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Annual Report &
Accounts 2024
Strategic Report
the power of
amazing
The power of amazing lies in the energy and passion
of our incredible colleagues and the work they do
every day. At Intertek, we constantly strive to be
ever better. For over 130 years, we have been
pioneers, lighting the way with ingenious solutions
that touch every partof modern life. Our culture
empowers our people and creates sustainable
growth and value for all ourstakeholders.
Our caring and trusted people live by our Values,
workingwith passion and integrity to make a real
difference. Their energy and commitment ensure our
customers become ever more resilient, and that we all
thrive and work together to make the world better, safer
andmore sustainable.
VISIT: INTERTEK.COM/INVESTORS
We are pleased to share with
you our Annual Report & Accounts
in a unique, three-report format:
Report 1: Strategic Report
Where we discuss our growth
opportunities and strategic performance.
Report 2: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Report 3: Financial Report
Where we record our financial
activities, performance and position.
These separate, but connected reports, withtheir
interconnected themes and narratives, allow us to
present what we achieved in 2024 in a systemic,
end-to-end architecture. They have been designed to
make it easier for our stakeholders to fully understand
our business, how we bring quality, safety and
sustainability to life, what we offer our clients and
society, and the opportunities we have ahead of us.
the power of
amazing
1.01 The power of culture
1.02 ever better Intertek
1.03 ingenious thinking
1.04 caring people
1.05 building trust
1.06 thriving culture
1.07 Chief Executive Officer's letter
1.11 Our strategy
1.18 Our business model
1.19 Who we are
1.20 What we do
1.22 Where we operate
1.24 How we do it
1.26 How we create value
1.30 Key performance indicators
1.34 Financial review
1.40 Operating review
1.40 Consumer Products
1.45 Corporate Assurance
1.48 Health and Safety
1.51 Industry and Infrastructure
1.54 World of Energy
1.57 Principal risks and uncertainties
1.65 TCFD statement
1.74 Independent Assurance Report
on ESG Data
1.76 Group non-financial and sustainability
information statement
Contents
Intertek Group plc
Annual Report & Accounts 2024
1.01
3: Financial Report2: Sustainability Report1: Strategic Report1: Strategic Report
We're unleashing the power of amazing through an
ever better, ingenious, caring, trusted and thriving culture.
Ingenious
We constantly innovate to simplify complex
challenges and, through their pioneering
spirit and scientific expertise, our teams
develop ingenious innovations that exceed
our customers’ expectations, help bring
products and services to market quickly
and safely, and scale them up. Our precision
in execution offers clients unparalleled
end-to-end solutions and the Amazing
ATIC Advantage.
Caring
Caring is at the heart of our Purpose and
ensuring the safety and wellbeing of our
people is our top priority. We engage with
them every day, cultivating an inclusive
workplace where they can thrive and
perform at their best. Our diverse team of
experts form a vibrant mosaic, bringing the
power of different thinking and ideas to life.
We are committed to achieving net zero and
excelling in sustainability, using our thought
leadership in this crucial area to guide our
customers on their own journeys.
Trusted
True to our Values, we always behavewith
respect, integrity and responsibility, and
for us, 'Doing Business the Right Way' is
the only way. We operate as one team,
speaking with one voice, and acting with
precision, pace and passion. Our decisions
are grounded in facts, empirical data, and
ethical considerations, and we never let our
clients or each other down. This approach
means Intertek provides solutions that
create trust to enhance our customers'
brands, fostering loyalty among consumers
and confidence among stakeholders.
Ever Better
We lead the industry with our Science-
based Customer Excellence Advantage
and are committed to providing access
to the intelligence and data our colleagues
and customers need to create ever better
solutions. If there is a better way to do it,
we will find it. That’s how we're taking
Intertek to greater heights: through
ourpeople, processes and our data
advantage that gives us the deep insight
to look for new ideas that drive growth
for all stakeholders.
Thriving
Intertek is a high-performance organisation
with ambitious goals and we are focused on
being 10X better than the competition. Our
people are engaged, valued and empowered
to make the right decisions, and we thrive
by winning big together. We attract, inspire,
develop and retain the best talent, ensuring
we always have the right people in the right
place to deliver our Science-based Customer
Excellence Advantage.
READ MORE ABOUT THE POWER OF A
THRIVING CULTURE ON PAGE 1.06
READ MORE ABOUT THE POWER OF
EVER BETTER ON PAGE 1.02
READ MORE ABOUT THE POWER OF
CARING PEOPLE ON PAGE 1.04
READ MORE ABOUT THE POWER OF
INGENIOUS THINKING ON PAGE 1.03
READ MORE ABOUT THE POWER OF
BUILDING TRUST ON PAGE 1.05
the power of
culture
Intertek Group plc
Annual Report & Accounts 2024
1.02
3: Financial Report2: Sustainability Report1: Strategic Report
Ever better supply chain
sustainability
Intertek has partnered with Trace For Good, a Saas
platform aimed at enhancing traceability and
sustainability in complex supply chains, particularly
within the textile industry.
Combining Intertek’s Total Quality Assurance
expertise and Trace For Good’s technology to
provide reliable supply chain and product data, the
platform helps brands manage and communicate
the environmental and social impacts of their
products through a data-driven, risk-based quality
assurance approach.
The platform offers features such as supply
chainmapping, verification of claims, supplier risk
assessments, and support in eco-design and Life
Cycle Assessment. It also introduces a Digital
Product Passport, which provides comprehensive
visibility andtraceability of products, helping
businesses meetglobal sustainability standards and
offering consumers insights into each stage of the
product journey.
Our partnership is a testament to
Intertek’s commitment to providing
data-driven, Risk-based Quality Assurance,
empowering brands to achieve ever better
sustainability and transparency in their
supply chains.”
Handan Milewski
Vice President Global Softlines
Using data and insights to deliver
the expertise our customers need
Operating in an increasingly competitive
environment, companies are facing evolving market
demands and challenges, as well as greater pressure
from stakeholders. We provide timely access to
accurate data and insights that drive ever better
thinking, which is the key to staying ahead.
At Intertek, we never stop challenging ourselves
and always go back to the data. We are on a journey
of continuous improvement, powered by our
industry-leading processes and technology,
constantly learning and innovating to provide
groundbreaking solutions that help companies stay
competitive in a rapidly changing market. Our close
customer relationships and access to world-class
intelligence from our global network give us the
data and insights we need to continue on our good
to great journey, creating customer-focused Total
Quality Assurance solutions that make the world
better, safer and more sustainable.
Handan Milewski
Handan discusses how the data-driven
solutions we provide help brands
manage and communicate the
environmental and social impacts of
their products, to become ever better.
FIND MORE HERE
the power of
ever better
intertek
In action
Intertek Group plc
Annual Report & Accounts 2024
1.03
Intertek Group plc
Annual Report & Accounts 2024
1.03
1: Strategic Report
3: Financial Report2: Sustainability Report
1: Strategic Report
Delivering cutting-edge solutions
Ingenuity has always been a key part of our DNA.
True to our pioneering spirit, we continue to
innovate, developing the ingenious solutions that
help businesses overcome complex challenges
and stay ahead in an ever-evolving landscape.
Our experts combine technological innovation,
sustainability and deep expertise to deliver the
comprehensive and ingenious ATIC (Assurance,
Testing, Inspection and Certification) solutions
that help power new growth opportunities.
Byharnessing advanced technologies such
asartificial intelligence, data analytics and
automation, we help our customers bring
essential, life-improving products to market
while enabling them to meet regulatory
compliance faster andmore effectively.
ingenious
thinking
the power of
Supporting innovations
that save lives
Intertek's solutions for medical devices encompass a
broad range of instruments, apparatuses, machines,
implants, and other devices. These can vary widely
in complexity and purpose – everything from
surgical instruments and implantable devices to
health monitoring and fitness devices – and
connectivity isan increasing requirement.
While many portable medical devices incorporate
wireless technology, this can present risks for
life-supporting equipment and other applications.
Toensure compliance and prevent wireless
interference, we validate devices to electromagnetic
compatibility standards. Intertek has the expertise
needed to identify and understand the relevant
regulatory requirements, while managing the
testing required to meet these standards and
helpbring new products to market faster.
The industry is evolving at an
unprecedented pace, driven by smaller,
highly advanced technologies and greater
integration of connectivity in medical
devices. With the world becoming smarter
and more interconnected, Intertek’s
solutions are crucial in ensuring that
innovative, life-saving products reach
themarket safely.”
Clarissa Benfield
Director, Electrical (Medical, Laboratory,
and Life Safety and Security)
Clarissa Benfield
Clarissa explains how the
medical devices we validate and
test make an amazing difference
to people’s health and are vital
in saving lives.
FIND MORE HERE
In action
Intertek Group plc
Annual Report & Accounts 2024
1.04
3: Financial Report2: Sustainability Report1: Strategic Report
caring
people
Caring for people and the planet
Businesses today play a significant role
inshaping society and addressing global
challenges. As a purpose-led company,
Intertekis committed to Sustainability
Excellence in everything we do, through the
Total Sustainability Assurance solutions we
provide to our customers, and by creating an
inclusive, engaging and safe workplace for
allour colleagues.
By adopting sustainability practices at every
level of our organisation and working to reduce
our carbon emissions, we believe we are a real
force for good in the world, having a positive
impact on the planet and the communities
around us.
the power of
Creating a sustainable
future for our communities
At Intertek, we are proud to be a mosaic of diverse
and talented experts contributing different thinking
and solutions. Working together, our people truly
care about their work and its impact on their
customers, colleagues and the communities in
which they operate. They prioritise our customers
by helping them achieve their goals through our
ATIC solutions that ensure their products and
processes meet safety, quality and regulatory
standards.
We also champion sustainability by helping our
customers reduce their environmental footprint
through eco-certifications, carbon assessments,
and innovative solutions for greener practices. We
showcase our care for the environment by adopting
energy-efficient practices across our operations and
promoting resource conservation.
Sustainability is so important to all of
usat Intertek. It’s amazing to know
thatwe are creating positive impacts
through the work we do for our clients,
but also through our contributions to
ourcommunities.”
Jeyapal P
Zonal Head, South India Softlines
Jeyapal P
Jeyapal tells why community
support is so important to him
andhis colleagues and the deep
and positive impact it makes.
FIND MORE HERE
In action
1.05
Intertek Group plc
Annual Report & Accounts 2024
1: Strategic Report
3: Financial Report2: Sustainability Report
1: Strategic Report
Building strong brands
through Quality Assurance
Building trust is fundamental to a company
establishing itself as a reliable and ethical
brand in today’s complex and globalised
markets. It’s the way to foster long-term
relationships, which will lead to customer
loyalty and retention.
'Doing Business the Right Way' underpins
everything we do at Intertek, and through
this approach we deliver unrivalled Total
Quality Assurance with precision, pace and
passion, enabling our customers to make
their businesses stronger. By partnering
with Intertek, companies can confidently
demonstrate and communicate their
commitment to quality, safety and
sustainability, reinforcing trust and
loyaltywhile enhancing their brand.
building
trust
the power of
Global leader in testing,
inspection and certification
At Intertek, we are always at the forefront of the
safe execution and delivery of products to their
intended markets. With engineers and specialists
atmore than 1,000 locations in over 100 countries,
our customer offering is unparalleled. We cover
regulatory standards and requirements, certification
needs, performance and quality programmes, and
much more, building trust across a variety of
industries – from electrical and electronic products
to textiles and apparel.
For example, with child safety a primary concern
forparents, caregivers and communities, our
regulatory experts strive to facilitate the creation
of the safest environment possible for children by
enhancing the design, safety, and quality of juvenile
products such as toys and infant carriers.
Safe products are a vital ingredient in any
environment for children. From design and
safety to Quality Assurance, we work to
deliver consumer confidence and trust in
our customers’ products and protect the
overall sustainability of their brand.”
Bill YB Zhang
General Manager of Hardlines East China
Bill YB Zhang
Bill talks about the rigour of the
testing process on juvenile products
and why he feels that every detail is
so important to building trust with
customers and consumers.
FIND MORE HERE
In action
Intertek Group plc
Annual Report & Accounts 2024
1.06
3: Financial Report2: Sustainability Report1: Strategic Report
A winning culture,
driven by our people
At a time of rapid change, heightened
stakeholder expectations and increasing
regulatory pressures, the right culture is
essential to companies seeking growth. At
Intertek, our thriving culture is the foundation
of our success and powers our people to do
amazing things that drive growth and make the
world a better, safer and more sustainable place.
Initiatives like our 10X Leadership and 10X
Coaching programmes ensure that our people
atall levels have the opportunity to develop
and are engaged with the skills they need to
driveIntertek’s success. Their Science-based
Customer Excellence and pioneering spirit
enable them to address the evolving needs of
our customers and achieve our ambitious goals
to drive sustainable growth and value for all
ourstakeholders year after year.
thriving
culture
the power of a
Energising colleagues to
take Intertek to new heights
The safety, wellbeing and engagement of our
people is the key to our continued success. Our
People Strategy and 10X programmes ensure that
our passionate, agile and high-performance teams
are energised to take us to greater heights.
A career with Intertek means applying skills and
expertise to assuring the quality, safety and
sustainability of products and services used by
millions of people across the world. We have created
tools to support our people at every stage of their
journey with us – from onboarding to coaching, to
engaging colleagues and ensuring we are 10X
better in everything we do.
We are proud to be a mosaic of diverse and talented
experts with different thinking. Our continued
success flourishes in a culture where every
individual can feel safe, have a sense of belonging
and is empowered to achieve their full potential.
Amazing cultures don’t happen by chance,
and at Intertek I’ve seen firsthand how our
10X culture empowers our people to bring
their best selves to work every day. It’s this
environment – powered by 10X purpose-
based engagement – that fuels individual and
team excellence. When our people thrive, our
company thrives, driving sustainable growth
and reinforcing our position as a global
leader in Quality Assurance.”
Smriti Chand
Vice President Human Resources Asia Pacific
Smriti Chand
Smriti discusses the benefits of
our amazing 10X culture and the
development opportunities at
Intertek that mean we can all thrive,
creating sustainable growth and
value for all stakeholders.
FIND MORE HERE
In action
Intertek Group plc
Annual Report & Accounts 2024
1.07
3: Financial Report2: Sustainability Report1: Strategic Report
For more than 130 years, Intertek has
been a pioneer, leading the industry with
innovative solutions that have placed us
at the forefront of the world’s most
critical and exciting industries, providing
mission-critical ATIC (Assurance, Testing,
Inspection and Certification) solutions
toover 400,000 clients across every
industry and region, touching businesses
and lives worldwide.
Our amazing people are our key competitive advantage. Their
hard work, talent and ingenuity, alongside our high-performance
culture, has allowed us to consistently exceed the expectations
of our customers, enabling our clients everywhere to power
ahead safely and sustainably for the benefit of all.
Our good to great journey continues, with our AAA differentiated
growth strategy capitalising on our best in class operating
platform to seize the increase in demand for Risk-based Quality
Assurance as our clients progressively invest in and seek to
diversify their supply chains.
As we look ahead, we remain committed to creating sustainable
growth and value for all our stakeholders – our people,
customers, communities and shareholders. By strengthening
these relationships and delivering our mission-critical solutions,
we are leveraging the power of our unique culture and amazing
people to make a lasting impact on the industries and
communities we serve around the world.
Unleashing
the power
of amazing
Chief Executive Officer's letter
I would like to thank all my colleagues
for their unwavering support and
energy which has enabled us to
deliver another strong performance
in2024. The power of our amazing,
high-performance culture means
weare a force for good, creating
sustainable growth and superior
valuefor all our stakeholders.”
André Lacroix
Chief Executive Officer
Margin target
of 18.5%+
Investments in
high growth and
high margin
sectors
Strong free
cash flow
Disciplined
capital allocation
Significant
Value Growth
Opportunity
Superior
ROIC
Mid-single digit LFL
revenue growth
Intertek Group plc
Annual Report & Accounts 2024
1.08
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Strong results in 2024
I would like to recognise all my colleagues for their
unwavering support enabling us to deliver a strong 2024
performance in revenue, margin, EPS, cash and ROIC. Our
revenue grew by 6.6% at constant currency driven by a
LFL revenue growth of 6.3%, and the contribution of our
acquisitions. Leveraging our robust topline performance, we
have delivered an even stronger earnings performance with
an operating margin improvement of 100bps at constant
currency, and an EPS growth of 15.2% at constant currency.
Cash conversion at 121% was excellent, enabling us to
deliver our highest ever cash from operations of £789m and
resulting in our net financial debt declining by £111m to
£500m. We have a strong balance sheet giving us the ability
to invest in growth. ROIC increased by 190bps to 22.4%.
The acquisitions we have made over the last five years
in the high growth and high margin segments are adding
real value to the Intertek portfolio and have contributed
£207m to the 2024 revenue and delivered a margin of
25.1%. We continue to see a steady pipeline of acquisition
opportunities and we will remain disciplined to make sure
we augment the unique strengths of Intertek’s business
model with value accretive M&A. The Board's decision last
year to update our capital allocation policy by increasing
the dividend payout ratio to circa 65% reflects our
confidence in the long-term outlook for the business.
The value growth opportunity ahead is significant. Our
clients are increasing their focus on Risk-based Quality
Assurance to operate with higher standards on quality,
safety and sustainability in each part of their value chain,
triggering a higher demand for our ATIC solutions which
are powered by our Science-based Customer Excellence
Advantage. Over the last ten years, from 2014-2024,
we have delivered a CAGR of 4.9%, 6.2% and 6.2% for
revenue, adjusted operating profit and EPS respectively,
notwithstanding the impact of Covid. We unveiled our
Intertek AAA Differentiated Growth Strategy in May
Intertek high growth cash
compounder earnings model
The value growth opportunity ahead is significant and our
high-performance organisation, strong market position,
industry-leading portfolio and unrivalled customer relationships
mean we are ideally positioned to seize the growth in our
end-markets. Our proven high growth earnings cash compounder
earnings model will continue to deliver significant value for every
stakeholder every day, targeting mid-single digit LFL revenue
growth, margin accretion, and strong cash generation, while
pursuing disciplined cash-accretive investments in attractive
high growth and high margin sectors to deliver superior ROIC.
2023 to seize the higher demand for our industry-leading
solutions, leveraging the best in class operating platform
we have built, and targeting the areas where we have
opportunities to improve performance. As these results
demonstrate, the execution of our AAA Strategy is
on track and the growth opportunity ahead to create
superior value for all stakeholders is truly exciting.
Our high growth cash compounder earnings model is
getting stronger every year, which gives us the opportunity
to further reward our shareholders whilst still investing
organically and looking for value accretive inorganic
growth opportunities. Given the strength of our earnings
model, our performance track record, confidence in future
growth opportunities and the current level of leverage
compared to our target leverage levels of 1.3x – 1.8x net
financial debt to EBITDA, the Board announced an initial
£350m share buyback to be completed during the current
financial year. Subject to compelling organic and inorganic
investment opportunities to deploy capital, to leverage
remaining sustainably below the bottom of our target
range, and to any relevant external macroeconomic factors,
we expect our share buybacks to remain a core element
of our capital allocation policy and to recur regularly.
We are entering 2025 with confidence the Group will
deliver a robust performance with mid-single digit LFL
revenue growth at constant currency, margin progression
and a strong cash flow performance. We have delivered
a strong margin of 17.4% in 2024, effectively achieving
our medium-term target of 17.5%+ faster than expected,
and today we are announcing a new margin target of
18.5%+ in the medium term, capitalising on the revenue
growth acceleration we are seeing for our ATIC solutions,
our disciplined performance management and our
investments in high growth and high margin segments.
Intertek Group plc
Annual Report & Accounts 2024
1.09
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
• Levels of Hazard Observations
increased for the fifth consecutive
year, reflecting greater levels of
activity across our sites as well
as greater awareness and reporting
of health and safety overall.
• Since 2015, we have used the
Net Promoter Score (‘NPS’) process
to listen to our customers, enabling
us to improve our customer service
over the years consistently. In 2024,
we conducted on average 6,036
NPS interviews per month.
• We reduced our operational
market-based emissions by 16.7%
against 2023 and 47.2% against
our base year 2019.
• In 2024, we conducted a
preliminary Double Materiality
Assessment to help us meet
upcoming requirements.
• We recognise the importance of
employee engagement in driving
sustainable performance for all
stakeholders, and we measure
employee engagement against
our Intertek ATIC Engagement
Index. In 2024, we achieved a
new high score of 91 (2023: 87).
• Our voluntary permanent
employee turnover improved
to a five-year low rate of 11.2%
in 2024 (2023: 12.3%).
£3,393.2m
Revenue
2023: £3,328.7m
£3,378.8m
Like-for-like revenue
1
2023: £3,324.1m
£408.8m
Adjusted free cash flow
1, 2
2023: £378.4m
£590.1m
Adjusted operating profit
1,2
2023: £551.1m
£535.7m
Statutory operating profit
2023: £486.2m
22.4%
Return on Invested Capital
1
2023: 20.5%
156.5p
Dividend per share
3
2023: 111.7p
240.6p
Adjusted diluted EPS
1,2
2023: 223.0p
17.4%
Adjusted operating margin
1,2
2023: 16.6%
15.8%
Statutory operating margin
2023: 14.6%
212.7p
Statutory diluted EPS
2023: 183.4p
Robust revenue growth
• Revenue of £3,393m, up 6.6% at constant currency
and+1.9% at actual rates
• LFL growth of 6.3%
1
: Consumer Products 8.0%, Corporate
Assurance 7.8%, Health and Safety 7.9%, Industry and
Infrastructure 1.7%, and World of Energy 8.0%
Strong margin progression to 17.4%
• 100bps
1
increase in margin driven by mix, pricing,
operating leverage, cost control and productivity
• Faster delivery than expected of medium-term margin
target of 17.5%+ set in May 2023
• Adjusted operating profit growth of 13%
1
and +7.1%
atactual rates to £590m
+15.2% growth in adjusted diluted EPS at
constant currency and +7.9% at actual rates
Strong cash generation and financial position
• Daily cash discipline delivers cash conversion of 121%
andadjusted free cash flow to £409m, up 8.0%
2
• Net financial debt reduced to £500m
2
and net financial
debt/EBITDA improved to 0.7x
Disciplined capital allocation
• Investments in organic growth of £135m and acquisition
of Base Met Labs
• Value accretive M&A contributing 2024 revenue of
£207m and margin of 25.1%
4
• Excellent progress in ROIC to 22.4% up +250bps at
constant currency and +190bps at actual rates
Shareholder returns
• Full year dividend of 156.5p, +40.1% year on year in line
with dividend policy of circa 65% payout ratio
• Initial £350m share buyback announced demonstrating
Intertek’s highly cash generative earnings model
Robust growth outlook expected in 2025 and
medium-term margin target raised to 18.5%+
• Mid-single digit LFL revenue growth at constant currency,
margin progression and strong cash flow in 2025
• Medium-term margin target raised to 18.5%+, capitalising
on faster ATIC growth and proven processes
1. Definitions of the alternative performance measures, metrics andconstant rates can be found
on page 3.64 in Report 3.
2. Adjusted operating profit, adjusted operating profit margin, adjusted diluted earnings per share
(‘EPS’) and adjusted free cashflow are non-GAAP measures. Adjusted measures are stated
before Separately Disclosed Items, which are described in note 3 to the financial statements
on page 3.11 in Report 3. Reconciliations between statutory and adjusted measures, as well
as return on invested capital and cash conversion, are shown in the Financial review.
3. Dividend per share for 2024 based on the interim dividend paid of 53.9p (2023: 37.7p) plus
the proposed final dividend of 102.6p (2023: 74.0p).
4. Contribution of acquisitions made in the last five years.
Financial
highlights
• As a purpose-led organisation, we
are energised about making the
world a better place through the
partnerships we have built over
the years with all our stakeholders.
• The Science-based Customer
Excellence of our talented
colleagues gives us a unique
competitive advantage, enabling
organisations to power ahead
safely and sustainably.
• Our clients are increasing their
focus on Risk-based Quality
Assurance to operate with higher
standards across their value chain,
triggering a higher demand for our
ATIC solutions.
• Our AAA differentiated growth
strategy is accelerating growth for
all, benefitting from the increased
investments of our clients in Total
Quality Assurance.
• We will capitalise on our proven
high growth cash compounder
earnings model to unlock the
significant value growth
opportunity ahead, while
improving ourselves in those areas
where we can make an even
greater difference.
• We are well positioned to continue
to deliver sustainable growth and
value for all our stakeholders.
Strategic
highlights
Sustainability
highlights
Intertek Group plc
Annual Report & Accounts 2024
1.10
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
AAA people advantage
Our amazing people are the driving force behind Intertek’s
success, and their unwavering dedication is what underpins
our strong performance. I am deeply proud of their
commitment to our Purpose of bringing quality, safety and
sustainability to life, and I thank them for their outstanding
contributions to our clients, shareholders and society.
Our culture continues to energise and inspire our colleagues
to take Intertek to new heights. This powerful approach is
rooted in a passion for excellence and a desire to unlock the
full potential of our people. A key element of this is our 10X
Leadership programme, where since its beginning in 2019,
I have had the privilege of working with hundreds of our
current and future senior leaders. These immersive sessions
foster innovative thinking, enabling our leaders to build
high-performing teams and deliver ever better outcomes.
In addition, our 10X Coaching programme features Intertek
certified coaches who work closely with colleagues to support
their personal and professional growth. This initiative is central
to our culture of continuous development and has been
complemented by over 680,000 hours of training globally,
ensuring our colleagues are equipped to thrive in their roles.
To support new colleagues in their journey with us, we
introduced the 10X Onboarding programme, delivered via
Lucie, our global learning management system. This self-paced
experience immerses new team members in our Values, culture,
and operations, setting them up for success from day one.
These initiatives are integral to our AAA differentiated growth
strategy, which ensures we remain the most trusted Total
Quality Assurance partner for our customers, the employer
of choice for our people, and a leader in sustainability.
By embedding our powerful culture across the organisation,
we empower our amazing people to deliver exceptional
performance. Together, we are creating sustainable value
for all stakeholders, propelling Intertek to new heights.
AAA differentiated strategy for growth
We unveiled our Intertek AAA strategy in 2023 to accelerate
ourgrowth by seizing the high demand for our ATIC solutions,
leveraging the best in class operating platform we have built
andtargeting the areas where we have opportunities to do
evenbetter.
The value growth opportunity ahead is significant and
ourhigh-performance organisation, strong market position,
industry-leading portfolio and unrivalled customer relationships
mean we are ideally positioned to seize the growth opportunity
in our end-markets.
Our proven high growth cash compounder earnings model will
continue to deliver significant value for every stakeholder every
day, targeting mid-single digit LFL revenue growth, margin
accretion and strong cash generation, while pursuing disciplined
cash-accretive investments in attractive high growth and high
margin sectors.
As corporates increase their focus on Risk-based Quality
Assurance as part of efforts to make their businesses safer,
stronger and more sustainable, Intertek is uniquely well
positioned to deliver consistent mid-single digit LFL revenue
growth through the cycle driven by:
• the need to operate with safer and more resilient supply chains
• continued investments in new products and services
• a step-change in managing sustainability
• increased investment in oil and gas and renewables
• an increase in the number of new clients, both in developed
and emerging economies
At the same time, we continue to innovate and invest in our
high-quality growth portfolio which enables us to provide our
customers with cutting-edge ATIC solutions, ensuring we have
the right geographical exposure to the right structural growth
opportunities across our global markets.
Intertek Group plc
Annual Report & Accounts 2024
1.11
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
AAA means giving our clients an
'Amazing ATIC Advantage' to make
their businesses stronger.
We want to be the most trusted
TQA partner for our customers,
the employer of choice for our
employees, to demonstrate
Sustainability Excellence
everywhere in our community
anddeliver significant growth
andvalue for our shareholders.
Our strategic
priorities
Our strategic
enablers
Our AAA differentiated
growthstrategy
We will reach our goals by implementing our AAA
strategy to unlock the significant value growth
opportunity ahead. We pursue three strategic
priorities and three strategic enablers.
Embed our powerful 10X
cultureacross the organisation,
empowering our amazing people
to deliver an exceptional
performance and taking
Intertek to new heights.
Create sustainable growth
andvalue for all stakeholders,
leveraging the best in class
operating platform we have
built and returning excess
capital to our shareholders.
Science-based TQA
Customer Excellence
We invest in the skills we
needto deliver operational
excellence and superior
customer service.
+
Brand
Push & Pull
We lead the market with our
trusted brand, ATIC sales
power and our cut-through
digital marketing.
+
Winning
Innovations
Our innovative solutions
helpclients resolve their
quality, safety and
sustainability challenges.
10X Purpose-based
Engagement
Our amazing people are our key
competitive advantage, allowing
us to consistently exceed the
expectations of our customers.
+
Sustainability
Excellence
We lead by example, adopting
rigorous end-to-end TSA
standards and internal
compliance controls.
+
Margin Accretive
Investments
We target opportunities in
highgrowth and high margin
areas, ensuring sustainable
returns for our shareholders.
Our Amazing ATIC Advantage ‘AAA’ strategy
Being the best for
every stakeholder.
Allthetime.
Our goals
Our highly engaged, customer centric organisation is laser-focused to
take Intertek to greater heights, and the execution of our AAA
differentiated growth strategy is on track to create sustainable growth
and value for all stakeholders.
Customers
Be the most trusted
TQA partner
Sustainability
Excellence
everywhere
Employer of choice
every day
Sustainable growth
and value
Community
Shareholders
Employees
Continue to lead the industry
and invest in our global ATIC
capacity to ensure we have the
right geographical exposure to
the right structural growth
opportunities.
Intertek Group plc
Annual Report & Accounts 2024
1.12
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
This is a major area of focus for Intertek, given the expectation
that companies will have to place greater emphasis in the years
ahead on externally verified ESG disclosures to ensure they
are aligned with relevant standards and meet the growing
demands of their stakeholders for progress and transparency.
As regulatory momentum continues to accelerate, companies
will need to upgrade and reinvent how they manage their
sustainability agendas, further sharpening their focus on Risk-
based Quality Assurance. For example, the scope of ESG-related
regulation has increased by around 155% over thelast decade.
This growing regulatory momentum will drive rising demand
forour leading ATIC solutions, creating an increasingly
valuable growth opportunity for Intertek in the years ahead.
As well as helping other companies accelerate their sustainability
journeys, we continue to lead by example by pursuing our own
Sustainability Excellence agenda, adopting rigorous end-to-end
TSA standards that have resulted in our organisation being
recognised with the highest possible AAA rating from MSCI.
+
READ MORE IN REPORT 2 – SUSTAINABILITY REPORT
Sustainability Excellence
Sustainability is the movement of our time and is central to
everything we do at Intertek, anchored in our Purpose, our
Vision, our Values and our strategy.
In recent years, businesses around the world have had
to navigate heightened pressure from consumers and
regulators demanding faster progress and greater
transparency when it comes to sustainability reporting.
As a result, they have scaled up their efforts around
operational and corporate sustainability, re-evaluating their
energy usage, investing in renewables and reconsidering
how they disclose their non-financial performance.
This has fuelled growing demand for our global Total
Sustainability Assurance ('TSA') programme through
which we provide our clients with proven independent,
systemic and end-to-end assurance on all aspects of
theirsustainability strategies, activities and operations.
The TSA programme comprises three elements:
1
Intertek Operational Sustainability Solutions
2
Intertek ESG Assurance
3
Intertek Corporate Sustainability Certification
TSA is a global programme that leverages our footprint
in over 100countries and covers all industries. We have
built a team of sustainability experts in every major region,
who can help with both a global and local perspective.
Intertek Operational
Sustainability
Solutions
enablecompanies
to understand,
achieve and validate
their existing
and emerging
sustainability goals
for their products,
assets, facilities,
systems, processes
and the environment.
Intertek Corporate
Sustainability
Certification covers
topics from Quality
and Safety to the
Environment and
Communication &
Disclosure, enabling
clients to verify
theircorporate
sustainability
performance across
the ten most
essential corporate
sustainability
subject areas.
Providing
independent
verification of
sustainability
disclosures and
reporting, Intertek
ESG Assurance
enables companies to
identify areas of risk
and impact, define
their sustainability
strategies and
prepare ESGreports.
Total Sustainability Assurance
VISIT: INTERTEK.COM/SUSTAINABILITY
Read more about how we help our clients meet their
sustainability goals in Report 2, pages 2.27-2.37.
1 2 3
Intertek Group plc
Annual Report & Accounts 2024
1.13
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
The year also involved a number of other important
achievements, and we have made progress in
several areas:
In 2024, our voluntary
permanent employee
turnoverimproved to a
five-year low rate of
11.2%
2023: 12.3%
We recognise the importance of
employee engagement in driving
sustainable performance for all
stakeholders, and we measure
employee engagement against
our Intertek ATIC Engagement
Index. In 2024, we achieved a
new high score of
91
2023: 87
In 2024, we conducted a
preliminary Double Materiality
Assessment, to help us meet
upcoming regulations.
We are driving environmental
performance across our operations
through science-based reduction
targets to 2030. By optimising
energy use in our offices and
laboratories and transitioning to
cleaner energy sources, we reduced
our operational market-based
emissions
-16.7%
against 2023 and
- 47. 2%
against our base year 2019
Since 2015, we have used the Net
Promoter Score (‘NPS’) process to
listen to our customers, enabling us
to improve our customer service
over the years consistently. In 2024,
we conducted on average
6,036 NPS
interviews per month
Levels of Hazard Observations
increased for the fifth consecutive
year, reflecting greater levels of
activity across our sites as well
as greater awareness and reporting
of health and safety overall.
Investing in growth with
customer-led innovation
Intertek’s pioneering spirit has driven us to continuously
invest in our ATIC capability, developing and launching
powerful new solutions that meet our customers’ fast-
changing needs for Risk-based Quality Assurance.
We work constantly to anticipate where our customers are
taking their businesses, conducting on average 6,036 interviews
every month as part of our NPS research programme to access
world-class customer-intelligence from across our global
network. It’s this continuous stream of data that enables us to
build on our insights and develop ever better ATIC solutions.
Across multiple industries and geographies, our ingenious
innovations are helping our clients to power ahead safely.
For example, the launch of Intertek Methane Clear has
provided our customers in the global energy industry
with a dedicated suite of science-based solutions that
enable the accurate and independent measurement and
verification of methane emissions. Through technologies
ranging from direct measurement using aerial drones and
fixed sensors, to inspection and testing, and emissions
data management and analysis, Methane Clear allows
companies to better manage their emissions and build
resilience into every stage of their value chains.
Furthermore, the renewal of our historic Intertek Metoc brand has
helped our clients working at the forefront of the clean energy
industry to better reduce costs, manage risks, and accelerate
their journey towards net zero emissions. Through our team of
consultants, scientists and engineers, these customers are
ableto draw upon a wide range of expert technical knowledge
throughout the entire lifecycle of a project, meaning they can get
the guidance needed to ensure their designs and operations are
safe, reliable, and of the highest quality.
We have helped members of the honey industry to stay
ahead of the latest sustainability standards with HoneyTrace,
Total Quality Assurance for bee and honey products from
hive to jar. This has involved training producers in best bee
keeping practices, conducting material tests to establish the
quality, safety and authenticity of raw samples, and ensuring
that more honey products meet relevant regulations.
Intertek Softlines’ iCare has given our customers access to
an innovative one-stop Science-based Customer Excellence
portal that enables them to better manage and monitor their
testing processes from start to finish. By allowing users to
submit test requests, view reports and analytics online and
connect with our in-house teams of experts in just a few clicks,
the platform makes it easy for customers to keep track of
their testing projects in real time, producing textile products
that meet higher standards of transparency and traceability.
+
READ MORE ABOUT OUR WINNING INNOVATIONS
IN THE OPERATING REVIEW ON PAGE 1.40
Intertek Group plc
Annual Report & Accounts 2024
1.14
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Investing in our global ATIC
capabilityto unlock exciting
growthopportunities
At Intertek, we are focused on anticipating the evolving
needs of our clients. This has meant making disciplined
investments in our global ATIC capability to scale up our
portfolio and seize the exciting growth opportunities ahead.
As a result, our expanded global footprint and our capital-
light business model make us very agile, meaning we are able
to respond rapidly to demands for additional ATIC capability in
existing or new markets. As part of our accretive disciplined
capital allocation policy, our first priority is to support organic
growth through capital expenditure and investments in
working capital (target c.5% of revenue in capex). Since 2020,
we have invested £545m.
