bruno studied Dutch Law and
Public Administration at the
University of Groningen.
*
The role of Chief Operating
Officer, Specialities is currently
vacant and a recruitment
process is underway to fill the
position. The CEO is
performing this function until
a suitable recruitment is made.
Executive Leadership Team
Our CEO and CFO are also members of our Executive Leadership Team. Their biographies can be seen
on page 95
Our Executive Leadership Team (ELT) forms the core management governance forum assisting the Chief Executive Officer in his
leadership of the Group. The ELT is supported by the members of the Extended Executive Leadership Team (EELT), shown opposite.
96 Renewi plc Annual Report and Accounts 2024
Theo Olijve
SHEQ Director
Frederik Paauwe
Director Transformation
Ans Verlooy
Director IT
Marieke van Wichen
Director Communications
Skills and experience:
Theo joined Renewi in June 2019
and following a divisional
restructure was appointed
Managing Director of the Mineralz
& Water division in March 2020.
Prior to joining Renewi he worked
in senior management positions
in the petrochemical industry and
liquid bulk terminals for over 25
years, including Divisional VP for
LyondellBasell, managing the
Odfjell Terminal Rotterdam where
he was responsible for restoring
the operation and compliance
after a safety shutdown in 2012.
In 2017 he became an independent
management consultant. Theo
holds a Master’s degree in
Chemical Engineering from
the University of Groningen.
Skills and experience:
Frederik joined Renewi in
July 2023, bringing 20 years
of experience in business
transformations, business process
redesign, and leading digital
programmes in the energy sector.
Graduating with a degree in Earth
Sciences from the Vrije Universiteit
Amsterdam, Frederik began his
career as an Exploration Geologist
at Shell in 1991. This was followed
by an MBA from the Amos Tuck
School at Dartmouth College (USA)
and four years with strategy
consultants McKinsey & Company.
Frederik re-joined Shell in 2001
where he held senior management
positions in Shell’s European
Commercial B2B business,
Downstream, and in Upstream,
leading regional and global teams
driving operational excellence and
digital transformations for the
business. In his last role as Vice
President Business Excellence,
he led the programme to define
Upstream’s target digital model,
enabled by SAP.
Skills and experience:
Ans was promoted to Group IT
Director in November 2023, having
joined Renewi as IT Director for
the Commercial Waste Belgium
division in 2022. Prior to joining
Renewi, Ans built significant
experience in IT leadership having
held several senior IT positions at
Argenta, Colruyt Group, Johnson &
Johnson, and ING Belgium. Since
joining Renewi, she has played a
pivotal role in the development
and application of the Flexible
Delivery Model, providing a
critical framework aligning
strategic business objectives
with IT deliverables. Ans
continually updates, develops
and supplements her knowledge
and qualifications and holds
numerous practical certifications
related to her role, including in
Data Protection, Prince 2 project
management, and as a Scrum
Master. Currently Ans is training
as a certified information security
manager (CISM).
Skills and experience:
Marieke joined Renewi in July
2022, bringing over 15 years’
experience in international
marketing and communications.
Prior to joining Renewi, Marieke
fulfilled a wide range of global
communications roles, both in
the B2B and B2C areas, and more
recently had global responsibility
for the internal and external
communications of the consumer
division at Philips. Earlier in
her career, Marieke worked in
advertising and developed
marketing campaigns for the
Dutch national market. Marieke
holds a Bachelor’s degree
in Communications.
As part of internal harmonisation and efficiency measures, the Executive Committee as operating throughout FY24 was reformed as
Executive Leadership Team (ELT) effective as at 1 May 2024. The ELT has a core membership of six including the CEO, CFO, two Chief
Operating Officers, Chief Human Resources Officer and Chief Strategy Officer. The ELT is supported by heads of functional areas as the
Extended Executive Leadership Team (EELT). The ELT does not have specific powers of its own delegated by the Board, the CEO is assisted
in the performance of his duties by the ELT and EELT.
Extended Executive Leadership Team
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
97
Governance at a glance
At a glance
A snapshot guide to corporate
governance at Renewi and to
highlights over FY24.
Board composition
Board independence
75%
(FY23: 75%)
Female representation
37.5%
(FY23: 37.5%)
Number of Board meetings
9
(FY23: 8)
Non-Executive Director
tenure:
Culture
The Board considers our people
to be our most valuable asset and
places a commitment to the highest
standards of safety at the heart
of our culture. Read more about
how the Board has overseen the
development of Renewi’s culture
over the year on pages 110 to 111.
Q&A with Jolande Sap
Jolande Sap, our designated director
for workforce engagement, provides her
insights and reflections on her activities
within the Group during the year, and
her ambitions for the coming year.
Compliance with the UK
Corporate Governance
Code 2018
Renewi complied throughout
the accounting period with the
provisions of the UK Corporate
Governance Code. Read more about
how the Company has applied the
main principles of good governance
in the UK Corporate Governance
Code on pages 104 to 109.
Stakeholder Engagement
Considering the interests of our stakeholders is fundamental to the way we
operate. Read more about our stakeholders, key areas of focus and how
we engage with our key stakeholders on pages 112 to 115.
Principal decisions in FY24
A selection of the Board’s principal decisions during the year and how stakeholder
interests were considered during the process are examined on page 116.
Audit Committee meetings
Committee meetings
1 – 3
years
2
4 – 6
years
7 – 9
years
3
1
5
4
4
3
Remuneration Committee meetings
Safety, Health and Environment
Committee meetings
Nomination Committee meetings
98 Renewi plc Annual Report and Accounts 2024
Corporate Governance Report
Dear shareholder,
I am pleased to present the Corporate
Governance Report for the financial year
ended 31 March 2024. This section includes
the Corporate Governance Statement, the
reports of the main Board Committees,
including the Directors’ Remuneration
Report and several other disclosures that
we are required to make by law. Taken
together and including cross-references
to relevant parts of the Strategic Report,
these contents demonstrate how we
have applied the principles and complied
with the provisions of the UK Corporate
Governance Code (the Code).
The Group’s operating environment
has been challenging, and the Board
has worked to a packed agenda. Against a
backdrop of constantly changing external
macro-environmental factors, ensuring
high standards of corporate governance
has become more important than ever.
Your Board has remained focused on
promoting the success of the Company
for the benefit of its members while having
due regard for the interests of all its key
stakeholders, which are discussed later
in this report.
During the year, the Board has overseen
strategic changes which we believe will
position the Group for long-term success.
This has included a strategic review of the
UK Municipal business, cost savings and
other measures designed to ensure our
businesses are well-positioned to deliver
improved performance and future growth.
The Board and its Committees have
championed changes in the Group’s
culture to ensure that practices and
behaviour throughout the business are
aligned with the Company’s purpose,
values and strategy. The Board has fully
supported management’s vision to create
a culture of care within our business,
founded on a robust safety culture and
the aim of preventing any accidents in
the workplace.
We remain focused on delivering
sustainable value for our shareholders, at
pace. Together with Executive management,
I have been in regular contact with our
larger shareholders over the year and,
through our engagement, we have
developed a clear understanding of our
investors’ views and ambitions for the
Group. We are pleased with the level of
support for the Group’s purpose and
objectives and will continue to maintain
a high level of engagement with our
investors as the Group aims to reach
its strategic targets.
In 2023, the Board received non-binding
indicative offers to acquire the entire share
capital of the Company from Macquarie
Asset Management, which we carefully
considered. Internal and third-party
valuations based on the company’s
existing standalone strategy concluded
that the potential bid significantly
undervalued Renewi, and so we rejected
the offers. We engaged with shareholders
around the time of the offer period, and in
the period since then. As a Board, we are
focused on maximising value for all of our
shareholders and are objective about the
route through which this is achieved. An
overview of the process the Board followed
to arrive at its decision can be found in the
‘Principal Decisions during FY24’ section of
this report.
The Board adopted a formal Board
Diversity Policy during the year. It was
decided not to consider changes to Board
membership in FY24; however, succession
planning remains firmly on the agenda for
the coming year, and we look forward to
reporting our progress against targets
in FY25.
The Board evaluated its performance
and that of its Committees over FY24 and
I am pleased to report the results showed
it continued to work effectively throughout
the year. The evaluation also identified
several areas for development and the
Board and its Committees will focus on
these over the coming year, which are
discussed more fully in the Nomination
Committee Report.
At the Company’s 2023 Annual General
Meeting (AGM), our second disapplication
of pre-emption rights resolution failed
to pass. We engaged with our dissenting
shareholders to understand their concerns,
and the outcomes of those discussions will
be reflected in the authorities sought at the
2024 AGM.
For FY24 the Directors have proposed that,
subject to shareholder approval at the
AGM, a final dividend of 5 pence per share
be paid on 31 July 2024 to shareholders on
the register of members as at 28 June 2024.
The Company’s AGM will be held in London
on 11 July 2024. On behalf of the Board,
I look forward to welcoming you to the
AGM, and thank you for your continued
support of the Company.
Ben Verwaayen
Chairman
“Ensuring high standards of corporate
governance has become more important
than ever”
Ben Verwaayen
Chairman
Corporate Governance Report
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
99
The Board fully supports the
principles of good corporate
governance. The Corporate
Governance Report, together with
the Directors’ Remuneration
Report (see pages 128 to 147),
explains how the Group has
applied and complied fully
with the provisions of the UK
Corporate Governance Code 2018
for the year to 31 March 2024.
The Board
The Board’s role is to promote the
long-term sustainable success of
the Company, generating value for
shareholders, and its contribution to
wider society. It has established the
Company’s purpose, values and strategy,
and ensures these and the Company’s
culture are aligned.
The Board comprises the Chairman, five
independent Non-Executive Directors,
the Chief Executive Officer and the Chief
Financial Officer. The Chairman has
primary responsibility for running the
Board. The Chief Executive Officer is
responsible for the operations of the
Group and for the development of
strategic plans and initiatives for
consideration by the Board. The formal
division of responsibilities between
the Chairman and the Chief Executive
Officer has been agreed by the Board
and documented, a copy of which is
available on the Group’s website.
The Non-Executive Directors bring a
wide range of experience to the Group
and are considered by the Board to be
independent of management and free
from any business or other relationship
that could materially interfere with the
exercise of their independent judgement.
The Non-Executive Directors make a
significant contribution to the Board,
ensuring that no individual or group
dominates the decision-making process.
Non-Executive Directors are not eligible to
participate in any of the Company’s share
option or pension schemes. The Chairman
also meets and communicates regularly
with the Non-Executive Directors without
the presence of the Executive Directors.
The Senior Independent Director is
available to shareholders in instances
where the Chairman, Chief Executive
Officer or Chief Financial Officer have
failed to resolve the concern, or where
such contact is inappropriate.
Corporate Governance Report continued
Governance framework
Board of Directors
Executive Leadership Team1
Audit Committee
See page 103
Remuneration
Committee
See page 103
Nomination
Committee
See page 103
SHE (Safety,
Health and
Environment)
Committee
See page 103
1. As announced 25 April 2024 by RNS the Executive Committee was reformed for FY25 and renamed the as the Executive Leadership team.
2. As announced 25 April 2024 by RNS Mineralz & Water will become part of the Specialities Division. Comprising Coolrec, Maltha, UK Municipal and Mineralz & Water.
Specialities2
Commercial Waste
Functions
100 Renewi plc Annual Report and Accounts 2024
Board meetings and attendance in FY24
Board
Audit Committee
Remuneration
Committee
Nomination
Committee
Safety, Health and
Environment Committee
Number of meetings held
9
5
4
3
4
Ben Verwaayen
9 (9)
–
–
3 (3)
–
Allard Castelein
9 (9)
–
4 (4)
3 (3)
4 (4)
Katleen Vandeweyer
9 (9)
5 (5)
–
3 (3)
–
Neil Hartley
9 (9)
5 (5)
4 (4)
3 (3)
4 (4)
Luc Sterckx
9 (9)
5 (5)
4 (4)
3 (3)
4 (4)
Jolande Sap1
8 (9)
5 (5)
–
3 (3)
–
Otto de Bont
9 (9)
–
–
–
–
Annemieke den Otter
9 (9)
–
–
–
–
1. Jolande Sap was unable to attend a meeting of the Board on 16 October 2023 called at short notice and held by telephone conference.
2. Bracketed figures indicate maximum potential attendance of each Director.
Board governance
There is a formal schedule of matters
reserved specifically for the Board’s
decision. These include approval of
financial statements, strategic policy,
acquisitions and disposals, capital projects
over defined limits, annual budgets and
new borrowing facilities. The Board
meets regularly, having met 9 times
during the year.
The Board is provided with appropriate
information in a timely manner to enable
it to discharge its duties effectively. All
Directors have access to the Company
Secretary, whose role includes ensuring
that Board procedures and regulations
are followed. In addition, Directors are
entitled, if necessary, to seek independent
professional advice in connection with
their duties at the Company’s expense.
In recognition of the importance
of their stewardship responsibilities,
the first standing item of business at
every scheduled Board meeting is the
consideration of health and safety and
environmental matters. Other regular
reports include those from the Chief
Executive Officer and Chief Financial
Officer, covering business performance,
markets and competition, investor and
analyst updates, as well as progress
against strategic objectives and capital
expenditure projects. The Board also
remains responsible for setting strategic
aims and objectives in relation to
sustainability and climate change.
All Directors are required to notify the
Company on an ongoing basis of any
other commitments. Through the Company
Secretary, there are procedures for ensuring
that the Board’s powers for authorising
Directors’ conflicts of interest are
operated effectively.
Four formal Committees (Audit, Remuneration,
Nomination, and Safety, Health and
Environment) support the work of the Board.
In addition, during FY24 the Executive
Committee, while not a committee with
specific powers of its own delegated by the
Board, assisted the Chief Executive Officer
in the performance of his duties. This
Committee met monthly and comprised
the Chief Executive Officer and Chief
Financial Officer, the Divisional Managing
Directors and Corporate Function Leaders.
For FY25 the Executive Committee has been
replaced by the Executive Leadership
Team, as detailed on page 96.
In reviewing Renewi’s overall corporate
governance arrangements, the Board
continues to give equal consideration
to balancing the interests of customers,
shareholders, employees and the wider
communities in which Renewi operates.
Board induction and development
On appointment, Directors are given an
introduction to the Group’s operations,
including visits to principal sites and
meetings with operational management.
Specific training requirements of Directors
are met either directly or by the Company
through legal and regulatory updates.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
101
Diversity
All Board appointments are based on merit
and against objective criteria, but within
this context, the Board believes that
diversity and inclusion, in its broadest sense,
including gender and ethnicity, should
be promoted, as they are an important
factor in Board effectiveness. Role profiles
for Board vacancies incorporate any
necessary skills or strengths that may
be required, to either fill any gaps or
complement existing Board member
competencies. In recognition of the
Board’s commitment to ensuring its
diversity, it adopted a formal Board
Diversity Policy in 2023, as recommended
by the Nomination Committee.
Renewi is committed to offering a rewarding,
diverse and inclusive working environment.
On gender diversity, Renewi has set a
target to increase the percentage of women
across the business to 25% by 2025. You
can read more about our approach to
Board diversity in the Nomination
Committee Report (see page 125).
The Nomination Committee and the Board
continue to closely monitor all aspects of
diversity in recruitment and promotions
across the workforce. To assist in the
process, a Diversity and Inclusion Board
Corporate Governance Report continued
Table for reporting on gender identity or sex
As at 31 March 2024
Number of Board
members
Percentage of the
Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in Executive
management1
Percentage of
Executive
management
Men
5
62.5%
3
7
70%
Women
3
37.5%
1
3
30%
Table for reporting on ethnic background2
As at 31 March 2024
Number of Board
members
Percentage of the
Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in Executive
Management1
Percentage of
Executive
management
White British or other White
(including minority-white groups)
8
100%
4
10
100%
Mixed/Multiple Ethnic Groups
–
–
–
–
–
Asian/Asian British
–
–
–
–
–
Black/African/Caribbean/Black British
–
–
–
–
–
Other ethnic group, including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
1. Executive management is defined as the Executive Committee as at 31 March 2024.
2. Data obtained from individuals directly.
has been appointed to help advise the
Board on how to embed diversity and
inclusivity within the organisation.
Statistical employment data for the Group
can be found in the caring for our
employees and ecosystems section on
page 44, and in the sustainability
disclosures section on page 258. This
information includes further summary
details in addition to that shown below,
including how to access our gender pay
gap reporting.
102 Renewi plc Annual Report and Accounts 2024
Audit Committee
The main roles of the Audit Committee
include monitoring the integrity of the
financial statements, reviewing the
Company’s internal financial control and
risk management systems, and monitoring
and reviewing the effectiveness of the
internal and external audit functions.
The Audit Committee met five times during
the year and is formally constituted with
written terms of reference, which are
available on the Group’s website. The
Committee is made up solely of Non-
Executive Directors: Katleen Vandeweyer,
who has chaired the Committee since
1 December 2022, Neil Hartley, Luc Sterckx
and Jolande Sap.
The Board considers that the Audit
Committee as a whole has competence
relevant to the waste-to-product sector.
The Executive Directors and representatives
from the external auditors are regularly
invited to attend meetings. The Committee
also has access to the external auditors
without the presence of the
Executive Directors.
The Audit Committee Report (see
pages 119-124) sets out the role
of the Committee in detail and its main
activities during the year. This includes
its responsibility for reviewing the
methodology and approach for reporting
in support of the Board’s strategy regarding
sustainability and climate change.
Remuneration Committee
The Committee formulates the Company’s
Remuneration Policy and the individual
remuneration packages for Executive
Directors. The Committee also determines
the remuneration of the Group’s senior
management and that of the Chairman.
The Committee recommends the
remuneration of the Non-Executive
Directors for determination by the Board.
In exercising its responsibilities, the
Committee has access to professional
advice, both internally and externally,
and may consult the Chief Executive
Officer about its proposals.
The Remuneration Committee met
four times during the year and is formally
constituted with written terms of reference,
which are available on the Group’s website.
The Committee is made up solely of
Non-Executive Directors: Neil Hartley, who
chairs the Committee, Allard Castelein and
Luc Sterckx.
The Directors’ Remuneration Report (see
pages 128-147) contains particulars of
Directors’ remuneration and their interests
in the Company’s shares.
Nomination Committee
The Committee is responsible for making
recommendations to the Board on the
appointment of Directors and succession
planning. It also reviews organisation
and resourcing plans for the purpose
of providing assurance that appropriate
processes are in place to ensure
a sufficient supply of competent
executive and senior management.
The Nomination Committee met three
times during the year and is formally
constituted with written terms of reference,
which are available on the Group’s website.
The Committee is made up solely of
Non-Executive Directors: Ben Verwaayen,
who chairs the Committee, Allard Castelein,
Jolande Sap, Neil Hartley, Luc Sterckx
and Katleen Vandeweyer.
The Nomination Committee Report on
pages 125-127 sets out the role of the
Committee in further detail and its main
activities during the year.
Safety, Health and
Environment Committee
The Committee is responsible for
making recommendations to the Board
over safety, health and environmental
matters. It reviews safety, health and
environmental performance, providing
guidance on the implementation of
appropriate measures to protect the
environment and keep people safe.
The Safety, Health and Environment
Committee met four times during the year
and is formally constituted with written
terms of reference, which are available
on the Group’s website. The Committee is
made up solely of Non-Executive Directors:
Luc Sterckx, who chairs the Committee,
Allard Castelein and Neil Hartley.
The Safety, Health and Environment
Committee Report (see pages 117-118)
sets out the role of the Committee
in further detail and its main activities
during the year.
Other information
Other information necessary to fulfil the
requirements of the Corporate Governance
Statement, relating to the Company’s share
capital structure and the appointment and
powers of the Directors, can be found in the
Other disclosures section (see pages 148-150).
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
103
How Renewi has complied with
the UK Corporate Governance Code
Renewi’s statement of compliance,
together with the wider Corporate
Governance Report and other sections
of this Annual Report, describes how the
Company has applied the main principles
of good governance in the UK Corporate
Governance Code, published by the UK
Financial Reporting Council (FRC) in July
2018, a copy of which is available on its
website, frc.org.uk.
Renewi complied throughout the
accounting period with the provisions
of the UK Corporate Governance Code.
Board leadership and
company purpose
A The Board’s role
The Board comprises Directors with a
diverse range of skills, nationalities and
professional backgrounds, as set out in
their biographies (see pages 94 to 95 and
page 127 of the Nomination Committee
Report). It is this diversity of experience
and ability to exercise independent and
objective judgement that helps the Board
to operate effectively and establish a
governance framework to assist the
Group in the delivery of its strategy.
The Board discharges its responsibilities,
as set out on pages 99 to 103 of the
Corporate Governance Report, through
a programme of Board and Committee
meetings, which include reviews of
financial performance, critical business
issues and short and long-term planning
and strategies.
B Renewi’s purpose, values
and culture
Renewi’s purpose is to protect the
world by giving new life to used materials.
The Group focuses on making valuable
products from waste, rather than on its
disposal through incineration or landfill.
The Company meets the growing need
to deal with waste sustainably and cost-
effectively and is positioned higher up
the value chain in the segments expected
to show the highest structural growth.
Renewi’s values are the foundation for
everything it does and have helped the
Group build a culture of togetherness and
One Renewi. These values illustrate that
how Renewi acts is just as important as
what Renewi does and the Group uses
them as a guide for behaviours and
decision-making.
The Board has designated Non-Executive
Director Jolande Sap with responsibility
for monitoring workforce culture and
employee engagement. Together with
the Group HR Director, Jolande also has
responsibility for making regular reports
to the Board. For more information, see
the employee engagement section
on page 111.
The Audit Committee received
regular updates on a range of risk
and compliance matters during FY24,
including reports and presentations
on whistleblowing and integrity issues.
It also received the results of internal
audits, which provided insight into the
risk and control environment within both
the Group and individual areas of the
business. The Committee reviewed
the steps taken by senior management
to address the weaknesses identified.
Where concerns remained, the Committee
ensured further action was taken,
including requesting further information,
monitoring and, if required, follow-up
audits. For more information, see pages
119 to 124.
As part of its considerations, the
Remuneration Committee also reviewed
the Company’s approach to rewarding
the workforce.
C Resources and controls
The Board ensures that necessary
resources are in place to help the
Company meet its objectives and
measure performance. The system of
internal control is based on a continuous
process of identifying, evaluating
and managing risks, including the risk
management framework outlined on
page 66. The Group Risk Management
Department, together with risk owners
from the divisions and functions, is
an important component of our risk
management and controls architecture.
It provides direct assurance to the Audit
Committee on several matters, including
the preparation and review of risk
registers and the promotion of risk
awareness. The Group Risk Management
Department works with the operating
divisions of our organisation to share
outcomes and co-ordinate reporting
on compliance matters. Complementing
this, our internal key controls framework
ensures monthly execution and review
of our key financial controls. Our internal
audit function aims to improve our overall
control framework and evaluate and
improve the design and effectiveness of
control processes, reporting the results
Compliance with the UK Corporate Governance Code
Compliance with the UK
Corporate Governance Code
104 Renewi plc Annual Report and Accounts 2024
of its activities to the Audit Committee. The
Board has a formal system in place for
Directors to declare any conflicts,
or potential conflicts, of interest.
D Shareholder engagement
The Board aims to engage with
shareholders and understand their issues
and concerns. It endeavours to respond
to all queries and questions, whether
from large institutional or smaller private
shareholders, although responses may
be facilitated through management.
Renewi aims to present a balanced and
understandable assessment of its strategy,
financial position and prospects when
reporting to shareholders and other
interested parties. The investors pages
of renewi.com contain a wide range of
information of interest to institutional and
private investors. Board members are kept
informed of any issues and receive regular
reports and presentations from executive
management, and our advisers assist
them in developing an understanding
of our major shareholders’ views.
Throughout the year, the Board has
acted through the Chairman and senior
management to maintain a dialogue
with the Company’s major shareholders,
covering matters including the proposed
offer for the issued share capital of the
Company as announced by Macquarie
Asset Management on 28 September 2023,
and the Board’s decision to conduct a
strategic evaluation of Renewi’s UK
Municipal business.
Board members attend the AGM to answer
questions raised by shareholders, including
private investors. Details of proxy voting by
shareholders, including votes withheld,
are given at the AGM and posted on our
website after the meeting.
The majority of resolutions proposed at the
2023 AGM were approved by shareholders.
Resolution 17, the second of the two
Disapplication of Statutory Pre-Emption
Rights authorities sought, did not receive
sufficient support to be passed at the AGM
and received over 20% of votes against.
Acting through management, the Board
engaged the Company’s shareholders to
understand and discuss their views on this
resolution and released a stock exchange
update announcement on 5 December 2023.
Views expressed by those shareholders
that voted against resolution 17 included
reservations concerning the increased level
of capital that could be raised under the
new authority requested, and, in certain
cases, the level of the authority sought
conflicted with shareholders’ internal
voting policies. The authorities sought
for the Disapplication of Statutory
Pre-Emption Rights at the 2024 AGM
will reflect the outcome of discussions
with shareholders.
The 2024 AGM will be held at the offices
of Ashurst LLP, London Fruit & Wool
Exchange, 1 Duval Square, London, E1 6PW
on Thursday 11 July 2024 at 11:00. A Notice
of AGM, setting out detailed arrangements,
will be sent in advance to all registered
holders of ordinary shares and, where
requested, to the beneficial holders of
shares, and will also be available on
our website at renewi.com.
Wider stakeholder engagement
The Directors recognise the
fundamental importance of promoting
the long-term success of the Company.
Clear communication and proactive
engagement to understand the issues
and factors that are most important to
stakeholders are fundamental to this.
A summary of our approach to stakeholder
engagement and its consideration in
decision-making is set out on pages 112 to
115. Our Section 172(1) statement is set out
on page 90.
Renewi has an active investor relations
programme to engage with institutional
investors, analysts, press and other
interested parties. The Company uses
multiple channels to do this, including
its financial results presentations, reports,
regulatory news announcements, press
releases, AGM, face-to-face meetings
including roadshows, videos, the corporate
website and other social media channels.
Workforce engagement
Renewi relies on its workforce and its
commitment to uphold the Group’s values,
deliver strategic priorities and make the
changes necessary to sustain performance.
Engagement with the workforce is key to
ensuring that the Board understands the
employee voice.
Non-Executive Director Jolande Sap is the
Board’s designated director for employee
engagement. The Board also engages with
the workforce through the Group’s Works
Councils in the Netherlands and Belgium.
For more information on employee
engagement, see page 111.
E Our workforce policies
Renewi operates a Code of Conduct based
on our core values, expected behaviours and
key policy principles. This includes creating
a safe and healthy working environment,
diversity, equality, non-discrimination
and accountability. Renewi is an equal-
opportunities employer and publishes
an annual Modern Slavery Statement.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
105
Division of
responsibilities
F The role of the Chairman
Ben Verwaayen, our Non-Executive
Chairman, is responsible for leadership
of the Board and promoting a culture of
openness and constructive debate. He
was and remains independent since his
appointment as Chairman on 1 April 2020.
G Composition of the Board
The Board comprises six Non-Executive
Directors including the Chairman, and
two Executive Directors. The Board’s
responsibilities are set out on pages 100
to 103 of the Corporate Governance
Report and an overview of the Board
roles can be found on page 107 of
the Corporate Governance Report.
The roles of the Board, Board
Committees, Chairman and CEO are
documented, as are those matters
reserved to the Board. They can be
found on our website at renewi.com/en/
investors/corporate-governance. The
CEO is responsible to the Board for
the management, development and
performance of our business for those
matters for which he has been delegated
authority by the Board. Although the CEO
retains full responsibility for the authority
delegated to him by the Board, he chaired
the Executive Committee, which is the
vehicle through which he exercised that
authority in respect of our business in
FY24, as replaced with the Executive
Leadership Team for FY25.
During the year, the Board considered
the independence of each Non-Executive
Director for the purposes of the UK
Corporate Governance Code and finds
that all the Non-Executive Directors
are independent.
The membership of the Board as
at 31 March 2024, and biographical
information about individual Directors,
can be found on pages 94 to 95.
H Role of the Non-Executive Directors
The role of the Non-Executive Directors
is to provide constructive challenge and
strategic guidance, offer specialist advice
and hold management to account. The
Non-Executive Directors bring a wide
range of experience to the Group
and are considered by the Board to be
independent of management and free
from any business or other relationship
that could materially interfere with the
exercise of their independent judgement.
The Non-Executive Directors make a
significant contribution to the functioning
of the Board, thereby ensuring that
no individual or group dominates the
decision-making process. The Chairman
also meets and communicates regularly
with the Non-Executive Directors without
the presence of the Executive Directors.
Time commitment
Generally, Non-Executive Directors
commit 24 days a year to the Group’s
business. In practice, Board members’
time commitments exceed this minimum
expectation when all the work that they
undertake for the Group is considered,
particularly in the case of the Chairman
of the Board and the Chairs of the Board
Committees. As well as their work in
relation to formal Board and Board
Committee meetings, the Non-Executive
Directors also commit time throughout
the year to meetings and conference
calls with various levels of executive
management, visits to sites and, for new
Non-Executive Directors, induction sessions.
If a Director is unavoidably absent from
a Board or Board Committee meeting,
they receive and review the papers for
the meeting and typically provide verbal
or written input ahead of the meeting,
usually through the Chairman of the
Board or the Chair of the relevant Board
Committee, so that their views are made
known and considered at the meeting.
Given the nature of the business to be
conducted, some Board meetings are
convened at short notice, which can
make it difficult for some Directors to
attend due to prior commitments.
Compliance with the UK Corporate Governance Code continued
106 Renewi plc Annual Report and Accounts 2024
Subject to specific Board approval,
Executive Directors and other Executive
Committee/Leadership Team members
may accept external appointments
as non-executive directors of other
companies, and retain any related
fees paid to them, provided that such
appointments are not considered by
the Board to prevent or reduce the ability
of the executive to perform his or her role
within the Group to the required standard.
Senior Independent Director
Allard Castelein, who joined the Board as
a Non-Executive Director in January 2017,
was appointed Senior Independent
Director with effect from 1 September 2019.
The role of the Senior Independent Director
is to serve as a sounding board for the
Chairman and as an intermediary for the
other Directors when necessary. Led by
the senior independent director, the
non-executive directors meet without the
chair present at least annually to appraise
the Chair’s performance, and on other
occasions as necessary. The Senior
Independent Director is available to
shareholders should they have concerns
that contact through the normal channels
of Chairman, Chief Executive Officer or
Chief Financial Officer has failed to resolve,
or where such contact is inappropriate.
I The Company Secretary
The Company Secretary is responsible
to the Chairman for ensuring that all
Board and Board Committee meetings are
properly conducted, that Directors receive
appropriate information before meetings
to enable them to make an effective
contribution, and that governance
requirements are considered and
implemented. Both the appointment
and removal of the Company Secretary
is a matter for the whole Board.
Chairman
• Ben Verwaayen
Responsibility: Responsible for
leading the Board, ensuring its
effectiveness in all aspects of its
role and developing the Group’s
culture with the Chief Executive
Officer. Promotes high standards
of integrity and governance across
the Group and ensures effective
communication and understanding
between the Board, management,
shareholders and wider stakeholders.
Senior Independent Non-Executive
Director (SID)
• Allard Castelein
Responsibility: Provides a sounding
board for the Chairman and discusses
concerns that cannot be resolved
through the normal channels or
where such contact would be
inappropriate with shareholders and
other stakeholders. Can be contacted
via the Company Secretary at the UK
corporate head office.
Non-Executive Directors
• Neil Hartley
• Jolande Sap
• Katleen Vandeweyer
• Luc Sterckx
Responsibility: Responsible for
bringing an external perspective,
sound judgement and objectivity
to Board discussion and decision-
making, and to support and
constructively challenge the Executive
Directors using their broad range of
experience and expertise.
Chief Executive Officer (CEO)
• Otto de Bont
Responsibility: Responsible for
the management of all aspects
of Renewi’s businesses, developing
the strategy in conjunction with the
Chairman and the Board and leading
its implementation. In FY24 the CEO
was supported by the Executive
Committee, comprising the CEO, CFO,
Divisional Managing Directors and
Corporate Function Leaders. For FY25,
the Executive Committee has been
replaced by the Executive Leadership
Team detailed on page 96.
Chief Financial Officer (CFO)
• Annemieke den Otter
Responsibility: Responsible
for the management of Renewi’s
finance, treasury, strategy, legal,
IT, transformation, corporate
development and investor relations.
Company Secretary
• Dominic Murray
Responsibility: Responsible to the
Chairman for ensuring that all Board
and its Committee meetings are
conducted properly, that Directors
receive appropriate information
prior to meetings to enable them to
make an effective contribution, and
that governance requirements are
considered and implemented. All
Directors have access to the advice
of the Company Secretary. Both
the appointment and removal of
the Company Secretary is a matter
for the whole Board.
The roles of the Board, Board Committees,
Chairman and CEO are documented in
more detail on our website, as are those
matters reserved to the Board. They can
be found at renewi.com/en/investors/
corporate-governance.
Director roles and responsibilities
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
107
Composition,
succession & evaluation
J Appointments to the Board and
succession planning
The Nomination Committee regularly
reviews the composition of the Board and
the status of succession for both senior
executive management and Board-level
positions. Directors have regular contact
with and access to succession candidates
for senior executive management positions.
The Nomination Committee’s role is to
recommend to the Board any new Board
appointments and to consider, more
broadly, succession plans for both senior
executive management and Board-level
positions. As part of its consideration, the
Nomination Committee evaluates the
balance of skills, knowledge, experience
and diversity of the Board. Any decisions
relating to the appointment of Directors
are made by the entire Board based on
the merits of the candidates and the
relevance of their background and
experience, measured against objective
criteria, with care taken to ensure that
appointees have enough time to devote
to our business.
For more information, please see the
Nomination Committee Report on
pages 125 to 127.
Re-election of Directors
In accordance with Article 93 of the
Articles, all Directors retire at each AGM
and may offer themselves for re-election
by shareholders. Accordingly, all the
Directors will retire at the 2024 AGM.
The Notice of AGM will contain details of all
Directors seeking election and re-election.
For more information, see the Other
disclosures on page 148.
K Skills, experience and knowledge
of the Board
The Nomination Committee is responsible
for reviewing the composition of the Board
to ensure that it has the appropriate
expertise while also recognising the
importance of diversity.
L Board evaluation
In FY24, the Board evaluation was carried
out through an externally facilitated,
structured online survey. The findings are
set out in the Nomination Committee
Report on page 125.
Audit, risk and
internal control
M Internal and external audit
The Audit Committee reviews
the Company’s relationship with its
external auditors, BDO LLP, including
their independence. BDO LLP was first
appointed to conduct the audit of the
Company’s and Group’s consolidated
financial statements for the financial
year ended 31 March 2021 and will be
put forward for re-appointment at the
2024 AGM.
The Committee maintains a policy for the
pre-approval of all permitted non-audit
services undertaken by the external
auditor. The main purpose is to ensure
that the independence of the auditor
is maintained. The Audit Committee
also reviews the independence and
effectiveness of the internal audit function.
For more information, see the Audit
Committee Report on pages 119 to 124.
N Fair, balanced and
understandable assessment
The Board as a whole is responsible for
the Company’s financial and business
reporting including reviewing the
Company’s financial results
announcements.
The Board considers this Annual Report,
taken as a whole, to be fair, balanced
and understandable, and provides the
information necessary for shareholders
to assess Renewi’s position, performance,
business model and strategy.
O Risk management and
internal controls
The Board has overall responsibility
for our system of internal controls and
risk management policies and has an
ongoing responsibility for reviewing their
effectiveness. During FY24, the Directors
continued to review the effectiveness of
our system of controls, risk management
(including a robust assessment of the
emerging and principal risks, including
those that would affect the business
model, future performance, solvency or
liquidity) and high-level internal control
processes. These reviews included
an assessment of internal, financial,
operational and compliance controls,
and risk management, including their
effectiveness. The reviews were supported
by management assurance of the
maintenance of controls reports from
internal audit, as well as the external
auditor on matters identified during its
statutory audit work.
The system of controls is designed to
manage, rather than eliminate, the risk
of failure to achieve business objectives
and can only provide reasonable
(not necessarily absolute) assurance
of effective operation and compliance
with laws and regulations.
The Directors believe that the Group
maintains an effective, embedded system
of internal controls and complies with
the FRC’s Guidance on Risk Management,
Internal Control and Related Financial
and Business Reporting.
For more information about how Renewi
manages business risks, procedures for
identifying emerging risks, descriptions
of principal risks and uncertainties, and
the Viability Statement, see the Risk
management section on pages 66 to 89.
Compliance with the UK Corporate Governance Code continued
108 Renewi plc Annual Report and Accounts 2024
Remuneration
P Policies and practices
The Remuneration Committee is
responsible for determining, approving and
reviewing the Company’s remuneration
principles and frameworks, to ensure they
support the strategy of the Company and
are designed to promote long-term success.
For more information on the Remuneration
Committee’s work during FY24, see the
Directors’ Remuneration Report on
pages 128 to 147.
Q Procedure for developing
remuneration policy
Following consultation with institutional
shareholders and advisory bodies, the
Directors’ Remuneration Policy was
approved at the 2023 AGM and will
remain in place until a new policy is put to
shareholders for approval at the 2026 AGM.
The Remuneration policy is designed
to align with corporate governance best
practice, support the Company’s ability to
recruit and retain executive talent to deliver
the aims of its strategy and promote the
delivery of the long-term strategy.
The Directors’ Remuneration Policy can
be found in the Directors’ Remuneration
Report on pages 128 to 147.
R Exercising independent judgement
The Remuneration Committee exercises
independent judgement when determining
remuneration outcomes. It considers
factors such as wider business and
individual performance during the year,
including health and safety performance
and environmental, social and
governance objectives.
For more information on FY24 performance,
decisions and reward outcomes, see the
Directors’ Remuneration Report on pages
128 to 147.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
109
Culture at Renewi
Our Culture
The Board considers our people
to be our most valuable asset
and places a commitment to
the highest standards of safety
at the heart of our culture.
Alignment to purpose, vision
and strategy
As a pure-play recycler, Renewi’s core
purpose is to give new life to used
materials. Our vision is to be the leading
waste-to-product company in Europe’s
most advanced circular economies, which
we aim to realise through our strategic
pillars of being a leader in recycling, a
leader in secondary materials, and
selectively growing our market share.
Our purpose, vision and strategy have
shaped a culture the Board deems fit for
the business and has determined the
Group’s core values:
Who we are:
• Safe – Safety above all else
• Sustainable – make a daily difference
to our planet
• Innovation – do it better every day
How we act:
• Accountable – do what we say we’ll do
• Customer-focused – add value for
our customers
• Together – always open and respectful
These values, which underpin our culture,
have been specifically developed to enable
us to deliver on both our strategic objectives
and sustainable business performance.
‘Setting the tone from the top’
The Board leads by example, ‘setting the
tone from the top’. Each member of the
Board supports the Group’s safety culture
and is dedicated to promoting it within
the business.
This commitment to embedding a
common understanding of the culture
flows through the governance structure of
the Board and its Committees. Executive
management is charged with ensuring the
Executive leadership understands and
embraces Renewi’s culture and actively
cascades expected standards throughout
its teams and management structures.
Centrally, Renewi’s culture and
commitment to a unified approach are
communicated throughout the business
by leadership functions. These comprise
senior management, Human Resources
and Group Internal Communications as
well as team leaders and supervisors on
a site level.
To ensure all employees understand and
adopt our culture and way of working,
they must sign up to the Renewi Code of
Conduct during induction. This details the
purpose and vision of our organisation,
standards of business integrity, the
responsibilities of the organisation and
the responsibilities of the employee.
Monitoring culture
Caring for our people is a vital part of
the Renewi sustainability strategy, and
the cultural health of the Company is
monitored through a dashboard of key
metrics, which give insight to the Board.
You can read more about how we care
for our people on page 44. In addition,
the Board receives a monthly update
on SHEQ performance and cultural and
organisational development as part of the
Chief Executive’s report, as well as regular
feedback from the Board Committees,
which monitor relevant metrics as part of
their areas of focus. This combination of
feedback mechanisms allows the Board
to identify themes emerging in the culture
of the Company, enabling decision-
making to strengthen performance or
initiate remedial action as necessary.
Culture – dashboard metrics
LTIF
6.8
FY23: 9.4
Lost time injuries rate
Employee mood
7.4
FY23: 7.4
Healthy at work rate
94%
FY23: 92%
Employee engagement
+23
FY23: +22
eNPS score in pulse survey
Females in higher management
23%
FY23: 24%
*
see page 44 for details on these metrics.
110 Renewi plc Annual Report and Accounts 2024
Employee engagement
Renewi is committed to being a great place
to work. Engagement with employees is an
important element in fostering a positive
environment in which they feel respected,
where openness is valued, diversity
celebrated, and every voice heard. The
Company recognises that people are its
most valuable asset in achieving its goals,
upholding its values and delivering its
strategic priorities.
The Board has designated Non-Executive
Director Jolande Sap to assist the Board
with employee engagement. Jolande, a
former leader of the Dutch Green Party,
GroenLinks, has a deep understanding of
socioeconomic issues and an ideal blend
of skills for this role. Over the year, Jolande
has regularly engaged with the Dutch
Works Council (DWC) including:
• June ‘Article 24’ general operation of
the enterprise discussions
• December business update meeting
• Five meetings with the DWC chair
on topics of employee and
management interest
In addition to Jolande’s work, the Board
seeks to engage directly with employees.
During the year, the Board visited several
sites within the operation, which provided
the opportunity to discuss operations
directly with staff. Board lunches were
arranged with groups of employees, of
which 4 were held during the year, which
provided an open forum for discussion on
a range of topics of importance to both the
employees and the Board.
The Board receives updates from HR
detailing the workforce’s views on a wide
variety of topics. It also receives several
Company-wide reports providing insight
into the views of the entire workforce,
regardless of location and role, allowing
for a breadth of views to be considered
when making key decisions.
Investing in and rewarding
our workforce
Although the Remuneration Committee
does not consult directly with employees,
the Committee considers general basic
salary increases for our workforce, aiming
to ensure the global total reward offering is
competitive, compelling and aligned to our
business performance, while supporting a
culture where everyone feels valued and
included. For more information see the
Remuneration Report on page 128.
Employee Pulse surveys
Renewi conducts regular Pulse surveys
to understand the mood of employees
and their attitude towards Renewi as
an employer. The data analysis includes
the calculation of a net promoter score
estimating the likelihood of staff
recommending Renewi as an employer.
The results and analysis of Pulse surveys
are presented to the Board to allow it to
monitor any changes in attitudes as well as
question Divisional Managing Directors and
Function Leaders. For more information
about Pulse surveys, see the Caring for
our people and ecosystems section on
pages 44 to 49.
What is the value of direct Board-
employee engagement at Renewi?
Since last year, at the end of Board
meetings, all Board members have, in
groups of two or three, met with small
groups of four to eight employees over
lunch. These lunches have provided an
opportunity for format-free discussions on
what makes people tick at Renewi: what
makes them proud, what are their main
concerns, what they would like to change.
The feedback proves these lunches are
considered extremely valuable by both
the Board and employees, and they deliver
great insights into culture, leadership and
delivery of strategy.
What insights have you gained into the
employee experience at Renewi?
What stands out for me is that people
are proud to work at a company that has
a positive impact on the environment and
society. Many people have strong ideas on
how to co-operate within Renewi and how
to organise our work even better to make
more impact.
Where do you see engagement
opportunities for 2024/25?
The Board should continue the Board-
employee lunches, or other engagement
forums whereby discussions can be held
in an informal setting. As the designated
Non-Executive Director for the workforce,
I will have regular meetings with the chair of
the Dutch Works Council five to six times a
year. Furthermore, I will meet the full Works
Council and join the Article 24 meeting with
management. In the coming year, I will also
revisit the Belgian Works Council – this will
help keep the Board informed of employee
topics of interest and provide a direct
communication channel between the
Board and as broad a spectrum of
employees as possible within our business.
What perspectives would you like to bring
into conversations in the coming year?
Important perspectives for discussion over
the coming year are delivery of the growth
strategy, co-operation across divisions,
innovation and personal leadership at
each level of the organisation.
Q&A with Jolande Sap, designated
director for employee engagement
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
111
Stakeholder engagement
Stakeholders
Stakeholders
Considering the interests of our
stakeholders is fundamental to the
way we operate. Our values and Code
of Conduct empower employees to make
the best decisions in the interests of the
Group and our stakeholders, helping to
ensure these considerations are made
not only at Board level but throughout
our organisation.
How our Board understands the
interests of our stakeholders
The Board appreciates that effective
stakeholder management is crucial
in ensuring the success of the business.
The Board receives regular reports from
management, which include the interests
and concerns of key stakeholder groups,
and, where appropriate, the Board
engages directly with stakeholder
representatives. During the year, the
Board received updates on various
engagement initiatives designed to
promote recycling and an understanding
of sustainability goals among stakeholders.
The Board spent time considering
engagement with the Company’s
investors and gauging their views and
concerns on several issues. The Board
continues to review its engagement
processes to ensure they best understand
how the Company’s interests align with
those of its stakeholders.
How our Board considers
stakeholders’ interests in
decision-making
The Directors act in good faith to
promote the success of the Company
for the benefit of shareholders, while also
considering the impact of their decisions
on wider stakeholders and other factors
relevant to the decisions being made. As
part of the Board’s governance process,
stakeholder issues are discussed at each
meeting. When decisions are made that
affect the Company’s stakeholders, the
Board carefully considers the interests
of each stakeholder group concerned.
For examples of how stakeholders’
interests have been considered during
the year see the Principal decisions
section on page 116.
Our key stakeholders
Our waste-producing
customers
Relevance to our business model
Our waste-producing customers are both
valued partners and the source of waste
which we can turn into circular materials.
Areas of focus
• Commercial terms and services
• Service quality
• Responsible waste management
• Industry developments
• Delivering quality waste streams
How we engage
• MyRenewi digital portal
• Customer call centres
• Daily interactions and shared learnings
• Sustainability and circularity coalitions
• Education and training programmes
• Customer events
• Questionnaires and satisfaction surveys
• Net promoter scores
Board oversight
• CEO reports to the Board including
market dynamics, key contract wins
• Presentations from Executive
Committee members and management
Outcomes of engagement
• Customer service that retains our
customers and meets their needs
• Support and advice for customers
on waste segregation and
separate collections
• Responsible waste management
• Communication of market changes
• Mission75 target to increase the
recycling rate to 75%
• Future Fit, our standardisation
programme to streamline our services
Our product customers
Relevance to our business model
Our manufacturing customers buy our
circular materials.
Areas of focus
• Development of quality circular materials
to meet customer requirements
• Certainty of supply
• Technical feasibility
and commercialisation
• Innovation and partnerships
How we engage
• Regular strategic and
operational engagement
• Customer meetings with the
engineering team to collaborate/
conceptualise new solutions
• Marketing collateral, including factsheets
• Industry and customer events
• Questionnaires and satisfaction surveys
• Net promoter scores
Board oversight
• CEO reports to the Board including
market dynamics, key contract wins
• Presentations from Executive
Committee members and
senior management
Outcomes of engagement
• Investment to produce higher
specification circular materials
• Participation in setting
industry standards
• Opening of two new, advanced sorting
lines in Ghent and Acht, enabling
us to produce greater volumes of
high-quality, clean raw materials
for our customers
112 Renewi plc Annual Report and Accounts 2024
Our innovation partners
Relevance to our business model
Innovation is key to providing superior
customer service and extracting maximum
value from waste.
Areas of focus
• Scaling innovations for strategic impact,
including investment in facilities and/or
co-investment with a strategic partner
• Potential and alternative uses of
circular materials
• Opportunities to improve the viability of
circularity and waste-to-product processes
How we engage
• Regular meetings with potential partners
and manufacturers to explore and
develop new product possibilities
• Working alongside network
organisations that provide a platform
to meet potential partners and screen
the innovation potential of ideas
and co-operation opportunities
Board oversight
• Monitoring of innovation through
reports from the CEO and CFO
• Presentations from members of the
Executive Committee and other
business leaders
Outcomes of engagement
• Strategic partnerships within the
circular economy
• Formulation of superior circular
materials to meet market needs
• Exploring the potential for new
uses for existing recycled waste
Our suppliers
Relevance to our business model
Working with a trusted group of suppliers
is key to creating a reliable and effective
supply chain.
Areas of focus
• Sourcing sustainable
technical innovations
• Responsible sourcing
• Enhanced safety of our products
• Improvements in operational processes
e.g. our source-to-pay system
How we engage
• Interaction with our procurement team
to ensure transparency and engagement
• Initial formal market tenders and
creating framework agreements with
our key suppliers
• Interaction through our source-to-pay
system and procurement digital platform
• Supplier review meetings to discuss
opportunities to improve processes
Board oversight
• CEO reports to the Board on cost
management and supply chain matters
• Modern Slavery Act compliance to
ensure an ethical supply chain
Outcomes of engagement
• Long-term relationships with trusted
suppliers to enable efficient and
sustainable purchase decisions
• Focus on safety and high ethical standards
• Collaboration on technical innovations
• Investment in digital platforms, more
efficient processing and development
of preferred suppliers
• Mitigating risks on quality and taking
advantage of market developments
Our employees
Relevance to our business model
Our employees drive our performance and
productivity and enable us to be a leader
in recycling.
Areas of focus
• Safety culture and Group values
• Pay and working conditions
• Diversity and inclusion initiatives
• Professional development
How we engage
• Safety training, lifesaving rules and
safety reporting for all employees
• Employee surveys (Pulse) and
leader-led feedback
• Performance and development reviews
• Group-wide leadership and
management team meetings
• Employee Works Councils
• Internal communications and town halls
• Opening growth pathways through
leadership training
Board oversight
• CEO reports to the Board include safety
and workforce matters
• Remuneration Committee on employee
pay, SHEQ on safety matters
• Feedback from the designated NED
• Board site visits and lunches with
employee groups
Outcomes of engagement
• A motivated and aligned workforce
• Employee attraction and retention
• A positive safety culture
• Creating diverse and inclusive teams
• Developing our people and
creating careers
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
113
Stakeholders continued
Our key stakeholders
Government
Relevance to our business model
Governmental focus on sustainability
and addressing climate change are
driving many of the changes towards
a circular economy.
Areas of focus
• Shaping legislation to deliver on
climate change targets and the
circular economy
• How the industry can help meet climate
change targets
• Use of fiscal and monetary incentives
• Legislation on sorting of waste and
stimulating higher quality of recyclates
How the Company engages
• Face-to-face engagement with
state secretaries, politicians and
other local, regional and national
government officials
• Lobbying on recycling, secondary
materials usage and climate transition
• Engaging directly or through trade and
industry associations and lobby groups
• Media coverage
Board oversight
• Board and Executive Committee
level engagement over political
and regulatory matters
• CEO reports to the Board
• Meetings with members of
the Executive Committee
Outcomes of engagement
• Understanding of the risks
and opportunities within the
waste-to-product sector
• Progressive legislation in the creation
of a circular economy, reduction
in incineration and stimulation of
demand for secondary materials
Local communities
Relevance to our business model
The processing of waste is critical for our
communities and we nurture long-term
relationships with them that uphold
our reputation.
Areas of focus
• Managing our environmental impact
• The benefits of recycling and secondary
material production
• How we reduce the impact of climate
change through recycling
How the Company engages
• Continuous dialogue with our
neighbours and local legislators
• Community events, open days and
education events
• Meetings with special interest groups
• Leafleting and social media
Board oversight
• CEO reports to the Board
• Meetings with members of
the Executive Committee
Outcomes of engagement
• Renewi’s contribution to
community projects
• Where there is an adverse event,
we actively engage with
community stakeholders
• Renewi works with communities and
local authorities on different initiatives
throughout the year. In education, we
visit schools to discuss recycling and
what happens to waste
Regulators
Relevance to our business model
Alignment with and adaptation to
regulation is key to the success of
our business model and a source
of competitive advantage.
Areas of focus
• EC-wide harmonisation
• Enforcement policy
• Operational compliance with permits
• Meeting environmental standards
• Quality requirements and the best ways
to measure them
• Defining evolving standards and
addressing topical concerns
How the Company engages
• Virtual meetings, site inspections,
testing and data submissions
• Liaison through trade and
industry associations
• Community advisory panels
Board oversight
• Board and Executive Committee-level
discussion of political and
regulatory matters
• CEO reports to the Board
• Safety data and HIT reporting
Outcomes of engagement
• Adoption of International Sustainability
Rating System framework (ISRS)
• Application of best practices and
responsiveness to any investigations
or compliance concerns raised
• A positive safety culture
114 Renewi plc Annual Report and Accounts 2024
Shareholders
Relevance to our business model
Capital raised from our equity investors
underpins the execution of our
business model.
Areas of focus
• Progressing our overarching strategy
for driving top-line growth and
improving margins
• Our strategy to increase the performance
of the Group
• Our approach to sustainability and
climate risk
How the Company engages
• Dedicated Investor Relations function in
constant communication with investors
• Capital Markets events and site visits
• Roadshows, video conferences,
telephone calls and other meetings
• Regular trading updates on
regulatory platforms
• Annual Reports and the Annual
General Meeting
Board oversight
• Chairman and Executive management
meetings with major investors,
feedback shared with the Board
• Regular investor relations and
shareholder activity reports
Outcomes of engagement
• Presenting the investment case, the
financial and non-financial performance
of the business and the likely future
trajectory of the business performance
based on the outlook
• Positioning Renewi to attract
investors interested in sustainable
and green investment
Lenders
Relevance to our business model
Financing raised from debt investors and
banks supports ongoing business activities.
Areas of focus
• Our approach to sustainability
• Optimising liquidity, cash management,
risk management and other
treasury activities
• Debt facilities management, issuances
and maturities
• Financial markets changes, including
ESG reporting requirements
• Experiences and expectations for the
local economies and investors
How the Company engages
• Regular financial reporting and covenant
compliance reporting documents
• Maintaining close contact regarding the
ongoing performance of the Group
including bi-annual bankers’ meetings
• Discussions regarding the ongoing
facilities and utilisation
• Consultation regarding alternative
financial products available
• Regularly sharing insights
Board oversight
• Receives regular reports from the CEO
• Meetings with the CEO, CFO and
Group Treasury
Outcomes of engagement
• Lenders understand our capital
requirements, financial performance
and sustainability performance
• Continued access to the lending markets
• Positioning Renewi to attract
investors interested in sustainable
and green investment
Global community
Relevance to our business model
Renewi’s business model is geared to
facilitating the circular economy and
thereby addressing the climate emergency.
Areas of focus
• Addressing climate change
through circularity
• Ways to deliver essential services with
minimal impact on the environment
How the Company engages
• Contribution to the ongoing debate
around climate change
• Influencing communication channels
such as press and social media
• Advocating on the importance in keeping
recyclable materials in the value chain
Board oversight
• Approval of the Group’s various ESG
targets, objectives and goals
• Ongoing monitoring and assessment
of performance against ESG KPIs
• Oversight of engagement with the
various interested stakeholder groups
Outcomes of engagement
• Roadmap to 2030 (FY31) 50% reduction
in Scope 1&2 emissions, 25% in
Scope 3 emissions
• Encouraging companies to produce
products that can be recycled, leading to
greater value being extracted from waste
• Change in behaviour, such as greater
discipline in sorting waste for collection,
leading to greater value being extracted
from waste
• Recycling rate target
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
115
Principal decisions during FY24
Principal decisions
The needs of our different stakeholders as well
as the consequences of any decision in the long
term are carefully considered by the Board.
This includes those decisions that involve the
competing interests and priorities of our key
stakeholders. The Board acknowledges its
overriding duty to promote the success of
the Company and recognises that conflicts
between differing interests will often arise.
More information on Section 172(1) can be
found on page 90.
Key decision
Impacted stakeholders
Strategic review of the UK Municipal business
As announced on 4 October 2023, the Board decided to conduct a strategic review of the UK Municipal business as part of
initiatives to optimise the Group’s portfolio. The Board determined that a carefully managed exit from the UK Municipal
business would align with the Group’s strategic objectives and support the long-term success of the Company for its
members as a whole. In reaching its decision, the Board considered the contribution of the UK Municipal business to
the performance of the Group, the limited synergies between its business model and that of the Group as a whole, the
stakeholder groups that would be impacted, and the extent of such impacts upon each stakeholder group. As far as
possible, the Board has ensured that management has provided clear communications to impacted stakeholders,
in particular our employees, and that it remains available to answer questions and address concerns. The Board will
continue to oversee the process to ensure that stakeholder interests are protected as far as possible in the context
of promoting the success of the Company.
Customers
Local communities
Suppliers
Employees
Shareholders
Lenders
Link to strategy
Macquarie bid
During 2023, the Board received non-binding all-cash indicative proposals from Macquarie Asset Management
(Macquarie) to acquire the entire share capital of the Company. The Board, in consultation with its advisors, carefully
assessed the value and deliverability of those proposals against the future prospects of the Company. During these
discussions, the Board focused on maximising shareholder value. It compared the value of the proposals against the
fundamental value of Renewi. The Board determined that Macquarie’s proposals undervalued Renewi and its prospects,
but communicated to Macquarie that it was open to engagement at price levels that reflected Renewi’s fundamental
value. As a Board, we are focused on maximising value for all of our shareholders and are confident in the Company’s
future prospects, but are objective and pragmatic about the route through which value is maximised.
Shareholders
Link to strategy
Future Fit
The Board agreed a package of measures to ensure Renewi is ‘Future Fit’. These included, but were not limited to:
i) investment in Renewi’s digital core; ii) right-sizing the Netherlands employee base; and iii) simplifying the organisational
structure. In continuation of the harmonisation and digitisation process commenced under Renewi 2.0, digital core will
address back-office IT systems consolidating the digital landscape within the business. The right-sizing of the Netherlands
employee base meant having to lose 160 employees, a process that was completed in December 2023. Finally, the
simplification of the organisational structure brings Commercial Waste under one management team, and centralises
support functions across the Group. These measures are expected to deliver significant costs savings and optimise
Renewi’s positioning for future growth. The Board deemed these decisions necessary steps to promoting the long-term
success of the business. Through updates received from management, the Board was satisfied that actions taken were in
line with the Group’s culture and values, redundancies were made with respect and sensitivity with the aim of mitigating
the impact on those employees affected, and that transformation of the business will benefit all stakeholder groups over
the long term.
Employees
Shareholders
Customers
Suppliers
Link to strategy
Investment strategy
The Board continued to support the €100m investment it approved for building new waste sorting facilities in Belgium in
response to the VLAREMA 8 regulation, and facilities in the Netherlands for recycling plastics and converting out-of-date
food waste into gas. The first of these projects was completed with the opening of the Ghent facility, where a new
and innovative sorting line started production sorting mixed commercial waste into 24 recyclates, saving them from
incineration. The second project was the new rigid plastics sorting facility in Acht. The newly opened facility will allow
the Company to recycle not only separately collected plastics, such as a rigid plastic mix from recycling centres, but also
more contaminated material from Construction & Demolition waste. The Board considered that these investments would
continue to have a lasting positive impact for the Company, its customers and communities over the years to come.
Regulators
Customers
Local communities
Shareholders
Link to strategy
Dividends
The Board is conscious of the importance of dividends as an income stream for many shareholders. Taking into account
the financial position of the Company and continued confidence in the financial strengths and prospects of the business,
the Directors decided it was appropriate to recommend a final dividend totalling 5 pence per share. The Board will keep
the dividend policy under review to ensure it remains appropriate and continues to be in the interests of shareholders.
Investors
Employees
Link to strategy
Renewi defines principal decisions as those
that are material or strategic to the Group and
significant to any of our stakeholder groups.
We detail below how the Board factored
stakeholders into principal decision-making
during FY24. The Board carefully considered
how each decision promoted the long-term
success of the Group, its financial and
non-financial impacts, and had due regard
to the other matters set out in s172(1)(a) to (f)
of the Companies Act 2006.
Key:
Selectively grow market share
Leader in recycling
Leader in secondary
material production
116 Renewi plc Annual Report and Accounts 2024
Committees
Safety, Health and Environment
Committee Report
On behalf of the Board, I am pleased to present the
Safety, Health and Environment Committee Report
for the year ended 31 March 2024.
Committee membership and
FY24 Committee meeting
attendance
Luc Sterckx (Chair)
4(4)
Allard Castelein
4(4)
Neil Hartley
4(4)
Bracketed figures indicate maximum potential
attendance of each Director.
Role of the Committee
• Review and recommend
appropriate policies related to
the protection of the environment,
together with the safety of
employees, contractors,
customers and the public,
and oversee the monitoring and
enforcement of these policies and
related practices and procedures
• Review significant risks or
exposures and assess the steps
management has taken to
minimise those risks
• Assist in keeping Directors
informed of their safety,
health and environmental
responsibilities and duties
as necessary and relevant
• Monitor regulatory changes in
relation to safety, health and
environmental matters and the
impact such changes may have
on the business of Renewi
• Receive reports as to
divisional safety and health
and environmental policies and
arrangements, compliance with
and any proposed changes to
those policies and arrangements
• Receive reports as to safety, health
and environmental performance
and any major incidents to ensure
that management identifies and
implements any corrective action
considered appropriate to achieve
compliance and raise performance
where required
For terms of reference go to
renewi.com/sheco
*
The Safety and Compliance Taskforce meets monthly to review performance and
progress against the SHEQ Strategy Plan. Membership includes Divisional MDs, the
CEO and the Group SHEQ Director, and divisional SHEQ Directors. The Safety and
Compliance Taskforce is focused on accountability and ensuring the execution of
the SHEQ Strategy Plan.
** The team of SHEQ leads comprises the Group SHEQ Director, divisional SHEQ
Directors and the Group SHEQ team.
Luc Sterckx
Chair of the
SHE Committee
Ensuring high standards of safety, health and environmental
quality (SHEQ) is a priority for Renewi and the focus of the
Committee. During the year, the Committee has monitored
progress and development in Renewi’s SHE environment,
providing robust oversight and ensuring that the Group
delivers against its commitments.
The Committee met four times during the year, with meetings
attended by the Chief Executive Officer, Group SHEQ Director
and Divisional Managing Directors by invitation.
Over the course of the year the Committee has overseen continued
improvements in the SHEQ environment within the Company.
