Mitie Completes First Phase of Plan Zero Strategy After Cutting Operational Emissions

Mitie has completed the first phase of its Plan Zero decarbonization program, reporting that it has reached what the UK facilities management company describes as an “effectively Net Zero” position for Scope 1 and Scope 2 greenhouse gas emissions on a market-based reporting basis.

The milestone, detailed in Mitie’s 2026 ESG Report, concludes a five-year program launched in 2020 to reduce emissions from the company’s operations. The strategy focused particularly on electrifying Mitie’s large vehicle fleet, procuring renewable electricity, and improving the energy performance of its property portfolio.

Mitie said the achievement should not be interpreted as meeting the stricter technical definition of net-zero used by the Science Based Targets initiative (SBTi). Instead, the company’s market-based position combines direct emissions reductions, renewable electricity procurement, and verified carbon credits used against remaining emissions.

For Mitie’s legacy operations, excluding businesses acquired during the financial year, Scope 1 and Scope 2 emissions on a location-based basis fell 6% in FY26 to 18,992 metric tons of carbon dioxide equivalent (tCO2e). On a market-based basis, including verified carbon credits, net Scope 1 and Scope 2 emissions declined 34% year over year to 8,399 tCO2e.

The distinction between market-based and location-based accounting is significant. Location-based reporting reflects the average emissions intensity of the electricity grids where energy is consumed. Market-based reporting instead takes account of contractual electricity purchases and instruments such as renewable electricity certificates. Mitie procures 100% renewable electricity for sites where it controls energy purchasing and uses Renewable Energy Guarantees of Origin, or REGOs, for electricity consumed by its electric vehicle fleet.

Residual operational emissions remain, particularly from vehicles for which commercially or operationally suitable electric alternatives are not yet available. Mitie says it prioritizes direct reductions, but purchases verified carbon credits for hard-to-abate residual emissions. In FY26, the company applied 6,778 metric tons of verified emissions-reduction credits against its Scope 1 and Scope 2 footprint, compared with 4,066 metric tons in FY25.

Electric Fleet Remains Central to Emissions Reductions

Fleet electrification has been one of the main components of Plan Zero because company vehicles account for more than 90% of Mitie’s direct operational emissions.

By March 31, 2026, 76% of Mitie’s legacy fleet had been converted to electric vehicles, representing 6,406 EVs. The company said this was more than 2,400 vehicles above what it originally expected when Plan Zero was introduced in 2020.

However, Mitie’s acquisition of Marlowe in August 2025 added approximately 1,900 vehicles, many of them powered by fossil fuels. As a result, electric vehicles represented 67% of the enlarged group fleet at the end of FY26.

Mitie currently operates more than 9,800 vehicles in total. Its EV-first policy requires electric models to be selected for new leases where suitable technology and charging infrastructure are available. Diesel vehicles can still be used for applications such as trucks, 4x4 vehicles, and high-mileage operations where electric alternatives are not yet practical.

The impact of electrification is visible in the company’s emissions data. Emissions from fuel combustion in the UK fleet fell 13% during FY26, from 14,560 tCO2e to 12,603 tCO2e. At the same time, emissions associated with electricity consumption for EV charging increased as more vehicles were electrified, illustrating how transport electrification shifts energy demand from liquid fuels toward electricity.

Buildings and Energy Efficiency Also Contribute

Mitie has also expanded its building decarbonization program. The number of fully decarbonized buildings in its estate increased from 16 in FY25 to 28 in FY26.

Measures include replacing gas boilers with lower-carbon heat pumps, installing LED lighting, adding solar photovoltaic systems, and expanding battery storage. The company also maintains ISO 50001 energy management certification across the group.

Waste performance improved during the year, with Mitie’s recycling rate increasing from 59% to 66%. The company reported 395 metric tons of waste from occupied buildings and said its controlled sites have maintained zero waste to landfill since July 2022.

Scope 3 Becomes the Larger Challenge

Although Plan Zero Phase One concentrated heavily on operational emissions, Mitie’s data shows that indirect Scope 3 emissions now represent the much larger part of its carbon footprint.

Excluding FY26 acquisitions for like-for-like comparison, Scope 3 emissions decreased 3% to 245,781 tCO2e during the year. Supply chain emissions accounted for 185,859 tCO2e, while employee commuting and working from home contributed another 53,034 tCO2e.

Mitie estimates that supply chain and commuting emissions together account for around 90% of its overall footprint, making supplier engagement and value chain decarbonization central to the next stage of its strategy.

The company currently reports that 24% of suppliers by spend within the relevant categories have committed to a science-based target methodology, up seven percentage points from FY25. Its existing SBTi target calls for that proportion to reach 60% by FY27.

Plan Zero 2.0 Begins With a New Baseline

Mitie is now moving into Plan Zero 2.0, which will reflect both the expansion of the business and changes in climate accounting standards.

Following the Marlowe acquisition and other growth, the company has established a new FY26 full-year equivalent baseline of 325,300 tCO2e across Scope 1, Scope 2, and Scope 3 emissions for the enlarged group. Mitie intends to use this baseline for a new emissions-intensity pathway running to FY31 that is calibrated to support a 50% absolute emissions reduction by 2030.

The company also plans to resubmit its climate targets to the SBTi to reflect the expanded business while maintaining alignment with a 1.5°C pathway. Its broader long-term strategy includes reducing Scope 3 emissions and pursuing net-zero carbon emissions across those indirect emissions by 2035.

For companies pursuing similar net-zero programs, Mitie’s experience highlights both the potential and limitations of focusing first on operational emissions. Fleet electrification, renewable electricity, and building efficiency can substantially reduce Scope 1 and Scope 2 emissions, but acquisitions, business growth, and large supply chain footprints can significantly change the overall emissions picture.

The transition to Plan Zero 2.0 therefore shifts the focus from reducing emissions under Mitie’s direct control toward the more complex challenge of influencing suppliers, transportation networks, and other parts of its value chain.

Source: www.businessgreen.com