From the opening of our cutting-edge Battery Centre of
Excellence in Italy to the investments our Business Assurance
team in India has made in attractive, high ROI segments and
the industry-leading capability we’ve built in sustainable
aviation fuel in the Americas, we are investing to drive
sustainable growth and value for all our stakeholders.
We maintained our disciplined approach to acquisitions in
2024, strengthening our global ATIC capability through
strategic investments in attractive high margin, high growth
areas that enable us to deliver new services for our clients
and expand our local, regional and global coverage. The
acquisitions we have made over the last few years in the high
growth and high margin segments are already performing
well, having delivered a £207m contribution to Group revenue
and an impressive 25.1% margin.
Strategic investments in recent years include the acquisition
of SAI Global Assurance in May 2021, a highly complementary,
capital-light and high margin Quality Assurance business, that
augmented our existing strengths in industries like Food,
Quick Service Restaurants and Forestry and expands our
business in Australia, USA, Canada and China.
In July 2021, we acquired JLA Brasil Laboratório de Análises de
Alimentos S.A., further expanding our existing Food and Agri
Assurance capabilities into the highly attractive food-testing
market in Brazil, which remains one of the world’s largest
agri-food exporters.
In July 2022, we acquired Clean Energy Associates (‘CEA’), a
market-leading provider of Quality Assurance, supply chain
traceability and technical services to the fast-growing solar
energy sector. The CEA acquisition continues to empower the
expansion of our sustainability service offering in the Quality
Assurance market for the energy sector.
In April 2023, we announced the acquisition of Controle
Analítico, a leading provider of environmental analysis, with a
focus on water testing, based in Brazil. The acquisition was a
compelling strategic fit, expanding our footprint of leading
Foodand Agri TQA solutions in Brazil.
In August 2023, we announced the acquisition of US-based
PlayerLync, a leading provider of high-quality mobile-first
training and learning content to frontline workforces at some
ofthe world’s leading consumer brands, strengthening our
position as a leader in SaaS-based, technology-enabled People
Assurance services. We invested in our People Assurance
business with the acquisition of Alchemy/Wisetail in 2018, and
PlayerLync provides a compelling opportunity to further enhance
our differentiated TQA proposition and customer excellence
advantage in what is a fast-evolving landscape.
In March 2024, we announced the acquisition of Base
Metallurgical Laboratories ('Base Met Labs'), a leading provider
ofmetallurgical testing services for the Minerals sector based
inNorth America, reinforcing and expanding Intertek’s ATIC
offering in the Minerals industry. The acquisition of Base Met
Labs is highly complementary to our ATIC service offering,
establishing a Minerals testing footprint for Intertek on
theAmerican continent and creating attractive growth
opportunities with existing and new clients.
We will continue to look at acquisition opportunities in attractive
high margin and high growth areas to broaden our ATIC portfolio
of solutions with new services we can offer to our clients and to
further expand our regional coverage.
Building a TEK-based ATIC
advantage through digital
innovation
Investing in innovation, using
breakthrough new technologies to further
augment the strengths of our leading
ATIC solutions by providing our customers
with a superior digitised service.
For example, our technology-enabled digital Supply
Chain Traceability tools provide our customers with
product-level traceability and digital passports, allowing
them to manage relationships with suppliers and
mitigate risks across every level of their supply chains.
These include our strategic collaboration with Trace
For Good on a cutting-edge SaaS platform to enhance
traceability and sustainability in complex supply chains.
This helps brands to effectively manage and communicate
the environmental and social impacts of their products.
We have also upgraded our ToxClear solution to
include new, fully-digitised features like a product-
agnostic chemical risk assessment module, enabling
brands and suppliers to gain greater visibility of the
chemicals used at every stage of their value chains.
This means they can mitigate risks associated with
chemical hazards and operate more sustainably.
These winning innovations are key to ensuring that
our ATIC solutions remain industry-leading and that
we can continue to offer customers the 'TEK'-based
advantage that keeps them ahead of the competition.
In action
Intertek Group plc
Annual Report & Accounts 2024
1.15
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
2024 margin
25.1%
2024 operating profit
£52m
2024 revenue
£207m
Acquisitions in high growth and high margin sectors performing well
The six acquisitions made in the last five years contributed £207m to 2024 revenue, £52m to operating profit and delivered a margin of 25.1%.
Health and SafetyCorporate Assurance
Where: Br a zi l
When: July 2021 and April 2023
Where: Austr alia
When: May 2021
Where: USA
When: July 2022
Where: U SA
When: August 2023
Where: North America
When: March 2024
World of Energy People Assurance Minerals
Provider of assurance
services to solar
energymarkets
• Expands services offering
within the World of Energy
to provide Total Quality
Assurance solutions
for solar photovoltaic and
energy storage products
and installations.
• Highly complementary to
our existing solar energy
offerings in product testing
and certification and in-field
inspections.
Provider of mobile-first
training and learning content
to frontline workforces
• Strengthens our position
as a leader in SaaS-based,
technology-enabled People
Assurance services.
• Builds on earlier pioneering
acquisition of Alchemy/
Wisetail by adding robust
mobile content management,
communication, and offline
synchronisation capabilities.
Provider of metallurgical
testing services for the
Minerals sector
• Establishes a Minerals testing
footprint for Intertek on the
American continent.
• Creates attractive growth
opportunities with existing
and new clients.
• Helping the world’s leading
mining companies accelerate
into a sustainable future.
Providers of food and
environmental testing
inBrazil
• Entry to high growth testing
markets in an attractive
region.
• JLA’s scale and service
offering is complementary
to Intertek’s existing
Assurance-led proposition.
• Controle complements our
leading Food and Agri Total
Quality Assurance solutions
in Brazil by expanding our
presence and service offering
in the environmental testing
market.
Leading provider of
assuranceservices
• Increases presence in
complementary geographic
markets – Australia, US,
Canada, UK, China.
• Expands service capabilities
in attractive end-markets
including food, agriculture and
Quick Service Restaurants.
• Increases exposure to
growing global ATIC
addressable market.
®
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ANALITICOVIDEO
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Intertek Group plc
Annual Report & Accounts 2024
1.16
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Mid-single digit life for like (LFL) revenue growth target
In the medium to long term, we are targeting Group mid-single
digit LFL revenue growth at constant currency with the
following expectations by division:
• Low- to mid-single digit in Consumer Products
• High-single digit to double-digit in Corporate Assurance
• Mid- to high-single digit in Health and Safety
• Mid- to high-single digit in Industry and Infrastructure
• Low- to mid-single digit in the World of Energy
New medium-term margin target of 18.5%+
We have delivered a strong margin of 17.4% in 2024 broadly in
line with the 17.5%+ target we set in May 2023 and have set a
new margin target of 18.5%+ in the medium-term, capitalising
on the revenue growth acceleration we are seeing for our ATIC
solutions, our disciplined performance management and our
investments in high growth and high margin segments.
Margin accretive revenue growth is central to the way we deliver
value, and we are confident that over time we will deliver our
medium-term margin target of 18.5%+. Our confidence is based
on three simple reasons: we continue to expect mid-single digit
revenue growth over the medium-term and we will benefit
fromour operational leverage; we continue to drive efficiencies
in ourbusiness; and we continue to pursue higher margin
opportunities in our portfolio. Our revenue growth will also
drivesome operational leverage, while our pricing discipline
andour focus on mix will continue.
Share buyback
Our proven, highly cash-generative earnings model is at the
coreof our success, driven by margin accretive revenue
growth,strong cash generation, and disciplined investments
inhigh-growth and high-margin sectors.
With a clearly established capital allocation policy targeting a
leverage range of 1.3-1.8x net financial debt / EBITDA, our
strong performance has resulted in a current leverage of 0.7x
asof 31 December 2024. We will continue to target investing
approximately 5% of revenue annually in capex, distributing
circa65% of earnings as dividends, and pursuing selective M&A
to drive growth and margin in leading market positions or new
attractive areas.
Our high growth cash compounder earnings model is getting
stronger every year which gives us the opportunity to further
reward our shareholders whilst still investing organically and
looking for value accretive inorganic growth opportunities.
Giventhe strength of our earnings model, our performance
trackrecord, confidence in future growth opportunities and the
current level of leverage compared to our target leverage levels
of 1.3-1.8x net financial debt to EBITDA, the Board announced
an initial £350 million share buyback to be completed during
thecurrent financial year. Subject to compelling organic and
inorganic investment opportunities to deploy capital, to leverage
remaining sustainably below the bottom of our target range, and
to any relevant external macroeconomic factors, we expect our
share buybacks to remain a core element of our capital allocation
policy and to recur regularly.
Looking ahead
Through harnessing our powerful culture driven by our amazing
people and customer centric passion, we have continued to
deliver sustainable growth and value for all our stakeholders,
leaving us well-positioned to take our business to new heights
in2025.
The ingenuity and passion of our 45,000 talented colleagues
around the world is matched only by how deeply they care about
what they do, taking every step necessary to exceeding the
needs of our customers and earn and retain the trust of all our
stakeholders. It is their hard work and determination which has
enabled us to thrive, year after year, ensuring we can continue
tomake the world ever better.
With many businesses now scaling up their investments in
Risk-based Quality Assurance, the Science-based Customer
Excellence TQA Advantage and technical expertise possessed
by our colleagues is a strategic differentiator, allowing us to
successfully capitalise on rising demand for our ATIC solutions
created by the growing need for more resilient supply chains,
investments in new products and services, and a step-change
inhow companies manage sustainability.
For these reasons, we are confident that Intertek will deliver
another robust financial performance in 2025 with mid-single
digit LFL revenue growth, margin accretion and strong free cash
flow. It is this strong confidence in the future growth prospects
of the Group which mean we are able to announce the new
medium-term margin target of 18.5%+ and the £350m share
buyback programme.
Intertek Group plc
Annual Report & Accounts 2024
1.17
Chief Executive Officer's letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Our 'You'll Be Amazed' campaign
As an industry pioneer, on our good
to great journey, we have been
focused across all of our business
lines on making Intertek the global
icon for Total Quality Assurance.
The ‘You’ll Be Amazed’ campaign was launched
in 2023 to increase awareness of the sheer
scope of our ATIC solutions and our amazing
people’s expertise. The industry’s first ever
brand campaign that reaches out directly to
consumers, it highlights the mission-critical role
that Intertek plays in areas from pioneering cancer
research to ensuring the quality, safety and
sustainability of everything from food and wind
turbines to biofuels, toys, sweets and cosmetics.
By targeting a consumer audience, the
campaign aims to create awareness outside
a purely business-to-business environment.
This campaign celebrates Intertek's positive
impact on all aspects of modern life, by shining
a light on the incredible work of our colleagues
through social media content and stories.
By helping to make our brand a householdname
for quality, safety and sustainability around the
world, the campaign will place us more front-of-
mind for new decision makers as we become the
B2B2C brand icon for Total Quality Assurance.
The power of amazing
At Intertek, the power of amazing is the driving force
behind everything we do and forms the bedrock of our
unique culture. For over 130 years, we have led the
industry with a pioneering spirit, harnessing the ingenuity
and dedication of our extraordinary colleagues to deliver
trusted, mission-critical solutions that empower business
and communities worldwide in a changing world.
As we look to the future and the next stage of growth,
we are inspired by the limitless potential of our ever better
approach. Our AAA differentiated growth strategy positions
us to seize the opportunities of a rapidly evolving landscape,
meeting the rising demand for Risk-based Quality Assurance
and enabling our clients to thrive through enhanced safety,
quality and sustainability. By combining the power of our
ingenious solutions with the passion of our 45,000 talented
colleagues, we are continually raising the bar on excellence,
ensuring we remain the choice for business everywhere.
Our trusted and long-held customer relationships and high-
performance culture set us apart. From empowering our people
to grow and excel to supporting our clients with cutting-
edge innovations and solutions, we are building a thriving,
sustainable future together. As we unlock the full potential
of our Science-based Customer Excellence Advantage and
high growth cash compounder earnings model, we are well-
positioned to deliver superior value for all our stakeholders.
With the momentum of our thriving entrepreneurial culture
and the relentless commitment of our caring people, we are
ready to take our performance to even greater heights in 2025
and beyond. Together, we will achieve our ambitious goals and
ensure that Intertek continues to make the world a better,
safer and more sustainable place for generations to come.
That is the power of amazing.
André Lacroix
Chief Executive Officer
VISIT: INTERTEK.COM/AMAZED
VISIT: LINKEDIN.COM/COMPANY/INTERTEK
Intertek Group plc
Annual Report & Accounts 2024
1.18
Intertek Group plc
Annual Report & Accounts 2024
1.18
3: Financial Report2: Sustainability Report1: Strategic Report
Who we are
We are passionate about our Purpose and committedto
being ever better. Our amazing people are guided by science,
and sustainability is central toeverything we do.
What we do
Intertek’s unrivalled Total Quality Assurance is delivered
consistently with precision, pace and passion. Science-based
Customer Excellence is whatmakes us different.
Where we operate
We report revenue, operating profit and margin in five
divisions: Consumer Products, Corporate Assurance, Health
and Safety, Industry and Infrastructure, and World of Energy.
How we do it
The industry-leading solutions we provide are delivered
with an unwavering commitment to our customers and
by investing in our global network.
How we create value
We are a force for good in the world, and our solutions
create meaningful and sustainable long-term value for
a broad range of stakeholders.
How we apply our
passionate
culture, Science-
based expertise
and resources
to create sustainable
growth and value
Our business model
page 1.19
page 1.20
page 1.22
page 1.24
page 1.26
Intertek Group plc
Annual Report & Accounts 2024
1.19
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report
We are passionate about our Purpose
and 'Doing Business the Right Way'. We
strive to make the world a better, safer
and more sustainable place for all, now
and for future generations.
As the world changes, supply chains are rapidlygrowing in size
and complexity, bringing unprecedented levels of risk. As a
result, it can become more difficult for businesses to operate
safely and sustainably while delivering quality products and
services. In these challenging times, companies need a trusted
partner, which is why we provide our clients with a unique
risk-based approach to Quality Assurance. We call this Total
Quality Assurance ('TQA') – and only Intertek offers it.
Ever better
As a company, we are committed to becoming everbetter in
everything we do. That means morethan simply seeking ways
toconstantly improve our operations for enhanced efficiency
andeffectiveness. It means investing in our Science-based
Customer Excellence approach to provide superior services,
enabling our 400,000+ clients to become ever better too.
Our amazing people, culture and values
Our core strength is, and always will be, our people. We are
guided by science, and it’s the way our colleagues combine
passion and innovation with customer commitment that sets
usapart.
Our decentralised operating culture is built around strong values.
These values are inspirational and help us to drive sustainable
growth for all. They guide our behaviours every single day,
underpinning the way we work, guiding decision making and
connecting colleagues across the world.
Sustainability is central to everything we do and we
demonstrate our commitment and passion to help our clients
make a difference, as well as bettering ourselves, every day.
We are a global family
that values diversity.
We always do the right thing.
With precision, pace and passion.
We trust each other and
have fun winning together.
We own and shape our future.
We create sustainable
growth. For all.
Bringing quality, safety
and sustainability to life.
To be the world’s most trusted
partner for Quality Assurance.
Our Purpose
Our Vision
Our Values
Who we are
Intertek Group plc
Annual Report & Accounts 2024
1.20
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report
For more than 130 years, we’ve been
a pioneer, innovating to mitigate
risk and bring quality and safety to
organisations. From our beginnings,
certifying grain cargoes and then testing
and ensuring the safety of Thomas
Edison's products, we have become a
global force for good: today, we are an
industry leader committed to bringing
quality, safety and sustainability to
life with precision, pace and passion.
Our work covers everything from testing
toys to inspecting power stations, from
supporting excellence in electric mobility
to promoting circularity in tourism, from
certifying vaccines to providing end-
to-end Quality Assurance across every
aspect of an organisation’s operations
and supply chain. Our innovation-led, end-
to-end value proposition supports our
clients 24/7, providing a unique and fully
End-to-end ATIC services
Enabling our customers to identify and mitigate intrinsic risk in
their operations, supply and distribution chains and quality
management systems.
Assurance goes beyond testing, inspection and certification to look
at the underlying elements that make a company and its products
successful. Intertek’s assurance solutions provide total peace of
mind to our clients that their operating procedures, systems and
people are functioning properly to provide competitive advantage.
Our extensive auditing, performance benchmarking and supply chain
services provide insight into every aspect of a company's operations,
right across the value chain, enabling informed business decisions.
Our training services ensure workforce competencies are current
and relevant. Our experts around the globe bring their knowledge
to clients on assessing overall performance, the quality and
productivity of laboratories, identifying and mitigating risks,
streamlining manufacturing processes and supply chains, and
so much more.
Validating the specifications, value and safety of our customers’
raw materials, products and assets.
Independent third-party inspections help our clients around
the world protect their financial, branding and legal interests
throughout the entire supply chain. We offer inspection services
to manufacturers, retailers, traders, plant operators, governments
and other buyers and sellers of materials and products.
Inspections help minimise the risk of defective products by ensuring
they meet customer standards as well as industry and government
regulations. This serves to protect business interests, manage risk
and ensure quality products are manufactured and delivered to their
final destination at the correct specifications.
Our experienced inspectors help identify products and shipments
which may contain non-standard or non-compliant components and
materials. We also support the end-to-end life management of
facilities such as power plants and oil refineries.
Formally confirming that our customers’ products and
services meet all trusted external and internal standards.
Intertek maintains extensive global accreditations, and we are
recognised for our testing and certification services.
With both international and local proficiency, Intertek brings
the qualifications customers need to get products in front of the
right eyes. We offer certification programmes that achieve market
entry into a variety of global destinations, programmes for a more
eco-friendly environment, and programmes to verify social
accountability compliance for companies and their suppliers.
We help clients showcase and maintain products’ safety and
performance. Our leadership and expertise in regulatory standards
and certifications keep clients ahead of changes and challenges,
and our knowledge of the process from sourcing to market
position creates efficient, cost-effective solutions that meet best
industry practices.
Evaluating how our customers’ products and services
meet and exceed quality, safety, sustainability and
performance standards.
Intertek’s testing services support the quality, performance,
regulatory compliance, safety, benchmarking, evaluation,
validation, analysis, and other requirements for products,
components, raw materials, sites, and facilities.
Our field and in-house laboratory testing services provide the
data our clients need to optimise the production process and
get products to market quickly and economically.
Our experts and global resources are equipped to meet testing,
timelines and product needs. As regulations change and
technology is created or innovated, our knowledge and industry
expertise ensure products and businesses are prepared to meet
evolving demands.
Assurance
(21% Group revenue)
Inspection
(25% Group revenue)
Certification
(8% Group revenue)
Testing
(46% Group revenue)
What we do
At Intertek, we bring our
clients the benefits of
our unique risk-based
assurance solution:
Total Quality Assurance.
integrated portfolio of ATIC (Assurance,
Testing, Inspection and Certification)
services in a way that delivers complete
peace of mind across all products,
services and operating systems.
But the ATIC solutions we offer go
beyond the quality and safety of a
corporation’s physical components,
products and assets. They go to the
heart of the reliability of their operating
processes and quality management. We
call this Total Quality Assurance because
it enables our clients to mitigate risk
at every stage of their operations.
In short, we help our clients operate
in safety and make their businesses
stronger, making the world
amazing – a better, safer and more
sustainable place for everybody.
Research &
development
Consumer
management
Distribution &
retail channels
Component
suppliers
Transportation
Manufacturing
Raw materials
sourcing
Intertek’s innovation-led,
end-to-end value proposition
helps organisations to mitigate
risk at every stage and operate
safely, effectively and with
complete peace of mind in a
complex world.
TQA value
proposition
Intertek Group plc
Annual Report & Accounts 2024
1.21
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Most trusted partner
forQualityAssurance
Our leading ATIC solutions are mission-critical for the world
to operate safely. To become the most trusted partner
for Quality Assurance, our Science-based TQA Experts
always work to deliver end-to-end quality, safety and
sustainability solutions that exceed customer expectations.
This clearly sets us apart, meaning our clients can rely on
us to always deliver rapid and accurate insight feedback.
Customer Promise
Total Quality Assurance expertise
deliveredconsistently with precision,
paceand passion, enabling our customers
topower ahead safely.
We underpin this commitment with
thousands of customer interviews every
month, ensuring we understand their
priorities and continuously invest in the
mission-critical innovation they need.
Intertek Group plc
Annual Report & Accounts 2024
1.22
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report
READ MORE ON PAGE 1.40
READ MORE ON PAGE 1.45
Consumer Products Corporate Assurance
Our Consumer Products division focuses
onthe ATIC solutions we offer to our clients
to develop and sell better, safer, and more
sustainable products.
Global Business Lines
• Softlines
• Hardlines
• Electrical & Connected World
• Government & Trade Services
Our Corporate Assurance division focuses on
the industry agnostic Assurance solutions we
offer to our clients to make their value chains
more sustainable and more resilient.
Global Business Lines
• Business Assurance
• Assuris
Structural growth drivers
• Sustainability
• Supply chain resilience
• Enterprise cyber security
• People Assurance
• Regulatory Assurance
Five divisions, one
focus – to drive
amazing growth in
high margin sectors.
To reflect the value creation drivers
identified in the Intertek AAA
differentiated growth strategy,
our segmental disclosures report
our revenue, operating profit and
margin infive divisions.
Where we operate
£958.8m £496.3m
£268.7m £117. 2m£957.4m £492.4m
28.0% 23.6%
Revenue
Adjusted operating profitAdjusted operating profit
Like-for-like revenueLike-for-like revenue
Adjusted operating marginAdjusted operating margin
Structural growth drivers
• Growth in brands, SKUs and e-commerce
• Regulation
• Sustainability
• Technology
• Growing middle classes
Revenue
Intertek Group plc
Annual Report & Accounts 2024
1.23
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READ MORE ON PAGE 1.51
READ MORE ON PAGE 1.48
READ MORE ON PAGE 1.54
World of Energy
£337. 2m £843.6m £757.3m
£46.0m £80.7m £7 7.5m£333.8m £837.9 m £757.3m
13.6% 9.6% 10.2%
RevenueRevenue Revenue
Adjusted operating profitAdjusted operating profit Adjusted operating profit
Like-for-like revenueLike-for-like revenue Like-for-like revenue
Adjusted operating marginAdjusted operating margin Adjusted operating margin
Our World of Energy division focuses on the
ATIC solutions we offer to our clients to develop
better and greener fuels as well as renewables.
Global Business Lines
• Caleb Brett
• Transportation Technologies
• Clean Energy Associates
Structural growth drivers
• Renewable energy
• Energy consumption
• Population growth/social mobility
• EV/Hybrid
• Greener fuels
Industry and Infrastructure
Our Industry and Infrastructure division
focuses on the ATIC solutions our clients need
to develop and build better, safer and greener
infrastructure.
Global Business Lines
• Industry Services
• Minerals
• Building & Construction
Structural growth drivers
• Energy consumption
• Energy transition
• Population growth
• Infrastructure investment
• Greener buildings
Health and Safety
Our Health and Safety division focuses on the
ATIC solutions we offer to our clients to make
sure we all enjoy a healthier and safer life.
Global Business Lines
• AgriWorld
• Food
• Chemicals & Pharma
Structural growth drivers
• Healthier foods
• Growing populations
• Sustainable food sourcing
• Regulations
• New molecules
Intertek Group plc
Annual Report & Accounts 2024
1.24
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3: Financial Report2: Sustainability Report
1: Strategic Report
As the world becomes more
complex and interconnected, our
customers face increased risks to
quality, safety and sustainability.
1,000+
Laboratories and offices
45,000
Employees
100+
Countries
100+
Languages
3,000
Auditors
150,000+
Audits
Our global network
How we do it
As the global leader in Risk-based Quality Assurance,
we are uniquely positioned to help customers gain an
advantage by mitigating risk. We enable them to grow
by building trusted relationships, listening to their needs,
developing insights and using our data science to create
amazing, innovative Total Quality Assurance solutions
that make the world better, safer and more sustainable.
But it’s not just what we do that makes us unique. The way
in which we do it and how we engage with our customers
also have a powerful positive impact. Our expertise is guided
by science and delivered with an unwavering commitment to
give our clients an Amazing ATIC Advantage. The interviews
we carry out every month through our Net Promoter Score
programme measure the percentage of customers likely to
recommend our services. This is an invaluable tool in helping us
get to know our customers, understand their evolving needs and
ensure we deliver an incredible service at every Intertek site.
Every one of our 45,000 employees in our global network,
based in more than 100 countries, works hard to understand
the challenges our customers face. Then, by working in
close partnership with one another, we can collectively
make the world better, safer and more sustainable for all.
Intertek Group plc
Annual Report & Accounts 2024
1.25
Intertek Group plc
Annual Report & Accounts 2024
1.25
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report 3: Financial Report2: Sustainability Report1: Strategic Report
Our science-based experts provide customers with innovative ATIC
solutions in our industry-focused Centres of Excellence
Strategically located near Detroit in the epicentre of the
automotive industry, our Electrification Centre of
Excellence in Plymouth, Michigan, offers some of the most
extensive testing capabilities in North America for electric
vehicle batteries and supply equipment. Through science-
based Total Quality Assurance solutions, this facility plays
acrucial role in supporting manufacturers in the transition
to greener transport.
Electrification Centre of Excellence
in Plymouth, US: supporting the
transition towards electric mobility
Our new 'Battery Xcellence Centre' in Mestre, Italy, features
the latest technologies for testing battery and energy
storage systems, along with unrivalled industry expertise.
With equipment including battery cyclers, climatic and
salt-spray chambers, anti-fire containers and an altitude
test chamber, the centre meets the testing needs for
transportation and storage safety, functional safety, and
performance for a wide range of cells and battery packs.
This state-of-the-art facility in Italy joins our global
network of specialist centres strategically located in key
markets including the USA, China, Taiwan, India, Hong Kong
and Europe.
Battery Xcellence Centre
Supporting sustainableenergy
solutionsworldwide
Minerals Global Centre
ofExcellence in Perth,
Western Australia
A technology and innovation centre
with afocus on automation and
sustainability to provide our Minerals
clients with faster, safer, higher
quality, and more efficient analytical
solutions. Located in Perth,
Australia, a key hub for the minerals
and mining industry, this state-of-
the-art lab gives our customers
access to trusted expertise across
the minerals supply chain.
Maison Centre of Excellence
in Florence, Italy
Based in Lastra a Signa, the heart of Italy's garment
manufacturing district, Intertek's Maison Centre of
Excellence isour innovative experiential space and
adjacent world-class lab where science meets luxury. The
centre brings together – virtually or face to face – our
industry experts, forward-thinking luxury and fashion
brands, industry leaders, academics and ahost of textile
industry participants to collaborate and take bold new
ideas and turn them into reality.
Electric Vehicle ('EV')
Centre of Excellence in
Milton Keynes, UK
Our EV Centre of Excellence
testingfacility in the UK supports
manufacturers to develop next-
generation electric propulsion
systems, fromhigh-speed motor
testing to full vehicle validation
capabilities. Our global network of
automotive testing facilities can
support manufacturers and
suppliers with a wide portfolio of
bespoke solutions and capabilities,
such as engine andhybrid testing,
EV fluids, and fuel, additive and
lubricant testing.
Investing in state-of-the-art operations
State-of-the-art Caleb
Brett laboratory in
O’ahu, Hawaii
Opened in 2024, Intertek Caleb
Brett's laboratory on the island of
O’ahu, Hawaii, underscores our
commitment to providing the most
comprehensive and reliable jet fuel
testing services available. The
state-of-the-art facility positions us
to meet the growing demand for
Quality Assurance in aviation fuels,
while supporting our clients’
commitments to safety and
environmental responsibility.
Intertek Group plc
Annual Report & Accounts 2024
1.26
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Our Purpose is to bring
quality, safety and
sustainability to life for
an ever better world.
Here, we explain how
we do this for our
stakeholders.
How we create value
People
We create amazing opportunities for our
45,000 people to thrive, always striving to
offer the best customer service to our clients.
We support 400,000+ clients with innovative
solutions that enable them to operate with
higher standards on quality, safety and
sustainability in each part of their value chain.
Why they are important to us
Our people are our most valuable asset and are critical to
our success. Customer centric and passionate about what
they do, they deliver sustainable value through unmatched
expertise and quality of work for our customers every day.
How we engage
We create a high-performance, growth-oriented, inclusive
and caring culture with clear, transparent communication
and regular recognition, in which each colleague has a
personal growth plan.
How they benefitted in 2024
• Champions engagement and team action planning
• 10X performance management approach, talent
development, recognition and growth planning
• 10X Leadership development events, 10X Coaching
and 10X Coaching certification programme
• Lucie Partners training platform, for non-employees
representing Intertek
• IGNITE programme to empower and inspire sales leaders
• Improved safety culture through iHazard
• MOSAIC workshops on diversity, equity and inclusion
• Kindness global wellbeing programme
• Extensive learning and development through Lucie,
our global learning management system
• Engaging employee communication channels
Why they are important to us
Our customers are at the centre of everything we do,
anddelivering the highest standards of customer service
isa crucial aspect of becoming the world’s most trusted
TQA partner.
How we engage
We continuously engage and build our relationships with
customers, and closely analyse our NPS data.
How they benefitted in 2024
• Communication, partnership and 24/7 support
• Refreshed intertek.com country sites to provide best
in class digital experience in many languages
• Fast development of innovative Risk-based Quality
Assurance solutions
• Training and webinars from all business lines, covering
allindustries
• Digital customer portals for improved efficiency,
productivityand visibility
• Digital directories providing our clients' customers with
access to product and supply chain information
Customers
Section 172 statement
In its discussions and decisions during the year, the Board
of Directors has acted in the way that it considers, in
good faith, would be most likely to promote the success
of the Group for the benefit of its members as a whole
(having regard to stakeholders and the matters set out in
sub-sections 172(1) (a)–(f) of the 2006 Companies Act).
Details of how the Board has engaged with
stakeholders and how it has had regard to their
interests is set out on page 2.72 in Report 2.
FOR MORE INFORMATION
SEE PAGE 2.27 IN REPORT 2
FOR MORE INFORMATION
SEE PAGE 2.13 IN REPORT 2
Intertek Group plc
Annual Report & Accounts 2024
1.27
Our business model Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Investors
Communities
Governments
and regulators
We operate a high growth cash compounder
earnings model with a proven track record of
sustainable value creation over the long term.
We support and enhance our communities
andthe environment across our global network
ofstate-of-the-art operations in more than
100countries.
Governments and regulators expect compliance
with all global, regional and local regulation,
responsible business practices and collaboration
on the transition to net zero.
Why they are important to us
Delivering for our investors drives our ongoing success,
enabling us to deliver for all stakeholders today and tomorrow.
How we engage
We engage with existing and potential investors and
sell-side analysts through regular trading updates, investor
conferences and roadshows throughout the year.
How they benefitted in 2024
• Stock exchange announcements, including financial
results
• Investor roadshows and participation in investor
conferences
• Engaging through meetings and calls
• Annual General Meeting
• Annual Report, ESG Reporting Index
• Shareholder information on intertek.com
• Enriched Investors section on intertek.com
Why they are important to us
Our businesses and people are part of the communities
in which we work and are dedicated to supporting
organisations and initiatives that improve the environment,
and the lives of local people. We are a force for good, close
to home, that makes the world amazing for everyone.
How we engage
Our businesses regularly engage with and contribute to our
communities, and many colleagues support local and
charitable causes that reflect the diversity of our
communities and people.
How they benefitted in 2024
• Support for and partnerships with charities andNGOs
• Focused activities to improve local communities
andenvironments
• BBEB.com platform to share impactful stories andinspire
positive change in the world
Why they are important to us
‘Doing Business the Right Way’ is part of who we are.
Asaresponsible business, we are dedicated to engaging
positively with governments and regulators to support
ourcommunities and comply with global, regional and
localregulations.
How we engage
We interact with trade associations and governmental
authorities to provide input into industry and regulatory
improvements in product safety, quality, sustainability
andriskassurance. Interactions with governments,
governmental authorities and regulators are reviewed
byour Group Legal &Risk functions to ensure we fully
comply with all laws andregulations.
How they benefitted in 2024
• Our businesses’ economic and tax contribution
togovernments and communities supports the basic
infrastructure of society
INTERTEK.COM/INVESTORS
FOR MORE INFORMATION
SEE PAGE 2.49 IN REPORT 2
FOR MORE INFORMATION
SEE PAGE 2.56 IN REPORT 2
Intertek Group plc
Annual Report & Accounts 2024
1.28
Our business model Continued
How we create value Continued
3: Financial Report2: Sustainability Report1: Strategic Report
The UN SDGs
Long-term impacts
We can achieve positive and lasting change
byconsidering our impacts, targeting our
response and collaborating across sectors
toscale positive contributions.
As a Total Quality Assurance provider, we are in a strong
positionto align with each of the United Nations Sustainable
Development Goals (‘UN SDGs’) through the internal activities
we carry out for our people, in our communities and for the
environment, as well as through the Total Sustainability
Assurance solutions we provide to our customers.
In 2024, we have continued to look at how the UN SDG targets
can be associated with individual goals and how our activities
can help achieve these targets. We continue to focus primarily
on the six SDGs most relevant to the Group.
READ MORE ABOUT OUR SUSTAINABILITY EXCELLENCE
APPROACH IN REPORT 2
Good Health and Wellbeing
To ensure healthy lives and promote
wellbeing for all at all ages, we have
developed programmes that support the
good health and wellbeing of the people
within our business as well as deliver
theseprogrammes for our customers
andcommunities.
Affordable and Clean Energy
Increasing our energy self-sufficiency
improves profitability and energy security.
We are assessing our operations for
energy and process efficiencies and
areinvesting in solar energy systems,
where appropriate, to enable energy
diversification. We are also working with
clients to deliver their renewable energy
products and services.
Quality Education
We are supporting the goal to ensure
inclusive and equitable quality education
and promote lifelong learning opportunities
for all, by building more relationships with
educational institutions and providing
opportunities for young people to engage
with our engineers and scientists. We
participate in programmes that ensure
equal access to all levels of education and
vocational training for the vulnerable,
including persons with disabilities,
Indigenous peoples and children in
vulnerable situations.
Decent Work and Economic Growth
Our daily operations provide employment
for 45,000 people across 100 countries.
We provide training and development
opportunities in safe, secure working
environments, graduate and apprentice
opportunities, programmes for young
people experiencing difficulties
securingemployment, offer equal
opportunities to all and value diversity
among our employees.
Gender Equality
Improving gender balance is a priority
forus. We continue to focus on gender
diversity by attracting, developing and
retaining more talented women across
the business. We have policies, procedures
and initiatives in place to support gender
diversity throughout Intertek.
Climate Action
Climate change is one of the greatest
threats facing society, but emissions
continue to rise. Reducing our own
greenhouse gas emissions is a priority for
us, as well as working with our customers
to ensure they are resilient to the impacts
that a changing climate might bring.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
1.29
Our business model Continued
How we create value Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Reducing our impact
Following the installation of a solar photovoltaic project
at our office in Bangkok, Thailand is now the ninth
country where we have installed a renewable energy
system at one or more sites.
The incredible power of diversity
In 2024, we continued to build on our MOSAIC programme,
to help everyone understand the incredible power of
diversity across our global workforce. MOSAIC has
becomean essential ongoing resource for the business.
Providing access
to STEM education
In India, we completed the first phase of a project
designed to give more than 40,000 young people in
rural Gurugram and Mumbai access to high-quality
STEM education.
READ MORE ON PAGE 2.53 IN REPORT 2
READ MORE ON PAGE 2.22 IN REPORT 2
READ MORE ON PAGE 2.04 IN REPORT 2
1. Revenue, adjusted operating profit and ROIC are recalculated using 2023 exchange
rates to form the basis for Executive Director remuneration, as described in more detail
on page 2.117 in Report 2.
2. Adjusted operating profit, adjusted operating margin, adjusted cash flow from
operations, adjusted free cash flow and adjusted diluted earnings per share are stated
before Separately Disclosed Items, which are described on page 3.11. There is no
difference between adjusted and statutory revenue.
3. Dividend per share is based on the interim dividend of 53.9p (2023: 37.7p) plus the
proposed final dividend of 102.6p (2023: 74.0p).
4. 2023 ROIC has been prepared using 2024 average exchange rates for adjusted
operating profit and adjusted tax, and year-end 2024 exchange rates for invested
capital. 2023 ROIC at actual rates was 20.5%
Intertek Group plc
Annual Report & Accounts 2024
1.30
3: Financial Report2: Sustainability Report1: Strategic Report
Strong 2024 performance
in revenue, margin, EPS,
cash and ROIC.