Management’s decision to appoint a seasoned operational
managing director as SHEQ Director, bringing a wealth of practical
SHEQ expertise to the position was welcomed by the Committee,
and has proved instrumental in improving overall SHEQ performance.
The work undertaken on safety, health and environmental
performance, as well as the Renewi Safety Strategy, the
International Sustainability Rating System (ISRS) implementation,
traffic safety and environmental initiatives, are discussed in
the paragraphs below.
The Committee has continued to work closely with the Board in
driving a strong safety culture within the Group, providing regular
updates on performance and initiatives. In FY24 the remit of the
internal audit function was expanded to include monitoring
compliance with SHEQ policies, management systems and
programmes. The Committee has and will continue to liaise
closely with the Audit Committee to oversee this area of activity.
Renewi plc Board
SHE committee
Safety and Compliance
Taskforce*
Executive committee
SHEQ leads**
SHE corporate governance framework
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
117
The Committee has also been
instrumental in the work of the
Remuneration Committee with respect
to determining appropriate safety targets
for the Group’s incentives programmes.
Safety, health and
environment performance
During the year, the Committee
monitored performance in mitigating
safety, health and environmental risks,
and reviewed the root cause of significant
events. The table on the right details the
Group’s performance against some of
the key SHEQ metrics.
On a year on year comparative basis, I am
pleased to report a 26% improvement in
lost time injuries and a 28% improvement
in lost time injury frequency rate.
Restricted work cases, total recordable
incidents and the total recordable
incident rate improved by 2%, 17% and
19% respectively. Numbers of medical
treatment cases increased by 13% in
comparison to the prior year. While
the Committee is encouraged by this
improved performance in most areas,
we remain committed to ensuring
management achieves continuous
improvement in SHEQ performance
across all areas.
In addition to the initiatives detailed
below, the Committee, in conjunction
with the Remuneration Committee, has
determined an annual-bonus linked
stretching new target of 50% reduction
in LTIF over the three years to FY27.
Safety strategy
In FY24, the Committee considered and
approved the Renewi Safety Strategy,
which has an overall objective of zero
accidents. The strategy is designed to
promote cultural change in risk awareness
and safety leadership, supported by
investment in facilities, vehicles, tools
and equipment, and underpinned by
robust management systems and clear
standards, in compliance with the ISRS
framework. The Committee will continue
to oversee progress in this area to ensure
the Group continues to drive a culture of
safety awareness and compliance
throughout the business.
Roll out of ISRS
The Committee monitored the
implementation of ISRS within the
business against the plan agreed and
reported upon in FY23. The objective of
ISRS implementation is to establish a
system for improving SHEQ and operational
performance. The programme has
resulted in significant improvements
in key element standards of Leadership,
Risk Evaluation, Compliance, Risk Control,
Asset Integrity and Risk Monitoring across
all business divisions. The Committee will
continue to monitor the effectiveness
of the implementation of the ISRS
programme under which the majority
of ISRS key elements identified for the
business were completed in FY24, with
the remainder scheduled for completion
in FY25.
Site traffic safety
The Committee is dedicated to ensuring
that all Renewi sites are safe for vehicle
operators and pedestrians. In June 2023,
traffic safety standards applicable to all
sites were agreed, which aim to ensure
optimal site arrangements for the physical
separation of vehicle and pedestrian
traffic. These standards are being rolled
out across all Renewi sites and, once fully
implemented, will significantly improve
safety for our employees, customers
and other site users. The Committee
will continue to support management’s
efforts to ensure standards are adhered to
throughout the Group, and will maintain
oversight of site development where
implementation has required further
investment and redesign.
Environmental permits compliance
The Committee monitored the Group’s
progress against our environmental
permits compliance and non-conformities
(ENC) targets during the year. Enhanced
ISRS aligned reporting systems introduced
in FY23 have assisted oversight in this
area, which in addition to an increased
focus on mitigating risk, resulted in an
improved performance over FY24. In FY25
the Committee will continue to monitor
ENC performance as a priority area for
the business.
Committee evaluation
I am pleased to report that the Committee
continues to operate effectively. In view
of the constant development and
improvement of regulation within the
SHEQ field, and the consequent impact
on the Group and the workload of the
Committee, the evaluation indicated that
the Committee should continue to work
to ensure that its time and priorities are
managed efficiently.
Going forwards
Throughout FY25, the Committee
will continue to oversee the delivery
of SHEQ objectives within the business.
Key oversight focus areas will include the
continued promotion of a robust SHEQ
culture across the Group, an increased
focus on risk awareness, and the
implementation and effectiveness
of the ISRS programme.
Luc Sterckx
Chair of the SHE Committee
Type of incident
FY24
FY231
% change
Medical treatment cases
102
90
+13%
Restricted work cases2
57
58
-2%
Lost time injuries
99
134
-26%
Fatalities
0
1
-100%
Total recordable incidents
258
311
-17%
Lost time injury rate (LTIF)3
6.8
9.4
-28%
Total recordable incident rate (TRIR)4
17.7
21.9
-19%
1. Restatement of FY23 metrics resulting from the limited assurance exercise.
2. Restricted work cases is number of cases where a workplace accident results in an injury which prevents the
injured person from performing the full range of normally assigned duties, but they are able to perform other
duties at work.
3. Lost time injury frequency Rate (LTIF) is the number of lost time injuries occurring per 1 million man hours
worked (excluding contractors).
4. Total recordable incident rate (TRIR) is the total recordable incidents per 1 million man hours worked.
Committees continued
118 Renewi plc Annual Report and Accounts 2024
Audit Committee Report
On behalf of the Board, I am pleased to
present the Audit Committee Report for
the year ended 31 March 2024.
Committee membership and FY24
Committee meeting attendance
Katleen Vandeweyer (Chair)
5 (5)
Neil Hartley
5 (5)
Luc Sterckx
5 (5)
Jolande Sap
5 (5)
Bracketed figures indicate maximum potential attendance of
each Director.
Role of the Committee
The primary objective of the Audit Committee
is to assist the Board in fulfilling its corporate
governance responsibilities relating to the
Group’s corporate reporting, risk management
systems, internal controls and any other
matters referred to it by the Board.
This covers:
• monitoring the integrity of the financial
statements including annual and
half-yearly reports
• reviewing and challenging the consistency
and appropriateness of and changes to
significant accounting policies, the methods
used to account for significant or unusual
transactions, and appropriate estimates
and judgements
• keeping under review the adequacy
and effectiveness of internal financial
controls and internal control and risk
management systems
• reviewing the adequacy of procedures
for detecting fraud and ensuring that
appropriate arrangements are in place
to allow for company employees to raise
concerns, in confidence, about possible
wrongdoing in financial reporting or
other matters
• monitoring and review of the effectiveness
of the internal audit function in the context
of the overall risk management system
• the appointment, terms of engagement,
effectiveness, objectivity and independence
of the external auditors and the nature and
scope of the audit
• the development and implementation of
policy on the engagement of the external
auditor to supply non-audit services
• reviewing the methodology and approach
for reporting in support of strategy set by
the Board in relation to sustainability and
climate change.
For terms of reference go to renewi.com/audit
Katleen
Vandeweyer
Chair of the
Audit Committee
The Audit Committee assists the Board in fulfilling
its responsibilities relating to the Group’s corporate
reporting including sustainability and climate change,
risk management and financial controls and the internal
and external audit functions.
The report is intended to provide shareholders with
an insight into key areas considered, together with how
the Committee has discharged its responsibilities. This
includes details of the significant accounting matters
and issues in relation to the Group’s financial statements
that the Committee has assessed during the year
and how these were addressed, and our process for
concluding that this Annual Report is fair, balanced
and understandable. The other primary responsibilities
of the Committee, including ensuring that the external
auditor is independent and effective, confirming that the
Group has an effective internal control framework and
reviewing the effectiveness of the Group’s internal audit
function, are also detailed over the following pages.
The Committee met five times during the year. The
timing of meetings coincides with key intervals in the
Group’s reporting and audit cycle. Regular attendees at
Audit Committee meetings include the Chief Financial
Officer, the Group Financial Controller, the Group Tax
Manager, the Internal Audit Director and the external
auditors. Others who attend as required include the
IT Director, sustainability leads and other senior
personnel and advisers to the Company.
The results of the FY24 Committee evaluation indicated
the Committee continues to operate effectively, with all
oversight areas appropriately addressed. Priorities for
the coming year will include optimising the Committee’s
effectiveness and managing its increasing remit.
At the conclusion of the year, the Committee amended
its terms of reference to formally adopt the FRC’s
‘minimum standard for audit committees’, which listed
companies are encouraged to adopt on a voluntary
basis. The Committee looks forward to reporting on
its performance in line with the recommendations in
the coming year.
Katleen Vandeweyer
Chair of the Audit Committee
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
119
Committee activities during FY24
At its meeting in May 2023, the Committee
considered corporate governance
compliance, taxation and the final review
of the FY23 Annual Report and Accounts.
A meeting in July 2023 considered a full
debrief and evaluation of the FY23 audit
together with improvements for FY24.
A meeting in September 2023 considered
the evolving ESG regulatory landscape,
the Group’s preparedness for FY24
limited assurance and moving towards
compliance with new regulations regarding
the Corporate Sustainability Reporting
Directive as well as further requirements
coming into effect at the end of FY25.
The October 2023 meeting was concerned
primarily with the interim results, the
external auditor’s plan and strategy for the
FY24 year-end, Group risk management
and internal control compliance, and
internal audit performance.
The February 2024 meeting considered
the preparation of the FY24 financial
statements and all other year-end
accounting matters and treatments, an
update of the external auditor’s plan for
FY24, the annual review of the non-trading
and exceptional items policy, year-end risk
management planning and the internal
audit plan for the new financial year.
Financial statements and significant
accounting matters
During the year, and before the
publication of the Group’s results for
the half year and full year, the Committee
assessed whether suitable accounting
policies had been adopted, that
management had made appropriate
estimates and judgements, and that
disclosures were appropriate. The
Committee reviewed the main issues as
noted below, challenging management
at various stages during the year.
After reviewing the reports from
management, challenging the key
judgements and estimates and assessing
the risks identified, the Committee was
satisfied that the financial statements
addressed these areas, both in respect of
the amounts reported and the disclosures
made. The Committee also reviewed
the significant assumptions used to
determine the value of assets and
liabilities and provided appropriate
challenge to ensure these were sufficiently
robust. The Committee discussed these
issues with the external auditors during
the audit planning process and at the
finalisation of the year-end audit.
The table as presented below is not a
complete list of all the Group’s accounting
issues, judgements, estimates and policies
but highlights the most significant ones in
the period. The accounting treatment of
all significant issues and judgements was
subject to audit by the external auditor as
set out in its Independent Auditor’s Report.
Issue
Review
Disposal of subsidiaries and
consideration of asset held for
sale classification
As announced to the market in
September 2023, the Group has
commenced a strategic review of the
UK Municipal activity with the intention
to dispose of these interests with an
outcome targeted for the first half
of 2024.
Given the announcements made and Board discussions it is necessary to consider
whether the Asset Held for Sale criteria of IFRS 5 were met. The Committee reviewed
management’s papers addressing the assessment of the key questions set out in the
accounting standard and confirmation that the criteria for classification of asset held
for sale had been met and that the UK Municipal business qualifies as a discontinued
operation. Disclosure as a critical accounting judgement has been documented in section 1
of the financial statements were all additional disclosures and re-presentation of prior year
the financial statements have been reviewed.
Presentation of underlying
performance and other
alternative performance measures
Management continues to consider
the latest FRC guidelines on alternative
performance measures to ensure that the
Annual Report and Accounts have been
prepared in line with best practice.
The Group’s performance measures continue to include some metrics which are not
defined or specified under IFRS reporting. The Group discloses non-trading and exceptional
items separately due to their size or incidence to enable a better understanding of
performance. Following a recent 2024 thematic review issued by the Dutch regulator,
management undertook a detailed review of alternative performance metrics used.
Based on a review of the supporting papers from management, the Committee considered
that all alternative performance measures were appropriate and all items disclosed as
non-trading and exceptional were appropriately classified and in line with the non-trading
and exceptional items policy, which is reviewed annually by the Committee. The Committee
also considered disclosure of the Group’s alternative performance measures and noted
that these are set out in detail in note 8.3 in the financial statements together with
reconciliations of adjusted performance measures to statutory results. In addition to
the above, the Committee also considered other one-off items included in underlying
performance as they do not fit the definition of non-trading and exceptional policy.
The Committee concluded these were treated correctly.
Committees continued
120 Renewi plc Annual Report and Accounts 2024
Issue
Review
Impairment considerations
The Group has a significant value of
goodwill and other intangible assets.
As part of the normal impairment testing
the Group has sufficient headroom on
the carrying values of its goodwill
and therefore did not recognise
any impairments.
Impairment testing is inherently subjective as it includes assumptions in calculating the
recoverable amount of the cash generating unit being tested. Cash flow projections include
discount rates that reflect the appropriate risk, long-term growth rates and future profitability.
The annual impairment review is submitted to the February meeting with a further update to
the May meeting once final March information is available. The Committee has reviewed the
papers prepared by management which also include downside modelling and sensitivity
analysis and concluded that there is sufficient headroom across all cash-generating units.
The goodwill note in the financial statements includes the key assumptions used in the
value in use calculations and references sensitivity to changes in assumptions. As part of the
review the carrying value of investments in the Company balance sheet is also considered.
Landfill related provisions
Landfill provisions, due to their nature,
are judgemental as they are subject to a
number of factors including changes in
legislation and uncertainty over timing
of payments.
The annual review of provisions in discussions with management considered the assumptions
used including discount rates and the period of liability and confirmed they are reasonable
and appropriate. As in 2022, external advice was obtained regarding the discount rate used
for the final March 2023 values. The disclosures in note 4.10 of the financial statements remain
consistent with the enhancements added in 2022 and the Committee has concluded that the
disclosures are appropriate.
Accounting for various tax-related
matters
The most significant judgements for tax
relate to deferred tax asset recognition
and uncertain tax positions.
During the year, the Committee received verbal and written reports from senior management
on all tax-related matters.
The Committee has reviewed the Group’s considerations on future profitability to evaluate the
judgement that it is appropriate to reflect deferred tax assets with regard to the UK and Dutch
businesses and considered the disclosures given in the financial statements.
There has been no resolution with regard to the transfer pricing enquiry from the Dutch
tax authority and this will now be subject to a mutual agreement procedure between the
Dutch and UK tax authorities. As such this matter remains as a key uncertain tax position.
The Committee has reviewed management’s papers of the provision reflected in the
financial statements and the additional disclosure setting out the maximum exposure.
Onerous contracts in UK Municipal
These provisions are judgemental and
based on management’s best estimates,
including long-term forecasts along with
a number of assumptions given the
long-term nature of the contracts.
Given the significant provisions reflected in earlier years, reviews of expected future cash
flows and assumptions on a contract-by-contract basis are discussed with management
with appropriate challenge as part of the interim and year-end procedures. Following these
discussions, the Committee concluded that the total level of provisions and the associated
disclosures included in the financial statements were appropriate at 31 March 2024. Following
the determination of the UK Municipal business as asset held for sale these provisions are
now shown as part of liabilities of the disposal group in note 6.4 of the financial statements.
Defined benefit pension schemes
The Group has defined benefit pension
schemes in the UK and overseas where
judgement in applying appropriate
assumptions is required.
As in prior periods, suitably qualified external advisers are used to determine the IAS 19
valuations at the year end. The Committee has reviewed management’s papers of the
values reflected in the financial statements. The pensions note in the financial statements
includes the key assumptions used in the valuations and references sensitivity to changes
in assumptions.
Going concern and viability
The Committee is required to make
an assessment of the going concern
assumptions for the Group and the basis
of the Viability Statement before making
a recommendation to the Board.
A comprehensive going concern
assessment has been presented to the
Committee which included a review of
medium-term cash flow modelling over a
24-month period to 31 March 2026. As well
as a base case scenario setting out current
expectations of future trading, a downside
scenario has been prepared. The key
judgement in both scenarios is the
possibility of weaker macroeconomic
conditions, delivery of the year on year
profit enhancements together with the
Group’s ability to finance the funding
of the UK Municipal exit expected in
September 2024 and settle all other
funding repayments as they fall due.
The Committee reviewed the detailed
paper and cash flow analysis and
challenged management on the
assumptions and judgements of
the continued cash generation of the Group
and the compliance with covenants across
both the base and downside scenarios.
After careful consideration of all the
key judgements around the financial
projections, including the availability
of financing and the achievability of
mitigating actions included and other
levers not included, the Committee has
confirmed to the Board that sufficient
headroom exists and that the adoption
of the going concern principle
remains appropriate.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
121
Chair also maintains regular contact with
the audit partner throughout the year.
To ensure the effectiveness of the external
audit process, BDO LLP conducts an audit
risk identification process at the start of
the audit cycle. This plan is presented to
the Audit Committee for its review and
approval. For the FY24 audit, the key audit
matters and significant risks identified
included revenue recognition, landfill
provisions, disposal of subsidiaries,
onerous contract provisions, assets
and liabilities in defined benefit pension
schemes and management override
including presentation of non-trading and
exceptional items. Other areas of elevated
focus for this year included litigation
and claim provisions, impairment of
tangible and intangible assets and
areas of taxation including deferred tax
recognition and uncertain tax positions.
The Committee reviews the performance
and effectiveness of the external auditors
in performing the audit by carrying out an
assessment across several stakeholders
that evaluates various aspects of the
process. Considering feedback from
the business and the Committee’s own
experiences of working with BDO LLP
during the year, the Committee is satisfied
that the external auditors are providing an
effective audit.
For the Committee and the Board,
the objectivity of the Group’s external
auditors is key. The Committee reviews
the independence of the auditors on an
annual basis. BDO LLP’s rotation rules
require the lead audit partner and key
partners involved in the audit to rotate
every five years. BDO LLP is required to
confirm to the Committee that it has
the appropriate independence and
no matters of concern were identified
by the Committee. The Committee’s
responsibility to monitor and review
the objectivity and independence of
the external auditor is supported by
a non-audit services policy. Specified
services may be provided by the external
auditor subject to a competitive bid
process, other than in situations where
it is determined by the Committee that
the work is closely related to the audit
or when a significant benefit can be
obtained from work previously conducted
by the external auditor. The approval
process of any new engagement remains
in place, with the CFO able to approve
any new engagement up to the value
of €25,000, with anything in excess of
that limit requiring Committee approval.
During the year €0.4m of non-audit fees
were provided by BDO (2023: €0.3m).
The total audit fees, as disclosed in
note 3.2 of the financial statements,
amounted to €2.4m (2023: €2.1m).
The Committee also considered a paper
and outputs from the financial modelling
prepared by management in respect of
the longer-term Viability Statement to
be included in the Annual Report and
Accounts. The Committee discussed with
management the risks, sensitivities and
mitigations for the modelled scenarios.
The period to be used for the viability
modelling was discussed and it was
concluded that a five-year period was
appropriate based on the Group’s
five-year strategic planning process.
The Committee concluded that the
longer-term Viability Statement was
appropriate and approved it for
recommendation to the Board.
Fair, balanced and understandable
As part of its review of the FY24 Annual
Report and Accounts, the Committee
considered whether the report, taken
as a whole, was fair, balanced and
understandable and that it provided the
information necessary for shareholders
to assess the Company’s position,
performance, business model and
strategy. To assist with this assessment,
the Committee reviewed an assessment
completed by management to illustrate
the fair, balanced and understandable
aspects of the Annual Report and
Accounts and a summary of the
review and approval processes involved.
Following consideration of these items
at the 28 May 2024 meeting and its
consideration of all developments in the
year, the Committee was satisfied that
the key events and issues, both positive
and negative, were adequately reflected
and referenced in the Annual Report
and Accounts.
External auditors
Following the competitive tender carried
out in 2019 and the shareholder approval
at the 2020 AGM, BDO LLP was appointed
as the Company’s statutory external
auditor for the year ended 31 March 2021
and re-appointed each year thereafter.
Mark Cardiff is the incumbent audit
partner, and will have been in post for
four years at the conclusion of the FY24
audit. The Committee holds private
meetings with the auditors in the absence
of management and the Audit Committee
Committees continued
122 Renewi plc Annual Report and Accounts 2024
At the October 2023 meeting, the
Committee discussed the provision of
non-audit fees of €800 from a separate
BDO firm which had not received all
pre-approvals in line with the non-audit
services policy. The Committee
acknowledged this breach against the
Ethical Standard and confirmed that it did
not threaten the independence of BDO LLP.
The Committee noted that a similar de
minimis matter arose in FY23 and as a
result there has been refreshed
communication of the pre-approval
requirements across the businesses to
prevent a re-occurrence. During the year,
tax and other professional services have
also been provided to the Group by the
audit firms Deloitte, PwC, EY and KPMG.
Internal audit
Internal audit is an independent and
objective function, which aims to improve
Renewi’s overall control framework and
evaluate and improve the design and
effectiveness of control processes. Reviews
of financial processes and cycles are
carried out and investigation activities are
performed on control failures to identify
root causes and provide recommendations
for resolution and prevention. The
Committee monitors and reviews the
effectiveness of its work and approves its
annual plan.
The internal audit programme in FY24
comprised a schedule of internal audits
for sites and specific themes across all
divisions and central functions, including
SHEQ and business operations. The
detailed findings from all reviews are
presented to and considered by the
Committee. Any necessary actions and
improvements are acted upon by local
divisional teams with further internal
auditing as required and regular follow-up
at monthly business review meetings.
Consistent with previous years, limited
audit services from suitably qualified
external providers were also engaged
during the year. In respect of the internal
audit function’s monitoring compliance
with SHEQ policies, management systems
and programmes, reporting efficiency is
achieved through the Committee retaining
oversight while liaising closely with the SHE
Committee to ensure that material matters
are swiftly remediated.
There has been further enhancement of
the key control framework during the year
with compliance reporting consistently
above 95%.
The Committee is updated on the
implementation of agreed management
actions and overall control environment
progress at each meeting.
Accountability and audit
The responsibilities of the Directors and the
auditors regarding the financial statements
are set out on page 151.
Risk management
The Group risk management framework,
major risks and the steps taken to manage
these risks are outlined on pages 66 to 89.
Internal control responsibility
The system of internal control is based
on a continuous process of identifying,
evaluating and managing risks, including
the risk management processes outlined
on pages 66 to 89. The Board of Directors
has overall responsibility for the Group’s
system of internal control and for reviewing
its effectiveness. The Board recognises that
internal control systems are designed to
manage rather than eliminate the risk of
failure to achieve business objectives and
can therefore only provide reasonable and
not absolute assurance against material
misstatements, losses and the breach of
laws and regulations.
Effectiveness of the risk management
and internal control systems
In addition to the Board’s ongoing internal
control monitoring process, it has also
conducted an annual effectiveness review
of the Group’s risk management and
internal control systems in compliance
with Provision 29 of the UK Corporate
Governance Code. This covered risk
management systems and all significant
material controls including financial,
operational and compliance controls.
Specifically, the Board’s review included
consideration of changes in the risk
universe and the Group’s ability to respond
to these through its review of business risk
register controls and improvement action
plans. The Committee also reviewed the
six-monthly certification by divisional
management to ensure that appropriate
internal controls are in place as well
as reports by internal audit and
external auditors.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
123
The main elements of the internal control
and risk management frameworks,
which contribute towards continuous
monitoring, are as follows:
• A defined schedule of matters for
decision by the Board
• Group manuals and guidance setting
out financial and accounting policies,
minimum internal financial control
standards and the delegation of
authority over items such as capital
expenditure, pricing strategy and
contract authorisation
• A comprehensive planning and
budgeting exercise
• Performance is measured monthly
against the plan, prior year and latest
forecast results with explanations
sought for significant variances. Key
performance indicators are also used
to provide early warning of potential
additional risk factors
• Monthly meetings with the divisional
management teams to discuss
performance and plans
• Appointment and retention of
appropriately experienced and
qualified staff to help achieve
business objectives
• An annual risk-based internal audit
plan approved by the Committee.
Summaries of audit findings and the
status of action plans to remedy any
significant failings are regularly
discussed at Group Board and
Committee meetings
• A monthly key control framework
operates in all divisions and functions
with a summary of compliance
reported to the Group Board
• A range of quality assurance, safety and
environmental management systems
are in use across the Group. Where
appropriate, these are independently
certified to internationally recognised
standards and subject to regular
independent auditing
• The Committee promptly reviews any
fraudulent activity or whistle-blowing
reports and takes appropriate action
• Where weaknesses in the internal
control system have been identified
through the monitoring processes
outlined above, action plans to
strengthen them are put in place and
regularly monitored until complete.
The Board confirms that no material
weaknesses were identified during the
year and therefore no remedial action
is required in relation to them
Financial reporting
In addition to the general risk
management and internal control
processes described above, the Group has
implemented internal controls specific to
the financial reporting process and the
preparation of the annual consolidated
financial statements. The main control
aspects are as follows:
• Formal written financial policies
and procedures applicable to all
business units
• A detailed reporting calendar including
the submission of detailed monthly
accounts for each business unit, in
addition to the year-end and interim
reporting process
• Detailed management review to Board
level of both monthly management
accounts and year-end and
interim accounts
• Consideration by the Board of whether
the Annual Report is fair, balanced
and understandable
• Biannual certification by Divisional
Managing and Finance Directors and
Executive Directors on compliance with
appropriate policies and accuracy of
financial information
• The Committee receives regular reports
from the Group Tax Manager on the
Group’s tax policy, tax management
and compliance
Anti-corruption and anti-bribery
The Renewi Code of Conduct and
Reporting and Investigation Protocol
have operated throughout the year and
integrity reporting is a standing item at
all Committee meetings.
Committees continued
124 Renewi plc Annual Report and Accounts 2024
Nomination Committee Report
On behalf of the Board, I am pleased to present the
Nomination Committee Report for the year ended
31 March 2024.
Committee membership and
FY24 Committee meeting
attendance
Ben Verwaayen (Chair)
3 (3)
Allard Castelein
3 (3)
Jolande Sap
3 (3)
Luc Sterckx
3 (3)
Neil Hartley
3 (3)
Katleen Vandeweyer
3 (3)
Bracketed figures indicate maximum potential
attendance of each Director.
Role of the Committee
• Review the structure, size and
composition (including the skills,
knowledge, experience and
diversity) of the Board and make
recommendations to the Board
with regard to any changes
• Give full consideration to
succession planning for Directors
and other senior executives and,
in particular, for the key roles
of Chairman and Chief
Executive Officer
• Keep under review the leadership
needs of the Company, both
executive and non-executive, with
a view to ensuring the continued
ability of the organisation to
compete effectively in
the marketplace
• Identify and nominate, for the
approval of the Board, candidates
to fill Board vacancies as and
when they arise
• Recommend the election
and re-election by shareholders
of Directors under the annual
re-election provisions, having
due regard to their performance
and contribution in light of the
knowledge, skills and experience
required and the need for
progressive refreshing of the Board
• Review the results of the
annual Board performance
evaluation process
For terms of reference go to
renewi.com/nomco
Ben Verwaayen
Chair of the
Nomination
Committee
The Nomination Committee leads the process for Board
appointments, ensuring plans are in place for orderly succession to
both the Board and senior management positions, and oversees the
development of a diverse pipeline for succession. The majority of
the Committee members are independent Non-Executive Directors.
As Chairman of the Board, I do not chair the Committee when it
is dealing with matters relating to my own succession planning.
Succession planning
Appointments to the Board are subject to a formal, rigorous
and transparent procedure. Each year, the Committee reviews
the composition of the Board and its Committees and considers
whether the balance of independent Directors and the skills,
experience and knowledge present on the Board is appropriate to
ensure the long-term success of the Company. Annual succession
planning also considers the length of service on the Board of the
Chairman and Non-Executive Directors, as well as other factors
that might impair Directors’ independence, to ensure membership
is regularly refreshed.
The Nomination Committee considered succession planning
for FY24, testing these elements to determine whether the
Board composition required amendment. With respect to length
of service, I was independent on appointment as Chairman, and
I and the other Non-Executive Directors have each served terms
of less than nine years. During the year, the Committee concluded
that the Board retained the right membership balance to provide
effective leadership and that no changes to composition were
currently required.
As part of annual succession planning the Committee considers
the composition and pipeline for executive management roles
and the Executive Committee (from FY25 the Executive Leadership
Team). In FY24, the Committee noted that the Executive leadership
composition had been strengthened with new roles recruited
externally and from internal promotion, reflecting the high-quality
talent pool within the Company.
Appointment process
Where the Committee’s succession planning process identifies
the requirement for a new Director – whether to replace a retiring
Director or bring in new skills, experience and knowledge to
support the Group’s development and growth ambitions – the
Committee carefully considers the competencies and attributes
of the individual required. The Committee recognises the need
for and benefits available from ensuring diversity on the Board
in all its forms, including, but not limited to, gender, social and
ethnic backgrounds, as well as cognitive and personal strengths.
These elements are considered when the Committee draws
up a role profile.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
125
The Committee will typically employ
an external search consultancy to assist
with the process of identifying suitable
candidates. Where search consultancies
are engaged, they are selected on the
basis of their independence from the
Company and individual Directors, and a
statement detailing any such connection
is published in the Annual Report.
Consultancies are tasked with creating
a list of candidates for review by the
Committee, with due regard for the need
for diversity on the Board. Following a
review of profiles, the Committee will
short list a number of candidates for
interviews with the Chairman, Senior
Independent Director, executive
management and other Board members
as appropriate. A preferred candidate
will then be identified by the Committee
which then makes a recommendation
for appointment to the Board.
Diversity
Renewi is committed to promoting
diversity and inclusion, in all its forms,
within its workforce. The Committee notes
the work of the Diversity and Inclusion
Board, which is chaired by the Chief
Financial Officer and comprises a diverse
group of Renewi colleagues who meet
regularly to discuss D&I initiatives and
plans and monitor Renewi’s progress
against targets and objectives.
To promote diversity on the Board
and within the Group, the Committee
reviewed the Board’s policy on diversity
and inclusion, which was recommended
to the Board and approved during the
year. The Board Diversity Policy sets out
its approach to achieving diversity in its
composition and is consistent with the
values we hold throughout the Group.
You can read the Renewi plc Board
Diversity Policy at renewi.com.
In 2023, the Committee evaluated the
composition of the Board regarding gender
and ethnic diversity. As of 31 March 2024,
the Board is 37.5% female, which is close
to the 40% target in the UK Listing Rules.
The role of Chief Financial Officer, one of
the four senior Board positions, is held
by a woman.
The Board acknowledges that none of
its Directors identify as ethnic minority
and during the year the Committee spent
considerable time debating whether a
change in composition was merited at
this point. It concluded that the balance
of skills, experience and knowledge
present on the Board was appropriate
at the current time and that there was no
clear gap in capability that warranted the
appointment of an additional Director.
It was agreed that when a Board vacancy
arose, or a requirement for a Director
with a new complementary skill set was
identified, the need for ethnic diversity
on the Board, alongside all other
considerations for diversity, would
be an important consideration when
identifying a suitable candidate.
The Board’s composition will remain
under review in the interests of meeting
the prescribed target by the end of 2024
or as soon as practicable thereafter. The
FCA Listing Rules prescribed tables for
reporting on gender identity or sex and
ethnic background can be found on page
102. Gender diversity in accordance with
the UK Corporate Governance Code is
detailed below.
Board gender balance
Senior management
gender balance
Senior management’s direct
reports gender balance*
Male
62.5%
37.5%
Female
Male
Female
70%
30%
Male
Female
72%
28%
Committees continued
*
Data as at 31 March 2024. The definition of ‘senior management’ for this purpose is the Executive Committee
126 Renewi plc Annual Report and Accounts 2024
Board tenure
Male
Female
Total
1-3 years
1
1
2
3-6 years
2
1
3
6-9 years
1
–
1
Background/experience of Non-Executive Directors
Male
Female
Total
Energy/chemicals
1
–
1
Politics/socioeconomics
–
1
1
Telecoms/digital
1
1
2
Transport
1
–
1
Private equity/investment
1
–
1
Nationality
Number
Board member
Dutch
5
Ben Verwaayen, Allard Castelein, Jolande Sap,
Otto de Bont, Annemieke den Otter
Belgian
2
Luc Sterckx, Katleen Vandeweyer
British
1
Neil Hartley
Board evaluation
The FY23 review of Board and Committee effectiveness as reported last year was
undertaken with the use of an externally facilitated, structured questionnaire organised
by the Company Secretary. Key findings from the FY23 review and subsequent actions
are detailed below.
Finding
Action
Development of the Renewi culture and
way of working centred around safety,
health and environmental performance
• The Board oversaw development of the
Group’s safety culture, which was closely
monitored by the SHE Committee.
See pages 110 to 111 and 117 to 118 for
further information
Wider active engagement with all
stakeholders to focus the Board
agenda and support the drive for
a circular economy
• The Board undertook a range of engagement
actions during the year, as described in the
Stakeholder engagement section on page 112
• The Board discussed the circular economy
with a representative of the EU
Broadening of Renewi’s influence
to contribute to European and UK
sustainability and climate change policy
• The Board oversaw the hire of a Chief Strategy
Officer to facilitate increased engagement at
European Union level see page 96
FY24 Board evaluation
The Committee determined that the FY24
evaluation would again be facilitated by
Gould Consulting, a specialist in the field
with whom the Board and the Group have
no other relationship. Gould Consulting
is fully compliant with the Chartered
Governance Institute’s Code of Practice
for Independent Board Reviewers, and their
methodology and approaches are in full
compliance with the FRC’s UK Corporate
Governance Code. The FY24 evaluation
consisted of a structured survey to provide
an analysis of the Directors and the
Company Secretary, providing a
comprehensive review of performance
over the year, and in comparison to FY23.
Gould Consulting reported back to the
Board that the Board’s performance,
in most areas, was operating at a good
standard, their report highlighting a few
areas only that they felt warranted more
attention. Having considered the results
and themes that emerged from the
evaluation, the Board agreed specific
FY25 action plans across three main areas:
• Exploring opportunities presented by
a simplified, more efficient Renewi
• Deeper evaluation of emerging risks and
opportunities within the circular economy
• Continued focus on the development of
Renewi’s culture and HSE performance
In respect of individual Director
performance, the Chairman provided
feedback to Directors on an individual basis,
and the Senior Independent Director sought
feedback on the Chairman’s performance.
On review of the results of the evaluation,
the Board determined that it continued
to operate effectively during the year
and that each Director had continued
to demonstrate commitment to their
role and performed capably.
The Committee evaluation results are
detailed in the relevant sections of the
Governance Report.
Nomination Committee evaluation
The evaluation of the Nomination
Committee showed that the Committee
remained effective, and that improvements
in the structure of annual work for
Committee enacted during the year would
assist the Committee going forwards.
Looking forward to FY25, the Committee
will continue to focus on succession
planning and oversight of the Group’s
policies and initiatives on diversity
and inclusion.
Ben Verwaayen
Chairman
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
127
Directors’ Remuneration Report
Directors’ Remuneration Report
On behalf of the Board, I am pleased to present
the Directors’ Remuneration Report for the year
ended 31 March 2024.
Committee membership
and FY24 Committee
meeting attendance
Neil Hartley (Chair)
4 (4)
Allard Castelein
4 (4)
Luc Sterckx
4 (4)
Bracketed figures indicate maximum potential
attendance of each Director.
Role of the Committee
• Determines the Group’s policy
on remuneration and monitors
its implementation
• Reviews and sets performance
targets for incentive plans
• Sets the remuneration of the
Group’s senior management
• Approves the specific
remuneration package for the
Chairman, each of the Executive
Directors and below-Board
members of the Executive team
• Determines the terms on which
LTIP, Deferred Annual Bonus and
Sharesave awards are made
to employees
• Determines the policy for and
scope of pension arrangements
for the Executive Directors and
below-Board members of the
Executive team
For terms of reference go to
renewi.com/remco
Neil Hartley
Chair of the
Remuneration
Committee
This report, prepared by the Remuneration Committee on behalf
of the Board, takes full account of the UK Corporate Governance
Code and the latest Investment Association (IA) Principles of
Remuneration and Institutional Shareholder Services (ISS) UK
and Ireland Proxy Voting Guidelines. It has been prepared in
accordance with the provisions of the Companies Act 2006
(the Act), the Listing Rules of the Financial Conduct Authority and
the Large and Medium-Sized Companies and Groups (Accounts
and Reports) (Amendment) Regulations 2013, the Companies
(Miscellaneous Reporting) Regulations 2018 and the Companies
(Directors’ Remuneration Policy and Directors’ Remuneration
Report) Regulations 2019. The Act requires the auditor to report
to the Group’s shareholders on the audited information within
this report and to state whether in their opinion those parts
of the report have been prepared in accordance with the Act.
The auditor’s opinion in this regard is set out on page 154 and
those aspects of the report that have been subject to audit are
clearly marked.
128 Renewi plc Annual Report and Accounts 2024
Summary
The key elements of the Directors’
Remuneration Report are outlined below.
• Annual Statement. Summarises
performance and reward in the year
ended 31 March 2024 and how the
Remuneration Policy will be operated
for the year ending 31 March 2025
• Remuneration Policy. Sets out a
summary of the Remuneration Policy
which was approved by our shareholders
at the 2023 AGM
• Annual Report on Remuneration.
Details how the Remuneration Policy
was implemented during the year ended
31 March 2024 and how the Committee
intends the Policy to apply for the year
ending 31 March 2025
Work of the Committee during FY24
The Committee met four times during
FY24 and details of members’ attendance
at meetings are shown above. The main
Committee activities during the year
(full details of which are set out in the
relevant sections of this report) included:
• agreeing the performance against the
targets and payout for the FY23 annual
bonus awards
• setting the performance targets for the
FY24 annual bonus
• agreeing the vesting levels for the 2020
LTIP awards which vested in 2023
• agreeing the award levels and
performance targets for the 2023
LTIP awards
• agreeing Executive Director base salary
increases and the Chairman’s fee from
1 April 2024
• considering regulatory/disclosure
developments and shareholder
views during FY24
• ensuring ongoing alignment on
ESG targets
In addition, the Committee has considered
how the Remuneration Policy and practices
are consistent with the six factors set out
in Provision 40 of the 2018 UK Corporate
Governance Code:
• Clarity. Our policy is well understood by
our senior team and employees more
generally and has been clearly articulated
• Simplicity. The Committee is mindful
of the need to avoid overly complex
remuneration structures which can be
misunderstood and deliver unintended
outcomes. As such, our executive
remuneration policies and practices are
as simple to communicate and operate
as possible, while ensuring that they are
aligned to our strategy
• Risk. Our Remuneration Policy is based
on: (i) a combination of both short-
and long-term incentive plans based
on financial, non-financial and share
price-linked targets; (ii) a combination
of cash and equity (in terms of both
deferred bonus and LTIP awards); and
(iii) a number of shareholder protections
(i.e. bonus deferral, shareholding
guidelines, malus/clawback provisions),
which have been designed to mitigate
the impact of inappropriate risk-taking
• Predictability. Our incentive plans are
subject to individual caps, with our share
plans also subject to market standard
dilution limits. The scenario charts in
the Remuneration Policy illustrate how
the rewards potentially receivable by
our Executive Directors vary based on
performance and share price growth
• Proportionality. There is a clear link
between individual awards, delivery of
strategy and our long-term performance.
In addition, the structure of our short-
and long-term incentives, together with
the structure of the Executive Directors’
service contracts, ensures that poor
performance is not rewarded
• Alignment to culture. Renewi’s focus on
making valuable products from waste,
meeting the growing need to deal with
waste sustainably and cost-effectively,
is fully supported through the metrics in
both the annual bonus and long-term
incentive which measure how we
perform against main KPIs that
underpin the delivery of our strategy
Committee evaluation
The Committee continued to operate
effectively during the year, with appropriate
time taken in meetings to consider whether
existing remuneration arrangements are
fair, proportionate and aligned both to
long-term business goals and external
stakeholder considerations.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
129
On behalf of the Board, I am
pleased to present the Directors’
Remuneration Report for the
year ended 31 March 2024.
I have summarised below the
key decisions the Committee
has taken during the year and
explained the context in which
they were made.
FY24 performance, decisions and
reward outcomes
FY24 annual bonus
Profit targets were not met, although
net debt/leverage targets were partially
met, contributing to the financial target
element of the bonus measures. The ESG
(safety) target was met, and personal
targets were also met. This resulted in
bonus awards of 84% of the base salaries
of the Chief Executive Officer and Chief
Financial Officer respectively. These
represented 56% of the maximum bonus
potential for the Chief Executive Officer
and Chief Financial Officer respectively.
Further details are set out on pages 140
to 141.
2021 LTIP vesting in 2024
The Long-Term Incentive Plan (LTIP)
granted in 2021 was designed to
incentivise and reward the achievement
of Earnings Per Share (EPS) growth,
Total Shareholder Return (TSR), the
recycling rate based on the Company’s
sustainability plan (recycling rate) and,
for Executive Directors only, Return
on Capital Employed (ROCE) over
the three-year performance period to
31 March 2024. The TSR target was met
and the EPS growth and ROCE targets
were partially met. The recycling target
was not met. This resulted in 52.75%
of the overall award vesting for Executive
Directors. Further details are set out on
page 142.
Use of Remuneration
Committee discretion
The Committee did not exercise discretion
on Director remuneration during the year.
Implementing the Policy for FY24
• On 1 April 2024, the Chief Executive
Officer’s and the Chief Financial
Officer’s base salaries were increased
by 5% in line with the wider workforce
rate of increase
• The Executive Directors continue to
receive a cash supplement in lieu of
pension of 12.5% of salary (in line
with the local workforce)
• The annual bonus will continue to have
a maximum opportunity of 150% of
base salary for both the Chief Executive
Officer and Chief Financial Officer.
Performance metrics will continue
to have a majority financial weighting
and will be disclosed retrospectively
following the end of the financial year
• LTIP grants for Executive Directors will
continue to be set at levels no greater
than the equivalent value of 150% and
120% of the base salaries of the Chief
Executive Officer and Chief Financial
Officer respectively. Performance
metrics will continue to be based
on EPS, ROCE, relative TSR and a key
sustainability measure
• Non-Executive Director base fees were
increased by 4%. There was no increase
to the Chairman’s fee
Looking forward
At the 2023 AGM, the Annual Statement
and Annual Report on Remuneration
received the support of 97.21% of votes
cast, and the Directors’ Remuneration
Policy 97.59%. The Committee would like
to thank shareholders for their continued
support and asks that they similarly
support the 2024 Directors’ Remuneration
Report Resolution.
Neil Hartley
Chair of the Remuneration Committee
30 May 2024
Directors’ Remuneration Report continued
Annual Statement
130 Renewi plc Annual Report and Accounts 2024
Directors’ Remuneration Policy
The principal objective of the
Remuneration Committee is to design
and implement a Remuneration Policy
that promotes the long-term success of
the Company. The Committee seeks
to ensure that the senior executives are
fairly rewarded in light of the Group’s
performance, taking into account all
Operation
Opportunity
Performance metrics
BASE SALARY: To pay a competitive basic salary to attract, retain and motivate the talent required to operate and develop the
Group’s businesses
Base salaries are generally reviewed on
an annual basis or following a significant
change in responsibilities.
Salary levels are reviewed by reference to
companies of similar size and complexity
within the UK and Continental Europe
reflecting Renewi’s growing presence across
Europe. The Committee also has regard to
individual and Group performance and
changes to pay levels across the Group.
For Executive Directors, it is anticipated that
salary increases will normally be in line with
those of salaried employees as a whole.
In exceptional circumstances (including,
but not limited to, a material increase in
job size or complexity or a material market
misalignment), the Committee has discretion
to make appropriate adjustments to
salary levels to ensure they remain
market-competitive.
None.
PENSION: To provide an opportunity for executives to build up a provision for income on retirement
Executive Directors may receive a pension
contribution or cash allowance in lieu
of pension.
A maximum employer contribution of
12.5% of basic salary in line with the
local workforce rate.
The Committee reserves the discretion to
review this rate in line with movements to
the workforce rate.
None.
BENEFITS: To provide market-competitive benefits
Benefits include life assurance, medical
insurance, tax advisory services, income
protection and car/travel allowances.
Executive Directors are also eligible to
participate in Renewi’s Working from Home
policy which provides a nominal allowance
per day.
Executive Directors may also be eligible to
any new benefit introduced for the wider
employee workforce in their local market.
There is no defined maximum. Benefits
are set at reasonable levels in order to be
market competitive for the relevant local
jurisdiction and are dependent on
individual circumstances.
The Committee retains discretion
to approve additional benefits
in exceptional circumstances
(e.g. relocation or expatriation).
None.
ALL-EMPLOYEE SHARE SCHEMES: To encourage Group-wide share ownership
Executive Directors may participate in
all-employee share scheme arrangements
on the same terms offered to employees.
The maximum opportunity will not
exceed the relevant jurisdictional limits,
where applicable.
None.
elements of their remuneration package.
A significant proportion of executive
remuneration is performance-related,
comprising an annual bonus and a
Long-Term Incentive Plan. The fixed
proportion of remuneration comprises
basic salary, benefits and a payment in
lieu of pension.
Policy scope
The Policy applies to the Chairman, Executive
Directors and Non-Executive Directors.
The Policy was approved at the 2023 AGM
and will apply for a maximum of three
years until the AGM in 2026.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
131
Directors’ Remuneration Report continued
Operation
Opportunity
Performance metrics
ANNUAL BONUS: To motivate senior executives to maximise short-term performance and help drive initiatives that support
long-term value creation
Performance measures, targets and weightings are set
at the start of the year. The maximum bonus is payable
only if all performance targets are met in full.
50% of any bonus is awarded in shares, with half vesting
immediately and the other half deferred into an award
over Renewi plc ordinary shares which vests after
three years.
Dividend equivalents may accrue over the relevant
vesting period of deferred share awards to the extent
awards vest.
Malus & clawback:
The Committee may at its discretion not pay bonuses/
reduce deferred share awards and/or recover bonuses
which have been paid or shares which have vested
under deferred share awards in the following
circumstances: misstatement of the Company’s
financial results, an error in calculating the vesting
result, misconduct, material corporate failure, material
risk management failure, serious reputational damage
or material loss caused by the participant’s actions.
150% of salary.
Executive Director performance is
assessed by the Committee on an annual
basis by reference to Group financial
performance (e.g., profit or cash flow
measures) (majority weighting) and the
achievement of personal or strategic
objectives (minority weighting).
Bonus targets are generally calibrated
with reference to the Group’s budget for
the year.
The Committee has the discretion to
adjust the formulaic bonus outcomes
both upwards (within the plan limits) and
downwards, to ensure that payments are
a true reflection of performance over the
performance period, e.g. in the event of
unforeseen circumstances outside
management control.
LONG-TERM INCENTIVE PLAN (LTIP): To motivate and retain senior executives and managers to deliver the Group’s strategy and
long-term goals and to help align executive and shareholder interests
Executive Directors and senior employees may
be granted awards annually, as determined by the
Committee. The vesting of these awards is subject
to the attainment of performance conditions.
Awards are in the form of Renewi plc ordinary shares.
Dividend equivalents may accrue over the vesting
period to the extent that awards vest.
Awards made under the LTIP have a performance and
vesting period of at least three years. If no entitlement
has been earned at the end of the relevant performance
period, then the awards will lapse. A two-year post-
vesting holding period applies to LTIP awards granted
to Executive Directors.
Malus & clawback:
The Committee may at its discretion decide that
LTIP awards are reduced and/or clawback vested LTIP
awards in the following circumstances: misstatement of
the Company’s financial results, an error in calculating
the vesting result, misconduct, material corporate
failure, material risk management failure, serious
reputational damage or material loss caused by
the participant’s actions.
150% of salary.
Vesting of LTIP awards will be subject to
continued employment and financial,
strategic, environmental and/or share
price-related performance targets
measured over a period of at least
three years.
In addition to the Group achieving
the financial/share price targets, the
Committee must satisfy itself that the
recorded outcome is a fair reflection of
the underlying performance of the Group.
Threshold performance will result in
vesting of no more than 25% of maximum
under each element.
The Committee has discretion (within
the limits of the scheme) to adjust the
formulaic performance outcomes to
ensure that payments fairly reflect
underlying performance over the period.
Adjustments may be upwards (subject to
a maximum of 100%) or downwards.
132 Renewi plc Annual Report and Accounts 2024
Operation
Opportunity
Performance metrics
SHAREHOLDING GUIDELINES: To align executive and shareholder interests
The Committee recognises the importance
of Executive Directors aligning their interests
with shareholders through building up
significant shareholdings in the Group.
Executive Directors are required to retain
100% (net of tax) of any LTIP, annual bonus
awarded in shares which vest immediately
and deferred bonus shares acquired on
vesting (net of tax) until they reach the
ownership guideline.
In employment:
200% of salary.
Post employment:
200% of salary up until the second
anniversary of cessation.
Own shares purchased, shares acquired
through buyout awards and share awards
granted prior to the 2020 AGM will be excluded
from the post-employment guideline.
None.
Notes to the policy table
Use of discretion
The Committee may apply discretion as
detailed below. Under each element of
remuneration, a full description of how
discretion can be applied is set out in
line with UK reporting requirements.
To ensure fairness and align executive
remuneration with individual and
underlying Company performance
the Committee may adjust up or down
(including to zero) the outcome of the
annual bonus and LTIP or the performance
measures of inflight awards under either
plan. Any adjustments in light of ‘non-
regular events’ (including, but not limited
to, corporate events (including Rights
Issues), changes in the Group’s accounting
policies, minor or administrative matters,
internal promotions, external recruitment
and terminations of employment) are
expected to be made on a ‘neutral’ basis
– i.e., adjustments will be designed so
that the event is not expected to be to
the benefit or the detriment of participants.
Adjustments to incentives to ensure that
outcomes reflect underlying performance
may be made in exceptional circumstances
to help ensure outcomes are fair to
shareholders and participants.
Performance measurement selection
The measures used in the annual bonus
are selected annually to reflect the Group’s
main business and strategic priorities for
the year and capture both financial and
non-financial objectives. Group financial
performance targets relating to the annual
bonus plan are based around the Group’s
annual budget, which is reviewed and
approved by the Board prior to the start
of each financial year. Underlying profit
before tax and cash-related targets
are typically used as the key financial
performance measures in the annual
bonus plan because they are clear and well
understood measures of Group performance.
Performance targets are reviewed annually
and set to be stretching and achievable,
taking into account the Group’s resources,
strategic priorities and the economic
environment in which the Group operates.
Targets are set taking into account a range
of internal and external reference points,
including the Group’s strategic plan and
broker forecasts for both the Group and
sector peers. The Committee believes that
the performance targets are stretching,
and that to achieve maximum outcomes
requires truly outstanding performance.
The Committee considers the
combination of three-year EPS growth,
ROCE improvement, share price growth
and ESG (recycling rate) target to be key
indicators of long-term success for the
Group. These measures are transparent,
visible and motivational to participants,
balance growth and returns, and provide
good line-of-sight for executives and
alignment with shareholders.
Remuneration policy for our
senior leaders
The Group’s approach to annual salary
reviews is broadly consistent across the
Group, with consideration given to the
scope of the role, level of experience,
responsibility, individual performance
and pay levels for comparable roles in
comparable companies. The broader
Remuneration Policy across the Group
is also consistent with that set out in
this report for the Executive Directors. For
example, remuneration is linked to Group
and individual performance in a way that is
ultimately aimed at reinforcing the delivery
of shareholder value. Senior employees
generally participate in an annual bonus
scheme with a similar structure to that
described for the Executive Directors.
Opportunities and specific performance
conditions vary by organisational level,
with business area specific metrics
incorporated where appropriate. Members
of the Executive Committee and other
senior managers may participate in the
LTIP on a similar basis to but at lower levels
than Executive Directors. Such awards may
be on the same terms as those granted to
Executive Directors or they may differ in
respect of vesting periods, holding periods
and performance targets (i.e., the targets
used and/or whether performance targets
apply for some or all of the awards). All UK
employees are eligible to participate in the
Sharesave Scheme on the same terms
although other all-employee share
arrangements may be introduced
if considered appropriate.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
133
Approach to
recruitment remuneration
External appointments
In the cases of hiring or appointing a
new Executive Director, the Committee
may make use of any of the existing
components of remuneration, as described
in the Policy Table. The maximum limits
for variable pay (excluding buyouts) will
be as for existing Executive Directors.
In determining the appropriate
remuneration for a new Executive
Director, the Committee will take into
consideration all relevant factors
(including the overall quantum and
nature of remuneration, and the
jurisdiction from which the candidate is
being recruited) to ensure that all such
arrangements are in the best interests
of Renewi and its shareholders.
The Committee may also make an award
in respect of a new appointment to buy
out remuneration arrangements forgone
on leaving a previous employer on a
comparable basis, in addition to providing
the normal remuneration elements. In
constructing a buyout, the Committee
will consider all relevant factors including
time to vesting, any performance
conditions attached to awards, and the
likelihood of those conditions being met.
Any such buyout awards will typically
be made under the existing annual
bonus and LTIP schemes, although the
Committee may exercise the discretion
available under the FCA Listing Rule 9.4.2
R to make awards using a different
structure. Any buy-out awards would
normally have a fair value no higher than
that of the awards forgone and would
normally be payable no earlier.
Internal appointments
In cases of appointing a new Executive
Director by way of internal promotion, the
Committee will determine remuneration
in line with the policy for external
appointees. Where an individual has
contractual commitments made prior
to promotion to the Board, the Group
will continue to honour these. Incentive
opportunities for below Board employees
are typically no higher than for Executive
Directors, but measures may vary to
ensure they are relevant to the role.
Non-Executive Director recruitment
In recruiting a new Non-Executive
Director, the Committee will use the policy
as described in the Policy Table. A base
fee in line with the prevailing rate for
Board membership would be payable,
with additional fees payable for acting
as Senior Independent Director or Chair
of a Committee, as appropriate.
Service contracts and exit
payment policy
Executive Director service contracts,
including arrangements for early
termination, are carefully considered
by the Committee. The Committee has
agreed that the policy concerning the
notice period for Executive Directors is
one year’s written notice from the Group
(or less if required by local employment
law) and one year’s notice from the
individual (or less if required by local
employment law). The contracts provide
for an obligation to pay salary plus
contractual benefits for any portion of the
notice period waived by the Group where
permitted by local employment law. The
Group has the ability to pay such sums
in instalments, requiring the Director to
mitigate loss (for example, by gaining new
employment) over the relevant period.
Executive Director
Effective date of
service contract
Notice period
(Company)
Notice period
(individual)
Otto de Bont
1 April 2019
12 months
6 months*
Annemieke den Otter
1 April 2022
12 months
6 months*
*
Both Executive Directors are Dutch residents and Dutch law limits the maximum notice they can be required
to provide.
If employment is terminated by the Group,
the departing Executive Director may
have a legal entitlement (under statute
or otherwise) to certain payments, which
would be met. In addition, the Committee
retains discretion to settle any other
amounts reasonably due to the Executive
Director, for example to meet the legal
fees incurred by the Executive Director
in connection with the termination of
employment, where the Group wishes
to enter into a settlement agreement
(as provided for below) and the individual
must seek independent legal advice.
In certain circumstances, the
Committee may approve new contractual
arrangements with departing Executive
Directors including (but not limited to)
settlement, confidentiality, restrictive
covenants and/or consultancy
arrangements. These will be used
sparingly and only entered into where
the Committee believes that it is in the
best interests of the Group and its
shareholders to do so.
When considering exit payments, the
Committee reviews all potential incentive
outcomes to ensure they are fair to both
shareholders and participants. The table
on the following page summarises how
the awards under the annual bonus and
LTIP are typically treated in different
circumstances, with the final
treatment remaining subject to
the Committee’s discretion.
Directors’ Remuneration Report continued
134 Renewi plc Annual Report and Accounts 2024
Pay scenario charts
The charts below provide an estimate of the potential future reward opportunities for the Executive Directors, and the potential split
between the different elements of remuneration under four different performance scenarios: Minimum, Target, Maximum and Maximum
with share price growth. Potential reward opportunities are based on the Remuneration Policy, applied to basic salaries as at 1 April 2024.
The projected values exclude the impact of any dividends.
Notes
• The Minimum scenario shows basic salary, pension and estimated benefits (i.e. fixed remuneration)
• These are the only elements of the Executive Directors’ remuneration packages that are not at risk
• The Target scenario reflects fixed remuneration as above, plus a target bonus of up to 80% of maximum and threshold LTIP vesting of 25%
• The Maximum scenario reflects fixed remuneration plus full payout of all incentives based on the normal bonus maximum and LTIP
grant policy
• The Maximum with share price growth scenario is as per Maximum but with a 50% share price growth assumption
Maximum with
share price growth
Maximum
Target
Minimum
500
1,000
1,500
2,000
2,500
3,000
0
36%
2,355
28%
14%
1,549
42%
100%
658
44%
36%
31%
24%
31%
15%
2,780
Fixed pay
Maximum with
share price growth
Maximum
Annual bonus
LTIP
Share price growth
Target
Minimum
500
1,000
1,500
2,000
2,500
3,000
0
39%
1,849
30%
11%
1,272
44%
100%
552
45%
31%
34%
26%
27%
13%
2,137
Chief Executive Officer (€000)
Chief Financial Officer (€000)
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
135
Directors’ Remuneration Report continued
Treatment of awards on exit
Scenario
Timing of vesting
Treatment of awards
Annual Cash Bonus
‘Good leaver’ – i.e., ill-health, disability,
death, retirement (with Group consent)
or any other reasons the Committee may
determine in its absolute discretion.
Normal payment date, although the
Committee has discretion to accelerate.
Cash bonuses will only be paid to the
extent that Group and personal
objectives set at the beginning of the year
have been achieved. Any resulting bonus
will generally be pro-rated for time served
during the year.
Change of control.
Immediately.
Performance against targets will be
assessed at the point of change of control
and any resulting bonus will generally be
pro-rated for time served.
Any other reason.
Not applicable.
No bonus is paid.
Deferred Annual Bonus (DAB)
‘Good leaver’ – i.e., ill-health, disability,
death, retirement (with Group consent)
or any other reasons the Committee may
determine in its absolute discretion.
Normal payment date, although the
Committee has discretion to accelerate.
Any outstanding DAB awards will
generally be pro-rated for time served.
Change of control.
Immediately.
Any outstanding DAB awards will
generally be pro-rated for time served.
In the event of a change of control,
awards may alternatively be exchanged
for new equivalent awards in the acquirer
where appropriate.
Any other reason.
Not applicable.
Awards lapse.
Long-Term Incentive Plan (LTIP)
‘Good leaver’ – i.e., ill-health, disability,
death, retirement (with Group consent)
or any other reasons the Committee may
determine in its absolute discretion.
Normal vesting date, although the
Committee has discretion to accelerate.
Any outstanding LTIP awards will
generally be pro-rated for time
served and performance, subject
to the Committee’s discretion.
Change of control.
Immediately.
Any outstanding LTIP awards will
generally be pro-rated for time
served and performance, subject
to the Committee’s discretion. In the
event of a change of control, awards
may alternatively be exchanged for
new equivalent awards in the acquirer
where appropriate.
Any other reason.
Not applicable.
Awards lapse.
Non-Executive Directors
The Non-Executive Directors do not have service contracts
as their terms of engagement are governed by letters of
appointment. These letters and the Company’s Articles of
Association make provision for annual renewal at each AGM.
Details of the Non-Executive Directors’ terms of appointment
are shown in the table opposite. The appointment and
re-appointment and the remuneration of Non-Executive
Directors are matters reserved for the full Board.
The Non-Executive Directors are not eligible to participate in the
Group’s performance-related incentive plans and do not receive
any pension contributions.
Non-Executive Director
Initial agreement date
Renewal date
Ben Verwaayen (Chairman)
8 March 2020
1 August 2024
Allard Castelein
10 November 2016
1 August 2024
Jolande Sap
13 March 2018
1 August 2024
Luc Sterckx
3 August 2017
1 August 2024
Neil Hartley
17 January 2019
1 August 2024
Katleen Vandeweyer
12 October 2022
1 August 2024
Non-Executive Directors’ fees are capped in the Company’s Articles of Association at
an aggregate of £750,000.
136 Renewi plc Annual Report and Accounts 2024
Details of policy on fees paid to Non-Executive Directors are set out in the table below:
Objective
Operation
Opportunity
Performance metrics
To attract
and retain
Non- Executive
Directors of the
highest calibre
with broad
commercial
and other
experience
relevant to
the Group.
Fee levels are reviewed annually, with any adjustments effective
on 1 April each year.
The fee paid to the Chairman is determined by the Committee
and fees to Non-Executive Directors are determined by the Board.
Additional fees are payable for additional responsibilities – e.g.,
acting as Senior Independent Director and as Chair of the Board’s
Committees and subsidiary company Supervisory Boards.
Fee levels are reviewed by reference to companies of similar size
and complexity within the UK and Continental Europe reflecting
Renewi’s growing presence across Europe. The required time
commitment and responsibilities are taken into account when
reviewing fee levels. As such, the Committee reserves the
flexibility to pay additional fees in the event that a Director’s
expected time commitment is significantly exceeded in any year.
Non-Executive Directors may receive benefits necessary to carry
out their duties (including travel and office support, together
with any associated tax liability that may arise).
Non-Executive Director fee
increases are applied in line with
the outcome of the review. Fees in
respect of the year under review,
and for the following year, are
disclosed in the Annual Report
on Remuneration.
It is expected that any increases to
Non-Executive Director fees will
normally be in line with those for
salaried employees. However, in
the event that there is a material
misalignment with the market or
a change in the complexity,
responsibility or time commitment
required to fulfil a Non-Executive
Director role, the Board has
discretion to make an appropriate
adjustment to the fee level.
None.
External appointments
The Committee acknowledges that
Executive Directors may be invited
to join Supervisory Boards or become
non-executive directors of other quoted
companies which have no business
relationship with the Group and that these
duties can broaden their experience and
knowledge to the benefit of the Group.
Executive Directors are limited to holding
one such position, and the policy is that
fees may be retained by the Director,
reflecting the personal risk assumed in
such appointments. The Chief Financial
Officer, Annemieke den Otter, holds one
such position. Her Supervisory Board
directorship of ForFarmers N.V attracts
an annualised fee of €52,000.
