Inchcape accelerated its environmental, social, and governance (ESG) performance in 2025, delivering measurable progress in emissions reduction, renewable energy adoption, workforce engagement, diversity, community impact, and responsible governance.
Under the leadership of Rajvi Kothari, Group General Counsel & Chief Sustainability Officer, the company continued integrating sustainability priorities across its global operations while advancing long-term climate and social commitments.
“Sustainability is embedded in how we create value for our business and stakeholders, it is integral to how we deliver our Accelerate+ strategy and plays an important role in supporting Inchcape to navigate industry transformation,” Duncan Tait, Group CEO of Inchcape, said.
Inchcape, the global automotive distributor, reported annual revenue of £9.1 billion in 2025.
“We have made excellent progress this year on our Scope 1 and 2 emission reductions. Scope 3 continues to be one of our biggest challenges – and our biggest opportunity to make impact,” Rajvi Kothari, Group General Counsel & Chief Sustainability Officer, said.
Inchcape Nears 2030 Climate Target with 43% Emissions Reduction
Climate action remained a central focus of Inchcape’s sustainability strategy during 2025. The company achieved a 43.0 percent reduction in Scope 1 and Scope 2 greenhouse gas emissions compared with its 2019 baseline, bringing it within reach of its 2030 target of a 46.0 percent reduction, according to the Inchcape Sustainability Report 2025.
Operational emissions declined by 9.9 percent during the reporting year alone, reflecting continued investments in energy efficiency, operational improvements, and low-carbon technologies. The achievement highlights the effectiveness of the company’s climate strategy and reinforces its commitment to achieving Net Zero emissions across direct operations by 2040.
More Than 1,500 Solar Panels Support Renewable Energy Expansion
Renewable energy continued to play an important role in Inchcape’s decarbonization efforts. During 2025, the company operated more than 1,500 solar panels across its global facilities, generating clean electricity and reducing dependence on conventional power sources.
These renewable energy installations prevent approximately 999 tonnes of carbon emissions annually across 70 operational sites. The company further expanded solar deployment across Latin America, with systems installed at six branches in Chile and seven branches in Peru.
Inchcape plans to continue growing its renewable energy portfolio, with projects scheduled for completion by 2026 expected to generate an additional 2,800 MWh of clean electricity annually. These investments will further strengthen the company’s renewable energy capacity and support long-term emissions reduction goals.
Energy Efficiency Programs Improve Operational Performance
Alongside renewable energy investments, Inchcape expanded its energy management capabilities to improve operational efficiency and reduce environmental impact.
Advanced real-time sub-metering systems now monitor 70.0 percent of total electricity consumption across the company’s mature distribution markets. The enhanced visibility into energy usage enables facilities to identify inefficiencies, optimize consumption patterns, and implement targeted improvement measures.
The company’s commitment to energy efficiency was also recognized through ISO 50001 Energy Management Certification at both the Quilicura Headquarters and Lo Boza Distribution Centre. These certifications confirm compliance with internationally recognized standards for energy management and continuous improvement.
Employee Engagement Reaches 81% as Diversity Initiatives Advance
People and culture remained key pillars of Inchcape’s sustainability agenda. The company reported an 81.0 percent colleague engagement favorability score during 2025, representing a 4.0 percent improvement compared with the previous year.
The increase reflects ongoing efforts to strengthen employee wellbeing, professional development, workplace culture, and organizational inclusivity. A highly engaged workforce contributes to stronger business performance, innovation, and long-term resilience.
Gender diversity also continued to progress. Women represented 26.0 percent of senior leadership positions globally during the year. Inchcape remains focused on achieving its target of 34.0 percent female representation in senior leadership roles by 2030 through leadership development programs, talent pipelines, and inclusive recruitment initiatives.
Road Safety Programs Expand Across 10 Global Markets
Inchcape strengthened its community impact efforts through the expansion of road safety initiatives, an important focus area given its role in the global automotive industry.
Since 2023, the company has doubled the geographical reach of its road safety programs, extending activities into 10 international markets. These programs aim to improve awareness, encourage responsible driving behavior, and contribute to safer transportation environments within local communities.
The broader reach demonstrates Inchcape’s commitment to delivering positive social impact beyond its core business operations while addressing an important public safety issue.
AI Governance Framework Achieves Full Global Deployment
Governance performance also advanced significantly during 2025 with the completion of Inchcape’s global AI governance framework rollout.
The framework achieved 100 percent implementation across the company’s operations, establishing consistent standards for ethical artificial intelligence deployment, risk management, accountability, transparency, and regulatory compliance.
As AI technologies become increasingly important across business operations, the framework provides stronger oversight and supports responsible decision-making while maintaining stakeholder trust and governance integrity.
Strong ESG Progress Positions Inchcape for Long-Term Growth
Inchcape’s 2025 sustainability performance demonstrates substantial progress across environmental, social, and governance priorities. The company reduced Scope 1 and Scope 2 emissions by 43.0 percent from 2019 levels, deployed more than 1,500 solar panels, avoided 999 tonnes of annual carbon emissions across 70 sites, and prepared projects capable of generating an additional 2,800 MWh of renewable electricity annually.
The company also improved employee engagement to 81.0 percent, increased senior leadership diversity to 26.0 percent female representation, expanded road safety initiatives across 10 markets, and achieved 100 percent implementation of its global AI governance framework. These achievements reinforce Inchcape’s progress toward its 2030 climate targets, Net Zero ambition for 2040, and broader ESG commitments while creating long-term value for stakeholders.
SHAFANA FAZAL