Disciplined performance management
focused on margin accretive revenue
growth, with strong cash conversion
and capital allocation to drive strong
returns on invested capital.
Key performance indicators
Financial
The Group uses a variety of key performance
indicators (‘KPIs’) to monitor performance and
measure the financial impact of the Group’s
strategy. Where applicable, KPIs are based on
adjusted measures in order to provide a
meaningful and consistent year-on-year
comparison. An explanation and reconciliation
of statutory to adjusted performance
measures is given on page 1.37. A glossary of
performance measures is provided on pages
3.64-3.66 in Report 3.
2023
2024 3,393
3,329
6.6%1.9%
2023
2024 590 536
551 486
13.0% 10.2%7.1%
2023
2024 240.6 212.7
223.0 183.4
15.2% 16.0%7.9%
2023
2024 3,379
3,324
6.3%1.6%
2023
2024 17.4 15.8
16.6 14.6
100bps 120bps80bps
2023
2024 156.5
111.7
40.1%
2023
2024 789 776
749 726
6.9%5.3%
2023
2024 22.4
20.5
190bps 250bps
2023
2024 408.8
378.4
8.0%
Key
Adjusted actual rates
Adjusted constant rates Statutory actual rates 2024 Adjusted 2023 Adjusted Statutory
Intertek Group plc
Annual Report & Accounts 2024
1.31
Key performance indicators Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Revenue
1
(£m)
Revenue growth measures how well
the Group is expanding its business
and includes currency impacts.
Operating profit
1,2
(£m)
Measures profitability of the Group
and includes currency impacts.
Diluted earnings per
share
2
(pence)
A key measure of value creation for the
Board and for shareholders.
Like-for-like revenue (£m)
Revenue growth, including acquisitions following
their 12-month anniversary of ownership and
excluding the historical contribution of any
business disposals/closures excluding
acquisitions and disposals.
Operating margin
1,2
(%)
Measures profitability as a proportion
of revenue.
Dividend per share
3
(pence)
Measures returns provided to shareholders.
Cash flow from
operations
2
(£m)
Shows the ability of the Group to
turn profit into cash.
Return on invested capital
at constant rates
1,4
(%)
Measures how effectively the Group
generates profit from its invested capital.
Adjusted free cash flow
2
(£m)
Measures the cash available to shareholders.
Intertek Group plc
Annual Report & Accounts 2024
1.32
Key performance indicators Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Non-financial
Health and safety Customer satisfaction
Environment
Operational emissions
Since the adoption of our near-term absolute emissions
reduction targets, we measure our environmental
performance against these. Operational emissions comprise
scope 1, scope 2 (market-based) and scope 3 (business
travel and employee commuting).
Voluntary permanent employee
turnover and employee engagement
Voluntary permanent leavers are employees who
choose to leave the Group themselves. This does
not include employees on a fixed-term contract.
Intertek ATIC Engagement Index – based on the
key drivers of sustainable value creation and which
measures engagement on a monthly basis in every
operation with the following metrics: Net Promoter Score,
customer retention, quality, voluntary permanent employee
turnover and Total Recordable Incident Rate.
Gender balance
Percentage of women in senior management roles
(Group Executive Committee and their direct reports).
Compliance training
Completion of annual compliance training
by eligible employees
1
(online or face to face,
when available) during the training window.
Why we measure it
We measure our carbon emissions to reduce our impact
onthe environment and increase operational efficiency.
Wetrack both location-based and market-based
scope2emissions.
Why we measure it
Ensuring employees are engaged is essential totalent
retention and we measure and monitor this closely at a
global and local level through ourvoluntary turnover rate.
Why we measure it
We promote diversity in all its forms, including gender, age,
sexual orientation and disability, as well as having an ethnic
and social make-up that reflects broader society. Achieving
better gender balance is a driver of progress.
Why we measure it
Our commitment to the highest standards of integrity and
professional ethics is embedded inthe Group’s culture
through the integrity principles set out in our Code of
Ethics. Every year, to support continuing understanding in
thisarea, our people are required to complete
ourcomprehensive training course.
Operational emissions (in tCO
2
e) Employee voluntary turnover and
Intertek ATIC Engagement index
Women in senior management (%) Training completion by eligible employees
1
(%)
Target
2030: reduce absolute scope 1, scope 2 (market-based)
andscope 3 (business travel and employee commuting)
by50% vs 2019 base line.
Target
We aim to keep our voluntary permanent turnover rate
below 15% and continue to target an Intertek ATIC
Engagement Index score of 90 or more.
Target
2025: we aim to increase the proportion of women in senior
leadership roles to 30%.
Target
We aim to achieve 100% completion of our annual
compliance training by eligible employees.
We measure our success by tracking both non-financial andfinancial key performance
indicators that reflect ourstrategic priorities. We continue to review the sustainability
areas that are most material and relevant to ourstakeholders and have set ourselves
targets in those areasthat are aligned to our corporate strategy.
Customer focus
Average number of Net Promoter Score ('NPS') interviews
carried out eachmonth.
Why we measure it
Customers are our priority. Since 2015, we haveused the
NPS process to listen to our customers. These insights
giveus a deep understanding of what our customers
needandwant, fuelling our innovations.
Average NPS interviews per month
Target
We will continue to aim to conduct at least
6,000 NPS interviews per month.
Total Recordable Incident Rate ('TRIR')
Recordable incidents include medical treatment incidents,
lost time incidents and fatalities per 200,000 hours worked.
Why we measure it
A reduction in incidents is an important measureof the
effectiveness of our safety culture. It also lowers rates
ofabsenteeism andcosts associated with work-related
injuries and illnesses.
Total Recordable Incident Rate
Target
TRIR of less than 0.5 per 200,000 hours worked.
2019 2020 2021 2022 2023 2024
50,000
0
100,000
150,000
200,000
250,000
300,000
2023
2022
2021
2020
2019
5,684
2024 6,036
5,463
5,862
XX
XX
2021 2022 2023 2024
0.2
0.3
0.4
0.5
0.6
0.7
0.8
FOR MORE INFORMATION, READ OUR BASIS OF REPORTING ESG DATA DOCUMENT AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Intertek Group plc
Annual Report & Accounts 2024
1.33
Key performance indicators Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Employees Compliance
Operational emissions
Since the adoption of our near-term absolute emissions
reduction targets, we measure our environmental
performance against these. Operational emissions comprise
scope 1, scope 2 (market-based) and scope 3 (business
travel and employee commuting).
Voluntary permanent employee
turnover and employee engagement
Voluntary permanent leavers are employees who
choose to leave the Group themselves. This does
not include employees on a fixed-term contract.
Intertek ATIC Engagement Index – based on the
key drivers of sustainable value creation and which
measures engagement on a monthly basis in every
operation with the following metrics: Net Promoter Score,
customer retention, quality, voluntary permanent employee
turnover and Total Recordable Incident Rate.
Gender balance
Percentage of women in senior management roles
(Group Executive Committee and their direct reports).
Compliance training
Completion of annual compliance training
by eligible employees
1
(online or face to face,
when available) during the training window.
Why we measure it
We measure our carbon emissions to reduce our impact
onthe environment and increase operational efficiency.
Wetrack both location-based and market-based
scope2emissions.
Why we measure it
Ensuring employees are engaged is essential totalent
retention and we measure and monitor this closely at a
global and local level through ourvoluntary turnover rate.
Why we measure it
We promote diversity in all its forms, including gender, age,
sexual orientation and disability, as well as having an ethnic
and social make-up that reflects broader society. Achieving
better gender balance is a driver of progress.
Why we measure it
Our commitment to the highest standards of integrity and
professional ethics is embedded inthe Group’s culture
through the integrity principles set out in our Code of
Ethics. Every year, to support continuing understanding in
thisarea, our people are required to complete
ourcomprehensive training course.
Operational emissions (in tCO
2
e) Employee voluntary turnover and
Intertek ATIC Engagement index
Women in senior management (%) Training completion by eligible employees
1
(%)
Target
2030: reduce absolute scope 1, scope 2 (market-based)
andscope 3 (business travel and employee commuting)
by50% vs 2019 base line.
Target
We aim to keep our voluntary permanent turnover rate
below 15% and continue to target an Intertek ATIC
Engagement Index score of 90 or more.
Target
2025: we aim to increase the proportion of women in senior
leadership roles to 30%.
Target
We aim to achieve 100% completion of our annual
compliance training by eligible employees.
Diversity, equity and inclusion
1. Refer to the Basis of Reporting ESG Data document for a definition of eligible
employees . New joiners complete training throughout the year as part of their
induction.
Male Female
Key financials 2021 2022 2023 2024
Employee voluntary
turnover (% of
permanent employees) 13.0% 14.0% 12.3% 11.2%
Intertek ATIC
Engagement index
score 80 80 87 91
2023
2022
2021
2020
2019
97.6
2024 100.0
96.8
94.2
XX
XX
2023
2022
2021
2020
2019
23.6
2024 26.3
20.8
23.0
76.4
73.7
79.2
77.0
XX
XX
* A few employees did not complete the training,
the 2024 rate is rounded to the nearest 0.1%
Intertek Group plc
Annual Report & Accounts 2024
1.34
3: Financial Report2: Sustainability Report1: Strategic Report
Our high growth cash
compounder earnings model and
daily performance management
discipline have delivered strong
earnings growth and record cash
from operations, delivering a
reduction in net debt, negative
working capital and a strong
balance sheet."
Colm Deasy
Chief Financial Officer
Intertek’s AAA strategy
and high-performance
culture delivering strong
financial performance
£3,393m
Revenue up
Actual rates: 1.9%
Constant rates: 6.6%
£536m
Statutory operating profit up
Actual rates: 10.2%
Constant rates: 16.8%
£590m
Adjusted operating profit up
Actual rates: 7.1%
Constant rates: 13.0%
15.8%
Statutory operating margin up
Actual rates: 120bps
Constant rates: 140bps
17.4%
Adjusted operating margin up
Actual rates: 80bps
Constant rates: 100bps
212.7p
Statutory diluted EPS up
Actual rates: 16.0%
Constant rates: 25.8%
156.5p
Dividend per share up
Actual rates: 40.1%
Negative
Working Capital
£409m
Adjusted Free Cash Flow up
Actual rates: 8.0%
22.4%
Return on Invested Capital up
Actual rates: 190bps
Constant rates: 250bps
Financial review
Financial highlights
Intertek Group plc
Annual Report & Accounts 2024
1.35
Financial review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Five-year performance – adjusted diluted EPS1 (pence)
+2.5%
CAGR
3
2023
2022
2021
2020
2019
223.0
2024 240.6
211.1
190.8
170.9
212.5
Dividend per share
2
(pence)
+8.1%
CAGR
3
2023
2022
2021
2020
2019
111.7
2024 156.5
105.8
105.8
105.8
105.8
1. Presentation of results: To provide readers with a clear and consistent presentation of
the underlying operating performance of the Group’s business, some figures
discussed in this review are presented as adjusted, before SDIs (see note 3 to the
financial statements on page 3.11 in Report 3). A reconciliation between adjusted and
statutory performance measures isset out on overleaf. Figures before 1 January 2019
(when IFRS 16 was adopted) are on an IAS 17 basis.
2. Dividend per share for 2024 is based on the interim dividend paid of 53.9p (2023:
37.7p) plus the proposed final dividend of 102.6p (2023: 74.0p).
3. CAGR represents the compound annual growth rate from 2019 to 2024.
Consolidated income statement commentary
Total reported Group revenue increased by 1.9%, with 0.3%
growth contributed by acquisitions, a like-for-like ('LFL')
revenueincrease of 1.6% and a decrease of 470bps from
foreignexchange, reflecting sterling appreciation against
mostof theGroup's trading currencies.
The Group’s LFL revenue at constant rates consisted of an
increase of8.0% in Consumer Products, 7.8% in Corporate
Assurance, 7.9% in Health and Safety, 1.7% in Industry and
Infrastructure, and 8.0% in Worldof Energy.
We delivered an adjusted operating profit performance of
£590.1m (2023: £551.1m), up 13.0% at constant rates and
7.1%at actual rates.
The Group's adjusted operating margin was 17.4% (2023: 16.6%),
anincrease of 100bps from the prior year at constant exchange
rates and80bps at actual rates.
The Group’s statutory operating profit after Separately
Disclosed Items ('SDIs') forthe period was £535.7m (2023:
£486.2m), up 16.8% at constant rates. The statutory margin
was 15.8% (2023: 14.6%). The Group’s statutory profit for the
year after tax was £367.2m (2023: £318.1m).
Net financing costs
Adjusted net financing costs were £42.3m, a decrease of £1.6m
on 2023 resulting from a lower interest expense. This comprised
£2.5m (2023: £3.8m) of finance income and £44.8m (2023:
£47.7m) of finance expense. Statutory net financing costs of
£45.7m (2023: £63.9m) included £3.4m of costs (2023: £20.0m)
relating to SDIs, predominantly driven by changes in the fair
value of contingent consideration related to acquisitions.
Tax
The adjusted effective tax rate was 24.7%, an increase of 0.1%
on the prior year (2023: 24.6%). The tax charge, including the
impact of SDIs, of £122.8m (2023: £104.2m), equates to an
effective rate of 25.1% (2023: 24.7%). The cash tax onadjusted
profit before tax was 23.1% (2023: 23.5%).
Earnings per share
Adjusted diluted earnings per share ('EPS') at actual exchange
rates was7.9% higher at 240.6p (2023: 223.0p). Diluted EPS
after SDIs was212.7p (2023: 183.4p) per share and basic EPS
afterSDIs was 214.4p (2023: 184.4p).
Dividend
The Board recommends a full year dividend of 156.5p per
share, a year-on-year increase of 40.1%, reflecting the Group’s
strong cash generation in 2024 and the implementation of
our new dividend policy based on a payout ratio of circa 65%.
The full year dividend of 156.5p represents a total cost of
£254.2m, or65% of adjusted profit attributable to shareholders
of the Group for2024 (2023: £181.2m and 50%). The dividend
is covered 1.5 times by earnings (2023: 2.0 times), based on
adjusted diluted earnings per sharedivided by dividend per share.
Results for the year
Key financials
2024
£m
2023
£m
Adjusted
Revenue 3,393.2 3,328.7
Operating profit 590.1 551.1
Diluted EPS 240.6p 223.0p
Profit after tax 412.6 382.4
Cash flow from operations 789.2 749.0
Statutory
Revenue 3,393.2 3,328.7
Operating profit 535.7 486.2
Diluted EPS 212.7p 183.4p
Profit after tax 36 7.2 318.1
Cash flow from operations 775.8 725.9
Dividend per share 156.5p 111.7p
Dividends paid in the year 206.1 176.3
Intertek Group plc
Annual Report & Accounts 2024
1.36
Financial review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Acquisitions and investment
One of the key corporate goals of the Group’s strategy is
delivering an accretive, disciplined capital allocation policy.
As a result, the Group invests both organically and by
acquiring or investing in complementary businesses to
strengthen our portfolio in the locations demanded by
clients. This approach enables the Group to focus on those
existing business lines or countries with good growth
and margin prospects where we have market-leading
positions or to enter exciting new growth areas offering
the latest technologies and Quality Assurance services.
Acquisitions
The Group completed one acquisition in the year (2023: two)
with cash consideration paid of £14.9m (2023: £43.6m), net of
cash acquired of £0.3m (2023: £3.1m), and a further contingent
consideration payable of £7.8m.
In March 2024, the Group acquired Base Metallurgical
Laboratories Ltd. and Base Met Labs US Ltd. (jointly 'Base Met
Labs'), a leading provider of metallurgical testing services for
theMinerals sector based in North America.
In 2024, £nil (2023: £2.7m) was spent in relation to
consideration forprior year acquisitions.
Organic investment
The Group invested £124.8m (2023: £116.9m) organically
in laboratory expansions, new technologies (including
software) and equipment and other facilities. This
investment represented 3.7% ofrevenue (2023: 3.5%).
Pensions
The Group’s pension moved to a net surplus of
£22.0m (2023: £17.0m surplus) driven by periodic
updates to our actuarial assumptions.
Separately Disclosed Items (‘SDIs’)
A number of items are separately disclosed in the financial
statements as exclusion of these items provides readers
with a clear and consistent presentation of the underlying
operating performance of the Group’s business. Reconciliations
of the statutory to adjusted measures are given overleaf.
The underlying performance of the business, by division, is shown in the table below:
Revenue Adjusted operating profit
Notes
2024
£m
Change at
2024 actual
rates
%
Change at
constant
rates
%
2024
£m
Change at
2024 actual
rates
%
Change at
constant
rates
%
Consumer Products 2 958.8 2.5 7.6 268.7 8.9 14.8
Corporate Assurance 2 496.3 3.9 8.6 117. 2 7.1 12.7
Health and Safety 2 337. 2 3.3 9.0 46.0 6.5 13.9
Industry and Infrastructure 2 843.6 (2.0) 2.4 80.7 (6.3) (1.6)
World of Energy 2 757.3 3.9 8.0 77.5 18.1 25.4
Group total 3,393.2 1.9 6.6 590.1 7.1 13.0
Net financing costs 14 (42.3)
Adjusted profit before income tax 547.8 8.0 15.4
Adjusted income tax expense 6 (135.2)
Adjusted profit for the year
412.6 7.9 15.2
Adjusted diluted EPS (pence) 7 240.6 7.9 15.2
Intertek Group plc
Annual Report & Accounts 2024
1.37
Financial review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
When applicable, these SDIs include amortisation of acquisition
intangibles; impairment of goodwill and other assets; the
profit or loss on disposals of businesses or other significant
fixed assets; costs related to acquisition activity; the cost of
any fundamental restructuring; the costs of any significant
strategic projects; significant claims and settlements; and
unrealised market or fair value gains or losses on financial
assets or liabilities, including contingent consideration.
Adjusted operating profit excludes the amortisation of acquired
intangible assets, primarily customer relationships, as we
do not believe that the amortisation charge in the income
statement provides useful information about the cash costs
of running our business as these assets will be supported and
maintained by ongoing marketing and promotional expenditure,
which is already reflected in operating costs. Amortisation
of software, however, is included in adjusted operating
profit as it is similar in nature to other capital expenditure.
The costs associated with our cost reduction programme are
excludedfrom adjusted operating profit where they represent
changes associated with operational streamlining, technology
upgrades and related asset write-offs and are costs that are not
expected to reoccur. The restructuring programme, which began
in 2022, is expected to last up to five years. The treatment
as SDI is consistent with the disclosure of costs for similar
restructuring and strategic programmes previously undertaken.
The impairment of goodwill and other assets that by
their nature or size are not expected to recur, the profit
and loss on disposals of businesses or other significant
assets, and the costs associated with successful, active or
aborted acquisitions are excluded from adjusted operating
profit in order to provide useful information regarding the
underlying performance of the Group’s operations.
The SDIs charge for 2024 comprises amortisation of
acquisition intangibles of £32.3m (2023: £34.2m);
acquisition and integration costs relating to successful,
active or aborted acquisitions of £2.5m (2023: £8.3m);
significant legal claims of £3.8m ( 2023: £nil); and
restructuring costs of £15.8m (2023: £22.4m).
Further information on SDIs is given in note 3 to the
financial statements on page 3.11 in Report 3.
2024 reconciliation of statutory
to adjusted performance measures
£m Statutory SDIs Adjusted
Revenue 3,393.2 – 3,393.2
Operating profit 535.7 54.4 590.1
Operating margin (%) 15.8% 1.6% 17.4%
Net financing costs (45.7) 3.4 (42.3)
Income tax expense (122.8) (12.4) (135.2)
Profit for the year 36 7.2 45.4 412.6
Cash flow from operations 775.8 13.4 789.2
Basic EPS (pence) 214.4 28.2 242.6
Diluted EPS (pence) 212.7 27. 9 240.6
2023 reconciliation of statutory
to adjusted performance measures
£m Statutory SDIs Adjusted
Revenue 3,328.7 – 3,328.7
Operating profit 486.2 64.9 551.1
Operating margin (%) 14.6% 2.0% 16.6%
Net financing costs (63.9) 20.0 (43.9)
Income tax expense (104.2) (20.6) (124.8)
Profit for the year 318.1 64.3 382.4
Cash flow from operations 725.9 23.1 749.0
Basic EPS (pence) 184.4p 39.8p 224.2p
Diluted EPS (pence) 183.4p 39.6p 223.0p
Key performance indicators
The Group uses a variety of key performance indicators (‘KPIs’)
to monitor the financial performance of the Group and its
operating divisions. The specific metrics and associated
definitions are disclosed on pages 1.30-1.33.
LFL revenue at constant currency is presented to show the
Group’s revenue excluding the effects of the change in the
scope of the consolidation (acquisitions following their
12-month anniversary of ownership, and removes the historical
contribution of any business disposals/closures) and removing
the impact of currency translation from the Group’s growth
figures.
Like-for-like revenue at
constantcurrency
2024
£m
2023
£m
Change
%
Reported revenue 3,393.2 3,328.7 1.9
less: Acquisitions/
disposals revenue (14.4) (4.6)
LFL revenue 3,378.8 3,324.1 1.6
Impact of foreign
exchange movements – (146.0)
LFL revenue at
constant currency 3,378.8 3,178.1 6.3
The rate of Return on Invested Capital (‘ROIC’), defined as
adjusted operating profit less adjusted taxes divided by invested
capital, measures the efficiency of Group investments. This is a
key measure to assess the efficiency of investment decisions
and is also an important criterion in the decision-making process.
ROIC in 2024 of 22.4% compares to 19.9% in the prior year at
constant exchange rates (2023: 20.5% at actual exchange rates).
Intertek Group plc
Annual Report & Accounts 2024
1.38
Financial review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Free cash flow reconciliation
2024
£m
2023
£m
Cash flow from operations 775.8 725.9
less: Net capital expenditure (130.0) (105.4)
add back: Interest received 2.7 3.5
less: Interest paid (52.2) (71.9)
less: Income tax paid (126.5) (119.0)
less: Lease liabilities paid (74.4) ( 7 7. 8 )
Free cash flow 395.4 355.3
add back: SDI cash outflow 13.4 23.1
Adjusted free cash flow 408.8 378.4
Net debt
The Group ended the period in a strong financial position. Financial
netdebt was £499.8m, a decrease of £110.8m on 31 December
2023. The undrawn headroom on the Group’s existing committed
borrowing facilities at 31 December 2024 was £655.7m (2023:
£664.3m) and cashand cash equivalents were £336.5m (2023:
£298.6m), representingsignificant total liquidity.
Total net debt, including the impact of the IFRS 16 lease liability,
was £799.4m (2023: £918.4m).
The Group has a well-balanced loan portfolio to enable the
funding of future growth opportunities with a maturity profile
as shown overleaf.
Working capital
During 2024, we have continued our working capital focus
and,through disciplined performance management, we have
increased our negative working capital position to negative
£95.9m (2023: negative £78.8m). Working capital has moved
to(2.8)% of revenue, reflecting 40bps improvement
comparedto2023.
Return on Invested Capital at constant currency
2024
£m
2023
£m
Change
%
Adjusted operating profit 590.1 522.2 13.0
less: Adjusted tax
1
(145.6) (128.5) 13.4
Adjusted profit after tax 444.5 393.7 12.9
Invested capital
2
1,982.9 1,979.4 0.2
ROIC % 22.4% 19.9% 250bps
1. Calculated by applying the adjusted effective tax rate (2024: 24.7%, 2023: 24.6%) to
adjusted operating profit.
2. Net assets excluding tax balances, net financial debt and net pension liabilities.
Cash flow and net debt
Cash flow
The Group relies on a combination of debt and internal cash
resources tofund its investment plans. One of the key metrics
for measuring the ability of the business to generate cash is cash
flow from operations. Due to the cash payments associated with
the SDIs, and to provide a complete picture of the underlying
performance of the Group, adjusted cash flow from operations is
shown below to illustrate the cash generated by the Group:
Cash conversion
2024
£m
2023
£m
Change
%
Cash flow from operations 775.8 725.9 6.9
add back: Cash flow relating
toSDIs 13.4 23.1
Adjusted cash flow
fromoperations 789.2 749.0 5.4
Repayment of lease liability (74.4) ( 7 7. 8 ) (4.4)
Cash flow for cash conversion 714.8 671.2 6.5
Cash conversion % 121.1% 121.8% (70bps)
Five year trend – working capital
1
as % of revenue
(620
bps
)
2023
2022
2021
2020
2019
(2.4)
2024 (2.8)
(1.5)
(1.6)
(0.1)
3.4
1. Working capital is defined under the consolidated statement of financial position
within the financial statements on page 3.03 in Report 3.
2. Figures before 1 January 2019 (when IFRS 16 was adopted) are on an IAS 17 basis.
Adjusted free cash flow (£m)
0.7%
CAGR
1
2023
2022
2021
2020
2019
378.4
2024 408.8
386.3
401.8
435.6
395.3
1. CAGR represents the compound annual growth rate from 2019 to 2024.
Intertek Group plc
Annual Report & Accounts 2024
1.39
Financial review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Borrowings by maturity profile
(At 31 December 2024)
Less than one year 11%
One to five years 74%
Over five years 15%
Under existing facilities, the Group has available debt
headroomof£655.7m at 31 December 2024 (2023: £664.3m).
The components of net debt at31 December 2024 are
outlinedbelow:
1
January
2024
£m
Cash and
non-cash
movements
£m
Exchange
adjustments
£m
31
December
2024
£m
Cash
1
298.6 52.5 (14.6) 336.5
Borrowings
2
(909.2) 72.8 0.1 (836.3)
Financial
netdebt (610.6) 125.3 (14.5) (499.8)
Lease
liabilities
2
(307.8) 1.5 6.7 (299.6)
Net debt (918.4) 126.8 ( 7. 8 ) (799.4)
1. As disclosed in note 14 of the financial statements on page 3.27 in Report 3.
2. Borrowings include £1.5m of non-cash movements related to amortisation of facility
fees (see note 14 of the financial statements on page 3.27 in Report 3). Lease
liabilities include £72.9m of non-cash movements.
To ensure the Group is not exposed to income statement
volatility in relation to foreign currency translation on its debt,
the Group ensures that any foreign currency borrowings are
matched to the value of its overseas assets in that currency
(an‘effective’ hedge).
The Group borrows primarily in US dollars, and any currency
translation exposures on the borrowings are offset by the
currency translation on the US dollar and US dollar-related
overseas assets of the Group.
The composition of the Group’s gross borrowings in 2024,
analysed by currency, is as follows:
Borrowings by currency
(At 31 December 2024)
GBP 2%
EUR 18%
USD 80%
Foreign currency movements
The Group transacts in over 80 currencies across more than
100countries, and revenue and profit are impacted by currency
fluctuations. However, the diversification of the Group’s revenue
base provides a partial dilution to this exposure.
At constant rates, revenue grew 6.6% (actual rates 1.9%) and
adjusted operating profit grew 13.0% (actual rates 7.1%).
The exchange rates used to translate the statement of financial
position and the income statement into the Group’s functional
currency, sterling, for the five most material currencies used in
the Group are shown as follows:
Statement of
financial position
rates
Income statement
rates
Value of £1 2024 2023 2024 2023
US dollar 1.26 1.28 1.28 1.24
Euro 1.21 1.15 1.18 1.15
Chinese renminbi 9.18 9.14 9.21 8.81
Hong Kong dollar 9.76 10.0 9.99 9.71
Australian dollar 2.02 1.87 1.94 1.87
Significant accounting policies
The consolidated financial statements in Report 3 are prepared
in accordance with IFRS as adopted by the UK. Details of the
Group’s significant accounting policies are shown in note 1 to
thefinancial statements on page 3.07 in Report 3.
Colm Deasy
Chief Financial Officer
Intertek Group plc
Annual Report & Accounts 2024
1.40
3: Financial Report2: Sustainability Report1: Strategic Report
Operating review
Intertek value proposition
Our Consumer Products division focuses
on the ATIC solutions we offer to our
clients to develop and sell better, safer,
and more sustainable products to their
own clients. This division was 28% of our
revenue in 2024 and includes the
following business lines: Softlines,
Hardlines, Electrical & Connected World
and Government & Trade Services ('GTS').
As a trusted partner to the world’s leading
retailers, manufacturers and distributors,
the division supports a wide range of
industries including textiles, footwear,
toys, hardlines, home appliances,
consumer electronics, information and
communication technology, automotive,
aerospace, lighting, building products,
industrial and renewable energy products,
and healthcare.
Financial highlights 2024
2024
£m
2023
£m
Change at
actual rates
Change at
constant rates
Revenue 958.8 935.8 2.5% 7.6%
Like-for-like revenue 957.4 931.2 2.8% 8.0%
Adjusted operating profit 268.7 246.8 8.9% 14.8%
Adjusted operating margin 28.0% 26.4% 160bps 170bps
2024 performance
In FY 2024, our Consumer Products-
related business delivered a revenue of
£958.8m, up year on year by 7.6% at
constant currency and 2.5% year on year
at actual rates. We delivered an adjusted
operating profit of £268.7m, up 15% year
on year at constant currency and up 9%
year on year at actual rates resulting in
an adjusted operating margin of 28.0%,
an increase of 170bps year on year at
constant currency.
• Our Softlines business delivered
double-digit LFL revenue growth as we
have seen an increase in ATIC
investments by our clients in
e-commerce, Risk-based Quality
Assurance, end-to-end sustainability
and in new products.
Consumer Products
High-single digit like-for-like revenue growth
Strategy
Our TQA value proposition provides
a systemic approach to support the
Quality Assurance efforts of our
Consumer Products-related customers
in each of the areas of their operations.
To do this we leverage our global
network of accredited facilities and
world leading technical experts to help
our clients meet high quality, safety,
regulatory and brand standards, and
develop new products, materials and
technologies, as well as the import
of goods in their markets, based
on acceptable quality and safety
standards. Ultimately, we assist them
in getting their products to market
quickly and safely, to continually
meet evolving consumer demands.
2025 growth outlook
We expect our Consumer Products
division to deliver mid-single digit LFL
revenue growth at constant currency.
Mid- to long-term
growthoutlook
Our Consumer Products division will
benefit from growth in new brands,
SKUs& e-commerce, increased
regulation, a greater focus on
sustainability and technology, as well
asagrowing middle class. Our mid to
long-term guidance for Consumer
Products is low to mid-single digit LFL
revenue growth at constant currency.
• Hardlines reported a mid-single digit
LFL revenue performance as we are
benefitting from ATIC investments by
our clients in e-commerce, sustainability
and new product development.
• With increased ATIC activities driven
bygreater regulatory standards in
energy efficiency, more demand for
medical devices and 5G investments,
our Electrical & Connected World
business delivered high-single digit
LFLrevenue growth.
• Our Government & Trade Services
business provides certification services
to governments in the Middle East and
Africa to facilitate the import of goods
in their markets, based on acceptable
quality and safety standards. The
business reported low-single digit LFL
revenue growth in the period.
Revenue
£958.8m
2023: £935.8m
Adjusted operating margin
28.0%
2023: 26.4%
Percentage of Group revenue
28%
2023: 28%
In action
Intertek Group plc
Annual Report & Accounts 2024
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Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Softlines
Providing a range of solutions for
textiles, garments, footwear and
personal protective equipment.
Our role: Our solutions enable fashion
retailers, brands and manufacturers to
gatekeep regulatory compliance, while
continuously improving their product
performance in terms of quality, safety
andsustainability.
Government & Trade Services
Providing conformity assessment
services to governments,
regulatory bodies, exporters and
importers to support trade
compliance.
Our role: We support governments,
customs authorities, exporters and
importers by ensuring imported goods
comply with international safety and quality
standards. Our worldwide network of offices
delivers rapid inspection and certification.
Hardlines
Comprehensive solutions for a wide
variety of toys and hardgoods.
Our role: Solutions for toys, children’s and
juvenile products, household products,
furniture, and office supplies. We help our
customers meet regulatory and retailer-
specific requirements, improve product
performance and differentiation through
benchmarking, and facilitate global market
access.
Electrical & Connected World
Helping clients meet safety,
performance, environmental
andquality requirements
anddelivering best in class
networking and cyber security
solutions for today’s wireless
andconnected devices.
Our role: We bring more than 100 years of
product testing and certification expertise
to a wide range of industries, such as
Medical, Lighting, Energy, Appliances &
Electronics, Industrial Equipment, and IT &
Telecom Equipment. We also provide
comprehensive hardware, software, and
cyber security solutions to help clients
rapidly launch secure and reliable products in
each industry and sector around the world.
Business lines
Addressing all quality assurance
needs on a single platform
InterLink 2.0 is an advanced digital Total
Quality Management platform that helps
brands and retailers manage product Quality
Assurance in complex production cycles.
What it is: InterLink provides core features such as online
job requests, report cockpit, report disposition, business
intelligence, knowledge library, communication gateway and
product approval. The latest version, InterLink 2.0, draws on
cutting-edge technology to offer an even more user-friendly
experience, enhanced security measures, and sophisticated
data analysis solutions to help customers excel in the
marketplace and manage their end-to-end supply chain needs.
Customer benefit: Combining new interface, digitised
certificate data that supports CPSC’s e-filing, and ready-to-
integrate APIs to streamline data exchange, InterLink
2.0 enables seamless e-Filing experience in a few clicks and
gives customers advanced business intelligence powered
by Power BI. It addresses all Quality Assurance needs on
a single platform, offering customers great value and the
convenience of access anytime, anywhere. Harnessing real-
time, data-focused insights gives businesses a competitive
edge, while minimising their supply chain risks. Seamless
CPSC e-filing and quicker lead times also enhance the
product life cycle and help increase speed to market.
VISIT: INTERTEK.COM
In action
Intertek Group plc
Annual Report & Accounts 2024
1.42
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Intertek Softlines’
iCare – Total Quality
in a few clicks
iCare provides clients with a pioneering,
industry-leading solution that enables them
to seamlessly manage and monitor their
testing processes from start to finish.
What it is: Increasing regulation and heightened consumer
expectations are driving demand among customers in the
ATIC space for bespoke, end-to-end solutions. Intertek
Softlines’ iCare is an innovative one-stop Science-based
Customer Excellence portal that addresses the transparency
and traceability around the processing and testing of
laboratory samples.
Customer benefit: The new portal ensures that our
customers can submit test requests, view reports and
analytics online and connect with our in-house teams of
experts in just a few clicks. They can seamlessly manage
alltheir testing projects in one place, from submitting a
newtest request or checking their project status, to
downloading final reports. And with real time status
information and the ability to chat to us online, all within
theportal, iCare means our customers can keep track of
their testing whatever the time of day or night.
VISIT: INTERTEK.COM
Trace For Good
Partnership
Innovative traceability platform that
empowers brands with real-time insights
into the production journey of textile
goods, end-to-end.
What it is: Intertek has partnered with Trace For Good,
aSaaS platform aimed at enhancing traceability and
sustainability in complex supply chains, particularly
withinthe textile industry. The platform helps brands to
effectively manage and communicate the environmental
andsocial impacts of their products.
Customer benefit: Trace For Good’s supply chain
traceability and data management platform combined
with Intertek's global network of experts and ATIC
solutionswill enable brands and suppliers to collaborate
inreal time to track, trace and verify the impact of each
product, gain product sustainability information.
VISIT: INTERTEK.COM
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
1.43
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Building trust and
transparency with our
High-Performance Mark
Intertek’s High-Performance Mark
(HP Mark) is an instantly recognisable
Mark for Performance offering peace
of mind to end-consumers when they
purchase consumer products.
Our HP Mark programme helps retailers, brands and
manufacturers demonstrate the functional properties of
their products by verifying their performance attributes
through testing. It also enables them to communicate the
benefits to end-consumers with the use of labelling that
bears our HP Mark. Customers use the Mark to showcase
specific performance features of their products, such as
waterproof and wind-proof for ski jackets and antibacterial
and slip resistant for footwear.
In 2024, the programme was expanded from Textile and
Footwear, into Furniture, Kitchenware, Pet Products and
Eyewear. Our customers can build their unique Intertek
HP Mark by selecting their performance claims, which are
substantiated through testing for product differentiation
through our High-Performance Centres of Excellence
worldwide. Their 'proof of performance' labelling can
then show that their claims have been independently
verified by Intertek.