Consideration of conditions elsewhere
in the Group
Although the Committee does not consult
directly with employees on Executive
Remuneration Policy, the Committee does
consider general basic salary increases
across the Group, remuneration
arrangements and employment conditions
for the broader employee population when
determining Remuneration Policy for the
Executive Directors. In compliance with the
2018 UK Corporate Governance Code,
Jolande Sap is the designated Non-
Executive Director with the responsibility of
assisting the Board with workforce
engagement and reporting.
Consideration of shareholder views
When determining executives’
remuneration, the Committee takes into
account views of shareholders and best
practice guidelines issued by institutional
shareholder bodies. The Committee seeks
feedback from shareholders on Remuneration
Policy and arrangements and commits to
undergoing shareholder consultation in
advance of any significant Remuneration
Policy changes. The Committee will
continue to monitor trends and
developments in corporate governance
and market practice to ensure that the
structure of the executive remuneration
remains appropriate. Further details
of the votes received in relation to last
year’s Remuneration Report and the 2023
Remuneration Policy are provided below:
Annual Report on Remuneration
2023 AGM
Remuneration Policy
2023 AGM
Total number
of votes
% of votes cast
Total number
of votes
% of votes cast
For (including discretionary)
46,230,111
97.21%
46,585,909
97.59%
Against
1,326,101
2.79%
1,152,177
2.41%
Total votes cast (excluding withheld votes)
47,556,212
100%
47,738,086
100%
Votes withheld
197,932
–
16,058
–
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
137
Directors’ Remuneration Report continued
Annual Report on Remuneration
The following section provides details of how our Remuneration
Policy will be implemented during the year ending 31 March 2025
and how it was implemented during the financial year ended
31 March 2024.
Implementation of Remuneration Policy for FY25
Basic salary
Based on market data as sourced from KornFerry, as in prior
years, the Company awarded a single average workforce salary
increase of c.5% for all countries. In recent years, the Executive
Directors’ annualised basic salaries have been increased in line
with that of the general workforce. The Committee has decided
to increase the CEO’s and CFO’s salary by 5% to €565,683 and
€480,480 respectively. It is the Committee’s intention that both
Executive Directors will continue to receive salary increases in
2025 that are in line with the workforce average.
1 April 2023
1 April 2024
% increase
Otto de Bont
€538,746
€565,683
5%
Annemieke den Otter
€457,600
€480,480
5%
Pension
Executive Directors will continue to receive a cash supplement in
lieu of pension of 12.5% of salary in line with the local workforce.
Chairman and Non-Executive Director fees
Non-Executive Director base fees and Committee Chair fees
were increased on 1 April 2024 in line with the average increase
applied to the Executive Committee, this being less than the
average workforce rate of increase. The Group Chairman
elected to waive any fee increase.
Base fees
Fee from 1 April
2023
Fee from 1 April
2024
% increase
Chairman
£160,429
£160,429
0%
Non-Executive Director
£56,542
£58,804
4%
Chair fee for Audit/
Remuneration/SHE
Committees
£10,012
£10,412
4%
Senior Independent
Director additional fee
£10,012
£10,412
4%
Annual bonus
The maximum annual bonus for Executive Directors for FY25 will
remain unchanged at 150% of salary with 50% payable in shares,
with half of those vesting immediately and the other half after
three years. The majority of the bonus will be based by reference
to Group financial performance and the remainder on the
achievement of personal or strategic objectives including
ESG-related targets as indicated below.
The specific targets are deemed to be commercially sensitive
but will be disclosed retrospectively in the FY25 Annual Report.
Bonus targets
Weighting
Performance targets
Underlying profit
before tax
40%
Based on performance against
expected budget outcome
Leverage Ratio
20%
Based on net debt to EBITDA
covenant level
Safety
15%
Reduction in long-term injury
frequency rate
Personal
objectives
25%
Linked to strategic goals and
operational performance
LTIP
LTIP awards for 2024 will be considered at the time of grant
over shares equal in value to no more than 150% of salary for the
Chief Executive Officer and 120% of salary for the Chief Financial
Officer. The performance conditions will continue to be based on
EPS, ROCE, relative TSR and the Group’s recycling rate or other
sustainability metric as the Committee may deem appropriate as
follows (final targets/details of which will be disclosed at time
of grant):
Performance metric
Weighting
Performance targets
EPS
25%
25% of this part of an award vests
for EPS growth
ROCE
25%
25% of this part of an award vests
for an improvement in ROCE
Relative TSR
25%
25% of this part of an award vests
for TSR
Recycling rate/
sustainability
metric
25%
25% of this part of an award vests
subject to an increase in recycling
rate/ performance improvement
For any shares to vest, the Committee will also need to satisfy
itself that the recorded outcome is a fair reflection of the overall
performance of the Group over the period. Awards will vest on
the third anniversary of grant and will be subject to a further
two-year holding period.
138 Renewi plc Annual Report and Accounts 2024
Single total figure of remuneration for Non-Executive Directors (audited)
The table below sets out a single figure for the total remuneration received by each Non-Executive Director for the year ended 31 March
2024 and the prior year.
Base fee
Additional fees
Total fixed remuneration1
Base fees
FY23
€000
FY24
€000
FY23
€000
FY24
€000
FY23
€000
FY24
€000
Ben Verwaayen (Chairman)
184
185
–
–
184
185
Allard Castelein2
61
65
8
12
69
77
Luc Sterckx3
61
65
11
12
72
77
Katleen Vandeweyer4
20
65
4
12
24
77
Jolande Sap
61
65
–
–
61
65
Neil Hartley5
61
65
15
12
76
77
Former Directors
Marina Wyatt6
20
–
4
–
24
–
1. Non-Executive Directors receive fixed remuneration only (i.e. no variable remuneration is payable or has been paid).
2. Allard Castelein’s additional fee is in respect of his role as Senior Independent Director.
3. Luc Sterckx’s additional fee is in respect of his role as Chair of the SHE Committee.
4. Katleen Vandeweyer was appointed to the Board on 1 December 2022 and her additional fee is in respect of her role as the Chair of the Audit Committee.
5. Neil Hartley’s additional fee is in respect of his role as the Chair of the Remuneration Committee, and in FY23 also for his role as Chair of the Audit Committee for the four-month
interregnum between Marina Wyatt’s departure and Katleen Vandeweyer’s appointment.
6. Marina Wyatt stepped down from the Board and as Chair of the Audit Committee on 14 July 2022.
7. At an exchange rate of €1:£0.870 for FY23 and €1:£0.866 for FY24.
Single total figure of remuneration for Executive Directors (audited)
The table below sets out a single figure for the total remuneration received by each Executive Director for the year ended 31 March 2024
and the prior year.
Otto de Bont
Annemieke den Otter1
Base fees
FY23
€000
FY24
€000
FY23
€000
FY24
€000
Basic salary
499
539
367
458
Taxable benefits2
20
22
8
11
Pension3
62
67
46
57
Other4
12
16
11
15
Total fixed remuneration
593
644
432
541
Single-year variable5
574
453
433
384
Multiple-year variable6,7,8
1,347
420
–
–
Total variable remuneration
1,921
873
433
384
Total
2,514
1,517
865
925
1. Annemieke den Otter was appointed to the Board on 1 June 2022.
2. Taxable benefits comprise car allowance and medical insurance.
3. Cash supplement in lieu of pension contribution of 12.5% of base salary.
4. Includes life assurance and accident insurance.
5. Payment for performance during the year under the annual bonus including any
deferred annual bonus.
6. The value of the 2020 LTIP award vesting to Otto de Bont in FY23 shown was
based on 100% vesting and a three-month share price to 31 March 2023 of £6.50
(no dividend equivalent shares). The actual total value of this award at vest was
£885,156. Under this grant, 180,322 shares were awarded at £2.58 per share, a
performance of 96.25% was achieved, which resulted in 179,560 shares vesting at
£5.10 per share. Share price appreciation was £2.52 per share, or £452,491 in total.
7. The value of the 2021 LTIP award vesting to Otto de Bont in FY24 applies a
performance of 52.75% (no dividend equivalent shares). The average share price
over the three-months to 31 March 2024 was £5.83. The share price at grant was
£5.24. The estimated impact of share price movements on the vesting of the 2021
LTIP awards is as follows:
Otto de Bont
Shares granted
118,131
Value of awards expected to vest
(118,131 shares granted x £5.83 x 52.75% vesting)
£363,291
Face value at grant of proportion of awards expected to vest
(118,131 shares granted x £5.24 x 52.75% vesting)
£326,526
Impact of share price movement on vesting value
£36,765
The value of the 2021 LTIP vest shown at an exchange rate of €1: £0.866.
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
139
Directors’ Remuneration Report continued
Incentive outcomes for the year ended 31 March 2024
Performance-related annual bonus in respect of FY24 performance
The annual bonus was measured against underlying profit before tax (40% weighting), net debt/EBITDA leverage ratio (20% weighting),
ESG (safety) performance (15% weighting) and the achievement of personal objectives (25% weighting). Actual performance against
the targets set for each of these elements is shown below.
Financial element outcomes
The financial targets and corresponding potential outcomes for the Executive Directors’ FY24 annual bonus are shown below.
Measure
Weighting
FY24 final
outcome
Threshold
Maximum
Actual bonus payout
(% of max)
Underlying profit before tax
40%
€66.5m
€72.1m
€88.1m
0%
Leverage ratio
20%
2.14x
2.4x
<2.10%
80%
Underlying profit before tax is set based on the Group’s expected budget outcome for the year. All non-Euro-denominated entity values
are converted to Euros at the budgeted rate of exchange and actual performance is also measured at this constant exchange rate.
The leverage ratio is based on the net debt to EBITDA covenant level as determined in the main banking facilities.
ESG element outcomes
As safety is the Group’s first value and priority a collective safety target is included as part of the annual bonus targets. This includes
a goal to reduce significant incidents. The safety target of LTIFR (lost time injury rate) was set at 7 for FY24, and 6.8 was acheived, which
means that this element was met in full.
Personal element outcomes
The personal performance measures were based on individual objectives, as detailed below.
Otto de Bont
Objective
Weighting
Committee assessment of performance
Score
Safety & environmental compliance
• Safety: pro-active measures and enforcement to drive
Safety culture
• ISRS: 80% actions implemented from 2022 action plan
for divisions including roll-out of hall and site traffic
safety plans and safety leadership programme,
combined with consistent enforcement of rules and
standards. Overarching goal is to build a safety culture
Environmental compliance
• Target zero major new incidents and a
non-conformities close out rate of >80%
6.25%
The Committee considered that management had adopted an
appropriately pro-active programme for driving the Safety culture across
the Group. The ISRS programme had been rolled out across the business,
and each division had implemented agreed actions as defined end of
2022. Site traffic safety had also been appropriately addressed and
safety leadership had been rolled out with over 200 leaders trained,
and a with training programmes continuing into FY25. With respect to
environmental compliance there had been no major incidents in FY24,
and an environmental compliance non-conformities close out rate of
>80% met. The objective was considered achieved.
100%
Strategy development
• Further develop and execute the Roadmap
FY28 strategy
6.25%
The Committee considered the development of strategy over the year.
It was noted that the growth strategy and associated projects had been
clearly communicated to the market at the October Capital Markets Day.
Sales share gain and margin improvement programmes had been
successfully delivered in year. Furthermore, the sustainability roadmap
had been fully integrated into the strategy, carbon reduction plans
refined and sustainability reporting improved with preparations for
CSRD compliance in action. On this basis, the Committee considered
this element met.
100%
Portfolio
• Actively manage business portfolio to optimise value
for our shareholders and drive efficiencies within
our organisation
• Develop strategic options for our UK Municipal business
6.25%
The Committee reviewed the work undertaken to manage the bushiness
portfolio and drive efficiencies. The performance of Mineralz & Water had
been addressed, and was on track delivering a profitability improvement.
The strategic review of UK Municipal had been progressed as publicly
disclosed to the markets, and the Future Fit project would position the
Group well for future success. In view of the significant work undertaken
in this respect, the Committee confirmed the objective as achieved.
100%
140 Renewi plc Annual Report and Accounts 2024
Objective
Weighting
Committee assessment of performance
Score
Talent management
• Create solid succession planning process across
Renewi and increase bench strength
• Recruit top talent for key positions and redefine
way Renewi does recruitment making it uniform
and professional
6.25%
In review of succession planning the Committee noted that significant work
had been achieved in strengthening the pipeline. A new Executive Leadership
Team had been composed for FY25 which would combine talented internal
promotions with strategic new hires. Top talent for key positions had been
recruited with gender diversity in the most senior roles improved. The objective
was considered met.
100%
Total
25%
100%
Annemieke den Otter
Objective
Weighting
Committee assessment of performance
Score
Address UK Municipal
• Develop strategic options for our UK
Municipal business
5%
The Committee noted the volume of work and strategic focus which had
been demanded by the evaluation of options for the UK Municipal business.
The strategic review of UK Municipal had been progressed as publicly disclosed
to the markets, in view of these matters the Committee considered the objective
met in full.
100%
Execute on the digital core programme
• Execute on blueprint phase and deliver
business case for Broad approval in Q3 of FY24
5%
The Committee reviewed the business case as presented to the Board which
had been based on sound objectives and for which Board approval had been
achieved. Proposals were being actioned and Digital Core would deliver
operational efficiencies and cost savings over time, as well as addressing
some risk associated with the IT infrastructure. This element was considered
met in full.
100%
Bring procurement function to a higher level
• Strengthen the Procurement function
• Increase cooperation and alignment with
divisions and together drive cost out of
the business, targeting in FY24
5%
The Committee considered the analysis that had been conducted to identify
weaknesses in the composition, structure and activity of the Procurement
Function. Remedial plans to upgrade the business contribution of the function
had been activated. The Committee considered the objective met.
100%
Further develop the roadmap FY28 strategy
• In FY24 lay the foundation to deliver on the FY28
strategy with a solid organic growth plan, a clear
plan to reduce SG&A and further streamline and
digitise business
5%
The Committee noted the significant work that had been achieved in developing
the Group strategy, commencing with the objectives communicated to the market
at the October Capital markets day, and continuing with significant steps in both
underpinning of growth pillars and margin improvement initiatives including
SG&A, Digital Core and Future Fit. Sustainability data and processes had been
addressed to improve insights into business performance. The objective was
considered met.
100%
Team and people: talent management
& engagement
• Create solid succession planning process across
Renewi and increase bench strength
• Recruit top talent for key positions
• Engagement: Pulse score improvement related
to mood and eNPS scores
5%
The Committee noted the improvements to succession planning within the
Group with bench strength for key roles. A number of senior recruitments had
been made into the finance function, which had both strengthened the function
and improved gender diversity within the most senior key finance positions.
The Committee considered the Pulse scores related to mood and eNPS scores,
and considered the objectives met and noted the outcome accordingly.
100%
Total
25%
100%
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Renewi plc Annual Report and Accounts 2024
141
Directors’ Remuneration Report continued
FY24 annual bonus
Profit targets were not met, although net debt/leverage targets were partially met, contributing to the financial target element of the
bonus measures. The ESG (safety) target was met, and personal targets were also met. This resulted in bonus awards of 56% of the
maximum bonus potential for the Chief Executive Officer and Chief Financial Officer respectively. The Committee is satisfied that
these outcomes are a fair reflection of the performance achieved over the year and the experience of the Group’s shareholders and
other stakeholders.
Overall bonus outcomes
Executive Director
Financial element bonus
outcome (% of total)
Safety element bonus
outcome (% of total)
Personal element bonus
outcome (% of total)
Overall bonus outcome
(% of salary/€)
Otto de Bont
16%
15%
25%
84%/€452,547
Annemieke den Otter
16%
15%
25%
84%/€384,384
50% of the bonus will be payable in cash and the other 50% will be deferred into Renewi shares. 50% of these shares will vest immediately whilst the remaining 50% will vest
after a further three-year holding period.
2021 LTIP vesting in 2024
Otto de Bont holds an LTIP award over 118,131 shares made on 23 July 2021 which will vest in 2024 based on three-year performance
to 31 March 2024. Vesting is dependent on three-year adjusted underlying EPS, relative share price performance (against the FTSE 250
excluding investment trusts), ROCE and performance against the Group’s waste recycling target. The vesting schedules, targets and the
performance against targets are set out below.
Measure
Weighting
Targets
Actual % performance
Of this part of award (% of maximum)
EPS CAGR
25%
0% vesting below 5% p.a.
8.2%
41%
25% vesting for 5% p.a.
(10.25%)
50% vesting for 10% p.a.
100% vesting for 15% p.a.
Straight-line vesting between these points
Relative TSR
25%
0% vesting below median
upper quartile
100%
25% vesting for median
(25%)
100% vesting for upper quartile
Straight-line vesting between these points
Improvement in ROCE
25%
0% vesting below +0.5%
1.4%
70%
25% vesting for +0.5%
(17.5%)
100% vesting for +2.0%
Straight-line vesting between these points
Recycling rate
25%
0% vesting for a recycling rate below 70%
68.6%
0%
25% vesting for a 70% recycling rate
(0%)
100% vesting for a 73% recycling rate
Straight-line vesting between these points
Total vesting
52.75%
Share price growth is calculated using three-month average share prices immediately prior to the start and end of the performance period.
Based on the above, the vesting of the 2021 LTIP in July 2024 for Otto de Bont will be:
Executive Director
Awards granted
Shares vesting based
on performance
Dividend equivalent
shares (estimated)
Total shares expected
to vest
Estimated value
at vesting (€’000)1
Otto de Bont
118,131
62,314
-
62,314
420
1. Based on the average three-month share price to 31 March 2024 of £5.83 and at an exchange rate of €1:£0.866.
2. This award is subject to a further two-year post-vesting holding period.
The Committee is satisfied that this outcome is a fair reflection of the performance achieved over the performance period and the
experience of the Group’s shareholders and other stakeholders.
142 Renewi plc Annual Report and Accounts 2024
Share awards granted in FY24 (audited)
Long-Term Incentive Plan
The Executive Directors were granted LTIP awards on 19 June 2023 as follows:
Executive Director
Date of grant
Basis of award
Share price1
Face value2
Number of shares
Otto de Bont
19 June 2023
150% of salary
£5.06
€798,089
136,590
Annemieke den Otter
19 June 2023
120% of salary3
£5.06
€542,308
92,814
1. Based on the three-day average dealing price prior to the grant date.
2. At an exchange rate of €1:£0.866.
3. Percentage agreed as part of joining arrangements.
Performance targets are as follows:
Performance metric
Weighting
Performance targets
EPS
25%
25% of this part of an award vests for EPS growth of 5% p.a. increasing pro-rata to 100% vesting for EPS
growth of 15% p.a. or more
ROCE
25%
25% of this part of an award vests for an improvement in ROCE of 0.5% increasing pro-rata to 100%
vesting for an improvement in ROCE of 2% or more
Relative TSR
25%
25% of this part of an award vests for TSR equal to median increasing pro-rata to 100% vesting for TSR
equal to upper quartile or above against the FTSE 250 (excluding investment trusts)
Recycling rate
25%
25% of this part of an award vests for a recycling rate of 67% increasing pro-rata to 100% vesting for a
recycling rate of 70% or more
The performance period for these awards commenced on 1 April 2023 and ends on 31 March 2026. For any shares to vest, the Committee
will also need to satisfy itself that the recorded outcome is a fair reflection of the overall performance of the Group over the period. Awards
will vest on the third anniversary of grant and will be subject to a further two-year holding period.
Deferred Annual Bonus (DAB)
Awards were granted under the Renewi plc Deferred Annual Bonus Plan on 19 June 2023 as follows:
Executive Director
Date of grant
2022/23 annual
bonus
Basis of award1
Share price2
Face value3
Number of shares
Otto de Bont
19 June 2023
€573,690
25%
£5.06
€ 141,645
24,242 shares vested immediately
Otto de Bont
19 June 2023
€573,690
25%
£5.06
€ 141,639
24,241 shares vesting after three years
A den Otter
19 June 2023
€433,125
25%
£5.06
€ 106,938
18,302 shares vested immediately
A den Otter
19 June 2023
€433,125
25%
£5.06
€ 106,938
18,302 shares vesting after three years
1. 50% of the bonus is awarded in shares, with half vesting immediately and the other half deferred into an award over Renewi plc shares which vest after three years.
2. Based on the three-day average dealing price prior to the grant date.
3. At an exchange rate of €1:£0.866.
Payments made to past Directors during the year (audited)
No termination payments were made to past Directors during the year.
Relative importance of spend on pay
The table shows the percentage change in total employee pay expenditure and shareholder distributions from the financial year ended
31 March 2023 to the financial year ended 31 March 2024.
FY23
€m
FY24
€m
% change
Distribution to shareholders
–
4.7
100%
Employee remuneration
403.5
434.6
7.7%
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
143
Directors’ Remuneration Report continued
Pay for performance
The graph shows the TSR of Renewi plc over the 10-year period to 31 March 2024. While no comparator index or group of companies
truly reflects the activities of the Group, the FTSE Support Services sector has been selected as a comparator index as it is the sector
in which Renewi is classified and is an index against which the performance of the Group is judged. The FTSE All-Share Index is also
presented. The table below the graph details the Chief Executive Officer’s single-figure remuneration and actual variable pay
outcomes over the same period.
CEO single figure remuneration over the 10 years to 31 March 2024
Peter Dilnot1
Otto de Bont3
Executive Director
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Chief Executive Officer single figure of
remuneration (€000)
1,155
1,456
1,100
1,685
753
1,244
1,017
2,249
2,184
1,517
Annual bonus outcome (% of maximum)
47%
69%
48%
88%
0%
88%
65%
100%
77%
56%
LTIP vesting outcome (% of maximum)
0%
0%
0%
21.5%
0%2
43.3%
22.5%
100%
96%
53%
1. Peter Dilnot was appointed as Chief Executive Officer on 1 February 2012 and resigned on 31 March 2019.
2. Although 23% of the 2016 LTIP awards vested in 2019, Peter Dilnot’s LTIP awards lapsed upon his resignation.
3. Otto de Bont was appointed as Chief Executive Officer on 1 April 2019.
Renewi plc
Source: Datastream (LSEG – Refinitiv)
FTSE All-Share Support Services Index
FTSE All-Share Index
300
250
200
150
100
50
0
Total shareholder return
(rebased to 100)
31 Mar
2014
31 Mar
2015
31 Mar
2016
31 Mar
2017
31 Mar
2018
31 Mar
2019
31 Mar
2020
31 Mar
2021
31 Mar
2022
31 Mar
2023
31 Mar
2024
Historical TSR performance
Growth in value over 10 years of a hypothetical £100 invested at 31 March 2014.
144 Renewi plc Annual Report and Accounts 2024
Percentage change in Directors’ remuneration
The table below shows the percentage change in Directors’ remuneration (excluding pension and long-term incentives) from the prior year
compared to the average percentage change in remuneration for employees Group-wide. This grouping reflects the experience of the vast
majority of employees within Renewi, providing a more robust comparison than the previously reported UK-based peer group. As reported
last year, we will no longer use the UK-based peer group for comparative purposes. Last year was the first time the Group-wide employee
data set was used and we have therefore shown two consecutive years of data below. For prior year data showing UK-based peer group
comparables see the FY23 Annual Report and Accounts.
FY22-23
FY23–24
Base
salary
Benefits
Annual
bonus
Base
salary
Benefits
Annual
bonus
Executive Directors
Otto de Bont
4%
2%
-20%
8%
12%
-21%
Annemieke den Otter
n/a
n/a
n/a
4%
28%
-11%
Non-Executive Directors
Ben Verwaayen
0%
n/a
n/a
0%
n/a
n/a
Allard Castelein
4%
n/a
n/a
10.7%1
n/a
n/a
Neil Hartley
9%
n/a
n/a
5.8%
n/a
n/a
Jolande Sap
4%
n/a
n/a
5.8%
n/a
n/a
Luc Sterckx
4%
n/a
n/a
5.8%
n/a
n/a
Katleen Vandeweyer
n/a
n/a
n/a
5.8%
n/a
n/a
Group-wide employees
9%
n/a
-34%
5%
n/a
-18%
1. Allard Castelein’s fee as SID was aligned with the fee for Committee Chairs in line with benchmarking.
CEO pay ratio
The CEO pay ratio data for FY24 is presented below (with prior year data). The data shows how the CEO’s single-figure remuneration for
FY24 (as taken from the single-figure remuneration table) compares to equivalent single-figure remuneration for all full-time equivalent
UK employees ranked at the 25th, 50th and 75th percentile. The data was taken as at 31 March and the Committee believes the median ratio
is consistent with pay, reward and progression policies for the company’s UK employees as a whole.
Year
Method
25th percentile pay ratio
Median pay ratio
75th percentile pay ratio
FY24
Option A
39:1
34:1
25:1
FY23
Option B
86: 1
71: 1
51: 1
FY22
Option B
63: 1
41: 1
45: 1
FY21
Option B
33: 1
31: 1
19: 1
FY20
Option B
41: 1
38: 1
23: 1
No components of pay and benefits have been omitted for the purpose of the above calculations. Option A (pay and benefits of all UK
employees for the relevant financial year) was selected this year facilitated by improved data collection and employee data. Calculation
of employer costs are similarly much more accurate, resulting in a higher employee benefits figure and hence a lower CEO Pay Ratio.
Additionally, multiple year variable pay for the CEO is lower in FY24 than the prior year comparable. The respective quartile salary and
total pay and benefits numbers are as follows:
Salary
Total pay and benefits
Year
25th percentile
Median
75th percentile
25th percentile
Median
75th percentile
FY24
€31,880
€37,140
€50,153
€38,575
€45,079
€61,831
FY23
€27,603
€33,221
€46,072
€29,259
€35,214
€48,837
FY22
€33,869
€53,642
€47,200
€35,945
€55,083
€55,473
FY21
€27,762
€30,147
€47,918
€30,557
€33,086
€53,052
FY20
€28,175
€30,596
€48,632
€31,013
€33,579
€53,843
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Renewi plc Annual Report and Accounts 2024
145
Directors’ Remuneration Report continued
To provide a more robust comparison, data on a more Group-wide employee basis is shown below, representing the workforce in our
principal countries of operations of the Netherlands, Belgium and the UK. For this set of employees, data is based on basic salary and
benefits. Data accuracy has improved with the use of the improved collection methods and systems. This improved comparison has
resulted in a higher value of benefits recorded across all 3 countries resulting in a lower CEO Pay Ratio.
Year
25th percentile pay ratio
Median pay ratio
75th percentile pay ratio
FY24
30:1
27:1
21:1
FY23
63:11
53:1
43:1
Salary
Total pay and benefits
Year
25th percentile
Median
75th percentile
25th percentile
Median
75th percentile
FY24
€35,966
€38,292
€47,961
€50,555
€56,618
€70,760
FY23
€32,5321
€35,271
€44,416
€40,176
€47,491
€57,910
1. Corrected since prior year, shown as 53:1 and €35,532 respectively in the FY23 Annual Report and Accounts.
Directors’ interests (audited)
The interests of the Directors and persons closely associated in the ordinary shares of the Group during the year and as at 30 May 2024
were as shown below. Details of Directors’ interests in shares and options under the long-term share schemes are set out in the
sections below.
Ordinary shares
at 1 April 2023
Ordinary shares
at 31 March 2024 and 29 May 2024
Otto de Bont
184,6411
329,272
Allard Castelein
–
–
Neil Hartley
–
–
Jolande Sap
–
–
Luc Sterckx
28,500
28,500
Ben Verwaayen
–
–
Annemieke den Otter
15,000
55,302
Katleen Vandeweyer
–
–
1. In the Annual Report and Accounts 2023 Otto de Bont’s shareholding was mis-stated at 184,731 shares, actual holding was 184,641 shares as at 31 March 2023.
Directors’ shareholdings (audited)
The table below shows the shareholding of each Executive Director against their respective shareholding requirement as at
31 March 2024.
Owned
outright or
vested
Unvested but
subject to
holding
period
Unvested and
subject to
performance
conditions
Vested but
not exercised
Exercised
during the
year
Unvested and
subject to
continuous
employment
Shareholding
requirement
(% of salary)
Current
shareholding1
(% of salary)
Requirement
met?
Otto de Bont
329,272
97,810
349,652
–
–
–
200%
392%
Achieved
Annemieke den Otter
55,302
18,302
113,246
–
–
–
200%
77% In progress
1. Shareholdings were calculated using the number of outright shares, at £5.83, as percentage of salary as at 31 March 2024.
146 Renewi plc Annual Report and Accounts 2024
Directors’ interests in share awards
The Executive Directors have been made the following conditional awards under the Renewi Deferred Annual Bonus Plan:
Outstanding
awards at 31
March 2023
Awards made
during the year1
Awards lapsed
during the year
Awards vested
during the year
Outstanding
awards at
31 March 2024
Date of award
Share price on
date of award
(£)
Restricted
period end
Otto de Bont
65,085
–
–
32,543
32,542
22.06.20
2.78
22.06.252
18,229
–
–
–
18,229
23.07.21
5.42
23.07.24
22,798
–
–
–
22,798
16.06.22
6.80
16.06.25
–
24,242
–
24,242
–
19.06.23
5.06
19.06.23
–
24,241
–
–
24,241
19.06.23
5.06
19.06.26
Annemieke den Otter
–
18,302
–
18,302
–
19.06.23
5.06
19.06.23
–
18,302
–
–
18,302
19.06.23
5.06
19.06.26
1. 50% of awards vesting immediately and 50% vest after three years.
2. Under legacy Scheme Rules 50% of award is released three years after the date of award, 25% after four years and the remaining 25% after five years.
The Executive Directors have been made the following conditional awards of shares under the Renewi Long-Term Incentive Plan:
Outstanding
awards at
31 March 2023
Awards
made during
the year
Awards
lapsed during
the year
Awards
vested during
the year1
Outstanding
awards at
31 March
20242
Date of
award
Share price
on date of
award (£)
Performance
period end
Restricted
period end3
Otto de Bont
180,322
–
6,762
173,560
–
27.07.20
2.58
31.03.23
27.07.23
118,131
–
–
–
118,131
23.07.21
5.24
31.03.24
23.07.24
94,931
–
–
–
94,931
16.06.22
6.80
31.03.25
16.06.25
–
136,590
–
–
136,590
19.06.23
5.06
19.06.26
19.06.26
Annemieke den Otter
20,432
–
–
–
20,432
16.06.22
6.80
31.03.25
16.06.25
–
92,814
–
–
92,814
19.06.23
5.06
19.06.26
19.06.26
1. 96.25% of the 2020 LTIP award vested in 2023.
2. The performance conditions relating to the vesting of outstanding awards are shown on pages 142 and 143.
3. A two-year post-vesting holding period applies.
The highest closing mid-market price of the ordinary shares of Renewi plc during the year was £7.34 and the lowest closing mid-market
price during the year was £4.50. The mid-market price at the close of business on 31 March 2024 was £5.74.
Other interests
None of the Directors had an interest in the shares of any subsidiary undertaking of the Group or in any significant contracts of the Group.
Advice provided to the Committee during the year
Mercer Ltd served as independent advisers to the Remuneration Committee during the year. Its total fees for the provision of remuneration
services to the Committee in FY24 were €22,228 (£19,250) charged on a time and materials basis. Mercer Ltd provides no other services to
the Group.
Mercer Ltd is a member of the Remuneration Consultants Group and is a signatory to the Code of Conduct for Remuneration Committees
Consultants which can be found at remunerationconsultantsgroup.com.
The Committee periodically undertakes due diligence to ensure that the Remuneration Committee advisers remain independent of
the Group and that the advice provided is impartial and objective. The Committee is satisfied that the advice provided is independent.
By order of the Board
Neil Hartley
Chair of the Remuneration Committee
30 May 2024
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
147
The Company’s Articles
of Association
Many of the matters described below
are governed by the Company’s Articles of
Association and by current legislation and
regulations. The Articles can be viewed on
the Company website at renewi.com.
Strategic Report
The Strategic Report (see pages 2 to 91)
provides a fair review of the Group’s business
for the year ended 31 March 2024.
It also explains the objectives and strategy of
the Group, its competition and the markets
in which it operates, the principal risks and
uncertainties it faces, the Group’s financial
position, key performance indicators and
likely future developments of the business.
The Strategic Report was approved by a duly
authorised committee of the Board on 30 May
2024 and signed on its behalf by the Company
Secretary.
Directors’ report
The Directors’ Report comprises pages 92 to
151. The Directors’ Report was approved by
a duly authorised committee of the Board on
30 May 2024 and signed on its behalf by the
Company Secretary.
Other information
Apart from the details of the Company’s
Long-Term Incentive Plan, as set out in the
Directors’ Remuneration Report (see pages
128 to 147), no further information requires
disclosure for the purposes of complying with
the Financial Conduct Authority’s Listing
Rule 9.8.4C.
Directors
The composition of the Board at the date
of this report can be found on pages 94 and 95.
Directors’ biographical details are shown on
pages 94 to 95. All Directors served on the Board
throughout the financial year under review and
will be seeking re-election at the AGM.
Appointment and replacement
of directors
The Company’s minimum requirement is to
appoint at least two Directors. The appointment
and replacement of Directors may be made
as follows:
• The Company’s members may, by ordinary
resolution, appoint any person who is willing
to act to be a Director
• The Board may appoint any person who is
willing to act to be a Director. Any Director
so appointed shall hold office only until the
next AGM and shall then be eligible for election
• Each Director shall retire from office at every
AGM but may be re-appointed by ordinary
resolution if eligible and willing
• The Company may, by special resolution,
remove any Director before the expiry of his
or her period of office or may, by ordinary
resolution, remove a Director where special
notice has been given and the necessary
statutory procedures are complied with
• A Director must vacate their office if any
of the circumstances in Article 100 of the
Articles of the Company arise
Powers of Directors
The business of the Company is managed by
the Board, which may exercise all the powers
of the Company, whether relating to the
management of the business of the Company
or not. This power is subject to any limitations
imposed on the Company by legislation. It is
also limited by the provisions of the Articles
and by any directions given by special
resolution of the members of the Company.
Specific provisions relevant to the exercise of
powers by the Directors include the following:
• Pre-emptive rights and new issues of shares.
Under the Companies Act 2006 (the Act),
the directors of a company are, with certain
exceptions, unable to allot any equity
securities without express authorisation,
which may be contained in a company’s
Articles or given by its shareholders in a
general meeting. In addition, under the Act,
the Company may not allot shares for cash
(otherwise than pursuant to an employee
share scheme) without first making an offer
to existing shareholders to allot such shares
to them on the same or more favourable
terms in proportion to their respective
shareholdings, unless this requirement
is waived by a special resolution of the
Company’s shareholders. The Company
received authority at the last AGM to allot
shares for cash on a non-pre-emptive
basis up to a maximum nominal amount
of £8,025,029, with up to an additional
£1,605,005 for the purposes of making
a follow-on offer which the Board of
the Company determines to be of a kind
contemplated by paragraph 3 of Section 2B
of the Statement of Principles on Disapplying
Pre-Emption Rights. This authority lasts until
the earlier of the AGM in 2024 or
30 September 2024
• Repurchase of shares.
Subject to authorisation by shareholder
resolution, the Company may purchase all or
any of its own shares in accordance with the
Act and the Listing Rules. Any shares that
have been bought back may be held as
treasury shares or, if not so held, must be
cancelled immediately upon completion of
the purchase, thereby reducing the amount
of the Company’s issued share capital. The
Company received authority at the last AGM
to purchase up to 8,025,029 ordinary shares.
This authority lasts until the earlier of the
AGM in 2024 or 30 September 2024
• Borrowing powers.
The Directors are empowered to exercise
all the powers of the Company to borrow
money and to mortgage or charge all or
any part of the Company’s assets, provided
that the aggregate amount of borrowings of
the Group outstanding at any time does not
exceed the limit set out in the Articles, unless
sanctioned by an ordinary resolution of the
Company’s shareholders
Directors’ indemnities
As at the date of this report, the Company has
granted indemnities to the extent permitted by
law, in respect of certain liabilities incurred as
a result of carrying out the role of a Director of
the Company. The indemnities are qualifying
third-party indemnity provisions for the
purposes of the Companies Act 2006.
In respect of those liabilities for which
the Directors may not be indemnified, the
Company maintained a Directors’ and Officers’
liability insurance policy throughout the
financial year and has renewed that policy.
Corporate governance
The Board is fully committed to high standards
of corporate governance. Details relating to the
Company’s compliance with the UK Corporate
Governance Code for the financial year are given
in the Corporate Governance and Directors’
Remuneration Reports (see pages 92 to 147).
Sustainability
Renewi plc is a leading international
waste-to-product company. Information
on sustainability matters, including those
on environment, social, community and
employment policies, and health and safety
are set out in the Strategic Report (see pages 2
to 91).
Further information about the Company’s
approach to carbon avoidance and the benefits
of sustainable waste management, including
disclosures on Streamlined Energy and Carbon
Reporting (SECR) (page 41) and Task Force on
Climate-related Financial Disclosures (TCFD)
(pages 78 to 89), can also be found in the
Strategic Report.
Other disclosures
Other disclosures
148 Renewi plc Annual Report and Accounts 2024
Task Force on Climate-Related
Financial Disclosures (TCFD)
The Group’s TCFD disclosure is provided in a
readily identifiable and accessible format for all
interested stakeholders and can be found in the
Strategic Report (see pages 78 to 89).
Results and dividends
The Group’s Consolidated Income Statement
(see page 164 and note 2 to the financial
statements) shows the contribution to revenue
and profits made by the different segments of
the Group’s business. The Group’s loss for the
year was €30.9m (prior year profit €66.6m). The
Directors are recommending a final dividend of
5 pence per share (or cents equivalent) to be
paid to shareholder on 31 July 2024, subject
to shareholder approval the 2024 AGM. Having
determined not to pay an interim dividend
(2023: 0 pence), the total proposed dividend for
the year is 5 pence per share (2023: 0 pence).
Going concern and viability
After making enquiries, the Directors have
formed the view, at the time of approving the
financial statements, that the Company and
Group have adequate resources to continue
operating and that the Group’s business is a
going concern. For this reason, the Directors
continue to adopt the going concern basis in
preparing the financial statements.
Taking account of the Company’s current
position and principal risks, the Board sets
out on page 77 how it has assessed the
prospects of the Company. In compliance with
the provisions of the UK Corporate Governance
Code, the Board also confirms that it has a
reasonable expectation that the Company and
the Group will be able to continue in operation
and meet their liabilities as they fall due over
the three-year period ending 31 March 2027.
Share capital
The Company’s share capital comprises ordinary
shares of £1.00 each par value.
Renewi plc’s ordinary shares were admitted to
trading on Euronext Amsterdam on 30 January
2020. No new shares were placed in connection
with the application for that secondary listing and
the Company continues to remain listed on the
premium segment of the Official List in London.
Following shareholder approval at the
2021 AGM, on 19 July 2021 Renewi undertook a
consolidation of its share capital on the basis of
1 new ordinary share with nominal value of £1.00
for every 10 existing ordinary shares of 10 pence.
As at 31 March 2024 there were 80,551,370
ordinary £1.00 shares in issue. As at the date
of this report, there were 80,559,470 ordinary
£1.00 shares in issue.
Principal rights and obligations
attaching to shares
• Dividend rights.
The Company may, by ordinary resolution,
declare dividends but may not declare
dividends in excess of the amount
recommended by the Directors. The Directors
may also pay interim dividends. No dividend
may be paid other than out of profits available
for distribution. Payment or satisfaction of a
dividend may be made wholly or in part by
distribution of assets, including fully paid
shares or debentures of any other company.
The Directors may deduct from any dividend
payable to a member all sums of money
(if any) payable by such member to the
Company in respect of their ordinary shares
• Voting rights.
On a poll, every shareholder who is present
in person or by proxy or represented by a
corporate representative has one vote for
every share held by that shareholder. In the
case of joint holders of an ordinary share, the
vote of the senior who tenders a vote shall be
accepted to the exclusion of the votes of the
other joint holders. Seniority is determined
by the order in which the names of the joint
holders appear in the Company’s register of
members in respect of the joint holding. The
deadline for appointing proxies to exercise
voting rights at any general meeting is set out
in the notice convening the relevant meeting.
The Company is not aware of any agreements
between holders of its shares that may result
in restrictions on voting rights
• Return of capital.
In the event of the liquidation of the
Company, after payment of all liabilities
and deductions taking priority, the balance
of assets available for distribution will be
distributed among the holders of ordinary
shares according to the amounts paid up
on the shares held by them. A liquidator may,
with the sanction of a special resolution of the
shareholders and any other sanction required
by law, divide among the shareholders in
kind the whole or any part of the Company’s
assets or vest the Company’s assets, but no
shareholder may be compelled to accept
any assets upon which there is any liability
Share restrictions
There are no limitations under the Company’s
Articles of Association that restrict the rights of
members to hold the Company’s shares. Certain
restrictions may, from time to time, be imposed
on the transfer of the Company’s shares by laws
and regulations such as insider trading laws. In
limited situations, as permitted by the Articles,
the Board may also decline to register a transfer.
The Company is not aware of any agreements
between holders of its shares that may result
in restrictions on the transfer of securities.
Employee share schemes –
control rights
The Company operates a number of employee
share schemes. Under some, ordinary shares
may be held by trustees on behalf of employees.
Employees are not entitled to exercise directly
any voting or other control rights in respect of
any shares held by such trustees. Trustees have
full discretion to vote or abstain from voting at
general meetings of the Company in respect of
such shares.
Retail bonds
As at 31 March 2024, the Company had in issue
two retail bonds: the first, comprising €75m
3.00% guaranteed notes due 19 July 2024;
and the second, comprising €125m 3.00%
guaranteed notes due 23 July 2027. There are
no restrictions under the instruments governing
these notes that restrict the rights of investors to
hold or transfer them. The Company is not aware
of any agreements between the holders of
the notes that may result in restrictions on
their transfer.
Change of control –
significant agreements
The Group’s principal financing instruments
at 31 March 2024 are a €455m banking facility,
consisting of a €400m multi-currency revolving
credit facility with eight major banks and €55m
of European Private Placement (EUPP) loans.
The facility contains an option for those lenders
to declare by notice that all sums outstanding
under that agreement are repayable
immediately in the event of a change of control
of the Company. Any such notice may take
effect no earlier than 30 days from the change
of control and, if exercised at 31 March 2024,
would have required the repayment of €210.5m
(FY23: €102.5m) in principal and interest relating
to the revolving credit facility.
The Group’s European Investment Bank (EIB)
financing instrument of €40m requires notice
to be given if a change of control event has
occurred or is likely to occur, and subsequently
they may cancel any unutilised loan amounts
and demand prepayment of any loan
outstanding, along with accrued interest
and other amounts accrued. As at 31 March
2024 the unutilised loan amount was €15.0m
(FY23: €15.0m) and the loan outstanding and
interest accrued was €25.3m (FY23: €25.3m).
The Group’s retail bonds issued in July 2019
and July 2021 require notice to be given to
bondholders within seven business days of
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
149
a change of control following which the holders
have an option to seek repayment at a 1%
premium, within 60 days of that notice. Such
repayment must be made within 10 business
days of the expiry of the option period. If
exercised at 31 March 2024, repayment of
€204.2m (FY23: €204.1m) in principal and
interest would have been required.
The rules of the Company’s employee share
plans provide that awards and options may
vest and become exercisable on a change of
control of the Company.
Research and development
Research and development and associated
costs are integrated into the continuous
running and advancing of the Group’s
operations, and is not recorded as a separate
cost item. Examples of our products and
services developments can be found through
the Strategic Report on pages 1 to 91, with
specific examples of customer collaborations
detailed on pages 6 to 10.
Political donations
No donations were made by the Group for
political purposes during the financial year
(FY23: €nil).
Employees with disabilities
Within Renewi our first aim is to offer
equal opportunities to anybody, without
discrimination. This also applies to
employment of people with disabilities
where any applicant is considered on merit
with regard only to the ability to carry out
the role. Arrangements to enable people with
disabilities to carry out the duties required
will be made if it is reasonable to do so.
An employee who through becoming disabled
can no longer carry out their role, would, where
possible, be offered alternative duties and
or retraining.
Investor relations
Renewi has an active investor relations
programme to engage with institutional
investors, analysts, press and other stakeholders.
The Company uses a number of channels to do
this including its AGM, face-to-face meetings,
roadshows, analyst workshops, videos,
presentations, reports and its corporate website.
Business Relationships
The directors regard the Group’s business
relationships with its suppliers, clients,
customers and others as a pivotal component
of the Company’s long term success. Our
culture, values and behaviours support open
and honest engagement with our business
counterparts. We maintain high standards
of ethical behaviour in all of our business
dealings. For further information on how
the Company fosters relationships with its
stakeholders see pages 112 to 115, and for
examples of how the directors have had regard
to their interests in their principal decision
making processes see page 116.
Annual General Meeting
Notice of the AGM of the Company to be held at
the offices of Ashurst LLP, The London Fruit &
Wool Exchange, 1 Duval Square, London, E1
6PW on Thursday, 11 July 2024 at 11.00am will
be made available to shareholders, together
with a form of proxy, and will also be available
on the Company’s website at renewi.com.
The Directors consider that the resolutions
recommended by the Board for the AGM are in
the best interests of the Company, and they
recommend all shareholders vote in support of
these resolutions, as they intend to in respect
of their own shareholdings.
By order of the Board
Dominic Murray
Company Secretary
30 May 2024
Renewi plc,
Registered in Scotland no. SC077438
Notifiable interests
The Company has been notified of direct and indirect interests in voting rights equal to or exceeding 3% of the ordinary share capital of
the Company as set out in the table below.
Notifications received up to 30 May 2024
Number of Shares
% Issued Capital
Coast Capital Management
6,795,838
8.47
Avenue Europe International Management LP
6,615,426
8.24
SPICE ONE Investment Cooperatief U.A.
4,482,393
5.56
Black Rock inc.
2,699,953
3.35
Janus Henderson Investors
2,451,499
3.06
Other disclosures continued
150 Renewi plc Annual Report and Accounts 2024
The Directors are responsible for preparing
the Annual Report and the financial
statements in accordance with UK adopted
international accounting standards and
applicable law and regulations.
Company law requires the Directors to
prepare financial statements for each
financial year. Under that law the Directors
are required to prepare the Group financial
statements and have elected to prepare
the Company financial statements in
accordance with UK adopted international
accounting standards. Under company
law the Directors must not approve the
financial statements unless they are
satisfied that they give a true and fair view
of the state of affairs of the Group, and
Company and of the profit or loss for the
Group and Company for that period.
In preparing these financial statements,
the Directors are required to:
• select suitable accounting policies
and then apply them consistently;
• make judgements and accounting
estimates that are reasonable
and prudent;
• state whether they have been prepared in
accordance with UK adopted international
accounting standards, subject to any
material departures disclosed and
explained in the financial statements;
• prepare the financial statements on
the going concern basis unless it is
inappropriate to presume that the
Group and the Company will continue
in business; and
• prepare a Directors’ Report, a Strategic
report and Directors’ Remuneration
Report which comply with the
requirements of the Companies Act 2006.
The Directors are responsible for
keeping adequate accounting records
that are sufficient to show and explain
the Company’s transactions and disclose
with reasonable accuracy at any time the
financial position of the Company and
enable them to ensure that the financial
statements comply with the Companies
Act 2006.
They are also responsible for safeguarding
the assets of the Company and hence for
taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Directors are responsible for ensuring
that the Annual Report and Accounts,
taken as a whole, are fair, balanced
and understandable, and provide the
information necessary for shareholders
to assess the Group’s performance,
business model and strategy.
Website publication
The Directors are responsible for ensuring
the Annual Report and the financial
statements are made available on
a website. Financial statements are
published on the Company’s website in
accordance with legislation in the United
Kingdom governing the preparation and
dissemination of financial statements,
which may vary from legislation in other
jurisdictions. The maintenance and
integrity of the Company’s website
is the responsibility of the Directors.
The Directors’ responsibility also extends
to the ongoing integrity of the financial
statements contained therein.
Directors’ responsibilities pursuant to
DTR4 of the UK Listing Rules
The Directors confirm to the best of
their knowledge:
• The financial statements have
been prepared in accordance with the
applicable set of accounting standards
and give a true and fair view of the
assets, liabilities, financial position
and profit and loss of the Group
and Company
• The Annual Report includes a fair review
of the development and performance of
the business and the financial position of
the Group and Company, together with
a description of the principal risks and
uncertainties that they face
Directors’ statement as to the
disclosure of information to auditors
All of the current Directors have taken all
the steps that they ought to have taken to
make themselves aware of any information
needed by the Company’s auditors for the
purposes of their audit and to establish
that the auditors are aware of that
information. The Directors are not aware
of any relevant audit information of which
the auditors are unaware.
By order of the Board
Dominic Murray
Company Secretary
30 May 2024
Renewi plc,
Registered in Scotland no. SC077438
Directors’ Responsibilities
Statement
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
151
Financial statements
154
Auditors Report
164
Financial Statements
152 Renewi plc Annual Report and Accounts 2024
Circular material:
recycled wood chips
Renewi plc Annual Report and Accounts 2024
153
Strategic report
Governance report
Financial statements
Other information
Independent auditor’s report to the members of Renewi plc
Independent auditor’s report to the members of Renewi plc
Opinion on the financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 March 2024
and of the Group’s loss for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;
• the Parent Company financial statements have been properly prepared in accordance with UK adopted international accounting
standards and as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Renewi plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year ended
31 March 2024 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the
Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Parent
Company Balance Sheet, the Parent Company Statement of Changes in Equity, the Parent Company Statement of Cash Flows and notes
to the financial statements, including material accounting policy information. The financial reporting framework that has been applied
in their preparation is applicable law and UK adopted international accounting standards and, as regards the Parent Company
financial statements, as applied in accordance with the provisions of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit
opinion is consistent with the additional report to the audit committee.
Independence
Following the recommendation of the audit committee, we were appointed by the Directors on 22 October 2020 to audit the financial
statements for the year ended 31 March 2021 and subsequent financial periods. The period of total uninterrupted engagement including
retenders and reappointments is four years, covering the years ended 31 March 2021 to 31 March 2024. We remain independent of the
Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements
in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. The non-audit services prohibited by that standard were not provided to
the Group or the Parent Company.
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 the Parent
Company’s ability to continue to adopt the going concern basis is set out in the Key Audit Matter section below.
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 the Parent 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 Parent Company’s reporting on how it has 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.
154 Renewi plc Annual Report and Accounts 2024
Overview
Coverage
90% of Group loss for the year (on absolute basis) (2023: 87% of Group profit before tax)
90% (2023: 91%) of Group revenue
94% (2023: 91%) of Group total assets
Key audit matters
2024
2023
Revenue recognition
Valuation of onerous contract provisions
Valuation of landfill provisions
Presentation of non-trading and exceptional items and discontinued operations
Presentation of financial statements on a going concern basis
Materiality
Group financial statements as a whole
€5.30m (2023: €6.20m) based on 5% (2023: 5%) of underlying earnings before interest and tax (EBIT).
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including the Group’s system of
internal control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management
override of internal controls, including assessing whether there was evidence of bias by the Directors that may have represented a risk of
material misstatement.
We identified components which we considered to be of individual financial significance based on their contribution to the Group’s
earnings, those which were significant due to risk and those remaining components on which we required procedures to be performed to
provide us with sufficient evidence to conclude on the group financial statements as a whole. Our scoping and number of components is
as follows:
Number of components
2024
2023
Full scope components
6
6
Audit of one or more account balances
3
3
Total
9
9
The 6 full scope components contributed 90% of Group loss before tax (on absolute basis), 90% of Group revenue and 91% of Group total
assets. These components were subject to full scope audit procedures by the following teams:
• Commercial Waste Netherlands, Commercial Waste Belgium, ATM and Group Central Services – Eindhoven completed by BDO member
firm component auditors.
• UK Municipal – completed by BDO LLP component auditor.
• Group Central Services – Milton Keynes completed by BDO LLP group audit team.
We also instructed the BDO member firms stated above to perform specified procedures, designed by the Group audit team to address
risks of material misstatement, on certain key balances in entities that formed part of non-significant components.
Our involvement with component auditors
For the work performed by component auditors, we determined the level of involvement needed in order to be able to conclude
whether sufficient appropriate audit evidence has been obtained as a basis for our opinion on the Group financial statements as a whole.
Our involvement with component auditors included the following:
• Regular video conferences (and periodic face-to-face meetings) with all component audit teams present to discuss audit approach,
evaluation of identified risks and then subsequently audit progress; consideration of audit procedures performed on key risks and
challenge of component teams’ key observations;
• Issued group instructions to component auditors on the scope of their work, which includes significant areas to be covered, significant
and elevated risks and the information to be reported back. The group audit team approved the component materialities, having regard
to the mix of size and risk profile across the components;
• All-teams planning day held to direct component audit teams’ planning and discuss risks identified;
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• Group audit team performed a detailed review of the component auditors’ working papers to determine if sufficient and appropriate
audit evidence had been obtained; and
• Attended physical clearance meetings for each significant component, together with local management and the relevant
component auditor.
The Group audit team also performed audit procedures on elements of certain specific risks including determination of discount
rate used in the calculation of onerous contract provisions and landfill provisions; stand back assessment on management override
of controls; presentation of non-trading and exceptional items within the Income Statement; valuation of certain financial instruments
that are held at fair value and assessment of incremental borrowing rates applied to measure lease liabilities.
Climate change
Our work on the assessment of potential impacts on climate-related risks on the Group’s operations and financial statements included:
• Enquiries and challenge of management to understand the actions they have taken to identify climate-related risks and
their potential impacts on the financial statements and adequately disclose climate-related risks within the annual report;
• Our own qualitative risk assessment taking into consideration the sector in which the Group operates and how climate change
affects this particular sector; and
• Review of the minutes of Board and Audit Committee meetings and other papers related to climate change and performed a risk
assessment as to how the impact of the Group’s commitment as set out in the Strategic Report may affect the financial statements
and our audit.
We challenged the extent to which climate-related considerations, including the expected cash flows from the initiatives and
commitments have been reflected, where appropriate, in the directors’ going concern assessment and viability assessment and in
their judgements and estimates in relation to long term provisions and impairment of plant, property and equipment. While the Group
has not fully completed its quantification of climate change risk scenarios, capex and lifecycle spend estimates are based on periodic
business planning, which considers, amongst other matters, known legislative changes related to climate change.
We also assessed the consistency of the Director’s disclosures included in the Non-Financial and Sustainability Information Statement
on page 91 with the financial statements and with our knowledge obtained from the audit.
Based on our risk assessment procedures, we did not identify there to be any Key Audit Matters materially impacted by climate-related
risks and related commitments.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of 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.
Key audit matter
How the scope of our audit addressed the key audit matter
Revenue recognition
(Section 3, Note 3.1 of the
financial statements)
We consider that there is a risk that revenue
recognition is inappropriate as there may be
incentive for management to meet market
and investor expectations.
This incentive could lead to manipulation of
revenue recognised, by manual journals or
bias in estimates of value and volume of
deferred revenue (unprocessed waste)
at year end.
Our procedures included the following:
We tested the operating effectiveness of controls relating to the following:
• Determining that weight registrations cannot be deleted;
• Obtaining assurance over accuracy of calibration of weight registrations; and
• Checking that interfaces between weight registrations and accounting systems are
accurately capturing information.
156 Renewi plc Annual Report and Accounts 2024
Key audit matter
How the scope of our audit addressed the key audit matter
Revenue recognition
(Section 3, Note 3.1 of the financial
statements) continued
Deferred revenue is recognised in a number of
components as performance obligations are
completed after billing, and cut-off could be
inappropriately applied.
As there is some judgement involved in
the valuation of this deferred revenue,
we considered revenue recognition to
be a key audit matter.
Other detailed procedures included:
• Evaluated the scope, competence and objectivity of management’s external experts,
who measure the mass balance of unprocessed waste at year end;
• Attended waste counts at a number of locations and verified that these were
appropriately reflected in deferred revenue calculations;
• Assessed if conversion rates for volumes/density were appropriate by comparison to
external sources for a sample;
• For a sample of transactions, we agreed prices and volumes of waste sold & collected to
underlying supporting documentation or contracts to provide assurance of accuracy
and valuation of deferred revenue;
• Selected a sample of journals to revenue outside of expectation and verified to
supporting documentation;
• Selected a sample of transactions either side of the year end and agreed to supporting
documentation to check that revenue has not been recognised prior to performance
obligation being satisfied; and
• Performed analytical procedures to identify, among other matters, inconsistencies in
gross profit margin achieved in prior periods compared to that reported in March 2024.
Key observations:
Based on the testing completed, we have not identified any indicator that suggests that
revenue recognised was not appropriate for the year ended 31 March 2024.
Presentation of non-trading and
exceptional items and discontinued
operations (Notes 3.3 and 6.4 of the
financial statements)
The Group presents a number of items
of income and expense separately on the
face of the consolidated income statement
as non-trading and exceptional items.
In addition to this, the Group has presented
the UK Municipal division as a
discontinued operation.
IAS 1 requires the separate disclosure of the
nature and amounts of items of income or
expense that are material, either on the face
of the statement of comprehensive income or
in the notes. There is a risk that items may be
included or excluded from the non-trading
and exceptional items that may result in a
misleading interpretation of the performance
of the business. Additionally, there is
judgement involved in application of IFRS 5
criteria to determine the appropriate
allocation of the loss on disposal and items
to be included within loss from discontinued
operations in the Income Statement.
The determination of which items of
income or expense should be presented
within non-trading and exceptional items
and discontinued operations is judgemental
and could be subject to management bias.
We therefore consider the classification of
these items to be a key audit matter.
Our procedures included the following:
• We have corroborated the existence and measurement of non-trading and exceptional
items by agreeing to supporting documentation on a sample basis;
• We assessed the classification of such items by considering the definitions per the
Group’s accounting policy for non-trading and exceptional items and whether such
classification is consistent with IAS 1, along with the guidance issued by the Financial
Reporting Council on exceptional items and Alternative Performance Measures;
• We analysed ‘one-off’ items included within underlying performance for the year to
obtain understanding of each in order to determine if any should be presented as
‘exceptional’ by virtue of size or nature;
• We completed a stand-back assessment on accrual movements by key divisions to
assess the consistent treatment of such items;
• Considered if additional disclosure of ‘one-off’, non-trading & exceptional items was
needed to assist with users understanding of financial performance;
• For the discontinued operation, we critically assessed the proposed terms of the
disposal against the requirements of IFRS 5 to evaluate if the accounting treatment as
discontinued operations was appropriate;
• We assessed the appropriateness of presentation of revenue and costs of the UK
Municipal division as discontinued based on the nature of the revenue and costs;
Key observations:
Based on the procedures performed, we consider the presentation and disclosure of
non-trading and exceptional items and discontinued operations to be reasonable.
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Key audit matter
How the scope of our audit addressed the key audit matter
Going concern
(Section 1 of the financial statements)
Four key factors have required greater
consideration in the Directors’ going
concern assessment:
1. Decline in waste volumes and associated
revenues in the year ending 31 March 2024;
2. Repayment of a €75m retail bond in July
2024;
3. Securing commitment for a replacement
€120m loan available from July 2024; and
4. €154m expected cash outflow on the
completion of the UK Municipal
divestment in September 2024.
Given the importance of the above, we have
assessed the impact of these factors on the
Directors’ going concern assessment and
therefore considered the going concern
assumption to be a significant audit risk
and a key audit matter.
Our procedures included the following:
• Understanding the processes & controls within the Group regarding going concern
forecast preparation, review & board approval to determine if it is appropriate;
• Considering the Group’s historical performance and accuracy of previous forecasts
to assess the ability to forecast accurately;
• Assessing the arithmetical accuracy of financial models used by the Group to
prepare the forecast, including use of proprietary spreadsheet interrogation tools
on the models;
• Assessing and, where possible, verifying key assumptions to supporting documents
that underpin the going concern forecasts to assess their reasonableness;
• Understanding the Group’s existing & proposed finance facilities and their key
covenants through inspection of facility agreements to assess if the forecast
considers these covenants
• Inspecting the signed €120m loan commitment letter from three leading
international banks & assessing any key conditions precedent to determine if this
has been considered in the forecast;
• Understanding the nature & cashflow implications of the proposed UK Municipal
divestment transaction from a review of signed term sheets, cashflow modelling &
enquiry with management, legal & deal advisors;
• Assessing forecasted future covenant compliance and levels of facility & covenant
headroom to determine if there will be any breach;
• Considered results of downside scenarios and ability of the Directors to implement
mitigating actions included in each, including agreeing cost saving actions proposed
to detailed plans and documentation, where possible;
• Analysed sensitivity of the forecasts for more severe downsides & introduction of
other mitigating actions by using our knowledge of the business, taking into
consideration the historical results and the overall market;
• Considered an alternative scenario of the Group not completing the proposed
transaction for disposal of UK Municipal & the resulting impact on the cashflows;
• Assessed the adequacy and appropriateness of the Directors’ going concern
disclosures to check if they reflect the significant judgements involved.
Key observations:
Our conclusions are set out in the Conclusions related to going concern section of
our report.
Valuation of key onerous
contract provisions
(Section 6, Note 6.4 and Section 4,
Note 4.10 of the financial statements)
Provisions are recognised for onerous
contracts which involve significant
estimation uncertainty and can be
susceptible to significant value changes
based on small changes in assumptions.
The provisions are based on medium-long
term time horizons (4 – 16 years) and are
often influenced by market factors that
are outside of management’s control
(eg recyclate prices or cost inflation).
We considered the valuation of these
provisions and associated disclosures to
represent a significant audit risk and key
audit matter.