VISIT: INTERTEK.COM
New global regulatory compliance
service – Intertek Access
Intertek Access is a robust compliance
andregulatory information service that
offers our clients an early understanding
ofthe regulatory requirements they
faceworldwide.
What it is: Intertek Access harnesses Intertek’s extensive
worldwide network of experts to provide tailored market
requirements for 65 countries, offering technical details
on electrical safety testing, energy efficiency testing, and
beyond. It supplies manufacturers with everything they
need from the initial concept phase to product development
– including up-to-date information on market requirements,
certifications, and regulatory bodies, alongside customised
compliance plans.
Customer benefit: When accessing new and non-traditional
markets, companies require specific expertise in global market
regulation to guide their product development from concept
to commercialisation. Our easy-to-use online tool streamlines
diverse regulatory requirements into a single process for
accessing multiple markets. For more customised service,
an Intertek expert can create a market testing requirements
report, known as an Access Passport, specific to a company’s
product category and desired countries. They then guide
users through the step-by-step process of bringing a product
to market, covering the research and innovation stage to
prototype, market launch and production, through to ongoing
product compliance via standards and regulatory updates.
VISIT: INTERTEK.COM
In action
Intertek Group plc
Annual Report & Accounts 2024
1.44
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
ToxClear platform
relaunched with
new functionalities
Our upgraded ToxClear platform improves
the safety, traceability and transparency of
chemicals used in manufacturing, assuring
safer, cleaner and more sustainable
supplychains.
What it is: Upgraded in 2024, Intertek ToxClear offers a
Zero Discharge of Hazardous Chemicals ('ZDHC') approved,
cloud-based chemical management tool leveraging
Manufacturing Restricted Substances List ('MRSL') and
wastewater testing data. It also features a product agnostic
chemical risk assessment module, giving both softgoods
and hardgoods industry stakeholders visibility into the
chemicals used and helping them manage them at each
stage of their operations.
Customer benefit: ToxClear is a one-stop digital sustainable
chemical management platform that helps both brands and
their suppliers detox their supply chains. Its user-friendly
design makes it simple for stakeholders to track their
MRSL conformance and manage regulatory chemical risks,
while minimising the use of hazardous chemicals, including
PFAS, throughout the input, process, and output stages.
Customers can digitise their supply chain chemical inventory
data, while incorporating risk assessment, benchmarking
and corrective measures. This will accelerate their path
to achieving their sustainability goals, helping customers
drive improvements and work towards eliminating harmful
substances in their supply chains faster.
VISIT: INTERTEK.COM
Intertek Group plc
Annual Report & Accounts 2024
1.45
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Corporate Assurance
Intertek value proposition
Our Corporate Assurance division focuses
on the industry agnostic assurance
solutions we offer to our clients to make
their value chains more sustainable and
more resilient end-to-end. This division
was 15% of our revenue in 2024 and
includes Business Assurance and Assuris.
High-single digit like-for-like revenue growth
Financial highlights 2024
2024
£m
2023
£m
Change at
actual rates
Change at
constant rates
Revenue
496.3 47 7.5 3.9% 8.6%
Like-for-like revenue 492.4 477.5 3.1% 7. 8 %
Adjusted operating profit 117. 2 109.4 7.1% 12.7%
Adjusted operating margin 23.6% 22.9% 70bps 80bps
Revenue
£496.3m
2023: £47 7. 5m
Adjusted operating margin
23.6%
2023: 22.9%
Percentage of Group revenue
15%
2023: 14%
Strategy
Business Assurance and Assuris are
central to our ATIC offering and are
some of the most exciting businesses
within Intertek, given the increased
focus on operational risk management
within the value chain of every
company. Intertek Business Assurance
provides a full range of business
process audit and support services,
including accredited third-party
management systems auditing and
certification, second-party supplier
auditing and supply chain solutions,
sustainability data verification,
process performance analysis and
training. Assuris’ global network of
experts provides a global network of
scientists, engineers, and regulatory
specialists to provide support to
navigate complex scientific, regulatory,
environmental, health, safety, and
quality challenges throughout
the value chain of our clients.
2025 growth outlook
We expect our Corporate Assurance
division to deliver high-single digit LFL
revenue growth at constant currency.
2024 performance
In FY 2024, our Corporate Assurance-
related business reported revenue of
£496.3m, LFL revenue growth of 7.8% at
constant currency and up year on year
by 8.6% at constant currency and 3.9%
at actual rates. We delivered adjusted
operating profit of £117.2m, up 13% year
on year at constant currency and 7% year
on year at actual rates with an adjusted
operating margin of 23.6%, an increase of
80bps year on year at constant currency.
Mid- to long-term
growthoutlook
Our Corporate Assurance division will
benefit from a greater corporate focus
onsustainability, the need for increased
supply chain resilience, enterprise cyber
security, People Assurance services and
regulatory assurance. Ourmid to
long-term guidance for Corporate
Assurance is high-single digitto
double-digit LFL revenue growthat
constant currency.
• Business Assurance delivered
high-single digit LFL revenue growth
driven by increased investments by our
clients to improve the resilience of their
supply chains, the continuous focus on
ethical supply and the greater need for
sustainability assurance.
• The Assuris business reported
mid-single digit LFL revenue
performance as we continue to
benefitfrom improved demand for our
regulatory assurance solutions and
from increased corporate investment
inESG.
In action
Intertek Group plc
Annual Report & Accounts 2024
1.46
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Business lines
Business Assurance
Providing a full range of
businessprocess audit and
support solutions.
Our role: We enable our clients to
improvetheir operations, meet regulatory
requirements, mitigate business risks,
reduce their environmental impact, qualify
their suppliers, and help them achieve their
business objectives.
Intertek Assuris
Helping clients reduce risk,
accessglobal markets, promote
health and safety, and protect
theenvironment.
Our role: Intertek Assuris provides
globalregulatory support and scientific
substantiation to enable market access,
implements quality management systems,
assesses essential safety concerns and
provides clients with a pathway to
decarbonisation.
Offering seamless access to
Standards through Intertek Inform
Intertek Inform uses market-leading
technology to provide companies with
standards and regulatory solutions to
facilitate faster market access.
What it is: Intertek Inform (formerly known as Intertek
SAIGlobal Standards) provides up-to-date standards,
transparent pricing, and real-time alerts when standards
change. With a vast library of 1.6million standards from over
360 publishers, such as ISO, ASTM, ASME, BSI, and Standards
Australia, our digital, centralised platform offers tailored
access to the information customers need, when they need
it, helping them get their products to market faster. Users
also receive alerts that provide an up-to-date summary of
allthe standards on their Intertek Inform watchlist.
Customer benefit: Meeting the right internationally
recognised standards is critical to the ongoing success
ofour customers in both established and new markets.
Toensure we offer them seamless access to our library
ofstandards, the Intertek Inform Technology team has
nowlaunched a mobile app as part of our Standards
Management Solution i2i. This i2i mobile app allows
customers to download their essential standards to
accessthem anytime, even without an internet connection.
They can also log into their accounts with just one set of
credentials, using a convenient single sign-on ('SSO') that
streamlines their login experience and enhances the
platform’s security.
VISIT: INTERTEK.COM
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
1.47
Intertek Group plc
Annual Report & Accounts 2024
1.47
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
'People Make the Difference'
at Intertek Alchemy Engage
Conference 2024
The 14
th
Intertek Alchemy Engage
Conference, hosted in Austin, Texas,
brought together more than 300
employee engagement and development
leaders to “learn, connect and grow.”
What it is: Intertek Alchemy is dedicated to helping the
industry grow by engaging, developing, and retaining
its workforce. Our Engage Conference serves as an ideal
forum to meet new people, share our initiatives, listen to
feedback, and explore common problems in the industry
that may drive innovations that address evolving
needs. The 2024 event featured best practice sessions,
networking opportunities, and a forward-looking focus
aimed at building safe and productive cultures within the
manufacturing, processing, packaging, and distribution
industries. Attendees also explored how to further their
business growth at the Alchemy Showcase, where they
received a firsthand look at all of Intertek Alchemy’s
training solutions and consulting services.
Customer benefit: The conference kicked off
withleaders from Intertek Alchemy sharing trends,
advancements, and insights under the theme of
'People Make the Difference'. Our innovation team was
delighted to showcase newly released training courses
on leadership, warehouse, and workplace harassment
topics, as well as course libraries translated into
Haitian-Creole. They also previewed upcoming courses
onworkplace safety, maintenance, and employee
wellbeing topics, as well as sharing their focus on
developing technology that will streamline course
creation and translations, allowing for training in
multiplelanguages simultaneously, and enhancing
ourbusiness intelligencetools.
VISIT: INTERTEK.COM
Supporting EUDR compliance
for key commodities
Intertek’s solutions for EU Deforestation
Regulation ('EUDR') compliance are more
than just a reaction to customer needs
– they are a testament to our pioneering
innovation in sustainability.
What it is: To help companies prepare for the EUDR
legislation that will come into force on 30 December 2025,
we have introduced a comprehensive suite of solutions.
EUDR impacts the import and export of seven key
commodities – wood, rubber, cocoa, coffee, cattle, soy, and
palm oil – within the European market. Non-compliance
may lead to penalties up to 4% of EU revenue and market
exclusion. Our support spans from the farmer to the
end-consumer, ensuring that the path to compliance is
seamless, effective, and geared towards a sustainable,
deforestation-free future.
Customer benefit: Our aim is to help customers act to
preserve our natural resources, while safeguarding their
market position. We help them navigate the intricate
regulatory requirements they face with confidence and
precision. Our comprehensive solutions support every
aspect of their compliance journey, providing guidance
onregulations, training, and services that cover risk
assessment, mitigation, audits and verification.
VISIT: INTERTEK.COM
Intertek Group plc
Annual Report & Accounts 2024
1.48
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Financial highlights 2024
2024
£m
2023
£m
Change at
actual rates
Change at
constant rates
Revenue 337. 2 326.3 3.3% 9.0%
Like-for-like revenue 333.8 326.3 2.3% 7.9%
Adjusted operating profit 46.0 43.2 6.5% 13.9%
Adjusted operating margin 13.6% 13.2% 40bps 50bps
Health and Safety
Intertek value proposition
Our Health and Safety division focuses
on the ATIC solutions we offer to our
clients to make sure we all enjoy a
healthier and safer life. This division
was 10% of our revenue in 2024 and
includes our AgriWorld, Food, and
Chemicals & Pharma business lines.
High-single digit like-for-like revenue growth
Strategy
Our TQA value proposition provides
our Health and Safety-related
customers with a systemic, end-to-
end ATIC offering at every stage of
the supply chain. In an industry with
significant structural growth drivers,
our science-based approach supports
clients as the sustained demand
for food safety testing activities
increases along with higher demand for
hygiene and safety audits in factories.
Our long-standing experience and
expertise in the Chemicals and
Pharma industries enables clients to
mitigate risks associated with product
quality and safety and processes,
supporting them with their product
development, regulatory authorisation,
chemical testing and production.
Revenue
£337. 2m
2023: £326.3m
Adjusted operating margin
13.6%
2023: 13.2%
Percentage of Group revenue
10%
2023: 10%
2024 performance
In FY 2024, our Health and Safety-
related business delivered LFL revenue
growth of 7.9% at constant currency
to £337.2m, a year on year increase of
9.0% at constant currency and 3.3%
at actual rates. Adjusted operating
profit was £46.0m, up 14% year on
year at constant currency and 6.5% at
actual rates. Adjusted operating margin
was 13.6%, an improvement of 50bps
year on year at constant currency.
2025 growth outlook
We expect our Health and Safety
divisionto deliver mid-single digit
LFLrevenue growth.
• AgriWorld provides inspection activities
to ensure that the global food supply
chain operates fully and safely. The
business reported high-single digit LFL
revenue growth as we continue to see
an increase in demand for inspection
activities driven by sustained growth
inthe global food industry.
• Our Food business registered
double-digit LFL revenue growth as
wecontinue to benefit from higher
demand for food safety testing
activities as well as hygiene and
safetyaudits in factories.
• In Chemicals & Pharma we saw
mid-single digit LFL revenue growth,
reflecting improved demand for
regulatory assurance and chemical
testing and from the increased R&D
investments of the pharma industry.
Mid- to long-term
growthoutlook
Our Health and Safety division will
benefit from the demand for healthier
and more sustainable food to support a
growing, global population, increased
regulation, and new R&D investments in
the pharma industry. Our mid to long-term
guidance for our Health and Safety
division is mid to high-single digit LFL
revenue growth at constant currency.
In action
Intertek Group plc
Annual Report & Accounts 2024
1.49
Operating review Continued
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Business lines
AgriWorld
Providing assurance, testing,
inspection and certification
services across the entire
agricultural supply chain.
Our role: We offer an extensive array of
services including inspection services,
monitoring the quality and quantity of cargo
from source to destination; and high-quality
analysis for the Agri-biotech and breeding
industries and assurance services
supporting sustainable farming practices.
Our global experts offer seamless support,
and provide traceability throughout the
entire supply chain.
Food
Providing testing, inspection,
auditing, certification and
advisory services to food
companies.
Our role: We help major global brands to
launch new food products, support food
health initiatives, ensure safety and quality
across the supply chain, help reduce
food-borne diseases, and enable developing
nations to increase their global food exports.
Chemicals & Pharma
Enabling clients' product
development, regulatory
authorisation and production.
Our role: Our analytical and assurance
solutions accelerate product development
and mitigate risks associated with product
quality and safety, processes, and supply
chains for the pharmaceutical, chemical,
polymer, packaging, medical device, and
cosmetic sectors.
Customer benefit: Despite its reputation as a pure and
natural product, honey ranks among the most tampered-
with foods on the planet, with an estimated 14% of
honey sold worldwide being either fake or mixed with
other substances. Our powerful new solution helps
honey professionals meet regulatory requirements
while also safeguarding consumers and building trust
through unparalleled traceability and accountability.
Thelevel of transparency HoneyTrace provides is critical
in light of recent EU regulatory changes, which mandate
specific origin information on honey packaging and
encourage the use of traceability systems to validate
that information.
VISIT: INTERTEK.COM
HoneyTrace –
traceability from hive to jar
Complete transparency of honey's journey
from hive to jar, tracking each batch as it
moves from beekeeper to exporter,
importer and packer.
What it is: Intertek Food Services has launched
HoneyTrace, an innovative traceability solution for the
honey industry, designed to protect the integrity of the
honey supply chain. Built using blockchain technology
and backed by our extensive honey testing expertise,
the secure platform can track the identity and location
of beekeepers, store laboratory test results, and monitor
batches throughout the supply chain. It provides
complete transparency of honey's journey from hive to jar,
minimising opportunities for adulteration – the deliberate
modification of honey, such as adding sugars, syrups, or
colours, or falsifying the product's origin to enhance its
value or appearance.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
1.50
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Third Annual Inhaled & Nasal
Biologics | DNA Forum
For the third year, Intertek’s UK Pharma
teamhosted this conference in Cambridge
spanning two days of cutting-edge
discussions and networking opportunities
with leaders in this complex area of drug and
vaccine development. This industry-leading
event is a valuable forum to explore the
latest research and best practices in
pulmonary and intranasal biologic and
DNAdrug development.
A variety of companies and academic institutions shared
theirinsights and practical case studies, while expert
speakersdelved into innovative formulation and delivery
technologies and the reasoning behind overcoming
developmental challenges.
Over the past decade, biologics and nucleotide-based
therapies have become increasingly important. Delivering
these treatments via the lungs and nasal cavity offers a
promising, non-invasive alternative to traditional parenteral
methods, with potential benefits for both localised
respiratory and systemic treatments across various diseases
and conditions. However, the administration of biologics,
mRNA, and nucleotide-based therapies and vaccines
through respiratory routes presents unique challenges.
Developers must carefully balance product performance,
manufacturability, regulatory considerations, and
commercial factors to create effective solutions.
Hosting this annual forum highlights Intertek’s commitment
to supporting the advancement of science and innovation
in the field of inhaled and nasal biologics, DNA therapeutics
and vaccine development. Furthermore, ongoing partnership
with the Academy of Pharmaceutical Science ('APS')
ensures that the conference continues to be independently
science-led and accessible to a wide, diverse audience, whilst
enabling education, conversation and collaboration in this
complex and evolving area of drug development.
VISIT: INTERTEK.COM
Partnership with pharmaceutical
technology company
CrystecPharma
Intertek has partnered with crystal and
particle engineering experts CrystecPharma
to enhance formulation science and speed
up development timelines for dry powder
inhaler ('DPI') products.
What it is: Our new partnership aims to advance
formulation science and expedite the development
of inhaled medicines, especially DPIs, which are used
for various applications including respiratory diseases
and systemic drug delivery. Intertek's deep experience
in designing robust analytical methods for inhaled
and nasal drug products paired with CrystecPharma's
proprietary mSAS® (modified Supercritical Anti-Solvent)
drug formulation technology will help us create an
exciting new'fast to clinic' platform, facilitating rapid
DPIdevelopment and GMP clinical manufacturing.
Customer benefit: Intertek’s collaboration with
CrystecPharma offers pharmaceutical clients the chance
toaccelerate development timelines and create innovative,
high-performing medicines that will enhance treatments
for patients. Thanks to our unique 'fast to clinic' platform,
available in 2025, stable and safe DPI medicines can now
be developed and brought to market in a fraction of the
time previously achievable.
VISIT: INTERTEK.COM
Intertek Group plc
Annual Report & Accounts 2024
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Industry and Infrastructure
Intertek value proposition
Our Industry and Infrastructure division
focuses on the ATIC solutions our
clients need to develop and build better,
safer and greener infrastructure. This
division was 25% of our revenue in
2024 and includes Industry Services,
Minerals and Building & Construction.
Low-single digit like-for-like revenue growth
Financial highlights 2024
2024
£m
2023
£m
Change at
actual rates
Change at
constant rates
Revenue
843.6 860.5 (2.0)% 2.4%
Like-for-like revenue 837.9 860.5 (2.6)% 1.7%
Adjusted operating profit 80.7 86.1 (6.3)% (1.6)%
Adjusted operating margin 9.6% 10.0% (40bps) (40bps)
Strategy
Our TQA value proposition helps
our customers to mitigate the risks
associated with technical failure or
delay, ensuring that their projects
proceed on time and meet the highest
quality standards as demand for more
environmentally friendly buildings and
infrastructure grows. By helping to
improve safety conditions and reduce
commercial risk, our broad range
of assurance, testing, inspection,
certification and engineering services
allows us to assist clients in protecting
both the quantity and quality of
their mined and drilled products.
Revenue
£843.6m
2023: £860.5m
Adjusted operating margin
9.6%
2023: 10.0%
Percentage of Group revenue
25%
2023: 26%
2025 growth outlook
We expect our Industry and
Infrastructure division to deliver
mid-single digit LFL revenue growth
atconstant currency.
Mid- to long-term
growthoutlook
Our Industry and Infrastructure division
will benefit from increased investment
from energy companies to meet growing
demand and consumption of energy
fromthe growing global population, the
scalingup of renewables, increased R&D
investments that OEMs are making in EV/
hybrid vehicles and from the development
of greener fuels. We expect mid to
high-single digit LFL revenue growth in
the medium-term at constant currency.
2024 performance
Our Industry and Infrastructure-
related business reported LFL revenue
growth of 1.7% at constant currency
and we delivered revenue of £843.6m
in FY 2024, up year on year by 2.4%
at constant currency and down 2.0%
at actual rates. Adjusted operating
profit of £80.7m, was down circa 2%
at constant currency and down 6%
year on year at actual rates. Adjusted
operating margin was 9.6%, 40bps lower
year on year at constant currency.
• Industry Services, which includes our
Capex Inspection services and Opex
Maintenance services, delivered
mid-single digit LFL revenue growth.
We benefitted from increased capex
investment in traditional Oil and Gas
exploration and production as well as
inrenewables, enabling our Moody
division in H2 to deliver double-digit
LFL revenue growth despite severe
weather disruption in the USA.
Double-digit LFL revenue growth in our
Moody business was partially offset by
a negative LFL revenue performance in
our Opex business, due to the exit of
non-profitable contracts.
• Our Minerals business delivered
mid-single digit LFL revenue growth as
we continue to benefit from the robust
demand for testing and inspection
activities in our key markets.
• We continue to see growing demand
for more environmentally friendly
buildings and the increased number of
infrastructure projects being planned
inour Building & Construction business
in North America. We reported a
low-single digit negative LFL revenue
growth as our business was impacted
by a temporary slow-down of
investments in large construction
projects and severe weather
disruptions in the USA in H2.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
1.52
Operating review Continued
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Intertek Metoc – delivering across
the entire lifecycle of a project
With a history spanning over four decades,
the Intertek Metoc brand was renewed in
2024, highlighting the pioneering energy,
industry expertise and end-to-end solutions
offered by our diverse team.
Across sectors such as wind, wave, tidal energy, subsea cable,
water, and oil and gas, Intertek Metoc’s multi-disciplinary team
operates at the critical interface where engineering design
and asset operation meet environmental limitations. This
enables us to help clients achieve compliance, reduce costs,
and manage risks, all while advancing their journey toward net
zero emissions.
Our team of consultants, scientists, engineers, and regulatory
experts provides assurance and consultancy solutions from
the outset, laying a solid groundwork for safe, economical,
Intertek Methane Clear – providing
accurate and independent
measurement and verification
Our Science-based Customer Excellence
programme moving energy companies
Faster to Net Zero.
What it is: Intertek Methane Clear is our programme that
provides energy companies with accurate and independent
measurement and verification for the reporting of methane
emissions, supporting compliance with local regulatory
regimes and methane emissions reporting. The reporting
of methane emissions is moving from being a voluntary to
a mandated regulatory requirement in major jurisdictions
like the EU, USA, UK, and Canada, who have been finalising
Business lines
Industry Services
Ensuring the safe and optimised
use of customers’ assets and
minimising quality risks in their
supply chains.
Our role: Our Industry Services business
line uses its in-depth knowledge of
industries such as renewable energy,
oilandgas, and petrochemicals to
providecustomers with a diverse and
technologically advanced range of TQA
solutions. The services we offer include
technical inspection, non-destructive
andmaterials testing, and asset
performance management.
Minerals
Providing a wide range of
servicesto the mining and
minerals exploration industry.
Our role: Located in key mining
locationsacross the globe, and operating an
extensive network of mineral laboratories,
Intertek Minerals offers expert inspection,
analytical testing and advisory services to
the Minerals, Exploration, Ore and Mining
industries. We cover each step of the supply
chain from exploration, production, sampling
and inspection, to commercial trade
settlement analysis.
Building & Construction
Providing testing, inspection,
certification and engineering
services to the construction
industry.
Our role: We offer a full suite of
product-related testing and certification
capabilities, plus project-related assurance,
testing, inspection, and consulting services
that are unparalleled in the building and
construction market.
and sustainable projects. Whether we are identifying the
bestsubsea cable route from an environmental or engineering
standpoint or developing environmental modelling scenarios
to meet water quality goals and engineering cost savings, our
experts support early project planning and development by
delivering essential assessments for stakeholder engagement
and project viability.
Our clients gain access to a wide range of expert technical
knowledge, while benefitting from the environmental
consulting and advisory services they need to secure
necessary permits, minimise risks, and streamline costs and
scheduling. They also receive expert guidance on changing
regulatory demands and effective stakeholder engagement,
with the assurance that their engineering designs and asset
operations are safe, reliable, and of the highest quality.
VISIT: INTERTEK.COM
their regulations. Reporting of these emissions needs
to be accurately baselined and monitored, and Methane
Clear is designed to help emitters work towards the Oil &
Gas Methane Partnership 2.0 ('OGMP') standard level of
measurement, reporting and verification ('MRV').
Customer benefit: Through a suite of science-based
solutions that range from direct measurement using aerial
drones and fixed sensors, to inspection and testing, emissions
data management and analysis, and mitigation consulting,
Methane Clear enables companies to effectively reduce
emissions levels and build resilience into their value chains,
creating market trust and transparency for compliance
withregulations.
VISIT: INTERTEK.COM
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
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Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Expanding Intertek CarbonClear’s
certification programme
We have expanded our CarbonClear
industry diversification this year and issued
our first Low Carbon Intensity Certification
for soda ash produced by WE Soda at its
two facilities in Türkiye.
What it is: Intertek CarbonClear offers an independent
certification programme that verifies the actual carbon
emissions generated per unit produced, standardised by
industry and lifecycle stage. The programme provides a
unique platform to consistently evaluate emissions across
all stages of the supply chain, validating and disclosing
the carbon impact or intensity for individual projects or
across a company's entire portfolio. It can also pinpoint
critical areas for emissions reduction compared to peers
andotherindustries, helping to accelerate the transition
toward a lower-carbon economy.
Customer benefit: WE Soda, the world's top producer of
natural soda ash, employs a low carbon intensity solution
to extract soda ash and sodium bicarbonate from trona ore.
We verified their carbon emissions from upstream production
through to packaging. Following Intertek CarbonClear’s
detailed analysis and reporting, certification was awarded to
two soda ash solution mining sites in Türkiye. This enables
WE Soda to demonstrate significant reductions in emissions
to all relevant stakeholders, establish benchmarks against
their competitors, and monitor yearly progress.
VISIT: INTERTEK.COM
Supporting our customers'
investments in healthy building
Our Building & Construction team
unveileda range of innovative Healthy
Building Solutions this year, including a
series of videos that showcase the
resources we offer.
What it is: Our Building & Construction ('B&C')
teamhas launched a comprehensive range of Healthy
BuildingSolutions that address occupant health and
wellbeing, focusing on four key areas that cover resilience,
sustainability, health and acoustics. To complement the
information it has made available on our Healthy Buildings
web pages, the B&C team has also created a series of online
videos to showcase our solutions, in which our experts
delve into these four key areas and help bring them to life
for our customers.
Customer benefit: We support customers’ investments
in healthier buildings, creating spaces that enhance
humanhealth, wellbeing and productivity, while addressing
environmental and economic sustainability. Our Property
Resilience Assessments ('PRAs') take a close look at their
entire building and site, from the roof to the foundation,
inside and out. LEED® Certification for Sustainable
Buildings certifies that our customers’ building projects
meet the rigorous sustainability standards established
by the U.S. Green Building Council. WELL Certification for
healthier spaces demonstrates that a building supports
thehealth and wellbeing of its occupants based on
measurable criteria.
VISIT: INTERTEK.COM
Intertek Group plc
Annual Report & Accounts 2024
1.54
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Financial highlights 2024
2024
£m
2023
£m
Change at
actual rates
Change at
constant rates
Revenue 757.3 728.6 3.9% 8.0%
Like-for-like revenue 757.3 728.6 3.9% 8.0%
Adjusted operating profit 77. 5 65.6 18.1% 25.4%
Adjusted operating margin 10.2% 9.0% 120bps 140bps
World of Energy
Intertek value proposition
Our World of Energy division focuses on
the ATIC solutions we offer to our clients
to develop better and greener fuels as
well as renewables. This division was 22%
of our revenue in 2024 and includes Caleb
Brett, Transportation Technologies ('TT')
and Clean Energy Associates ('CEA').
Strategy
Our TQA Value Proposition provides
worldleading expertise to enable our
clients to benefit from the significant
opportunities in the World of Energy.
Wedo this by providing specialist cargo
inspection, analytical assessment,
calibration and related research and
technical services to the world's
petroleum and biofuels industries.
High-single digit like-for-like revenue growth
We provide rapid testing and validation
services to the transportation industry,
leveraging our Transportation
Technologies subject matter expertise
that is recognised by leading
manufacturers worldwide. We evaluate
everything from automobiles and
energy storage to airplanes, and deliver
top tier testing for emerging markets,
such as autonomous and electric/
hybrid vehicles.
CEA is a market-leading provider of
Quality Assurance, supply-chain
traceability and technical services to
the fast-growing solar energy sector.
Its leading assurance service offering
includes in-line monitoring that allows
clients to oversee the management
and traceability of their supply chains,
offering a comprehensive, end-to-end
service to support customers on their
decarbonisation and energy
sustainability journeys.
Revenue
£757.3m
2023: £728.6m
Adjusted operating margin
10.2%
2023: 9.0%
Percentage of Group revenue
22%
2023: 22%
2025 growth outlook
We expect our World of Energy division
todeliver mid-single digit LFL revenue
growth at constant currency.
Mid- to long-term
growthoutlook
Our World of Energy division will benefit
from increased investment from energy
companies to meet growing demand and
consumption of energy from the growing
global population, the scaling up of
renewables, increased R&D investments
that OEMs are making in EV/hybrid
vehicles and from the development of
greener fuels. Our mid to long-term LFL
guidance at constant currency for the
World of Energy division is low to
mid-single digit revenue growth.
2024 performance
FY 2024 saw our World of Energy-related
business report revenue of £757.3m,
a LFL revenue increase of 8.0% at
constant currency and year on year
growth of 8.0% at constant currency
and 3.9% at actual rates. Adjusted
operating profit was £77.5m, up 25%
year on year at constant currency and
18% at actual rates. Adjusted operating
margin of 10.2% is ahead 140bps
year on year at constant currency.
• Intertek Caleb Brett, the global leader
in the Crude Oil and Refined products
global trading markets, benefitted from
robust momentum reflecting increased
global mobility and higher testing
activities for biofuels and delivered
high-single digit LFL revenue growth.
• Transportation Technologies delivered
high-single digit LFL revenue growth,
driven by increased investment in new
powertrains to lower CO
2
/NOx
emissions and in traditional combustion
engines to improve fuel efficiency.
• Our CEA business reported double-digit
LFL revenue growth as we continue to
benefit from the increased investments
in solar panels which is the fastest
growing form of renewable energy.
In action In action
Intertek Group plc
Annual Report & Accounts 2024
1.55
Operating review Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Business lines
Caleb Brett
Specialised cargo inspection and
analytical assessment services to
the oil and gas, chemical and other
commodities markets.
Our role: We offer global 24/7/365 services
covering cargo and inventory inspection
services, analytical assessment, calibration
andrelated research and technical services
to the world’s petroleum and biofuels
industries.
Transportation Technologies
Providing diverse, rapid testing
and validation services to the
transportation industry.
Our role: Our Transportation Technologies
expertise is recognised by leading
manufacturers worldwide. We evaluate
everything from automobiles and energy
storage to airplanes, and deliver top-tier
testing for emerging markets, such as
autonomous and electric/ hybrid vehicles.
Clean Energy Associates ("CEA")
Provides quality assurance, supply
chain and technical services to the
fast-growing solar energy, energy
storage and green hydrogen
sectors.
Our role: CEA helps maximise the
quality,safety and performance of clients’
operational assets, manages global solar PV,
green hydrogen and energy storage supply
chains, and provides a complete quality
assurance solution through data, analysis
and oversight.
Intertek Caleb Brett Analytical
Stockpile Assessment –
redefining precision in
bulk material measurement
Intertek Caleb Brett’s Analytical Stockpile
Assessment ('ASA') is a patented, cutting-
edge solution that supports client
initiatives by redefining how bulk materials
are measured and valued.
What it is: Intertek Caleb Brett employs a scientifically
proven method that segments stockpiles into layers,
allowing for detailed and reliable analysis. Our ASA
technology guarantees top-tier accuracy with a
remarkable ±1.8% variance in stockpile tonnage, far
surpassing results produced using traditional methods.
The technology is patented in Australia, United States,
United Kingdom, France, Germany, Italy, Poland, Portugal,
Spain, Türkiye, India and South Africa, with a patent
application pending in Brazil.
Customer benefit: Our innovative ASA service offers
customers unmatched precision in estimating the weight
and financial value of their stockpiles across various
sectors, including grains and sugar, fertilisers, mineral
concentrates, coal, petroleum coke, and cement. We can
provide unparalleled accuracy and confidence in managing
these stockpiles, delivering substantial benefits to raw
materials managers, financial auditors, and buyers –
such as reducing financial risks, improving operational
efficiency, and enabling them to make more informed
business decisions.
VISIT: INTERTEK.COM
Clean Energy Associates –
providing market intelligence
A comprehensive understanding of global
supply, technology, pricing, and policy for
the photovoltaic, energy storage, and
green hydrogen sectors.
What it is: Clean Energy Associates ('CEA') provides
tailored solutions, supplying comprehensive knowledge
onglobal supply, technology advancements, pricing
trends, and policy and regulation developments in the
solar power, energy storage, and green hydrogen sectors.
We offer our customers Market Intelligence insights into
suppliers and industry dynamics typically only available
to genuine insiders, delivered through our Syndicated
Reports, Executive Business Reviews, and Bespoke
Consulting services.
Customer benefit: Staying ahead in the evolving
landscape of the clean energy market is difficult due to
its complexity and geopolitical shifts that can disrupt
supply chains. Our Market Intelligence services ensure that
customers are not just keeping pace with the changes,
but they are strategically positioned to capitalise on them.
This ensures that they stay informed and adaptable,
equipped with the most accurate information to help them
make progress in their decarbonisation journey. It also
helps them tackle supplier negotiations, project planning,
site management, and investment choices with assured
confidence, supported by comprehensive data and analysis.
VISIT: INTERTEK.COM
In action
Intertek Group plc
Annual Report & Accounts 2024
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Operating review Continued
1: Strategic Report 2: Sustainability Report 3: Financial Report
Intertek Caleb Brett – expanding
industry leading testing capabilities
Intertek Caleb Brett has been a pioneer in
the field of global, professional, and reliable
bulk commodity inspection for more than
acentury. As part of our commitment to
providing unparalleled quantity and quality
services, we have expanded our capabilities
and laboratory footprint in 2024.
Supporting the local and regional
energy sectors in Guyana
Our Intertek Caleb Brett’s new Georgetown, Guyana
laboratory is equipped with the latest technology and
staffed by a team of highly trained and experienced Intertek
experts. It offers comprehensive fuel testing services,
conducted with the utmost accuracy and adherence
to international standards, providing clients with the
confidence and assurance they need in their fuel products.
Guyana has emerged as a significant player in the global
energy market. By bringing testing capabilities closer to
home, Intertek is helping to streamline operations for local
businesses in Guyana and across the Caribbean region
and reduce turnaround times. This supports the overall
growth, development and competitiveness of the region's
energy sector, while creating new job opportunities in the
community and nurturing local talent.
Strengthening our presence in
Spain’s maritime and energy sectors
Positioned at the crossroads of major global shipping
routes,Algeciras, Spain, is a strategic maritime hub in
Europe.Establishing a new fuel testing laboratory here allows
Intertek Caleb Brett to offer immediate access to essential
fuel and marine gasoil testing and inspection services. These
services include cargo inspection, fuel quantity surveys,
sampling and blending, gauging, stock monitoring, tank
calibration, marine fuels testing for ISO 8217 compliance, and
aromatics content analysis. Staffed by a team of highly skilled
scientists and technicians with decades of experience in fuel
analysis and marine operations, the laboratory uses cutting-
edge technology, such as advanced gas chromatography
and mass spectrometry instruments. All this strengthens
our position as a pioneer in various services critical to the
maritime and energy sectors in the region, while helping
businesses comply with international environmental and
fuelstandards and avoid costly delays.
Expanding our testing capabilities
for animal fats and used cooking oils
Intertek Caleb Brett has made significant investments
to upgrade its New Plymouth, New Zealand laboratory’s
testing capabilities. It now offers full specification
analysis of animal fats and used cooking oils, making it
the only laboratory in New Zealand capable of providing
comprehensive testing of these key materials in the
production of biofuels. This is vital for maintaining strict
quality control and ensuring biofuel production complies
with stringent global standards. Expanding our testing
capabilities not only supports the transition to more
sustainable energy sources but also strengthens New
Zealand’s position in the global renewable energy market.
We are proud to be at the forefront of this important shift.
By providing advanced testing, inspection, and certification
services, Intertek Caleb Brett is committed to supporting
the renewable energy transition and ensuring that the
highest standards of quality and precision are met.
New state-of-the-art facility ensuring
the highest standards in jet fuel
Intertek Caleb Brett's new laboratory is equipped
with all the state-of-the-art technology required to
assess the key parameters essential to jet fuel safety,
reliability, and performance. Strategically situated
on the island of O’ahu, Hawaii, our experts offer a
wide array of testing services that cover chemical
composition, physical properties, environmental
considerations, and overall performance metrics,
aligning with the stringent ASTM D1655 specification,
a global standard for quality. Our comprehensive
evaluations monitor factors such as acidity, sulphur
content, distillation properties, flash point and
API gravity/density. By conducting these detailed
analyses, Intertek Caleb Brett not only ensures
compliance with industry standards but also
significantly contributes to enhancing the safety
and operational efficiency of the aviation industry
in Hawaii and worldwide.
VISIT: INTERTEK.COM/CALEB-BRETT
Reporting of
principal risks and
uncertainties
2006
Single materiality
assessments
begin
2019
Going concern
statement
2002
Our integrated
risk management
framework
2017
Long-term viability
statement
2014
Compliant
with TCFD
recommendations
2022
Double materiality
assessments
begin
2024
Preparing to report
in compliance with
applicable
regulations
2025
The evolution of our risk management approach
Intertek Group plc
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Assessing and
managing our risks.
Intertek has always had a leading
approachtoriskmanagement
Since our listing in 2002, we have reported to our shareholders
in each Annual Report on the sustainability of our business
andoperations.
For most of that period, our focus has been on our financial
sustainability. We have looked at the impact of our risk
environment and our risk mitigation actions through the
lensofour financial performance.
In 2017, we began our end-to-end risk management approach.
Using our framework of risk committees, we started to look at
our changing risk landscape dynamically throughout the year.
This allowed us to drive ownership of risks deeper into our
operations and to put the right mitigation actions in place at
alllevels of ourbusiness.
In 2019, we carried out our first single materiality assessment to
review and reflect how climate and other sustainability risks and
opportunities could impact our financial performance and position.
Our first TCFD statement in 2022 contained our assessment of
the financial risks and opportunities specifically of decarbonisation
(or a failure to decarbonise) on our business and operations.
In line with our ever better approach, we are now taking the next
step in the evolution of our risk management framework. By
conducting a double materiality assessment, we are moving for
the first time from looking at risk and opportunity in the context
of our own footprint (our business, our operations, our people
and our governance) to looking at our entire value chain and our
ecosystem (society and the environment) and the role we play
within it.
This section sets out a description of the
principal risks and uncertainties that could
have a material adverse effect on the Group’s
strategy, performance, results, financial
condition and reputation.
Principal risks and uncertainties
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Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Our TCFD compliance statement
Our principal risks
Long-term viability statement
Intertek’s financial risks and opportunities generated by the
economic, social and natural environment
Environmental, social
and governance matters
that create or erode
enterprise value
Intertek’s impacts
onthe environment
and people
Stakeholders:
Investors
Stakeholders:
Customers, employees, investors, society, suppliers
Positive and negative impacts, real or potential, on the planet
and society that are linked to Intertek’s activities
Assessing our end-to-end sustainability
impacts, risks and opportunities (‘IROs’)
Assessing our IROs on a
double materiality basis
Assessing our climate-related
risks and opportunities
Assessing our principal
risks and uncertainties
Assessing the sustainability
of our business
Financial materiality Environmental and social (Impact) materiality
The visual below provides a summary of how we have
assessed our end-to-end sustainability IROs on a double
materiality basis.
Planet and societyIntertek Intertek Planet and society
READ MORE PAGE 1.59
READ MORE PAGE 1.65
READ MORE PAGE 2.07 IN REPORT 2
Intertek Group plc
Annual Report & Accounts 2024
1.59
Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Risk framework
The Board has overall responsibility for the establishment and
oversight of the Group’s risk management framework. This work
is complemented by the Group Risk Committee, which manages,
assesses and promotes the continuous improvement of the
Group’s risk management, controls and assurance systems.
This risk governance framework is described in more detail in the
Directors’ report on pages 2.62 and 2.81 in Report 2.
The Group Audit Director and the Group General Counsel, who
report to the Chief Financial Officer and Chief Executive Officer
respectively, have accountability for reporting on the key risks
that the Group faces, the controls and assurance processes in
place and any mitigating actions or controls. Both roles report
tothe Audit Committee, attend its meetings and meet with
individual members each year, as required.
Risks are formally identified and recorded in risk registers, owned
by each of the Group’s divisional, regional and functional risk
committees. Risk registers are updated throughout the year by
these risk committees and are used to plan the Group’s internal
audit and risk strategy.
In addition to the risk registers, relevant operational and
functional leaders for each site are required to complete
year-end compliance certification to confirm that the right
management processes and controls are in place and are
operationally effective. The compliance certification covers
all of the Group’s Core Mandatory Controls ('CMCs'), which
cover Compliance, Sales, Operations, Marketing, Communications,
our use of intermediaries, IT, Finance, Sustainability and
People management.
Principal risks
The Group is affected by a number of risk factors, some of which,
including macroeconomic and industry-specific cyclical risks, are
largely outside the Group’s control. Some risks are particular to
Intertek’s operations. The principal risks of which the Group is
aware are detailed on the following pages, including a
commentary on how the Group mitigates these risks. These
risksand uncertainties do not appear in any particular order
ofpotential materiality or probability of occurrence.
There may be other risks that are currently unknown or regarded
as immaterial which could turn out to be material. Any of these
risks could have the potential to impact the performance of the
Group and its assets, liquidity, capital resources and reputation.
Changes to principal risks
Our principal risks continue to evolve in response to our changing
risk environment. We have evolved Regulatory and political risk
into Geopolitical risk as a principal risk for 2024 since our most
recent risk exercise identified no significantly material risks
relating to regulatory developments.
Long-term viability statement
In accordance with provision 31 of the 2018 UK Corporate
Governance Code, the Directors have assessed the viability of
the Group over a five-year period to 31 December 2029, by
carrying out a robust assessment of the potential impact of the
principal risks and uncertainties on the Group’s current position,
including those that would threaten the Group’s business model,
future performance, solvency or liquidity. This is documented on
the following pages.
The Directors have determined that a five-year period is
anappropriate period over which to provide the viability
statement of the Group, as the Group’s strategic review
coversafive-year period.
Furthermore, the Directors believe the five-year period
appropriately reflects the average business cycles of the
business lines in which the Group operates, particularly in
relation to capital expenditure investment horizons. In modelling
the viability scenario, we have made the assumption that we
willbe able to refinance external debt and renew committed
facilities as they become due.
In addition to the bottom-up strategic review process where the
prospects of each business line are reviewed, an assessment has
been made of the potential operational and financial impacts on
the Group of the principal risks and uncertainties outlined in
thefollowing pages. The Directors have also assessed certain
combinations of these principal risks and uncertainties in a
number of severe, but plausible, scenarios, as well as the
effectiveness of any mitigating actions as set out in the table
onpages 1.60-1.64. The Directors have assessed that climate
change will not have a meaningful impact on the viability of
theGroup over the five-year period to 31 December 2029.
The Group has a broad customer base across its multiple
business lines and in its different geographic regions and is
supported by a robust balance sheet and strong operational cash
flows. The Board considers that the diverse nature of business
lines and geographies in which the Group operates significantly
mitigates the impact that any of the modelled scenarios might
have on the Group’s viability.
Based on this assessment, the Directors confirm that they have
a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due
overthe period to 31 December 2029. The statement on going
concern is in the Directors’ report on page 2.89 in Report 2.
Intertek Group plc
Annual Report & Accounts 2024
1.60
Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Viability scenario analysis
Regulatory or
geopolitical
environment
change
Description
Failure to identify, understand and
respond to regulatory or geopolitical
changes results in loss of revenue,
profitability, market share, and/or
adversely changes the competitive
landscape.
Associated principal risks
• Industry and competitive landscape
• Customer service
• Geopolitical
• People retention
• Reputation
• Macroeconomic
Ethical and/or
quality breach
Description
An ethical and/or quality breach
leads to litigation (including
significant fines and debarment
from certain territories/activities),
reputational damage, loss of
accreditation and erosion of
customer confidence.
Associated principal risks
• Business ethics
• People retention
• Financial
• Reputation
• IT systems and data security
• Health, safety and wellbeing
• Macroeconomic
Customer
service issue
Description
Failure to respond/adapt to a
customer service issue leads
toaloss of key customers and
detrimentally impacts reputation.
Associated principal risks
• Industry and competitive landscape
• Customer service
• Business ethics
• People retention
• Reputation
• Macroeconomic
IT systems
breach
Description
A serious data security/IT systems
breach results in a significant
financial penalty and a loss of
reputation among customers.
Associated principal risks
• Customer service
• People retention
• IT systems and data security
• Reputation
• Macroeconomic
Scenario Scenario Scenario Scenario
Intertek Group plc
Annual Report & Accounts 2024
1.61
Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
1
Reputation
3
People retention
2
Customer service
Operational
Reputation is key to the Group maintaining and growing its
business. Reputation risk can occur in a number of ways: directly
as the result of the actions of the Group or a Group company itself;
indirectly due to the actions of an employee or employees; or
through the actions of other parties, such as joint venture
partners, suppliers, customers or other industry participants.
Possible impact
• Failure to meet financial performance expectations.
• Exposure to material legal claims, associated costs and wasted
management time.
• Destruction of shareholder value.
• Loss of existing or new business.
• Loss of key staff.
Mitigation
• Quality management systems; adherence to these is regularly
audited and reviewed by external parties, including accreditation
bodies.
• Risk management framework and associated controls and
assurance processes, including contractual review and liability
capswhere appropriate.
• Code of Ethics, which is communicated to all staff, who undergo
regular training.
• Zero-tolerance approach with regard to any inappropriate
behaviour by any individual employed by the Group or acting on
theGroup’s behalf.
• Whistleblowing programme, monitored by the Group Risk
Committee, where staff are encouraged to report, without risk, any
fraudulent or other activity likely to adversely affect the reputation
of the Group.
• Relationship management and communication with external
stakeholders.
2024 update
This risk remains stable compared with 2023. The Group continues to
develop risk mitigation activities such as the enhancement of its social
media policy, and development of CMCs.
A failure to focus on customer needs, to provide customer
innovation or to deliver our services in accordance with our
customers’ expectations and our Customer Promise.
Possible impact
• Customer dissatisfaction and customer loss.
• Gradual erosion of market share and reputation if competitors are
perceived to have better, more responsive or more consistent
service offerings.
Mitigation
• Net Promoter Score (‘NPS’) customer satisfaction, customer sales
trends and turnaround time tracking.
• Global and Local Key Account Management (‘GKAM’/’LKAM’)
initiatives in place.
• Customer feedback meetings.
• Customer claims/complaints reporting.
• Tracking and process for regional and divisional claims, complaints
and quality issues.
2024 update
This risk remains stable compared with 2023.
The Group operates in specialised sectors and needs to attract and
retain employees with relevant experience and knowledge in order
to take advantage of all growth opportunities.
Possible impact
• Poor management succession.
• Lack of continuity.
• Failure to optimise growth.
• Impact on quality, reputation and customer confidence.
• Loss of talent to competitors and lost market share.
Mitigation
• HR strategy, policies and systems covering recruitment
andonboarding.
• Training, development and reward programme to retain and
motivateemployees.
• Succession planning to ensure effective continuation of leadership
and expertise.
• Employee wellbeing and support programmes.
2024 update
This risk remains stable compared with 2023. We continue to develop our
risk mitigation in this area with enhanced HR strategies and policies.
Intertek Group plc
Annual Report & Accounts 2024
1.62
Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Operational (continued)
5
Health, safety and
wellbeing
Macroeconomic factors such as a global/market downturn, inflation,
supply chain and logistics restrictions, materials shortages, and
contraction/changing requirements in certain sectors.
Possible impact
• Impact on revenue.
• Falling market share.
• Shrinking customer base.
• Impact on share price.
Mitigation
• Continued focus on developing business in new markets and for
newcustomers.
• Focus on innovations in our service offerings.
• Monitor trends and customer pipelines.
• Conduct regular strategic and business line reviews, including
budget forecasting.
• Monitor the impacts of external risk factors and maintain access to
data and analysis from our external advisers.
2024 update
This risk remains stable compared with 2023.
Any health and safety incident arising from our activities could
result in injury to Intertek’s employees, sub-contractors, customers
and/or any other stakeholders affected. Issues impacting the
wellbeing of our people resulting from pandemics and other similar
events could have significant impact.
Possible impact
• Individual or multiple injuries to employees and others.
• Litigation or legal/regulatory enforcement action (including
prosecution) leading to reputational damage.
• Loss of accreditation.
• Erosion of customer confidence.
• Wellbeing – individual or multiple instances of stress-related issues
and/or illnesses, absenteeism, and related impacts on morale.
Mitigation
• Quality management and associated controls, including safety
training, appropriate personal protective equipment, health and
safety policies (including due diligence on sub-contractors),
meetings and communication.
• Avoiding fatalities, accidents and hazardous situations is paramount.
It is expected that Intertek employees will operate to the highest
standards of health and safety at all times and there are controls in
place to reduce incidents.
• Business continuity planning.
• Employee wellbeing programme.
2024 update
This risk remains stable compared with 2023.
A failure to identify, manage and take advantage of emerging and
future risks. Examples include: missing the opportunities provided
by new markets and customers; a failure to innovate in terms of
service offering and delivery; the challenge of radically new and
different business models; the failure to foresee the impact of, or
adequately respond to and comply with, changing or new laws and
regulations; failure to anticipate and address the operational,
strategic, regulatory and reputational impact of climate change and
environmental factors; and failure to identify and take advantage of
the impact of changes to our clients’ operations and supply chains.
Possible impact
• Failure to maximise revenue opportunities.
• Failure to take advantage of new opportunities.
• Lack of ability to respond flexibly.
• Erosion of market share.
• Impact on share price.
• Sanctions and fines for non-compliance with new laws etc.
Mitigation
• GKAM and LKAM initiatives in place.
• Diversification of customer base.
• Focus on new services and acquisitions.
• Tracking of new laws and regulations.
• Regular strategic and business line reviews.
• Development of ATIC-selling initiatives.
• NPS customer research to understand customer satisfaction.
• Continuing to drive innovation at the core.
2024 update
This risk remains stable compared with 2023.
4
Macroeconomic
6
Industry and
competitive landscape
Intertek Group plc
Annual Report & Accounts 2024
1.63
Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Systems integrity: major IT systems integrity issue, or data
security breach, either due to internal or external factors such
asdeliberate interference, or to power shortages/cuts etc.
Systems functionality: a failure to define the right IT strategies,
maintain existing IT systems or implement new IT systems with
the required functionality and which are fit for purpose, in each
case to support the Group’s growth, innovation and competitive
customer offering.
Data security: a failure to adequately protect the Group’s
confidential information, customer confidential information
orthepersonal data of the Group’s employees, customers or
otherstakeholders.
Possible impact
• Loss of revenue due to downtime.
• Potential loss of sensitive data with associated legal implications,
including regulatory sanctions and potential fines.
• Potential costs of IT systems' replacement and repair.
• Loss of customer confidence.
• Damage to reputation.
• Loss of revenue/profitability if we fail to adopt an IT investment
strategy which supports the Group's growth, innovation and
customer offering.
Mitigation
• Information systems policy and governance structure.
• Regular system maintenance.
• Backup systems in place.
• Disaster recovery plans that are constantly tested and improved to
minimise the impact if a failure does occur.
• Global information security policies in place (IT, data protection,
cyber security).
• Adherence to IT finance systems controls (part of CMCs).
• Adherence to IT general controls.
• Internal and external audit testing.
• Processes to ensure compliance with GDPR.
2024 update
This risk remains stable compared with 2023. Our IT security team
continues to develop security enhancements through a multi-year IT
risk reduction programme, strengthening core IT infrastructure.
Agreeing unfavourable terms with customers and/or suppliers
asaresult of not following agreed contract review processes,
and/or failing to negotiate appropriate terms.
Possible impact
• Margin-decretive work.
• Onerous liabilities and exposures.
• Non-optimised pricing.
• Financial exposures due to claims and litigation.
Mitigation
• Any deviations from our standard contract terms are subject to
legal review and approval, and all contracts must be approved in
line with our Authorities Grid (which sets out approval limits based
on contract values and other relevant factors).
• We continue to operate our claims notification procedure, including
claims management and insurer liaison where needed.
• Both our contracting and claims processes are supported by
training programmes for relevant staff, and the use of relevant
systems and databases.
2024 update
This risk remains stable compared with 2023.
8
Contracting
7
IT systems and
data security
Intertek Group plc
Annual Report & Accounts 2024
1.64
Principal risks and uncertainties Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Legal and regulatory Financial
A failure to identify and respond appropriately to political events,
decisions and conditions across the globe, and their repercussions,
could impact demand for the Group’s services or the Group’s ability
to grow, innovate and/or provide a competitive customer offering
inany existing or new industry sector or market. Such events,
decisions and conditions may also have consequences for our
peopleand those working for us, whose safety and wellbeing is
ourparamount concern.
Possible impact
• Loss of revenue, profitability and/or market share.
• Increase to costs of operations, reduction in profitability.
• Reduction in the attractiveness of investment in specific
businesses, sectors or markets and/or adverse change in the
competitive landscape.
• Physical and psychological harm and or lack of security caused to our
employees, those working on our behalf and their families.
Mitigation
• Monitoring of political developments.
• Agile and rapid risk mitigation response to evolving situations
focusing on employee safety and security issues.
• Analysis of impact of political changes on operational standard
operating procedures and Group policies.
• Membership of relevant associations, e.g. TIC Council, with related
advocacy and liaison activities to keep informed through multiple
communication channels.
2024 update
After the focus adjustment, this risk remains stable compared with 2023.
Non-compliance with Intertek’s Code of Ethics (‘the Code’) and/or
related laws such as anti-bribery, anti-money laundering, and
anti-competition legislation. Non-compliance could be either
accidental or deliberate, and committed either by our people or
sub-contractors who must also abide by the Code.
Possible impact
• Litigation, including significant fines and debarment from certain
territories/activities.
• Reputational damage.
• Loss of accreditation.
• Erosion of customer confidence.
• Impact on share price.
Mitigation
• Annual Code of Ethics training and sign-off requirement.
• Whistleblowing programme, monitored by the Group Risk Committee,
where staff are encouraged to report, without risk, any fraudulent or
other activity likely to adversely affect the reputation of the Group.
• Enhanced processes for engagement with suppliers and third parties.
• Zero-tolerance approach with regard to any inappropriate
behaviourby any individual employed by the Group or acting
ontheGroup’s behalf.
• The Group employs local people in each country who are aware of
local legal and regulatory requirements. There are also extensive
internal compliance and audit systems to facilitate compliance.
Expert advice is taken in areas where regulations are uncertain.
• The Group continues to dedicate resources to ensure compliance
with relevant legislation and internal policy.
2024 update
This risk remains stable compared with 2023. Ongoing annual
confirmations ensure that staff verify compliance with the Code.
During 2024, 127 (2023: 106) non-compliance issues were reported
through the whistleblowing hotline and other routes. All were
investigated, with 29 (2023: 39) substantiated or partially substantiated
by the investigation; in relation to these, appropriate corrective and
disciplinary action was taken.
Risk of theft, fraud or financial misstatement by employees and
those acting on behalf of Intertek or third parties. On acquisitions
or investments, the financial risk or exposure arising from due
diligence, integration or performance delivery failures.
Possible impact
• Financial losses with a direct impact on the bottom line.
• Large-scale losses can affect financial results.
• Potential legal proceedings leading to costs and/or management
time.
• Corresponding loss of value and reputation could result in funding
being withdrawn or provided at higher interest rates.
• Possible adverse publicity.
Mitigation
• The Group has financial, management and systems controls in
place to ensure that the Group’s assets are protected from major
financial risks.
• Adherence to Authorities Grid (which sets approval limits for
financial transactions).
• Stringent controls on working capital and cash collection.
• Legal, financial and other due diligence on M&A and other
investments.
• Monitoring adherence to our CMCs, and tracking of remediations
by our compliance and finance controls teams and using our
framework of risk committees.
• A detailed system of financial reporting is in place to ensure that
monthly financial results are thoroughly reviewed. The Group also
operates a rigorous programme of internal audits and there are
also management reviews. Independent external auditors review
the Group’s half-year results and audit the Group’s annual financial
statements.
2024 update
This risk remains stable compared with 2023.
We continue to review and update the CMCs on an annual basis and
use them for year-end compliance certification.
9
Geopolitical
10
Business ethics
11
Financial
Intertek Group plc
Annual Report & Accounts 2024
1.65
3: Financial Report2: Sustainability Report1: Strategic Report
Our TCFD journey
We believe that, as a sustainable
business and a leading provider of
sustainability solutions to more than
400,000 companies, Intertek has an
important role to play in taking action
on climate change and supporting the
transition to a low-carbon economy –
both for our clients and in our own
value chain.
We have set ambitious targets to get to net zero emissions
by 2050, with interim targets to 2030, which have been
validated by the Science Based Targets initiative ('SBTi').
In2024, our rigorous monthly performance management
ofclimate-related action plans delivered operational market-
based emissions reductions of 16.7% against 2023.
Climate change policies, disclosure requirements, and
public, consumer and investor pressure have led to a 'race
to net zero' by governments and corporations – with the
aim being decarbonisation of the global economy in line
with Paris Agreement goals to limit global warming.
Decarbonisation to a point of net zero carbon emissions
will involve economic, political and societal changes. The
key to achieving it lies in the energy transition – a shift
from reliance on fossil fuels to renewables and green
energy sources, with the significant changes in energy
infrastructure that involves. It will require a reduction in
the carbon footprint of global activities: transport and
Putting climate change
and decarbonisation
in context
travel; facilities and construction; supplies consumed; and
goods and services produced. The likelihood – based on
the current rate of progress – is that achieving net zero
within the Paris Agreement timeframe will require the scale
development and use of new carbon capture and storage
technologies, together with breakthrough innovations
to accelerate the reduction of carbon emissions linked
to manufacturing, transportation and consumption.
Conversely, if decarbonisation goals are not met, the
effects of climate change will increase and extreme
weather events will be more likely. Governments and
corporations will need to consider mitigating the risks of
this outcome by ensuring that their energy, manufacturing
and supply networks are resilient and secure.
TCFD statement
1.66
Intertek Group plc
Annual Report & Accounts 2024
TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Our TCFD compliance statement
The TCFD requires the disclosure of information aligned to
its core elements – governance, strategy, risk management,
and metrics and targets. The TCFD aims to improve the
disclosure of climate-related risks and opportunities and
provide stakeholders with the necessary information to
undertake robust and consistent analyses of the potential
financial impacts of climate change. We recognise the
value that the recommendations bring and continue to
align and enhance our climate-related disclosures.
We set out below our climate-related financial
disclosures, which are consistent with all TCFD
recommendations and recommended disclosures
1
.
CO
2
reduction targets
for all employees
included in yearly
compensation
Compliant with TCFD
recommendations
Systemic monthly
performance management
ofemission reductions
andaction plans
Country-specific targets
and action plans to
reduce emissions
Deepened
understanding of
climate-related risks
and opportunities
across the organisation
Continued monthly
performance
management of
emission reductions
andaction plans
Our TCFD journey
Our TCFD disclosures are set outin five sections:
Section 1: our governance of climate-related risks and
opportunities
Section 2: how we consider climate change in our strategy
Section 3: our climate-related risk management approach
Section 4: our climate-related metrics and targets
Section 5: our climate change methodology and approach
We have integrated climate-related disclosures
throughout our Annual Report. These are included
through cross-references to other sections
containing further relevant information.
1. TCFD: ‘Recommendations of the Task Force on Climate-related Financial
Disclosures’ and any relating annex guidance.
Systemic CO
2
emission
collection at all sites/
operations
First Group-wide
GHG emission
reduction target set
Commitment to net
zero by 2050
Voluntary disclosure
againstTCFD
recommendations
SBTi validation
2018
2022 20242017
2021
2020
2023
Intertek Group plc
Annual Report & Accounts 2024
1.67
TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Section 1: Governance
TCFD recommended disclosures Further information
a) Describe the Board’s oversight of climate-related
risks and opportunities
• Our Governance structure
(pages 2.62-2.63 in Report 2)
b) Describe management’s role in assessing and
managing climate-related risks and opportunities
• Internal control and risk management
(page 2.81 in Report 2)
1 a) Our Board’s oversight of climate-related risks and opportunities
Our Board of Directors is responsible for the oversight of climate-related risks and opportunities. Climate-
related risks are integrated into every Board agenda as part of the Board’s review of risks and our integrated
risk, control and compliance approach. Climate-related issues are considered as part of the Board’s strategic
review sessions and reflected in the Board’s strategic review and guidance.
The Board takes emerging and systemic climate-related risks and opportunities into account:
1. when considering the Group Risk footprint and our internal controls/risk management policies at each
Boardmeeting; and
2. in reviewing the Group’s principal risks and in the risk modelling that feeds into the long-term
viabilitystatement.
The Board is able to draw on the climate-related expertise of our Non-Executive Directors. Gill Rider (who
retired from the Board in May 2024) serves as President of the Marine Biological Association. Tamara Ingram
ischair of the ESG committee for Marks and Spencer Group plc. Steve Mogford's experience across a breadth
ofsectors and his commitment to sustainability will further enhance the Board's climate-related expertise
following his appointment on 1 January 2025.
The Group’s Head of Sustainability and EVP – Sustainability report to the Board on our climate-related risks
andopportunities, respectively, from both an internal and external perspective, as part of an annual in-depth
Intertek Total Sustainability review. In addition, the Board receives specific updates on our TCFD approach and
progress during the year. The Board monitors and oversees our progress against our science-based targets and
our climate-related action plans.
1 b) Management’s role in identifying, assessing and managing climate-related risks
andopportunities
We believe that assessing and managing climate-related risks and opportunities is an integral part of our
overall integrated risk management approach. Our framework of regional, divisional and functional risk
committees considers climate-related risks and opportunities and identifies and implements appropriate
actionplans. This creates an awareness and ownership of climate-related risks and opportunities within
ouroperational, HR, compliance, finance and insurance leadership.
In addition, climate-related risks and opportunities are identified, managed and tracked by:
• our Net Zero Steering Committee (whose members include our Group CEO, Group CFO, Group Company
Secretary, EVP – Sustainability and Head of ESG and Non-financial Reporting) focuses on the implementation
and performance of our net zero roadmap and our science-based emission reduction targets to meet our
ambition to get to net zero by 2050;
• our Beyond Net Zero Steering Committee (whose members include our Group CEO, Group Company Secretary,
Group Head of Sustainability, EVP – Sustainability, SVP – Corporate Development, Group Chief Marketing &
Communications Officer and Group General Counsel), which has oversight of our Total Sustainability agenda
including internal and external climate-related actions over and above our greenhouse gas ('GHG') and net zero
commitments; and
• our specific CEO-led working group on TCFD/climate-related risks and opportunities.
Our approach means that we can apply the management expertise we have from providing TCFD and other
climate-related ESG Assurance solutions to our clients in the assessment and management of our own risks
and opportunities.
Section 2: Strategy
TCFD recommended disclosures Further information
a) Describe the climate-related risks and opportunities
the organisation has identified over the short,
medium, and long term
• Principal risks and uncertainties (pages 1.57-1.64)
b) Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy and financial planning
• Strategic Report: Our business model
(pages 1.18-1.29)
• Sustainability Report (Report 2)
• Financial Report (Report 3)
c) Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario
• Strategic Report: Our business model
• Sustainability Report (Report 2)
• Financial Report (Report 3)
At the high level, our ambition is to become a net zero emissions business by 2050 while mitigating the
physical impact of climate change on our operations and supporting our clients with sustainability solutions.
Innovative sustainability services have been at the core of our business and strategy for over 100 years. Today’s
'race to net zero' by governments and corporations is beneficial to Intertek given our investments in sustainability.
These include our operational sustainability solutions; our carbon emissions certification, CarbonClear™; our ESG
disclosures verification; and our corporate sustainability certification, TSA. Ongoing dependency on traditional oil
and gas, and the significant investments required to scale up renewable energy, will mean our Industry Services
businesses should benefit from traditional energy investment and the parallel developments in the renewables
space – while our differentiated World of Energy value proposition and our total energy expertise position us
strongly to take advantage of the global energy transition required to get to net zero.
The world will face difficulties in meeting Paris Agreement targets and addressing climate change unless:
allcompanies, public and private, commit to reduce carbon emissions to net zero; significantly increased investments
are made in renewables; and there is breakthrough innovation to accelerate carbon emission reductions and
facilitate carbon capture and storage. This negative outcome should lead to increased demandforour services as it
would lead to an increased focus on developing low-carbon products and other innovations and technologies that
will reduce emissions, including increased investment in carbon capture andstorage.
Intertek Group plc
Annual Report & Accounts 2024
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TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
2 a) Our climate-related risks and opportunities
Based on our supply and demand model and decarbonisation scenarios (details of which are set out in
section5), our view of Intertek’s climate-related risks and opportunities is as follows.
Climate-related opportunities
Opportunity area Description of opportunities
Energy
transition
The key question for our energy-related businesses is what the risks and opportunities of
a transition to lower carbon/renewable energy will look like, and over what timeframe.
The world will be dependent on traditional oil and gas for longer than people think: there
has been under-investment in oil and gas exploration since 2015; there is structural
under-investment in alternative energy sources; and renewables will take time to scale.
All of those factors create risks for governments and economies in moving away too
quickly from traditional energy sources.
This will require our clients to make incremental investments in traditional oil and gas
infrastructure and E&P. Our Industry Services businesses should therefore benefit over
the next 20 to 25 years both from traditional energy investment and the parallel
developments in the renewables space.
Our Caleb Brett business should benefit from the increasing global demand for oil and gas
in the short term, and in the medium to long term continue to benefit from an increase in
the production and consumption of oil-related products as well as the development/
growth of greener fuels – biofuels and synthetic. Our clients will need to make significant
investments in traditional oil and gas if they are to continue to meet the growing global
energy demand.
The carbon capture and carbon removal technologies which will be required to achieve
net zero targets are currently at an early stage of development and it is likely that
increased investments will be required to accelerate their production and availability: this
should benefit our engineering-based inspection businesses within Industry Services.
The energy transition that certain of our traditional oil and gas clients face as they move
to being total energy providers underlines the importance of our differentiated World of
Energy value proposition. Intertek’s range of energy expertise is able to support our
clients across the full World of Energy spectrum: from traditional oil and gas, petroleum
refining and distribution, petrochemicals and power generation to nuclear power, solar,
biofuels, tidal, wave and wind power. This gives Intertek a high-level, cross-sectional view
of energy industry topics and trends that we believe will position us strongly to take
advantage of current and future business development linked to the energy transition.
Opportunity area Description of opportunities
Carbon
footprint
transition
For our Consumer Products businesses, the risks and opportunities of decarbonisation
will be linked to our clients’ transition to lower-carbon logistics, manufacturing/
production and supply chain networks.
We expect consumer spending on products to continue to increase and the number
ofSKUs produced to also increase. An increasing consumer and regulatory focus on
sustainability will lead to changes in demand for products with lower carbon footprints.
Equally, manufacturers’ own sustainability goals will lead them to seek raw materials with
lower carbon footprints and to develop lower carbon footprint products.
We believe that corporations will face difficulties in achieving their net zero targets given
the financial, organisational and practical complexities of transitioning to low-carbon
footprint operations. We therefore expect the demand for existing products to stay high
for longer. Given the difficulties in getting to net zero without R&D and investments in
logistics and supply chains, our Consumer Products businesses will benefit from higher
corporate investments in R&D to design low-carbon products at the start of the value
chain, and from investments in supply chain relocations closer to home markets to reduce
carbon footprints and increase resilience.
Policy Climate-related laws and regulations will increase over time.
In the short term, governments are likely to limit policies which require mandatory
behavioural changes to the industry sectors which are the most critical to
decarbonisation: energy, infrastructure and transportation. It is likely that corporates
inother industry sectors will be encouraged to decarbonise by increasing disclosure
andtransparency requirements.
The regulatory approach over the medium to long term will change depending on
companies’/countries’ success in meeting Paris Agreement targets, and regulation will
become less voluntary and more mandatory over time if those targets are likely to be
missed based on existing behaviours.
We expect to benefit from increased regulation to drive investment and product
development by our clients in the energy, infrastructure and transportation sectors.
We expect our Business Assurance businesses to benefit from an increase in supplier
audit and management solutions as corporations seek to address their scope 3/supply
chain carbon emissions.
ESG disclosure requirements are likely to increase in response both to new regulations
and disclosure standards and to increasing investor and stakeholder expectations. We
expect this to lead to increased demand for our ESG disclosure/verification services.
Intertek Group plc
Annual Report & Accounts 2024
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TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Climate-related risks
Risk area Description of risk
Physical
impacts
We consider that there are three types of possible physical impacts:
1. Direct physical impacts, where the increased frequency and/or severity of extreme
weather events causes an increased incidence of disruption to our own operations/
supply chain/transportation networks;
2. Client physical impacts, where the extreme weather events cause disruption to our
clients’ operations and therefore changes to client demand – or the geographic location
of client demand – for our services; and
3. Economic physical impacts, where temperature increase and extreme weather events
reduce economic activity, leading to a fall in demand for our services in line with a fall in
consumer demand/client production.
Based on our natural catastrophe experience and modelling, and because of the
capital-light nature of our operations and our ability to redirect work within our own
network, we believe that the impacts of extreme weather events to Intertek are likely
tobe local and not material at the Group level.
2 b) The impact of climate-related risks and opportunities on our businesses,
strategyandfinancialplanning
Intertek has been a global thought and innovation leader in sustainability services for decades,
andsustainability services are core to our global business. We help customers across all aspects
ofsustainability, covering all major industries, with end-to-end sustainability solutions.
Climate-related opportunities are one part of our overall sustainability strategy. At the high level, we believe
that the actions which companies and corporations will need to take to transition to a low-carbon economy
willbe an opportunity for us and will accelerate the demand for our ATIC solutions, including:
• our climate-related operational sustainability services (such as energy efficiency, carbon footprint
orzerowaste to landfill certifications);
• our corporate sustainability solutions (where we help corporations to establish and validate the
effectiveness of their own sustainability programmes); and
• our Intertek ESG Solutions (where we independently verify our clients’ sustainability reporting
anddisclosures).
We continue to develop innovative ATIC service offerings to support our clients’ low-carbon transition aims
andto enable them to comply with the increasing regulatory requirements relating to sustainability and ESG.
Our World of Energy businesses continue to scale up investments in strategic growth areas driven by
climate-related factors, such as:
• An increase in total energy demand driven by GDP and population growth.
• The need to address structural under-investment in traditional oil and gas while renewables lack scale.
• Technology and infrastructure investments needed to build scale renewable infrastructure.
• The significant investments and innovations required to meet net zero pathways, including developments
inhydrogen, synthetic fuels, carbon capture and carbon storage.
Our strategy includes M&A investments such as our acquisition of Clean Energy Associates, which has enabled
us to expand our sustainability service offering in the fast-growing quality assurance market for solar energy
and energy storage. It also includes organic innovations such as Intertek Hydrogen, Intertek CarbonClear™ and
CarbonZero, and Intertek Green R&D.
Our climate-related risks and opportunities assessment also feeds directly into our wider strategy, portfolio
and financial planning, including our planning on:
• climate-change mitigation activities and our net zero action plans; and
• the location of our facilities.
We believe the impact of climate-related risks and opportunities is as follows:
Climate-related
opportunities
Timeframe Scenario
Financial impactShort Medium Long RCP4.5 RCP8.5
Transition impacts
Energy transition ◊ ◊◊ ◊◊◊ *
See note 1 below Carbon footprint transition ◊ ◊◊ ◊◊◊ *
Policy impacts ◊ ◊◊ ◊◊◊ *
Climate-related risks
Physical impacts ◊ ◊◊ * See note 2 below
Key: ◊ – ◊◊◊ = low – high impact
* Scenario sensitivity
Note 1: Our pre-Covid (2014 – 2019) organic revenue CAGR was c.3%. Sustainability/ESG services were a driver of that revenue growth.
Weexpect the Group revenue growth from Sustainability/ESG services to accelerate.
Note 2: In order to assess our physical impact risk, we have continued to work with Willis Towers Watson ('WTW') to carry out a portfolio exposure
assessment based on scenario modelling supported by WTW’s Climate Diagnostic technology platform. For this purpose, our portfolio includes
933 sites (2023: 943 sites) and associated assets and revenues. The result is an assessment of the percentage of our portfolio that is exposed
to a material level of climate-related risk over four time periods (today; 2030; 2050; 2100) and under two scenarios (RCP4.5 and RCP8.5).