Our procedures included the following:
• Obtained the onerous contract models used to determine the carrying value of
provisions and applied our own proprietary data analytics tools to interrogate the
accuracy and integrity of those models;
• Discussed with divisional management the process used to update onerous contract
model assumptions, to understand the rigour and expertise involved in building up
the cash flow forecasts;
• With the assistance of our internal valuations experts, we assessed the
appropriateness of discount rates used by comparison with government bond
yields over a consistent timeframe, and by benchmarking;
• Considered management’s forecasting ability in light of actual outturn versus
historical forecasting;
• Considered the consistency of onerous contract modelling with the forecasts used
in other areas;
• Corroborated assumptions used in the models, including forecast tonnage with
historical actuals and recyclate pricing on variable revenue streams to recently
achieved levels as well as corroboration of inflation assumptions to published
expectations of inflation;
• Performed sensitivity analysis on key inputs (notably recyclate pricing, discount rates
and volumes of waste processed), in order to understand how sensitive the model is
to these inputs;
158 Renewi plc Annual Report and Accounts 2024
Key audit matter
How the scope of our audit addressed the key audit matter
Valuation of key onerous contract
provisions (Section 6, Note 6.4 and
Section 4, Note 4.10 of the financial
statements) continued
• Enquired with management, legal & deal advisors whether due diligence for the disposal
of UK Municipal had identified any significant viewpoint inconsistency in the onerous
contract models used or associated liabilities; and
• Considered the appropriateness of the sensitivity disclosures included in the notes to
the financial statements in connection with the onerous contracts in line with the
requirements of the applicable accounting framework.
Key observations:
Based on the testing performed, the Group’s estimate of the onerous contract provision
falls within an acceptable range as at 31 March 2024, and we have not identified any
indicator that suggests that the related disclosures are inappropriate.
Valuation of landfill provisions (Section
4, Note 4.10 of the financial statements)
The Group incurs legal and constructive
obligations for restoration and aftercare
activities for landfill sites in a number of
locations and components. Legislative
requirements for restoration and
environmental remediation activities
vary between location and stage of
operation of the landfill sites.
The Group has disclosed that the
determination of the provisions is a key
source of estimation uncertainty, in particular:
• The period of aftercare post-closure;
• The level of costs and impact of inflation,
legislation and technology;
• The timings of cash outflows; and
• The discount rate applied to calculate
the provisions.
Due to the significant value of the provisions,
the long-term nature of estimated costs and
the significant judgements and assumptions
that are applied as above, the valuation of
these provisions is considered to be a key
audit matter.
Our procedures included the following:
• Evaluated the scope, competence and objectivity of management’s external experts,
who assist with determining cost estimates and volumes, as well as methodology of
discount rate determination, by examining the work they were involved in, their
professional qualifications and relevant experience;
• Compared a sample of previous forecast assumptions to actual costs incurred to
assess management’s ability to accurately forecast closure & associated costs;
• Assessed the appropriateness of differences in assumptions between landfill sites
including timing of costs considered;
• With the assistance of our internal valuations experts we evaluated the discount rates
used and verified source data to government bond yields;
• Enquired with our landfill expert to identify if there were any regulatory updates that
could impact the provisions, as well as having the expert review management’s landfill
technical papers to assess, inter alia, cost assumptions, in order to determine if these
were within an appropriate range;
• Considered completeness of disclosure, including sensitivity of provisions to changes
in key assumptions and the estimation uncertainty involved in the determination of the
discount rate in line with the requirements of the applicable accounting framework.
Key observations:
Based on the procedures performed, the Group’s estimate of the landfill provisions falls
within an acceptable range at 31 March 2024 and we have not identified any indicator
that suggests that the related disclosures are inappropriate.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider
materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users
that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level,
performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be
evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their
occurrence, when evaluating their effect on the financial statements as a whole.
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Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality
as follows:
Group financial statements
Parent company financial statements
2024
€m
2023
€m
2024
€m
2023
€m
Materiality
5.3
6.2
2.7
5.35
Basis for determining
materiality
5% underlying
EBIT
5% underlying
EBIT
50% of Group materiality
98% of Group materiality
Rationale for the
benchmark applied
The Group is profit seeking, therefore
a profit-based measure is considered
to be most appropriate.
Materiality was capped at 50%
of Group materiality to take into
account component
aggregation risk.
Materiality was capped at 98%
of Group materiality to take into
account component
aggregation risk.
Performance materiality
3.70
4.30
1.89
3.40
Basis for determining
performance materiality
70% of overall
materiality
70% of overall
materiality
70% of overall materiality
70% of overall materiality
Rationale for the
percentage applied for
performance materiality
The percentage applied was determined after consideration of factors including the level of past
misstatements, value of brought forward adjustments, management’s attitude toward proposed
adjustments and number of accounts that are subject to estimation.
Component materiality
For the purposes of our Group audit opinion, we set materiality for each significant component of the Group, apart from the
Parent Company whose materiality is set out above, based on a percentage of between 19% and 89% (2023: 19% and 89%) of Group
materiality dependent on the size and our assessment of the risk of material misstatement of that component. Component materiality
ranged from €1.0m to €4.8m (2023: €1.2m to €5.5m). In the audit of each component, we further applied performance materiality levels
of 70% (2023: 70%) of the component materiality to our testing to ensure that the risk of errors exceeding component materiality was
appropriately mitigated.
The component materiality used for the Parent Company is lower than the materiality that we would otherwise have determined using
a benchmark of 2% of net assets. Materiality was therefore restricted to 50% (2023: 98%) Group materiality.
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit differences in excess of €0.21m (2023: €0.24m).
We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in the Annual Report
and Accounts 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Corporate governance statement
The Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the parent company’s compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.
160 Renewi plc Annual Report and Accounts 2024
Going concern and
longer-term viability
• The Directors’ statement with regards to the appropriateness of adopting the going concern basis of
accounting as a set out on page 149 and Section 1 of the financial statements; and
• The Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment
covers and why the period is appropriate as set out on page 149.
Other Code provisions
• Directors’ statement on fair, balanced and understandable as set out on page 108;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks as
set out on page 108;
• The section of the annual report that describes the review of effectiveness of risk management and
internal control systems as set out on page 108; and
• The section describing the work of the audit committee as set out on pages 119 to 124.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies
Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Strategic report and
Directors’ report
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
• the Strategic report and the Directors’ report have been prepared in accordance with applicable
legal requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report
or the Directors’ report.
Directors’ remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Corporate governance
statement
In our opinion, based on the work undertaken in the course of the audit the information about internal
control and risk management systems in relation to financial reporting processes and about share capital
structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Guidance and Transparency
Rules sourcebook made by the Financial Conduct Authority (the FCA Rules), is consistent with the
financial statements and has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in this information.
In our opinion, based on the work undertaken in the course of the audit information about the Parent
Company’s corporate governance code and practices and about its administrative, management and
supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.
We have nothing to report arising from our responsibility to report if a corporate governance statement
has not been prepared by the Parent Company.
Matters on which we
are required to report
by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit
have not been received from branches not visited by us; or
• the Parent Company financial statements and the part of the Directors’ remuneration report to be audited
are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
European Single Electronic Format (ESEF)
The Annual Report and Accounts has been prepared in ESEF, pursuant to the Commission Delegated Regulation (EU) 2019/815 of
17 December 2018, supplementing Directive 2004/109/EC of the European Parliament and the Council. The requirements to be met
are set out in the aforementioned delegated regulation (these requirements are hereinafter referred to as: the RTS on ESEF).
In our opinion, the Annual Report and Accounts, made up in XHTML format, including the tagged consolidated financial statements
as included in the reporting package, have been prepared in all material aspects in accordance with the RTS on ESEF.
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Management is responsible for preparing the Annual Report and Accounts, including the financial statements, in accordance with
the RTS on ESEF, whereby management combines the various components in a reporting package. Our responsibility is to obtain
reasonable assurance for our conclusion on whether the Annual Report and Accounts in this reporting package, is in accordance
with the requirements. We have taken into consideration what is stated in Alert 43.
Our procedures included:
• Obtaining an understanding of the entity’s financial reporting process, including the preparation of the annual financial report in
XHTML-format;
• Obtaining the reporting package and performing validations to determine whether the reporting package containing the inline XBRL
instance document and XBRL extension taxonomy files have been prepared in accordance with the technical specifications; and
• Examining the information related to the consolidated financial statements in the reporting package to determine whether all
required taggings have been applied and whether they are in accordance with the RTS on ESEF.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors 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’s and the Parent Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have 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 (UK) 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.
Extent to which the audit was 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 material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on our understanding of the Group and the industry in which it operates; discussion with management and those charged with
governance, internal legal counsel, internal audit and obtaining an understanding of the Group’s policies and procedures regarding
compliance with laws and regulations we considered the significant laws and regulations to be:
• UK adopted international accounting standards;
• UK, Dutch & Belgian tax legislation;
• Listing Rules of the Financial Conduct Authority;
• The Companies Act 2006; and
• EU regulation regarding landfill and related taxes.
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the
amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws
and regulations to be:
• Health and safety legislation;
• Environmental regulations related to the waste industry;
• Employment law;
• General Data Protection Regulations (GDPR); and
• Bribery Act.
Our procedures in respect of the above included:
• Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;
• Review of litigation reports & summaries provided to the Audit Committee;
• Review of internal audit reports (“Integrity reports”) during the year to identify material reports of non-compliance with laws and regulations;
• Review of correspondence with regulatory and tax authorities for material instances of non-compliance with laws and regulations;
• Review of financial statement disclosures and agreeing to supporting documentation;
162 Renewi plc Annual Report and Accounts 2024
• Involvement of tax specialists in the audit to assist with quantification of uncertain tax positions, deferred and current tax positions;
• Specific enquiries with management & internal legal counsel;
• Obtaining direct confirmations from the Group’s external legal advisors to assess incidence of non-compliance with relevant laws
or regulation.
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment
procedures included:
• Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
• Obtaining an understanding of the Group’s policies and procedures relating to:
• Detecting and responding to the risks of fraud; and
• Internal controls established to mitigate risks related to fraud.
• Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;
• Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement
due to fraud;
• Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these; and
• Involvement of forensic specialists in the audit to assist in our risk assessment relating to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be relating to management bias in determining
accounting estimates and judgements (the most significant of which are outlined in our key audit matters above) and through the
recording of inappropriate journal entries.
Our procedures in respect of the above included:
• Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
• Assessing significant estimates made by management for bias, refer to key audit matters for detail on audit procedures relating to the
most significant accounting estimates; and
• Detailed verification of consolidation level journal entries through enquiry with management and corroboration to supporting
documents where relevant.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members (including
component engagement teams) who were all deemed to have appropriate competence and capabilities and remained alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit. For component engagement teams, we also
reviewed the result of their work performed in this regard.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit
procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected
in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the Parent 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 Parent Company and the Parent Company’s members as a body, for our audit work, for this report, or for the
opinions we have formed.
Mark Cardiff (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
30 May 2024
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Renewi plc Annual Report and Accounts 2024
163
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Governance report
Financial statements
Other information
2024
Restated*
2023
Note
Underlying
€m
(note 3.3)
Non-trading
& exceptional
items
€m
Total
€m
Underlying
€m
(note 3.3)
Non-trading &
exceptional
items
€m
Total
€m
Revenue
2,3.1
1,689.2
–
1,689.2
1,703.9
–
1,703.9
Cost of sales
3.3
(1,351.2)
(4.6)
(1,355.8)
(1,352.6)
(7.3)
(1,359.9)
Gross profit (loss)
338.0
(4.6)
333.4
351.3
(7.3)
344.0
Administrative expenses
3.3
(232.5)
(3.3)
(235.8)
(219.6)
17.1
(202.5)
Operating profit (loss)
2,3
105.5
(7.9)
97.6
131.7
9.8
141.5
Finance income
5.4
1.5
–
1.5
0.9
–
0.9
Finance charges
5.4
(39.5)
–
(39.5)
(27.7)
–
(27.7)
Share of results from associates
and joint ventures
4.4
0.5
–
0.5
0.3
–
0.3
Profit (loss) before taxation
68.0
(7.9)
60.1
105.2
9.8
115.0
Taxation
3.4
(16.1)
1.2
(14.9)
(30.8)
1.8
(29.0)
Profit (loss) for the year from
continuing operations
51.9
(6.7)
45.2
74.4
11.6
86.0
Discontinued Operations
(Loss) profit for the year from
discontinued operations
6.4
(3.5)
(72.6)
(76.1)
1.2
(20.6)
(19.4)
Profit (loss) for the year
48.4
(79.3)
(30.9)
75.6
(9.0)
66.6
Attributable to:
Owners of the parent
45.2
(79.3)
(34.1)
71.9
(9.0)
62.9
Non-controlling interests
5.9
3.2
–
3.2
3.7
–
3.7
48.4
(79.3)
(30.9)
75.6
(9.0)
66.6
Earnings per share – total (loss) profit attributable to owners of the parent
Note
2024
cents
2023
cents
Basic and diluted
3.5
(43)
79
Underlying basic and diluted
3.5
57
90
Earnings per share – profit from continuing operations attributable to owners of the parent
Basic and diluted
3.5
53
104
Underlying basic and diluted
3.5
61
89
*
The 2023 comparatives have been restated to reclassify discontinued operations and details are given in Section 1 Basis of preparation and note 6.4.
The notes on pages 171 to 243 are an integral part of these consolidated financial statements.
Consolidated Income Statement
For the year ended 31 March 2024
Financial statements
164 Renewi plc Annual Report and Accounts 2024
Note
2024
€m
Restated*
2023
€m
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign subsidiaries
5.6
(8.0)
Exchange differences on translation of discontinued operations
(7.8)
10.5
Fair value movement on cash flow hedges
5.5
3.1
(8.6)
Fair value movement on cash flow hedges of discontinued operations
5.5
1.1
12.3
Deferred tax on fair value movement on cash flow hedges
3.4
(0.8)
2.3
Deferred tax on fair value movement on cash flow hedges of discontinued operations
3.4
(0.3)
(1.6)
Share of other comprehensive income of investments of discontinued operations accounted for using
the equity method
4.4
0.1
0.3
1.0
7.2
Items that will not be reclassified to profit or loss:
Actuarial loss on defined benefit pension schemes
7.2
(6.7)
(15.5)
Deferred tax on actuarial loss on defined benefit pension schemes
3.4
1.7
3.8
Fair value movement on unlisted investments through other comprehensive income
4.4
1.8
–
Deferred tax on fair value movement on unlisted investments above
3.4
(0.1)
–
(3.3)
(11.7)
Other comprehensive (loss) income for the year, net of tax
(2.3)
(4.5)
(Loss) profit for the year
(30.9)
66.6
Total comprehensive (loss) income for the year
(33.2)
62.1
Attributable to:
Owners of the parent
(36.4)
58.4
Non-controlling interests
3.2
3.7
Total comprehensive (loss) income for the year
(33.2)
62.1
Total comprehensive income (loss) attributable to owners of the parent arising from:
Continuing operations
46.6
56.3
Discontinued operations
(83.0)
2.1
(36.4)
58.4
*
The 2023 comparatives have been restated to reclassify discontinued operations and details are given in Section 1 Basis of preparation and note 6.4.
The notes on pages 171 to 243 are an integral part of these consolidated financial statements.
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2024
Renewi plc Annual Report and Accounts 2024
165
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Financial statements
Other information
Note
31 March 2024
€m
31 March 2023
€m
Assets
Non-current assets
Goodwill and intangible assets
4.1
633.5
636.3
Property, plant and equipment
4.2
618.7
617.9
Right-of-use assets
4.3
253.9
253.1
Investments in joint ventures and associates (restated*)
4.4
9.0
10.2
Other investments (restated*)
4.4
17.7
4.6
Loans to associates and joint ventures
4.4
0.4
0.2
Financial assets relating to PPP contracts
4.5
–
123.4
Derivative financial instruments
5.5
0.1
1.2
Other receivables
4.8
1.1
3.7
Deferred tax assets
3.4
28.0
35.6
1,562.4
1,686.2
Current assets
Inventories
4.7
23.4
25.2
Investments
4.4
–
10.9
Loans to associates and joint ventures
4.4
0.6
0.8
Financial assets relating to PPP contracts
4.5
–
7.6
Trade and other receivables
4.8
245.6
289.6
Derivative financial instruments
5.5
1.3
0.4
Current tax receivable
6.2
1.5
Cash and cash equivalents – including restricted cash
5.2
79.0
62.7
356.1
398.7
Assets classified as held for sale
6.3
137.7
0.6
493.8
399.3
Total assets
2,056.2
2,085.5
Liabilities
Non-current liabilities
Borrowings
5.3
(574.4)
(681.6)
Derivative financial instruments
5.5
–
(2.6)
Other non-current liabilities
4.9
(11.0)
(34.7)
Defined benefit pension schemes deficits
7.2
(12.9)
(9.3)
Provisions
4.10
(177.5)
(298.2)
Deferred tax liabilities
3.4
(44.9)
(46.4)
(820.7)
(1,072.8)
*
Restated to show investments in joint ventures and associates separately with details given in Section 1 Basis of preparation and note 4.4.
Consolidated Balance Sheet
As at 31 March 2024
Financial statements continued
166 Renewi plc Annual Report and Accounts 2024
Consolidated Balance Sheet continued
As at 31 March 2024
Ben Verwaayen
Chairman
Annemieke den Otter
Chief Financial Officer
Note
31 March 2024
€m
31 March 2023
€m
Current liabilities
Borrowings
5.3
(120.6)
(66.8)
Derivative financial instruments
5.5
–
(1.9)
Trade and other payables
4.9
(473.9)
(521.8)
Current tax payable
(20.5)
(31.2)
Provisions
4.10
(21.5)
(43.7)
(636.5)
(665.4)
Liabilities of disposal group classified as held for sale
6.4
(285.0)
–
(921.5)
(665.4)
Total liabilities
(1,742.2)
(1,738.2)
Net assets
314.0
347.3
Issued capital and reserves attributable to the owners of the parent
Share capital
5.9
100.1
99.8
Share premium
5.9
474.5
474.1
Exchange reserve
5.9
(14.4)
(12.2)
Retained earnings
5.9
(259.2)
(224.5)
301.0
337.2
Non-controlling interests
5.9
13.0
10.1
Total equity
314.0
347.3
*
Restated to show investments in joint ventures and associates separately with details given in Section 1 Basis of preparation and note 4.4.
The notes on pages 171 to 243 are an integral part of these consolidated financial statements.
The Financial Statements on pages 164 to 243 were approved by the Board of Directors and authorised for issue on 30 May 2024.
They were signed on its behalf by:
Renewi plc Annual Report and Accounts 2024
167
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Financial statements
Other information
Note
Share
capital
€m
Share
premium
€m
Exchange
reserve
€m
Retained
earnings
€m
Non-
controlling
interests
€m
Total
equity
€m
Balance at 1 April 2023
99.8
474.1
(12.2)
(224.5)
10.1
347.3
(Loss) profit for the year
–
–
–
(34.1)
3.2
(30.9)
Other comprehensive income (loss):
Exchange loss on translation of foreign subsidiaries
–
–
(2.2)
–
–
(2.2)
Fair value movement on cash flow hedges
5.5
–
–
–
4.2
–
4.2
Actuarial loss on defined benefit pension schemes
7.2
–
–
–
(6.7)
–
(6.7)
Fair value movement on unlisted investments
4.4
–
–
–
1.8
–
1.8
Tax in respect of other comprehensive income items
3.4
–
–
–
0.5
–
0.5
Share of other comprehensive income of investments
accounted for using the equity method
4.4
–
–
–
0.1
–
0.1
Total comprehensive (loss) income for the year
–
–
(2.2)
(34.2)
3.2
(33.2)
Dividend paid to non-controlling interests
5.9
–
–
–
–
(0.3)
(0.3)
Share-based compensation
7.3
–
–
–
1.2
–
1.2
Proceeds from exercise of employee options
5.9
0.3
0.4
–
–
–
0.7
Own shares purchased by the Employee Share Trust
5.9
–
–
–
(1.7)
–
(1.7)
Balance as at 31 March 2024
100.1
474.5
(14.4)
(259.2)
13.0
314.0
Balance at 1 April 2022
99.5
473.8
(14.7)
(276.9)
7.0
288.7
Profit for the year
–
–
–
62.9
3.7
66.6
Other comprehensive income (loss):
Exchange gain on translation of foreign subsidiaries
–
–
2.5
–
–
2.5
Fair value movement on cash flow hedges
5.5
–
–
–
3.7
–
3.7
Actuarial loss on defined benefit pension schemes
7.2
–
–
–
(15.5)
–
(15.5)
Tax in respect of other comprehensive income items
3.4
–
–
–
4.5
–
4.5
Share of other comprehensive income of investments
accounted for using the equity method
4.4
–
–
–
0.3
–
0.3
Total comprehensive income for the year
–
–
2.5
55.9
3.7
62.1
Dividend paid to non-controlling interests
5.9
–
–
–
–
(0.6)
(0.6)
Share-based compensation
7.3
–
–
–
2.7
–
2.7
Movement on tax arising on share-based compensation
–
–
–
(0.9)
–
(0.9)
Proceeds from exercise of employee options
5.9
0.3
0.3
–
–
–
0.6
Own shares purchased by the Employee Share Trust
5.9
–
–
–
(5.3)
–
(5.3)
Balance as at 31 March 2023
99.8
474.1
(12.2)
(224.5)
10.1
347.3
The notes on pages 171 to 243 are an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
Financial statements continued
168 Renewi plc Annual Report and Accounts 2024
Note
2024
€m
Restated*
2023
€m
Profit before tax from continuing operations
60.1
115.0
Finance income
(1.5)
(0.9)
Finance charges
39.5
27.7
Share of results from associates and joint ventures
(0.5)
(0.3)
Operating profit from continuing operations
97.6
141.5
Operating loss from discontinued operations
6.4
(60.0)
(20.1)
Impairment of non-current assets within disposal group
6.4
63.5
–
Amortisation and impairment of intangible assets
4.1
12.4
10.5
Depreciation and impairment of property, plant and equipment
4.2
71.3
69.5
Depreciation and impairment of right-of-use assets
4.3
53.2
49.1
Impairment of investment in associate
4.4
–
0.9
Net gain on disposal of property, plant and equipment and intangible assets
(1.9)
(3.0)
Portfolio management and provision movements in non-trading and exceptional items
3.3
(13.2)
19.9
Net decrease in provisions
4.10
(20.4)
(34.1)
Payment related to committed funding of the defined benefit pension schemes
7.2
(3.5)
(3.5)
Share-based compensation
7.3
1.2
2.7
Operating cash flows before movement in working capital
200.2
233.4
Increase in inventories
(1.2)
(2.1)
Decrease (increase) in receivables
4.8
15.7
(12.2)
Decrease in payables
4.9
(9.7)
(9.5)
Cash flows from operating activities
205.0
209.6
Income tax paid
(36.3)
(21.2)
Net cash inflow from operating activities
168.7
188.4
Investing activities
Purchases of intangible assets
4.1
(13.3)
(9.9)
Purchases of property, plant and equipment
4.2
(86.1)
(115.0)
Proceeds from disposals of property, plant and equipment
4.2
20.2
6.8
Acquisition of subsidiary, net of cash acquired
6.1
(1.4)
(53.5)
Disposal of subsidiary and business assets net of acquisition of business assets
6.2, 3.3
1.6
1.1
Net movements in associates, joint ventures and other short-term investments
(0.2)
(1.3)
Outflows in respect of PPP arrangements under the financial asset model net of capital received
5.9
6.0
Finance income
10.8
10.6
Net cash outflow from investing activities
(62.5)
(155.2)
*
The 2023 comparatives have been restated to reclassify discontinued operations and details are given in Section 1 Basis of preparation and note 6.4.
Consolidated Statement of Cash Flows
For the year ended 31 March 2024
Renewi plc Annual Report and Accounts 2024
169
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Governance report
Financial statements
Other information
Financial statements continued
Note
2024
€m
Restated*
2023
€m
Financing activities
Finance charges and loan fees paid
(41.9)
(31.3)
Investment in own shares by the Employee Share Trust
5.9
(1.7)
(5.3)
Proceeds from share issues
5.9
0.7
0.6
Dividend paid to non-controlling interest
5.9
(0.3)
(0.6)
Repayment of retail bonds
5.1
–
(100.0)
Proceeds from bank borrowings
5.1
439.5
565.0
Repayment of bank borrowings
5.1
(402.1)
(405.6)
Repayment of PPP debt
5.1
(5.3)
(8.1)
Repayments of obligations under lease liabilities
5.1
(55.3)
(47.5)
Net cash outflow from financing activities
(66.4)
(32.8)
Net increase in cash and cash equivalents
39.8
0.4
Effect of foreign exchange rate changes
1.0
(1.3)
Cash and cash equivalents at the beginning of the year
62.7
63.6
Cash and cash equivalents at the end of the year
103.5
62.7
Cash and cash equivalents at the end of the year
Cash and cash equivalents – relating to continuing operations
5.2
79.0
62.7
Cash and cash equivalents – within assets held for sale
6.4
24.5
–
103.5
62.7
*
The 2023 comparatives have been restated to reclassify discontinued operations and details are given in Section 1 Basis of preparation and note 6.4.
The notes on pages 171 to 243 are an integral part of these consolidated financial statements.
Consolidated Statement of Cash Flows continued
For the year ended 31 March 2024
170 Renewi plc Annual Report and Accounts 2024
SECTION 1. Basis of preparation
This section provides general information about the Group and the accounting policies that apply to the consolidated financial
statements as a whole. Accounting policies that are specific to a particular note are provided within the note to which they
relate. This section also details the new or amended accounting standards adopted during the year, as well as the anticipated
impact of future changes to accounting standards that are not yet effective.
Renewi plc is a public limited company listed on the London Stock Exchange with a secondary listing on Euronext Amsterdam. Renewi plc
is incorporated and domiciled in Scotland under the Companies Act 2006, registered number SC077438 and the address of the registered
office is given on page 275. The nature of the Group’s operations and its principal activities are set out in section 2.
The consolidated financial statements of the Group are prepared in accordance with UK adopted international accounting standards
in conformity with the requirements of the Companies Act 2006.
The consolidated financial statements have been prepared on the historical cost basis, except for derivative financial instruments, other
receivables relating to invoice finance facilities, share-based payments, plan assets within pension schemes, unlisted investments and
investment funds which are stated at fair value. The accounting policies adopted in the consolidated financial statements have been
consistently applied across the periods. The Group has applied all accounting standards and interpretations issued relevant to its
operations and effective for accounting periods beginning on 1 April 2023. The consolidated financial statements are presented in
Euros and all amounts are rounded to the nearest €0.1m unless otherwise stated.
Going concern
The Directors have adopted the going concern basis in preparing these consolidated financial statements after assessing the Group’s
principal risks including an assessment of the impact of adverse macroeconomic conditions and the funding required for the UK
Municipal divestment.
The Directors have carried out a comprehensive assessment of the Group’s ability to continue as a going concern. This assessment
has involved the review of medium-term cash flow and covenant modelling over a 24-month period to 31 March 2026. This includes
expectations on the future economic environment as well as other principal risks associated with the Group’s ongoing operations
including the expected cash outflow including transaction costs of €154m on the completion of the UK Municipal divestment and
the planned repayment of €75m retail bonds in July 2024 and €10m EUPP repayment in December 2025. The assessment includes a
base case scenario setting out the Directors’ current expectations of future trading and a downside scenario to assess the potential
impact on the Group’s future financial performance.
The key judgement in both scenarios is the possibility of weaker macroeconomic conditions, delivery of the year on year profit
enhancements together with the Group’s ability to finance the funding of the UK Municipal exit and settle all other funding repayments
as they fall due. The repayment of the €75m retail bond in July 2024 will be financed by drawdown on the Group’s revolving credit facility
whilst retaining significant liquidity headroom. As set out in the borrowings section, the Group had unutilised committed borrowings of
€226.5m at 31 March 2024 available for drawdown subject to the financial covenants. The key financial covenants are leverage ratio which
is based on net debt to covenant defined EBITDA and interest cover which is the ratio of covenant defined interest to covenant defined
EBIT. The funding for the UK Municipal divestment is forecast to be required in September 2024 and to ensure sufficient headroom is in
place the Group has obtained a signed commitment letter for a €120m bridge facility with three of its existing lenders. On completing
the relevant facility agreements that will be based on the Group’s existing green finance facility agreement and covenants, the bridge
facility will be available for drawdown as and when required and is expected to be in place by July 2024. In addition to this, the Group
will continue to utilise its invoice discounting facility whereby certain of its trade receivables are sold for an upfront cash payment on
a regular basis as disclosed in note 4.8 in the consolidated financial statements. Post this transaction in the base case the Group has
sufficient liquidity and headroom in its banking facilities and no covenants are breached at any of the forecast testing dates.
The downside scenario includes significantly weaker macroeconomic conditions leading to volume declines below the forecast economic
outlook in all our territories in the current year and into FY26. Other downsides include a decline in recyclate prices from the current levels
to below long-term averages along with operational downtime in some of our plants and reduced delivery of additional cost savings and
operational improvements. These adverse factors before any mitigating actions reduce FY25 and FY26 underlying EBIT by 33% and 30%
respectively compared to the base case. A number of mitigating actions have been applied to our downside modelling reducing the
underlying EBIT shortfall in FY25 to 16% lower than the base case. These include the postponement of growth capital expenditure,
reduction in certain SG&A costs and central contingencies and the rephasing of certain project costs. In this downside scenario the Group
retains sufficient liquidity headroom in its banking facilities. The leverage covenant is not breached at any of the forecast testing dates.
The interest cover covenant falls close to its covenant level at March 2025 and then starts to increase throughout FY26. There are other
possible restructuring programmes under consideration that could be instigated which have not been included in this downside scenario.
Given that the interest cover covenant ends up close to its covenant level in the downside scenario a reverse stress test calculation has not
been performed.
Notes to the financial statements
Renewi plc Annual Report and Accounts 2024
171
Strategic report
Governance report
Financial statements
Other information
SECTION 1. Basis of preparation continued
Having considered all the key judgements around the financial projections, including the availability of financing and the achievability
of mitigating actions included and other levers not included, the Directors confirm they have a reasonable expectation that the Group
has adequate resources to continue in operational existence for the foreseeable future and to meet all banking covenants.
In accordance with Provision 31 of the UK Corporate Governance Code, the Directors have also assessed the prospects and financial
viability of the Company for a period longer than the 12 months from the approval of the financial statements required in the going
concern assessment. Further details are provided in the Viability Statement on page 77.
Changes in presentation
Discontinued operations – On 28 September 2023 the Group announced that a comprehensive review of the UK Municipal business
was being undertaken, and it was exploring a range of options to achieve an exit from this segment. Towards the end of March 2024,
the Board decided to pursue a conclusion with the preferred party and as a result, on 30 May 2024, the Group has entered into a
binding agreement to sell UK Municipal to Biffa Limited, a leading UK-wide integrated waste management business. The criteria for
asset held for sale have been met after the Board meeting in March 2024 and therefore the UK Municipal assets and liabilities are
presented as held for sale. The UK Municipal disposal (previously reported within the Specialities division) meets the definition of a
discontinued operation as stated in IFRS 5 Non-current assets held for sale and discontinued operations, therefore the net results are
presented as discontinued operations in the Income Statement and the prior year Income Statement, Statement of Comprehensive
Income, Statement of Cash Flows and related notes have been restated.
Investments in joint ventures and associates – in the prior year the investments in joint ventures and associates were combined
with other unlisted investments on the face of the balance sheet under the heading ‘Investments’ and only shown separately within
note 4.4. In the current year management have improved the disclosure by showing investments in joint ventures and associates
separately on the face of the balance sheet.
Adoption of new and revised accounting standards
No accounting standards, amendments or revisions to existing standards or interpretations have been effective which had a significant
impact on the Group’s consolidated financial results or position.
The amendment to IAS 1 Disclosure of Accounting Policies requires companies to disclose their material accounting policy information
rather than their significant accounting policies. The result of applying the amended requirements is to reduce the volume of
accounting policies disclosed.
New standards and interpretations not yet adopted
Standards and interpretations issued by the International Accounting Standards Board (IASB) are only applicable if endorsed by the
UK Endorsement Board (UKEB). At the date of approval of these financial statements there were no new IFRSs or IFRS Interpretation
Committee interpretations which were early adopted by the Group.
The following amendments are effective for the period beginning 1 April 2024:
• IAS 7/IFRS 7 (Amendment – Disclosure of Supplier Finance Arrangements)
• IFRS 16 (Amendment – Lease Liability in a Sale and Leaseback)
• IAS 1 Presentation of Financial Statements (Amendment – Classification of Liabilities as Current or Non-current)
• IAS 1 Presentation of Financial Statements (Amendment – Non-current Liabilities with Covenants)
The following amendments are effective for the period beginning 1 April 2025:
• IAS 21 The Effects of Changes in Foreign Exchange Rates (Amendment – Lack of Exchangeability)
The Group does not expect a significant impact from any of the new accounting standards and amendments.
Notes to the financial statements continued
172 Renewi plc Annual Report and Accounts 2024
SECTION 1. Basis of preparation continued
Basis of consolidation
The consolidated financial statements incorporate the financial statements of Renewi plc (the Company), all its subsidiary undertakings
(subsidiaries) and the Group’s interests in joint ventures, associates and joint operations.
Subsidiaries are entities which are directly or indirectly controlled by the Group. Control exists where the Group is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Where there is a non-controlling interest this is identified separately from the Group’s equity. Accounting policies of subsidiaries have been
adjusted where necessary to ensure consistency with those used by the Group. The results of subsidiaries acquired or sold during the year
are included in the consolidated financial statements from or up to the date control passes. All intra-group transactions, balances, income
and expenses are eliminated on consolidation.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets
of the arrangement. An associate is an entity, other than a subsidiary or joint venture, over which the Group has significant influence.
Significant influence is the power to participate in the financial and operating decisions of an entity but is not in control or joint control
over those policies. Investments in associates and joint ventures are accounted for using the equity method of accounting and are initially
recognised at cost or, in the case of a disposal of the majority shareholding, at fair value. The cumulative post-acquisition profits or losses
and movements in Other Comprehensive Income are adjusted against the carrying amount of the investment. When the Group’s share of
losses exceeds the carrying amount of the joint venture or associate, the carrying amount is reduced to nil and recognition of further losses
is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint
venture or associate. Accounting policies of associates and joint ventures have been adjusted where necessary to ensure consistency with
the policies of the Group. Where the Group is party to a jointly controlled operation, the Group proportionately accounts for its share of the
income and expenditure, assets and liabilities and cash flows on a line-by-line basis in the consolidated financial statements.
Other investments in entities that are neither associates, joint ventures nor subsidiaries are held at fair value through profit or loss except
for the other unlisted investments that the Group has elected to hold at fair value through Other Comprehensive Income.
Foreign currencies
The financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which
the entity operates (the functional currency). The results and financial position of all the Group entities that have a functional currency
different from the presentation currency of the Group are translated as follows:
• monetary assets and liabilities at each balance sheet date are translated into Euros at the closing year end exchange rate;
• income and expenses in each Income Statement are translated into Euros at the average rate of exchange for the month in which
they occur; and
• equity items are translated at the historical rate being the average rate of exchange in the year when the transaction occurred.
The resulting exchange differences in relation to the Sterling denominated entities are recognised in the exchange reserve in Other
Comprehensive Income.
Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss.
In addition to the Group’s presentational currency of Euros, the most significant currency for the Group is Sterling, with the closing rate
on 31 March 2024 of €1: £0.855 (2023: €1: £0.879) and an average rate for the year ended 31 March 2024 of €1: £0.866 (2023: €1: £0.870).
Cumulative exchange differences are recognised in the Income Statement in the year in which a non-Euro denominated subsidiary
undertaking is sold.
The Group applies the hedge accounting principles of IFRS 9 Financial Instruments relating to net investment hedging to offset the
exchange differences arising on foreign currency denominated borrowings with the translation of foreign operations. Net investment
hedges are accounted for by recognising exchange rate movements in the exchange reserve, with any hedge ineffectiveness being
charged to the Income Statement in the period the ineffectiveness arises.
Critical accounting judgements and estimates
The preparation of financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of assets and liabilities, income and expenditure. The areas involving a higher
degree of judgement or complexity are set out below and in more detail in the related notes. Critical estimates are defined as those that
have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
The estimates and associated assumptions are based on factors including historical experience and expectations of future events that
are considered to be relevant and reasonable. These estimates, assumptions and judgements are reviewed on an ongoing basis.
Renewi plc Annual Report and Accounts 2024
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Financial statements
Other information
SECTION 1. Basis of preparation continued
Judgements in applying the Group’s accounting policies
Use of alternative performance measures – The Group uses alternative performance measures as we believe these measures
provide additional useful information on the underlying trends, performance and position of the Group. These underlying measures
are used by the Group for internal performance analysis and incentive compensation arrangements for employees. The term
‘underlying’ refers to the relevant measure being reported for continuing operations excluding non-trading and exceptional items.
These include underlying earnings before interest and tax (underlying EBIT), underlying profit before tax, underlying profit after tax,
underlying earnings per share and underlying EBITDA (earnings before interest, tax, depreciation and amortisation). The terms ‘EBIT’,
‘EBITDA’, ‘exceptional items’, ‘adjusted’ and ‘underlying’ are not defined terms under IFRS and may therefore not be comparable with
similarly titled profit measures reported by other companies. These measures are not intended to be a substitute for, or superior to,
GAAP measurements of profit. A full list of alternative performance measures together with reconciliations are set out in note 8.3.
Non-trading and exceptional items – In establishing which items are disclosed separately as non-trading and exceptional to enable
a better understanding of the underlying financial performance of the Group, management exercise judgement in assessing the size,
nature or incidence of specific items. A policy for non-trading and exceptional items is followed consistently and is submitted to the
Audit Committee for annual review. See note 3.3 for further details of the costs included within this category.
Assets held for sale and discontinued operations – Management has used judgement to determine that the criteria of IFRS 5
Non-current assets held for sale and discontinued operations have been met, as at 31 March 2024, for the intended disposal of the
UK Municipal business that was underway. Management judgement has also been used when determining whether to include certain
current assets and current liabilities within the UK Municipal disposal group held for sale and in considering the appropriate treatment
of the additional pre-tax loss on remeasurement of the assets held for sale of €63.5m. It is expected that an excess payment is made to
the purchaser, therefore there is an impairment under IFRS 5 above the net liability position. This is first allocated to all in IFRS 5 scope
non-current assets. IFRS 5 does not provide any guidance regarding how to account for any excess of impairment where in-scope
non-current assets are already fully written down. An accounting policy has been adopted where the excess impairment is
allocated to the non-current financial assets relating to PPP contracts.
Key sources of estimation uncertainty
Landfill related provisions – The Group has landfill related provisions of €161.9m (2023: €164.5m). These provisions are long term in
nature and are recognised at the net present value of the best estimate of the likely future cash flows to settle the Group’s obligations.
The period of aftercare post-closure and the level of costs expected are uncertain and could be impacted by changes in inflation,
legislation and technology and can vary significantly from site to site. The timings of cash outflows are uncertain and have been based
on management’s latest expectations. A discount rate is applied to recognise the time value of money and is unwound over the life of
the provision. Details of the discount rates used and sensitivity assumptions are set out in note 4.10.
Onerous contract provisions – Onerous contract provisions arise when the unavoidable costs of meeting contractual obligations
exceed the cash flows expected. The Group has total onerous contract provisions of €131.2m (2023: €141.9m), including those
disclosed within disposal group held for sale, which have been provided for at the lower of the net present value of either exiting the
contract or fulfilling our obligations under the contract. The most significant component of these provisions relates to UK Municipal
PPP contracts which amount to €129.5m (2023: €139.3m), which have now been transferred to the disposal group as shown in note 6.4.
The provisions have been based on the best estimate of likely future cash flows including assumptions on inflationary increases,
tonnage inputs, off-take availability and recyclates pricing. The contracts include revenue inflationary clauses which together with
cost inflation are sources of estimation uncertainty. A discount rate is applied to recognise the time value of money and is unwound
over the life of the provision. Further details including the discount rates used and sensitivity assumptions are set out in note 6.4.
Taxation – In the first instance management will always use deferred tax liabilities, relating to the same tax authority and the
same taxable entity, that are already recognised as a source of taxable profits. The recognition of deferred tax assets in excess of
the reversal of deferred tax liabilities, particularly in respect of tax losses, is based upon management’s judgement in the calculation of
the probable expected taxable profits in the relevant legal entity or tax group against which to utilise the assets in the future. In respect
of tax losses, the time expiry period, if any, is also taken into account in the calculation. The Group assesses the availability of future
taxable profits using available long-term forecasts. The predictability of income streams is taken into consideration in the recognition
of deferred tax assets. The longest period of forecasts used to calculate deferred tax recovery is ten years. This period reflects
management’s estimate of the higher probability profit streams due to income streams from internal receivables which are highly
predictable and likely to continue for the foreseeable future. The intention is to avoid the recognition of a deferred tax asset that is
not ultimately recovered. Provisions have been recognised where necessary in respect of any uncertain tax positions in the Group,
including uncertainty over whether the relevant tax authority will accept the tax treatment and are based upon management’s
evaluation of the potential outcomes of the relevant discussions with the tax authorities. Further details on sensitivity
assumptions are set out in note 3.4.
Notes to the financial statements continued
174 Renewi plc Annual Report and Accounts 2024
SECTION 1. Basis of preparation continued
Other areas of focus
Whilst not considered to be critical accounting judgements or key sources of estimation uncertainty, the following are areas of focus
for management:
Assumptions used to determine the recoverable amount of goodwill and other assets – Impairment testing of goodwill is carried
out annually at a cash generating unit (CGU) level. The Group estimates the recoverable amount of a CGU using a value in use model
which involves an estimation of future cash flows and applying appropriate discount and long-term growth rates. The future cash flows are
derived from approved forecasts which have taken into account current and forecast economic conditions. Details of the key assumptions
and sensitivity analysis are given in note 4.1. The Group assesses the impairment of tangible assets, intangible assets and investments
whenever there is reason to believe that the carrying value may exceed the fair value and where a permanent impairment in value is
anticipated. The determination of whether the impairment of these assets is necessary involves the use of estimates that include, but
is not limited to, the analysis of the cause, the timing and expected future cash flows.
Assumptions used to determine the carrying amount of the Group’s defined benefit pension schemes – The calculation of the
present value of the defined benefit pension schemes is determined by using actuarial valuations based on assumptions including
discount rate, life expectancy and inflation rates. The principal assumptions used to measure the schemes’ liabilities, sensitivities to
changes in those assumptions and future funding obligations are set out in note 7.2.
Waste disposal cost accruals – Management have used judgement in determining the value of disposal cost accruals with a carrying
amount included in accruals and other payables of €45.3m (2023: €51.8m). Included in this is €20.2m (2023: €21.1m) relating to previously
processed soil and other materials at ATM. The value is determined by management’s best estimate after carrying out an assessment of
the cost per tonne to dispose of the waste based on historical transactions, signed contracts, discussions with potential customers and
knowledge of the market, as in some cases there is no observable market data. Management carry out sensitivity analysis on a range of
potential outcomes and an increase or reduction of the cost per tonne by 10% would impact the ATM accrual by €2.0m. It is expected that
the disposal of certain components will take longer than 12 months and consequently €11m has been recorded as a non-current liability.
Consideration of climate change – In preparing the financial statements, the Directors have considered the impact of climate change,
particularly in the context of the risks identified as part of the work on the Taskforce for Climate-related Financial Disclosures (TCFD)
disclosures on pages 78 to 89. Sustainability is recognised as a growth driver for Renewi, directly aligned to its purpose to protect the world
by giving life to used materials, and is considered in all key decisions across all management levels. The Directors have commenced a pilot
quantitative exercise based on certain risks identified in the TCFD disclosures and now have models that greatly enhance our
understanding of the potential impact of these risks on revenue and operating costs, where relevant.
Physical climate change poses risks to our operations and supply chain. However, mitigation measures are either already in place, or are in
the process of being further developed. In response to increased impacts from extreme heat, we continually invest to avoid and mitigate
the impact of fires as one of the greatest operational risks in the waste industry. These investments are in processes and systems of fire
prevention, detection, and suppression.
Climate change is not considered to have a material adverse impact on the financial reporting judgements and estimates. In particular,
the impact of climate change has been considered in respect of the following areas in both the medium and long term:
• Going concern and viability of the Group over the next five years
• Cash flow forecasts used in the impairment assessments of non-current assets including goodwill, customer contracts and deferred
tax assets
• Carrying value and useful economic lives of property, plant and equipment.
The Directors are aware of the ever-changing risk of climate change and will regularly assess these risks against judgements and estimates
made in preparation of the Group’s financial statements.
Renewi plc Annual Report and Accounts 2024
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Other information
SECTION 2. Segmental information
This section shows the performance, net assets and other information on a segmental basis. The Group’s segmental
reporting reflects the management structure which is aligned with the core activities of the Group.
The Group’s chief operating decision maker is considered to be the Board of Directors. The Group’s reportable segments
are determined with reference to the information provided to the Board of Directors, in order for it to allocate the Group’s
resources and to monitor the performance of the Group. These segments are unchanged from March 2023 and are set
out below.
Commercial Waste
Collection and treatment of commercial waste in the Netherlands and Belgium.
Mineralz & Water
Decontamination, stabilisation and re-use of highly contaminated materials to produce certified
secondary products for the construction industry in the Netherlands and Belgium.
Specialities
Processing plants focusing on recycling and diverting specific waste streams. The continuing
operations are in the Netherlands, Belgium, France and Portugal, with the UK operations classified
as discontinued in the year.
Group central
services
Head office corporate function.
The profit measure the Board of Directors uses to evaluate performance is underlying EBIT. The Group accounts for inter-segment
trading on an arm’s length basis.
The Commercial Waste reportable segment includes the Netherlands Commercial Waste and Belgium Commercial Waste operating
segments which have been aggregated and reported as one reportable segment as they operate in similar markets in relation to the
nature of the products, services, processes and type of customer.
Revenue
2024
€m
Restated*
2023
€m
Netherlands Commercial Waste
911.5
932.0
Belgium Commercial Waste
476.2
468.4
Intra-segment
(3.0)
(3.1)
Commercial Waste
1,384.7
1,397.3
Mineralz & Water
181.6
190.9
Specialities
175.2
160.2
Inter-segment revenue
(52.3)
(44.5)
Total revenue from continuing operations
1,689.2
1,703.9
*
The comparatives have been restated to classify the UK Municipal segment (previously reported within the Specialities segment) as a discontinued operation.
Notes to the financial statements continued
176 Renewi plc Annual Report and Accounts 2024
SECTION 2. Segmental information continued
Results
2024
€m
Restated*
2023
€m
Netherlands Commercial Waste
52.9
76.9
Belgium Commercial Waste
45.6
52.4
Commercial Waste
98.5
129.3
Mineralz & Water
9.6
0.5
Specialities
16.3
15.9
Group central services
(18.9)
(14.0)
Underlying EBIT from continuing operations
105.5
131.7
Non-trading and exceptional items (note 3.3)
(7.9)
9.8
Operating profit from continuing operations
97.6
141.5
Finance income (note 5.4)
1.5
0.9
Finance charges (note 5.4)
(39.5)
(27.7)
Share of results from associates and joint ventures
0.5
0.3
Profit before taxation and discontinued operations
60.1
115.0
*
The comparatives have been restated to classify the UK Municipal segment (previously reported within the Specialities segment) as a discontinued operation.
Net Assets
Commercial
Waste
€m
Mineralz &
Water
€m
Specialities
€m
Group central
services
€m
Tax, net
debt and
derivatives
€m
Total
continuing
operations
€m
Discontinued
operations
€m
Total
€m
31 March 2024
Gross non-current assets
1,148.0
257.7
84.6
44.0
28.1
1,562.4
–
1,562.4
Gross current assets
200.7
26.5
39.6
8.2
86.5
361.5
132.3
493.8
Gross liabilities
(392.2)
(212.7)
(42.9)
(49.0)
(760.4)
(1,457.2)
(285.0)
(1,742.2)
Net assets (liabilities)
956.5
71.5
81.3
3.2
(645.8)
466.7
(152.7)
314.0
31 March 2023
Gross non-current assets
1,143.8
262.6
211.1
31.9
36.8
1,686.2
–
1,686.2
Gross current assets
206.6
35.2
75.0
17.9
64.6
399.3
–
399.3
Gross liabilities
(379.3)
(216.5)
(239.0)
(72.9)
(830.5)
(1,738.2)
–
(1,738.2)
Net assets (liabilities)
971.1
81.3
47.1
(23.1)
(729.1)
347.3
–
347.3
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Other information
SECTION 2. Segmental information continued
Other disclosures
Commercial Waste
€m
Mineralz & Water
€m
Specialities
€m
Group central
services
€m
Total
continuing
operations
€m
Discontinued
operations
€m
Total
€m
2024
Capital additions:
Property, plant and equipment
62.2
7.6
11.2
1.6
82.6
–
82.6
Right-of-use assets
51.9
4.1
2.7
6.4
65.1
1.5
66.6
Intangible assets
–
7.2
–
4.4
11.6
0.1
11.7
Depreciation charge:
Property, plant and equipment
50.3
11.5
5.8
1.6
69.2
0.1
69.3
Right-of-use assets
40.9
3.4
2.2
5.0
51.5
0.6
52.1
Amortisation of intangibles
5.9
0.9
0.8
4.7
12.3
0.1
12.4
Impairment charge:
Property, plant and equipment
0.5
2.2
0.1
–
2.8
–
2.8
Right-of-use assets
–
–
–
–
–
1.1
1.1
Reversal of impairment charge:
Property, plant and equipment
(0.8)
–
–
–
(0.8)
–
(0.8)
Non-trading and exceptional items
before tax
2.4
2.3
0.9
2.3
7.9
61.1
69.0
Notes to the financial statements continued
178 Renewi plc Annual Report and Accounts 2024
SECTION 2. Segmental information continued
Other disclosures continued
Commercial Waste
€m
Mineralz & Water
€m
Restated*
Specialities
€m
Group central
services
€m
Total
continuing
operations
€m
Restated*
Discontinued
operations
€m
Total
€m
2023
Capital additions:
Property, plant and equipment
86.4
13.4
15.3
2.8
117.9
–
117.9
Right-of-use assets
40.2
10.0
1.8
2.6
54.6
2.8
57.4
Intangible assets
–
1.7
–
7.0
8.7
–
8.7
Depreciation charge:
Property, plant and equipment
49.9
13.9
4.3
1.5
69.6
0.2
69.8
Right-of-use assets
36.3
3.1
2.7
4.6
46.7
0.6
47.3
Amortisation of intangibles
5.1
0.9
0.8
3.5
10.3
0.2
10.5
Impairment charge:
Property, plant and equipment
1.7
–
–
–
1.7
–
1.7
Right-of-use assets
1.0
–
–
–
1.0
1.3
2.3
Investment in associate
–
–
–
–
–
0.9
0.9
Reversal of impairment charge:
Property, plant and equipment
–
–
(2.0)
–
(2.0)
–
(2.0)
Right-of-use assets
(0.5)
–
–
–
(0.5)
–
(0.5)
Non-trading and exceptional items
before tax
(5.4)
(0.5)
(1.2)
(2.7)
(9.8)
20.4
10.6
*
The comparatives have been restated to classify the UK Municipal segment (previously reported within the Specialities segment) as a discontinued operation.
Geographical information
The Group’s segment assets (non-current assets being intangible assets, property plant and equipment, right-of-use assets, investments
and loans to associates and joint ventures) by geographical location are detailed below:
2024
€m
2023
€m
Netherlands
1,105.8
1,110.6
Belgium
391.3
385.5
UK
–
5.5
France
19.6
17.4
Portugal
5.2
3.3
Other
11.3
–
Segment assets
1,533.2
1,522.3
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Other information
SECTION 3. Operating profit and tax
This section contains the notes that relate to the results and performance of the Group during the year, along with the related
accounting policies that have been applied.
3.1 Revenue recognition
The Group applies IFRS 15 Revenue from Contracts with Customers which requires companies to apportion revenue from customer
contracts to separate performance obligations and recognise revenue as these performance obligations are satisfied. The majority
of the Group’s revenue is generated from the performance obligation to the customer to either collect and process the waste or
process the waste.
In the Commercial Waste segment, where the contract with a customer includes the collection of waste with a positive value and in
the Specialities segment where a customer is paid a compensation based on the composition of the waste processed, the transaction
price includes an element of non-cash consideration. This increases revenue with a corresponding increase in cost of sales for the
value of the waste collected or compensation paid with no impact on operating profit.
Accounting policy
Under IFRS 15 revenue is defined as income arising in the course of the Group’s waste collection and processing activities, and is
recognised when the control of goods or services is transferred and is allocated to individual performance obligations. Revenue
represents the fair value of consideration received or receivable for goods and services provided in the normal course of business,
including landfill tax but excluding sales taxes and inter-company sales. Revenue is recognised either at a point in time when the goods
or services are transferred or over time. Revenue is recognised over time when the customer simultaneously receives and consumes
the benefits provided by the Group’s performance as the Group provides the goods or services or when there is an enforceable right
to payment for performance completed to date. In most cases the Group’s revenue is not subject to conditions that would imply a
variable consideration. There is a limited number of contracts with variable consideration where revenue is only recognised to
the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur.
Revenue recognition criteria for the key types of services have been examined, determined and documented on a divisional level,
based on the general and specific contracts with customers and are as follows:
• Inbound revenue relates to the collection and/or processing of waste. The transaction price is based on contractually agreed prices
for collecting and processing the waste and differs depending upon the nature of the contract – contracts can be an all-in-tariff, split
between rent, processing and transport or a price per tonne basis for different types of waste. Due to the very short time period
between the start and completion of the performance obligations (usually on the same day), the revenue recognition and the
allocation of the transaction price over performance obligations is usually straightforward and dependent on the daily collection
and processing of the waste.
– Waste collection services: revenue is recognised at the point in time when the waste is delivered to transfer stations or to a
third-party processing facility.
– Waste processing services: where the Group’s revenue contracts include an obligation to process waste, revenue is recognised
over time based on the percentage of the processing service or activity that has been undertaken and there is an enforceable right
to payment for the performance completed. Where the waste processing has a very short cycle then revenue is recognised at the
point in time when the waste is processed.
• Outbound revenue relates to the sale of recyclate materials and products from processing waste and the generation of power.
The transaction price is agreed with the customer either in a contract or in relation to a market index and is charged based on
tonnage or kilowatt hour, and in some situations will include an additional charge for transport services.
– Sale of recyclate materials and products from processing waste: revenue is based on contractually agreed prices and is
recognised at a point in time when control of the asset is transferred to the buyer.
– Income from power generation: for gas produced by processes at anaerobic digestion facilities and landfill sites revenue is
recognised at a point in time based on the volumes of energy produced and an estimation of the amount to be received.
• On-site revenue relates to activities and services provided to the customer on their own site, mainly cleaning services at customer
installations. The transaction price can be a contracted lump sum or is charged by applying a fixed price per hour, litre or item
depending on the nature of the contract.
• Other includes charges for sundry low value packing materials, waste advisory services to support customers with waste collection
and treatment activities and preservation and maintenance of waste treatment facilities.
Notes to the financial statements continued
180 Renewi plc Annual Report and Accounts 2024
SECTION 3. Operating profit and tax continued
3.1 Revenue recognition continued
The timing of payments from customers is generally aligned to revenue recognition and subject to agreed invoice terms. Accrued income
(unbilled revenue) at the balance sheet date is recognised at fair value based on services provided and contractually agreed prices. It is
subsequently invoiced and accounted for as a trade receivable and further details are set out in note 4.8. Unprocessed waste may give rise
to deferred revenue, where invoices to customers are raised in advance of performance obligations being completed or require an accrual
for the costs of disposing of residual waste once the Group has an obligation for its disposal. These amounts are shown in deferred
revenue or accruals in the consolidated financial statements as appropriate. Further details relating to deferred revenue are given
in note 4.9.
The practical expedient available under IFRS 15 has been taken whereby any financing element of the contract has been ignored as the
timing difference between the satisfaction of the obligations under the contract and the receipt of payment due under the contract are
expected to be one year or less.
The following tables show the Group’s continuing revenue by type of service delivered and by primary geographical markets:
By type of service
Commercial
Waste
€m
Mineralz &
Water
€m
Specialities*
€m
Inter-segment
€m
Total
€m
2024
Inbound
1,129.0
163.5
34.6
(47.4)
1,279.7
Outbound
165.0
18.1
140.0
(4.6)
318.5
On-site
66.9
–
–
(0.3)
66.6
Other
23.8
–
0.6
–
24.4
Total revenue
1,384.7
181.6
175.2
(52.3)
1,689.2
2023 restated*
Inbound
1,089.6
153.2
27.0
(40.0)
1,229.8
Outbound
218.0
37.7
132.6
(4.3)
384.0
On-site
63.6
–
–
(0.2)
63.4
Other
26.1
–
0.6
–
26.7
Total revenue
1,397.3
190.9
160.2
(44.5)
1,703.9
By geographical market
Commercial
Waste
€m
Mineralz &
Water
€m
Specialities*
€m
Inter-segment
€m
Total
€m
2024
Netherlands
910.2
163.8
78.0
(49.4)
1,102.6
Belgium
474.5
17.8
46.1
(2.9)
535.5
France
–
–
29.9
–
29.9
Other
–
–
21.2
–
21.2
Total revenue
1,384.7
181.6
175.2
(52.3)
1,689.2
2023 restated*
Netherlands
931.2
159.2
69.3
(42.2)
1,117.5
Belgium
466.1
31.7
46.6
(2.3)
542.1
France
–
–
27.1
–
27.1
Other
–
–
17.2
–
17.2
Total revenue
1,397.3
190.9
160.2
(44.5)
1,703.9
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Revenue from continuing operations recognised at a point in time amounted to €1,460.3m (2023: €1,483.1m) with the remainder
recognised over time. The majority of the Commercial Waste and Specialities revenue is recognised at a point in time, whereas for
Mineralz & Water 70% of revenue (2023: 62%) is recognised over time.
Renewi plc Annual Report and Accounts 2024
181
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 3. Operating profit and tax continued
3.2 Operating profit
Detailed below are the key amounts recognised in arriving at the operating profit of continuing operations for the year:
Continuing operations
Note
2024
€m
Restated*
2023
€m
Staff costs
7.1
434.6
403.5
Depreciation of property, plant and equipment
4.2
69.2
69.6
Impairment of property, plant and equipment
4.2
2.8
1.7
Reversal of prior years property, plant and equipment impairment charge
4.2
(0.8)
(2.0)
Depreciation of right-of-use assets
4.3
51.5
46.7
Impairment of right-of-use assets
4.3
–
1.0
Reversal of prior years right-of-use assets impairment charge
4.3
–
(0.5)
Amortisation of intangible assets
4.1
12.3
10.3
Repairs and maintenance expenditure on property, plant and equipment
94.5
91.4
Net gain on disposal of property, plant and equipment and intangible assets
(1.9)
(3.1)
Expense relating to short-term leases
22.2
20.2
Expense relating to low-value assets
12.8
10.1
Income from subleasing right-of-use assets
(0.7)
(0.8)
Foreign exchange
(0.1)
(0.5)
Non-trading and exceptional items – charge (credit)
3.3
7.9
(9.8)
Net credit for expected credit loss allowance on trade receivables and accrued income
4.8
(0.2)
(2.7)
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
The total remuneration of the Group’s auditors, BDO LLP and its associates for services provided to the Group during the year was:
2024
€m
2023
€m
Audit of parent company and consolidated financial statements
0.7
0.4
Audit of subsidiaries pursuant to legislation
1.5
1.7
Audit related assurance services*
0.4
0.3
Fees payable to the auditors pursuant to legislation
2.6
2.4
*
Audit related assurance services included interim review, audit of ESEF tagging and climate change limited assurance.
3.3 Non-trading and exceptional items
To improve the understanding of the Group’s financial performance, items which are not considered to reflect the
underlying performance are presented as non-trading and exceptional items. Items classified as non-trading and exceptional
are disclosed separately due to their size or incidence to enable a better understanding of performance. These include,
but are not limited to, significant impairments, significant restructuring of the activities of an entity, including employee
associated severance costs, acquisition and disposal related transaction costs, significant fires, onerous contracts arising
from restructuring activities or if significant in size, profit or loss on disposal of properties or subsidiaries as these are
irregular, the impact of terminating hedge derivatives, ineffectiveness of derivative financial instruments, the impact of
changing the discount rate on provisions, amortisation of acquisition related intangibles and one-off tax credits or charges.
The amortisation charge on acquisition related intangible assets is excluded from underlying results due to its non-trading
nature in the same way as other significant items from M&A activity are excluded. The performance of the acquired business
is assessed as part of the Group’s underlying revenue and EBIT. By excluding this amortisation charge there is comparability
across divisions and reporting periods.
Non-trading and exceptional items are considered individually and assessed at each reporting period.
182 Renewi plc Annual Report and Accounts 2024
SECTION 3. Operating profit and tax continued
3.3 Non-trading and exceptional items continued
Note
2024
€m
Restated*
2023
€m
Renewi 2.0 improvement programme
1.0
3.7
Portfolio management activity:
Merger and acquisition related activity
1.0
–
Prior years disposals
(2.1)
(1.7)
Business line closure in the Mineralz & Water division
5.5
–
Disposal of business assets in the Mineralz & Water division
–
(3.8)
4.4
(5.5)
Changes in long-term provisions:
Changes in discount rate
(1.5)
4.1
Release of legal provision relating to the alleged State Aid claim in Belgium
–
(15.1)
(1.5)
(11.0)
Other items:
Restructuring programme
5.8
–
Property disposals and other
(7.9)
–
Reversal of prior year property, plant and equipment impairment
–
(2.0)
(2.1)
(2.0)
Amortisation of acquisition related intangibles
4.1
6.1
5.0
Non-trading and exceptional items in profit before tax
7.9
(9.8)
Tax on non-trading and exceptional items
(1.2)
(1.8)
Total non-trading and exceptional items in profit after tax (continuing operations)
6.7
(11.6)
Discontinued operations:
Changes in discount rate
(3.2)
(5.8)
Impairment of non-current assets within disposal group & other related expenses
64.5
–
UK Municipal reassessment of onerous contract provisions
–
27.1
Ineffectiveness and impact of termination of cash flow hedges
(0.2)
(0.9)
Non-trading and exceptional items in profit before tax
61.1
20.4
Tax on non-trading and exceptional items (see note 6.4)
11.5
0.2
Total non-trading and exceptional items in profit after tax (discontinued operations)
72.6
20.6
Total non-trading and exceptional items in profit after tax
79.3
9.0
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Renewi 2.0 improvement programme
As noted in the year to March 2023 financial statements, the programme is now completed with final costs of €1.0m coming through and the
€20m run rate of savings have now been delivered. The costs in the year of €1.0m (2023: €3.7m) were recorded in administrative expenses.