Percentage of portfolio exposed (%)
% of portfolio (assets & revenues) exposed to physical impact risks
Climate Scenario: RCP4.5 (2–3ºC)
Precipitation Heat River flood (defended) Drought
Fire
Sea level rise
Tropical cyclone
Extratropical cyclone
2024
2030
2050 2100
50% of portfolio exposed
to at least 80 heatwave
days per year by 2050,
compared to 37% today
13% in river flood zones
by 2050. 1% of flooding
improbability in a year
Slowly increasing portion
of locations exposed to
at least 4 months of
drought per year
10% of the portfolio
exposed to fire weather
conditions for at least 80
days in a year
4% of the portfolio
exposed to extreme risk
of flooding from storm
surge events and sea
level rise by 2050
Small and largely unchanged portion of the
total portfolio exposed to severe windstorms
generating damaging gusts (either from
tropical cyclones i.e. hurricanes or
extratropical cyclones i.e. winter storms)
49% exposed to at least
5 days of heavy rainfall
over 30mm by 2050
compared to 42% today
53
42
37
54
2
2 2
5
3
4 4
9
16
7
17
11
14
49
45
47
50
2
2 2
4 4
10 10
11
10
14
13
Percentage of portfolio exposed (%)
% of portfolio (assets & revenues) exposed to physical impact risks
Climate Scenario: RCP8.5 (4ºC)
Heat Precipitation Drought River flood (defended)
Fire
Sea level rise
Tropical cyclone
Extratropical cyclone
2024
2030
2050 2100
56% of the portfolio
exposed to at least 80
heatwave days per year
by 2050, compared to
37% today
52% of the portfolio
exposed to at least 5
days of heavy rainfall
over 30mm by 2050
compared to 42% today
Increasing portion of
locations exposed to at
least 4 months of
drought per year
13% in river flood zones
by 2050. 1% probability
of flooding in a year
Almost consistent
portion of the portfolio
exposed to fire weather
conditions for at least 80
days in a year
4% of the portfolio
exposed to extreme risk
of flooding from storm
surge events and sea
level rise by 2050
Small and largely unchanged portion of the
total portfolio exposed to severe windstorms
generating damaging gusts (either from
tropical cyclones i.e. hurricanes or
extratropical cyclones i.e. winter storms)
37
71
42
56
2
2
5
3
4
5
9
19
11
14
7
45
50
56
47
52
2 2
2
3
4 4
11 11
14
13
10
26
Intertek Group plc
Annual Report & Accounts 2024
1.70
TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Figure 1:
Physical risk exposure
under an RCP4.5 scenario:
Figure 2:
Physical risk exposure
under an RCP8.5 scenario:
Intertek Group plc
Annual Report & Accounts 2024
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TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
The assessment shows that our broad geographic footprint and proven high-quality cash generative earnings
model (covered in more detail in 2 c) below) is an advantage for long-term climate resilience. Nevertheless, it
does indicate an increased physical impact exposure to our portfolio, varying by type of climate-related
extreme weather event, under both the RCP4.5 and RCP8.5 scenarios:
• a low to medium increase by 2050 in exposure to chronic (extended, non-localised) weather events
– heat, precipitation, drought, sea level rise; and
• a low increase by 2050 in exposure to acute (localised, one-off) weather events – river floods, fire, tropical
and non-tropical storms.
Assessing the impact of chronic weather events
It is difficult to assess the physical impact of chronic weather events as these are likely to be regional or global
in nature, but they can be largely or fully addressed with systemic risk mitigation actions at the Intertek site/
operational level:
Physical risk
(chronic weather
events) Impact on business Mitigations
Precipitation • Property damage and
businessdisruption
• Insurance cover
• Add identified climate-related risk into
our business continuity planning for
sites with predicted exposure
• Physical/structural protections
forsiteswith predicted exposure
Heat • Productivity changes as severe heat
affects people and/or equipment
• Cost increases linked to an increased
requirement for air conditioning/cooling
• Add identified climate-related risk into
our business continuity planning for
sites with predicted exposure
• Increase energy efficiency/use
ofsolar/renewable energy
Drought • Operational impact from water scarcity
• Changes to demand for our services
linked to changing consumption
patterns, population migration
orconflict
• Add identified climate-related risk
intoour business continuity planning
forsites with predicted exposure
• Focus on reducing water usage/
efficiency
Sea level rise • Property damage and business
disruption
• Insurance cover
• Add identified climate-related risk
intoour business continuity planning
forsites with predicted exposure
• Physical/structural protections for
siteswith predicted exposure
Assessing the impact of acute weather events
The likely impact of an acute weather event is a loss of revenue due to a shutdown of our facilities. It is difficult
to provide a precise estimate of the financial impact, which depends on factors including the severity of the
event, the geography affected, our ability to redistribute work, and the duration of the shutdown.
Our assessment reveals a minimal increase in expected portfolio exposure to acute weather events, and we
therefore expect the incidence and financial impact of such acute events to be similar to today. Based on
recent experience, in FY17 hurricanes Harvey and Irma impacted the operations of our clients in southern
regions of the USA during a three-month period, in turn impacting our business. These two operational
disruptions reduced our revenue performance by £5m at constant currency over the period August to
October2017, negatively impacting our divisions. Over the five-year period to date, our operations have
beenimpacted by about ten extreme weather events.
2 c) Our organisational resilience to the risks of climate change and decarbonisation scenarios
We believe our operations and strategy have a high degree of resilience to the risks of climate change under
both an RCP 4.5 and RCP 8.5 scenario:
• Our extensive network – over 1,000 labs in over 100 countries – means that we are well positioned to take
advantage of any climate-related changes in supply chains (either changes to suppliers, to the raw materials
being supplied or to the geographic location of supply chains).
• Our products inspection and assurance businesses are flexible as they use field-based inspectors and
auditors and we can deploy personnel/sub-contractors as required.
• Our client-base of over 400,000 clients is diverse, with no material dependencies, which also de-risks the
effect of potential geographic changes in our points of service delivery.
• Our capital-light earnings model de-risks us from climate-related changes to our clients’ supply chains, and
the physical impacts of climate change, as we have a low cost of market entry and exit.
• We are able to redirect work within our own network in order to mitigate the impact of climate-related
disruptions.
• We do not anticipate a material impact of climate-related policies directly on our business. As a professional
services provider, we do not operate in a sector which is likely to be a key focus for mandatory decarbonisation
behavioural changes. Our broad geographic footprint de-risks us from the impact of national regulations. Our
capital-light model mitigates our exposure to climate-related policies.
Intertek Group plc
Annual Report & Accounts 2024
1.72
TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Section 3: Risk management
TCFD recommended disclosures Further information
a) Describe the organisation’s processes for
identifying and assessing climate-related risks.
• Principal risks and uncertainties (page 1.57)
b) Describe the organisation’s processes for
managing climate-related risks.
• Principal risks and uncertainties (page 1.57)
c) Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organisation’s overall risk management.
• Principal risks and uncertainties (pages 1.57-1.64)
3 a) Our process for identifying and assessing climate-related risks
Our processes for identifying and assessing climate-related risks take place within our risk committees, and
separately using the supply-and-demand model we have built for our World of Energy businesses, and via our
workwith WTW to model the exposure of our portfolio to the physical impacts of climate change. The most
significant insight from our work with WTW was that the exposure of our portfolio to acute weather events
was expected to increase only very marginally in the period to 2050, with any financial impact falling well
below the threshold for materiality.
In 2024, we continued to review the exposure of our portfolio to physical climate change impacts usingthe live
model we have built with WTW and with ongoing review as part of our integrated risk management process.
3 b) How we manage climate-related risks
Climate-related risks, and our related mitigation action plans, are reviewed at least quarterly by the Board
andare also considered by our framework of regional, divisional and functional risk committees and our Group
Risk Committee. The risk of physical impacts of climate change on our sites are also considered by a cross-
functional group including members of our Finance, Insurance, Risk and Sustainability teams. The portfolio
exposure modelling we have done with WTW allows us to assess – on a site-by-site basis – the changing
likelihood and potential impact of specific climate events (such as drought, precipitation, flooding and fire)
under both the RCP 4.5 and RCP 8.5 scenarios in the short, medium and long term. We use the output of this
model in our opportunity and risk mitigation planning, and in local site business continuity planning.
3 c) Integration into our overall risk management
Our climate-related opportunities are reviewed as part of our overall budget, innovation, M&A, customer
insight and other processes. At the strategic level, the supply and demand model we have developed to look at
how the needs of our customers across our different businesses are likely to be affected by decarbonisation
allows us to assess how that is likely to affect their need for our end-to-end Total Quality Assurance services
across all points of their logistics, manufacturing/production and supply chain networks.
Section 4: Metrics and targets
TCFD recommended disclosures Further information
a) Disclose the metrics used by the organisation
toassess climate-related risks and opportunities
in line with its strategy and risk management
process.
• Environment section (page 2.38 in Report 2)
b) Disclose scope 1, scope 2, and, if appropriate,
scope 3 GHG emissions, and the related risks.
• Environment section (page 2.38 in Report 2)
c) Describe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets.
• Environment section (page 2.38 in Report 2)
We publicly report on our scope 1, scope 2 and relevant scope 3 GHG emissions and the carbon intensity
ofoperational emissions by revenue. Environmental performance is disclosed in Report 2. Ourmeasurement
and reporting is aligned to the GHG Protocol Corporate Accounting and Reporting Standard (2015) and the
recommendations of the TCFD. As required, we report under the Companies Act 2006 (Strategic Report and
Directors’ Reports) Regulations and we apply the 2019 UK Government Environmental Reporting Guidelines,
including the Streamlined Energy and Carbon Reporting Guidance ('SECR'). Further details can be found in
Report 2, page 2.41.
We have made several climate-related public commitments, on our own and with other organisations. We have
joined the global movement of 'Business Ambition for 1.5˚C’ and the UN Race to Zero campaign. In 2023, the
SBTi, which defines and promotes global best practice in science-based target setting, validated our near-term
targets, as set out in the following statement:
"Intertek Group plc commits to reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a 2019 base
year. Intertek Group plc also commits to reduce absolute scope 3 GHG emissions from business travel and
employee commuting 50% within the same timeframe. Intertek Group plc further commits that 70% of its
suppliers by spend covering purchased goods and services, capital goods and upstream transportation and
distribution will have science-based targets by 2027."
We have rolled out country- and site-level specific targets which are reported monthly in our environmental
dashboards. Our rigorous GHG emissions performance management programme empowers our regional teams
to identify emissions sources, track progress against targets and KPIs, and implement concrete and measurable
climate-related action plans.
Our annual incentive plan continues to have an ESG element (with a 15% weighting) based on performance
against a GHG emissions reduction target.
Intertek Group plc
Annual Report & Accounts 2024
1.73
TCFD statement Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Section 5: Our climate change methodology
andapproach
The demand for our services depends on the supply of, and demand for, our clients’ products and services
andtheir need for our Total Quality Assurance services at specific risk points in their logistics, manufacturing
and supply chains.
To assess the impact of global decarbonisation on Intertek and our potential climate-related risks and
opportunities we have built a bottom-up supply and demand model for our World of Energy (Caleb Brett
andMoody) businesses which considers how the supply and demand of our clients’ products and services,
andtherefore their need for Intertek’s services, is likely to change in line with two decarbonisation scenarios
that are aligned to the Intergovernmental Panel on Climate Change ('IPCC') Representative Concentration
Pathways ('RCPs'):
• Intermediate (RCP 4.5): Characterised by slowly declining emissions, this pathway assumes climate
policies will be invoked to limit emissions, resulting in likely global temperature rise of 2–3°C by 2100.
• High (RCP 8.5): Characterised by rising emissions, this pathway adheres to the current trajectory and
assumes no additional efforts are made to constrain emissions, leading to likely global temperature rise
of>4°C by 2100.
We have also used these two scenarios to evaluate Intertek’s climate-related physical risks.
We have considered impacts over the short term (0-2 years), medium term (2 years – 2030); and long term
(2030 – 2050).
In assessing materiality, we have considered both financial impacts on us and other considerations such as the
importance of key climate-related topics to our clients and other stakeholders. For financial impacts, we have
applied a materiality threshold of £27.3m, aligned with the materiality threshold in our financial statements.
Wehave considered the materiality of risks on a 'net risk' basis, i.e. taking into account relevant risk mitigations
and opportunities that may be linked to those risks.
Based on our view of global decarbonisation and the nature of our businesses and services, we have divided
the impacts of climate-related risks and opportunities on Intertek’s operations, activities and earnings model
into three categories:
• Transition impacts: the impact of transitioning to low-carbon economies and societies. We further divide
these into: energy transition impacts (the impact of transitioning to renewable and green energy sources);
and carbon footprint transition impacts (the impact of reducing the carbon footprint of global activities
including logistics, manufacturing/production and supply chains);
• Policy impacts: the impact of climate-related laws or regulations, or policies intended to drive a
decarbonisation agenda; and
• Physical impacts: the impact of extreme weather events on our and/or our clients’ facilities and operations.
Intertek Group plc
Annual Report & Accounts 2024
1.74
3: Financial Report2: Sustainability Report1: Strategic Report
The Subject Matter is as follows:
GHG emissions
• Direct GHG emissions – Scope 1 (tonnes CO
2
e)
• Indirect GHG emissions – Scope 2 (tonnes CO
2
e)
• Other indirect (Scope 3) GHG emissions (tonnes CO
2
e)
–fueland energy related activities; business travel; and
employee commuting
• GHG emissions intensity ratio (tonnes CO
2
e/£m of revenue)
Environmental
• Total energy use (MWh)
Social
• Employee turnover (%)
• Net Promoter Score (average NPS interviews per month)
• Total Recordable Incident Rate ('TRIR')
(per200,000hoursworked)
• Completion of compliance training by eligible employees (%)
Other than as described in the paragraph above, which sets out
thescope of our engagement, we did not perform assurance
procedures on the remaining information included in the Report,
and accordingly, we do not express a conclusion on this information.
Criteria applied by Intertek
In preparing the Subject Matter, Intertek applied its reporting
methodology as described in the externally facing Intertek
document, Basis of Reporting ESG Data document (Criteria),
which is available on theIntertek website. As a result, the Subject
Matter information may not be suitable for another purpose.
Conclusion
Based on our procedures and the evidence obtained, we are not
aware of any material modifications that should be made to the
Subject Matter for the year ended 31 December 2024 in order
for it to be in accordance with the Criteria.
Basis for our conclusion
We conducted our engagement in accordance with International
Standard for Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information ('ISAE 3000
(Revised)'), International Standard for Assurance Engagements
on Greenhouse Gas Statements ('ISAE 3410'), and the terms of
our engagement letter dated 19 December 2024, as agreed with
the Company. Those standards require that we plan and perform
our engagement to express a conclusion on whether we are
aware of any material modifications that need to be made to
theSubject Matter in order for it to be in accordance with the
Criteria, and to issue a report. The nature, timing, and extent of
the procedures selected depend on our judgement, including an
assessment of the risk of material misstatement, whether due
tofraud or error.
We believe that the evidence obtained is sufficient and
appropriate to provide a basis for our limited assurance conclusion.
To the Directors of Intertek Group plc on selected
Environmental, Social, and Governance (‘ESG’) Data
Ernst & Young LLP (‘EY’) was engaged
byIntertek Group plc (‘the Company’,
‘Intertek’) to perform a limited assurance
engagement as defined by International
Standards on Assurance Engagements,
hereafter referred to as the 'engagement',
to report on Intertek’s ESG performance
data (the 'Subject Matter') contained within
Intertek’s Annual Report for the year ended
31 December 2024 (the 'Report').
Independent Assurance Report
Intertek Group plc
Annual Report & Accounts 2024
1.75
Independent Assurance Report to the Directors of Intertek Group plc
on selected Environmental, Social, and Governance (‘ESG’) Data Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Our independence and quality management
In performing this engagement, we have applied International
Standard on Quality Management (‘ISQM’) 1 Quality Management
for Firms that Perform Audits or Reviews of Financial Statements,
or Other Assurance or Related Services engagements, which
requires that we design, implement and operate a system of
quality management including policies or procedures regarding
compliance with ethical requirements, professional standards
andapplicable legal and regulatory requirements.
We have maintained our independence and other ethical
requirements of the Institute of Chartered Accountants of
England and Wales (‘ICAEW’) Code of Ethics (which includes
therequirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards
Boardfor Accountants (‘IESBA’)).
Responsibilities of the Company
Intertek’s management is responsible for selecting the Criteria,
and for presenting the Subject Matter in accordance with those
Criteria, in all material respects. This responsibility includes
establishing and maintaining internal controls, maintaining
adequate records and making estimates that are relevant to
thepreparation of the Subject Matter, such that it is free from
material misstatement, whether due to fraud or error.
Responsibilities of EY for the limited assurance engagement
It is our responsibility to:
• Plan and perform the engagement to obtain limited assurance
inrespect of whether the Subject Matter has been prepared in
all material respects in accordance with the Criteria;
• Form an independent conclusion on the presentation of the
Subject Matter on the basis of the work performed and
evidence obtained; and
• Report our conclusion to the Directors of the Company.
Our approach
The objective of a limited assurance engagement is to perform
such procedures so as to obtain information and explanations
inorder to provide us with sufficient appropriate evidence to
express a negative conclusion on the Subject Matter. The
nature,timing and extent of procedures performed in a limited
assurance engagement is dependent on our judgement, including
our assessment of the risk of material misstatement, and is less
in extent than for a reasonable assurance engagement. Our
procedures were only designed to obtain a limited level of
assurance on which to base our conclusion and donot provide all
the evidence that would be required to provide a reasonable level
of assurance.
Although we considered the effectiveness of management’s
internal controls when determining the nature, timing and
extent of our procedures, our assurance engagement was
notdesigned to provide assurance on internal controls.
Ourprocedures did not include testing controls or performing
procedures relating to checking the aggregation or calculation
ofdata within IT systems.
A limited assurance engagement consists of making enquiries,
primarily of persons responsible for preparing the Subject
Matterand related information and applying analytical and
otherappropriate procedures.
Because a limited assurance engagement can cover a range
ofassurance, the detail of our procedures is included below
toprovide further context to the nature, timing and extent
ofour work:
a. Conducted interviews with key personnel to understand the
process for collecting, collating and reporting the Subject
Matter during the reporting period;
b. Analytical review procedures to understand the
appropriateness of the data;
c. Testing, on a limited sample basis, against underlying source
information to check the accuracy and completeness of the
data and the appropriate application of the Criteria; and
d. Assessing the Report for the appropriate presentation
ofthedata including limitations and assumptions.
We also performed such other procedures as we considered
necessary in the circumstances.
Inherent limitations
Non-financial information is subject to more inherent limitations
than financial information, given the characteristics of the
underlying Subject Matter. Because there is not yet a large body
of established practice upon which to base measurement and
evaluation techniques, the methods used for measuring or
evaluating non-financial information, including the precision
ofdifferent techniques, can differ, yet be equally acceptable.
The Green House Gas quantification process is also subject
toscientific uncertainty, which arises because of incomplete
scientific knowledge about the measurement of GHGs.
Additionally, GHG procedures are subject to estimation
(ormeasurement) uncertainty resulting from the measurement
and calculation processes used to quantify emissions within
thebounds of existing scientific knowledge. This may affect
thecomparability between entities, and over time.
Use of our report
This report is produced in accordance with the terms of our
engagement letter dated 19 December 2024 solely for the
purpose of reporting to the directors of the Company in
connection with the Subject Matter for the period ended
31 December 2024. Those terms permit disclosure on the
Company’s website, solely for the purpose of the Company
showing that it has obtained an independent assurance report
inconnection with the Subject Matter. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's Directors as
abody, for the procedures performed, for this report, or for the
conclusions we have formed.
Ernst & Young LLP
3 March 2025
London
Intertek Group plc
Annual Report & Accounts 2024
1.76
3: Financial Report2: Sustainability Report1: Strategic Report
Reporting requirement Description, implementation, due diligence, outcomes and additional information
Environment
Environment
REPORT 2, PAGES 2.38-2.48
Employees
Nomination Committee report
REPORT 2, PAGES 2.82-2.85
Risk management
REPORT 2, PAGE 2.81
People and Culture
REPORT 2, PAGES 2.13-2.26
Social matters
Communities
REPORT 2, PAGES 2.49-2.55
Human rights
Responsible Business
REPORT 2, PAGES 2.56-2.59
Anti-corruption and anti-bribery
Principal risks and uncertainties
REPORT 1, PAGES 1.57-1.64
Responsible Business
REPORT 2, PAGES 2.56-2.59
Compliance, whistleblowing and fraud
REPORT 2, PAGES 2.58 AND 2.92
Description of principal risks and
impactofbusinessactivity
Principal risks and uncertainties
REPORT 1, PAGES 1.57-1.64
TCFD statement
REPORT 1, PAGES 1.65-1.73
Section 172 statement
REPORT 2, PAGE 2.72
Description of the business model
Our business model
REPORT 1, PAGES 1.18-1.29
Key performance indicators
Financial KPIs
REPORT 1, PAGES 1.30-1.31
Non-financial KPIs
REPORT 1, PAGES 1.32-1.33
Climate-related financial disclosures
TCFD statement
REPORT 1, PAGES 1.65-1.73
The Strategic Report was approved by the Board on 3 March 2025.
On behalf of the Board
André Lacroix
Chief Executive Officer
The table shown here is intended to
help our stakeholders understand our
position on key non-financial matters
and climate-related financial
disclosures, in line with the reporting
requirements contained in sections
414CA and 414CB of the Companies
Act2006. Our reporting on these topics
andkey performance indicators is
contained within this Strategic Report
and also in the Sustainability Report,
Report 2.
Group non-financial and sustainability information statement
Printed by a CarbonNeutral® Company certified to
ISO 14001 environmental management system.
Printed on material from well-managed, FSC®
certified forests and other controlled sources.
100% of the inks used are HP Indigo ElectroInk
which complies with RoHS legislation and meets
the chemical requirements of the Nordic Ecolabel
(Nordic Swan) for printing companies, 95% of press
chemicals are recycled for further use and, on
average 99% of any waste associated with this
production will be recycled and the remaining 1%
used to generate energy.
The paper is Carbon Balanced with World Land
Trust, an international conservation charity, who
offset carbon emissions through the purchase and
preservation of high conservation value land.
Through protecting standing forests, under threat
of clearance, carbon is locked-in, that would
otherwise be released.
CBP00019082504183028
Intertek Group plc
33 Cavendish Square,
London, W1G 0PS
United Kingdom
Tel +44 20 7396 3400
info@intertek.com
intertek.com
VISIT: INTERTEK.COM/INVESTORS
Annual Report &
Accounts 2024
Sustainability Report
the power of
amazing
We are pleased to share with
you our Annual Report & Accounts
in a unique, three-report format:
Report 1: Strategic Report
Where we discuss our growth
opportunities and strategic performance.
amazing
Contents
VISIT: INTERTEK.COM/INVESTORS
Report 2: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Report 3: Financial Report
Where we record our financial
activities, performance and position.
These separate, but connected reports, with their
interconnected themes and narratives, allow us to
present what we achieved in 2024 in a systemic,
end-to-end architecture. They have been designed to
make it easier for our stakeholders to fully understand
our business, how we bring quality, safety and
sustainability to life, what we offer our clients and
society, and the opportunities we have ahead of us.
The power of amazing lies in the energy and passion
of our incredible colleagues and the work they do
every day. At Intertek, we constantly strive to be
ever better. For over 130 years, we have been
pioneers, lighting the way with ingenious solutions
that touch every part of modern life. Our culture
empowers our people and creates sustainable
growth and value for all our stakeholders.
Our caring and trusted people live by our Values,
working with passion and integrity to make a real
difference. Their energy and commitment ensure our
customers become ever more resilient, and that we all
thrive and work together to make the world better, safer
and more sustainable.
the power of
2.01 Chief Executive Officer's
sustainability letter
2.07 Our approach
2.10 Our Sustainability Excellence strategy
2.13 Sustainability performance
2.60 Directors' report
2.61 Governance at a glance
2.61 Compliance with the UK Corporate
Governance Code
2.62 Governance structure
2.64 Chair's introduction
2.66 Board of Directors
2.69 Group Executive Committee
2.70 Board leadership and
company purpose
2.78 Composition, succession
and evaluation
2.81 Audit, risk and internal control
2.82 Committee reports
2.82 Nomination Committee Report
2.86 Audit Committee Report
2.94 Remuneration Committee
Report
2.127 Other disclosures
2.131 Statement of Directors
Responsibilities
Chief Executive Officer's sustainability letter
Intertek Group plc
Annual Report & Accounts 2024
2.01
3: Financial Report1: Strategic Report 2: Sustainability Report
The amazing
power of
Sustainability
Excellence
As a leading Total Quality Assurance
('TQA') provider to industries worldwide,
Intertek plays a critical role in ensuring
the quality, safety and sustainability of
products and processes. Our global reach
and expertise across every industry
enable us to make a significant positive
impact on the world around us.
Sustainability is central to all we do at Intertek and is anchored
in our Purpose, Vision, Values, and strategy. I am delighted to
report that in 2024 we delivered another year of progress on
our Sustainability Excellence agenda. I would like to extend my
heartfelt thanks to my colleagues at Intertek for their tireless
efforts in helping to create an ever better world for current and
future generations.
By working hard to meet the expectations of, and create
sustainable value for, all stakeholders, we continue to be an
amazing force for good in the world, working collectively to
unleash the power of our high-performance 10X culture and
amazing people. Sustainability Excellence is vital to Intertek
and our people as it reflects our dedication to creating a positive
impact on the environment and society. This commitment drives
long-term value for all stakeholders, including customers,
employees, shareholders and the communities where we operate.
Our main areas of focus include reducing carbon emissions,
ensuring employee safety and wellbeing, fostering employee
engagement and development, promoting diversity and inclusion
and supporting local communities. Over the years, we have made
significant progress through various initiatives, demonstrating
our unwavering commitment to sustainability and our ability to
adapt and provide innovative sustainability solutions in response
to global challenges that support our customers in their own
sustainability journeys.
Together, we are making a difference and paving the way for a
sustainable future and a truly amazing world for all stakeholders.
I would like to highlight the
contribution of our truly amazing
people, who once again have delivered
an exceptional performance for our
company, our clients, our shareholders
and society as a whole."
André Lacroix
Chief Executive Officer
Intertek Group plc
Annual Report & Accounts 2024
2.02
Chief Executive Officer's sustainability letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Sustainability highlights
• Levels of Hazard Observations increased for the fifth
consecutive year, reflecting greater levels of activity
across our sites as well as greater awareness and
reporting of health and safety overall.
• Since 2015, we have used the Net Promoter Score
(‘NPS’) process to listen to our customers, enabling
us to improve our customer service over the years
consistently. In 2024, we conducted on average
6,036 NPS interviews per month.
• We are driving environmental performance across our
operations through science-based reduction targets
to 2030. By optimising energy use in our offices and
laboratories and transitioning to cleaner energy
sources, we reduced our operational market-based
emissions by 16.7% against 2023 and 47.2% against
our base year 2019.
• In 2024, we conducted a preliminary Double Materiality
Assessment ('DMA') to help us meet regulations.
• We recognise the importance of employee engagement
in driving sustainable performance for all stakeholders,
and we measure employee engagement against our
Intertek ATIC Engagement Index. In 2024, we achieved
a new high score of 91 (2023: 87).
• Our voluntary permanent employee turnover
improved to a five-year low rate of 11.2% in
2024 (2023: 12.3%).
Sustainability is central to Intertek
As a purpose-led company, we have embedded
sustainability deeply in:
Our Purpose
Bringing quality, safety and sustainability to life.
Our Vision
To be the world’s most trusted partner for
Quality Assurance.
Our Values
• We are a global family that values diversity.
• We always do the right thing. With precision,
pace and passion.
• We trust each other and have fun winning together.
• We own and shape our future.
• We create sustainable growth. For all.
Intertek Group plc
Annual Report & Accounts 2024
2.03
Chief Executive Officer's sustainability letter Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Leading the way in Sustainability Excellence
We apply the concept of Sustainability Excellence across
all our operations worldwide, holding ourselves to the same
high standards to which we hold our customers.
For Intertek’s Sustainability Excellence programme, we focus on
the ten highly-demanding standards which are part of our Total
Sustainability Assurance ('TSA') programme. These standards
are truly end-to-end and systemic and encompass all aspects
of what we know to be a truly sustainable organisation, covering
every aspect from quality and safety through to communications
and disclosures. The ten TSA standards were created to align
with the United Nations Sustainable Development Goals
(‘UN SDGs’).
READ MORE ABOUT TOTAL SUSTAINABILITY
ASSURANCE ON PAGE 2.09
Our new Sustainability Policy
During 2024 we introduced a new Sustainability Policy,
which defines our standards, principles and policies, as
well as our operating practices and relationships with our
main stakeholders. The policy is designed to provide every
Intertek company and business unit in every country where
we operate with a robust framework for embedding and
strengthening socially and environmentally responsible
behaviour and practices.
READ AND DOWNLOAD OUR SUSTAINABILITY POLICY AT
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Our responsibility in action
As I reported last year, in 2023 we received target validation
from the Science-Based Targets initiative (‘SBTi’) for reducing
scope 1, 2 and 3 emissions (business travel and employee
commuting) by 50% before 2030, taking 2019 as the base year.
SBTi also validated our commitment to ensuring that 70%
of our suppliers by spend have science-based targets in place
by FY2027. Over the last year, we have made good progress
towards meeting these targets.
I am also pleased to report that during the year we completed
a preliminary DMA, to help us meet upcoming regulations.
Double materiality addresses both financial and impact
materiality. This approach expands on the single materiality
concept by requiring companies to assess not only how
sustainability issues impact their financial performance but
also how the company’s operations affect society and the
environment. You can read more about the DMA on page 2.07.
Our DMA will be assessed regularly to provide a fuller picture of
Intertek’s role and responsibilities in a broader societal context
and will ensure that we continue to identify evolving areas of
priority or concern for our stakeholders.
Intertek Group plc
Annual Report & Accounts 2024
2.04
Chief Executive Officer's sustainability letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
We also extended our third-party assurance beyond
greenhouse gas ('GHG') emissions data to include some of
our key non-financial KPIs: Total Recordable Incident Rate
(‘TRIR’), customer satisfaction via NPS surveys, employee
retention and compliance training across the organisation.
READ THE FULL ASSURANCE STATEMENT
IN THE STRATEGIC REPORT ON PAGES 1.74–1.75
We have now also been a constituent of the FTSE4Good
index for eight consecutive years, reconfirming our status
as a force for good in the world that is committed to bringing
quality, safety and sustainability to life with precision, pace
and passion. We retained our 'AAA' rating in the MSCI ESG
Ratings assessment, as well as our 'Prime' rating under ISS
ESG requirements. In addition, our ESG rating of 15.9 from
Sustainalytics and our 'B' score as part of CDP’s Climate Change
Programme highlight our commitment to sustainability.
Intertek received a rating of ‘AAA’ in
the MSCI ESG Ratings assessment.
1
We were included in the FTSE4Good
Index for the eighth year running.
Intertek is rated 'Prime', fulfilling
ISS ESG's demanding requirements
regarding sustainability performance
in our sector.
2
Intertek’s latest ESG rating from
Sustainalytics is 15.9, indicating a
low risk of experiencing material
financial impacts from ESG factors.
3
Intertek participates annually in
CDP’s Climate Change Programme.
For 2024, CDP recognised our
progress with a 'B' score.
1. msci.com/notice-and-disclaimer
2. issgovernance.com/esg/ratings
3. sustainalytics.com/legal-disclaimers
ESG credentials
We actively participate in a range
of global environmental, social
and governance ('ESG') ratings,
indices and frameworks to
benchmark our approach against
best practice and emerging
sustainability challenges.
Reducing the environmental impact of our operations
One of the most notable accomplishments in 2024 was our
significant reduction in carbon emissions. By optimising energy
use in our offices and laboratories and transitioning to cleaner
energy sources, we successfully reduced our operational
market-based emissions by 16.7% against 2023 and 47.2%
against our base year 2019.
Through the continuous monitoring of environmental
performance across our operations, we identified key areas
where we could implement more energy-efficient technologies
and improved operational processes. For example, following
the installation of a solar photovoltaic (‘PV’) project at our office
in Bangkok, Thailand is now the ninth country where we have
installed a renewable energy system at one or more sites.
Another example from the many initiatives we are undertaking
to reduce our carbon footprint is the introduction of an electric
shuttle bus service across south and east China. This service
now transports around 1,100 of our people – around 10% of
our workforce in the country – to and from work every day.
With 30 electric buses in our fleet, this is already saving close
to 1,000 tonnes of CO
2
equivalent emissions each year –
and we are working with suppliers to replace more of our
petrol-powered buses with electric versions.
A new area of focus for us in 2024 has been the tracking of
water consumption. This is in response to increasing global
concerns about water scarcity, and our recognition of the
impact that responsible water management can have on
both operational efficiency and local communities.
LEARN MORE IN OUR SUSTAINABILITY DISCLOSURE INDEX
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Intertek Group plc
Annual Report & Accounts 2024
2.05
3: Financial Report1: Strategic Report 2: Sustainability Report
Our commitment to our communities
Our businesses and our people are part of many communities
across the world. Just as they support us, we support them
through our commitment to their economic and social
development. Our businesses regularly support and engage with
local organisations and initiatives that improve the environment
and the lives of local people. Many of our employees volunteer
their time to support essential local and charitable causes that
reflect the value and diversity of our communities.
As a result, during 2024 we were active in many ways and many
places to help make communities across the planet happier,
healthier, fairer and more successful.
For example, in Australia we worked with Reconciliation
Australia to advance reconciliation between Indigenous
and non-Indigenous Australians. In doing so, we aim to help
strengthen relationships between Aboriginal and Torres Strait
Islander peoples and non-Indigenous peoples for everybody’s
benefit. We launched our Reconciliation Working Group during
the year, which meets fortnightly to help us build meaningful
community relationships via events created to raise cultural
awareness and programmes for building work skills.
In India, meanwhile, we completed during the year the first phase
of a project designed to give more than 40,000 young people in
rural Gurugram and Mumbai access to the high-quality science,
technology, engineering and mathematics ('STEM') education
that employers are increasingly expecting from their recruits.
Phase one saw more than 20,000 students benefit from the
Intertek India programme, which also involved training teachers
and upgrading infrastructure.
We also took decisive action in Ghana, where communities in the
Volta Region were suffering from the aftermath of the country’s
biggest hydroelectric dam having overflowed in 2023. On the
advice of local government representatives regarding how to
make the biggest positive impact, a team from Intertek Ghana
visited three schools in Awusakpe, Adutor and Adidome – not only
providing essential items from desks and chairs to stationery and
textbooks, but also encouraging the students to dream big and
work hard towards their goals.
READ MORE ABOUT HOW WE CREATE
POSITIVE IMPACTS IN THE COMMUNITIES
WHERE WE OPERATE ON PAGE 2.49
Chief Executive Officer's sustainability letter Continued
Empowering our amazing people to be ever better
During the year, we continued the Champions engagement
process we launched in 2023, carrying out another two
employee surveys to allow our teams to better track their
progress and take positive steps through team action planning.
The level of participation in these surveys has continued to grow
over time, thanks to our global HR teams providing our managers
with the knowledge and resources to explain the process and its
importance more effectively to their teams.
We also continued to build on the MOSAIC programme we
launched in 2023, to help everyone understand the incredible
power of diversity across our global workforce. Our team of
ingenious, caring and trusted colleagues is a rare and unique
Intertek property that we must do everything in our power to
leverage: MOSAIC has become an essential ongoing resource
for the business.
We also expanded the 10X Leadership programme that we
launched in 2019, widening the number of participants involved
in the programme’s workshops and seminars to more than 600
colleagues. At these events, I share my leadership experience
and people-centred approach to help participants develop their
own leadership styles.
Employee safety and wellbeing is a fundamental priority
at Intertek, and I was delighted to see that levels of Hazard
Observations across our sites increased for the fifth consecutive
year. This reflects not only greater levels of activity across our
sites, but also greater overall awareness and reporting of health
and safety-related issues.
I was also very pleased to see that our level of employee
engagement, measured against our Intertek ATIC Engagement
Index, reached a new height of 91 (up from 87 in 2023).
This is particularly important to me, as strong engagement
is an essential factor in driving sustainable growth and value
for all stakeholders. I am also pleased to report that our
voluntary permanent employee turnover hit a five-year
low of 11.2% (2023: 12.3%).
READ MORE ABOUT OUR PEOPLE AND
CULTURE ON PAGE 2.13
240+
Community projects our employees participated in –
focusing on education, giving back to local communities
and preserving our environment
17, 29 9
Hours volunteered to support community projects
Build Back Ever Better
Launched in 2021, BBEB.com is a digital platform where
anyone can share content and stories to inspire others.
#BBEB aims to create a truly Glo-cal community-based
movement to help and influence everyone around the
world to create their own local community space in their
local language to inspire friends, family and public
institutions to Build Back an Ever Better world.
Three years on, our multilingual site carries thousands
of powerful stories from across the world, highlighting
inspirational initiatives from individuals, groups,
communities, organisations and companies, all with the
ambition of creating positive change by demonstrating
what can be achieved with the right determination,
focus and energy.
JOIN BBEB.COM TODAY
Sustainability Disclosure Index
The 2024 Intertek Sustainability Disclosure Index is
complementary to our published reports and sets out
how our latest disclosures map to our own Total
Sustainability Assurance standards, the Global
Reporting Initiative (‘GRI’) and applicable Sustainability
Accounting Standards Board (‘SASB’) requirements.
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Intertek Group plc
Annual Report & Accounts 2024
2.06
Chief Executive Officer's sustainability letter Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Looking ahead: the power of
amazing in 2025 and beyond
As we look to the future, I know Intertek’s unwavering
commitment to Sustainability Excellence will continue
to guide us as we navigate the evolving landscape of
2025 and beyond. Our dedication to quality, safety and
sustainability remains at the heart of everything we do,
empowering us to make a positive impact on the world.
Together with our amazing people around the world and
our valued stakeholders, we will harness the power of
our innovative solutions and global expertise to create
a brighter, more sustainable future. By fostering a
culture of excellence and collaboration, we will not only
meet but exceed the expectations of our clients and
communities, ensuring that we remain a trusted
partner in their sustainability journeys.
As part of our ongoing commitment, we will build on
our success in implementing our DMA to align with
upcoming regulations. This alignment will further
enhance our approach and progress, reinforcing our
position as a leader in sustainability.
All of us at Intertek look forward to seizing the
opportunities ahead with determination and
enthusiasm, knowing that our efforts today will shape
an ever better tomorrow. With our shared vision and
unwavering commitment, we will continue to unleash
the power of amazing and build a truly sustainable
world for generations to come.
André Lacroix
Chief Executive Officer
Our Sustainability solutions are making
the world better, safer and more sustainable
The global scale, breadth and reach of our operations and
services mean that we are making the world a better, safer
and more sustainable place for all. And this position is getting
stronger as organisations face increasing challenges across
their value chains. At the same time, consumer expectations of
corporate responsibility continue to grow. And while all our work
is enabling us to help clients improve their businesses in many
ways, demand for risk-based solutions focused on operational
and corporate sustainability continues to increase.
Sustainability services have been the core of our global business
for over 100 years. Our clients trust us to ensure the quality,
safety and sustainability of their businesses across their entire
value chain to protect their brands and to help them gain
competitive advantage. Today, we’re better placed than ever
to help organisations demonstrate their commitment to
sustainability, manage risk and resilience, and act responsibly.
Our unique industry-leading range of Total Sustainability
Assurance services is at the heart of these, comprising three core
elements: Intertek Operational Sustainability Solutions, Intertek
ESG Solutions, and Intertek Corporate Sustainability Certification.
The deep science-based expertise of our amazing sustainability
teams is at the heart of our TSA approach across all of our
solutions. These can cover precisely what is needed, from
consulting and gap assessments to regulatory reporting
and corporate certification, all focused on driving real-world
improvements across clients’ operations and value chains.
The year saw many incredible instances of our customers
directly leveraging our services to become more sustainable
businesses in their own right. One example was our work
with long-term customer Marks & Spencer (‘M&S’), for whose
products we have developed a series of rigorous tests. In just
one example, we worked together in 2024 to make school
uniforms better and more durable for children, parents and the
planet. Uniforms are typically worn 50 times more than other
garments, and their durability is a key factor not just in their
quality but in their environmental impact too.
On a very different front, we took a significant step forward in
our commitment to advancing sustainable practices in aviation
when Intertek Caleb Brett helped to achieve the first delivery of
Neste MY Sustainable Aviation Fuel (‘SAF’) to Singapore’s Changi
Airport. Made from renewables including used cooking oil and
animal fat wastes, SAF is a key solution in the aviation industry’s
accelerating push for sustainability.
In Argentina, we carried out the country’s first independent
climate risk and vulnerability assessment. This was for leading
natural-gas transportation company, Transportadora de Gas
Sur S.A. ('TGS'), which is responsible for transporting more
than 60% of the gas produced in the country.
As a company listed on the New York Stock Exchange, TGS
needed to update its continuity plan to show investors how it
plans to evaluate and mitigate the impacts of extreme climate
events over the next 15 years. Our Buenos Aires-based
Sustainability team called on our services and global expertise to
create a study evaluating the vulnerabilities associated with 45 of
the company’s assets, including nearly 10,000km of pipelines and
40 compression stations. As a result, TGS is now better placed to
understand and mitigate the impacts of severe climate events.
In 2024, we also won a research project to provide hydrodynamic
modelling expertise as part of the Welsh Government’s Tidal
Lagoon Challenge, which aims to quantify the potential benefits
to be gained from harnessing the country’s tidal energy
potential. The data we produce will be fed into Cardiff University,
where the economic value of tidal lagoons will be calculated as
a key step towards implementing the world’s first projects
unleashing latent gigawatts of installed capacity.
READ MORE ABOUT OUR WORK WITH
OUR CUSTOMERS ON PAGE 2.27
Intertek Group plc
Annual Report & Accounts 2024
2.07
3: Financial Report1: Strategic Report 2: Sustainability Report
Double materiality
At Intertek, we recognise
the importance of identifying,
prioritising and validating
the key environmental, social,
and governance ('ESG') topics
relevant to our business and
our stakeholders.
In 2019, we conducted our first independent materiality
assessment, with subsequent annual reviews conducted
to confirm its validity.
In 2024, we completed a preliminary Double Materiality
Assessment ('DMA'), in preparation for upcoming regulations.
Double materiality integrates both financial and impact
materiality. This approach expands on the single materiality
concept by requiring companies to assess not only how
sustainability issues impact their financial performance
but also how the company’s operations affect society and
the environment.
For our own assessment, we used a third-party tool
which helped us identify the ESG topics which we
believe have the greatest impact materiality and/or
financial materiality on our business and the greatest
level of concern to stakeholders along our value chain.
Our approach
Double
materiality
approach
Impact
materiality
(inside-out)
Planet
and society
Financial
materiality
(outside-in)
The data sources used for the financial and impact
materiality include publicly available corporate reports,
sustainability reports, mandatory regulations and
voluntary initiatives, as well as coverage in the news.
Assessing these key areas enables us to
prioritise and focus upon the most material
topics and effectively address these in our
policies, programmes, targets and actions.
Intertek Group plc
Annual Report & Accounts 2024
2.08
Our approach Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Our DMA will be assessed regularly to
provide a fuller picture of Intertek’s role
and responsibilities in a broader societal
context and will ensure that we continue
to identify evolving areas of priority or
concern for our stakeholders.
With a view to complying with future
sustainability reporting directives,
Intertek will take stakeholders’ opinions
and expectations into account to feed
our analysis of impacts, risks and
opportunities ('IROs') through the lens
of impact materiality and financial
materiality, to determine the material
issues on which the company will have
to report.
READ MORE ABOUT HOW WE ASSESS AND
MANAGE OUR RISKS ON PAGES 1.57–1.64
IN REPORT 1
High + High +High HighMedium MediumLow
FinancialMaterial issue Impact
LowLow - Low -
Environmental topics
GHG emissions and reductions
Transition to renewable energy
Climate change risks and management
Energy use, conservation and reductions
Social topics
Fair and inclusive workplace
Human rights
Occupational health and safety
Social inclusion
Employee acquisition, talent
Employee engagement and satisfaction
Governance topics
Business ethics
Cybersecurity and information security
Data privacy management
Supply chain management
Customer satisfaction
Corporate reputation
Product and service safety and quality
Investor relations
Source: Datamaran
Enterprise
Security
Quality &
Safety
People &
Culture
CommunitiesEnvironment GovernanceCompliance FinancialRisk
Management
Communications
& Disclosures
Intertek Group plc
Annual Report & Accounts 2024
2.09
Our approach Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
The TSA programme is based
on ten corporate sustainability
standards that we believe
define a truly sustainable
organisation today.
Total Sustainability
Assurance ('TSA')
standards
End-to-end systemic sustainability approach
TO SEE MORE ON THE TSA STANDARDS VISIT INTERTEK.COM/SUSTAINABILITY
We believe that these TSA standards are the most
comprehensive sustainability standards currently available,
forming the foundation of our approach, and challenging us to
view our processes and procedures through this end-to-end lens.
Our ten TSA Corporate Sustainability standards demonstrate
actionable, comparable, consistent and reliable disclosures
and provide assurance beyond ESG disclosures. They recognise
that truly sustainable solutions must address the important
operational aspects of every company, to cover environment,
products, processes, facilities, assets, systems, corporate
policies and stakeholder engagement.
To embed the requirements of all ten standards and review our
progress, we carried out a self-assessment for each standard
followed by a gap assessment audit of our corporate head office
and a selection of operational sites that are representative of
the mix of business lines and activities within our operations.
P2.13-2.59
P2.56
P2.60
P2.57
P2.38
READ MORE
IN REPORT 3
P2.59
P2.49
P2.13
P2.13-2.59
The audit team comprised subject matter experts from our
Business Assurance business line, which benchmarked our
sustainability programmes against the requirements of
each standard.
Performance is benchmarked against requirements and based
on maturity. On completion of the benchmarking step the
audit team reported their findings and the extent to which
corporate sustainability processes are in place, effective and
meeting the intent of the standard.
The outcomes have further fed into our ever better approach
and provided valuable insights which will enable us to align
our sustainability initiatives and priorities further.
People and Culture
Working with Customers
Environment
Communities
Responsible Business
p2.13
p2.27
p2.38
p2.49
p2.56
Intertek Group plc
Annual Report & Accounts 2024
2.10
3: Financial Report2: Sustainability Report1: Strategic Report
Our Sustainability Excellence strategy
Sustainability Excellence
in every area of our
operations
Our Purpose is bringing
quality, safety and
sustainability to life
and our Sustainability
Excellence strategy
is fundamental to
our business.
We ensure we create positive impacts through
the work we do for our clients and we make
progress on our own sustainability agenda by
engaging our colleagues in our ever better
journey. We do this through implementing
detailed site-by-site action plans, accurate
sustainability performance measurement
and strong governance. We hold ourselves to
account in line with our own TSA standards,
international best practice, the expectations
of our stakeholders and future regulations.
Our goal is to have fully
engaged employees
working in a safe
environment.
People and Culture
Material issues
• Fair and inclusive workplace
• Occupational health and safety
• Social inclusion
• Employee acquisition, talent
• Employee engagement
and satisfaction
Progress in 2024
• During 2024, we continued to focus on introducing and
expanding initiatives which build on our culture of trust
and inclusivity.
• We launched our IGNITE initiative to empower and inspire
our regional and business line sales leaders to better
support our strategic growth objectives and drive
excellence across the Total Quality Assurance industry.
• We also launched Lucie Partners, a new training platform
for non-employees representing Intertek.
• We continued to develop and embed key initiatives launched
in 2023, including: the Champions engagement programme;
MOSAIC, our diversity, equity and inclusion programme; and
iHazard, our safety awareness campaign.
• We ran the sixth and seventh editions of our hugely
successful 10X Coaching programme, certifying internal
leaders as 10X Coaches. Over 150 senior executives have
now benefitted from this coaching.
• We deepened the impact of our global 10X Talent Planning
processes at every country, business line and site level.
Priorities in 2025
Our people bring exceptional technical skills, expertise and
their passion and energy to our business and we will continue
to focus on keeping them safe and engaged, offering them
exciting personal growth opportunities.
2024 ATIC Engagement
Index score
Number of leaders who attended
10X Leadership events in 2024
Link to principal risks in Report 1:
1
2
3
4
5
6
7
8
9
10
11
91
175
(2023: 87)
(2023: 180)
READ MORE ON PAGES 2.13–2.26
Intertek Group plc
Annual Report & Accounts 2024
2.11
Our Sustainability Excellence strategy Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Link to principal risks in Report 1:
1
2
3
4
5
6
7
8
9
10
11
Link to principal risks in Report 1:
1
2
3
4
5
6
7
8
9
10
11
Ensure our customers
can operate safely and
sustainably.
Material issues
• GHG emissions and reductions
• Transition to renewable energy
• Climate change risks
and management
• Customer satisfaction
• Product and service safety
and quality
Material issues
• GHG emissions and reductions
• Transition to renewable energy
• Climate change risks
and management
• Energy use, conservation
and reductions
Progress in 2024
• We continued to work closely with our customers to
develop leading-edge end-to-end Total Sustainability
Assurance solutions.
• During 2024, we conducted an average of 6,036 customer
interviews each month, providing deep insights into what
our customers need and want.
Progress in 2024
• We continued to embed our Sustainability Excellence
approach across the business to empower our colleagues
to take ownership of reducing their own carbon footprint.
• By optimising energy use in our offices and laboratories
and transitioning to cleaner energy sources, we reduced
our operational market-based emissions by 16.7% against
2023 and 47.2% against our base year 2019.
• We reviewed and revised our Environmental and
Climate Change policy.
Priorities in 2025
We will continue to focus on minimising environmental
impacts from our operations, in compliance with
regulations, and to live up to the requirements and
expectations of our key stakeholders.
Decarbonise our
business by 2050.
Priorities in 2025
We will continue to provide science-led services and
leading-edge innovations to give our customers the
solutions they need to overcome their own risks and
challenges in quality, safety and sustainability, enabling
them to power ahead with confidence.
100 years
16.7%
Operational emission reductions
2023–2024
47. 2 %
Operational emission reductions
2019–2024
Innovative sustainability services
have been core to our global
business for more than
Working with Customers Environment
READ MORE ON PAGES 2.40–2.41
READ MORE ON PAGES 2.27–2.37
READ MORE ON PAGES 2.38–2.48
Intertek Group plc
Annual Report & Accounts 2024
2.12
Our Sustainability Excellence strategy Continued
3: Financial Report2: Sustainability Report1: Strategic Report
READ MORE ON PAGES 2.56–2.59
READ MORE ON PAGES 2.49–2.55
Link to principal risks in Report 1:
1
2
3
4
5
6
7
8
9
10
11
Link to principal risks in Report 1:
1
2
3
4
5
6
7
8
9
10
11
Create positive impacts
in the communities
where we operate.
Material issues
• Climate change risks
and management
• Social inclusion (community
engagement, learning
and development)
Progress in 2024
• Our employees participated in over 240 community projects
around the world this year, with 17,299 hours volunteered.
Priorities in 2025
We are passionate about making a difference and
will continue to take active responsibility to support
the communities and environments where we operate
to create sustainable growth for all.
240+
100.0%
Community projects in 2024 Eligible employees (rounded to the
nearest 0.1%) who completed our
Code of Ethics training in 2024
Uncompromising on
quality and compliance.
Material issues
• Business ethics
• Cyber security and
information security
• Data privacy management
• Supply chain management
• Corporate reputation
• Investor relations
Priorities in 2025
We will continue to further develop our best practice
compliance programme to ensure Intertek operates with
the highest standards of compliance and ethical business
practices, including through our supply chain partners.
Progress in 2024
• We continued to develop our best practice compliance
programme to ensure that Intertek operates with the
highest standards of compliance and ethical business
practices.
• We reviewed and revised our Labour & Human
Rights policy.
• We made progress on our SBTi-validated near-term
target of ensuring that 70% of our key supply chain
partners have set their own science-based climate
targets by 2027.
Responsible BusinessCommunities
(2023: 150+)
(2023: 97.6%)
Intertek Group plc
Annual Report & Accounts 2024
2.13
3: Financial Report1: Strategic Report 2: Sustainability Report
People and Culture
We truly value our people, and by embracing
diversity we strive to build an inclusive and
equitable organisation. Our success is based
on a culture of trust among all our colleagues
around the world. Trust is essential to
everything we do and is the cornerstone
of our approach to ‘Doing Business the
Right Way’.
Intertek people have exceptional technical skills and expertise
together with passion and energy. As a business we endeavour
to ensure that everyone feels safe, valued and able to access
exciting personal growth opportunities. We respect and protect
the rights of our people across our operations and throughout
our business relationships. We foster an environment where our
people can thrive.
Our People Strategy is all about energising our colleagues
to take our company to greater heights.
10X
10X is an aspirational icon designed to capture our
intent to be the best at everything we do every day.
Our goal is to have
fully engaged
employees
working in a safe
environment
Sustainability performance
We continue to build an open and trust-based environment
that reports and learns from safety risks and incidents. During
2024, levels of Hazard Observations increased for the fifth
consecutive year, reflecting greater levels of activity across
our sites as well as greater awareness and reporting overall.
The need for our employees to be alert in observing hazards
and near misses and reporting them immediately was
reinforced during the year through iHazard, our safety
awareness campaign.
The health and safety of our employees and contractors is the
utmost priority at Intertek. All of our businesses have robust
ES&W training programmes during our induction/onboarding
process, emergency responses procedures, intervention and
reporting of Hazard Observations, Near Misses and safety
incidents. We continue to provide appropriate personal
protective equipment and continually expand on existing
programmes and controls to improve the health, safety and
wellbeing of our colleagues.
Our target remains for our Total Recordable Incident Rate
('TRIR') to equal or be less than 0.5. This target is part of the
next phase of our ES&W cultural journey and supports our
continued aim to achieve zero lost time incidents.
2024 2023 Change
Hazard Observations 30,307 25,847 17%
Near Misses 2,572 2,912 (12%)
First Aid 630 795 (21%)
Lost Time Incidents 111 122 (9%)
Medical Treatment Incidents 78 101 (23%)
Fatalities 0 0 –
TRIR 0.42 0.51 (9bps)
Employee engagement, human rights and worker health, safety
and wellness are core to the long-term success of our business.
We strive for a sustainable workforce that is stable, engaged
and committed to the organisation, our goals and objectives.
We made strong progress in 2024, building upon and
launching people-focused programmes designed to make
the workplace ever better for everyone at Intertek. We never
stop challenging ourselves to create ever better ideas for our
people, customers, suppliers, communities and shareholders.
Ensuring the health, safety and wellbeing
of our employees
Through having fully engaged employees working in a safe
environment we will be able to deliver our Total Quality
Assurance ('TQA') Customer Promise.
Our aim is to encourage a culture of proactive employee
safety and wellbeing ('ES&W') awareness, industry best
practice and continuous improvement to increase ES&W
performance globally. Our Group-wide ‘General Safe Working
Guidelines’ provide the basis for a common and aligned ES&W
standard for all Intertek sites.
This includes a dedicated fire warden, first aider and ES&W
representative at each location. These representatives are
empowered not only to investigate incidents and implement
preventative and corrective actions, but also to disseminate
safety information through training and targeting
continuous improvement.
We firmly believe that to drive progress, the performance
indicators we track must focus on the diligent implementation
of robust processes and actions that lead to building a culture
of proactive ES&W awareness.
With dedicated reporting each month for country and
business lines, supplemented by inclusion in our 5x5 analysis
for every site, our global network of ES&W representatives
support continuous improvement. By improving our ES&W
communication network, we not only have a known contact
person in each country and location but also a means of
channelling and sharing information and programmes globally.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.14
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Leading with
Kindness
In a changing world where hybrid working,
dispersed teams and remote roles are
becoming increasingly normal, it is essential
to ensure that all colleagues are included
when it comes to wellbeing.
Kindness, our global wellbeing programme, encourages our
colleagues to do the simple things that help them build their
personal strength and resilience. Available to all Intertek
employees, it is designed to help us re-energise, boost our
wellbeing and unleash our potential. The programme offers
six modules under the theme 'Be Kind to Your Mind': making
connections, energising ourselves, mindpower, staying
positive, building resilience and feeling supported.
Our global HR team builds on this by organising and leading
in-person activities for those who can access an office or
communal workspace. These range from health check-ups
and activities which energise the body and mind, to team
social days and charitable initiatives.
At Intertek, the safety and wellbeing of our people is our
number one priority. And only by having fully engaged
employees working in a safe environment can we deliver
on our Purpose and Customer Promise.
We aim to make Kindness accessible to
100%
of employees around the world.
Intertek Caleb Brett holds Safety
Week, featuring iHazard
As part of our commitment to ES&W,
Intertek Caleb Brett held a Safety Week for
colleagues in the USA. The event engaged
colleagues across all Caleb Brett sites in the
country to raise awareness and share ideas
on key safety and wellbeing concepts,
supporting the business line’s goal:
‘Everyone Goes Home Safely, Every Day’.
In action
Each day, our teams joined a live webinar on a specific safety
topic, followed by group discussion and an interactive activity.
On completion of each activity, our colleagues provided
feedback on their key takeaways and offered suggestions
to help improve safety at their respective sites and across
Caleb Brett more generally.
One of the key topics covered during Safety Week was
iHazard, our global safety awareness campaign launched
in 2023 to ensure that all colleagues are alert in observing
and reporting hazards, near misses and other incidents
immediately. We are constantly improving the way we
monitor our global safety performance, and by continuously
reporting Hazard Observations and Near Misses, we are
better able to take proactive steps to prevent incidents.
Workplace mental health
At Intertek, we consider the health, safety and wellbeing, including
the mental health, of our employees, clients and third parties
connected with our business, to be of paramount importance.
We promote a culture of openness around mental health
and wellbeing. This culture is driven by our Group Executive
Committee through our Group Executive Vice President ('EVP'),
Human Resources ('HR') and rolled out across the business by
our regional HR Directors and their teams of experienced
HR professionals.
To support this approach, we have an employee assistance
programme in every country we operate in. These programmes
can offer a broad range of support services such as counselling
and mental health and wellbeing support. We also have a range
of additional resources on our employee intranet, as well as our
global wellbeing programme Kindness. Our local HR networks
tailor our support programmes to cater to the unique needs in
their regions.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.15
Sustainability performance Continued
People and Culture Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
We fully recognise the importance of employee engagement in
driving sustainable performance for all stakeholders. In order
to measure our employee engagement, we follow the Intertek
ATIC Engagement Index, which is based on the key drivers
of sustainable value creation within our differentiated ATIC
business model, and which measures engagement on a monthly
basis in every operation with the following metrics: Net Promoter
Score, customer retention, quality, voluntary permanent
employee turnover and Total Recordable Incident Rate.
In 2024, our ATIC Engagement Index score increased to
a new high of 91 (2023: 87), reflecting high engagement
levels across the Group. We will continue to target an ATIC
Engagement Index score of 90 or more moving forward.
During the year, our voluntary permanent employee
turnover averaged a five-year low rate of 11.2%
(2023: 12.3%). As we progress our People Strategy,
we will continue to aim for a rate below 15%.
Engaging our employees
We reach out to prospective employees in a variety of ways,
depending on location and role, in compliance with local
regulations for fair recruitment practices and equal opportunities.
We post vacancies on our website at intertek.com/careers and
employ various ways of sourcing talented people. These include
recruitment agencies, social media, printed advertisements,
employee referrals, professional bodies and associations, schools,
colleges and universities. We are committed to recruiting talent
local to our operations where possible. To offer career growth and
progression within the Group, we seek wherever possible to fill
vacancies from within the business first.
INTERTEK.COM/CAREERS
We post vacancies on our
website at intertek.com/careers
and employ various ways of
sourcing talented people
Intertek Brazil
certified as
‘Great Place To Work’
Intertek Brazil has been
awarded the Great Place to Work
Certification™ in recognition of creating
an outstanding employee experience.
Great Place to Work® is the global authority on workplace
culture. Organisations worldwide, including all companies
on the ‘Fortune 100 Best Companies to Work For’ list,
collaborate with Great Place to Work® to gauge how
effectively their leaders foster a positive employee
experience. Companies are scored on both employee
feedback and independent analysis.
For Intertek Brazil, the certification highlights our
commitment to fostering an outstanding workplace
environment that promotes a healthy competitiveness,
customer orientation, inclusivity and sustainability. Our
impactful wellness initiatives support both mental and
physical health. In addition, our laser focus on putting
our people at the centre of our strategy strengthens our
position as an employer of choice, enabling us to attract
and retain the best talent.
Intertek Brazil is our second Latin American country to
achieve Great Place to Work Certification™, following
Intertek Colombia in 2023.
Intertek Group plc
Annual Report & Accounts 2024
2.16
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Champions programme goes
from strength to strength
Over a year on from its launch, our
Champions engagement programme
continues to play an increasingly important
role in enabling open and constructive
dialogue within our teams around the world.
Champions, led by our managers and organised in
partnership with Gallup, the leading expert in the science of
employee engagement, gives all colleagues the opportunity
to anonymously rate statements precisely crafted to
measure employee engagement. Our managers then share
the results with their teams and work together to agree
actions for improved engagement, including follow-up
meetings to track progress.
In action
During 2024, we organised two rounds of Champions in
March and October, with participation increasing on each
occasion. We saw a significant increase in completion of
the survey’s October round after providing managers with
additional knowledge and resources to more effectively
discuss the process and its importance with their teams.
Other tools to support our teams include an explainer video
and a dedicated training programme, both made available
before Champions first launched in September 2023.
The Champions engagement programme will continue to run
on a regular basis to support our goal of taking engagement
within our teams to the highest levels and supporting
increased satisfaction and wellbeing across the company.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.17
Sustainability performance Continued
People and Culture Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Talent management
To seize the exciting growth opportunities arising from our
TQA value proposition, we continually invest in the growth
of our people. We aim to hire, inspire, engage and retain
the best people to power our AAA differentiated growth
strategy, providing the skills to grow our business.
With an ever better mindset, we encourage our people to
continuously learn new skills that help advance their careers
and deliver our TQA Customer Promise. Our 10X Talent Planning
process is critical to our future success in delivering our strategy
and fostering our culture and Values throughout Intertek.
Every new joiner at Intertek goes through our 10X Onboarding
experience on Lucie, our global learning management system.
The experience provides them with all the information they need
to greatly enhance their understanding of Intertek, navigate our
company and learn how they can contribute to 'Doing Business
the Right Way'.
The Board as a whole is responsible for ensuring that
appropriate human resources are in place to achieve our
long-term strategy and deliver sustainable performance.
Global talent and succession planning for the Group
Executive Committee are discussed regularly.
In employment-related decisions, we comply with all applicable
anti-discrimination requirements in the relevant jurisdictions.
We have zero tolerance for discrimination and harassment.
We are an equal opportunities employer and offer career
progression to all. Requests for reasonable adjustments
to support employee wellbeing and personal situations
are managed on a case-by-case basis during recruitment,
onboarding, career development, performance reviews
and return-to-work processes.
Reward and recognition
Reward plays a key role in attracting, motivating and
retaining talent. Intertek is compliant with minimum wage
and mandatory social contributions requirements in all
jurisdictions where we operate.
Our Purpose
Bringing quality, safety and sustainability to life.
Our Vision
To be the world’s most trusted partner for Quality
Assurance.
Our Values
• We are a global family that values diversity.
• We always do the right thing. With precision,
pace and passion.
• We trust each other and have fun winning together.
• We own and shape our future.
• We create sustainable growth. For all.
At Intertek, remuneration for all employees follows the
same policy and principles as for the senior executives.
The Remuneration Committee has oversight of this.
Read more on pages 2.94-2.125.
We depend on local management to define and maintain
competitive compensation practices that appeal to both
existing and future talent.
All employees are remunerated in accordance with local policies
and guidelines. The remuneration comprises elements which are
fixed, and in some cases, variable. The fixed elements are base
salary and benefits including pensions, where applicable. The
variable elements include incentives, both short- and long-term.
Across the world, employees who are eligible for a bonus follow
the same metrics, thus creating alignment on our strategic goals
throughout the organisation.
Recognition plays an important part at Intertek, and we take
every opportunity to recognise great performance across the
business through our internal channels.
Taking our colleagues
on a 10X journey
‘My 10X Journey’ is our approach to annual
appraisals, built on quality, performance
and growth conversations held throughout
the year between our employees and
their managers. These conversations
clarify expectations, foster continual
improvement and inspire our colleagues
around the world to perform at their best.
From initial development conversations focused on results,
learnings and past performance, goals and growth plans
are created, monitored and discussed throughout the year.
This ensures that all employees are clear on their goals and
performance, as well as providing them with an effective
tool for managing their career development.
In 2024, building on our commitment to creating an
environment where all our people can thrive, we made
some enhancements to the My 10X Journey platform.
We streamlined the process for employees and provided
additional functionality for managers, helping them to better
monitor their teams. These efficiencies help to facilitate
richer discussions between each employee and their manager.
My 10X Journey enables each of our
employees to create and track their
own unique career pathway. This
simple process is a constant dialogue
that enables personal growth and
supports high performance throughout
our business.”
Tony George
EVP, Human Resources
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.18
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Lucie Partners supports training
for non-employees
In May, we launched Lucie Partners, a new
learning management system developed
solely for training non-employees, including
contractors and temporary workers.
At Intertek, we are on a continuous journey to improve
the tools and applications available to our people to grow
and succeed in their careers. Lucie Partners builds on that
commitment by ensuring that all non-employees have
the critical knowledge and skills needed to contribute
effectively to our projects and deliver the high-quality
service we are known for.
Lucie – our global learning management system
The new platform complements Lucie, our global learning
management system, which is available to all Intertek
employees worldwide and gives them access to learning
resources that support the achievement of our business
goals. Lucie covers topics such as compliance, safety,
technical training, operational training and much more.
It also features our 10X Onboarding experience, which was
launched in 2023 to provide new colleagues with all the
information they need for a successful career at Intertek.
In 2024, our colleagues around the world completed
103,303
hours of training on Lucie.
Monthly
recognition
for AAA teams
During 2024, we continued to recognise our
business line, country and regional teams
for their outstanding achievements through
our monthly ‘AAA Stars’ programme.
Launched in 2023 after we refreshed our AAA
differentiated growth strategy, AAA Stars celebrates our
top-performing teams across the following categories:
financial performance, Net Promoter Score, employee
turnover, net zero performance, and ES&W.
Throughout the year, we recognised 1,493 teams which
achieved strong results across all, or the vast majority
of, categories.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.19
Sustainability performance Continued
People and Culture Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Our ‘You’ll Be Amazed’ highlights
Our ‘You’ll Be Amazed’ campaign continued
to thrive in 2024, building on its success
in showcasing the incredible breadth of
expertise and contributions made by our
people globally. Through this campaign, we
reinforced awareness of the critical role
Intertek plays in ensuring quality, safety,
sustainability and innovation across
industries worldwide.
Throughout 2024, we highlighted impactful stories of
our teams’ work, including advancements in sustainable
manufacturing, groundbreaking testing for next-generation
alternative fuels, and enhancing safety protocols for electric
vehicles and autonomous technologies. The campaign
showcased our commitment to supporting global progress,
from safeguarding renewable energy infrastructure to
ensuring that the food and water supply chain remains
secure and reliable.
We continued our monthly story competition, which
recognises the best and most engaging stories for promoting
engagement and fostering pride among our colleagues, and
we introduced weekly recognition for the top-performing
content. This initiative brought even more diverse stories
from our global teams, enhancing our social media presence
and inspiring stakeholders with powerful examples of how
Intertek makes a difference daily.
Skills development
As a provider of quality, safety and sustainability assurance
services, Intertek relies on a skilled workforce. We are
committed to offering attractive career development
opportunities and believe in personal growth for every
employee. We know that when each of us is growing and
developing, we move faster along our good to great journey.
Over the years we have made great progress with
our leadership development agenda as well as in
enhancing the tools and applications available to enable
people to grow and succeed in their careers.
We ensure that all employees receive adequate coaching,
development and training to be fully competent to carry
out their roles. This is supported by our many Group-wide
programmes including talent planning processes, my 10X Journey
that provides structure for individual growth planning, our 10X
Energies that help define winning behaviours, and our Lucie
training to help address key development and training needs.
The individual learning journey of each employee is
supported with diverse learning opportunities that are
continually refined based on business needs, employee
feedback, best practices, trends and new technologies.
There are many programmes across the business, providing
in-house and external learning opportunities. We recognise
that the wide range of sectors we support require different
types of technical training, education and support.
We offer:
• apprenticeships;
• internship programmes;
• college degrees;
• professional qualifications;
• formal and informal workshops and seminars;
• exciting cross-functional roles;
• leadership training programmes; and
• 10X Coaching opportunities with internally certified coaches.
Here are just a few of our inspiring ‘You’ll Be Amazed’ stories from 2024:
In action In action
Intertek Group plc
Annual Report & Accounts 2024
2.20
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
10X Leadership programme
During 2024, 175 senior leaders from 29
different countries took part in our 10X
Leadership programme led by our Chief
Executive Officer André Lacroix.
Through this bespoke series of workshops and seminars,
attendees explore how a humanistic approach to leadership
can help to empower employees with a sense of purpose
and unlock their unique individual talents. André highlights
this by sharing insights from his career across leading global
brands to help advance the leadership styles and personal
growth of our leaders at Intertek.
Since the 10X Leadership programme launched in 2019,
we have held seven in-person 10X Leadership events
across Greece, Italy, the UAE, the UK and the USA,
with more than 600 colleagues taking part.
By placing people at the heart of our
growth strategy we can help to build
businesses that create sustainable
value for all our stakeholders.”
André Lacroix
Chief Executive Officer
10X Coaching programme
Our in-house 10X Coaching programme
continues to grow, supporting colleagues
and helping us create a culture and
environment where people can unleash
their full potential.
Our 10X Coaching programme pairs leaders from across
our business with trained in-house coaches to facilitate
transformative discussions that support them in their
leadership development. These coaching sessions offer
a confidential and safe environment for participants to
examine their challenges and determine effective solutions.
We offer 10X Coaching to all 10X Leadership participants.
In 2024, we certified a new group of 10X Coaches, each
having received comprehensive training and internal
certification in the techniques of high performance 10X
Coaching. To ensure high levels of inclusion, our 10X
Coaches are spread across more than 20 countries
and speak multiple languages.
Testimonials from coachees:
I was able to come up with fresh
solutions and find the best path
forward myself, simply by thinking
about the questions asked by my
10X Coach. This experience was
truly incredible.”
10X Coaching provided me with a
confidential and safe space to explore
challenges and understand how I can
reframe my approach for success.”
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.21
Sustainability performance Continued
People and Culture Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Developing talent at every level
At Intertek, our global teams are the driving
force behind our efforts to bring quality,
safety and sustainability to life every day.
We are therefore committed to developing talent at every
level, whenever we can. From annual conversations on
growth and development for all colleagues, to opportunities
to take on new roles and responsibilities, we aim to create
an environment where our people can progress and broaden
their horizons.
One of the ways we do this is by providing opportunities for
colleagues to transfer their skillsets to different parts of the
business. This not only opens the door to new challenges and
further development for those colleagues but also helps us
to promote diversity of thinking, ensuring that we continue
to operate and innovate at the highest level.
After more than six years at the company, Anand moved
from his role in HR to lead our Intertek Inform and Assurance
services in Australia. “Since joining Intertek, I’ve moved from
line management to commercial HR, and then back to line
management. These opportunities have allowed me to gain
multi-faceted career experience and rich exposure to our
operational business, as well as building transferable skills,"
said Anand.
Rachel had been at the company for a similar amount of
time when she moved from her role in our Finance team to
her internal communications and events role. “In my previous
role, I worked closely with several functions and business
lines; now I’m able to draw on that experience to enhance
our communications and HR efforts on a global scale. It’s
great to feel like you’re adding value while also learning and
gaining new skills,” commented Rachel.
Igniting the spark of ambition
In 2024, we launched IGNITE, a series
of multi-day workshops focused on
firing-up and empowering our sales
leaders across the globe in line with our
AAA differentiated growth strategy.
Led by our global leadership team, IGNITE aims to inspire
our regional and business line sales leaders through a range
of dynamic discussions, breakout sessions and executive
presentations. The carefully designed programme
empowers these colleagues to tackle challenges and
develop actionable strategies to achieve the company’s
strategic growth objectives and drive excellence across
the Quality Assurance industry.
Over the year, we held three IGNITE workshops for leaders
across our global Softlines, Hardlines, Electrical, and Caleb
Brett business lines. Following the success of the 2024
programmes, preparations are underway for further
business line and regional IGNITE events in 2025.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.22
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
flexible working and performance management. Our Inclusion
and Diversity policy facilitates a culture of inclusiveness
where people are able to perform at their best, and where
their views, opinions and talents are respected, harnessed
and not discriminated against.