Portfolio management activity
During the year certain operations in the Mineralz & Water division were ceased, generating a loss of €5.5m, including impairment charge
of €2.3m. The current year M&A related activity costs of €1.0m (2023: €nil) relate to strategic initiatives. The prior years disposals credit of
€2.1m (2023: €1.7m) related to the release of a provision for a previous business disposal following the closure of outstanding tax matters
at 31 March 2024. The credit recognised in the prior year relates to an insurance claim recovery in relation to a prior disposal. In the prior
year certain business assets in the Mineralz & Water division were sold generating a profit of €3.8m. These are all recorded in administrative
expenses. The line item portfolio management and provision movements in non-trading and exceptional items in the Statement of Cash
Flows includes an add back of €2.0m credit (2023: €5.5m) and the line item disposal of subsidiary and business assets net of acquisition
of business assets includes the cash inflow of €nil (2023: €1.7m) from portfolio management activity.
Renewi plc Annual Report and Accounts 2024
183
Strategic report
Governance report
Financial statements
Other information
SECTION 3. Operating profit and tax continued
3.3 Non-trading and exceptional items continued
Changes in long-term provisions
The credit for changes in discount rate of €1.5m is a result of the annual reassessment of risk free rates which have impacted all
long-term provisions as explained further in note 4.10. The prior year charge of €4.1m, restated for the reclassification of discontinued
operations, related to the annual reassessment of risk free rates which impacted all long-term provisions.
On 3 March 2023, the European Commission concluded its formal investigation and determined that the Belgian Walloon Region did
not provide State Aid to the Group and therefore the provision of €15.1m has been released.
The total credit of €1.5m (2023: €11.0m credit) was split €1.5m (2023: €4.1m charge) to cost of sales and €nil (2023: €15.1m credit) to
administrative expenses. The line item portfolio management and provision movements in non-trading and exceptional items in the
Statement of Cash Flows reflects an add back of the credit of €4.7m (2023: €25.4m charge) from changes in provisions.
Other items
The €5.8m restructuring programme cost in the year relates to an ongoing SG&A cost saving programme.
The €7.9m credit for property disposals during the year includes profit from the disposal of the Hemweg site in Amsterdam and others.
In the prior year the reversal of a prior year property, plant and equipment impairment of €2.0m related to the Maltha CGU within
Specialities as a result of improvement in performance.
The total credit of €2.1m (2023: €2.0m) was split €nil (2023: €2.0m) in cost of sales and €2.1m (2023: €nil) in administrative expenses.
The line item portfolio management and provision movements in non-trading and exceptional items in the Statement of Cash Flows
includes an add back of the €6.5m credit (2023: €nil) in respect of other items.
Amortisation of acquisition related intangibles
Amortisation of intangible assets acquired in business combinations of €6.1m (2023: €5.0m) is all recorded in cost of sales.
Other
In addition to the non-trading and exceptional items, outlined above, each year there may be other one-off operating items that
are considered part of the underlying performance, as they do not meet the definition of non-trading and exceptional items per our
accounting policy. There is a c€5m favourable impact this year of one-off items arising from some accrual releases and other settlements.
Included within discontinued operations (note 6.4)
The credit for changes in discount rate of €3.2m (2023: €5.8m) is a result of the annual reassessment of risk free rates which have
impacted all long-term provisions.
The carrying value of the disposal group has been assessed against the anticipated capitalisation as well as the disposal costs and this
has resulted in a pre-tax loss on remeasurement of €63.5m plus disposal costs already incurred of €1.0m.
The €0.2m credit (2023: €0.9m) relates to the ineffectiveness of the Cumbria PPP project interest rate swaps as a result of a revised
repayment programme for the PPP non-recourse debt.
In the prior year there was a reassessment of onerous contract provisions in UK Municipal of €27.1m due to revised assumptions on both
life cycle spend and cost inflation, combined with lower volumes at the ELWA contract partially offset by the indexation of customer pricing.
3.4 Taxation
This section details the accounting polices applied for tax, the current and deferred tax charges or credits in the year,
a reconciliation of the total tax expense to the accounting result and the movements in deferred tax assets and liabilities.
Accounting policy
Current tax is based on taxable profit or loss for the year. Taxable profit differs from profit before tax in the Income Statement because
it excludes items of income or expense that are taxable or deductible in other years or that are never taxable or deductible. The asset
or liability for current tax is calculated using tax rates that have been enacted, or substantively enacted, at the balance sheet date.
Deferred tax is recognised in full where the carrying value of assets and liabilities in the financial statements is different to the
corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that the taxable profits will be available
against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax rates that have been enacted, or
substantively enacted, at the balance sheet date. Deferred tax is charged or credited in the Income Statement, except where it relates
to items charged or credited directly to equity in which case the deferred tax is also dealt with in equity.
Notes to the financial statements continued
184 Renewi plc Annual Report and Accounts 2024
SECTION 3. Operating profit and tax continued
3.4 Taxation continued
Deferred tax liabilities are not provided on taxable temporary differences arising from investments in subsidiaries as the timing of the
reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities, when they relate to income taxes levied by the same taxation authority.
The Group operates primarily in the Netherlands, Belgium, the UK, France and Portugal, all of which have their own tax legislation.
Deferred tax assets and liabilities have been calculated based on the substantively enacted tax rates in the relevant jurisdictions at the
balance sheet date or those rates expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
The Group has available tax losses, some of which have been recognised as deferred tax assets based on management’s best estimate
of the ability of the Group to utilise those losses.
Income Statement
The tax charge based on the profit for the year from continuing operations is made up as follows:
2024
€m
Restated*
2023
€m
Current tax
UK corporation tax
• Current year
2.0
3.7
• Adjustment in respect of prior years
(2.7)
(1.2)
Overseas tax
• Current year
20.7
26.4
• Adjustment in respect of prior years
(1.7)
0.2
Total current tax charge
18.3
29.1
Deferred tax
• Origination and reversal of temporary differences in the current year
(3.4)
(1.5)
• Adjustment in respect of prior years
–
1.4
Total deferred tax credit
(3.4)
(0.1)
Total tax charge for the year
14.9
29.0
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation. The current tax charge increased by €1.5m and deferred tax credit
reduced by €1.0m.
In the UK Chancellor’s Budget of 3 March 2021 it was announced that the UK corporation tax rate will increase from 19% to 25% with effect
from 1 April 2023. The tax on the Group’s profit for the year differs from the UK standard rate of tax of 25% (2023: 19%), as explained below:
2024
€m
Restated*
2023
€m
Total profit before taxation
60.1
115.0
Tax charge based on UK tax rate of 25% (2023: 19%)
15.0
21.9
Effects of:
Adjustment to tax charge in respect of prior years
(4.4)
0.4
Profits taxed at overseas tax rates
0.6
6.3
Non-deductible other items
(1.9)
(1.4)
Netherlands investment allowances
(1.5)
–
Non-taxable profit on portfolio management activity
(0.6)
–
Unrecognised deferred tax assets
7.7
1.8
Total tax charge for the year
14.9
29.0
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Renewi plc Annual Report and Accounts 2024
185
Strategic report
Governance report
Financial statements
Other information
SECTION 3. Operating profit and tax continued
3.4 Taxation continued
Uncertain tax positions
As referenced in the March 2023 financial statements, the Dutch Tax Authorities have issued assessments adjusting the interest
rate applied for tax purposes on some intra group loans from the UK to the Netherlands. The assessments have been appealed by
the Group given that the interest rate charged of 5.9% is based on a detailed transfer pricing study and the Group intends to file an
application under a Mutual Agreement Procedure (“MAP”). No net provision (2023: €1.4m) is included in the accounts, with the prior
year provision being released, as the potential adjustment in the Netherlands is now expected to be offset by a compensating
adjustment in the UK. At the expected outcome, there is a potential benefit of an additional deferred tax asset of €3.5m in the UK which
will not be recognised until the MAP process is completed and the outcome is certain. It is noted that the maximum exposure in respect
of this topic is calculated to be €6.1m (current tax charge €2.1m, deferred tax charge €4.0m) should the Group be wholly unsuccessful in
its defence, which is reduced from the prior year amount of €11.6m (current tax charge €2.1m, deferred tax charge €9.5m) due to
additional compensating adjustments in the UK.
Amendments to IAS 12 Income Taxes – International Tax Reform – Pillar Two Model Rules
The Group has adopted the amendments to IAS 12 for the first time in the current year. The IASB amended the scope of IAS 12 to clarify
that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model
rules published by the OECD, including tax law that implements qualified domestic minimum top-up taxes described in those rules.
The amendments introduce a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would
neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The Group has
applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS 12.
Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two
income taxes.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions that the Group operates, with effect
from 1 January 2024. An assessment of the potential exposure to Pillar Two income taxes has been performed and based on this
assessment, the Group primarily operates in jurisdictions where Pillar Two effective tax rates are higher than 15%. There may be a
limited number of jurisdictions where the transitional safe harbour relief may not be available, however, the Group does not expect
a significant exposure to Pillar Two income taxes in respect of these jurisdictions.
Amendments to IAS 12 Income Taxes – Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
In May 2021, amendments were issued to IAS 12, which narrow the scope of the initial recognition exemption under IAS 12, so that it no
longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments are effective from
1 January 2023 and have no material impact on the Group, in particular since the Group did not apply the initial recognition exemption
in the context of leases under IFRS 16.
Deferred tax
The analysis of the net deferred tax liability and the net deferred tax (credit) charge in the Income Statement is set out below:
Balance sheet
Income statement
2024
€m
2023
€m
2024
€m
Restated*
2023
€m
Retirement benefit schemes
3.2
2.4
(0.9)
(1.0)
Tax gains (losses)
19.6
31.1
(2.1)
(6.0)
Derivative financial instruments
(0.4)
0.7
–
(0.2)
Accelerated capital allowances
(32.0)
(39.0)
(1.9)
(3.2)
Acquisition related intangibles
(8.4)
(9.9)
1.5
1.1
Other temporary differences
1.1
3.9
6.8
9.4
At 31 March
(16.9)
(10.8)
3.4
0.1
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Notes to the financial statements continued
186 Renewi plc Annual Report and Accounts 2024
SECTION 3. Operating profit and tax continued
3.4 Taxation continued
The movement in the deferred tax balance during the year was:
2024
€m
2023
€m
Net deferred tax liability at 1 April
(10.8)
(5.4)
Acquisitions
(0.2)
(9.6)
Credited to Income Statement
3.4
1.1
Credited to Other Comprehensive Income
0.5
4.5
Movement in tax arising on share-based compensation
–
(0.9)
Write off of UK Municipal deferred tax asset
(11.7)
–
Transferred to disposal group classified as asset held for sale
1.2
–
Exchange rate changes
0.7
(0.5)
Net deferred tax liability at 31 March
(16.9)
(10.8)
Analysed in the Balance Sheet, after offset of balances within countries, as:
Deferred tax assets
28.0
35.6
Deferred tax liabilities
(44.9)
(46.4)
Net deferred tax liability at 31 March
(16.9)
(10.8)
The majority (at least 80%) of the €28.0m (2023: €35.6m) deferred tax assets are expected to be recovered after more than one year and the
majority (at least 80%) of the €44.9m (2023: €46.4m) deferred tax liabilities are expected to reverse after more than one year.
As at 31 March 2024, the Group had unused trading losses of €96.4m (2023: €344.7m) available for offset against deferred tax liabilities
and future profits. Deferred tax assets have been recognised in respect of €80.6m (2023: €123.1m) of such losses and recognition is based
on management’s projections of future profits in the relevant companies. No deferred tax assets have been recognised in respect of the
remaining €15.8m (2023: €221.6m) due to the uncertainty of future profit streams. Tax losses may be carried forward indefinitely in
the relevant companies. In addition there are other unrecognised deferred tax assets in relation to temporary differences of €46.7m
(2023: €173.6m). In terms of the two material components of the recognised losses, the Dutch fiscal unity losses of €26.0m (2023: €38.0m)
are expected to be used during the next two years due to strong profit streams and losses of €33.2m in Renewi plc (2023: €30.0m) relate
to highly predictable profit streams from UK interest income on intercompany receivables and are expected to be used within the next
six years. Changes in future profitability will impact the recoverability of the deferred tax assets recognised in respect of losses. A 10%
decrease in profitability would result in a reduction of €8.0m (gross amount of losses) in the value of the recognised deferred tax assets.
No liability has been recognised on the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries.
This is because the Group is in a position to control the timing and method of the reversal of the differences and it is probable that such
differences will not give rise to a tax liability in the foreseeable future. The total temporary difference at 31 March 2024 amounted to
€313.2m (2023: €280.9m) and unrecognised deferred tax estimated to arise on the unremitted earnings is €nil (2023: €nil) which would
relate to taxes payable on repatriation and dividend withholding taxes levied by overseas jurisdictions. UK tax legislation relating to
company distributions provides for exemption from tax for most repatriated profits, subject to certain exemptions.
Renewi plc Annual Report and Accounts 2024
187
Strategic report
Governance report
Financial statements
Other information
SECTION 3. Operating profit and tax continued
3.5 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of the parent entity by the weighted
average number of ordinary shares during the year excluding shares held by the Employee Share Trust.
Diluted earnings per share is calculated by dividing profit for the year attributable to the owners of the parent entity by the
weighted average number of ordinary shares during the year plus the weighted average number of any commitments made
by the Group to issue shares in the future.
Underlying basic and diluted earnings per share exclude non-trading and exceptional items, net of related tax. Non-trading
and exceptional items are those items that are disclosed separately on the face of the Income Statement, because of their
size or incidence, to enable a better understanding of performance. The Directors believe that adjusting earnings per share
in this way enables comparison with historical data calculated on the same basis to reflect the business performance in a
consistent manner and reflect how the business is managed and measured on a day-to-day basis.
2024
Restated* 2023
Basic
Dilutions
Diluted
Basic
Dilutions
Diluted
Weighted average number of shares (million)
79.7
–
79.7
79.4
0.2
79.6
(Loss) profit after tax (€m)
(30.9)
–
(30.9)
66.6
–
66.6
Non-controlling interests (€m)
(3.2)
–
(3.2)
(3.7)
–
(3.7)
(Loss) profit after tax attributable to ordinary shareholders (€m)
(34.1)
–
(34.1)
62.9
–
62.9
Basic (loss) earnings per share (cents)
(43)
–
(43)
79
–
79
(Loss) profit after tax attributable to ordinary shareholders (€m)
(34.1)
–
(34.1)
62.9
–
62.9
Add back loss from discontinued operations (€m)
76.1
–
76.1
19.4
–
19.4
Profit after tax attributable to ordinary shareholders from
continuing operations (€m)
42.0
–
42.0
82.3
–
82.3
Basic earnings per share (cents) – continuing operations
53
–
53
104
–
104
The reconciliation between underlying earnings per share and basic earnings (loss) per share is as follows:
2024
Restated* 2023
Cents
€m
Cents
€m
Underlying basic & diluted earnings per share/Underlying profit after tax
attributable to ordinary shareholders
57
45.2
90
71.9
Adjustments:
Non-trading and exceptional items (continuing & discontinued)
(87)
(69.0)
(13)
(10.6)
Tax on non-trading and exceptional items (continuing & discontinued)
(13)
(10.3)
2
1.6
Basic & diluted (loss) earnings per share/(Loss) earnings after tax
attributable to ordinary shareholders
(43)
(34.1)
79
62.9
Underlying basic & diluted earnings per share/Underlying profit after tax
attributable to ordinary shareholders from continuing operations
61
48.7
89
70.7
Non-trading and exceptional items from continuing operations
(10)
(7.9)
13
9.8
Tax on non-trading and exceptional items from continuing operations
2
1.2
2
1.8
Basic & diluted earnings per share/Earnings after tax attributable to
ordinary shareholders from continuing operations
53
42.0
104
82.3
Underlying basic & diluted earnings per share/Underlying profit after tax
attributable to ordinary shareholders from discontinued operations
(4)
(3.5)
1
1.2
Non-trading and exceptional items from discontinued operations
(77)
(61.1)
(26)
(20.4)
Tax on non-trading and exceptional items from discontinued operations
(15)
(11.5)
–
(0.2)
Basic & diluted (loss) earnings per share/(Loss) after tax attributable to
ordinary shareholders from discontinued operations
(96)
(76.1)
(25)
(19.4)
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Notes to the financial statements continued
188 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities
This section contains Balance Sheet notes showing the assets and liabilities used to generate the Group’s results and the related
accounting policies.
4.1 Intangible assets
Accounting policy
Goodwill represents the excess of the purchase consideration over the fair value of the Group’s share of the net identifiable assets at the
date of acquisition and is measured at cost less accumulated impairment losses. Goodwill arising on acquisitions prior to the date of
transition to IFRS (31 March 2004) has been retained at the previous UK GAAP net book value following impairment tests.
For the purpose of impairment testing, goodwill is allocated to those cash-generating units (CGUs) or groups of CGUs that are expected to
benefit from the synergies of the business combination. Goodwill is tested annually for impairment or more frequently if events or changes
in circumstances indicate a potential impairment. Any impairment is charged immediately to the Income Statement and is not reversed
in a subsequent period. In conducting the impairment review on goodwill and intangibles, management is required to make estimates of
pre-tax discount rates, future profitability and growth rates. The pre-tax discount rates are derived from the Group’s weighted average cost
of capital (WACC) which takes into account the capital structure of the Group, the cost of risk-free rate finance and the relative volatility of
the equity of the Group compared to the market and is adjusted by management as considered appropriate for each CGU.
Landfill void represents the value of landfill capacity to deposit waste in two landfill sites in the Netherlands. The initial landfill void was
capitalised at fair value on the acquisition of a Dutch operation in 2006 and further landfill rights have been acquired in relation to the
Maasvlakte landfill site in Mineralz & Water and capitalised at cost. The assets are amortised over their estimated useful life on a void
usage basis and measured at cost less accumulated amortisation. The estimated remaining useful life is up to 13 years.
Relating to the Group’s software and systems development an internally generated intangible asset is recognised when an asset is created
that can be identified, it is probable that the asset will generate future economic benefits that the Group controls and the development
cost can be reliably measured.
Other intangible assets are capitalised on the basis of the fair value of the assets acquired or on the basis of costs incurred to purchase and
bring the assets into use. They are subsequently measured at cost less accumulated amortisation.
Amortisation is charged over the estimated useful life on a straight-line basis, as follows:
Contract right relating to leasehold land
Term of the lease
Contract right relating to PPP contracts in Municipal
Term of the contract
Computer software
Up to 5 years
Acquisition related intangibles:
Waste permits and licences*
5 to 34 years
Customer relationships*
Up to 14 years
*
The remaining useful life of customer relationships is based on analysis of historical churn patterns of the client base and for permits where the term is indefinite and are
related to a leased site, the useful life is the remaining term of the leasehold land.
Renewi plc Annual Report and Accounts 2024
189
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.1 Intangible assets continued
Intangible assets are analysed as follows:
Goodwill
€m
Landfill void
€m
Computer
software
and others
€m
Acquisition
related
intangibles
€m
Total
€m
Cost
At 1 April 2022
624.8
28.9
40.6
73.9
768.2
Additions
–
1.7
7.0
–
8.7
Acquisition through business combinations (note 6.1)
17.4
–
–
27.9
45.3
Disposals
–
–
(0.1)
(0.1)
(0.2)
Exchange rate changes
–
–
(0.5)
–
(0.5)
At 31 March 2023
642.2
30.6
47.0
101.7
821.5
Additions
–
7.2
4.5
–
11.7
Acquisition through business combinations (note 6.1)
0.7
–
–
0.9
1.6
Disposals
(1.4)
–
(2.5)
–
(3.9)
Transferred to disposal group classified as held for sale (note 6.4)
–
–
(13.2)
–
(13.2)
Exchange rate changes
–
–
0.5
–
0.5
At 31 March 2024
641.5
37.8
36.3
102.6
818.2
Accumulated amortisation and impairment
At 1 April 2022
73.2
23.2
24.1
54.9
175.4
Amortisation charge
–
1.6
3.9
5.0
10.5
Disposals
–
–
(0.1)
(0.1)
(0.2)
Exchange rate changes
–
–
(0.5)
–
(0.5)
At 31 March 2023
73.2
24.8
27.4
59.8
185.2
Amortisation charge
–
1.3
5.0
6.1
12.4
Disposals
–
–
(1.0)
–
(1.0)
Transferred to disposal group classified as held for sale (note 6.4)
–
–
(12.3)
–
(12.3)
Exchange rate changes
–
–
0.4
–
0.4
At 31 March 2024
73.2
26.1
19.5
65.9
184.7
Net book value
At 31 March 2024
568.3
11.7
16.8
36.7
633.5
At 31 March 2023
569.0
5.8
19.6
41.9
636.3
At 1 April 2022
551.6
5.7
16.5
19.0
592.8
Of the total amortisation charge of €12.4m (2023: €10.5m), €6.1m (2023: €5.0m) related to acquisition related intangible assets which
has been charged in cost of sales. Of the remaining amortisation expense of €6.3m (2023: €5.5m), €1.5m (2023: €1.8m) has been
charged in cost of sales and €4.8m (2023: €3.7m) has been charged in administrative expenses. The total amortisation charge of
€12.4m (2023: €10.5m) is split €12.3m (2023: €10.3m) within continuing operations (see note 3.2) and €0.1m (2023: €0.2m) relating
to discontinued operations.
The net book value of acquisition related intangibles of €36.7m (2023: €41.9m) includes customer relationships of €28.6m
(2023: €32.6m) and permits of €8.0m (2023: €9.1m).
Notes to the financial statements continued
190 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.1 Intangible assets continued
Goodwill impairment
Impairment testing is carried out at a CGU level on an annual basis, within each of the segments that has goodwill. Although its goodwill
balance is material to the financial statements as a whole, the Specialities reporting segment, which comprises the CGUs of Coolrec and
Maltha Group, is not considered to comprise a material portion of goodwill and therefore disclosures surrounding the impairment review
assumptions have not been included.
The material CGUs are Netherlands Commercial Waste, Belgium Commercial Waste and Mineralz & Water. A summary of the closing net
book value of goodwill by reportable segment is set out below:
2024
€m
2023
€m
Netherlands Commercial Waste
278.1
279.5
Belgium Commercial Waste
137.0
136.3
Commercial Waste
415.1
415.8
Mineralz & Water
129.5
129.5
Specialities
23.7
23.7
Total goodwill
568.3
569.0
The Group estimates the recoverable amount of a CGU using a value in use model by projecting cash flows for the next five years, together
with a terminal value using a long-term growth rate. However, given a landfill closure in Mineralz & Water CGU it is more appropriate to use
a 13-year model for projecting cash flows. The five-year plans used in the impairment models are based on management’s past experience
and future expectations of performance. They also reflect the planned changes in the CGUs as a result of improvement initiatives and
actions instigated and to which the Group has committed to in the current year. The key assumptions underpinning the recoverable
amounts of the CGUs tested for impairment are forecast revenue and underlying EBIT. The forecast revenues in these models are based
on management’s predictions of overall market growth rates, including both volume and price. The cash flows include management’s
assumption that recyclate prices remain at long-term averages despite the expected increased demand for these products driven by
climate change-related targets and legislation. The pre-tax discount rate reflects the Group’s assessment of the risks related to the
CGUs and the countries in which they operate. Post-tax discount rates are used within the value in use calculation, as this is based
on the Group’s weighted cost of capital and reflects the assessment of risks related to CGUs.
For each of the material CGUs, the key assumptions used in the value in use calculations are shown below:
2024
Netherlands
Commercial
Waste
Belgium
Commercial
Waste
Mineralz &
Water
Revenue (% annual growth rate from year 1 to year 5)
6.0%
5.4%
5.4%
Underlying EBIT margin (average % of revenue for years 1 to year 5)
6.7%
8.8%
10.1%
Long-term growth rate*
2.0%
2.0%
2.0%
Pre-tax discount rate
8.8%
8.7%
9.0%
*
For the Mineralz & Water CGU the terminal long-term growth rate of 2.0% is applied to all results with the exception of landfills where permits cease.
2023
Netherlands
Commercial
Waste
Belgium
Commercial
Waste
Mineralz &
Water
Revenue (% annual growth rate from year 1 to year 5)
2.7%
4.1%
3.7%
Underlying EBIT margin (average % of revenue for years 1 to year 5)
6.5%
8.0%
7.3%
Long-term growth rate*
2.0%
2.0%
2.0%
Pre-tax discount rate
8.8%
9.6%
8.9%
*
For the Mineralz & Water CGU the terminal long-term growth rate of 2.0% is applied to all results with the exception of landfills where permits cease.
A long-term growth rate of 2% is considered an appropriate representation of the long-term growth rate for the industry and in the
countries in which the Group operates. Revenue and EBIT margin assumptions are higher than in the prior year as a result of growth
initiatives and capital improvements along with benefits of recent cost action plans.
Renewi plc Annual Report and Accounts 2024
191
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.1 Intangible assets continued
Sensitivity to changes in assumptions
The Group performs sensitivity analysis on the impairment testing by considering reasonably possible changes in the key assumptions
used. This includes weaker macroeconomic conditions resulting in a lower volume growth and adverse price impacts, a decline in
recyclate prices and operational downtime in some of our facilities. For all CGUs a change in discount rate of 1% demonstrated that
there is still appropriate headroom and it is concluded that no reasonably possible change to this or the other assumptions would
result in an impairment charge.
4.2 Property, plant and equipment
Accounting policy
Depreciation is provided to write off cost (less the expected residual value) on a straight-line basis over the expected useful economic
lives as follows:
Buildings
Up to 30 years
Landfill site development costs including engineering works
Up to 30 years (over the operational life of the site)
Plant and installations
Up to 20 years
Trucks, cars and service vehicles
Up to 12 years
Other items of plant and machinery
Up to 15 years
Computer equipment
Up to 5 years
Fixtures and fittings
Up to 10 years
Notes to the financial statements continued
192 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.2 Property, plant and equipment continued
Property, plant and equipment are analysed as follows:
Land and
buildings
€m
Landfill
sites
€m
Plant and
machinery
€m
Total
€m
Cost
At 1 April 2022
485.8
68.4
735.9
1,290.1
Additions
28.4
0.1
89.4
117.9
Acquisition through business combinations (note 6.1)
12.5
–
6.5
19.0
Disposals
(7.8)
(1.8)
(33.7)
(43.3)
Transferred to Assets held for sale (note 6.3)
–
–
(6.8)
(6.8)
Transferred from right-of-use asset to property, plant & equipment
0.2
–
6.8
7.0
Reclassifications
1.8
–
(0.7)
1.1
Exchange rate changes
(0.3)
–
(0.3)
(0.6)
At 31 March 2023
520.6
66.7
797.1
1,384.4
Additions
18.2
0.1
64.3
82.6
Disposals
(10.3)
(0.4)
(39.3)
(50.0)
Transferred to Assets held for sale (note 6.3)
(5.0)
–
(5.2)
(10.2)
Transferred to disposal group classified as held for sale (note 6.4)
(3.1)
–
(5.2)
(8.3)
Transferred from right-of-use asset to property, plant and equipment
0.4
–
19.2
19.6
Exchange rate changes
0.1
–
0.2
0.3
At 31 March 2024
520.9
66.4
831.1
1,418.4
Accumulated depreciation and impairment
At 1 April 2022
176.8
53.9
505.8
736.5
Depreciation charge
14.4
1.8
53.6
69.8
Impairment charge
0.2
–
1.5
1.7
Reversal of a prior year’s impairment charge
–
–
(2.0)
(2.0)
Disposals
(5.6)
(1.5)
(31.3)
(38.4)
Transferred to Assets held for sale (note 6.3)
–
–
(6.7)
(6.7)
Transferred from right-of-use asset to property, plant and equipment
0.1
–
4.9
5.0
Reclassifications
1.8
–
(0.7)
1.1
Exchange rate changes
(0.3)
–
(0.2)
(0.5)
At 31 March 2023
187.4
54.2
524.9
766.5
Depreciation charge
15.2
1.6
52.5
69.3
Impairment charge
0.5
–
2.3
2.8
Reversal of a prior year’s impairment charge
–
–
(0.8)
(0.8)
Disposals
(4.6)
(0.4)
(35.0)
(40.0)
Transferred to Assets held for sale (note 6.3)
(1.2)
–
(3.6)
(4.8)
Transferred to disposal group classified as held for sale (note 6.4)
(3.1)
–
(5.1)
(8.2)
Transferred from right-of-use asset to property, plant and equipment
0.4
–
14.2
14.6
Exchange rate changes
0.1
–
0.2
0.3
At 31 March 2024
194.7
55.4
549.6
799.7
Net book value
At 31 March 2024
326.2
11.0
281.5
618.7
At 31 March 2023
333.2
12.5
272.2
617.9
At 1 April 2022
309.0
14.5
230.1
553.6
Depreciation expense of €67.2m (2023: €67.4m) has been charged in cost of sales and €2.1m (2023: €2.4m) in administrative expenses.
The total depreciation charge of €69.3m (2023: €69.8m) is split €69.2m (2023: €69.6m) within continuing operations (see note 3.2) and
€0.1m (2023: €0.2m) relating to discontinued operations.
Renewi plc Annual Report and Accounts 2024
193
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.2 Property, plant and equipment continued
The current year impairment charge of €2.8m has been charged to cost of sales and has arisen mostly due to the decision to close the
Tisselt operations within Mineralz & Water in Belgium. The impairment charge is reported within continuing operations, with €2.3m of
the impairment charge being recorded within non-trading and exceptional items (note 3.3). The reversal of a prior year’s impairment
charge of €0.8m relates to the Belgium Commercial Waste CGU as a result of improved performance at a specific site, and is reported
within continuing operations and has not been credited to non-trading and exceptional items.
The prior year impairment charge of €1.7m arose in the Netherlands Commercial division partly due to a fire at one of the sites and
a detailed review of carrying value of assets, including trucks. The prior year reversal of a prior year’s impairment charge of €2.0m
related to the Maltha CGU as a result of improved performance at a specific site and has been credited to non-trading and exceptional
cost of sales.
Included within the net book value of property, plant and equipment of €618.7m (2023: €617.9m) are assets under construction of
which €32.7m (2023: €26.7m) is plant and machinery and €6.3m (2023: €6.1m) is land and buildings. The net book value of plant and
machinery of €281.5m (2023: €272.2m) includes €155.2m (2023: €149.3m) of plant and installations, €57.8m (2023: €51.4m) of machinery
and €61.7m (2023: €64.8m) of containers.
4.3 Right-of-use assets
Accounting policy
The Group leases various real estate properties and items of plant, machinery and trucks for normal business operations across
the divisions.
If the lessor transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset
reflects that the Group will exercise a purchase option, then the right-of-use asset is depreciated over the useful life of the underlying
asset, which is determined on the same basis as those in property, plant and equipment. The lease liability is remeasured if the Group
changes its assessment of whether it will exercise a purchase extension or termination option or if there is a revision to fixed lease
payments. The Group leases out a limited number of right-of-use assets which are classified as operating leases from a lessor
perspective with the exception of a sub-lease which is classified as a finance sub-lease.
Notes to the financial statements continued
194 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.3 Right-of-use assets continued
Right-of-use assets are analysed as follows:
Land and
buildings
€m
Plant and
machinery
€m
Total
€m
Cost
At 1 April 2022
143.3
189.3
332.6
Additions/modifications
18.2
39.2
57.4
Acquisition through business combinations (note 6.1)
30.9
7.5
38.4
Disposals
(7.5)
(9.3)
(16.8)
Transferred from right-of-use asset to property, plant and equipment
(0.2)
(6.8)
(7.0)
Reclassifications
1.3
(2.4)
(1.1)
Exchange rate changes
(0.6)
(0.1)
(0.7)
At 31 March 2023
185.4
217.4
402.8
Additions/modifications
30.1
36.5
66.6
Acquisition through business combinations (note 6.1)
–
0.1
0.1
Disposals
(6.7)
(14.5)
(21.2)
Transferred to disposal group classified as held for sale (note 6.4)
(6.1)
(4.7)
(10.8)
Transferred from right-of-use asset to property, plant and equipment
(0.4)
(19.2)
(19.6)
Exchange rate changes
0.3
–
0.3
At 31 March 2024
202.6
215.6
418.2
Accumulated depreciation and impairment
At 1 April 2022
35.1
83.7
118.8
Depreciation charge
11.4
35.9
47.3
Impairment charge
–
2.3
2.3
Reversal of a prior year’s impairment charge
(0.5)
–
(0.5)
Disposals
(3.1)
(8.3)
(11.4)
Transferred from right-of-use asset to property, plant and equipment
(0.1)
(4.9)
(5.0)
Reclassifications
(0.3)
(0.8)
(1.1)
Exchange rate changes
(0.6)
(0.1)
(0.7)
At 31 March 2023
41.9
107.8
149.7
Depreciation charge
12.9
39.2
52.1
Impairment charge
0.9
0.2
1.1
Disposals
(1.6)
(13.2)
(14.8)
Transferred to disposal group classified as held for sale (note 6.4)
(5.4)
(4.0)
(9.4)
Transferred from right-of-use asset to property, plant and equipment
(0.4)
(14.2)
(14.6)
Exchange rate changes
0.1
0.1
0.2
At 31 March 2024
48.4
115.9
164.3
Net book value
At 31 March 2024
154.2
99.7
253.9
At 31 March 2023
143.5
109.6
253.1
At 1 April 2022
108.2
105.6
213.8
The net book value of plant and machinery right-of-use assets includes €1.3m (2023: €0.9m) of plant and installations, €81.6m
(2023: €97.5m) of machinery, including trucks and €16.8m (2023: €11.2m) of company cars.
Depreciation expense of €44.9m (2023: €40.4m) has been charged in cost of sales and €7.2m (2023: €6.9m) in administrative expenses.
The total depreciation charge of €52.1m (2023: €47.3m) is split €51.5m (2023: €46.7m) within continuing operations (see note 3.2) and
€0.6m (2023: €0.6m) relating to discontinued operations.
The impairment charge of €1.1m related entirely to assets in UK Municipal onerous contracts which were recorded as a utilisation of the
onerous contract provision and are recorded within discontinued operations. The prior year impairment charge of €2.3m related to €1.3m of
assets in UK Municipal onerous contracts which were recorded as a utilisation of the onerous contract provision (restated within discontinued
operations) and €1.0m was charged to cost of sales in relation to the Netherlands Commercial division (continuing operations, see note 3.2)
principally due to a plant reconfiguration which has resulted in an asset being scrapped earlier than previously expected.
Renewi plc Annual Report and Accounts 2024
195
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.4 Investments and loans to associates and joint ventures
Accounting policy
Investments in associates and joint ventures are accounted for using the equity method of accounting, and are initially recognised
at cost or at fair value in the case of a disposal of the majority shareholding. The cumulative post-acquisition profits or losses and
movements in Other Comprehensive Income are adjusted against the carrying amount of the investment. When the Group’s share of
losses exceeds the carrying amount of the joint venture or associate, the carrying amount is reduced to nil and recognition of further
losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf
of the joint venture or associate. Accounting policies of associates and joint ventures have been adjusted where necessary to ensure
consistency with the policies of the Group. Where there is evidence that the investment in an associate or joint venture has been
impaired the carrying value of the investment is tested for impairment in the same way as other non-financial assets.
For the other unlisted investments the Group made an irrevocable election to classify these at fair value through Other Comprehensive
Income, rather than profit or loss because this is considered to be more appropriate for these strategic investments. They were initially
recorded at fair value and then remeasured at subsequent reporting dates with the unrealised gains and losses recognised in Other
Comprehensive Income.
Investment funds are measured at fair value through profit or loss with unrealised gains and losses recognised in the Income Statement.
Loans to associates and joint ventures are measured at amortised cost and where appropriate a 12-month expected credit loss
allowance is recorded on initial recognition. If there is subsequent evidence of a significant increase in the credit risk the allowance
is increased to reflect the full lifetime expected credit loss.
The carrying amount of investments and loans to associates and joint ventures are as follows:
Loans
Investments
Loans to
associates and
joint ventures
€m
Joint
ventures
€m
Associates
€m
Total joint
ventures and
associates
€m
Other
unlisted
investments
€m
Investment
funds
€m
Total
investments
€m
At 1 April 2022
0.9
1.5
8.2
9.7
4.6
11.1
25.4
Additions
0.4
–
2.0
2.0
–
–
2.0
Repayments
(0.3)
–
–
–
–
–
–
Share of retained profits (losses)*
–
0.5
(0.5)
–
–
–
–
Dividend income
–
(0.1)
(0.5)
(0.6)
–
–
(0.6)
Fair value adjustment on cash flow hedges
–
–
0.3
0.3
–
–
0.3
Fair value movement on investment funds
–
–
–
–
–
(0.2)
(0.2)
Impairment charge
–
–
(0.9)
(0.9)
–
–
(0.9)
Disposals
–
(0.1)
(0.1)
(0.2)
–
–
(0.2)
Reclassification
–
(0.7)
0.7
–
–
–
–
Exchange rate changes
–
–
(0.1)
(0.1)
–
–
(0.1)
At 31 March 2023
1.0
1.1
9.1
10.2
4.6
10.9
25.7
Acquired
–
–
0.4
0.4
–
–
0.4
Additions
0.3
–
0.8
0.8
–
–
0.8
Repayments
(0.3)
–
–
–
–
–
–
Share of retained profits*
–
–
0.9
0.9
–
–
0.9
Dividend income
–
(0.1)
(0.5)
(0.6)
–
–
(0.6)
Fair value movement on other unlisted
investments – recognised in Other
Comprehensive Income
–
–
–
–
1.8
–
1.8
Fair value movement on investment funds –
recognised in Income Statement
–
–
–
–
–
0.4
0.4
Transferred to disposal group classified as
held for sale (note 6.4)
–
–
(2.8)
(2.8)
–
–
(2.8)
Fair value adjustment on cash flow hedges
–
–
0.1
0.1
–
–
0.1
At 31 March 2024
1.0
1.0
8.0
9.0
6.4
11.3
26.7
*
The share of retained profits from total joint ventures and associates comprises €0.5m (2023: €0.3m) within continuing operations and €0.4m (2023: €0.3m loss) within
discontinued operations (note 6.4).
Notes to the financial statements continued
196 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.4 Investments and loans to associates and joint ventures continued
Of the loans to associates and joint ventures totalling €1.0m (2023: €1.0m), €0.6m (2023: €0.8m) are current and €0.4m (2023: €0.2m) are
non-current. Total investments are split €nil current (2023: €10.9m) and €26.7m non-current (2023: €14.8m).
Investments in joint ventures are held at €nil when the Group’s share of losses exceeds the carrying amount.
Details of joint ventures and associated investments are shown in note 8.1. No joint venture or associate is considered individually material
to the Group for further disclosure.
The prior year impairment charge of €0.9m has been restated within the 31 March 2023 Income Statement as it is part of the UK Municipal
business, which has been reclassified as a discontinued operation.
In the current year management have shown the total investments in joint ventures and associates separately on the face of the balance
sheet, the prior year balance sheet has been restated to show the total joint ventures and associated separately from other investments.
4.5 Financial assets relating to PPP contracts
Accounting policies and key judgements
Financial assets relating to PPP contracts are classified as financial assets at amortised cost and are initially recognised at the fair value
of consideration receivable and subsequently at amortised cost. These service concession arrangements under IFRIC 12 represent the
present value of the future cash flows of the contract. These cash flows are dependent on, amongst other things, tonnages, indexation,
recycling rates and labour costs.
The IFRS 9 general approach is applied in relation to expected credit loss which requires an allowance to be recorded on initial
recognition if appropriate and then at each reporting date an assessment is made to determine the changes in the risk of default
occurring over the expected life of the financial asset. The UK Municipal division entered into PPP long-term waste management contracts
with local authorities which included the infrastructure capital costs. UK local authorities have historically held a strong credit profile with
the capacity to meet financial commitments and none that Renewi contract with have ever defaulted. The UK has recently experienced
some councils declaring themselves “effectively bankrupt” (a Section 114 notice), but this means they cannot enter into new contracts
whilst still being expected to honour existing contracts, and we would expect waste collection and processing to be an essential service.
These financial assets are assessed to have low credit risk based on low risk of default, the vital nature of the service being provided and
strong financial capacity to meet contractual cash flow obligations in the near term. Adverse changes in economic and business
conditions in the longer term may, but will not necessarily, reduce the local authority’s ability to fulfil its obligations.
The Group is the operator for one class of service concession arrangements, that of the provision of waste treatment and waste treatment
facilities, and these are classified as service concession arrangements in accordance with IFRIC 12. If the Group underperforms, including
failure to divert waste from landfill, the contract can be terminated before the end of its term.
On the basis that the Group acted as agent versus principal in the provision of construction services and the historical presentation of
the revenue and costs associated with the construction services net in the Income Statement, we consider that the most appropriate
classification of the PPP non-recourse debt cash flows in the Statement of Cash Flows is as financing outflows and capital received in
relation to PPP financial assets as investing cash flows and not as operating cash flows. This classification has been consistently applied
to all periods presented in the financial statements.
Renewi plc Annual Report and Accounts 2024
197
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.5 Financial assets relating to PPP contracts continued
The table below sets out the Group’s interest in service concession arrangements as at 31 March 2024. There have been no changes to
any of the arrangements during the year ended 31 March 2024.
Contract
Financial close
Full-Service
Commencement
Contract Expiry
Interests in Special Purpose Vehicle
Argyll & Bute
September 2001
April 2003
September 2026
Renewi: 100%
Cumbria
June 2009
April 2013
June 2034
Renewi: 100%
Wakefield
January 2013
December 2015
February 2038
Renewi: 50.001%
Equitix Infrastructure 4 Limited: 49.999%
Barnsley, Doncaster
and Rotherham
March 2012
July 2015
June 2040
Renewi: 100%
East London
Waste Authority
December 2002
August 2007
December 2027
Renewi: 20%
JLEN Environmental Assets Group (UK)
Limited: 80%
The movements in financial assets during the year were as follows:
€m
At 1 April 2022
143.4
Income recognised in the Income Statement (reclassified to discontinued operations): Interest Income (note 6.4)
8.6
Advances
0.5
Repayments
(16.1)
Exchange rate changes
(5.4)
At 31 March 2023
131.0
Income recognised in discontinued operations in the Income Statement: Interest Income (note 6.4)
8.1
Advances
0.8
Repayments
(15.9)
Transferred to disposal group classified as held for sale (note 6.4)
(127.6)
Exchange rate changes
3.6
At 31 March 2024
–
Current
–
Non-current
–
At 31 March 2024
–
Current
7.6
Non-current
123.4
At 31 March 2023
131.0
At 31 March 2024 and 2023 there was no expected credit loss allowance recorded in relation to the financial assets relating to PPP
contracts as explained in note 5.7.
The table below reconciles the financial asset repayments to the Statement of Cash Flows:
2024
€m
2023
€m
Capital received in respect of PPP financial assets included in outflows in respect of PPP arrangements under
the financial asset model net of capital received in cash flows from investing activities
6.9
6.6
Interest in relation to PPP financial assets included in finance income in cash flows from investing activities
9.0
9.5
15.9
16.1
Notes to the financial statements continued
198 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.6 Capital commitments
2024
€m
2023
€m
Contracts placed for future intangible assets
7.8
7.6
Contracts placed for future capital expenditure on property, plant and equipment
28.1
53.1
Contracts placed for future right-of-use assets
21.9
17.7
4.7 Inventories
Accounting policy
Inventories are stated at the lower of cost and net realisable value and are measured on a first in first out basis.
Inventories are analysed as follows:
2024
€m
2023
€m
Raw materials and consumables
14.8
15.0
Finished goods
8.6
10.2
23.4
25.2
In the year there was a write down of €nil (2023: €0.1m) of inventories to net realisable in the Commercial Waste division. The charge was
recognised as a cost of sale.
4.8 Trade and other receivables
Accounting policy
Trade receivables and accrued income do not carry interest and are initially recognised at the transaction price and are subsequently
measured at amortised cost net of impairment loss allowances. Accrued income relates to the Group’s rights to consideration for work
completed but not billed at the reporting date until they become unconditional, at which point they are transferred to trade receivables.
Unbilled amounts arise when revenue is recognised prior to an invoice being raised to the customer; typically, this arises when supporting
documentation is required to be delivered with the invoice, the invoice needs to be agreed with the customer prior to issue or revenue is
recognised over time with the invoice only raised on completion of all the performance obligations.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses (ECL) which uses a lifetime expected allowance for
all trade receivables and accrued income and includes an assessment of both the current and forecast conditions at the reporting date.
To measure the ECL, trade receivables and accrued income have been assessed by the divisions and grouped based on ageing. Accrued
income relates to unbilled services provided and has substantially the same risk characteristics as trade receivables. The Group has
therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for accrued
income. The ECL on trade receivables and accrued income is estimated using a provision matrix by reference to payment profiles of
revenue. In addition outstanding trade receivables and accrued income are reviewed on a detailed customer by customer basis taking
into account general economic conditions of the industry in which the debtor operates in, past default experience and an analysis of the
current customer financial position.
For receivables other than trade receivables and accrued income the general approach under IFRS 9 is applied which requires an ECL
allowance to be recorded on initial recognition if appropriate and then at each reporting date an assessment is made to determine any
changes in the risk of default occurring over the expected life of the receivable.
Renewi plc Annual Report and Accounts 2024
199
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.8 Trade and other receivables continued
The Group has an invoice finance facility whereby certain of its trade receivables are sold for an upfront cash payment to a third party
on a regular basis and are only recognised to the extent of the Group’s continuing involvement. For the trade receivables derecognised
the Group has not retained substantially all the risks and rewards of ownership and control has not passed to the third party. The
Group continues to recognise part of the trade receivable according to the Group’s continuing exposure to the risks and rewards,
the value is minimal and is determined by the extent to which the Group is exposed to any remaining late payment risk. The Group
continues to perform the servicing of the receivables sold and is not authorised to use the receivables sold other than in its capacity
as servicer. The value of this service is not considered material for specific disclosure.
Other receivables includes amounts recoverable under invoice finance arrangements from the third party which are classified at
fair value through profit and loss. The classification is appropriate as the receivables are held within a business model which has the
objective to sell contractual cash flows. Amounts owed under leases where the Group is the lessor and the terms of the lease meet the
definition of a finance lease are also classified as other receivables.
Trade and other receivables are analysed as follows:
2024
€m
2023
€m
Non-current assets
Other receivables
1.1
1.0
Prepayments
–
2.7
1.1
3.7
Current assets
Trade receivables
152.0
192.8
Accrued income
70.7
86.7
Expected credit loss allowance
(5.3)
(22.2)
Trade receivables and accrued income – net
217.4
257.3
Other receivables
16.9
16.6
Prepayments
11.3
15.7
245.6
289.6
The carrying amounts of trade and other receivables are denominated in the following currencies:
2024
€m
2023
€m
Euro
245.9
262.0
Sterling
0.8
31.3
246.7
293.3
As at 31 March 2024 the total value of trade receivables subject to the invoice finance facilities, which are derecognised and therefore
not included above, was €122.1m (2023: €103.3m). The Group recognises the continuing involvement carrying amount in trade
receivables of €1.7m (2023: €1.2m) and therefore the net amount of transferred assets was €120.4m (2023: €102.1m). The carrying
amount of the associated liability was €1.7m (2023: €1.2m). The Group considers that the carrying amount of the continuing
involvement asset and related liability equals the fair value.
The amount owed to the Group from the financial institutions providing invoice finance facilities is €6.6m (2023: €10.8m). This
represents the portion of the receivable that has been sold that is not advanced but is covered by credit insurance and is included
within other receivables. This classification also includes €1.3m (2023: €1.0m) relating to the net investment in leases where the
Group acts as lessor of which €1.0m (2023: €0.9m) is non-current and €0.3m (2023: €0.1m) is current. No financial assets within
other receivables were impaired in the current or prior year.
In addition to its invoice finance facilities the Group, within certain jurisdictions of its Maltha division, has access to finance through
a customer’s supplier financing arrangement (reverse discounting), whereby the group can elect to receive payment of certain trade
receivables in advance of its customer’s credit terms. As at the year end the Group had accessed €5.9m in advance of its customer’s
credit terms.
Notes to the financial statements continued
200 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.8 Trade and other receivables continued
The expected credit loss allowance for trade receivables and accrued income is equivalent to 2% (2023: 8%) of gross trade receivables and
accrued income and the movement in the loss allowance is shown below:
2024
€m
2023
€m
At 1 April
22.2
26.0
Charged to Income Statement
0.2
0.4
Released to Income Statement
(0.6)
(3.0)
Utilised
(1.6)
(0.7)
Transferred to disposal group classified as held for sale (note 6.4)
(15.2)
–
Exchange rate changes
0.3
(0.5)
At 31 March
5.3
22.2
The net release to the Income Statement of €0.4m (2023: €2.6m) is split €0.2m from continuing operations (2023: €2.7m) and €0.2m from
discontinued operations (2023: €0.1m charge).
The expected credit loss allowance includes €nil (2023: €14.8m) in relation to 100% of the gross receivable balance for the receivables
relating to the terminated Derby contract in the UK Municipal business line within Specialities which has been included within the amount
transferred to the disposal group classified as held for sale. For March 2023 this receivable is included in the category of more than 180
days past due, for March 2024 it has been transferred to the disposal group classified as held for sale.
The expected credit loss allowance for trade receivables and accrued income is as follows:
31 March 2024
Current
More than
30 days
past due
More than
90 days
past due
More than
180 days
past due
Total
Expected loss rate %
1%
5%
17%
42%
2%
Gross carrying amount (€m)
204.6
5.7
6.4
6.0
222.7
Expected credit loss allowance (€m)
1.4
0.3
1.1
2.5
5.3
31 March 2023
Expected loss rate %
1%
6%
11%
84%
8%
Gross carrying amount (€m)
245.0
6.8
5.5
22.2
279.5
Expected credit loss allowance (€m)
2.5
0.4
0.6
18.7
22.2
No expected credit loss allowance is recognised for other receivables.
The decrease in receivables in the Statement of Cash Flows of €15.7m differs to the balance sheet movement of €46.6m by €30.9m
mainly as a result of the transfer of receivables directly associated with assets classified as held for sale (see note 6.4) and acquisitions
and disposals. The impact of assets acquired or disposed is presented in the Statement of Cash Flows within the €0.2m disposal of
subsidiary and business assets net of acquisition of business assets.
Renewi plc Annual Report and Accounts 2024
201
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.9 Trade and other payables and other non-current liabilities
Accounting policy
Trade and other payables are not interest bearing and are measured initially at fair value and subsequently held at amortised cost.
Where a government grant has been received in relation to an item of capital expenditure it is generally deducted from the carrying
amount of the asset purchased once all relevant conditions, such as completion of the project and an independent audit of costs, have
been met. In circumstances where the grant has been received and all conditions of receipt have not been met the government grant
is recognised as a liability at the value of the cash received. On satisfaction of all conditions it is subsequently transferred to plant
and equipment.
Trade and other payables and other non-current liabilities are analysed as follows:
2024
€m
2023
€m
Non-current liabilities
Accruals and other payables
11.0
17.6
Other tax and social security payables
–
10.8
Deferred revenue
–
5.2
Government grants
–
1.1
11.0
34.7
Current liabilities
Trade payables
145.5
121.2
Accruals and other payables
224.0
284.7
Other tax and social security payables
51.4
62.6
Deferred revenue
48.0
49.7
Deferred consideration
0.2
–
Government grants
4.8
3.6
473.9
521.8
The carrying amounts of trade and other payables and other non-current liabilities are denominated in the following currencies:
2024
€m
2023
€m
Euro
482.0
496.6
Sterling
2.9
59.9
484.9
556.5
The €11.0m (2023: €17.6m) non-current accruals and other payables relates to off-take of certain soil related products which are
expected to take up to 18 months to clear.
At 31 March 2024, the balance of interest accrued relating to total borrowings was €6.1m (2023: €5.9m) and was included within the
accruals and other payables balance. This balance was after finance charges of €41.8m (2023: €29.1m) (including the finance charges
impact of the interest rate swaps) net of a cash outflow of €41.9m (2023: €31.3m) (excluding €2.8m (2023: €0.4m) of loan fees) and
(€0.2)m (2023: €0.2m) relating to exchange rate changes.
Deferred revenue primarily relates to waste received or collected which has not yet been processed in accordance with the
performance obligations of the contracts with customers. At each month end the amount of unprocessed waste is determined and
there is an adjustment to revenue with a corresponding credit to deferred revenue. Additionally, in the UK Municipal business line
within Specialities deferred revenue relates to the service element of the PPP contracts known as life cycle as explained in note 3.1.
Of the deferred revenue recognised at 31 March 2023 of €54.9m (2022: €53.2m), €53.9m (2023: €47.3m) has been recognised in
revenue during the year ended 31 March 2024 and €nil (2023: €4.9m) was sold as part of a disposal of business assets during the year.
The decrease in payables in the Statement of Cash Flows of €9.7m differs to the balance sheet movement of €71.6m by €61.9m as
a result of the transfer of liabilities directly associated with assets classified as held for sale (see note 6.4), capital creditors, foreign
exchange, interest accruals and acquisitions and disposals.
Notes to the financial statements continued
202 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.10 Provisions
Accounting policy
The Group’s policies on provisions for specific areas are:
• Site restoration and aftercare provisions are recognised at the net present value (NPV) of the estimated future expenditure required
to settle the Group’s restoration and aftercare obligations at its landfill and mineral extraction sites. Provision is made for the Group’s
unavoidable costs in relation to restoration liabilities. Provision is made for the NPV of post closure costs (aftercare) as the aftercare
liability arises. A landfill site asset within property, plant and equipment is created on acquisition or as a result of a significant extension
to the site and the asset is then depreciated over the operational period of the site. Costs are charged to the Income Statement based
on the quantity of waste deposited in the year, in order to build up the required provision during the operating period of the landfill site.
• Aftercare provisions relate to landfill sites in the Netherlands, Belgium and the UK. The aftercare obligations in relation to the
Netherlands landfill sites are transferred to the Province in line with the legal framework which requires the Group to prepare aftercare
plans which must be approved by the Province. The Group is required to provide the funds to the Province which are then administered
and controlled by the Province per landfill location. The Group recognises an aftercare provision to the extent that additional
contributions are required. For the landfill sites in Belgium and the UK the aftercare obligation remains with the Group.
• Onerous contract provisions are recognised at the NPV of the future cash flows when the unavoidable costs of meeting the obligation
under the contract exceed the economic benefits expected to be received.
• Legal and warranty provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably measured. The value of
the provision is management’s best estimate of the expenditure required to settle the present obligation based on the most likely
outcome.
• Provisions for restructuring costs are recognised when a detailed formal plan exists and those affected by that plan have a valid
expectation that the restructuring will be carried out.
• Long-service employee awards included within Other provisions are recognised as long-term employee benefits in relation to
employees in the Netherlands and Belgium in accordance with IAS 19 Employee Benefits. The valuation method is similar to defined
benefit pension schemes although the cost is recognised immediately in the Income Statement. These plans are unfunded.
• The split of timings of outflows is not certain and has been estimated based on management’s latest expectation.
Judgements and estimates
The discount rates are reviewed at each year end with consideration given to relevant market rates. Determining appropriate discount
rates to apply to provisions is complex and a source of significant estimation uncertainty. The key input is risk free rates and movement
in these rates had been relatively low in previous years.
The landfill provisions are principally located in the Netherlands and Belgium. The discount rate is calculated with reference to German
Government bond yields as an appropriate Eurozone country primarily due to their higher degree of liquidity compared to Dutch and
Belgian Government bonds. The onerous contract provisions are principally in the UK and the discount rate is calculated with reference to
UK Government bond yields. In determining the discount rate, consideration is also given to the timing of future cash flows. The cash flows
used to determine the outstanding provision are risk adjusted and include annual inflation so there is no risk adjustment included within
the nominal discount rate. In all cases, the final determination of rates used has taken into consideration average bond yields over the last
10 and 20 years and the market bond yields at 31 March 2024. The rates used are not materially different to the market data bond yields at
31 March 2024, differing by between 0.01% and 0.03%.
The table below sets out the range of nominal discount rates used for the significant provisions:
Type of provision
2024
%
2023
%
Landfill provisions in the Netherlands and Belgium
2.25 to 2.45
2.20 to 2.30
Landfill provisions in the UK
4.05 to 4.15
3.40
Onerous contract provisions in the UK
3.80 to 4.25
3.25 to 3.75
Renewi plc Annual Report and Accounts 2024
203
Strategic report
Governance report
Financial statements
Other information
SECTION 4. Operating assets and liabilities continued
4.10 Provisions continued
Provisions are analysed as follows:
Site
restoration
and aftercare
€m
Onerous
contracts
€m
Legal and
warranty
€m
Restructuring
€m
Other
€m
Total
€m
At 1 April 2022
156.9
138.9
23.1
4.0
25.3
348.2
Acquisition through business combinations
–
–
–
–
1.3
1.3
Provided in the year
4.9
0.2
0.4
2.6
5.0
13.1
Released in the year
–
–
(15.1)
(1.5)
(3.3)
(19.9)
Disposed of in the year
–
–
–
–
(1.8)
(1.8)
Finance charges – unwinding of discount (note 5.4)
4.1
4.0
–
–
0.2
8.3
Utilised in the year
(5.5)
(17.3)
(0.9)
(2.1)
(1.5)
(27.3)
Exceptional impact of change in discount rates and
reassessment of UK Municipal contracts (note 3.3)
4.3
21.3
–
–
(0.2)
25.4
Exchange rate changes
(0.2)
(5.2)
–
–
–
(5.4)
At 1 April 2023
164.5
141.9
7.5
3.0
25.0
341.9
Acquisition through business combinations
–
–
–
–
0.3
0.3
Provided in the year
4.0
1.0
0.2
7.8
4.2
17.2
Released in the year
(2.3)
(0.9)
(2.4)
(0.9)
(2.1)
(8.6)
Finance charges – unwinding of discount (note 5.4)*
4.2
5.4
–
–
0.1
9.7
Utilised in the year
(7.0)
(16.9)
(0.6)
(4.6)
(2.0)
(31.1)
Exceptional impact of change in discount rates (note
3.3)
(1.6)
(3.1)
–
–
–
(4.7)
Transferred to disposal group classified as held for sale
(note 6.4)
–
(129.5)
–
(0.1)
–
(129.6)
Exchange rate changes
0.1
3.7
0.1
–
–
3.9
At 31 March 2024
161.9
1.6
4.8
5.2
25.5
199.0
Within one year
10.3
0.9
1.1
5.2
4.0
21.5
Between one and five years
51.6
0.5
0.7
–
6.9
59.7
Between five and ten years
48.0
0.2
0.4
–
4.2
52.8
Over ten years
52.0
–
2.6
–
10.4
65.0
At 31 March 2024
161.9
1.6
4.8
5.2
25.5
199.0
Within one year
11.3
18.9
4.0
3.0
6.5
43.7
Between one and five years
40.6
62.3
0.4
–
6.0
109.3
Between five and ten years
61.9
32.8
0.5
–
3.3
98.5
Over ten years
50.7
27.9
2.6
–
9.2
90.4
At 31 March 2023
164.5
141.9
7.5
3.0
25.0
341.9
*
The finance charges for the unwinding of discount in the year is split between continuing operations €4.1m (2023: €4.2m), as per note 5.4, and discontinued operations
€5.6m (2023: €4.1m).
Notes to the financial statements continued
204 Renewi plc Annual Report and Accounts 2024
SECTION 4. Operating assets and liabilities continued
4.10 Provisions continued
Site restoration and aftercare
The Group’s unavoidable costs have been reassessed at the year end and the NPV fully provided for. The site restoration provisions at
31 March 2024 relate to the cost of final capping and covering of the landfill and mineral extraction sites. These site restoration costs
are expected to be paid over a period of up to 27 years (2023: 28 years) from the balance sheet date. Aftercare provisions cover post-
closure costs of landfill sites which include such items as monitoring, gas and leachate management and licensing. For aftercare
provisions relating to Dutch landfill sites where the province administers and controls the aftercare fund, payments are made to the
province at predetermined dates over a period of up to 10 years. Where the Group is responsible for the aftercare the dates of payments
of these aftercare costs are uncertain but are anticipated to be over a period of at least 30 years from closure of the relevant landfill site.
All site restoration and aftercare costs have been estimated by management based on current best practice and technology available
and may be impacted by a number of factors, including changes in legislation and technology.
Onerous contracts
Onerous contract provisions arise when the unavoidable costs of meeting contractual obligations exceed the cash flows expected.
They are provided for at the lower of the NPV of either exiting the contracts or fulfilling our obligations under the contracts. The provisions
have been calculated on the best estimate of likely future cash flows over the contract term based on the latest projections, including
assumptions on inflationary increases, tonnage inputs, off-take availability and recyclates pricing. The provisions are to be utilised over
the period of the contracts to which they relate with the latest date being 2040. The majority of these contracts are now treated as part
of the disposal group classified as held for sale, see note 6.4.
Legal and warranty
Legal and warranty provisions relate to legal claims, warranties and indemnities. Under the terms of the agreements for the disposal
of certain businesses, the Group has given a number of warranties and indemnities to the purchasers which may give rise to payments.
The Group has a liability until the end of the contractual terms in the agreements. The Group considers each warranty provision based on
the nature of the business disposed of and the type of warranties provided with judgement used to determine the most likely obligation.
On 6 February 2020, the European Commission announced its decision to initiate a formal investigation in which it alleges that the
Walloon Region of Belgium provided state aid to the Group in relation to the Cetem landfill. An adverse judgement would have required
the Walloon Region to seek repayment from the Group and a provision of €15.1m was recognised. On 3 March 2023, the European
Commission concluded its formal investigation and determined that the Belgian Walloon Region did not provide State Aid to the Group.
As a result the provision was released during the year ended 31 March 2023.
Restructuring
The restructuring provision primarily relates to redundancy and related costs incurred as a result of restructuring initiatives. The provision
is expected to be spent in the following twelve months as affected employees leave the business.
Other
Other provisions includes dilapidations €10.0m (2023: €10.9m), long-service employee awards €6.2m (2023: €6.0m) and other
environmental liabilities €9.3m (2023: €8.1m). The dilapidations provisions are determined on a site-by-site basis using internal expertise
and experience and are calculated as the most likely cash outflow at the end of the contracted obligation. The provisions will be utilised
over the period up to 2072.
Sensitivities
Landfill provisions in the Netherlands and Belgium
A 0.5% change in the nominal discount rates would result in a €8m (2023: €9m) change in the provision.
In assessing the future cash flows, assumptions on inflation have been taken into account. The costs for the year from 1 April 2024 have
been inflated to reflect current market pricing depending on the nature of the cost, external inflation forecasts and taking into account
actual inflation experienced to date and any legal and contractual circumstances. For all subsequent periods a 2% inflation rate has
been assumed in line with the ECB’s monetary policy target. Further changes for costs of key items, such as capping materials and water
treatment may arise but they are difficult to estimate. For illustration, the impact of a further 5% increase in these key costs would lead
to an increase in provisions of €6m.
Renewi plc Annual Report and Accounts 2024
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Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing
This section outlines how the Group manages its capital structure and related financing costs. It includes cash, borrowings,
derivatives and the equity of the Group. The instruments in place enable the Group to maintain the required capital structure
in order to finance the activities both now and in the future.
Total net debt reflects the Group’s cash and cash equivalents and borrowings, including IFRS 16 lease liabilities and PPP cash
and non-recourse debt. Net debt for covenant reporting includes cash and cash equivalents and finance leases previously
reported under IAS 17 but excludes additional lease liabilities reported under IFRS 16 and both cash and the non-recourse
debt relating to the UK PPP contracts.
5.1 Movement in total net debt
2024
At
1 April 2023
€m
Cash flows
€m
Acquired
(Note 6.1)
€m
Other
non-cash
changes
€m
Transferred to
disposal group held
for sale (Note 6.4)
€m
Exchange
movements
€m
At
31 March
2024
€m
RCF and overdrafts – floating interest rates
(101.2)
(52.4)
–
0.9
–
–
(152.7)
Bank loans and private placements – fixed interest rates
(104.6)
15.0
–
–
–
–
(89.6)
Retail bonds
(199.5)
–
–
(0.2)
–
–
(199.7)
Lease liabilities
(254.8)
55.3
–
(60.0)
6.8
(0.3) (253.0)
Debt excluding PPP non-recourse debt
(660.1)
17.9
–
(59.3)
6.8
(0.3) (695.0)
PPP non-recourse debt
(88.3)
5.3
–
–
85.4
(2.4)
–
Total gross debt
(748.4)
23.2
–
(59.3)
92.2
(2.7) (695.0)
Cash and cash equivalents – core
43.7
35.8
0.7
–
(1.6)
0.4
79.0
Cash and cash equivalents – restricted relating to
PPP contracts
19.0
3.3
–
–
(22.9)
0.6
–
Total net debt
(685.7)
62.3
0.7
(59.3)
67.7
(1.7) (616.0)
Analysis of total net debt:
Net debt excluding PPP non-recourse net debt
(616.4)
53.7
0.7
(59.3)
5.2
0.1
(616.0)
PPP non-recourse net debt
(69.3)
8.6
–
–
62.5
(1.8)
–
Total net debt
(685.7)
62.3
0.7
(59.3)
67.7
(1.7) (616.0)
2023
At
1 April 2022
€m
Cash flows
€m
Acquired
(Note 6.1)
€m
Other
non-cash
changes
€m
Transferred to
disposal group held
for sale
€m
Exchange
movements
€m
At
31 March
2023
€m
RCF and overdrafts – floating interest rates
(14.1)
(79.4)
(7.0)
(0.6)
–
(0.1)
(101.2)
Bank loans and private placements – fixed interest rates
(24.8)
(80.0)
–
0.2
–
–
(104.6)
Retail bonds
(299.2)
100.0
–
(0.3)
–
–
(199.5)
Lease liabilities
(219.8)
47.5
(30.7)
(52.0)
–
0.2
(254.8)
Debt excluding PPP non-recourse debt
(557.9)
(11.9)
(37.7)
(52.7)
–
0.1
(660.1)
PPP non-recourse debt
(100.2)
8.1
–
–
–
3.8
(88.3)
Total gross debt
(658.1)
(3.8)
(37.7)
(52.7)
–
3.9
(748.4)
Cash and cash equivalents – core
42.5
1.5
–
–
–
(0.3)
43.7
Cash and cash equivalents – restricted relating to
PPP contracts
21.1
(1.1)
–
–
–
(1.0)
19.0
Total net debt
(594.5)
(3.4)
(37.7)
(52.7)
–
2.6
(685.7)
Analysis of total net debt:
Net debt excluding PPP non-recourse net debt
(515.4)
(10.4)
(37.7)
(52.7)
–
(0.2)
(616.4)
PPP non-recourse net debt
(79.1)
7.0
–
–
–
2.8
(69.3)
Total net debt
(594.5)
(3.4)
(37.7)
(52.7)
–
2.6
(685.7)
Notes to the financial statements continued
206 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.1 Movement in total net debt continued
2024
€m
2023
€m
Net increase in cash and cash equivalents
39.8
0.4
Net decrease (increase) in borrowings and lease liabilities
23.2
(3.8)
Cash flows in total net debt
63.0
(3.4)
Bank loans and lease liabilities acquired through a business combination
–
(37.7)
Lease liabilities entered into during the year
(60.0)
(57.4)
Lease liabilities cancelled during the year
–
5.4
Capitalisation of loan fees
2.8
0.3
Amortisation of loan fees
(2.1)
(1.0)
Transferred to disposal group classified as held for sale (note 6.4)
67.7
–
Exchange (loss) gain
(1.7)
2.6
Movement in total net debt
69.7
(91.2)
Total net debt at beginning of year
(685.7)
(594.5)
Total net debt at end of year
(616.0)
(685.7)
5.2 Cash and cash equivalents
Accounting policy
In the prior year cash and cash equivalents included core cash balances and restricted cash at bank balances relating to UK Municipal and
were held at amortised cost. In the current year these balances, totalling €24.5m, have been transferred to assets held for sale as part of
the UK Municipal disposal group, see note 6.4. The cash held in the PPP Special Purpose Vehicles (SPVs) is not freely available to the Group
as the funds are restricted in accordance with the contracts entered into between the SPVs and the banks and cash can only be released
to the Group when approved by the lenders. Also included in cash and cash equivalents is €4.3m (2023: €4.0m) held by non-subsidiaries
which is only available to the Group in consultation with all other partners.
Cash and cash equivalents are analysed as follows:
2024
€m
2023
€m
Cash at bank and in hand – core
79.0
43.7
Cash at bank – restricted relating to PPP contracts*
–
19.0
Total cash and cash equivalents
79.0
62.7
*
The current year balance of €22.9m has been transferred to assets held for sale as part of the UK Municipal disposal group, so is no longer part of the above disclosure –
see note 6.4.
The carrying amounts of cash and cash equivalents are denominated in the following currencies:
2024
€m
2023
€m
Euro
50.1
22.2
Sterling
28.9
40.5
79.0
62.7
Renewi plc Annual Report and Accounts 2024
207
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Financial statements
Other information
Notes to the financial statements continued
SECTION 5. Capital structure and financing continued
5.3 Borrowings
Accounting policy
Retail bonds and bank borrowings
Retails bonds and interest bearing loans are recorded at their initial fair value which normally reflects the proceeds received, net
of direct issue costs and subsequently at amortised cost. When the Group exchanges one debt instrument for another one with an
existing lender and with substantially different terms, such exchange is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modifications of the terms of an
existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. The terms are
considered to be substantially different if the discounted present value of the cash flows under the new terms calculated using the
original effective rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial
liability. Any gain or loss on extinguishment is recognised in the Income Statement.
Lease liabilities
The Group leases various real estate properties and items of plant, machinery and trucks for normal business operations across the
divisions. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The Group has applied the exemption not to recognise a right-of-use asset and a lease liability where the leased assets are of a low
value determined as being below €5,000 when new or when the lease duration is for 12 months of less. For these items the annual
expense of lease payments is disclosed in note 3.2.
Estimates and assumptions
• Extension and termination options are included in a number of real estate and plant and machinery leases across the Group. In
determining the lease term, management has considered all facts and circumstances that create an economic incentive to exercise
such options. Extension options are only included in the lease term if the lease is reasonably certain to be extended or not terminated.
• The Group estimates the incremental borrowing rate by taking into account the type of right-of-use asset, the lease term and the
country of operation.
Borrowings are analysed as follows:
2024
€m
2023
€m
Non-current borrowings
Retail bonds – fixed interest rates
124.7
199.5
Bank loans and private placements – fixed interest rates
89.6
89.6
Revolving credit facility – floating interest rates
152.6
101.1
Lease liabilities
207.5
208.3
PPP non-recourse debt
–
83.1
574.4
681.6
Current borrowings
Retail bonds – fixed interest rates
75.0
–
Bank loans and private placements – fixed interest rates
–
15.0
Bank overdrafts – floating interest rates
0.1
0.1
Lease liabilities
45.5
46.5
PPP non-recourse debt
–
5.2
120.6
66.8
European private placements, revolving credit facility, retail bond and bank loan borrowings include capitalised loan fees of €3.1m
(2023: €2.3m). PPP non-recourse debt was transferred during the year to a disposal group classified as held for sale (see note 6.4).
208 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.3 Borrowings continued
The carrying amounts of borrowings are denominated in the following currencies:
2024
€m
2023
€m
Euro
694.4
653.0
Sterling
0.6
95.4
695.0
748.4
The table below details the maturity profile of non-current borrowings:
2024
2023
Debt excluding
PPP non-recourse
debt
€m
PPP non-recourse
debt*
€m
Total
debt
€m
Debt excluding
PPP non-recourse
debt
€m
PPP non-recourse
debt
€m
Total
debt
€m
Between one and two years
46.7
–
46.7
215.1
5.7
220.8
Between two years and five years
351.6
–
351.6
211.6
18.8
230.4
Over five years
176.1
–
176.1
171.8
58.6
230.4
574.4
–
574.4
598.5
83.1
681.6
*
PPP non-recourse debt was transferred during the year to a disposal group classified as held for sale (see note 6.4).
Borrowings included within liabilities of disposal group classified as held for sale – at the current year end the PPP non-recourse debt
of €85.4m is included within the UK Municipal disposal group, along with lease liabilities totalling €6.8m. These borrowings continue to be
measured on the same basis as in the prior year, being amortised cost, and are all denominated in Sterling. The maturity profile of the
borrowings from the perspective of the Group is now within one year, however the underlying maturity profile is:
PPP non-recourse debt – 1-2 years €6.3m; 2-5 years €21.0m; and over 5 years €52.3m.
Lease liabilities – 1-2 years €1.7m; 2-5 years €1.9m; and over 5 years €1.2m.
Retail bonds
At 31 March 2024, the Group had two issues of green retail bonds. The green retail bonds of €75m (2023: €75m) maturing in July 2024 have
an annual gross coupon of 3.00% and the green retail bonds of €125m (2023: €125m) maturing in July 2027 have an annual gross coupon of
3.00%. The green retail bonds are unsecured and have cross guarantees from members of the Group. Further details are given in note 5.8.
Bank loans and facilities – fixed interest rates and floating interest rates
At 31 March 2024, the Group had a Euro denominated multicurrency green finance facility of €455m (2023: €470m), including a €400m
(2023: €400m) revolving credit facility (RCF) and €55m (2023: €70m) European private placements (EUPP).
In August 2023, the Group completed the renewal of its revolving credit facility of €400m for an initial five-year term with two one-year
extension options, together with a €150m accordion option to increase the facility subject to lender approval at that time. The extension
option does not give rise to an embedded derivative. At 31 March 2024 €155.0m (2023: €102.5m) of the RCF was drawn for borrowings in
Euros with floating interest rates. The remaining €245.0m (2023: €297.5m) was available for drawing of which €48.5m (2023: €48.5m) was
allocated for ancillary overdraft and guarantee facilities. The RCF qualifies as green financing as per the Green Finance Framework and is
aligned to the International Capital Market Association Green Bond Principles and the Loan Market Association Green Loan Principles.
There are three green KPIs which result in an interest rate margin adjustment dependent upon performance against pre-determined
targets that were agreed with the Lenders. The green KPIs are non-financial and specific to the performance of the Group in the following
areas: recycling rate, carbon footprint Scope 1 & 2 and lost time injury rate (LTIF). The impact of the margin adjustment is insignificant, and
therefore the IFRS 9 Financial instruments solely principal payments and interest criteria are met and it is appropriate to account for the
RCF on an amortised cost basis.
The EUPP has a maturity of December 2025 for €10m with a fixed interest rate of 2.916% and November 2029 for €45m at a fixed interest
rate of 4.676%.
Renewi plc Annual Report and Accounts 2024
209
Strategic report
Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing continued
5.3 Borrowings continued
The Group has a bank loan of €10m loan repayable in one lump sum on 10 November 2027 at a fixed interest rate of 4.22% and a
finance contract with the European Investment Bank for a facility of €40m of which €25m is drawn at a fixed interest rate of 3.572%
repayable in seven equal annual instalments commencing on 15 December 2025.
All bank loans are unsecured and have cross guarantees from members of the Group. Further details are given in note 5.8.
Lease liabilities
The Group’s lease liabilities are payable as follows:
2024
2023
Minimum lease
payments
€m
Interest
€m
Principal
€m
Minimum lease
payments
€m
Interest
€m
Principal
€m
Within one year
54.4
(8.9)
45.5
54.5
(8.0)
46.5
Between one and five years
112.6
(25.6)
87.0
118.9
(23.4)
95.5
More than five years
209.1
(88.6)
120.5
198.2
(85.4)
112.8
376.1
(123.1)
253.0
371.6
(116.8)
254.8
For most plant and machinery leases the Group has an option to purchase the leased assets at the end of the lease term. There are no
restrictions imposed by lessors to take out further debt or leases.
Liquidity risk
Liquidity risk is the risk that the Group does not have sufficient financial resources to meet its obligations as they fall due. The Group
primarily manages liquidity risk by monitoring forecast cash flows to ensure that revolving credit facility drawdowns are arranged as
necessary and an adequate level of headroom is maintained. As explained in note 4.8 the Group has an invoice finance facility and
access to reverse factoring (receiving cash in advance of credit terms) through a customer’s supplier finance arrangement. The Group
does not have any supplier finance arrangements with its suppliers. The way the Group manages liquidity risk has not changed from
the previous year. Furthermore, the Group utilises its cash resources to manage its short-term liquidity.
The Group has unutilised committed borrowing facilities expiring within one year of €nil (2023: €30.0m), between one and two years
of €nil (2023: €80.0m) and expiring more than two years of €226.5m (2023: €169.0m) in relation to the Euro denominated multicurrency
green finance and European Investment bank facilities. In addition, the Group has access to €12.5m (2023: €12.5m) of undrawn
uncommitted working capital facilities. The facilities expiring comprise the retail bond of €75m in July 2024 and the €10m EUPP loan
in December 2025.
The following table analyses the Group’s financial liabilities, including derivative financial instruments into relevant maturity groupings.
The maturities of the undiscounted cash flows, including interest and principal, at the balance sheet date are based on the earliest
date on which the Group is obliged to pay and as a result will not always reconcile with the amounts disclosed in the Balance Sheet.
Notes to the financial statements continued
210 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.3 Borrowings continued
Within
one year
€m
Between one
and five years
€m
Over
five years
€m
Total
contractual
cash flows
€m
At 31 March 2024
Retail bonds
81.0
136.3
–
217.3
Bank loans – Revolving credit facility, private placements and other bank loans
10.0
221.8
59.1
290.9
Lease liabilities
54.4
112.6
209.1
376.1
Trade and other payables
364.6
11.0
–
375.6
Financial liabilities and derivative financial liabilities
510.0
481.7
268.2
1,259.9
Fuel derivatives
(1.3)
(0.1)
–
(1.4)
Financial liabilities and total derivatives
508.7
481.6
268.2
1,258.5
At 31 March 2023
Retail bonds
6.0
217.3
–
223.3
Bank loans – Revolving credit facility, private placements and other bank loans
23.6
197.0
63.9
284.5
Bank loans – PPP non-recourse debt
11.7
44.0
72.3
128.0
Lease liabilities
54.5
118.9
198.2
371.6
PPP Interest rate swaps
0.1
1.6
1.1
2.8
Fuel derivatives
1.9
0.2
–
2.1
Trade and other payables
417.1
–
–
417.1
Financial liabilities and derivative financial liabilities
514.9
579.0
335.5
1,429.4
PPP Interest rate swaps
(0.7)
(0.7)
0.1
(1.3)
Fuel derivatives
(0.4)
–
–
(0.4)
Financial liabilities and total derivatives
513.8
578.3
335.6
1,427.7
Renewi plc Annual Report and Accounts 2024
211
Strategic report
Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing continued
5.4 Net finance charges
Accounting policy
Finance charges, including direct issue costs, are accounted for on an accruals basis in the Income Statement using the effective
interest rate method. Also included is the charge for discount unwind of long-term provisions with further details provided in note 4.10.
In certain circumstances, finance charges may be classified as non-trading or exceptional due to their size or incidence to enable
a better understanding of the underlying net finance costs. These non-trading or exceptional income or charges include:
• The change in fair value where a derivative financial instrument does not qualify for hedge accounting.
• Ineffectiveness incurred by a derivative financial instrument that does qualify for hedge accounting.
• The gain or loss where a derivative financial instrument is terminated.
Net finance charges from continuing operations are analysed as follows:
2024
€m
Restated*
2023
€m
Finance charges
Interest on borrowings
20.1
14.0
Lease liabilities interest
9.2
7.6
Unwinding of discount on provisions (note 4.10)
4.1
4.2
Interest charge on retirement benefit schemes (note 7.2)
0.3
–
Other finance costs
5.8
1.9
Total finance charges
39.5
27.7
Finance income
Interest income on retirement benefit schemes (note 7.2)
–
(0.2)
Other finance income
(1.5)
(0.7)
Total finance income
(1.5)
(0.9)
Net finance charges
38.0
26.8
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Notes to the financial statements continued
212 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.5 Derivative financial instruments and hedging activities
Accounting policy
All derivatives are initially recognised at fair value and subsequently measured at fair value at each reporting date. The fair value of a
derivative financial instrument is classified as a non-current asset or liability when the remaining maturity of the hedged item is more
than one year and as a current asset or liability when the remaining maturity is less than one year.
In accordance with its treasury policy, the Group only holds derivative financial instruments to manage the Group’s exposure to financial
risk. The Group does not hold derivative financial instruments for trading or speculative purposes.
The exposure to financial risk includes interest risk and foreign exchange risk on the Group’s variable rate borrowings and commodity risk
in relation to diesel consumption. The Group manages these risks through a range of derivative financial instruments, including interest
rate swaps and fuel derivatives.
Hedge ineffectiveness
Sources of hedge ineffectiveness in the Group may arise when there is a change in circumstances that affect the terms of the hedged
item such that the critical terms no longer match exactly the critical terms of the hedging instrument. For example if there is a change in
the credit risk of both counterparties, if there is a change in the underlying debt profile of a variable rate loan in relation to interest rate
swaps or a reduced requirement for diesel volumes in relation to the fuel derivatives. Any ineffectiveness is recognised in the Income
Statement as a non-trading finance income or finance charge.
Derivative financial instruments are analysed as follows:
2024
2023
Assets
€m
Liabilities
€m
Assets
€m
Liabilities
€m
Fuel derivatives – cash flow hedges
1.4
–
0.4
2.1
Interest rate swaps relating to PPP contracts – cash flow hedges*
–
–
1.2
2.4
Total
1.4
–
1.6
4.5
Current
1.3
–
0.4
1.9
Non-current
0.1
–
1.2
2.6
Total
1.4
–
1.6
4.5
*
As at 31 March 2024, the assets and liabilities arising from interest rate swaps relating to PPP contracts have been transferred to the assets classified as held for sale and
liabilities of disposal group classified as held for sale, as they relate to the UK Municipal business.
Fuel derivatives
The notional value of wholesale fuel covered by fuel derivatives at 31 March 2024 amounted to €15.6m (2023: €17.7m). The Group has
annual usage across the Netherlands and Belgium of approximately 37m litres of diesel per annum of which approximately 23m litres have
been fixed at an average of €0.56 per litre for the year to 31 March 2025 (notional value €13.1m) and a further 5m litres has been fixed at an
average of €0.55 per litre for the year to 31 March 2026 (notional value €2.5m).
Renewi plc Annual Report and Accounts 2024
213
Strategic report
Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing continued
5.5 Derivative financial instruments and hedging activities continued
The following table shows the impact of the Group’s cash flow hedges in Other Comprehensive Income:
2024
€m
2023
€m
At 1 April
(3.6)
(7.3)
Effective element of changes in fair value arising from:
Fuel derivatives
3.1
(8.6)
Interest rate swaps relating to PPP contracts (discontinued operations)
1.1
12.3
Transfer of cumulative movement to disposal group
0.8
–
At 31 March
1.4
(3.6)
Net investment hedge
Renewi plc, a Sterling functional currency company, has Euro borrowings of €200m (2023: €200.0m) with a fair value of €195.4m
(2023: €196.5m) which have been designated as a net investment hedge of the Group’s investments denominated in Euros. The hedge
was 100% effective for the year ended 31 March 2024 (2023: 100%), and as a result the related exchange loss of €5.4m (2023: €9.5m
gain) has been recognised in the exchange reserve in the consolidated financial statements.
The following tables show the impact of the Group’s cash flow hedges and net investment hedge on the Balance Sheet, Other
Comprehensive Income and Income Statement:
Hedging instrument
Hedged item
March 2024
Nominal
amount at
31 March 2024
€m
Change in the
fair value
used to
determine
hedge
effectiveness
€m
Cumulative cash
flow hedge
movement in
Other
Comprehensive
Income
€m
Hedge
ineffectiveness
included in the
Income
Statement in
the year
€m
Cumulative
movement in
exchange
reserve
€m
Change in the
fair value
used to
determine
hedge
effectiveness
€m
Weighted
average
hedged rate
Hedge
ratio
Fuel derivatives/
purchase of diesel
15.6
3.1
1.4
–
–
(3.1)
€0.56
per litre
1:1
Net investment hedge:
Euro borrowings/investment
in Euro denominated
subsidiaries
200.0
(5.8)
–
–
(19.3)
5.8
–
1:1
Included in disposal group:
Interest rate swaps/
variable rate borrowings
relating to PPP contracts
88.9
1.1
(0.9)
(0.2)
–
0.9
4.07%
1:1
Hedging instrument
Hedged item
March 2023
Nominal
amount at
31 March 2023
€m
Change in the
fair value
used to
determine
hedge
effectiveness
€m
Cumulative cash
flow hedge
movement in
Other
Comprehensive
Income
€m
Hedge
ineffectiveness
included in the
Income
Statement in
the year
€m
Cumulative
movement in
exchange
reserve
€m
Change in the
fair value used
to determine
hedge
effectiveness
€m
Weighted
average
hedged rate
Hedge
ratio
Fuel derivatives/
purchase of diesel
17.7
(8.6)
(1.7)
–
–
8.6
€0.62
per litre
1:1
Interest rate swaps/
variable rate borrowings
relating to PPP contracts
91.6
13.5
(1.9)
(0.9)
–
(12.6)
4.07%
1:1
Net investment hedge:
Euro borrowings/investment in
Euro denominated subsidiaries
200.0
8.0
–
–
(24.7)
(8.0)
–
1:1
Notes to the financial statements continued
214 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.6 Financial instruments and related disclosures
Accounting policy
The Group classifies and measures its financial assets at amortised cost or at fair value (either through Other Comprehensive Income or
through profit or loss). The classification depends on the entity’s business model for managing the financial assets and the contractual
term of the cash flows.
Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest,
are measured at amortised cost.
Derivatives are initially recognised at fair value and subsequently measured at fair value at the end of each reporting period. The
accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so,
the nature of the item being hedged. Derivatives which are not hedging instruments are measured at fair value through profit or loss upon
initial recognition
Investment funds are classified and measured at fair value through profit or loss with changes in the fair value recognised in the Income
Statement. Unlisted investments not held for trading are held at fair value and the Group has elected to present subsequent changes in fair
value in Other Comprehensive Income. Dividends on these investments are recognised in the Income Statement when the Group’s right to
receive the dividends is established, it is probable that they will be paid and the amount can be reliably measured.
Financial liabilities are classified and measured at fair value through profit or loss or at amortised cost.
Fair value hierarchy
The Group uses the following hierarchy of valuation techniques to determine the fair value of financial instruments:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
• Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly
or indirectly.
• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable
market data.
During the year ended 31 March 2024, there were no transfers between level 1 and level 2 fair value measurements, but there has been
a transfer from level 2 to level 3.
The other unlisted non-current investments, comprising unconsolidated companies, were included in level 2 for the year ended 31 March
2023, as the fair value approximated to observable book values, being the original purchase price. In the current year there has been a
movement in the valuation of these investments, such that they are now carried at a fair value that is not based on observable market
data. The fair value of these investments has been calculated through discounting future cash flows, being the best estimate of future
dividend income streams discounted using the applicable cost of equity.
The significant unobservable inputs used in the level 3 fair value measurements were the risk adjusted discount rate and the expected
cash inflows from dividends. The risk adjusted discount rate of 12.19% (2023: 16.34%) has been used in the fair value measurement.
Increasing either the discount rate or cash inflows by +/- 5% leads to changes in fair values that are less than €1.0m, and it is concluded
that no reasonably possible change to either of these assumptions would result in a material change to the fair value of the investment.
Valuation techniques used to derive level 2 fair values
• In the prior year, other unlisted non-current investments comprise unconsolidated companies where the fair value approximates the
book value.
• Valuations for investment funds are provided by the fund manager.
• Derivative financial instruments are determined by discounting the future cash flows using the applicable period-end yield curve.
• The fair values of the fixed interest rate bank loans and private placements are determined by discounting the future cash flows using
the applicable period-end yield curve.
• The fair value of retail bonds is based on indicative market pricing.
Renewi plc Annual Report and Accounts 2024
215
Strategic report
Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing continued
5.6 Financial instruments and related disclosures continued
Valuation techniques used to derive level 3 fair values
• In the current year, the unlisted non-current investments, comprising unconsolidated companies, have been fair valued by
discounting the expected future cash flows from dividend income streams using a pre-tax expected market rate of return.
The table below presents the Group’s assets and liabilities measured at fair values:
Level 2
Level 3
Total
2024
€m
2023
€m
2024
€m
2023
€m
2024
€m
2023
€m
Assets
Unlisted non-current investments (note 4.4)
–
4.6
6.4
–
6.4
4.6
Investment funds (note 4.4)
11.3
10.9
–
–
11.3
10.9
Derivative financial instruments (note 5.5)
1.4
1.6
–
–
1.4
1.6
12.7
17.1
6.4
–
19.1
17.1
Liabilities
Derivative financial instruments (note 5.5)
–
4.5
–
–
–
4.5
Bank loans and private placements – fixed interest
rates (note 5.3)
95.0
110.6
–
–
95.0
110.6
Retail bonds (note 5.3)
195.4
196.5
–
–
195.4
196.5
290.4
311.6
–
–
290.4
311.6
Carrying value of financial assets and financial liabilities
Financial assets
Note
2024
€m
2023
€m
Financial assets at amortised cost
Loans to associates and joint ventures
4.4
1.0
1.0
Trade and other receivables at amortised cost*
4.8
223.3
261.9
Cash and cash equivalents
5.2
79.0
62.7
Financial assets relating to PPP contracts
4.5
–
131.0
Derivatives used for hedging
Fuel derivatives
5.5
1.4
0.4
Interest rate swaps relating to PPP contracts
5.5
–
1.2
Financial assets at fair value through profit or loss (mandatorily)
Investment funds
4.4
11.3
10.9
Other receivables relating to invoice finance facilities
4.8
6.6
10.8
Financial assets at fair value through other comprehensive income
Unlisted non-current investments
4.4
6.4
4.6
329.0
484.5
*
Trade and other receivables at amortised cost comprise trade receivables and accrued income net of allowance of €217.4m (2023: €257.3m) and other receivables held
at amortised cost of €5.9m (2023: €4.6m).
The Group considers that the fair value of financial assets is not materially different to their carrying value.
Notes to the financial statements continued
216 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.6 Financial instruments and related disclosures continued
Financial liabilities
Note
2024
€m
2023
€m
Financial liabilities at amortised cost
Bank loans, revolving credit facility, private placements and overdrafts
5.3
242.3
205.8
Retail bonds
5.3
199.7
199.5
Lease liabilities
5.3
253.0
254.8
Trade and other payables excluding non-financial liabilities*
4.9
380.7
423.5
PPP non-recourse debt
5.3
–
88.3
Derivatives used for hedging
Fuel derivatives
5.5
–
2.1
Interest rate swaps relating to PPP contracts
5.5
–
2.4
1,075.7
1,176.4
*
Trade and other payables excluding non-financial liabilities comprises trade payables, other payables and accruals of €380.7m (2023: €423.5m).
With the exception of retail bonds, private placements and fixed rate bank loans, the Group considers that the fair value of other bank
borrowings, trade and other payables and lease liabilities are not materially different to their carrying value.
5.7 Financial risk management objectives and policies
The Group is exposed to market risk (interest rate risk and commodity price risk), foreign exchange risk, liquidity risk and
counterparty credit risk. The Group’s Treasury Committee is charged with managing and controlling risk relating to the
financing and liquidity of the Group under policies approved by the Board of Directors. The Group does not enter into
speculative transactions.
Interest rate risk
Changes in interest rates could have an impact on the interest cover covenant of the Group’s core facilities and on the interest charge
in the Income Statement. In order to monitor and manage the risk, borrowings and the expected interest cost for the year are regularly
forecast and sensitised for potential changes.
The Group has continued to limit its exposure to interest rate risk by using fixed rate retail bonds, European private placements, fixed rate
lease liabilities and fixed rate bank borrowings. The proportion of the Group’s total borrowings excluding PPP non-recourse floating rate
borrowings that were fixed at 31 March 2024 was €542.3m (2023: €559.8m) or 78% (2023: 85%). Additionally, the PPP non-recourse floating
rate borrowings are hedged using interest rate swaps which hedge the interest cash flows.
Interest rate swaps are accounted for under IFRS 9 with changes in the fair value recognised in Other Comprehensive Income, as they are
effective hedges. Any ineffectiveness is recognised in the Income Statement as a non-trading income or charge.
Interest rate sensitivity for bank borrowings
Interest on the floating rate revolving credit facilities will vary as interest rates increase or decrease. If rates had moved by 1% the impact
on profit before tax would have been a loss or gain of €1.4m (2023: €1.1m) based on the average bank borrowings during the year.
Renewi plc Annual Report and Accounts 2024
217
Strategic report
Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing continued
5.7 Financial risk management objectives and policies continued
Foreign exchange risk
The Group operates in the UK and is exposed to translation risk on the value of assets denominated in Sterling into Euros. Renewi plc,
a Sterling functional currency company, has Euro borrowings which are designated as a net investment hedge of the Group’s
investments denominated in Euros. The Group has limited transactional risk as the Group’s subsidiaries conduct the majority of their
business in their respective functional currencies. Some risk arises in Euros on the export of processed waste from the UK to Europe.
Foreign exchange sensitivity
The impact of a change of Sterling foreign exchange rates of 10% on the Group’s profit before tax would be €2.3m (2023: €3.2m) and the
impact on underlying profit before tax would have been €1.2m (2023: €1.4m).
Commodity price risk and sensitivity
The Group is exposed to diesel price changes which are managed using forward contracts. The Group manages other exposures
to prices of paper, plastics, metals, residual fuels and other recyclates associated with off-take through commercial contracting.
The impact of a change in unhedged wholesale fuel prices (excluding duty) of 50% on the Group’s profit before tax would have
been €4.1m (2023: €3.2m).
Credit risk
Credit risk is the risk of financial loss where counterparties are not able to meet their obligations. The Group’s principal financial assets
are cash and cash equivalents, trade and other receivables and financial assets relating to PPP contracts. The Group’s objective is to
reduce its exposure to counterparty default by restricting the type of counterparty it deals with and by employing an appropriate policy
in relation to the collection of trade receivables.
The Group recognises lifetime expected credit losses at the point of initial recognition for trade receivables and accrued income as set
out in note 4.8. For other financial assets, a loss allowance is recognised for expected credit losses taking into account changes in the
level of credit risk. Where credit risk is considered to be low, the loss allowance is limited to expected losses arising from default events
that are possible within 12 months from the balance sheet date. At 31 March 2024, taking into account the impact of macroeconomic
factors, there has not been a significant increase in credit risk in relation to receivables where the IFRS 9 general approach is followed
to determine expected credit loss.
At 31 March 2024, the amount of credit risk on cash and cash equivalents totalled €103.5m (2023: €62.7m), comprising €79.0m within
the continuing operations of the Group and €24.5m held within assets held for sale as part of the UK Municipal disposal group. The
banks and financial institutions used by the Group for core cash and cash equivalents are restricted to those with the appropriate
geographical presence and suitable credit rating. The Group has an objective to minimise cash and where possible repay the Group
borrowings to manage counterparty credit risk amongst other objectives. The restricted cash relating to PPP contracts is managed
in accordance with the guidelines specific to each of the PPP contracts. Expected credit losses over cash and cash equivalents are
considered to be immaterial with no losses experienced.
Trade and other receivables mainly comprise amounts due from customers for services performed. Each division monitors the level of
trade receivables on a monthly basis, continually assessing the risk of default by any counterparty taking into account that the Group
uses credit insurance to minimise the credit risk of trade receivables. A detailed review continues to be undertaken at a customer level
in some cases, in order to assess the likely potential of default considering the nature of the customers business. At 31 March 2024, the
amount of credit risk on trade and other receivables amounted to €245.5m (2023: €261.9m), comprising €223.3m within the continuing
operations of the Group and €22.2m held within assets held for sale as part of the UK Municipal disposal group. The Group does not
hold any collateral as security.
The financial assets relating to PPP contracts are recoverable from the future revenues relating to these contracts. Management
consider these to be very low risk as the counterparties for the future revenues are local authorities or councils in the UK. This is
reviewed on a regular basis and there has been no change in the capacity of the counterparties to meet the contractual cash flow
obligations. At 31 March 2024, the amount of credit risk on financial assets amounted to €127.6m (2023: €131.0m), which has been
transferred to assets held for sale as part of the UK Municipal disposal group.
For derivative financial assets the maximum exposure to credit risk at the reporting date is the net fair value of the derivative assets
which are included in the consolidated statement of financial position.
No other loans to associates or joint ventures are credit impaired.
Notes to the financial statements continued
218 Renewi plc Annual Report and Accounts 2024
SECTION 5. Capital structure and financing continued
5.8 Capital management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide optimal
returns for shareholders, maintain an efficient capital structure to reduce the cost of capital and provide appropriate levels of liquidity
headroom. In order to meet these objectives, the Group may issue or repay debt, issue new shares or adjust the amount of dividend
paid to shareholders.
No dividends were paid for the year ended 31 March 2023 and no interim dividend has been made for the year ended 31 March 2024.
The Board intend to reinstate dividend payments with a final dividend for the financial year ended 31 March 2024, and a progressive
policy targeting sustainable growth whilst maintaining underlying earnings cover of 3.0-4.0 times thereafter.
The following table shows the capital of the Group:
Note
2024
€m
2023
€m
Total borrowings
5.3
695.0
748.4
Less: PPP non-recourse borrowings*
5.3
–
(88.3)
Less: Lease liabilities as a result of the adoption of IFRS 16
(247.9)
(245.8)
Less: core cash and cash equivalents (excluding restricted cash at bank relating to PPP contracts)
5.2
(79.0)
(43.7)
Net debt aligned with covenant definition
368.1
370.6
Total equity
325.7
347.3
Total capital
693.8
717.9
*
The current year balance of €85.4m has been transferred to assets held for sale as part of the UK Municipal disposal group, so is no longer part of the above disclosure –
see note 6.4.
The Group monitors its financial capacity by reference to key financial ratios which provide a framework within which the Group’s capital
base is managed. The Group’s Euro denominated multicurrency green finance facility agreements have covenants, including adjusted
net debt to comparable adjusted EBITDA and interest cover in accordance with a frozen GAAP concept. The Group has complied with
its banking covenants during the year.
5.9 Equity
Accounting policy
Share capital and share premium
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or share options are
shown in equity as a deduction, net of tax, from the proceeds. The share premium account represents any excess of the net proceeds over
the nominal value of any shares issued.
Share capital ordinary shares
Share
premium
Number
€m
€m
Share capital allotted, called up and fully paid
At 1 April 2022 (ordinary shares of £1 each)
80,059,937
99.5
473.8
Issued under share option schemes (ordinary shares of £1 each)
190,358
0.3
0.3
At 31 March 2023 (ordinary shares of £1 each)
80,250,295
99.8
474.1
Issued under share option schemes (ordinary shares of £1 each)
301,075
0.3
0.4
At 31 March 2024 (ordinary shares of £1 each)
80,551,370
100.1
474.5
During the year, 301,075 (2023: 190,358) ordinary shares were allotted. These new shares resulted from the exercise of share options under
the Savings Related Share Option Schemes for an aggregated consideration of €0.7m (2023: €0.6m). Further disclosures relating to
share-based options are set out in note 7.3.
Renewi plc Annual Report and Accounts 2024
219
Strategic report
Governance report
Financial statements
Other information
SECTION 5. Capital structure and financing continued
5.9 Equity continued
Exchange reserve
The exchange reserve comprises all foreign exchange differences arising from the translation of the financial statements of non-Euro
denominated operations since 1 April 2005, the date the Group converted to IFRS, excluding those disposed of, as well as from the
translation of liabilities that hedge the Group’s net investment in foreign operations.
Retained earnings
The Group includes within retained earnings the cumulative balance relating to the effective portion of hedging instruments carried
at fair value in a qualifying cash flow hedge and further details are provided in note 5.5.
The Group also includes the cumulative impact of the Renewi Employee Share Trust within retained earnings. The Trust owns 600,326
£1 shares (0.7%) (2023: 853,223 £1 shares (1.1%)) of the issued share capital of the Company in trust for the benefit of employees of the
Group. The Trust waives its dividend entitlement. During the year 544,967 (2023: 400,597) £1 shares were transferred to individuals
under the LTIP and DAB schemes for proceeds of €0.7m (2023: €0.6m). During the year 292,070 £1 shares (2023: 700,969 £1 shares)
were purchased by the Trust at a cost of €1.7m (2023: €5.3m).
Non-controlling interests
The information below reflects the amounts included in the Group’s Income Statement and Balance Sheet for subsidiaries with
material non-controlling interests.
2024
2023
Maltha Groep
€m
Others
€m
Total
€m
Maltha Groep
€m
Others
€m
Total
€m
Revenue
81.7
44.7
126.4
69.8
45.9
115.7
Profit after tax
8.3
2.0
10.3
9.8
2.3
12.1
Total comprehensive income
8.3
2.3
10.6
9.8
2.3
12.1
Total comprehensive income allocated
to the non-controlling interests
2.8
0.4
3.2
3.3
0.4
3.7
Dividends paid to non-controlling interests
–
0.3
0.3
–
0.6
0.6
Non-current assets
35.5
8.6
44.1
29.3
8.3
37.6
Current assets
27.2
15.2
42.4
22.5
17.2
39.7
Non-current liabilities
(2.9)
(0.7)
(3.6)
(3.2)
(1.1)
(4.3)
Current liabilities
(26.9)
(11.8)
(38.7)
(24.6)
(13.5)
(38.1)
Net assets
32.9
11.3
44.2
24.0
10.9
34.9
Accumulated non-controlling interests
10.9
2.1
13.0
8.0
2.1
10.1
Net (decrease) increase in cash and cash equivalents
(4.0)
–
(4.0)
(2.3)
1.4
(0.9)
5.10 Dividends
Accounting policy
Final dividend distributions to the equity holders are recognised in the period in which they are approved by the shareholders in
general meeting. Interim dividends are recognised when paid.
The Directors have proposed a final dividend of 5 pence per share, being 5.8 cents per share at the year end exchange rate, totalling
€4.7m for the year ended 31 March 2024 (2023: nil).
Notes to the financial statements continued
220 Renewi plc Annual Report and Accounts 2024
SECTION 6. Acquisitions and disposals
This section provides details of acquisitions and disposals.
6.1 Acquisitions
Accounting policy
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of
the subsidiary is the fair value of assets transferred, liabilities incurred or assumed including any equity interests issued by the Group.
Identifiable assets acquired and liabilities and contingent liabilities assumed, meeting the conditions for recognition under IFRS 3, are
recognised at their fair value at the acquisition date. The fair value of businesses acquired may include waste permits, licences and
customer relationships with the value recognised as intangible assets and amortised. The method for calculating the intangible asset
is determined for each acquisition which include the Income approach (multi-period excess earnings method or the with-or-without
method) and the Cost approach. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets
acquired is recorded as goodwill. The Group recognises any non-controlling interest in the acquired entity on an acquisition basis either
at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. The costs of acquisition
are charged to the Income Statement in the year in which they are incurred.
Acquisition of Meeus
In February 2024 Commercial Waste Belgium acquired Aannemingen Jef Meeus BV an entity which processes rockwool for a cash
consideration of €2.1m. The assets acquired were €0.1m plant and equipment, other assets and liabilities of €0.3m (including €0.7m of
cash acquired) with €0.9m allocated to an acquisition related intangible for customer relationships and the balance of €0.7m to goodwill.
In the period from the acquisition to 31 March 2024 the contribution to the Group’s revenue and profit before tax was limited, given the
seasonality of the business, and the entity was merged into the main Commercial Waste Belgium trading entity. If the acquisition had
been completed on the first day of the financial year, the business would have contributed €0.8m to the Group’s revenue and a profit
of €0.2m to the Group’s profit before tax. Acquisition related costs are minimal and have been recognised within administrative costs.
In the prior year, the Netherlands Commercial division acquired 100% of the share capital of GMP Exploitatie B.V. and its subsidiaries
(subsequently renamed Renewi Westpoort Holding B.V.) for cash consideration of €53.5m. The asset identification and fair value
allocation processes were finalised in the same year and resulted in a final fair value of the net identifiable assets acquired of €36.4m
including €27.6m intangible assets, €18.0m property, plant and equipment, €38.4m right-of-use assets, €7.0m bank loan and €30.7m
lease liabilities with resultant goodwill arising on acquisition of €17.1m. In addition, the division completed a business assets acquisition
for cash consideration of €1.6m, the fair value of net assets acquired was €1.3m (including intangible assets of €0.3m and €1.0m of plant
and machinery) resulting in €0.3m of goodwill.
6.2 Disposals
Accounting policy
The results of operations disposed of during the year are included in the consolidated Income Statement up to the date of disposal, unless
they meet the criteria of a discontinued operation.
On 1 September 2023, the Netherlands Commercial division disposed of 100% of the share capital of Buro ontwerp & omgeving B.V. to
GMP Groep B.V. for a cash consideration of €2.3m. The net assets of the entity sold totalled €2.3m including €1.4m of goodwill, €0.7m
cash and €0.1m of lease liabilities resulting in no profit or loss on disposal.
In the prior year, the Mineralz & Water division disposed of net liabilities totalling €3.6m in relation to its North business for a cash
consideration of €0.2m generating a profit on sale of €3.8m which has been recorded as a non-trading and exceptional item in line with the
Group’s policy due to the significant value of the profit. In addition, the Specialities division sold its Maltha Hungary entity. Net liabilities of
€0.8m were sold for a cash consideration net of cash sold of €0.1m which generated a profit on sale of €0.9m. The profit on sale which
included the impact of a recycled cumulative currency translation has been recorded in underlying EBIT.
6.3 Assets classified as held for sale
Accounting policy
Assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Assets are classified
as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the assets are available for sale in their present condition subject only to terms
that are usual and customary for sales of such assets. Following the classification as held for sale, non-current assets are not depreciated.
The Group had €137.7m (2023: €0.6m) of assets classified as held for sale at 31 March 2024, €132.3m (2023: €nil) relates to assets classified
as held for sale within the UK Municipal disposal group (see note 6.4) and €5.4m (2023: €0.6m) relates to land and buildings in the Mineralz
& Water Division which are expected to be sold within the next 12 months.
Renewi plc Annual Report and Accounts 2024
221
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 6. Acquisitions and disposals continued
6.4 Discontinued operations and disposal group
The intended UK Municipal disposal meets the definition of a discontinued operation as stated in IFRS 5 Non-current assets held for
sale and discontinued operations, therefore the net results and the loss on remeasurement to fair value less cost of sale are presented
as discontinued operations in the Income Statement and the prior year Income Statement and Statement of Cash Flows have been
restated. The UK Municipal business was previously reported within the Specialities segment, as disclosed within Section 2.
Income statement in relation to the
discontinued operations:
2024
2023
Underlying
€m
Non-trading &
exceptional
items
€m
Total
€m
Underlying
€m
Non-trading &
exceptional
items
€m
Total
€m
Revenue
179.9
–
179.9
188.4
–
188.4
Cost of sales
(172.1)
3.2
(168.9)
(177.4)
(21.3)
(198.7)
Gross profit (loss)
7.8
3.2
11.0
11.0
(21.3)
(10.3)
Administrative expenses
(6.5)
(1.0)
(7.5)
(9.8)
–
(9.8)
Loss on remeasurement fair value less costs to sell
–
(63.5)
(63.5)
–
–
–
Operating profit (loss)
1.3
(61.3)
(60.0)
1.2
(21.3)
(20.1)
Finance income
9.0
0.2
9.2
8.9
0.9
9.8
Finance charges
(12.4)
–
(12.4)
(11.3)
–
(11.3)
Share of results from associates and joint ventures
0.4
–
0.4
(0.3)
–
(0.3)
Loss before taxation
(1.7)
(61.1)
(62.8)
(1.5)
(20.4)
(21.9)
Taxation
(1.8)
(11.5)
(13.3)
2.7
(0.2)
2.5
(Loss) profit for the year
(3.5)
(72.6)
(76.1)
1.2
(20.6)
(19.4)
Details of the non-trading & exceptional items are set out in note 3.3. The taxation charge of €11.5m includes the de-recognition of a
deferred tax asset of €11.7m previously recognised where the future recoverability of these losses is now considered uncertain.
Finance income line above includes €8.1m (2023: €8.6m) of interest receivable on financial assets relating to PPP contracts (note 4.5).
Other comprehensive income from discontinued operations:
2024
€m
2023
€m
Exchange differences on translation of discontinued operations
(7.8)
10.5
Fair value movement on cash flow hedges of discontinued operations
1.1
12.3
Deferred tax on fair value movement on cash flow hedges of discontinued operations
(0.3)
(1.6)
Share of Other Comprehensive Income of investments of discontinued operations accounted for using the
equity method
0.1
0.3
Total other comprehensive (loss) income from discontinued operations
(6.9)
21.5
Cash flow information in relation to the discontinued operations:
Net cash outflow from operating activities
(11.4)
(10.4)
Net cash inflow from investing activities
16.1
17.0
Net cash outflow from financing activities
(13.4)
(18.4)
Net movement in cash
(8.7)
(11.7)
On 28 September 2023, the Group announced that a comprehensive review of the UK Municipal business, part of the Specialities operating
segment, was being undertaken and it was exploring a range of options to achieve an exit from this segment. Towards the end of March
2024, the Board decided to pursue a conclusion with the preferred party and as a result, on 30 May 2024, the Group has entered into
a binding agreement to sell UK Municipal to Biffa Limited, a leading UK-wide integrated waste management business. A nominal
consideration will be received for the divestment and UK Municipal will be transferred with the appropriate assets and capitalisation
to ensure fulfilment of its contractual obligations. Capitalisation is expected to require a cash injection of approximately £125m
(€146m) into the disposal group on completion. The divestment is expected to complete before 31 December 2024, subject to receipt
of a limited suite of regulatory and other consents. The criteria for asset held for sale have been met after the Board meeting in March
2024 and therefore the UK Municipal assets and liabilities are presented as held for sale.
222 Renewi plc Annual Report and Accounts 2024
SECTION 6. Acquisitions and disposals continued
6.4 Discontinued operations and disposal group continued
Assets classified as held for sale and related liabilities are as follows:
Assets classified as held for sale
Amounts
transferred into
disposal group
€m
Remeasurement
under IFRS 5
€m
Disposal Group at
31 March 2024
€m
Intangible assets (note 4.1)
0.9
(0.9)
–
Property, plant and equipment (note 4.2)
0.1
(0.1)
–
Right-of-use assets (note 4.3)
1.4
(1.4)
–
Investments in joint ventures and associates (note 4.4)
2.8
(2.8)
–
Financial assets relating to PPP contracts (note 4.5)
127.6
(58.3)
69.3
Trade and other receivables
31.6
–
31.6
Inventories
3.0
–
3.0
Cash – core
1.6
–
1.6
Cash – restricted
22.9
–
22.9
Deferred tax assets
0.6
–
0.6
Current tax receivable
1.6
–
1.6
Derivative financial instruments
1.7
–
1.7
Total assets of disposal group held for sale
195.8
(63.5)
132.3
Liabilities directly associated with assets classified as held for sale
External borrowings – Lease liabilities
(6.8)
–
(6.8)
External borrowings – PPP debt
(85.4)
–
(85.4)
Provisions: Onerous contracts & Others
(129.6)
–
(129.6)
Deferred tax liabilities
(1.8)
–
(1.8)
Current tax payable
(0.5)
–
(0.5)
Derivative financial instruments
(1.7)
–
(1.7)
Trade and other payables
(59.2)
–
(59.2)
Total liabilities of disposal group held for sale
(285.0)
–
(285.0)
Net liabilities held for sale/Carrying value
(89.2)
(63.5)
(152.7)
The carrying value of the disposal group has been assessed against the anticipated capitalisation as well as the disposal costs and
this has resulted in a pre-tax loss on remeasurement of the assets held for sale of €63.5m. This remeasurement is first allocated to all in
IFRS 5 scope non-current assets. As outlined in the critical judgements and estimates section of the basis of preparation, a policy has
been adopted where the excess impairment is allocated to the non-current financial assets relating to PPP contracts. The charge has
been recognised in the Income Statement in relation to the discontinued operation as an exceptional administrative expense, leading
to the charge being recognised within the non-trading and exceptional items column in the loss for the year from discontinued
operations line in the Consolidated Income Statement.
The UK Municipal disposal group has recognised cumulative exchange differences on translation through other comprehensive income
totalling a loss of €2.9m and cumulative fair value movements on cash flow hedges of a loss of €0.8m at 31 March 2024, which will be
recognised in the final loss on sale on completion of the transaction.
Financial instruments and related disclosures
The UK Municipal disposal group has assets and liabilities that are measured at fair values, which comprise derivative financial
instrument assets of €1.7m and derivative financial instrument liabilities of €1.7m. These financial instruments were reported as part
of the group in the prior year and have been classified and measured in line with the Group accounting policies, fair value hierarchy
and using the valuation techniques outlined in note 5.6. These derivative financial instruments are recorded within Level 2 and there
has been no change in this designation from the prior year.
Renewi plc Annual Report and Accounts 2024
223
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 6. Acquisitions and disposals continued
6.4 Discontinued operations and disposal group continued
Carrying value of financial assets and liabilities
Financial assets held at amortised cost within the assets classified as held for sale comprise trade and other receivables of €22.0m
(the trade receivables are net of expected credit losses transferred of €15.2m) and cash and cash equivalents of €24.5m. Financial
assets relating to PPP contracts of €69.3m being its carrying value of €127.6m less the IFRS 5 remeasurement allocation of €58.3m.
Derivatives used for hedging comprise interest rate swaps relating to PPP contracts of €1.7m.
There were no financial assets at fair value through profit or loss or financial assets at fair value through other comprehensive income
within the disposal group. The group considers that the fair value of financial assets is not materially different to their carrying value.
Financial liabilities held at amortised cost within the liabilities directly associated with assets classified as held for sale comprise lease
liabilities of €6.8m, trade and other payables of €39.9m and PPP non-recourse debt of €85.4m. Derivatives used for hedging comprise
interest rate swaps relating to PPP contracts of €1.7m.
The Group considers that the fair value of its PPP non-recourse debt, trade and other payables and lease liabilities are not materially
different to their carrying value.
Disclosures relating to credit risk, interest rate risk, liquidity risk and foreign exchange risk are aligned with those outlined in note 5.7
for the continuing operations.
Key judgements – relating to discontinued operations
Service concession arrangements – The Group’s UK PPP arrangements relate to the construction and operation of waste
management facilities for local authorities and at the end of the concession arrangement the facility will be handed over to
the local authority, this was considered an area of judgement in the prior year. The building of the facilities was governed by
the engineer, procure and construct contract entered into by the Group at that time. The construction work was undertaken by
third-party contractors with drawdowns of financing from the UK PPP funders used to pay the subcontractor for the construction
works. The Group considered all relevant factors including the expectation by the relevant local authority who was the primary obligor,
the ability of the Group to set the selling price, who performed the service, who assumed the credit risk and who had discretion in
selecting suppliers to determine whether the Group acted as agent or principal during the construction phase. On the basis that the
construction contractor was known to the local authority at the date of financial close and in view of the negligible credit risk taken
by the Group, on balance, despite some overall risk residing with the Group for delivery of services, the Group acted as agent versus
principal in the provision of construction services.
Consequently the consideration from local authorities for the operations of waste management service concessions is treated
as financial assets relating to PPP contracts in accordance with IFRIC 12. Management determined that the cash flows relating to
the outflows in respect of PPP arrangements under the financial asset model net of capital received are investing activities in the
statement of cash flows and not operating cash flows. At the balance sheet date, the Group has financial assets relating to PPP
contracts of €127.6m (2023: €131.0m). Consideration relating to financial assets is split between a service element as revenue
and a repayment element, split between capital and interest receivable that is deducted from the financial asset.
Under IFRIC 12, the operator’s rights over infrastructure operated under concession arrangements should be accounted for based
on having considered the extent to which the grantor (the local authority) controls the assets, over what services the operator must
provide with the infrastructure, to whom it must provide them and at what price. Having considered these factors, the Group applies
the ‘financial asset’ model to account for the infrastructure as it has an unconditional right to receive cash. The Group splits the local
authority payment between a service element as inbound revenue and a repayment element that is deducted from the financial asset.
The financial asset repayment element of the local authority payment is calculated based on the effective interest rate on the financial
asset at the outset of each contract, such that the value unwinds to nil over the lifetime of that contract. The part of the service element
which covers the obligation to undertake major refurbishments and renewals to maintain the infrastructure, such that it is handed over
to the local authority in good working order, is known as life cycle and is deferred and only recognised as revenue when the service
is provided.
224 Renewi plc Annual Report and Accounts 2024
SECTION 6. Acquisitions and disposals continued
6.4 Discontinued operations and disposal group continued
Investment in joint venture -The Group has recognised an investment value of €nil in relation to the UK Municipal Wakefield Waste
Holdings Limited joint venture as there are insufficient future cash flows to support a carrying value. The Group’s share of profits in the
year was a loss of €0.4m (2023: €3.5m profit) which resulted in a cumulative profit of €4.3m (2023: €4.6m).
Sensitivities – Onerous contract provisions in UK Municipal
A 0.5% change in the nominal discount rates would result in a €4m (2023: €4m) change in the provision.
The onerous contract provisions are mostly linked to RPI and RPIx therefore an increase in costs should be matched by an increase in
revenue, although the timing of the increases varies by contract. The inflation rates used in the models from 1 April 2024 is 12.5% and
13.49% RPIx based on actual rates at dates determined by the respective contracts and 9.8% CPI based on external inflation forecasts,
from 1 April 2024 3.8% and 4.79% RPIx and 3.8% CPI based on external inflation forecasts and for later years 2.9% and 2.9% RPIx and 2%
CPI in line with UK Government target inflation. We have considered the impact of a further 1% change to inflation from 1 April 2024 and
this would lead to an increase in provisions of €7m.
The provisions are sensitive to the impact of future recyclate prices. We have based our assumptions for recyclate prices on our best
estimate of future prices after taking into account observed prices over recent months and average prices over five years. Recyclate prices
have reached record highs in the last year before normalising at levels close to the five-year averages. Prices are assumed to remain close
to these normalised levels but future volatility is possible. The impact of a 20% change in paper prices and a 10% change in metal and
plastics prices would lead to an increase or reduction in the onerous contract provisions of around €2m (2023: €4m).
On 6 March 2024, the UK government announced it will legislate in a future finance bill to increase the standard and lower rates of Landfill
Tax. The impact of such legislation (if enacted as announced) is expected to have a significant positive impact on certain of the onerous
contract provisions. As the tax changes have not been enacted into law at the year-end date, in accordance with IAS12, no benefit has
been recognised in the onerous contract provisions.
PPP non-recourse debt
As at 31 March 2024, the PPP non-recourse debt is held in two PPP companies: Cumbria and Barnsley, Doncaster & Rotherham with
maturities of 30 September 2032 and 30 June 2037 respectively. In addition, for the year ended 31 March 2023, there was also PPP
non-recourse debt held by Argyll & Bute, which had a maturity of 15 July 2023. Each UK Municipal PPP company has non-recourse loan
facilities which are secured by a legal mortgage over any land and a fixed and floating charge over the assets of the PPP company and
the carrying amount of financial assets pledged excluding cash was €124.1m (2023: €128.8m).
In the majority of cases subsidiaries holding non-recourse PPP debt and financial assets are restricted in their ability to transfer funds to
the parent in the form of cash dividends or to repay loans and advances. This is due to the terms of the financing facility agreements and
lender approval is required to make such transfers.
Interest rate swaps relating to PPP contracts
The notional principal amount of the outstanding interest rate swap contracts at 31 March 2024 was €89.0m (2023: €91.6m). Under
these contracts the interest rates on PPP non-recourse borrowings for Cumbria and Barnsley, Doncaster & Rotherham projects are fixed
at rates of 4.8% and 3.4% respectively from inception to expiry on 30 September 2032 and 30 June 2037 respectively. The gains and losses
recognised in the Statement of Comprehensive Income for cash flow hedges will be released to the Income Statement within finance costs
until the repayment of the non-recourse borrowings. A revised repayment programme for the Cumbria PPP project borrowing has led to
ineffectiveness of a credit of €0.2m (2023: €0.9m) being recognised for the related interest rate swap which has been taken to the Income
Statement as a non-trading and exceptional finance credit.
During the year ended 31 March 2024 the liability of the interest rate swaps relating to PPP contracts reduced by €1.1m (2023: €13.4m),
included in this movement was an interest charge of €1.0m (2023: €1.7m) which was wholly paid in cash during the year (presented in
discontinued operations within the Income Statement and within the Statement of Cash Flows within finance charges), a fair value
gain of €1.3m (2023: €13.2m) of which €1.1m (2023: €12.3m) gain was taken to Other Comprehensive Income with the remainder to
discontinued operations within the Income Statement and the impact of foreign exchange was €0.2m loss (2023: €0.2m gain).
Interest rate sensitivity for PPP non-recourse borrowings
The PPP non-recourse borrowings are fully hedged with interest rate swaps. The fair values of interest rate swaps used for hedging
of PPP non-recourse borrowings are determined with reference to floating market interest rates. A 1% increase in interest rates would
have reduced the fair value of the interest rate swap liabilities and increased the interest rate swap assets and resulted in a pre-tax gain
in Other Comprehensive Income of €3.5m (2023: €4.3m) and a pre-tax gain in the Income Statement of €1.0m (2023: €0.9m). A 1% decrease
in interest rates would have increased the fair value of the interest rate swap liabilities and reduced the interest rate swap assets and led
to a pre-tax loss in Other Comprehensive Income of €3.8m (2023: €4.7m) and a pre-tax loss in the Income Statement of €1.1m (2023: €1.0m).
Renewi plc Annual Report and Accounts 2024
225
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 7. Employee benefits
7.1 Employee costs and employee numbers
This note shows the staff costs and the average monthly number of employees analysed by reportable segment.
Note
2024
€m
Restated*
2023
€m
Wages and salaries
332.9
310.8
Social security costs
67.4
59.6
Share-based benefits
7.3
1.2
2.7
Other pension costs
7.2
33.1
30.4
Total staff costs (continuing operations)
434.6
403.5
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
2024
Restated*
2023
The average number of employees by reportable segment during the year was:
Commercial Waste
4,623
4,621
Mineralz & Water
308
323
Specialities
361
337
Group central services
423
414
Total average number of employees (continuing operations)
5,715
5,695
Discontinued operations
550
540
Total average number of employees
6,265
6,235
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
7.2 Retirement benefit schemes
The Group operates defined benefit and defined contribution schemes in the UK and overseas.
Accounting policy
The Group accounts for pensions and similar benefits under IAS 19 (revised) Employee Benefits.
The pension cost for the defined benefit schemes is assessed in accordance with management’s best estimates using the advice of independent
qualified actuaries and assumptions in the latest actuarial valuation where applicable. For defined benefit plans, obligations are measured
at discounted present value. Plan assets in the UK scheme are recorded at fair value and in the overseas schemes the plan assets are calculated
as the cash value of all future insured benefit payments using an appropriate discount rate. The operating and financing costs of the plans
are recognised separately in the Income Statement. Interest is calculated by applying the discount rate to the net defined pension liability.
Actuarial gains and losses are recognised in full through the Statement of Comprehensive Income and surpluses are recognised only to
the extent that they are recoverable. Movements in irrecoverable surpluses are recognised immediately in the Statement of
Comprehensive Income.
Payments to defined contribution schemes are charged to the Income Statement as they become due. The Group participates in
several multi-employer schemes in the Netherlands which are accounted for as defined contribution plans as it is not possible to split
the assets and liabilities of the schemes between participating companies. The Group has been informed by the schemes that it has
no obligation to make additional contributions in the event that the schemes have an overall deficit.
Retirement benefit schemes costs
2024
€m
Restated*
2023
€m
UK defined contribution scheme
0.1
0.1
Overseas defined benefit schemes
1.6
1.4
Overseas defined contribution schemes
31.4
28.9
33.1
30.4
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
226 Renewi plc Annual Report and Accounts 2024
SECTION 7. Employee benefits continued
7.2 Retirement benefit schemes continued
UK defined benefit scheme
The UK defined benefit pension scheme (called the Shanks Group Pension Scheme) provides pension benefits for pensioners, deferred
members and eligible UK employees and is closed to new entrants and closed to future benefit accrual. The defined benefit scheme
provides benefits to members in the form of a guaranteed level of pension payable for life and the level of benefits provided depends
on the members’ length of service and final salary. Plan assets are managed by Aon Investments Ltd on behalf of the Trustees. There are
three trustees currently, one appointed by the Company and two nominated by members, who are responsible for ensuring the scheme
is run in accordance with the members’ best interests and the pension laws of the UK which are overseen by The Pensions Regulator.
The triennial actuarial valuation of the Scheme as at 5 April 2024 is under way. The Group’s funding plan has been maintained at the
current level of €3.5m per annum until December 2024.
The significant actuarial assumptions adopted at the balance sheet date were as follows:
2024
% p.a.
2023
% p.a.
Discount rate
4.8
4.9
Rate of price inflation
3.2
3.3
Consumer price inflation
2.7
2.7
The discount rate assumption is derived from the single agency curve based on high quality AA rated bonds. The mortality assumptions
are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member currently
aged 65 will live on average for a further 22 years (2023: 23 years) if they are male and for a further 24 years (2023: 25 years) if they are
female. For a member aged 40 who retires at age 65 the assumptions are that they will live on average after retirement for around a further
24 years (2023: 24 years) if they are male or for a further 26 years (2023: 27 years) if female. The weighted average duration of the defined
benefit obligation is approximately 13 years.
Overseas defined benefit schemes
The overseas defined benefit obligation relates to funded plans, mainly insurance contracts managed by insurers, in both the Netherlands
and Belgium. There are various schemes which are based on average salaries and in some cases on final salaries. The assets consist of
qualifying insurance policies which match the vested benefits. The build-up of rights for inactive members are indexed on the basis of
additional interest and the rights of active employees are being indexed unconditionally with the price-inflation figure. There are no
unfunded plans. The plans are subject to laws for pension insurance companies offering pension arrangements and are overseen by
Autoriteit Financiele Markten in the Netherlands and Autoriteit voor Financiele Diensten en Markten in Belgium. The Group has no
responsibilities for governance of the plans other than correct calculation and timely payment of the contributions. The total
estimated contributions expected to be paid to the schemes in the year ending 31 March 2025 are €2.2m.
The significant actuarial assumptions adopted at the balance sheet date were as follows:
2024
% p.a.
2023
% p.a.
Discount rate
2.8 to 3.55
2.4 to 3.9
Rate of price inflation
2.0
2.0
Rate of salary inflation
2.5 to 4.0
2.5 to 4.0
The discount rate assumption is based on interest rates applying to high quality corporate bonds with a term approximately equal to the
term of the related pension liability. The mortality assumptions are based on standard mortality tables which allow for future mortality
improvements. The assumptions are that a member currently aged 65 will live on average for a further 22 years (2023: 22 years) if they are
male and for a further 24 years (2023: 24 years) if they are female. For a member aged 40 who retires at age 65, the assumptions are that
they will live on average after retirement for around a further 23 years (2023: 23 years) if they are male or for a further 25 years (2023: 25 years)
if female. The maturity of the schemes ranges from 18 to 22 years.
Renewi plc Annual Report and Accounts 2024
227
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 7. Employee benefits continued
7.2 Retirement benefit schemes continued
The amounts recognised in the financial statements for all defined benefit schemes are as follows:
Income Statement
2024
2023
UK
€m
Overseas
€m
Total
€m
UK
€m
Overseas
€m
Total
€m
Current service cost
–
1.6
1.6
–
1.7
1.7
Curtailment
–
–
–
–
(0.3)
(0.3)
Interest expense (credit) on scheme net liabilities
0.1
0.2
0.3
(0.2)
–
(0.2)
Net defined benefit pension schemes charge
(credit) before tax
0.1
1.8
1.9
(0.2)
1.4
1.2
Statement of Comprehensive Income
2024
2023
UK
€m
Overseas
€m
Total
€m
UK
€m
Overseas
€m
Total
€m
Actuarial gain (loss) on scheme liabilities
1.3
(5.4)
(4.1)
46.5
18.5
65.0
Actuarial (loss) gain on scheme assets
(7.9)
5.3
(2.6)
(62.9)
(17.6)
(80.5)
Actuarial (loss) gain on defined benefit
pension schemes
(6.6)
(0.1)
(6.7)
(16.4)
0.9
(15.5)
Cumulative actuarial gains and losses recognised in the Statement of Comprehensive Income since 1 April 2004 are losses of €52.6m
(2023: €45.9m).
Balance Sheet
2024
2023
UK
€m
Overseas
€m
Total
€m
UK
€m
Overseas
€m
Total
€m
Present value of deferred benefit obligations
(146.9)
(64.5)
(211.4)
(144.5)
(56.6)
(201.1)
Fair value of plan assets
139.3
59.2
198.5
140.2
51.6
191.8
Defined benefit pension schemes net deficit
(7.6)
(5.3)
(12.9)
(4.3)
(5.0)
(9.3)
Related deferred tax asset (note 3.4)
1.9
1.3
3.2
1.1
1.3
2.4
Net defined pension schemes liability
(5.7)
(4.0)
(9.7)
(3.2)
(3.7)
(6.9)
Classified as:
Defined benefit pension schemes deficits –
included in non-current liabilities
(7.6)
(5.3)
(12.9)
(4.3)
(5.0)
(9.3)
The UK scheme’s assets of €139.3m (2023: €140.2m) are invested via Aon’s Delegated Consulting Service which is a fiduciary investment
management platform managed by Aon Investments Limited. A breakdown of the underlying investment classes is given below:
2024
€m
2023
€m
Equities
50.5
44.8
Liquid alternatives
11.6
19.3
Fixed income
17.3
17.6
Liability driven investment
50.3
51.3
Cash and others
9.6
7.2
139.3
140.2
The overseas schemes assets of €59.2m (2023: €51.6m) are insurance contracts managed by insurers in the Netherlands and Belgium.
228 Renewi plc Annual Report and Accounts 2024
SECTION 7. Employee benefits continued
7.2 Retirement benefit schemes continued
The movement in the defined benefit pension schemes deficit
UK
€m
Overseas
€m
Total
€m
At 1 April 2022
8.6
(6.3)
2.3
Current service cost
–
(1.7)
(1.7)
Curtailment
–
0.3
0.3
Interest income
0.2
–
0.2
Net actuarial (loss) gain recognised in the year
(16.4)
0.9
(15.5)
Contributions from employer
3.5
1.8
5.3
Exchange rate changes
(0.2)
–
(0.2)
At 31 March 2023
(4.3)
(5.0)
(9.3)
Current service cost
–
(1.6)
(1.6)
Interest expense
(0.1)
(0.2)
(0.3)
Net actuarial loss recognised in the year
(6.6)
(0.1)
(6.7)
Contributions from employer
3.6
1.6
5.2
Exchange rate changes
(0.2)
–
(0.2)
At 31 March 2024
(7.6)
(5.3)
(12.9)
Reconciliation of the defined benefit obligation
UK
€m
Overseas
€m
Total
€m
At 1 April 2022
(201.2)
(74.5)
(275.7)
Current service cost
–
(1.3)
(1.3)
Curtailment
–
1.3
1.3
Interest expense
(5.3)
(1.2)
(6.5)
Remeasurements:
Actuarial gain on scheme liabilities arising from changes in financial assumptions
54.1
19.4
73.5
Actuarial loss on scheme liabilities arising from changes in experience
(7.6)
(0.9)
(8.5)
Contributions from plan participants
–
(0.6)
(0.6)
Benefit payments
7.8
1.2
9.0
Exchange rate changes
7.7
–
7.7
At 31 March 2023
(144.5)
(56.6)
(201.1)
Current service cost
–
(1.1)
(1.1)
Interest expense
(6.9)
(2.0)
(8.9)
Remeasurements:
Actuarial gain (loss) on scheme liabilities arising from changes in financial assumptions
2.0
(6.0)
(4.0)
Actuarial gain on scheme liabilities arising from changes in demographic assumptions
2.4
–
2.4
Actuarial (loss) gain on scheme liabilities arising from changes in experience
(3.1)
0.6
(2.5)
Contributions from plan participants
–
(0.6)
(0.6)
Benefit payments
7.2
1.2
8.4
Exchange rate changes
(4.1)
–
(4.1)
At 31 March 2024
(147.0)
(64.5)
(211.5)
Renewi plc Annual Report and Accounts 2024
229
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 7. Employee benefits continued
7.2 Retirement benefit schemes continued
Reconciliation of plan assets
UK
€m
Overseas
€m
Total
€m
At 1 April 2022
209.8
68.2
278.0
Current service cost
–
(0.4)
(0.4)
Curtailment
–
(1.0)
(1.0)
Interest income
5.5
1.2
6.7
Remeasurements: Return on plan assets excluding interest expense
(62.9)
(17.6)
(80.5)
Contributions from employer
3.5
1.8
5.3
Contributions from plan participants
–
0.6
0.6
Benefit payments
(7.8)
(1.2)
(9.0)
Exchange rate changes
(7.9)
–
(7.9)
At 31 March 2023
140.2
51.6
191.8
Current service cost
–
(0.5)
(0.5)
Interest income
6.7
1.9
8.6
Remeasurements: Return on plan assets excluding interest expense
(7.9)
5.3
(2.6)
Contributions from employer
3.6
1.6
5.2
Contributions from plan participants
–
0.6
0.6
Benefit payments
(7.2)
(1.2)
(8.4)
Exchange rate changes
3.9
–
3.9
At 31 March 2024
139.3
59.3
198.6
Significant defined benefit pension scheme risks
Through its defined benefit pension schemes the Group is exposed to a number of risks, the most significant of which are set out below.
Asset volatility – The UK scheme liabilities are calculated using a discount rate set with reference to corporate bond yields and if
plan assets underperform this yield, this will result in a shortfall. The UK pension scheme’s assets are held in a portfolio of pooled funds
which are single priced at the net asset value. The investment objective of the portfolio is to achieve long-term total returns in excess of
a nominal portfolio of long-dated Sterling bonds through a diversified portfolio of collective investment schemes, which may include
derivatives. Investments are well diversified, such that the failure of any single investment would not have a material impact on the
overall level of assets. The Trustees have agreed an underlying strategy with the Group so that any ongoing improvements in the
scheme’s funding position would trigger movements from growth assets to non-growth assets, in order to protect and consolidate
such improvements. The plan assets in the overseas pension schemes are calculated as the cash value of all future insured benefit
payments using an appropriate discount rate.
Inflation risk – The majority of benefit obligations are linked to inflation and higher inflation will lead to higher liabilities.
Life expectancy – The majority of the obligations are to provide benefits for the life of the member, so increases in the life of the
member will result in an increase in the liabilities.
Changes in bond yields – A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset
by an increase in the value of the investments.
230 Renewi plc Annual Report and Accounts 2024
SECTION 7. Employee benefits continued
7.2 Retirement benefit schemes continued
Sensitivities for defined pension benefit schemes
The sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, as changes in assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method
at the end of the reporting period) has been applied as when calculating the pension liability recognised within the Balance Sheet.
Impact on defined benefit obligation
UK
Overseas
Change in
assumption
%
Increase in
assumption
€m
Decrease in
assumption
€m
Change in
assumption
%
Increase in
assumption
€m
Decrease in
assumption
€m
Discount rate
0.25
4.7
(4.9)
0.25
2.7
(2.6)
Rate of price inflation
0.25
(2.8)
2.7
0.25
(0.1)
(0.1)
Consumer price inflation
0.25
(2.8)
2.7
–
–
–
UK
Overseas
Increase
by 1 year in
assumption
€m
Decrease
by 1 year in
assumption
€m
Increase
by 1 year in
assumption
€m
Decrease
by 1 year in
assumption
€m
Life expectancy
(6.0)
5.9
(1.6)
1.7
Other overseas schemes
The total cost in the year for other overseas pensions was €31.4m (2023: €28.9m). In the Netherlands in particular, most employees are
members of either a multi-employer pension scheme or other similar externally funded schemes, including Government funded schemes.
Renewi plc Annual Report and Accounts 2024
231
Strategic report
Governance report
Financial statements
Other information
Notes to the financial statements continued
SECTION 7. Employee benefits continued
7.3 Share-based payments
As described in the Directors’ Remuneration Report, the Group issues equity-settled share-based payments under a Savings
Related Share Option Scheme (SRSOS), a Long-Term Incentive Plan (LTIP) and a Deferred Annual Bonus (DAB) arrangement.
Further details and performance metrics of both LTIPs and DABs can be found in the Directors’ Remuneration Report on
pages 128 to 147.
Accounting policy
The Group issues equity-settled share-based awards to certain employees. The fair value of share-based awards is determined at
the date of grant and expensed on a straight-line basis over the vesting period with a corresponding increase in equity based on the
Group’s estimate of the shares that will eventually vest. At each balance sheet date the Group revises its estimates of the number of
awards that are expected to vest based on service and non-market performance conditions. The amount expensed is adjusted over
the vesting period for changes in the estimate of the number of shares that will eventually vest, except for changes resulting from any
market-related performance conditions.
Outstanding awards and options
SRSOS
LTIP
DAB
Number of
options
Weighted
Average
exercise
price
Number of
awards
Number of
awards
Outstanding at 1 April 2022
671,475
245p
1,422,973
166,617
Granted
66,885
608p
365,367
45,596
Forfeited
(110,587)
292p
(164,024)
(42,299)
Exercised/vested
(190,358)
249p
(359,624)
(29,432)
Outstanding at 31 March 2023
437,415
288p
1,264,692
140,482
Granted
240,650
378p
552,959
85,087
Forfeited
(76,250)
467p
(139,997)
–
Exercised/vested
(301,075)
200p
(449,621)
(94,993)
Outstanding at 31 March 2024
300,740
402p
1,228,033
130,576
Exercisable at 31 March 2024
15,480
200p
Exercisable at 31 March 2023
1,728
250p
At 31 March 2024
Range of price per share at exercise
200p to 608p
Weighted average remaining contractual life
2 years
232 Renewi plc Annual Report and Accounts 2024
SECTION 7. Employee benefits continued
7.3 Share-based payments continued
Fair value of awards and options granted during the year
SRSOS
LTIP
Valuation model
2024
Binomial
2023
Binomial
2024
Share price
and Finnerty
2023
Share price
and Finnerty
2024
Monte Carlo
and Finnerty
2023
Monte Carlo
and Finnerty
Weighted average fair value
200p
200p
481p
655p
222p
485p
Weighted average share price
508p
580p
499p
681p
499p
681p
Weighted average exercise price
378p
608p
–
–
–
–
Expected volatility
41%
49%
–
–
39%
52%
Expected life
3 years
3 years
3 years
3 years
3 years
3 years
Risk-free interest rate
4.45%
4.44%
–
–
5.0%
2.2%
Dividend yield
2.3%
1.6%
–
–
–
–
LTIP awards
LTIP awards are issued to the senior leadership of the Group at the discretion of the Remuneration Committee. Vesting of the awards is
subject to continued employment, together with a market condition (relative TSR) and non-market conditions (EPS, ROCE and the
recycling rate or other sustainability metric as may be appropriate) as further explained in the Directors’ Remuneration report. The awards
granted vest after three years, four years and five years. There is no service condition after three years on any of the awards granted, just a
holding period of between one and two years. The fair value of the element subject to non-market conditions has been calculated based
on the share price at the award date and the expense recognised is based on expectations of these conditions being met which are
reassessed at each balance sheet date. The Monte Carlo valuation model is used to determine the weighted average fair value of the
market conditions element of awards granted. Using a Finnerty model, post-vesting restrictions are included in the fair value measurement
at the date of grant to the extent that the restrictions affect the price that a knowledgeable, willing market participant would pay for the
shares. Expected volatility has been calculated using average volatility historical data over a three-year period from the grant date. The
risk-free interest rate is based on the implied yield of zero-coupon UK government bonds with a remaining term equal to the expected life.
The expected life used in the models equals the vesting period.
SRSOS options
UK employees are invited to join the Sharesave plan when an offer is made each year. These plans are for three years and subject to
continued employment. All offers to date were issued at a 20% discount to market price at the time. There are no performance criteria
for this plan.
DAB awards
On award the annual bonus of the executive directors is split 50% payable in cash and 50% payable in Renewi plc shares resulting in
a deferred annual bonus. The conditions are explained in full within the Directors’ Remuneration report.
Charge for the year
The Group recognised a total charge of €1.2m (2023: €2.7m) relating to equity-settled share-based payments. The DAB awards for the year
ended 31 March 2024 have not yet been granted and therefore the charge is based on an estimate.
Renewi plc Annual Report and Accounts 2024
233
Strategic report
Governance report
Financial statements
Other information
SECTION 8. Other notes
8.1 Subsidiary undertakings and investments at 31 March 2024
The structure of the Group includes a number of different operating and holding companies that contribute to the
consolidated financial performance and position.
Subsidiary undertakings
In accordance with section 409 of the Companies Act, a full list of subsidiaries at 31 March 2024 is disclosed below by country of
incorporation which is the principal country of business. All are wholly owned by the Group and have a 31 March year end, unless
otherwise stated, and all operate in the waste management sector and have been consolidated in the Group’s financial statements.
Those subsidiaries owned directly by Renewi plc, the parent company, are indicated with an asterisk.
Subsidiary
Address of the registered office
Incorporated in the Netherlands
ATM B.V.
Vlasweg 12, 4782 PW Moerdijk, Netherlands
B.V. Twente Milieu Bedrijven
Flight Forum 240, 5657 DH Eindhoven, Netherlands
CFS B.V.
Wetering 14, 6002 SM Weert, Netherlands
Cirqu B.V.
Flight Forum 240, 5657 DH Eindhoven, Netherlands
Coolrec B.V.
Van Hilststraat 7, 5145 RK Waalwijk, Netherlands
Coolrec Nederland B.V.
Grevelingenweg 3, 3313 LB Dordrecht, Netherlands
Coolrec Plastics B.V.
Van Hilststraat 7, 5145 RK Waalwijk, Netherlands
EcoSmart Nederland B.V.
Spaarpot 6, 5667 KX Geldrop, Netherlands
Glasrecycling Noord-Oost Nederland B.V. (67%)
Columbusstraat 20, 7825 VR Emmen, Netherlands
Maltha Glasrecycling Nederland B.V. (67%)
Glasweg 7, 4794 TB Heijningen, Netherlands
Maltha Glassrecycling International B.V. (67%)
Glasweg 7, 4794 TB Heijningen, Netherlands
Maltha Groep B.V. (67%)
Glasweg 7, 4794 TB Heijningen, Netherlands
Mineralz B.V.
Van Hilststraat 7, 5145 RK Waalwijk Netherlands
Mineralz Maasvlakte B.V.
Loswalweg 50, 3199 LG Maasvlakte Rotterdam, Netherlands
Orgaworld International B.V.
Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Orgaworld Nederland B.V.
Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Orgaworld WKK 1 B.V.
Hornweg 67 1044 AN Amsterdam, Netherlands
Orgaworld WKK II B.V.
Hornweg 69, 1044 AN Amsterdam, Netherlands
Orgaworld WKK III B.V.
Hornweg 71, 1044 AN Amsterdam, Netherlands
Renewi Commercial B.V.
Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Renewi Europe B.V.
Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Renewi Hazardous Waste B.V.
Vlasweg 12, 4782 PW Moerdijk, Netherlands
Renewi Icopower B.V.
Kajuitweg 1, 1041 AP Amsterdam, Netherlands
Renewi Monostreams B.V.
Flight Forum 240, 5657 DH Eindhoven, Netherlands
Renewi Nederland B.V.
Flight Forum 240, 5657 DH Eindhoven, Netherlands
Renewi Netherlands Holdings B.V.
Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Renewi Overheidsdiensten B.V.
Rijksweg-Zuid 91, 4715 TA Rucphen, Netherlands
Renewi Smink B.V.
Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Renewi Support B.V.
Flight Forum 240, 5657 DH Eindhoven, Netherlands
Renewi Westpoort B.V.
Siciliëweg 38, 1045 AS Amsterdam, Netherlands
Renewi Westpoort Holding B.V.
Siciliëweg 38, 1045 AS Amsterdam, Netherlands
Renewi Westpoort Transport B.V.
Siciliëweg 38, 1045 AS Amsterdam, Netherlands
Robesta Vastgoed Acht B.V.
Flight Forum 240, 5657 DH Eindhoven, Netherlands
Robesta Vastgoed B.V.
Flight Forum 240, 5657 DH Eindhoven, Netherlands
Semler B.V.
Ockhuizenweg 3-A, 5691 PJ Son, Netherlands
Verwerking Bedrijfsafvalstoffen Maasvlakte (V.B.M.) C.V.
Loswalweg 50, 3199 LG Maasvlakte Rotterdam, Netherlands
Notes to the financial statements continued
234 Renewi plc Annual Report and Accounts 2024
SECTION 8. Other notes continued
8.1 Subsidiary undertakings and investments at 31 March 2024 continued
Subsidiary
Address of the registered office
Incorporated in Belgium
EcoSmart NV
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Maltha Glasrecyclage Belgie NV (67%)
Fabrieksstraat 114, 3920, Lommel, Belgium
Mineralz ES Treatment NV
Gerard Mercatorstraat 8, Lommel, Belgium
Ocean Combustion Services NV
Baeckelmansstraat 125, 2830 Tisselt, Belgium
Recydel SA (80%)
Rue Wérihet 72, 4020 Liège, Belgium
Renewi Belgium NV
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Renewi Chemical Services NV
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Renewi Logistics NV
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Renewi NV
Berkebossenlaan 7, 2400 Mol, Belgium
Renewi Shared services Center SA
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Renewi Tisselt NV
Baeckelmansstraat 125, 2830 Tisselt, Belgium
Renewi Valorisation & Quarry NV
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Renewi Wood Products NV
Gerard Mercatorstraat 8, 3920, Lommel, Belgium
Renewi+ NV
Gerard Mercatorstraat 8, Lommel, Belgium
Incorporated in Germany
ATM Entsorgung Deutschland GmbH (Year end 31 December)
Kaldenkirchener Strasse 25, 41063, Mönchengladbach, Germany
Incorporated in France
Coolrec France SAS (90%)
Rue d’Iéna Parcelle 36, 59810 Lesquin, France
Maltha Glass Recycling France SAS (67%)
Zone Industrielle, 87 route d’anglumeau 33450 Izon, France
Incorporated in Portugal
Maltha Glass Recycling Portugal Lda (67%)
Parque Industrial da Gala, Lotes 26 e 27, 3081-801 Figueira da Foz,
Portugal
Incorporated in the UK
Maltha UK Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX,United Kingdom
Renewi European Holdings Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX,United Kingdom
Renewi Holdings Limited*
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX,United Kingdom
Renewi PFI Investments Limited*
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Renewi SRF Trading Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Renewi UK Services Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Safewaste Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Subsidiary undertakings holding UK PPP contracts
Renewi Argyll & Bute Limited
16 Charlotte Square, Edinburgh, EH2 4DF, United Kingdom
Renewi Argyll & Bute Holdings Limited*
16 Charlotte Square, Edinburgh, EH2 4DF, United Kingdom
Renewi Cumbria Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Renewi Cumbria Holdings Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Renewi BDR Holdings Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Renewi BDR Limited
Enigma, Wavendon Business Park, Wavendon, Milton Keynes,
Buckinghamshire, MK17 8LX, United Kingdom
Renewi plc Annual Report and Accounts 2024
235
Strategic report
Governance report
Financial statements
Other information
SECTION 8. Other notes continued
8.1 Subsidiary undertakings and investments at 31 March 2024 continued
Joint ventures, associates and joint operations
At 31 March 2024, the Group through wholly owned subsidiaries had the following interests in joint venture companies, joint operations
and associates, all of which operate in the waste management sector.
Joint ventures
Group Holding %
Most recent year end
Address of the registered office
Incorporated in the Netherlands
Green Collective B.V.
50%
31 December 2023 Mr E.N. van Kleffensstraat 10, 6842 CV, Arnhem, Netherlands
PQA B.V.
50%
31 December 2023 Bennebroekerdijk 244, 2142 LE, Cruquius, Netherlands
Sqape B.V.
50%
31 December 2023 Bennebroekerdijk 244, 2142 LE, Cruquius, Netherlands
Incorporated in Belgium
Marpos NV
45%
31 December 2023 L. Coiseaukaai 43, 8380 Dudzele, Belgium
Revalim NV
50%
31 December 2023 Kringloopstraat 1, 3630 Maasmechelen, Belgium
Silvamo NV
50%
31 March 2024
Regenbeekstraat 7C, 8800 Roeselare, Belgium
Incorporated in the UK
Caird Evered Holdings Limited
50%
31 December 2023 Bardon Hall, Copt Oak Road, Markfield, Leicestershire,
LE67 9PJ, United Kingdom
Caird Evered Limited
50%
31 December 2023 Bardon Hall, Copt Oak Road, Markfield, Leicestershire,
LE67 9PJ, United Kingdom
Wakefield Waste Holdings Limited
50.001%
31 March 2024
Enigma, Wavendon Business Park, Wavendon, Milton
Keynes, Buckinghamshire, MK17 8LX, United Kingdom
Wakefield Waste PFI Holdings Limited
50.001%
31 March 2024
Enigma, Wavendon Business Park, Wavendon, Milton
Keynes, Buckinghamshire, MK17 8LX, United Kingdom
Wakefield Waste PFI Limited
50.001%
31 March 2024
Enigma, Wavendon Business Park, Wavendon, Milton
Keynes, Buckinghamshire, MK17 8LX, United Kingdom
Associates
Group Holding %
Most recent year end
Address of the registered office
Incorporated in the Netherlands
AMP B.V.
33%
31 December 2023 Victoriberg 18, 2211 DH Noordwijkerhout, Netherlands
Greencycl B.V.
40%
31 December 2023 Rijnzathe 2, 3454 PV De Meern, Netherlands
RetourMatras Holding B.V.
32.33%
31 December 2023 Goudseweg 181 Unit E, 2411HK, Bodegraven, Netherlands
Tankterminal Sluiskil B.V.
40%
31 December 2023 Oostkade 7, 4541 HH Sluiskil, Netherlands
Zavin B.V.
33%
31 December 2023 Baanhoekweg 42, 3313 LA Dordrecht, Netherlands
Zavin C.V.
33%
31 December 2023 Baanhoekweg 46, 3313 LA Dordrecht, Netherlands
Incorporated in Belgium
SUEZ PCB Decontamination NV
23%
31 December 2023 Westvaartdijk 97, 1850 Grimbergen, Belgium
Valorem SA
30%
31 December 2023 Rue des trois Burettes 65 1435 Mont-Saint-Guibert, Belgium
Incorporated in Austria
EARN Elektroalgeräte Service GmbH
33%
31 December 2023 Johannesgasse 15, 1010 Wien, Austria
Incorporated in the UK
ELWA Limited
20%
31 March 2024
8 White Oak Square, London Road, Swanley, Kent, BR8
7AG United Kingdom
ELWA Holdings Limited
20%
31 March 2024
8 White Oak Square, London Road, Swanley, Kent, BR8
7AG United Kingdom
Joint operations
Group Holding %
Most recent year end
Address of the registered office
Incorporated in the Netherlands
Airport Services by Renewi & Seenons V.O.F 50%
31 December 2023 Flight Forum, 5657 DH Eindhoven, Netherlands
Hydrovac V.O.F.
50%
31 December 2023 Graafsebaan 67, 5248 JT Rosmalen, Netherlands
Octopus V.O.F.
50%
31 December 2023 Forellenweg 24, 4941 SJ Raamsdonksveer, Netherlands
Smink Boskalis Dolman V.O.F.
50%
31 December 2023 Lindeboomseweg 15, 3825 AL Amersfoort, Netherlands
Notes to the financial statements continued
236 Renewi plc Annual Report and Accounts 2024
SECTION 8. Other notes continued
8.2 Related party transactions
Transactions between the Group and its associates and joint ventures
The Group had the following transactions on arm’s length terms and outstanding balances with associates and joint ventures, in the
ordinary course of business:
Associates
Joint ventures
2024
€m
Restated*
2023
€m
2024
€m
Restated*
2023
€m
Sales
0.8
0.4
7.3
3.5
Purchases
4.3
5.0
8.5
3.9
Management fees
–
–
0.1
0.1
Receivables at 31 March
0.1
–
0.7
0.9
Payables at 31 March
0.2
0.4
1.0
0.3
Dividends paid to the Group
0.2
0.2
0.1
0.1
Loans made by Group companies at 31 March
0.8
0.7
0.2
0.3
Loans made to Group companies at 31 March
–
–
0.6
0.6
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
The receivables and payables are due one month after the date of the invoice and are unsecured in nature and bear no interest.
Remuneration of key management personnel
Key management personnel comprises the Board of Directors and the members of the Group’s Executive Committee. The disclosures
required by the Companies Act 2006 and those specified by the Financial Conduct Authority relating to Directors’ remuneration (including
retirement benefits and incentive plans), interests in shares, share options and other interests, are set out in the Directors’ Remuneration
Report on pages 128 to 147, and form part of these consolidated financial statements. The emoluments paid or payable to key
management personnel were:
2024
€m
2023
€m
Short-term employee benefits
6.6
6.3
Post-employment benefits
0.2
0.3
Share-based payments
0.8
1.0
7.6
7.6
8.3 Alternative Performance Measures (APMs) and reconciliations
In accordance with the Guidelines on APMs issued by the European Securities and Markets Authority, and considering the thematic reviews
undertaken by AFM (MarketWatch – February 2024) and the Financial Reporting Council (October 2021), additional information is provided
on the APMs used by the Group below. The Directors use APMs as they believe these measures provide additional useful information on the
underlying trends, performance and position of the Group. These measures are used for internal performance analysis, with the underlying
position derived by making adjustments from the relevant statutory number reported. These terms are not defined terms under IFRS and
may therefore not be comparable with similarly titled measures used by other companies. These measures are not intended to be a
substitute for, or superior to, IFRS measurements.
During the year the Directors have removed underlying EBITDA margin from the APMs, as it is no longer a key internal metric being used
within the business, with the main focus being on underlying EBIT margin. The figure is also easily derived from the financial statements
should users wish to calculate it for continuity or comparability. The Directors have also changed the calculation of free cash flow
conversion to be based on underlying EBITDA rather than underlying EBIT, as adding back depreciation and amortisation removes
some significant non-cash items from the calculation.
Renewi plc Annual Report and Accounts 2024
237
Strategic report
Governance report
Financial statements
Other information
SECTION 8. Other notes continued
8.3 Alternative Performance Measures (APMs) and reconciliations continued
Financial Measure
Closest GAAP measure or
equivalent calculation
How we define it
Why we use it
Underlying EBIT
Operating profit
Operating profit excluding non-trading and exceptional items
which are defined in note 3.3. The adjustments made between
underlying and statutory figures can also be seen on the face of
the Consolidated Income Statement
Provides insight into profit generation
and is the measure used by management
to make decisions as it provides
consistency and comparability of the
ongoing performance between periods
Underlying
EBIT margin
Operating profit margin
Underlying EBIT as a percentage of revenue
Provides insight into margin development
and trends
Underlying EBITDA
Operating profit
Underlying EBIT before depreciation, amortisation and impairment
of property, plant and equipment, right-of-use assets, intangible
assets and investments, profit or loss on disposal of property,
plant and equipment, intangible assets and subsidiaries
Measure of earnings and cash generation
to assess operational performance
Underlying profit
before tax
Profit before tax
Profit before tax excluding non-trading and exceptional items
Facilitates underlying performance
evaluation
Underlying EPS
EPS
Earnings per share excluding non-trading and exceptional items
Facilitates underlying performance
evaluation
Underlying
effective tax rate
Effective tax rate on profit
before tax
The effective tax rate on underlying profit before tax
Provides a more comparable basis to
analyse the tax rate
Return on
operating assets
Operating profit divided by
net assets
Last 12 months underlying EBIT divided by a 13-month average
of net assets excluding core net debt, IFRS 16 lease liabilities,
derivatives, tax balances, goodwill and acquisition
related intangibles
Provides a measure of the return on
assets across the Divisions and the Group
excluding goodwill and acquisition
related intangible balances
Underlying
post-tax return on
capital employed
Profit after tax divided by net
assets
Last 12 months underlying EBIT as adjusted by the Group effective
tax rate divided by a 13-month average of net assets excluding core
net debt, IFRS 16 lease liabilities and derivatives
Provides a measure of the Group return
on assets taking into account the
goodwill and acquisition related
intangible balances
Adjusted free
cash flow
Total of net cash inflow
from operating activities
plus net outflow from
investing activities
Net cash generated from operating activities including interest,
tax and replacement capital spend and excluding cash flows
from non-trading and exceptional items, Covid-19 tax deferral
payments, settlement of historic ATM soil liabilities and cash flows
relating to the UK PPP contracts. Payments to fund defined benefit
pension schemes are also excluded as these schemes are now
closed to both new members and ongoing accrual and as such
relate to historic liabilities. The Municipal contract cash flows are
excluded because they principally relate to onerous contracts as
reported in exceptional charges in the past and caused by adverse
market conditions not identified at the inception of the contract
Measure of cash generation in the
underlying business available to fund
growth capital projects and invest in
acquisition. We classify our capital spend
into general replacement expenditure
and growth capital projects.
Non-trading and
exceptional cash
flow items
N/A
Renewi 2.0 and other exceptional cash flows are presented in cash
flows from operating activities and are included in the categories in
note 3.3, net of opening and closing Balance Sheet positions
Provides useful information on
non-trading and exceptional
cash flow spend
Free cash flow
Total of net cash inflow from
operating activities plus
net cash outflow from
investing activities
Net cash generated from operating activities, including interest, tax
and replacement capital spend
Measure of cash available after regular
replacement capital expenditure and
historic liabilities to pay dividends, fund
growth capital projects and invest
in acquisitions
Free cash flow/
EBITDA conversion
Total of net cash inflow from
operating activities plus net
cash outflow from investing
activities divided by
operating profit
The ratio of free cash flow to underlying EBITDA
Provides an understanding of how profits
convert into cash
Growth capital
expenditure
N/A
Growth capital projects which include the innovation portfolio and
other large strategic investments
Provides an understanding of how cash is
being spent to grow the business
Notes to the financial statements continued
238 Renewi plc Annual Report and Accounts 2024
SECTION 8. Other notes continued
8.3 Alternative Performance Measures (APMs) and reconciliations continued
Financial Measure
Closest GAAP
measure or
equivalent
calculation
How we define it
Why we use it
Total cash flow
Net
movement
in cash
and cash
equivalents
Total cash flow is the movement in net debt excluding loan fee capitalisation and
amortisation, exchange movements, movement in PPP cash and PPP non-recourse
debt, additions to IFRS 16 lease liabilities and lease liabilities acquired through a
business combination
Provides an understanding of total cash
flow of the Group
Core cash
Cash and
cash
equivalents
Core cash excludes cash and cash equivalents relating to UK PPP contracts
The cash relating to UK PPP contracts
is not freely available to the Group and
is excluded from financial covenant
calculations of the main multicurrency
green finance facility therefore excluding
this gives a suitable measure of cash for
the Group
Core net debt
Borrowings
Core net debt includes core cash excludes debt relating to the UK PPP contracts
and lease liabilities as a result of IFRS 16
The borrowings relating to the UK PPP
contracts are non-recourse to the Group
and excluding these gives a suitable
measure of indebtedness for the Group
and IFRS 16 lease liabilities are excluded
as financial covenants on the main
multicurrency green finance facility
remain on a frozen GAAP basis
Liquidity
N/A
Liquidity headroom includes core cash and undrawn committed amounts on the
multicurrency green finance facility and the European Investment Bank facility.
Provides an understanding of available
headroom to the Group
Net debt to
covenant defined
EBITDA/leverage
ratio
Net debt and
operating
profit
This is the key covenant of the Group’s banking facilities which is calculated
following an agreed methodology to protect the Group from potential volatility
caused by accounting standard changes, sudden movements in exchange rates and
exceptional items. Net debt and EBITDA are measured on a frozen GAAP basis with
the main impact of this being the exclusion of IFRS 16 Lease Liabilities. Exceptional
items are excluded from EBITDA and cash and debt relating to UK PPP contracts is
excluded from net debt. Net debt and EBITDA are translated to Euros using average
exchange rates for the period. Covenant ratios are measured semi-annually on a
rolling 12-month basis at March and September.
Commonly used measure of financial
leverage and consistent with
covenant definition
Reconciliations of non-IFRS measures are set out below:
Reconciliation of operating profit (loss) to underlying EBITDA from continuing operations
2024
Netherlands
Commercial
Waste
€m
Belgium
Commercial
Waste
€m
Mineralz &
Water
€m
Specialities
€m
Group central
services
€m
Total
€m
Operating profit (loss) from continuing operations
53.2
42.9
7.3
15.4
(21.2)
97.6
Non-trading and exceptional items (excl. finance items)
(note 3.3)
(0.3)
2.7
2.3
0.9
2.3
7.9
Underlying EBIT from continuing operations
52.9
45.6
9.6
16.3
(18.9)
105.5
Depreciation and impairment of property, plant and
equipment and right-of-use assets (notes 4.2 & 4.3)*
59.4
31.4
14.9
8.1
6.6
120.4
Amortisation of intangible assets (excluding acquisition related
intangibles & discontinued operations) (note 4.1)
0.6
–
0.9
–
4.7
6.2
Non-exceptional gain on disposal of property, plant and
equipment, intangible assets and subsidiaries (note 3.2)
(1.6)
(0.5)
0.2
–
–
(1.9)
Underlying EBITDA from continuing operations
111.3
76.5
25.6
24.4
(7.6)
230.2
*
Includes depreciation charges, impairment charges and impairment releases relating to continuing operations, but excludes any such items recorded within non-trading and
exceptional items, as these are already accounted for within underlying EBIT. Additional analysis by segment is shown in Section 2.
Renewi plc Annual Report and Accounts 2024
239
Strategic report
Governance report
Financial statements
Other information
SECTION 8. Other notes continued
8.3 Alternative Performance Measures (APMs) and reconciliations continued
2023
Netherlands
Commercial
Waste
€m
Belgium
Commercial
Waste
€m
Mineralz &
Water
€m
Restated*
Specialities
€m
Group central
services
€m
Restated*
Total
€m
Operating profit (loss) from continuing operations
69.4
65.3
1.0
17.1
(11.3)
141.5
Non-trading and exceptional items (excluding finance items)
7.5
(12.9)
(0.5)
(1.2)
(2.7)
(9.8)
Underlying EBIT from continuing operations
76.9
52.4
0.5
15.9
(14.0)
131.7
Depreciation and impairment of property, plant and
equipment and right-of-use assets (notes 4.2 & 4.3)**
57.1
31.2
17.0
7.0
6.2
118.5
Amortisation of intangible assets (excluding acquisition
related intangibles) (note 4.1)
0.9
–
0.9
–
3.5
5.3
Non-exceptional gain on disposal of property, plant and
equipment, intangible assets and subsidiaries (note 3.2)
(1.9)
(0.2)
(0.1)
(0.9)
–
(3.1)
Underlying EBITDA from continuing operations
133.0
83.4
18.3
22.0
(4.3)
252.4
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation, additional analysis by segment is shown in Section 2.
** Includes depreciation charges, impairment charges and impairment releases relating to continuing operations, but excludes any such items recorded within non-trading
and exceptional items, as these are already accounted for within underlying EBIT.
Calculation of return on operating assets from continuing operations
Netherlands
Commercial
Waste
€m
Belgium
Commercial
Waste
€m
Mineralz &
Water
€m
Specialities
excluding
UK Municipal
€m
Group
€m
2024
Underlying EBIT from continuing operations
52.9
45.6
9.6
16.3
105.5
13 month average of operating assets
439.4
163.5
60.0
56.9
530.6
Return on operating assets from continuing operations
12.0%
27.9%
15.9%
28.6%
19.9%
2023 Restated*
Underlying EBIT from continuing operations
76.9
52.4
0.5
15.9
131.7
13 month average of operating assets
398.2
110.8
64.4
44.9
439.5
Return on operating assets from continuing operations
19.3%
47.3%
0.8%
35.4%
30.0%
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Calculation of underlying post-tax return on capital employed
2024
€m
2023
€m
Operating profit (from continuing and discontinued operations)
37.6
121.4
Non-trading and exceptional items in operating profit (from continuing and discontinued operations)
69.2
11.5
Underlying EBIT (from continuing and discontinued operations)
106.8
132.9
Tax at effective rate (2024: 27.0%, 2023: 27.1%)
(28.8)
(36.0)
Post tax underlying EBIT (from continuing and discontinued operations)
78.0
96.9
13-month average of capital employed
1,013.5
915.3
Underlying post -tax return on capital employed
7.7%
10.6%
Notes to the financial statements continued
240 Renewi plc Annual Report and Accounts 2024
SECTION 8. Other notes continued
8.3 Alternative Performance Measures (APMs) and reconciliations continued
Reconciliation of statutory profit before tax to underlying profit before tax
2024
€m
Restated*
2023
€m
Statutory profit before tax
60.1
115.0
Non-trading and exceptional items in operating profit
7.9
(9.8)
Underlying profit before tax
68.0
105.2
*
The comparatives have been restated to classify the UK Municipal segment as a discontinued operation.
Reconciliation of free cash flow and adjusted free cash flow as presented in the CFO’s statement
2024
€m
2023
€m
Net cash generated from operating activities
168.7
188.4
Include finance charges and loan fees paid
(41.9)
(31.3)
Include finance income received
10.8
10.6
Include repayment of obligations under lease liabilities
(55.3)
(47.5)
Include purchases of replacement items of intangible assets
(13.3)
(9.9)
Include purchases of replacement items of property, plant and equipment
(64.1)
(84.2)
Include proceeds from disposals of property, plant and equipment
20.2
6.8
Included capital received in respect of PPP financial assets net of outflows
5.9
6.0
Include repayment of UK Municipal contracts PPP debt
(5.3)
(8.1)
Include movement in UK Municipal contracts PPP cash
(3.3)
1.1
Investment in own shares and other
(1.5)
(6.6)
Free cash flow
20.9
25.3
Exclude deferred Covid taxes paid
19.9
19.7
Exclude offtake of ATM soil
2.5
1.2
Exclude UK Municipal contracts
15.8
12.2
Exclude non-trading and exceptional provisions and working capital
5.5
4.4
Exclude payments to fund defined benefit pension schemes
3.5
3.5
Investment in own shares and other
1.5
6.6
Adjusted free cash flow
69.6
72.9
Reconciliation of net capital spend in the CFO’s statement to purchases and disposal proceeds of
property, plant and equipment and intangible assets within Investing activities in the consolidated
Statement of Cash Flows
2024
€m
2023
€m
Purchases of intangible assets
(13.3)
(9.9)
Purchases of replacement property, plant and equipment
(64.1)
(84.2)
Proceeds from disposals of property, plant and equipment
20.2
6.8
Net replacement capital expenditure
(57.2)
(87.3)
Growth capital expenditure
(22.0)
(30.8)
Total capital spend as shown in the cash flow in the CFO’s statement
(79.2)
(118.1)
Renewi plc Annual Report and Accounts 2024
241
Strategic report
Governance report
Financial statements
Other information
SECTION 8. Other notes continued
8.3 Alternative Performance Measures (APMs) and reconciliations continued
2024
€m
2023
€m
Purchases of intangible assets
(13.3)
(9.9)
Purchases of property, plant and equipment (replacement and growth)
(86.1)
(115.0)
Proceeds from disposals of property, plant and equipment
20.2
6.8
Purchases and disposal proceeds of property, plant and equipment and intangible assets within
Investing activities in the consolidated Statement of Cash Flows
(79.2)
(118.1)
Reconciliation of property, plant and equipment additions to replacement capital expenditure as
presented in the CFO’s statement
2024
€m
2023
€m
Property, plant and equipment additions (note 4.2)
(82.6)
(117.9)
Intangible asset additions (note 4.1)
(11.7)
(8.7)
Proceeds from disposals of property, plant and equipment
20.2
6.8
Movement in capital creditors (included in trade and other payables)
(5.1)
1.7
Growth capital expenditure – as disclosed in the CFO’s statement
22.0
30.8
Replacement capital expenditure per the CFO’s statement
(57.2)
(87.3)
Reconciliation of total cash flow as presented in the CFO’s statement to the movement in total
net debt
2024
€m
2023
€m
Total cash flow
(0.9)
(64.9)
Additions to lease liabilities net of cancelled lease liabilities
(60.0)
(52.0)
Lease liabilities acquired through a business combination
–
(30.7)
Repayment of obligations under lease liabilities
55.3
47.5
Movement in PPP non-recourse debt
5.3
8.1
Movement in PPP cash and cash equivalents
3.3
(1.1)
Capitalisation of loan fees net of amortisation
0.7
(0.7)
Less net debt transferred as part of the disposal group
67.7
–
Exchange movements
(1.7)
2.6
Movement in total net debt (note 5.1)
69.7
(91.2)
Notes to the financial statements continued
242 Renewi plc Annual Report and Accounts 2024
SECTION 8. Other notes continued
8.3 Alternative Performance Measures (APMs) and reconciliations continued
Reconciliation of total cash flow as presented in the CFO’s statement to the movement in cash
2024
€m
2023
€m
Total cash flow
(0.9)
(64.9)
Repayments of retail bonds
–
(100.0)
Proceeds from bank borrowings
439.5
565.0
Repayment of bank borrowings
(402.1)
(405.6)
Bank loan acquired through business combination
–
7.0
Movement in PPP cash and cash equivalents
3.3
(1.1)
Less cash transferred as part of the disposal group
(24.5)
–
Exchange movements
1.0
(1.3)
Movement in total cash
16.3
(0.9)
Reconciliation of total net debt to net debt under covenant definition
2024
€m
2023
€m
Total net debt
(616.0)
(685.7)
Exclude PPP non-recourse debt
–
88.3
Exclude PPP cash and cash equivalents
–
(19.0)
Exclude IFRS 16 lease liabilities
247.9
245.8
Net debt aligned with covenant definition
(368.1)
(370.6)
8.4 Contingent liabilities
Since 2017 ATM has faced challenges in the offtake of thermally treated soil. There are discussions ongoing on the application of thermally
treated soil in certain areas in the Netherlands and it cannot be ruled out that this could result in liability for damages resulting from
third-party claims in the future.
All sites need to operate in alignment with the related permits and when new regulatory requirements come into force, the Group
may need to undertake additional expenditure to align to new standards. No account is taken of any potential changes until the new
obligations are fully defined and enforceable.
Due to the nature of the industry in which the business operates, from time to time the Group is made aware of claims or litigation arising
in the ordinary course of the Group’s business. Provision is made for the Directors’ best estimate of all known claims and all such legal
actions in progress. The Group takes legal advice as to the likelihood of success of claims and actions and no provision is made where the
Directors consider, based on that advice, that the action is unlikely to succeed or a sufficiently reliable estimate of the potential obligation
cannot be made. None of these other matters are expected to have a material impact.
Under the terms of sale agreements, the Group has given a number of indemnities and warranties relating to businesses sold in prior
periods. Different warranty periods are in existence and it is assumed that these will expire within 15 years. Based on management’s
assessment of the most likely outcome appropriate warranty provisions are held.
In respect of contractual liabilities the Group and its subsidiaries have given guarantees and entered into counter indemnities of bonds
and guarantees given on their behalf by sureties and banks totalling €231.4m (2023: €229.2m).
8.5 Events after the balance sheet date
On 27 May 2024, the Group entered into a commitment letter for a €120m bridging facility as detailed in section 1.
On 30 May 2024, the Group entered into a sale agreement with Biffa Limited for the disposal of its UK Municipal business as detailed in
note 6.4.
Renewi plc Annual Report and Accounts 2024
243
Strategic report
Governance report
Financial statements
Other information
2024
€m
Restated*
2023
€m
Restated*
2022
€m
Restated*
2021
€m
Restated*
2020
€m
Consolidated Income Statement
Revenue from continuing operations**
1,689.2
1,703.9
1,652.9
1,488.1
1,578.2
Underlying EBIT from continuing operations**
105.5
131.7
140.8
72.9
90.4
Finance charges – interest
(30.4)
(21.6)
(20.2)
(20.1)
(23.9)
Finance charges – other
(7.6)
(5.2)
(7.4)
(5.5)
(7.7)
Share of results from associates and joint ventures
0.5
0.3
0.2
1.3
0.3
Profit from continuing operations before non-trading and exceptional
items and tax (underlying profit)
68.0
105.2
113.4
48.6
59.1
Non-trading and exceptional items
(7.9)
9.8
(9.7)
(36.7)
(86.6)
Profit (loss) before tax from continuing operations
60.1
115.0
103.7
11.9
(27.5)
Taxation
(16.1)
(30.8)
(25.9)
(12.2)
(12.9)
Exceptional tax and tax on exceptional items
1.2
1.8
4.2
6.2
12.6
Profit (loss) after tax from continuing operations
45.2
86.0
82.0
5.9
(27.8)
Loss after tax from discontinued operations
(76.1)
(19.4)
(6.6)
(0.4)
(49.3)
(Loss) profit for the year
(30.9)
66.6
75.4
5.5
(77.1)
(Loss) profit attributable to:
Owners of the parent
(34.1)
62.9
74.5
5.6
(77.9)
Non-controlling interests
3.2
3.7
0.9
(0.1)
0.8
(30.9)
66.6
75.4
5.5
(77.1)
Consolidated Balance Sheet
Non-current assets
1,562.4
1,686.2
1,565.9
1,612.3
1,625.8
Other assets less liabilities
(632.4)
(653.2)
(629.5)
(713.0)
(631.6)
Total net debt
(616.0)
(685.7)
(594.5)
(658.0)
(758.9)
Net assets
314.0
347.3
341.9
241.3
235.3
Equity attributable to owners of the parent
Share capital and share premium
574.6
573.9
573.3
573.1
573.1
Exchange reserve and retained earnings
(273.6)
(236.7)
(238.4)
(337.9)
(339.2)
301.0
337.2
334.9
235.2
233.9
Non-controlling interests
13.0
10.1
7.0
6.1
1.4
Total equity
314.0
347.3
341.9
241.3
235.3
Financial ratios
Underlying earnings per share – continuing operations
(cents per share)
61c
89c
109c
46c
58c
Basic earnings (loss) per share – continuing operations
(cents per share)
53c
104c
102c
8c
(36)c
Dividend per share (pence per share)
5p
–
–
–
4.5p
*
The comparatives have been restated, only for the income statement items and earnings per share figures, to classify the UK Municipal segment as a discontinued operation.
** Revenue and underlying EBIT from continuing operations are stated before non-trading and exceptional items as set out in note 3.3 for the years ended 31 March 2024 and
31 March 2023.
Consolidated five year financial summary
Parent company financial statements continued
244 Renewi plc Annual Report and Accounts 2024
Note
31 March
2024
£m
31 March
2023
£m
Assets
Non-current assets
Intangible assets
6
–
0.1
Property, plant and equipment
7
–
0.1
Investments
8
525.8
525.8
Other receivables
9
341.7
113.9
Deferred tax assets
10
9.5
8.8
877.0
648.7
Current assets
Trade and other receivables
9
1.3
256.0
Current tax receivable
0.7
–
Cash and cash equivalents
11
24.9
17.3
26.9
273.3
Assets classified as held for sale
9
18.4
–
45.3
273.3
Total assets
922.3
922.0
Liabilities
Non-current liabilities
Borrowings
12
(106.6)
(175.4)
Provisions
14
(1.2)
(1.1)
Defined benefit pension scheme deficit
15
(6.5)
(3.7)
(114.3)
(180.2)
Current liabilities
Borrowings
12
(64.1)
–
Trade and other payables
13
(6.6)
(8.3)
Current tax payable
–
(1.7)
Provisions
14
(0.3)
(0.7)
(71.0)
(10.7)
Total liabilities
(185.3)
(190.9)
Net assets
737.0
731.1
Equity
Share capital
16
80.6
80.2
Share premium
16
402.1
401.8
Retained earnings*
254.3
249.1
Total equity
737.0
731.1
*
As permitted by section 408 of the Companies Act, the Company has elected not to present its own Income Statement or Statement of Comprehensive Income. The Company
reported a profit for the year ended 31 March 2024 of £9.9m (2023: £90.6m).
The notes on pages 248 to 255 are an integral part of these financial statements.
These Financial Statements were approved by the Board of Directors and authorised for issue on 30 May 2024. They were signed on its
behalf by:
Parent company Balance Sheet
As at 31 March 2024
Ben Verwaayen
Chairman
Annemieke den Otter
Chief Financial Officer
Renewi plc Annual Report and Accounts 2024
245
Strategic report
Governance report
Financial statements
Other information
Note
Share
capital
£m
Share
premium
£m
Retained
earnings
£m
Total
equity
£m
Balance at 1 April 2023
80.2
401.8
249.1
731.1
Profit for the year
–
–
9.9
9.9
Other comprehensive (loss) income:
Actuarial loss on defined benefit pension scheme
15
–
–
(5.7)
(5.7)
Tax in respect of other comprehensive income items
–
–
1.4
1.4
Total comprehensive income for the year
–
–
5.6
5.6
Transactions with owners in their capacity as owners:
Share-based compensation
3
–
–
1.1
1.1
Proceeds from exercise of employee options
16
0.4
0.3
–
0.7
Own shares purchased by the Employee Share Trust
16
–
–
(1.5)
(1.5)
Balance at 31 March 2024
80.6
402.1
254.3
737.0
Balance at 1 April 2022
80.0
401.6
172.2
653.8
Profit for the year
–
–
90.6
90.6
Other comprehensive (loss) income:
Actuarial loss on defined benefit pension scheme
15
–
–
(14.3)
(14.3)
Tax in respect of other comprehensive income items
–
–
3.6
3.6
Total comprehensive income for the year
–
–
79.9
79.9
Transactions with owners in their capacity as owners:
Share-based compensation
3
–
–
2.3
2.3
Movement in tax arising on share-based compensation
–
–
(0.8)
(0.8)
Proceeds from exercise of employee options
16
0.2
0.2
–
0.4
Own shares purchased by the Employee Share Trust
16
–
–
(4.5)
(4.5)
Balance at 31 March 2023
80.2
401.8
249.1
731.1
Parent company Statement of Changes in Equity
For the year ended 31 March 2024
Parent company financial statements continued
246 Renewi plc Annual Report and Accounts 2024
2024
£m
2023
£m
Profit before tax
4.8
92.9
Finance income
(20.2)
(20.6)
Finance charges
8.0
8.0
Operating (loss) profit
(7.4)
80.3
Amortisation of intangible assets
0.1
0.1
Dividend income
(4.6)
(77.2)
Net decrease in provisions
(0.4)
(0.1)
Payment related to committed funding of the defined benefit pension scheme
(2.9)
(3.1)
Share-based compensation
1.1
2.3
Exchange gain (loss)
4.9
(5.4)
Operating cash flows before movement in working capital
(9.2)
(3.1)
Decrease in receivables
11.9
16.2
(Decrease) increase in payables
(11.2)
0.4
Cash flows (used in) from operating activities
(8.5)
13.5
Income tax received
–
0.5
Net cash (outflow) inflow from operating activities
(8.5)
14.0
Investing activities
Dividend received in cash
4.6
77.2
Finance income
20.3
17.8
Net cash inflow from investing activities
24.9
95.0
Financing activities
Proceeds from share issues
0.7
0.4
Finance charges and loan fees paid
(8.0)
(9.4)
Repayment of retail bonds
–
(86.5)
Proceeds from bank borrowings
–
2.2
Repayment of bank borrowings
–
(2.2)
Investment in own shares by the Employee Share Trust
(1.5)
(4.5)
Net cash outflow from financing activities
(8.8)
(100.0)
Net increase in cash and cash equivalents
7.6
9.0
Cash and cash equivalents at the beginning of the year
17.3
8.3
Cash and cash equivalents at the end of the year
24.9
17.3
Parent company Statement of Cash Flows
For the year ended 31 March 2024
Renewi plc Annual Report and Accounts 2024
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Strategic report
Governance report
Financial statements
Other information
Notes to the parent company financial statements
1. Accounting policies – Company
General information
Renewi plc is a public limited company listed on the London Stock Exchange with a secondary listing on Euronext Amsterdam.
Renewi plc is incorporated and domiciled in Scotland under the Companies Act 2006, registered number SC077438. The address
of the registered office is given on page 275. The nature of the Company’s principal activity is a head office corporate function.
The financial statements for Renewi plc the Company are presented in Sterling being the functional currency of the entity and are
rounded to the nearest £0.1m, unless otherwise stated.
Basis of preparation
The separate financial statements of the Company are presented in compliance with the requirements for companies whose shares are
listed on the London Stock Exchange. They have been prepared on the historical cost basis, except for share-based payments, which
are stated at fair value. The policies set out below have been consistently applied. The Company has applied all accounting standards
and interpretations issued relevant to its operations and effective for accounting periods beginning on 1 April 2023. The financial
statements are prepared in accordance with UK adopted international accounting standards in conformity with the requirements
of the Companies Act 2006.
Going concern
As set out in section 1 Basis of preparation of the consolidated financial statements, having assessed the principal risks and other
matters in connection with the viability statement, the Directors consider it appropriate to continue to adopt the going concern basis
of accounting in preparing these financial statements.
New standards and interpretations not yet adopted
Standards and interpretations issued by the International Accounting Standards Board (IASB) are only applicable if endorsed by the
UK Endorsement Board (UKEB). There were no new standards, amendments to standards or interpretations not yet effective that
would be expected to have a material impact on the Company.
Intangible assets
Computer software is capitalised on the basis of the costs incurred to purchase and bring the assets into use. These costs are
amortised over the estimated useful life ranging from one to five years on a straight-line basis.
Property, plant and equipment
Property, plant and equipment, except for freehold land, is stated at cost less accumulated depreciation and provision for impairment.
Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its
intended use. Freehold land is not depreciated. The asset’s residual values and useful lives are reviewed and adjusted if appropriate
at the end of each reporting period.
Depreciation is provided to write-off the cost of fixtures and fittings (less the expected residual value) on a straight-line basis over an
expected useful life of up to 10 years.
Assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value. An impairment loss is recognised immediately as an operating expense and at each subsequent
reporting date the impairment is reviewed for possible reversal.
Investments in subsidiary undertakings
Investments in subsidiary undertakings are stated at cost less any provision for impairment in value. Investments are reviewed for
impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment provision
is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value.
Parent company financial statements continued
248 Renewi plc Annual Report and Accounts 2024
1. Accounting policies – Company continued
Provisions
Provisions are recognised where there is a present legal or constructive obligation as a result of a past event, and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation.
Employee benefits
Retirement benefits
The Company accounts for pensions and similar benefits under IAS 19 (revised) Employee Benefits. For defined benefit plans, obligations
are measured at discounted present value whilst plan assets are recorded at fair value. The operating and financing costs of the plans are
recognised separately in the Income Statement. Interest is calculated by applying the discount rate to the net defined pension liability.
Actuarial gains and losses are recognised in full through the Statement of Comprehensive Income; surpluses are recognised only to the
extent that they are recoverable. Movements in irrecoverable surpluses are recognised immediately in the Statement of Comprehensive
Income. Payments to defined contribution schemes are charged to the Income Statement as they become due.
Share-based payments
The Company issues equity-settled share-based awards to certain employees. The fair value of share-based awards is determined at the
date of grant and expensed on a straight-line basis over the vesting period, with a corresponding increase in equity based on the Company’s
estimate of the shares that will eventually vest. At each balance sheet date, the Company revises its estimates of the number of awards
that are expected to vest based on service and non-market performance conditions. The amount expensed is adjusted over the vesting
period for changes in the estimate of the number of shares that will eventually vest, except for changes resulting from any market-related
performance conditions.
Taxation
Current tax
Current tax is based on taxable profit or loss for the year. Taxable profit differs from profit before tax in the Income Statement because
it excludes items of income or expense that are taxable or deductible in other years or that are never taxable or deductible. The asset
or liability for current tax is calculated using tax rates that have been enacted, or substantively enacted, at the balance sheet date.
Deferred tax
Deferred tax is recognised in full where the carrying value of assets and liabilities in the financial statements is different to the
corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that the taxable profits will be available
against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax rates that have been substantively
enacted at the balance sheet date. Deferred tax is charged or credited in the Income Statement, except where it relates to items charged
or credited directly to equity in which case the deferred tax is also dealt with in equity.
Foreign currencies
The functional currency of the Company is Sterling. Monetary assets and liabilities denominated in foreign currencies at the year end
are translated at the period end exchange rates. Income and expenses denominated in foreign currencies are translated into sterling
at the average rate of exchange for the month in which they occur. Foreign currency gains or losses are credited or charged in the
Income Statement.
Financial instruments
Amounts owed by subsidiary undertakings
Amounts owed by subsidiary undertakings are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method less any provision for impairment losses. The Company measures impairment losses using the general
expected credit loss model, taking into account objective evidence of impairment as a result of assessing the estimated future cash
flows of the financial asset.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with a maturity of three months or less and is held at amortised cost.
Renewi plc Annual Report and Accounts 2024
249
Strategic report
Governance report
Financial statements
Other information
1. Accounting policies – Company continued
External borrowings
Retail bonds and bank loans are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums
payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Income Statement using
the effective interest rate method.
Trade payables
Trade payables are not interest bearing and are stated initially at fair value and subsequently held at amortised cost.
Amounts owed to subsidiary undertakings
Amounts owed to subsidiary undertakings are initially recognised at fair value and subsequently held at amortised cost.
Other receivables and other payables
Other receivables and other payables are initially recognised at fair value and subsequently measured at amortised cost.
Called up share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or share options are
shown in equity as a deduction, net of tax, from the proceeds. The share premium account represents any excess of the net proceeds
over the nominal value of any shares issued.
Dividends
Dividend distributions to the equity holders are recognised in the period in which they are approved by the shareholders in general
meeting. Interim dividends are recognised when paid.
2. Key accounting judgements and estimates
The preparation of financial statements in accordance with IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure.
The areas involving a higher degree of judgement or complexity are set out below and in more detail in the related note.
Defined benefit pension scheme
The Company operates a defined benefit scheme in the UK for which an actuarial valuation is carried out as determined by the trustees
at intervals of not more than three years. The pension cost under IAS 19 (revised) Employee Benefits is assessed in accordance with
management’s best estimates using the advice of an independent qualified actuary and assumptions in the latest actuarial valuation.
The principal assumptions in connection with the retirement benefit scheme are set out in note 7.2 of the Group financial statements.
Impairment of investments in subsidiary undertakings and amounts owed by
subsidiary undertakings
Investments in subsidiary undertakings and amounts owed by subsidiary undertakings are reviewed for impairment whenever events
or circumstances indicate that the carrying value may not be recoverable. The carrying value is estimated based on projected cash
flows which may be long term in nature as detailed in note 8.
Parent company financial statements continued
250 Renewi plc Annual Report and Accounts 2024
3. Employees
Staff costs
2024
£m
2023
£m
Wages and salaries
3.0
4.2
Social security costs
0.2
0.3
Share-based benefits
1.1
2.3
Other pension costs
0.1
–
Total staff costs
4.4
6.8
The average number of people (including executive directors) employed by the Company was 15 employees (2023: 18).
See pages 128 to 147 of the Directors’ Remuneration report for details of the remuneration of executive and non-executive Directors
and their interest in shares and options of the Company. Further details on share-based payments are set out in note 7.3 of the Group
financial statements
4. Auditors’ remuneration
The auditors’ remuneration for audit services to the Company was £0.1m (2023: £0.1m) and the fees paid to BDO LLP and its associates for
non-audit services for audit related assurance services for the Company were £nil (2023: £15,000).
5. Dividends
The Directors have proposed a final dividend of 5 pence per share (2023: £nil) totalling £4.0m (2023: £nil) for the year ended March 2024.
6. Intangible assets
Computer
Software
£m
Cost
At 1 April 2022, 31 March 2023 and 31 March 2024
0.5
Accumulated amortisation and impairment
At 1 April 2022
0.3
Amortisation charge
0.1
At 31 March 2023
0.4
Amortisation charge
0.1
At 31 March 2024
0.5
Net book value
At 31 March 2024
–
At 31 March 2023
0.1
At 31 March 2022
0.2
Renewi plc Annual Report and Accounts 2024
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Governance report
Financial statements
Other information
7. Property, plant and equipment
Land
£m
Fixtures and
fittings
£m
Total
£m
Cost
At 1 April 2022
0.1
0.2
0.3
Disposal
–
(0.2)
(0.2)
At 31 March 2023
0.1
–
0.1
Disposal
(0.1)
–
(0.1)
At 31 March 2024
–
–
–
Accumulated depreciation and impairment
At 1 April 2022
–
0.1
0.1
Disposal
–
(0.1)
(0.1)
At 31 March 2023 and 31 March 2024
–
–
–
Net book value
At 31 March 2024
–
–
–
At 31 March 2023
0.1
–
0.1
At 31 March 2022
0.1
0.1
0.2
8. Investments
Investments
in subsidiary
undertakings
£m
At 31 March 2023 and 31 March 2024
525.8
In the opinion of the Directors, the value of investments in subsidiary undertakings is not less than the aggregate amount of £525.8m
(2023: £525.8m). This assessment is based on the value in use calculated with reference to the discounted cash flow forecasts for each
of the reporting segments of the Group as set out in note 4.1 of the Group financial statements. The Group performs sensitivity analysis
of the impairment testing by considering reasonably possible changes in the key assumptions used. The results of sensitivities performed
demonstrated significant headroom and it is concluded that no reasonably possible change to the assumptions would result in an
impairment charge.
9. Trade and other receivables and Assets classified as held for sale
2024
£m
2023
£m
Non-current assets
Amounts owed by subsidiary undertakings
340.3
113.9
Other receivables
1.4
–
341.7
113.9
Current assets
Amounts owed by subsidiary undertakings
–
254.5
Other receivables
0.7
0.2
Prepayments
0.6
1.3
1.3
256.0
Assets classified as held for sale of £18.4m (2023: £nil) represent amounts owed by subsidiary undertakings, previously recorded as
non-current assets, that are due from entities which are part of the Asset Held for Sale disposal group outlined within note 6.4 of the
Group financial statements. The amounts owed are expected to be exchanged with a different subsidiary undertaking resulting in no
gain or loss on disposal, therefore the balances are considered recoverable in full.
Parent company financial statements continued
252 Renewi plc Annual Report and Accounts 2024
9. Trade and other receivables continued
The carrying amounts of trade and other receivables are denominated in the following currencies:
2024
£m
2023
£m
Sterling
21.1
19.7
Euro
340.3
350.2
361.4
369.9
Interest on amounts owed by subsidiary undertakings is received at rates of between 0% and 14% (2023: 0% and 14%), the balances are
unsecured and repayable either on demand or in accordance with the loan agreements with a final repayment date of March 2032.
10. Deferred tax asset
Deferred tax is provided in full on temporary differences under the liability method using the applicable tax rate.
Retirement
benefit scheme
£m
Tax losses
£m
Other timing
differences
£m
Total
£m
At 1 April 2022
(1.8)
7.3
1.5
7.0
(Charge) credit to Income Statement
(0.9)
(0.6)
0.5
(1.0)
Credit (charge) to equity
3.6
–
(0.8)
2.8
At 31 March 2023
0.9
6.7
1.2
8.8
(Charge) credit to Income Statement
(0.7)
0.4
(0.4)
(0.7)
Credit to equity
1.4
–
–
1.4
At 31 March 2024
1.6
7.1
0.8
9.5
The majority of the £9.5m (2023: £8.8m) deferred tax asset is expected to be recovered after more than one year and is expected to be used
within the next six years, as outlined within the group tax note 3.4.
As at 31 March 2024, the Company has unused tax losses (tax effect) of £7.1m (2023: £6.7m) available for offset against future profits.
A deferred tax asset has been recognised in respect of £7.1m (2023: £6.7m) of such losses and recognition is based on management’s
projections of future profits in the Company. Tax losses may be carried forward indefinitely.
11. Cash and cash equivalents
The carrying amount of cash and cash equivalents of £24.9m (2023: £17.3m) was denominated in Sterling.
12. Borrowings
2024
£m
2023
£m
Non-current borrowings
Retail bonds
106.6
175.4
Current borrowings
Retail bonds
64.1
–
At 31 March 2024, the Group had two issues of green retail bonds. The bonds of £64.1m (€75m) (2023: £65.8m (€75m)) maturing in July 2024
have an annual gross coupon of 3.00% and the bonds of £106.6m (€125m) (2023: £109.6m (€125m)) maturing in July 2027 have an annual
gross coupon of 3.00%. The retail bonds are unsecured and have cross guarantees from members of the Group. Further details are given
in the Group financial statements in note 5.8.
Of the non-current borrowings of £106.6m (2023: £175.4m), £nil (2023: £65.8m) is due to be repaid between one and two years and £106.6m
(2023: £109.6m) is due to be repaid between two and five years. The carrying amounts of borrowings are denominated in Euros.
Renewi plc Annual Report and Accounts 2024
253
Strategic report
Governance report
Financial statements
Other information
13. Trade and other payables
2024
£m
2023
£m
Trade payables
0.7
0.4
Other tax and social security payable
0.2
0.4
Accruals and other payables
5.6
6.8
Amounts owed to Group undertakings
0.1
0.7
6.6
8.3
The carrying amounts of trade and other payables are denominated in the following currencies:
2024
£m
2023
£m
Sterling
2.9
3.8
Euro
3.7
4.5
6.6
8.3
Amounts owed to Group undertakings are interest free, unsecured and repayable upon demand.
14. Provisions
£m
At 1 April 2023
1.8
Provided in the year
0.2
Utilised in the year
(0.5)
At 31 March 2024
1.5
Of the £1.5m (2023: £1.8m) provisions, £0.3m is current (2023: £0.7m) and £1.2m is non-current (2023: £1.1m). Provisions principally
include warranties, whereby under the terms of the agreements for the disposal of certain businesses, the Company has given warranties
to the purchasers which may give rise to payments. The Company has the liability until the end of the contractual terms in the agreements.
15. Retirement benefit scheme
The Company’s defined benefit pension scheme (called the Shanks Group Pension Scheme) covers eligible UK employees and is
closed to new entrants and closed for future benefit accrual. The plan provides benefits to members in the form of a guaranteed level
of pension payable for life and the level of benefits provided depends on the members’ length of service and salary. The funding plan
has been maintained at the current level of £3.1m per annum until December 2024. Further details are provided in note 7.2 of the
Group financial statements.
16. Share capital and share premium
Share capital –
ordinary shares
Share
premium
Number
£m
£m
Share capital allotted, called up and fully paid
At 1 April 2022 (ordinary shares of £1 each)
80,059,937
80.0
401.6
Issued under share option schemes (ordinary shares of £1 each)
190,358
0.2
0.2
At 31 March 2023 (ordinary shares of £1 each)
80,250,295
80.2
401.8
Issued under share option schemes (ordinary shares of £1 each)
301,075
0.4
0.3
At 31 March 2024 (ordinary shares of £1 each)
80,551,370
80.6
402.1
During the year, 301,075 (2023: 190,358) ordinary shares of £1 were allotted. These new shares resulted from the exercise of share
options under the Savings Related Share Option Schemes for an aggregated consideration of £0.7m (2023: £0.4m). Further disclosures
relating to share-based options are set out in note 7.3 of the Group financial statements.
Parent company financial statements continued
254 Renewi plc Annual Report and Accounts 2024
16. Share capital and share premium continued
Renewi plc Employee Share Trust
The Renewi plc Employee Share Trust owns 600,326 (0.7%) (2023: 853,223 (1.1%)) £1 shares of the issued share capital of the Company in
trust for the benefit of employees of the Group. The Trust waives its dividend entitlement. Retained earnings include ordinary shares held
by the Trust to satisfy future share awards which are recorded at cost. During the year, 544,967 (2023: 400,597) £1 shares were transferred
to individuals under the LTIP and DAB schemes. During the year, 292,070 (2023: 700,969) £1 shares were purchased by the Trust at a cost
of £1.5m (2023: £4.5m).
17. Financial instruments
The carrying value of the Company’s financial assets and financial liabilities is shown below:
Note
2024
£m
2023
£m
Financial assets
Trade and other receivables excluding prepayments
9
360.8
368.6
Cash and cash equivalents
11
24.9
17.3
385.7
385.9
Financial liabilities
Retail bonds
12
170.7
175.4
Trade and other payables excluding non-financial liabilities
13
6.4
7.9
177.1
183.3
The fair value of financial assets and financial liabilities is not materially different to their carrying value except for the retail bonds which
have a fair value of £167.1m (2023: £172.7m).
The following table analyses the Company’s financial liabilities into relevant maturity groupings. The maturities of the undiscounted cash
flows, including interest and principal, at the balance sheet date are based on the earliest date on which the Company is obliged to pay.
Within
one year
£m
Between one
and five years
£m
Over five years
£m
Total
£m
At 31 March 2024
Retail bonds
69.3
116.5
–
185.8
Trade and other payables
2.6
–
–
2.6
71.9
116.5
–
188.4
At 31 March 2023
Retail bonds
5.3
191.0
–
196.3
Trade and other payables
4.2
–
–
4.2
9.5
191.0
–
200.5
18. Contingent liabilities
In addition to the contingent liabilities as referred to in note 8.4 of the Group financial statements, the Company has given guarantees in
respect of the Group’s subsidiary undertakings’ borrowing facilities totalling £251.0m (2023: £224.6m). The Company also has contingent
liabilities in respect of both VAT and HM Revenue & Customs group payment arrangements of £0.6m (2023: £0.7m).
19. Related party transactions
A list of the Company’s subsidiaries is set out in note 8.1 of the Group financial statements. Transactions with subsidiaries relate to interest
on intercompany loans, management charges and dividends. Net interest income was £19.6m (2023: £19.9m), management charges were
£3.7m (2023: £5.2m) and dividends received were £4.6m (2023: £77.2m). Total outstanding balances are listed in notes 9 and 13.
Renewi plc Annual Report and Accounts 2024
255
Strategic report
Governance report
Financial statements
Other information
Other information
258
Sustainability disclosures
274
Shareholder information
275
Company information
276
Glossary
256 Renewi plc Annual Report and Accounts 2024
Circular material:
recycled gravel
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
257
Sustainability disclosures
Sustainability disclosures
The purpose of this section is to
share material ESG content as
requested by Renewi’s external
stakeholders. It contains
additional cuts of the data
discussed in the Annual Report,
methodology notes and relevant
contextual information, mirroring
the structure of the Annual
Report chapters where possible.
Disclosures are prepared
according to the GRI standards.
The full GRI content index can
be found on page 272.
The time-frame of the data
published follows the Renewi
financial year (1 April 2023
to 31 March 2024) and the
publication date of this Annual
Report is also the formal date
of the first external publication
of the data for that period.
If you have a question
regarding the preparation
of this information, please
reach out to info@renewi.com.
Sustainability disclosure contents:
258
1. Basis for preparation
258 2. Being a circular economy
change maker
263
3. Reduce our carbon emissions
266
4. Energy
268 5. Caring for our people
and ecosystems
272
6. External references
1. Basis for preparation
Materiality
In just one financial cycle, Renewi will be subject to CSRD-compliant disclosure, as one
of the first wave adopters in Europe. In anticipation of this reporting change, Renewi is
currently carrying out its first double materiality analysis. The results of this study will
inform the material topics for disclosure from FY25 onwards.
In the meantime, disclosures remain aligned with the topics selected in previous years:
please see the GRI content index for a full list of disclosed topics.
Sustainability reporting boundary
Any entities consolidated under Group financial control are subject to sustainability
reporting (see the list of consolidated entities on pages 234-236). The exception is GHG
reporting, which follows the rule for operational control rather than financial control.
Entities that are consolidated under financial control but not subject to operational
control are therefore addressed as investments in Scope 3 category 15. These are
as follows:
• Hydrovac V.O.F.
• Induserve V.O.F.
• Octopus V.O.F.
• Smink Boskalis Dolman V.O.F.
Limited Assurance audits, which ESG data was subject to (Recycling rate, LTIF and GHG
Scopes 1 and 2), work within the same boundaries as those described above. The CO2
Performance Ladder certification and audit works within the standard Renewi boundary
of Scope 1 and 2 reporting but excludes all UK entities.
Renewi’s approach to organisational structure changes:
• If Renewi sells or acquires sites/operations/divisions that result in a >5% impact on
the Scope 1 and 2 footprint at Group level, they should be excluded from/included in
the Company’s corporate footprint and the data should be restated for every affected
year up until the base year (FY22)
• If the impact is less than 5% at Group level, this does not trigger a restatement, only
a forward-going amendment
• All changes to the reporting boundary must be communicated annually as part of
data interpretation, providing a context for GHG increases and decreases that cannot
be attributable to GHG management practices
New sites and entities are added in the year of acquisition. Data should be retrieved from
these entities for the full year, including the months within the reported year before the
acquisition happened. Sites divested should be excluded from the total footprint in the
year of purchase. Sites closing should be accounted for in full until the date of closure.
2. Be a circular economy change maker
Waste generation and significant waste-related impacts
Waste generation and flows are a part of Renewi’s strategic considerations
(see a description of the Strategy on page 13).
The diagram on the following page explains how materials flow through the
Renewi ecosystem.
Please note: Due to the dynamic markets of commodities and energy, and therefore
fluctuating prices, the economic value retrieved from the below material streams is
typically not proportional to the value they bring to Renewi in a given day, month
or quarter.
258 Renewi plc Annual Report and Accounts 2024
Material flows
Contracted
tonnage
10,392
Disposal
667
Other recyclates and PMD
156
Treated wastewater
1,033
Mixed and non-
hazardous waste
2,416
Organic matter
583
Minerals
2,208
Electronics (WEEE)
66
Hazardous waste
262
Metals
259
Plastics
122
Paper
646
Glass
1,185
Wood
789
Energy
recovery
1,937
Recyclates
6,564
Waste-
derived fuels
1,224
Types of materials processed by Renewi and their destinations (kT)
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Other information
Renewi plc Annual Report and Accounts 2024
259
Alignment between the GRI waste-related metric and Renewi in-house approaches
Renewi considers its recycling rate formula – Recycling rate % = Tonnage of outgoing recyclates/Total waste handled – to be a legitimate
translation of GRI* that maintains conceptual coherence with the objective of GRI reporting for an end-of-life player. In this formula:
• Products and packaging reclaimed within the reporting period is replaced with Tonnage of outgoing recyclates; and
• Products sold within the reporting period is replaced with Total waste handled
Recycling rate
In FY24, Renewi’s recycling rate figure achieved a level of granularity and maturity that warranted limited assurance by a third party,
starting with FY23 data. For this reason, pre-FY23 figures will no longer be communicated for the recycling rate, related metrics for
carbon avoidance (see page 262) or carbon intensities (see page 265). In FY25, we will therefore be able to return to a three-year
perspective of this KPI.
Recycling rate, breakdown by the destination of materials processed and business division (‘000 tonnes)
Volumes
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY234
FY24
FY234
FY24
FY234
FY24
FY234
FY24
FY234
Total waste handled
10,392
11,231
4,602
5,191
2,129
2,102
1,566
1,700
2,096
2,239
Of which
Recycled 1
6,564
7,150
2,687
3,194
1,058
1,003
1,301
1,399
1,517
1,554
Of which wastewater
cleaning activities3
1,033
1,053
98
107
106
112
829
835
–
–
Recovered for energy production
from waste 2
3,161
3,393
1,707
1,791
898
954
60
87
497
561
Landfilled, incinerated with loss
of energy
667
688
207
206
174
144
204
214
82
124
Recycling rate
63.2%
63.7%
58.4%
61.5%
49.7%
47.7%
83.1%
82.3%
72.4%
69.4%
1. Recycling is material given a ‘second life’ for reprocessing into new goods/materials.
2. Recovery is waste used for energy production, such as the production of waste-derived fuels, bio-mass and similar.
3. From commercial activities only – not including process water discharged.
4. Restated metric following a review of our methodologies and limited assurance.
*
GRI original formula: % of reclaimed products and their packaging materials = Products and packaging reclaimed within the reporting period/products sold within the
reporting period, x100.
Sustainability disclosures continued
260 Renewi plc Annual Report and Accounts 2024
Carbon avoidance
Framework of disclosure on avoided emissions
In the disclosure of carbon avoidance figures, Renewi follows the Guidance on Avoided Emissions: Helping business drive innovations and
scale solutions toward Net Zero, published at the end of March 2023 by the World Business Council for Sustainable Development (WBCSD)
and its member companies, in collaboration with Carbone4 and its Net Zero Initiative. The below disclosure demonstrates Renewi’s
alignment with the guidance.
To understand the context of the Avoidance Emissions KPI within the Renewi strategy, please see Being a circular economy change maker
on page 36.
For the full text of the guidance please refer to the source: wbcsd.org/Imperatives/Climate-Action/News/Guidance-on-Avoided-Emissions
Description of the contribution
Renewi reports avoided emissions from the recycling and sale of recyclates, secondary raw materials, waste-derived fuels, renewable
electricity and low carbon footprint biogas and finally sorting/incineration of residual waste towards energy recovery by third parties.
Impact
Renewi reports its GHG emissions avoided on a year-on-year approach, at the scale of the company (see more on page 262).
Limitations
Our approach to defining and calculating Avoided Emissions has not yet been independently verified.
Eligibility Assessment
Gate 1
(Climate Action
Credibility)
Passed
Last year, Renewi committed to setting near-term science-based targets and communicated its GHG reduction
ambitions for Scope 1, 2 and 3 emissions for 2030 (FY31). These targets were developed with the expertise of an
environmental consulting agency and the latest Science Based Targets initiative (SBTi) recommendations and tools.
This year, we aim to get these goals approved by the SBTi.
• Since 2023, Renewi has reported its Scope 1, 2 and 3 emissions and will continue doing so every year through its
Annual Report and CDP Disclosure (Climate Change questionnaire)
• Additionally, Renewi has begun to gain external assurance of sustainability data. In 2023, the first limited assurance
exercise for Renewi’s Scope 1 and 2 carbon footprint was carried out and, moving forward, we will expand the
scope of external assurance to include more metrics
Gate 2
(Climate Science
Alignment)
Passed
Renewi confirms that the solution (see our contribution below) has mitigation potential according to the latest
climate science and recognised sources.
• By reviewing the list of claimed interventions with an identified link to mitigation options from the IPCC AR6
Working Group III Summary for Policymakers, we confirm that our solutions are listed with the following recognised
mitigation potential:
Solution
Recognised mitigation potential
Second-hand products
Enhanced recycling in industry
Production of secondary materials
(e.g. plastics, glass, aluminium, steel)
Circular material flows (e.g. enhanced recycling)
Production of biogas/biomethane from sources such as
animal manure, organic waste or landfills
Reduced CH4 and N2O emissions in agriculture
Biofuel from organic food waste
Biofuels for transport
A lower bake temperature
Energy efficiency in industry
• Our solutions are not directly applied to activities involving exploration, extraction, mining and/or production,
distribution and sales of fossil fuels, i.e. oil, natural gas and coal
Gate 3
(Contribution
Legitimacy)
Passed
Renewi’s solutions have a direct and significant decarbonising impact by providing low carbon footprint raw
materials and products to the market. By consuming our products, our customers lower their Scope 1 and 2 carbon
footprint (when solutions are energy sources) and their Scope 3 carbon footprint (when solutions are secondary
raw materials).
Strategic report
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
261
Acknowledgements
We comply with the three
eligibility gates
In summary, after assessing its solutions against the three eligibility gates, Renewi
confirms that all its solutions have passed the three eligibility gates and are entitled
to claim avoided emissions.
We report avoided emissions
separately from our GHG
inventory
Our total carbon footprint is disclosed in Reducing Our Carbon Emissions. Our avoided
emissions are reported in Being A Circular Economy Change Maker next to our recycling
rate. Renewi reports its Scope 3 carbon footprint in compliance with the GHG protocol.
Carbon avoidance from the availability of secondary raw materials to customers is not
taken into account in the reporting of Scope 3 GHG emissions.
We do not claim climate
neutrality through the use of
avoided emissions
Renewi does not use the word “neutrality” in the communication on the impact of its
total carbon avoidance. As per the guidance document mentioned above, Core Principle
3 is clear and followed by Renewi.
Core Principle 3: Separate reporting of inventory and avoided emissions.
‘‘Companies shall always separate Scope 1, 2 and 3 GHG emissions reporting from avoided
emissions in their external company reporting and shall not use avoided emissions to offset
GHG inventory emissions. As such, avoided emissions should also be kept separate from
offsetting claims and carbon credits.’’
We assessed potential negative
side-effects of our solution(s) in
terms of environmental trade-offs
and sustainability goals beyond
GHG impact
To identify and list limitations (potential negative side and rebound effects), Renewi will
undertake internal assessments and disclose the findings in future Annual Reports.
We assessed potential rebound
effects of our solutions
Carbon avoidance performance per division
Carbon avoidance has been recalculated for FY23 versus published numbers due to the adjustment of tonnages resulting from the
limited assurance audit of the recycling rate figures.
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
Volumes (kT CO2e avoided)
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Carbon avoidance from:
materials separated for
re-use/recycling
1,933
2,100
626
710
367
386
409
479
531
525
waste-derived fuels produced and sold
742
740
316
316
129
120
0
0
297
305
electricity production from landfill gas/
anaerobic digestion
31
37
14
19
11
11
3
3
3
4
waste-derived fuel used at ATM
173
186
173
186
actual emissions from incineration
(411)
(461)
(240)
(251)
(141)
(158)
(5)
(18)
(24)
(35)
Total carbon avoidance
2,468
2,601
715
794
366
358
580
650
807
799
Carbon avoidance per tonne of waste
handled (kg CO2e per tonne of waste handled)
237
232
155
153
172
170
370
382
385
357
Sustainability disclosures continued
262 Renewi plc Annual Report and Accounts 2024
Innovation
Innovative materials are understood as tonnages of materials for which recycling was possible thanks to innovation(s) by Renewi and/or
partners in:
a) products (new materials);
b) services (collection methods, business models); and/or
c) processes (sorting, separation).
The classification covers innovative solutions in the market (not only those new to Renewi). For context on innovation performance and its
role in the Renewi strategy, see pages 37-38.
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Innovative secondary materials
produced per year (tonnes)
361,796
325,990 147,821
125,840
41,099
20,222 141,079
163,238
31,797
16,690
3. Reduce our carbon emissions
Carbon footprint
GHG management system
Carbon footprint performance is managed according to a system recommended by CO2 Prestatieladder – a Dutch certification scheme
that scrutinises accounting, performance, communication, management and governance, based on key learnings from ISO quality norms.
Renewi, bar its UK operations, is certified under CO2 Prestatieladder level 4 (see Renewi’s profile on the SKAO website for details).
Third-party limited assurance Scope 1 and 2 emissions data has been issued for the years FY22, FY23 and FY24. The references to the
auditor’s statement can be found on Renewi corporate website: www.renewi.com/en/investors/investor-relations/reports-and-
presentations.
GHG methodology notes
This calculation follows the GHG Protocol’s Corporate Standard (Scope 1 and 2) and Corporate Value Chain (Scope 3) Standard.
The emissions calculation includes all types of greenhouse gases, to the best knowledge of the Company, expressed in CO2 equivalents.
Biogenic emissions are disclosed as a separate line item derived from the calculation for Scope 1. The base year for the calculation is FY22.
Emission factors used include predominantly DEFRA and IEA for fuel and electricity, direct-measured emissions or scientific research
papers for specific types of processes in process emissions. Data was prepared using DEFRA 2021 emission factors for process emissions,
and most recent factors for all other emissions, due to internal structure of reporting. From FY25 onwards the process emission factors will
be updated in line with the latest DEFRA tables as well. The calculation was based on GWP=100 years.
Renewi follows the operational control rule for its GHG calculations (please see page 258 for a detailed comparison of the financial
and operational control boundaries used by Renewi). Known exclusions are emissions from water management, refrigerants from air
conditioning units and fire events, as well as the fugitive emissions from MBT at our CFS and Maasvlakte sites. We are working internally
to improve the data capture abilities in order to capture them in the future calculations.
In FY24, a miscalculation in the base year was discovered, which triggered a revalidation of the limited assurance for the years FY22 and
FY23 and a change in the numbers reported. The revalidated FY22 and FY23 figures are presented below.
A detailed breakdown of the Scope 3 emissions by category can be found annually in Renewi’s CDP disclosure.
Strategic report
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Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
263
Renewi GHG footprint
FY24
FY23
FY22
Renewi
(incl. UK)
Renewi
(excl. UK)
UK only*
Renewi
(incl. UK)
Renewi
(excl. UK)
UK only*
Renewi
(incl. UK)
Renewi
(excl. UK)
UK only*
Scope 1 (kTCO2e)
535
454
81
557
473
84
580
488
92
Anthropogenic emissions
356
337
19
375
355
20
366
342
24
Process emissions
240
225
15
253
237
16
231
211
20
Fuel combustion
116
112
4
122
118
4
135
131
4
Of which fuels used on sites
(e.g. diesel, gas, other)
34
31
3
39
35
3
38
35
3
Of which fuels used in fleet
(e.g. diesel, petrol, Bio-LNG, other)
82
81
1
84
83
1
97
96
1
Biogenic emissions from processes
and fuel combustion
179
117
62
182
118
64
214
146
68
Scope 2 (kTCO2e)
Market-based
42
34
8
47
35
11
51
40
11
Location-based
44
37
7
45
39
6
53
46
7
SUM (Market-based)
577
488
90
604
508
95
631
528
102
SUM (Location-based)
579
491
88
602
512
90
633
534
99
Scope 3 (mTCO2e)**
Will be disclosed in CDP 2024
1.3
1.2
0.1
1.2
1.1
0.1
*
As per SECR regulation.
** Including categories: 1, 2, 3, 5, 6, 7 and 15.
Renewi’s GHG footprint by division
Renewi
(incl. UK) (*)
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
Scope 1 (kTCO2e)
535
557
580
158
162
182
74
76
91
214
226
206
89
91
100
Anthropogenic emissions
356
375
366
97
100
105
48
50
61
185
196
167
26
28
32
Process emissions
240
253
231
27
26
32
15
15
17
182
193
160
16
17
21
Fuel combustion
116
122
135
70
74
73
33
35
44
2
3
8
10
10
11
Of which fuels used
on sites (e.g. diesel,
gas, other)
34
39
38
16
19
7
7
7
14
2
3
8
9
9
10
Of which fuels used in
fleet (e.g. diesel, petrol,
bio-LNG, other)
82
84
97
55
54
66
26
27
29
0
0
0
1
1
1
Biogenic emissions from
processes and fuel
combustion
179
182
214
61
62
77
26
26
30
29
30
39
62
64
68
Scope 2 (kTCO2e)
Market-based
42
47
51
3
2
2
1
2
2
25
27
29
12
16
17
Location-based
44
45
53
12
13
15
2
2
2
18
19
24
12
11
13
SUM (market-based)
577
604
631
161
164
185
75
77
93
239
254
235
101
107
117
SUM (location-based)
579
602
633
170
175
197
76
78
93
232
245
230
101
103
113
Scope 3 (mTCO2e)**
Will be
disclosed in
CDP 2024
1.3
1.2
0.6
0.6
0.4
0.4
0.2
0.1
0.2
0.1
*
The small discrepancy between Renewi Total and the sum of the carbon footprint of the 4 divisions is coming from the carbon footprint from CGS (Central Group Services)
not disclosed in this table.
** Including categories: 1, 2, 3, 5, 6, 7 and 15.
Sustainability disclosures continued
264 Renewi plc Annual Report and Accounts 2024
Carbon movements
Movements of Renewi carbon footprint FY23 – FY24 year-on-year by change driver
Change in
emissions
(metric tons
CO2e)
Emissions
value
(percentage) Comment
Change in renewable
energy consumption
(4,661.00)
-0.8%
Smaller coverage of green certificates purchased (+154 tCO2e) was offset by the actual
reductions in total purchased energy (-4,815 tCO2e). We observed more sites with PV
commissioning, as well as doubled the provision of electricity from own sources, which
covered for the increase in total energy consumption
Other emissions
reduction activities
(219.00)
0.0%
Slow adoption of improved production fuel strategies (less diesel consumption - ATM), and
gradual reduction in natural gas consumption on site in favor of electricity
Divestments
–
0.0%
Acquisitions
–
0.0%
Mergers
–
0.0%
Change in output
(17,725.00)
-2.9%
A decrease in process emissions from ATM by 5% (-11,722 tCO2e) is proportional to the drop
of throughput in that period. Decrease of CHP activities across other sites (e.g. Amersfoort,
Corsicaweg, Wakefield) and reduced volume across the Group is responsible for further
reduction of -11,775 tCO2e. Additionally, we have observed an increase from composting,
driven by tonnages (+5,772 tCO2e) which minimized the effect of the above mentioned
reductions.
Change in
methodology
(3,486.00)
-0.6%
Reductions caused by the update of global emission factors were partially countered with
increases triggered by the calibration of process emission parameters (e.g. adjusting methane
content in the sample) and the improved coverage of supplier-specific factors (which turned
out not favourable). Overall, the methodology changes still yield a net decrease.
Change in boundary
(35.00)
0.0% Two sites that left our operational boundary had minimal impact on total emissions
Change in physical
operating conditions
65.00
0.0% Increased energy consumption due to the launch of SieveSand washing plant
Unidentified
–
0.0%
Other
–
0.0%
Total change vs FY23 (26,061.00)
-4.3%
Overall drop in emissions
Emissions intensity
Two emission intensity metrics underpin Renewi’s strategic objectives. They are further supported by operational KPIs. For a commentary
on the performance, see p. 40.
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Specialities*
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
Carbon intensity of collection
(kg CO2 per tonne of waste collected)
13.3
12.9
NA
23.4
19.4
NA
6.9
7.6
NA
13.1
13.0
NA
Share of Euro 6 trucks (%)
87%
77%
67%
92%
80%
71%
79%
69%
59%
94%
89%
95%
EV trucks (number)
12
4
2
12
4
2
0
0
0
0
0
0
*
Within Specialities, Municipal is the only entity relevant to this KPI. Coolrec, Maltha, and Mineralz & Water do not own a truck fleet and have therefore been excluded from
the table.
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
265
Carbon intensity of collection is calculated as fuel combusted by trucks (including bio and non-bio components) + electricity used in
fleet/load transported
Share of Euro 6 trucks = % Euro 6 trucks out of a total number of internal combustion engine (ICE) trucks
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
Carbon intensity of our
sites (kg CO2 per tonne of
waste collected)
7.8
8.1
–
–
–
–
–
–
–
–
–
–
–
–
–
Share of renewable energy
used on site (%)
46%
35%
33%
92%
92%
91%
63%
33%
42%
5%
4%
5% 25% 22% 14%
Hybrid or electric leased
personnel cars (%)
*
38%
39%
*
55%
50%
*
8%
2%
*
*
35%
*
* 33%
*
Data not provided by the supplier.
Carbon intensity of sites is calculated as fuel combusted on sites (including bio and non-bio components) + purchased electricity
used on site/total waste handled by Renewi
Share of renewable energy used on site = % of renewable electricity out of total electricity purchased for on-site use and produced
by Renewi to be consumed locally
Group Central Services not included in this table.
4. Energy
Energy production
Total electricity production of Renewi by origin and destination (MWh)
FY24
FY23
Total own electricity production
98,707
85,204
Total self-consumed
58,342
25,526
Total sold to the grid
40,365
59,679
From landfill:
26,651
30,057
Total self-consumed
3,170
3,695
Total sold to the grid
23,481
26,363
From anaerobic digestion:
45,314
54,469
Total self-consumed
28,803
21,230
Total sold to the grid
16,511
33,240
From solar energy:
26,742
678
Total self-consumed
26,369
601
Total sold to the grid
373
76
Additional energy production
Biogas – as feedstock for fuel (bio-LNG) (m3):
6,302,324
4,787,000
Total self-consumed
0
0
Total sold to the partners
6,302,324
4,787,000
Sustainability disclosures continued
266 Renewi plc Annual Report and Accounts 2024
Total electricity production of Renewi, by origin and division (MWh)
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Total own electricity production
98,707
85,204
53,387
37,957
27,655
28,243
10,422
11,213
7,242
7,791
Of which,
From landfill:
26,651
30,057
1,096
1,453
15,284
17,567
10,271
11,037
0
0
From anaerobic digestion:
45,314
54,469
26,684
36,504
11,982
10,676
0
0
6,648
7,289
From solar energy:
26,742
678
25,606
0
390
0
151
176
595
502
Energy purchase, usage, sale and total demand
Methodology notes:
• Renewi purchases fuel and electricity. No direct purchases of steam, heat or cooling have been observed.
• In the past, “fuel use” and “gas use” were reported separately. The previous format is no longer supported as we refer to all fuels as
“fuels”, regardless of whether they are gaseous or liquid.
• All fuels are assumed to have been used in the year of purchase, regardless of any fuel stock levels that might be available at sites.
• Tables have been prepared based on Scope 1 and 2 data collection and conversion to MWh, following the guidance and conversion
units of CDP.
• The below tables meet the Streamlined Energy & Carbon Reporting (SECR) requirements for UK.
Total energy balance by energy type
Megawatt hours (MWh)
FY24
Total
FY24
excl. UK
FY24
UK
FY23
Total
FY23
excl. UK
FY23
UK
Electricity purchased
168,141
135,262
32,879
174,953
142,245
32,708
Renewable*
45,394
45,394
0
44,814
44,814
0
Non-renewable
122,747
89,867
32,879
130,139
97,431
32,708
Fuel purchased
505,061
488,138
16,923
526,906
509,612
17,295
Fuel – renewable
14,888
14,734
154
14,855
14,690
166
Fuel – fossil-based
490,173
473,403
16,769
512,051
494,922
17,129
Total energy use from purchased sources
673,202
623,399
49,803
701,860
651,857
50,003
Usage from own energy production (+)**
58,342
51,710
6,632
25,526
18,276
7,249
Electricity resold (-)
903
903
0
927
927
0
Total energy demand
730,641
674,206
56,435
726,458
669,206
57,252
*
Including green energy certificates of origin.
** Consumption of self-produced heat is not included in this table but will be reported and disclosed as of next reporting cycle.
Total energy balance by usage location
Megawatt hours (MWh)
FY24
Total
FY24
excl. UK
FY24
UK
FY23
Total
FY23
excl. UK
FY23
UK
Energy demand of sites
392,570
339,765
52,805
386,577
333,092
53,484
Electricity purchased
165,618
132,738
32,879
172,673
139,965
32,708
Own electricity production
58,342
51,710
6,632
25,526
18,276
7,249
Fuels
168,611
155,317
13,294
188,378
174,851
13,527
Of which natural gas***
82,097
77,482
4,616
89,509
84,599
4,910
Energy demand for fleet (cars and trucks)
338,071
334,441
3,629
339,881
336,114
3,767
Electricity purchased
1,620
1,620
0
1,353
1,353
0
Fuels
336,450
332,821
3,629
338,528
334,761
3,767
Total energy demand
730,641
674,206
56,435
726,458
669,206
57,252
*** Disclosure in line with the UK SECR regulation.
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Other information
Renewi plc Annual Report and Accounts 2024
267
5. Care for our people and ecosystems
Care for our people and communities
Major fires and other environmental impacts
Number of major environmental incidents and fires per division
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Major environmental incidents
0
0
0
0
0
0
0
0
0
0
Major fires
2
3
0
2
0
0
0
1
2
0
Total
2
3
0
2
0
0
0
1
2
0
Major environmental incidents are any unintended events that result in loss to the environment with a “very high” risk score (see
Renewi risk matrix) and with an obligation to report to the authorities. This does NOT include fires as those are classified separately.
Major fires are any fires with a “very high” risk score according to the Renewi risk matrix and/or which have led to estimated potential
damage >100,000 euros and/or LTI amongst employees.
Community impacts
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Major environmental complaints
63
133
15
32
18
26
2
1
28
74
Major environmental complaints are those from neighbours or other stakeholders due to Renewi activities or emissions that are
SHE (safety, health, environment)-related, e.g. odour, litter, vermin, mud, dust, noise, etc. This metric was called “Substantiated
community comments received” in previous disclosures.
Water
Key water-related data
Renewi is gathering water footprint information from a selection of sites in each division where water consumption is by default high
due to the nature of processes on site or identified as subject to high water risk by the TCFD risk assessment exercise. Data has only
been provided for water sources relevant to a given site. Data that shows water discharge higher than water intake signifies the
recovery of water from wet recyclates or external contaminated wastewater from paid activities were received and treated on site.
Commercial Waste Netherlands
Wateringen
Nieuwegein
Amsterdam-Corsicaweg
Amsterdam-Kajuitweg
Volumes in m3
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY22
Total water consumption
26,142
26,142 44,278
8,391
7,896
10,459
76,163
75,513
71,608 11,236
10,357
17,153
From source:
Groundwater from wells,
boreholes
–
–
–
–
–
–
22,793
20,016
19,309
–
–
–
Municipal potable water
26,142
26,142
44,278
8,391
7,896
10,459
49,416
2,758
2,097 11,236
10,357
17,153
External wastewater
Total discharged water
26,142
26,142
44,278
8,391
7,896
10,459 271,823 307,493 267,421 35,574
17,675
20,616
Commercial Waste Belgium
Roeselare
Heudsen-Zolder
Ghent1
Evergem1
Volumes in m3
FY24
FY23
FY22
FY24
FY23
FY22
FY24
FY23
FY24
FY23
Total water consumption
59,804
21,032
15,530
6,422
9,999
4,529 19,114
39,113 22,462
36,593
From source:
Surface water
–
–
–
4,337
8,143
4,179
6,860
10,546
–
–
Municipal potable water
4,800
1,500
4,800
2,085
1,856
350 12,254
28,567
–
–
Groundwater from wells, boreholes
–
–
–
–
–
–
–
– 22,462
36,593
Total discharged water
187,560
183,923
43,777
6,422
6,320
3,243 94,463
98,370 23,092
–
1. Reporting started in FY23.
Sustainability disclosures continued
268 Renewi plc Annual Report and Accounts 2024
Mineralz & Water
ATM Moerdijk
Rotterdam-Maasvlaakte
Volumes in m3
FY24
FY23
FY22
FY24
FY23
FY22
Total water consumption
1,932,956
2,415,696
2,483,000
35,291
37,551
42,583
From source:
Surface water
1,838,358
2,338,320
2,413,000
–
–
–
Municipal potable water
94,598
77,376.09
70,000
35,291
37,551
42,583
Total discharged water
2,242,197
2,878,624
2,959,000
35,291
52,996
47,929
Specialities
Dordrecht (Coolrec)
Heijningen (Maltha)
Volumes in m3
FY24
FY23
FY22
FY24
FY23
FY22
Total water consumption
479,250
476,515
481,768
11,340
10,409
12,605
From source:
Surface water
477,840
475,200
480,480
–
–
–
Municipal potable water
1,410
1,315
1,288
11,340
10,409
12,605
Total discharged water
479,520
476,515
481,768
11,340
10,409
12,605
Delivering people home safe and well, every day
Renewi is implementing the ISRS (International Sustainability Rating System) on all sites as the risk-based management system for
occupational health and safety, which follows a set of ISO standards. The adoption was not prompted by any legal obligations. The ISRS
system covers all persons within Renewi sites and assets: permanent and non-permanent workers, subcontractors, neighbours, members
of the public, volunteers, etc.
Renewi follows the risk identification process as described in ISO 31000. This includes risk identification, quantification, mitigation and
continuous improvement. SHEQ directors for each division are charged with ensuring that the process is followed and risks are reviewed
within a four-year cycle.
The WorkSafe policy guarantees no disciplinary action and the right to stop work if an employee notices an unsafe situation. Every worker
may raise a safety concern via several channels (e.g. the app, website or reporting directly to their line manager). Activities that enhance
employees’ ability to spot unsafe situations are scheduled throughout the year. Any diversion from this policy is investigated by the Group
integrity committee.
Health and safety performance by division
Renewi
Commercial Waste
Netherlands
Commercial Waste
Belgium
Mineralz & Water
Specialities
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
Number of Total Recordable
Injuries (TRI)
258
311
116
119
102
117
3
5
37
42
Of which were:
fatalities
0
1
0
1
0
0
0
0
0
0
Total Time Injuries (LTI)
99
134
49
72
30
32
1
1
19
29
Medical Treatment
Cases (MTC)
102
90
32
27
53
52
1
2
16
9
Restricted Work Cases (RWC)
57
58
35
19
19
33
1
2
2
4
Lost time/Injuries rate (LTIF)
6.8
9.4
6.2
9.0
7.6
8.4
1.6
1.5
8.8
13.6
Healthy at work rate
94%
92%
–
–
–
–
–
–
–
–
Road traffic accidents are included. Commuting incidents and ill health outside Renewi’s sphere of influence and non-work-related
accidents are excluded. Permanent and non-permanent employees are registered and reported. FY23 data revisited due to audit.
Strategic report
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Other information
Renewi plc Annual Report and Accounts 2024
269
Fatality: A workplace accident that caused the death of a permanent or non-permanent employee.
LTI: A workplace accident that resulted in an injured person being absent for one working day or more.
MTC: A workplace accident with an injury which requires medical treatment by a medical specialist. The accident does not result in
absence or restricted work.
RWC: A workplace accident which prevents the injured person performing the full range of normally assigned duties but is able to
perform other duties at work
LTIF: (number LTI x1’000’000)/number of hours worked. Due to limited assurance being issued for LTIF data starting FY23, the prior
years’ numbers are no longer supported or communicated, therefore this KPI is shared over the past two years.
Healthy at work rate: % of healthy employees, based on our permanent workforce expressed as 1- (illness rate). Reliable data has
been collected since 1 June 2023 so no historical comparison is provided.
Make Renewi a rewarding, diverse and inclusive working environment
Employee demographic, diversity and equality
All statistics below cover permanent employees only, none of which is engaged on a zero-hours contract basis. Further improvements
to the quality of reporting on temporary staff are expected in the upcoming cycles. For more detailed information regarding the
diversity of the governance bodies please refer to the Governance Report on page 102.
Source: Permanent employees only, data collected in Workday since 1 July 2023, covering all geographies and divisions.
Reporting period: FY24 (as of the end of 31 March 2024).
Permanent employees of Renewi by gender1,2
Total
Female
Male
Other or
not disclosed
Number of employees (head count)
6,746
1,336
5,410
0
Number of employees (FTE)
6,465
1,187
5,278
0
1. As specified by employees themselves.
2. Excluding the Board and Interns.
Permanent employees of Renewi by country of employment
Total
Netherlands
Belgium
United
Kingdom
France
Portugal
Number of employees (head count)
6,746
3,808
2,219
583
100
36
Number of employees (FTE)
6,465
3,621
2,135
572
100
36
Details on gender pay equality can be found in Renewi’s Gender Pay Gap Report, covering our operations in the UK, Belgium and
the Netherlands. Please access the report, published 3 April 2024, via: www.renewi.com/en/investors/investor-relations/
reports-and-presentations
New employee hires and employee turnover
The below statistics cover hires and leavers from permanent positions only.
Total
Vacancies filled
887
Colleagues leaving the Company
910
Total turnover:
(23)
Total turnover: difference between hire and termination. This metric has been simplified as of FY24 and as such, the previous year’s
data is no longer supported.
Sustainability disclosures continued
270 Renewi plc Annual Report and Accounts 2024
Collective bargaining agreements
Renewi is committed, in accordance with local laws, to respect the rights of all employees to form and join trade unions, to bargain
collectively and to engage in peaceful assembly. Renewi operates in countries where labour rights are strongly represented in legislation.
For example, in the Netherlands, France and Belgium, it is compulsory for an enterprise to have a works council. In the Netherlands,
employees’ representatives are consulted a minimum of six weeks before the implementation of any significant operating changes and
their approval is conditional to implementing such changes. In the remaining jurisdictions, employees can rely on the Code of Conduct
to ensure that the right to association is similarly guaranteed.
In FY24, there have been no specific employee strikes against Renewi. All social disputes, whether local or otherwise, have been handled
and resolved locally through good social dialogue, which, with the exception of a limited number of work stoppages, have not led to a
formal strike or impact on daily activity. However, employees have been absent to participate in national trade union days of action aimed
against European or national government policy. This involves a total of about 40 man days for the entire Renewi population in Belgium.
These days were known in advance and had no impact on operations.
Employee engagement
This metric is expressed by the Employee Net Promoter Score (eNPS) from Pulse, Renewi’s periodical employee survey, which asks
employees the question: “Would you recommend Renewi as an employer?”. Typically, the Pulse survey is collected twice a year and
the annual score is an average of all responses in that year. On the percentage scale, the highest figure shows the most positive score.
The number of people who do not recommend is subtracted from the number who do.
Employee mood
This metric is used to monitor the overall mood of our permanent employees, expressed by the “mood” score from Pulse, Renewi’s
periodic employee survey. Employees are asked: “How do you feel at Renewi?”. Typically, the Pulse survey is collected twice a year and
the annual score is an average of all responses in that year. Responses are represented on a scale of 1 to 10, with the highest being the
most positive score.
FY24
FY23
Employee engagement
23
22
Employee mood
7.4
7.4
Learnings and trainings
Total #
Employee training
Management
training
Customized
activities
Colleagues participating in the integrity training
355
60
77
218
Colleagues participating in the Code of Conduct e-learning
856
Not distinguishing
Integrity training: an umbrella term for a range of training events covering potential situations where the risk of misconduct is heightened,
via eg. undermining by 3rd parties, corruption, etc. Apart from general training, content is often customised for the organisational unit
addressed. Figures show the numbers for permanent employees covered. Temporary employees are obliged by the Code of Conduct
to adhere to the same standards and are allowed to participate in the in-house training at the discretion of their manager.
Code of conduct training data based on the e-learning platform, relaunched in spring 2024 in three languages.
Integrity trainings are designed to be repeated within a 3-4 years cycle, hence it is not expected for the entire population of Renewi to
participate every year.
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Other information
Renewi plc Annual Report and Accounts 2024
271
6. External references
For references to the following regulatory requirements, please
see these pages of the Annual Report:
• UK Corporate Governance Code: pages 104-109
• UK SECR regulation: pages 41-43, 267
• UK Modern Slavery Code: pages 90, 49
6.1 GRI content index
Statement of use
Renewi plc has reported with
reference to GRI Standards
for the period 1 April 2023 to
31 March 2024 (FY24)
GRI standards version used 2021
Applicable GRI sector
standards
None
Universal disclosures
GRI standard
Page
GRI 2: General Disclosures 2021
The organisation and its reporting standards
2-1 Organisational details
275
2-2 Entities included in the organisation’s
sustainability reporting
234-236,
258
2-3 Reporting period, frequency and contact point
258
2-4 Restatements of information
36, 40,
51
2-5 External assurance
258, 263
Activities and workers
2-6 Activities, value chain and other
business relationships
2-15, 60
2-7 Employees
270
Governance
2-9 Governance structure and composition
100, 102
2-10 Nomination and selection of the highest
governance body
108,
125-127
2-11 Chair of the highest governance body
107
2-12 Role of the highest governance body in
overseeing the management of impacts
94-95
2-13 Delegation of responsibility for managing impacts
103,
107,
110-111
2-14 Role of the highest governance body in
sustainability reporting
119
2-16 Communication of critical concerns
123-124
2-18 Evaluation of the performance of the
highest governance body
108 L
2-19 Remuneration policies
128-137
2-20 Process to determine remuneration
137
2-21 Annual total compensation ratio
270
Sustainability disclosures continued
GRI standard
Page
Strategy, policies and engagement
2-22 Statement on sustainable development strategy
18-22,
23, 273
2-23 Policy commitments
49-50,
105 E
2-24 Embedding policy commitments
119-124
2-25 Processes to remediate negative impacts
48-49
2-26 Mechanisms for seeking advice and
raising concerns
48-49
2-27 Compliance with laws and regulations
73
2-29 Approach to stakeholder engagement
112-115
2-30 Collective bargaining agreements
271
Topical disclosures
GRI standard
Page
GRI 3: Material Topics 2021
3-1 Process to determine material topics
258
3-2 List of material topics
258
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed 165
201-2 Financial implications and other risks and
opportunities due to climate change
175
201-3 Defined benefit plan obligations and other
retirement plans
59,
226-231
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related
to corruption
124
205-2 Communication and training about anti-
corruption policies and procedures
271
GRI 207: Tax 2019
207-1 Approach to tax
55
207-2 Tax governance, control and risk management
55,
123-124
GRI 301: Materials 2016
301-1 Materials used by weight or volume
259
301-3 Reclaimed products and their
packaging materials
260
GRI 302: Energy 2016
302-1 Energy consumption within the organisation
267
GRI 303: Water and Effluents 2018
303-3 Water withdrawal
268-269
303-4 Water discharge
268-269
303-5 Water consumption
268-269
272 Renewi plc Annual Report and Accounts 2024
GRI standard
Page
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions
264
305-2 Energy indirect (Scope 2) GHG emissions
264
305-3 Other indirect (Scope 3) GHG emissions
264
305-4 GHG emissions intensity
265
305-5 Reduction of GHG emissions
265
GRI 306: Waste 2020
306-2 Management of significant waste-related impacts
259
306-3 Waste generated
34-39
306-4 Waste diverted from disposal
259
306-5 Waste directed to disposal
259
GRI 401: Employment 2016
401-1 New employee hires and employee turnover
270
GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety
management system
269
403-2 Hazard identification, risk assessment and
incident investigation
44-49,
117-118
6.2 UN Principles
As an advanced member of the UN Global Compact, Renewi is proud to do business in line with the 10 Guiding Principles.
The Ten Principles of the United Nations Global Compact are derived from: the Universal Declaration of Human Rights, the International
Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development
and the United Nations Convention Against Corruption.
Taking the reader to the relevant sections of this Annual Report, the table describes our actions to continually improve the four areas
addressed by the UN Global Compact and demonstrates how the Ten Principles are fully integrated into our business strategy, culture
and day-to-day-operations.
For details of Renewi’s Communication on Progress, updated annually, please see: Renewi PLC | UN Global Compact
Principle
Pages
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human
rights; and
49, 91
Principle 2: make sure that they are not complicit in human rights abuses.
113
Labour
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the
right to collective bargaining;
271
Principle 4: the elimination of all forms of forced and compulsory labour;
49, 113
Principle 5: the effective abolition of child labour; and
49
Principle 6: the elimination of discrimination in respect of employment and occupation.
46-48, 51,
110-111
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
48-49, 36-43, 78
Principle 8: undertake initiatives to promote greater environmental responsibility; and
34-43, 48-49
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
6-10
Anti-corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
49, 124, 271
GRI standard
Page
403-4 Worker participation, consultation and
communication on occupational health and safety
44-49
403-5 Worker training on occupational health and safety
44-49,
113
403-6 Promotion of worker health
48
403-7 Prevention and mitigation of occupational
health and safety impacts directly linked by
business relationships
36-49,
117-118
403-8 Workers covered by an occupational health and
safety management system
269
403-9 Work-related injuries
269
403-10 Work-related ill health
269
GRI 404: Training and Education 2016
404-2 Programmes for upgrading employee skills and
transition assistance
47-48
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees
126-127,
270
405-2 Ratio of basic salary and remuneration of women
to men
270
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
273
Shareholder information
Registrar services
Administrative enquiries concerning
shareholdings in the Company made via
the London Stock Exchange should be
directed to the Registrar, Computershare
Investor Services plc, The Pavilions,
Bridgwater Road, Bristol BS99 6ZZ.
Computershare can also be contacted
by telephone on +44 (0)370 707 1290.
Shareholders can manage their holding
online by registering at investorcentre.co.uk.
Queries in relation to shareholdings
through Euronext should be directed
to Renewi’s Euronext Listing and Paying
Agent, ABN AMRO Bank N.V. who can be
contacted at as.exchange.agency@nl.
abnamro.com.
Website
Shareholders are encouraged to visit
our website, which has a wealth of
information about Renewi.
There is a section designed specifically for
investors. It includes detailed coverage of
the Renewi share price, annual results,
performance charts, financial news and
investor relations’ videos. This Annual
Report can also be viewed on our website,
together with many other reports,
at renewi.com.
Holders
%
Shares held
%
Private shareholders
1,367
78.43%
666,831
0.83%
Corporate shareholders
376
21.57%
79,884,539
99.17%
Total
1,743
100.00%
80,551,370
100.00%
Size of shareholding
Holders
%
Shares held
%
1 – 5,000
1,481
84.97%
763,384
0.95%
5,001 – 25,000
101
5.79%
1,134,877
1.41%
25,001 – 50,000
38
2.18%
1,340,776
1.66%
50,001 – 100,000
28
1.61%
2,051,873
2.55%
100,001 – 250,000
41
2.35%
6,642,268
8.25%
250,001 – 500,000
18
1.03%
6,424,053
7.98%
over 500,000
36
2.07%
62,194,139
77.21%
Total
1,743
100.00%
80,551,370
100.00%
Dividends
Shareholders are strongly encouraged
to receive their cash dividends by direct
transfer as this ensures dividends are
credited promptly and efficiently.
Shareholders who do not currently have
their dividends paid directly to a bank or
building society account, and who wish
to do so, should complete a mandate
form obtainable from Computershare.
Overseas shareholders wishing to receive
their dividend payment in local currency
can now do so using Computershare’s
Global Payments Service.
Financial calendar
For the Financial calendar, please visit the
Company website: renewi.com
Sharegift
If shareholders have only a small number
of shares, the value of which makes it
uneconomical to sell, they may wish to
consider donating them to the charity
ShareGift (UK registered charity
no. 1052686).
Further information may be obtained
from its website at sharegift.org or
by calling +44 (0)20 7930 3737.
Electronic shareholder
communication
Shareholders may elect to receive future
shareholder documents and information
by email or via the Company’s website.
This is intended to help the environment
by reducing paper and transport, as
well as reducing administrative costs,
including printing and postage. Please
contact the Company Registrar for details.
Share fraud warning
Fraudsters use persuasive and high-
pressure tactics to lure investors into
scams. They may offer to sell shares that
turn out to be worthless or non-existent,
or to buy shares at an inflated price in
return for an upfront payment. While
high profits are promised, if you buy or
sell shares in this way you will probably
lose your money.
How to avoid fraud
Firms authorised by the Financial
Conduct Authority (FCA) in the UK will
rarely contact you out of the blue with
an offer to buy or sell your shares. If you
feel that the person contacting you is not
legitimate, note their name and the firm
they work for. You can check the Financial
Services Register at fca.org.uk to see if the
person and firm is authorised by the FCA.
If the firm does not have contact details
on the register or they are out of date, call
the FCA on 0800 111 6768 (from the UK) or
+44 20 7066 1000 (from abroad). You can
search the list of unauthorised firms to
avoid at fca.org.uk/scams. If you buy or
sell shares from an unauthorised firm,
you will not have access to the Financial
Ombudsman or Financial Services
Compensation Scheme. You should
always consider getting independent
financial advice before any transaction.
Report a scam
If you are approached by a fraudster,
please tell the FCA using the share fraud
reporting form at fca.org.uk/scams, where
you can find out more about investment
scams, or call the FCA Consumer Helpline.
If you have already paid money to share
fraudsters, you should contact Action
Fraud on +44 (0)300 123 2040.
Shareholder information
274 Renewi plc Annual Report and Accounts 2024
Company information
Renewi plc contact details
Registered Office
Renewi plc
16 Charlotte Square Edinburgh
EH2 4DF
Registered in Scotland No. SC077438
Corporate Head Office
Renewi plc
Corporate Head Office
Enigma
Wavendon Business Park
Wavendon
Milton Keynes
Buckinghamshire
MK17 8LX
UK
Company Secretary
company.secretary@renewi.com
Website
renewi.com
Principal offices
Renewi Commercial Waste Netherlands
Flight Forum 240
5657 DH Eindhoven
The Netherlands
Renewi Commercial Waste Belgium
Gerard Mercatorstraat 8 B-3920
Lommel
Belgium
Renewi Mineralz & Water
Vlasweg 12
4782 PW
Moerdijk
The Netherlands
Renewi Specialities
Renewi plc Corporate Head Office
Enigma
Wavendon Business Park
Wavendon
Milton Keynes
Buckinghamshire
MK17 8LX
UK
Corporate advisers
Independent Auditors
BDO LLP
Principal Bankers
ING Bank N.V.
BNP Paribas Fortis SA/NV
ABN AMRO Bank N.V.
KBC Bank NV
Coöperatieve Rabobank U.A.
Landesbank Baden-Württemberg
Royal Bank of Scotland plc
Banco Bilbao Vizcaya Argentaria, S.A.
Crédit Industriel et Commercial
Financial Advisers
Greenhill & Co International LLP
Goldman Sachs International
Corporate Brokers
Berenberg
Peel Hunt
Euronext Listing and Paying Agent
ABN AMRO Bank N.V.
Solicitors
Ashurst LLP
Dickson Minto W.S.
Remuneration Committee Advisers
Mercer Ltd
PR Advisers
FTI Consulting
Company information
Strategic report
Governance report
Financial statements
Other information
Renewi plc Annual Report and Accounts 2024
275
Glossary
ABS
Acrylonitrile butadiene styrene
ATM
Afvalstoffen Terminal Moerdijk, a brand in our
Mineralz & Water Division
BDR
Barnsley, Doncaster and Rotherham
Benelux
The economic union of Belgium, the Netherlands
and Luxembourg
Bio-LNG
Bio-liquefied natural gas
C&D
Construction and Demolition
CDP
Carbon Disclosure Project
CFS
A brand in our Mineralz & Water Division
CO2 e
Carbon dioxide equivalent
Core
net debt
Borrowings less cash from core facilities excluding
PPP non-recourse net debt and lease liabilities as
a result of IFRS 16
CSRD
Corporate Sustainability Reporting Directive
DAB
Deferred annual bonus
EBIT
Earnings before interest and tax
EBITDA
Earnings before interest, tax, depreciation
and amortisation
ELWA
East London Waste Authority
EPR
Extended Producer’s Responsibility Scheme
EPS
Earnings per share
ERM
Enterprise Risk Management
ESG
Environmental, social and governance
ETS
Emissions Trading Scheme
FCA
Financial Conduct Authority
GHG protocol Greenhouse Gas protocol
HIT
Hazards, incidents or threats
I&C
Industrial and commercial
ICE
Internal combustion engine
ICT
Information and communications technology
IFRS
International Financial Reporting Standards
*
PPP refers to a public private partnership project in the UK between (1) one or more local authorities and (2) a special purpose vehicle owned either solely by Renewi or
together with joint venture partners and financed with project finance debt, under which Renewi, as operator, performs some of the waste management functions of
the relevant local authorities. These include, where appropriate, those projects that also benefit from central government private finance initiative (PFI) credits.
IL&T
Human Environment and Transport Inspectorate
IPCC
Intergovernmental Panel on Climate Change
ISRS
International Sustainability Rating System
KPI
Key performance indicator
LLP
Limited liability partnerships
LTI
Lost time injuries
LTIP
Long-Term Incentive Plan
M&A
Mergers and acquisitions
MBT
Mechanical biological treatment
PFAS
Per- and polyfluoroalkyl substances
PFI
Private finance initiative
PHEV
Plug-in hybrid electric vehicle
PPP
Public private partnership*
RCF
Revolving credit facility
ROA
Return on operating assets
ROCE
Return on capital employed
SBTi
Science Base Target initiative
SDGs
UN Sustainable Development Goals
SECR
Streamlined Energy and Carbon Reporting
SHE
Safety, health and environment
SHEQ
Safety, health, environment and quality
SPV
Special purpose vehicle
TCFD
Task Force on Climate-related
Financial Disclosures
TGG
Thermally treated soil
TSR
Total shareholder return
VGG
Van Gansewinkel Groep B.V.
WEEE
Waste from electrical and electronic equipment
EV
Electric Vehicle
Glossary
276 Renewi plc Annual Report and Accounts 2024
This report is printed on paper certified in accordance with the
FSC® (Forest Stewardship Council®)and is recyclable and acid-free.
Pureprint Ltd is FSC certified and ISO 14001 certified showing that
it is committed to all round excellence and improving
environmental performance is an important part of this strategy.
Pureprint Ltd aims to reduce at source the effect its operations
have on the environment and is committed to continual
improvement, prevention of pollution and compliance with any
legislation or industry standards.
Pureprint Ltd is a Carbon / Neutral® Printing Company.
Consultancy and design by Black Sun Global
www.blacksun-global.com