We are committed to maintaining the highest standards
of fairness, respect and safety.
MOSAIC: embracing
the power of diversity
It has been over a year since we launched
MOSAIC, our global diversity, equity and
inclusion programme. Through practical
workshops, team activities and a range
of valuable resources, MOSAIC encourages
our people to embrace the power of their
differences as we work together to bring
quality, safety and sustainability to life.
During 2024, our colleagues around the world organised
and engaged with a wide range of MOSAIC initiatives,
strengthening team bonds, and opening hearts and minds.
In focus: Middle East and Africa
In addition to our MOSAIC workshops, across the Middle East
and Africa our teams engaged on a range of important topics,
including culture, employee wellbeing and community initiatives.
Our colleagues united for a wide variety of cultural
celebrations, including Diwali, Ramadan, Onam and Gargee’an,
while also recognising significant annual occasions such as
UAE National Day, International Women’s Day and Emirati
Women’s Day.
Beyond these cultural and recognition events, our teams
participated in onsite medical camps and spearheaded
awareness campaigns on critical health issues like breast
cancer and heart health. Numerous employees also gave
blood during donation campaigns across the region.
In addition, our teams volunteered their time to support
charity events, environmental cleanliness drives and tree
planting initiatives. These collective actions not only
contributed to the improvement of local communities,
but also strengthened team bonds and reinforced our
sense of purpose and unity as colleagues came together
through shared experiences.
At Intertek, we have colleagues from over 100 countries
– all with different backgrounds, cultures and beliefs, and
all committed to respecting and understanding the needs
of each other, as well as those of our customers, suppliers,
shareholders and communities. Together, our people are
a rich mosaic of diverse and talented experts, passionate
about building an ever better world.
Diversity, equity and inclusion
At Intertek, achieving ever better performance depends on being
constantly open to pioneering new ideas that enable us to
improve what we do and how we do it. For us, this means having
an organisation that is truly diverse, equitable and inclusive.
To support our commitment to diversity, equity and inclusion
throughout the company, 100.0% of eligible employees
(rounded to the nearest 0.1%) completed our annual Code of
Ethics training in 2024 (2023: 97.6%), covering key policies and
practices related to ensuring a fair, respectful and inclusive
environment. During the year, we also delivered training and
workshops across the globe through MOSAIC, our diversity,
equity and inclusion programme, and engaged employees to
complete our unconscious bias training on Lucie, our global
learning management system.
READ MORE ABOUT BOARD LEADERSHIP
AND DIVERSITY ON PAGES 2.61 AND 2.85
Intertek has a history that goes back over 130 years, evolving from
the combined growth of a number of innovative companies from
around the globe. Diversity has always been at the heart of who
we are and will continue to provide the power behind our success
in the future. With team members from over 100 countries –
all with different backgrounds, cultures and beliefs – our diverse
workforce makes us the leading company we are today.
To achieve the optimum mix of skills, backgrounds and experience,
workforce diversity needs to go beyond discussing the percentage
of women to also include other diversity indicators. As a business
we want to ensure that we have the right capabilities to deliver
our strategy. We recognise the value that individuals of different
backgrounds and capabilities bring to the business.
Our diverse workforce helps us to understand, communicate
and trade with our vast client base through their understanding
of local issues and cultures. They add value in assuring our
services are tailored to our customer needs, which underpins
sales growth, customer retention and satisfaction.
We demonstrate that we are an inclusive and diverse global
family by applying all employment policies and practices in a
way that is informed, fair and objective. This covers all policies
relating to recruitment, promotion, reward, working conditions,
In action
Intertek Group plc
Annual Report & Accounts 2024
2.23
Sustainability performance Continued
People and Culture Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Gender diversity
We are determined to develop and retain more women in
senior roles.
Our goals
Improving gender balance is critical for us. We continue to
focus on gender diversity by attracting, developing and
retaining more talented women, particularly at senior levels.
We continue to pursue our goal to increase the number
of women in senior management roles to 30% by 2025.
Metrics and performance
35%
of our global TQA Experts are women.
We ensure that men and women are paid equally for doing
equivalent roles and we are committed to a number of
measures to ensure we provide an energising workplace,
free of any gender bias, where employees can flourish
based on their talent and effort.
To strengthen this, we ensure that our shortlists of
external hire candidates have a balance of gender diversity.
We remain committed to equality and provide flexible
working where possible.
Our overall workforce is 35% female and 65% male
representation. We have continued to work towards achieving
greater gender balance at senior leader level, and during 2024
we increased female representation among this group of
employees to 26.3% (2023: 23.6%). More detail on the gender
diversity of our Board, as well as ethnic diversity disclosures
for the Board and Group Executive Committee, can be found
in the Nomination Committee report on page 2.85.
Intertek TQA Experts by level
Male Female
Group Executive Committee 13 5
Senior leader
1
169 60
Whole organisation 29,029 15,971
1. Direct reports to the Group Executive Committee.
Intertek TQA Experts by region
Male Female
Americas 8,311 3,374
Asia 12,780 8,853
EMEA (incl Central) 7,938 3,744
Enhanced maternity
policy in the UK
An update to our maternity policy in the
UK means that more expectant mothers
will qualify for enhanced maternity pay.
Under the updated policy, expectant mothers are eligible for
enhanced maternity pay at an earlier qualifying date than
in the previous policy. This aligns to the qualifying period in
our UK paternity leave policy, which was updated in 2023,
and highlights our commitment to regularly reviewing and
improving employee benefits. The policy now also includes
greater clarity on how maternity pay is calculated and
more detailed information to address the frequently
asked questions we receive around maternity leave.
In addition to our enhanced maternity policy, we
introduced new UK policies in 2024 for bereavement
and compassionate leave, and carer’s leave, as well as
an updated flexible working policy.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.24
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Intertek Women’s Group hits
five-year milestone
Having celebrated its fifth anniversary in
2024, one of our Intertek women’s groups
has continued to increase its impact by
expanding into new areas of the business.
The Women’s Group is an inclusive group of colleagues
which meets monthly to create connections, share
engaging experiences, provide a safe space for discussion,
and inspire personal and professional growth. The group is
open to all Intertek employees, and since 2020 meetings
have been held virtually to enable more people across the
business to join.
This commitment to inclusion is reflected in the diverse
range of subjects and guest speakers embraced by the
Women’s Group. In 2024, key topics included care for the
elderly, networking skills development and the celebration
of Black History Month. These discussions built on themes
from previous years such as social connection, professional
development, sleep health, diversity, and financial wellbeing.
Women’s development
programme launched in
South Asia
On International Women’s Day, our team
in South Asia launched an impactful
programme to drive personal and
professional development for women
across the region at Intertek.
Intertek on Winning and Nurturing (‘iOWN’) is a
comprehensive series of five reflective sessions designed
to focus on wellbeing from a holistic perspective. Under
the themes ‘Winning’ and ‘Nurturing’, participants are
taken through modules on important topics like self-care,
networking and building resilience. These topics were
identified through a needs assessment which highlighted
significant areas in the personal and professional growth
journeys of women in South Asia.
The programme’s emphasis is on peer learning and sharing
to create a robust community that supports and uplifts
women at Intertek. All programme leaders are therefore
Intertek employees, trained during a dedicated workshop
in Delhi, India, to enable them to conduct iOWN sessions at
different locations across South Asia. Throughout 2024,
our trainers delivered more than 35 sessions across India
and Bangladesh, welcoming around 150 participants.
Intertek Group plc
Annual Report & Accounts 2024
2.25
Intertek Group plc
Annual Report & Accounts 2024
2.25
Sustainability performance Continued
People and Culture Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Talent across all generations
We value all of our colleagues, regardless of age, and have
practices in place to develop and retain workers of all ages.
Our goals
We will continue to develop proactive approaches to
recruitment to ensure we have an age-diverse and
balanced employee age profile.
Metrics and performance
58%
of our global TQA Experts are under the age of 40.
The technical expertise needed in many parts of
our complex business is acquired over several years.
This is reflected in the overall average age of 39.
We will continue to promote and endorse fair, consistent
and thoughtful working practices that are in accordance
with our Values.
At Intertek, we are proud to be an equal opportunities
employer.
We consider all qualified applicants for employment
regardless of gender, ethnicity, religion, orientation,
age, disability and other protected characteristics.
Under 29 years old:
23.5%
Between 30 and 39 years old: 34%
Between 40 and 49 years old: 24%
Between 50 and 59 years old:
12.5%
60 years old and over:
6%
Percentage of employees by age range
In action
Intertek Group plc
Annual Report & Accounts 2024
2.26
Sustainability performance Continued
People and Culture Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Cultural diversity
(arising from country of origin)
Cultural diversity supports our global business
and is key to our success.
Our goals
We are committed to cultural diversity and will ensure that
Intertek’s colleagues are representative of the countries
where we do business.
Metrics and performance
41
different nationalities across our senior leadership.
We recognise that comprehensive diversity monitoring
is foundational to our diversity and inclusion strategy,
which lies at the heart of our culture. We continue to
monitor protected characteristics and to promote further
transparency, particularly at senior level, and we have
plans to update our diversity monitoring.
In addition to cultural diversity arising from country of
origin, we have enhanced our reporting on ethnicity.
READ MORE ABOUT THE DIVERSITY OF
OUR BOARD ON PAGES 2.61 AND 2.85
Disability inclusion
Adopting a universal design mindset.
Our goals
To adopt a disability-inclusive mindset as well as deliver
on our commitment to the Valuable 500.
This is centred on incorporating disability inclusion criteria
into the full spectrum of products and services we offer
our clients.
Metrics and performance
We believe that in order to create rapid, system-level
change specific to disability inclusion and equity, we must
actively seek out opportunities to collaborate with other
businesses who hold the same values and are equally
committed to effecting change.
We also recognise the gaps in the global business
community's knowledge of employees with disabilities
and are supportive of the call for greater visibility of
the current state of affairs.
Having assessed the guidance on self-identification
published by the Valuable 500, we have implemented
the learnings into our approach.
Supporting education and
opportunity for disabled students
Intertek Caleb Brett South Africa is
sponsoring a group of young disabled
learners to gain qualifications in business
administration and information technology.
Part of our commitment to skills development and diversity
and inclusion, the initiative aims to prepare the students
for potential opportunities at Intertek or help them get
into the job market through a recognised qualification.
Our local team stays in close contact with the education
provider throughout the courses to get progress updates
on the students and understand if there are any additional
support needs.
The initiative follows previous programmes in the country
where we have sponsored unemployed young people
to get qualifications more aligned to our operational
environments, such as laboratory or field-based roles.
Intertek Group plc
Annual Report & Accounts 2024
2.27
Sustainability performance Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Working with Customers
We ensure our
customers can
operate safely
and sustainably
in a complex world
Innovative sustainability services have been
core to our global business for more than
100 years.
Through our leading-edge innovations and integrated ATIC
solutions, we are uniquely placed to help our customers
understand, achieve and validate their existing and emerging
sustainability goals.
Capturing the right data to optimise operations
Identifying and managing risks that can impact our service
quality is key to ensuring customer satisfaction. Our 5x5
metrics tool and processes enable the collection and
review of performance metrics across the areas of sales,
customers, people, finance and operational excellence that
are fundamental to disciplined performance management.
The 5x5 metrics provide every Intertek site and team leader
with 360º insight into their business to guide their decision
making and ultimately lead to superior business performance.
Customer focus
To become the most trusted partner for Quality
Assurance, we have made a promise to our customers:
Intertek Total Quality Assurance expertise, delivered
consistently with precision, pace and passion,
enabling our customers to power ahead safely.
Intertek has a strong focus on customers, at all levels of the
organisation, and our customer relationship management
is integrated into our approach through a key account
management structure and dedicated sales teams.
Our Marketing & Sales Operations team works closely
with business lines and country leadership to drive
continued improvements across marketing, sales and
digital tools to ensure that every aspect of customer
engagement aligns with our TQA Customer Promise.
Customer Promise
Intertek’s Total Quality Assurance expertise,
delivered consistently with precision, pace and
passion, enabling our customers to power
ahead safely.
Listening to our customers
Since 2015, we have used the NPS process to listen
to our customers. These insights give us a deep
understanding of what our customers need and want,
fuelling our innovations. Our customer interviews keep
us laser-focused on delivering an ever better service.
Average NPS interviews per month during 2024
6,036
Accelerating positive sustainability impact
We recognise the importance of sharing our own sustainability
journey with our customers, partners and local communities.
We actively engage with requests to support individual
sustainability and carbon performance assessments, including
EcoVadis and the CDP Climate Change questionnaire.
This gives us the opportunity not just to meet the demands
of our investors and customers, but also uncover risks and
opportunities, and track and benchmark our progress.
We aim to collaborate as a trusted supply chain partner to
deliver improvements in the areas most material over the
long term, and accelerate sustainability impacts. We are here
to help our stakeholders understand sustainability, why it
matters, and how to effectively integrate it within business.
Channels of customer interactions
Customer meetings
Emails and phone calls
Web enquiry responses
Workshops and seminars
Social media communications
Intertek Group plc
Annual Report & Accounts 2024
2.28
Sustainability performance Continued
Working with Customers Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Supporting our customers
with their sustainability agendas
As a TQA provider, we are in a strong
position, given our global scale and expertise,
to support the sustainability goals of our
customers with our industry-leading Total
Sustainability Assurance solutions.
In action
In action
Ensuring the durability
of M&S clothing
Intertek conducts tests for leading British
retailer Marks & Spencer (‘M&S’) worldwide
to ensure that its clothing meets the
highest standards of quality and durability.
Through our decades-long partnership with M&S, we
have developed a series of rigorous tests for its products.
And while we support M&S with various garment testing
services, we have recently worked with the company on its
goal of making school uniforms better for children, parents
and our planet. School uniforms are worn over 50 times
more than the average item of clothing, and the durability of
clothing is a significant factor in its environmental impact.
Our work with M&S highlights our joint commitment to
ensuring the production of durable, high-quality clothing
to reduce waste and educate consumers on sustainability.
The partnership also supports M&S’ ‘Plan A’ roadmap to
drive the circular economy.
LEARN MORE ABOUT OUR
DURABILITY TESTING SERVICE
Validating Decathlon’s
environmental claims
Having developed a methodology for
creating new datasets to carry out product
life cycle assessments in alignment with
the Product Environmental Footprint
method, Decathlon enlisted Intertek
to validate its efforts.
Our Softlines experts reviewed Decathlon's processes
and evaluated its criteria for communicating about its
ecodesign approach to products, in line with the EU Green
Claims Directive and French climate law. This included
thoroughly reviewing the company’s methodology
documentation, interviewing key team members and
highlighting opportunities for improvement.
Decathlon can now make environmental claims with increased
confidence, reassuring its customers of the sustainability
credentials of the products they are purchasing.
LEARN MORE ABOUT OUR ENVIRONMENT
CLAIM VERIFICATION SOLUTION
Intertek Group plc
Annual Report & Accounts 2024
2.29
Sustainability performance Continued
Working with Customers Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
In action
Verifying recycled
content in pet products
Petmate is an American manufacturer of
pet products which supplies major retailers.
The company is committed to creating
safe and durable items, while also investing
significantly in sourcing and manufacturing
products with a low environmental impact.
To make customers and the wider industry aware of
its commitment to the environment, Petmate worked
with the Intertek Assuris team to verify the percentage
of recycled plastic used in its US-made dog kennels.
After comprehensive analysis involving raw material
purchases and factory audits, we were able to verify
the company’s claim that the kennels are “made from
95% recycled polypropylene”.
Having substantiated this claim, Petmate can confidently
market the environmentally friendly credentials of these
kennels, helping consumers to make more informed
product choices.
LEARN MORE ABOUT OUR VERIFIED
RECYCLED CONTENT PROGRAMME
In action
Advancing responsible
sourcing at Hershey’s
The Hershey Company, a global
confectionery leader, partnered with
Intertek’s Program Advisory & Collaborative
Engagement ('PACE') services to support
the launch of its Responsible Sourcing
Supplier Due Diligence programme.
Intertek played a crucial role in ensuring that Hershey's tier
1 supply chain partners adhered to the company’s supplier
code of conduct. By offering strategic and operational
guidance, we helped Hershey implement sustainability
dashboards, enhance human rights practices and improve
supplier compliance. This collaboration significantly
strengthened Hershey’s supplier engagement, leading to
improved worker conditions and advancing the company’s
sustainability objectives.
LEARN MORE ABOUT OUR
PACE SERVICES
Intertek Group plc
Annual Report & Accounts 2024
2.30
Sustainability performance Continued
Working with Customers Continued
3: Financial Report2: Sustainability Report1: Strategic Report
In action
Certifying low-carbon leaders
in China’s dairy industry
The production of livestock plays an
important role in our world, providing food
and employment to billions of people every
day, but it is also a significant contributor
to global greenhouse gas emissions.
Sustainable practices in animal husbandry –
the breeding and raising of domestic animals
– are therefore vital to the agriculture
industry’s low-carbon transition.
As a leading provider of global agriculture solutions,
Intertek issued China’s first Low-Carbon Farm Dairy Farming
Certification to Pingdingshan Youran Animal Husbandry
Co Ltd. ('Youran'). This certificate is based on Intertek’s
2023 ‘Requirements for Low-Carbon Farming – Dairy Cattle’
standard, which aims to standardise livestock farming
activities, reduce negative impacts of husbandry on the
environment through the introduction of green ecological
standards, and promote the sustainable development of
the livestock industry.
Our comprehensive and in-depth review and verification of
Youran dairy farm covered herd management, low-carbon
feed application, farming technology specifications, manure
management, energy management and carbon reduction
measures. The certification highlights Youran’s high level
of carbon management throughout the entire livestock
breeding process.
By driving a green and low-carbon future for the livestock
industry, companies like Intertek and Youran help to
reduce environmental pollution, protect ecosystems and
promote a harmonious coexistence between agriculture
and the environment.
LEARN MORE ABOUT OUR LOW-CARBON
FARMING SERVICES
In action
Fuelling the sustainable
aviation industry
Intertek Caleb Brett played a role in
achieving the first delivery of Neste
MY Sustainable Aviation Fuel (‘SAF’)
to Singapore’s Changi Airport, supporting
the blending process to meet ASTM
D7566 standards.
SAF, made from renewable resources like used cooking
oil and animal fat wastes, significantly reduces carbon
emissions, offering a solution to the aviation industry's
push for sustainability. This milestone marks a critical
step in reducing the sector's reliance on fossil fuels
and underscores Intertek’s commitment to advancing
sustainable practices in aviation.
LEARN MORE ABOUT OUR SUSTAINABLE
AVIATION FUEL SERVICES
Intertek Group plc
Annual Report & Accounts 2024
2.31
Sustainability performance Continued
Working with Customers Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
In action
In action
Creating essential employee
training resources
El Pueblo Mexican Restaurant in San Diego,
California, enlisted the expertise of
Wisetail, an Intertek Company, to launch
its long-awaited learning management
system, including an interactive employee
onboarding programme.
The restaurant’s goal was to support operational
sustainability and enhance efficiency, resilience and
compliance, while minimising risk and the need for
additional internal resource.
In just 83 days from project discovery to completion,
the Wisetail instructional design team created 52
employee training courses in both English and Spanish.
The courses have enhanced the quality and efficiency
of the restaurant’s basic training offering, transforming
the existing e-learning experience to make it interactive
and relevant to the needs of both employees and the
business. In addition to content creation, we also integrated
several relevant courses from Wisetail’s existing content
marketplace into the training programme.
El Pueblo Mexican Restaurant now has an extensive
interactive learning library streamlined for each role, helping
to maximise employee retention and reduce the time spent
onboarding. By investing in training that reinforces safe,
efficient and high-performing teams, the restaurant is
creating a sustainable work environment where employees
thrive and operations run smoothly.
LEARN MORE ABOUT WISETAIL’S ALL-IN-ONE
LEARNING AND OPERATIONS PLATFORM
Driving inclusion
at Frontera Energy
Intertek has partnered with Frontera
Energy, a leading oil and gas operator in
South America, to enhance community
relations and increase the number of
women within its operations in Puerto
Gaitán, Colombia.
Working to support the goals of Frontera’s existing social
and gender programmes, we focused on hiring people
from local communities and ensuring that the company’s
recruitment practices allowed for greater inclusion. As a
result, the percentage of both women and local people
involved in Frontera’s operations increased significantly,
strengthening community ties, improving economic
stability for local families, and enabling Frontera to
better align with its policies on women's participation.
This ongoing collaboration highlights Intertek and
Frontera’s joint commitment to driving positive change
through impactful diversity and inclusion programmes.
Intertek Group plc
Annual Report & Accounts 2024
2.32
Sustainability performance Continued
Working with Customers Continued
3: Financial Report2: Sustainability Report1: Strategic Report
In action
In action
Strengthening Transportadora’s
business continuity plans
Intertek conducted Argentina's first
independent climate risk and vulnerability
assessment to strengthen the climate
resilience and business continuity of
the country’s leading natural gas
transportation company.
Transportadora de Gas del Sur S.A. (‘TGS’) is responsible
for transporting over 60% of the gas produced in Argentina.
As a publicly traded company on the New York Stock
Exchange, TGS is required to present its plans for evaluating
and mitigating the impacts of extreme climate events caused
by climate change to its investors, shareholders and board
members. Its challenge was to update its business continuity
plan to minimise the impact of disruptive events and better
protect its people and local communities.
Delivering supply chain
traceability assessments
to new standard
Intertek’s clean energy advisory division
Clean Energy Associates (‘CEA’) has
become one of the first assessment
bodies to assess the solar industry’s
progress on environmental, social and
governance standards under the Solar
Stewardship Initiative (‘SSI’).
SSI works collaboratively with manufacturers, developers,
installers and purchasers across the global solar value
chain to foster responsible production, sourcing and
stewardship of materials. Its newly developed Supply Chain
Traceability Standard, published in December 2024, is
tailored to the photovoltaic industry to assess production
sites’ traceability management systems to evaluate where
the materials used at each link come from and how they
are traced. SSI members are required to have two sites
assessed for compliance by an approved assessment body
like CEA within 12 months of either joining the initiative
or the publication of the standard.
With extensive experience and expertise in traceability
and solar inspections, CEA can perform these assessments
to help SSI member companies to gain greater confidence
and visibility into their supply chains. The Supply Chain
Traceability Standard serves as the basis for all CEA
traceability audits for European clients starting in 2025.
LEARN MORE ABOUT OUR SERVICES FOR
SOLAR, ENERGY STORAGE AND MORE
Aiming to reinforce TGS’ business continuity plan for the
next 15 years, our Sustainability team in Buenos Aires
carried out comprehensive analysis to understand the specific
needs of the company’s decision makers for sustainability.
During this process, we leveraged Intertek’s leading
sustainability services and global network of experts, and
applied the ISO 31000, ISO 14091 and ISO 22301 standards.
The resulting study evaluated the climate vulnerabilities and
risks associated with 45 TGS assets, including nearly 10,000
km of pipelines and 40 compression stations.
Ultimately, the project left TGS better positioned to
anticipate, prepare for and mitigate the negative impacts
of severe climate events.
LEARN MORE ABOUT OUR CSR
AND SUSTAINABILITY SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.33
Sustainability performance Continued
Working with Customers Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
In action In action
Quantifying the benefits
of tidal lagoons
Techniques for harnessing tidal energy are
long-established, but there are currently
no tidal lagoon projects in existence
globally. Previous studies indicate that
10 gigawatts of installed capacity, equal
to around 5% of UK energy use, could
be achieved through proposed projects.
Tidal energy technologies could therefore
play an important role in helping the UK
to meet its net zero targets by 2050.
In 2024, Intertek Metoc won a research project to provide
hydrodynamic modelling expertise as part of the Welsh
Government’s Tidal Lagoon Challenge, an innovative
competition to help quantify the potential benefits of tidal
lagoons and reduce or remove the barriers to development
in Wales. The project’s main objectives include modelling
the flexible operation of tidal lagoons, quantifying
their true long-term economic value and presenting a
recommendation for policy support. We are working
alongside the Offshore Renewable Energy Catapult,
Cardiff University and Western Gateway on this project.
The Intertek team is modelling a wide range of tidal lagoon
configurations to assess the power potential over their
design life, resulting in an annual yield estimate for each
scheme. These data will feed into Cardiff University’s work
package and ultimately help to quantify the economic
value of tidal lagoons, providing an economic and financial
rationale behind tidal lagoon projects, as well as other
recognised evaluation methods.
LEARN MORE ABOUT OUR
TIDAL ENERGY SERVICES
Shared supplier audits for
reduced environmental impact
As a highly regulated sector, companies
in the pharmaceuticals industry must
ensure that their suppliers meet the
required standards for quality and
compliance. Supplier audits are therefore
essential in helping to mitigate supply
chain risks, protect patient safety and
maintain regulatory compliance.
At Intertek, we offer shared audits – scheduled audits
performed on one supplier on behalf of several of
sponsor companies. This option enables our customers
in the healthcare industry to join pre-scheduled audits,
streamlining the process and maximising time, resources,
and cost efficiency for both manufacturers and suppliers.
Each shared audit customer receives a customised,
confidential audit report that enhances transparency
and quality across their supply chain.
To make the process even simpler, in 2024 we launched
our Audit Live List tool, which gives real-time information
on which suppliers are being audited and when, allowing
companies to choose which audits to join.
In addition to the customer benefits, we have also seen
a significant positive environmental impact. Shared audits
can significantly decrease the carbon footprint of the
auditing process, as they reduce the need for travel,
which is one of the main sources of emissions in the
pharmaceuticals industry. Since we launched our shared
audit service 15 years ago, we have helped to avoid an
estimated 7,500+ trips associated with supplier auditing
covering diverse healthcare supply chains across the world.
LEARN MORE ABOUT OUR
SHARED AUDIT SERVICES
2.34
Intertek Group plc
Annual Report & Accounts 2024
Sustainability performance Continued
Working with Customers Continued
3: Financial Report2: Sustainability Report1: Strategic Report
In action
Helping DRC to meet
its environmental goals
Intertek has partnered with the
Government of the Democratic
Republic of the Congo (‘DRC’) as the
sole conformity assessment body
(‘CAB’) for its Eco-Levy programme.
The DRC Eco-Levy programme is an end-to-end risk-
based assessment programme, designed to support and
finance the end-of-life electronic waste management
of certain regulated products, including tyres, electrical
and electronic equipment. Through the programme,
all exporters to the DRC whose products are regulated
under the Eco-Levy programme are required to provide
an Eco-Certificate in line with government regulations.
As the programme’s CAB, we apply a risk-based approach
to performing inspections of shipments. Used regulated
product consignments are subject to mandatory
inspections to ensure that the products are not wasted
or scrapped. If a shipment of regulated products is found
to be compliant, we collect the Eco-Levy and issue an
Eco-Certificate to the exporter.
Through this appointment, which reinforces our position
as a leading provider of conformity assessment services
in Africa and worldwide, we are supporting the DRC in
achieving its environmental objectives.
LEARN MORE ABOUT OUR
GOVERNMENT & TRADE SERVICES
Intertek Group plc
Annual Report & Accounts 2024
2.35
Sustainability performance Continued
Working with Customers Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
In action
In action
Spinning the wheel in Ecuador’s
tyre retreading project
For the last 10 years, Intertek Government
& Trade Services (‘GTS’) has been
supporting the Ecuadorian Government
with its tyre retreading project, helping
to boost the economy, decrease waste
and reduce reliance on imports.
Under the project, retreading companies in Ecuador
process used tyres and restore them to like-new condition
for second use. These companies must comply with the
RTE INEN 067 quality standard, a certification which our
Intertek GTS Ecuador team has been exclusively providing
since the project started.
As certification provider, we conduct initial evaluations,
recertification and monitoring audits for retreading
plants to ensure compliance with the RTE INEN 067
'Tyre Retreading Process' standard, issuing a Certificate
of Conformity to those that meet the requirements.
Having gained extensive experience in the retreaded tyre
sector, our specialised team drives continuous improvement
by identifying non-conformities in audits and proposing
improvements to the tyre retreading process.
Ultimately, we are helping to strengthen consumer
trust and increase the adoption of retreaded tyres. The
success of this project has led to the significant growth of
Ecuador’s tyre retreading industry, creating much-needed
jobs and saving thousands of tyres from landfill each year.
LEARN MORE ABOUT OUR
GOVERNMENT & TRADE SERVICES
Advancing BESS safety
and performance
Battery energy storage systems (‘BESS’)
are a critical component in the global
energy transition, enabling the integration
of wind, solar and other renewable sources
into electricity grids. Designed to store and
release energy when needed, they also
play an important role in enhancing energy
efficiency and resilience.
As demand for clean energy grows, so does the need for
reliable, safe and high-performing BESS. However, the
use of advanced technologies introduces unique safety
and performance challenges, including fire and system
failure risks.
Through comprehensive end-to-end testing, risk
assessment and certification services, Intertek is
helping BESS manufacturers ensure the safety,
reliability and performance of their products. Our
expertise supports innovation in energy storage while
ensuring compliance with critical safety standards. And
with our help, manufacturers are developing safer, more
reliable BESS that accelerate the clean energy transition.
LEARN MORE ABOUT OUR
BESS SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.36
Sustainability performance Continued
Working with Customers Continued
3: Financial Report2: Sustainability Report1: Strategic Report
In action
Transitioning to a sustainable
HVAC/R industry
As the world increasingly focuses on the
reduction of greenhouse gas emissions,
the heating, ventilation, air conditioning
and refrigeration (‘HVAC/R’) industry is
undergoing a transformative shift.
Manufacturers are replacing traditional refrigerants – fluids
used in cooling, heating or reverse cooling and heating of air
conditioning systems and heat pumps – with eco-friendly
alternatives to minimise environmental impact. However, many
of these new refrigerants, while more sustainable, are classified
as flammable, creating new safety and performance challenges.
Intertek is playing a vital role in helping HVAC/R manufacturers
navigate this complex transition by providing rigorous
testing and certification services. Our expertise ensures that
these new flammable refrigerants meet safety standards
and performance expectations, while also supporting the
industry in its journey towards greater sustainability. Our
range of comprehensive testing and certification services
include flammability and leakage testing, system performance
validation and compliance with global standards.
With our support, HVAC/R manufacturers can confidently
develop more sustainable products that contribute to the
fight against climate change without compromising on safety
or performance.
LEARN MORE ABOUT HVAC/R
CERTIFICATION AND TESTING
In action
Transforming future mobility
The future of mobility is a dynamic and
evolving landscape. Innovations and
advances are being seen across both
electric vehicles and cleaner combustion
engines, which are leveraging advances in
sustainable fuels and hybrid technologies.
Intertek’s Transportation Technologies (‘TT’) team is
working closely with manufacturers across the automotive
ecosystem to develop and validate a wide range of next-
generation innovations.
With specialist facilities in Europe, North America and
Asia, our TT experts partner with original equipment
manufacturers (‘OEMs’) and their supply chains to navigate
the evolving automotive landscape and deliver high-quality
products for the vehicles of today and tomorrow.
At our two dedicated laboratories in Milton Keynes, UK,
our teams are working with leading OEMs to test both
engines and electric drive systems. We are also working
with global players in fuels and lubricants to develop future
technologies to support the evolution of these automotive
technologies. From next-generation battery cooling fluids
that can work faster and more effectively, to the optimal
composition of electric vehicle fluids to maximise product
efficiency, our experts are helping market innovators to
create new products that will enable lighter and more
efficient battery technologies to be implemented into
future vehicles.
Meanwhile, our specialist electric powertrain team is
enabling manufacturers to successfully transition from
traditional internal combustion powertrains to electric,
with confidence that quality and performance are not
compromised as they bring brand-new models, and
electrified versions of existing cars, to markets worldwide.
LEARN MORE ABOUT OUR
AUTOMOTIVE SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.37
Sustainability performance Continued
Working with Customers Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
In action
In action
Providing assurance for
sustainability reports
Intertek Assuris has provided limited
assurance on the sustainability report of
Mumbai International Airport Limited (‘MIAL’).
We carried out the assurance process in two phases. First,
we conducted reasonable assurance on core disclosures in
the Business Responsibility & Sustainability Report in line
with guidelines from the Securities and Exchange Board of
India. This included assurance of various environmental and
social indicators, from emissions and water consumption
to safety and inclusion. In the second phase, we performed
limited assurance on selected disclosures for MIAL in
accordance with Global Reporting Initiative guidelines.
By ensuring the accuracy, reliability and consistency of
its reporting, we enabled MIAL to clearly demonstrate
its commitment to bettering society and environmental
sustainability to all stakeholders.
LEARN MORE ABOUT OUR
SUSTAINABILITY ASSURANCE SERVICES
Providing tailored solutions
for CSRD compliance
The European Union’s Corporate
Sustainability Reporting Directive (‘CSRD’)
has modernised and strengthened the rules
concerning the social, environmental and
governance information that companies need
to report. Having entered into force in January
2023, it will impact an increasing number of
large companies and listed small and medium-
sized enterprises in the coming years.
Intertek’s sustainability expertise, combined with our in-depth
understanding of our customers’ operations across a broad
range of sectors, helps companies prepare for this significant
change. Our flexible CSRD solutions provide our customers
with tailored support to meet their needs and ensure that
they are in the best position to comply with the directive.
We take our customers on the journey to compliance,
starting with educating management teams on their
company’s requirements, scoping the reporting activity
and conducting a double materiality assessment.
We train teams to understand the implications that CSRD
has for their business, as well as enabling them to assess
stakeholders, consider mandatory disclosure requirements
and prepare their submissions with confidence.
In addition, our subject matter experts help companies assess
their corporate sustainability practices and identify any gaps
or areas for improvement, providing strategic action plans
to ensure alignment with CSRD requirements. This helps
to reduce complexity, costs and resources required to meet
compliance. We can also support the reporting process, and
in some countries, we are among the auditing companies
approved to complete third-party validation of CSRD reports.
LEARN MORE ABOUT OUR
CSRD SOLUTIONS
Intertek Group plc
Annual Report & Accounts 2024
2.38
Sustainability performance Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Environment
Our goal is to
decarbonise our
business by 2050
At Intertek, we understand our organisation’s
impacts on the environment and continuously
look for opportunities to mitigate them in
regard to climate change, use of resources,
ecosystems and waste management.
We recognise the critical role that the private sector plays in
tackling the climate crisis, providing innovative solutions, reducing
greenhouse gas ('GHG') emissions and setting ambitious targets,
thereby helping to drive the transition to a low-carbon economy.
Governance
Intertek’s environmental governance flows from the Board
to every site.
To advocate for accelerated climate action, our Net Zero
Steering Committee (with members including our Group CEO,
Group CFO, EVP – Sustainability, Group Company Secretary,
Head of ESG and Non-financial Reporting, and Group Head of
Risk) works with our countries on our detailed climate-related
investments and action plans, monitors site-level activities
across a range of metrics and tracks progress against our
GHG emissions reduction targets.
Our Environmental and Climate Change policy, which we
reviewed and revised in 2024, outlines the commitments
we adhere to.
Read our Environmental and Climate Change policy at
intertek.com/about/our-responsibility
Our operations apply a precautionary approach and comply
with all applicable environmental regulations and permits.
Environmental management systems support our
operations to meet environmental protection standards,
comply with legislation and improve reporting and
transparency. We have implemented ISO 14001 and/or
ISO 45001 across 129 of our sites.
READ MORE ABOUT CLIMATE-RELATED
GOVERNANCE ON PAGE 1.67 IN REPORT 1
What is our impact?
Our global reach spans thousands of employees, clients and
suppliers. This scale represents both commercial opportunity
as well as a responsibility to our people, the communities in
which we operate and the wider environment.
As a multinational company, we recognise that, although
our own operations may not be as energy-intensive or
resource-depleting as other industries, good management
of the relevant and material topics is critical to protect
the environment.
Our activities around the world are diversified across both
laboratories and offices. Carbon emissions are our biggest
environmental impact, and through continual monitoring
and assessment of our operations, we are now able to
apply more targeted actions to reduce our carbon
footprint, with particular focus on energy efficiencies
and operational excellence.
The energy we use in our laboratories and offices
continues to be the largest contributor to our carbon
footprint, making it a priority in our environmental agenda.
To make real change happen, we believe that all our people
need to have ownership of their carbon footprint and be
empowered and inspired to take ambitious actions to
reduce it – putting our Sustainability Excellence approach
into action.
Intertek Group plc
Annual Report & Accounts 2024
2.39
Sustainability performance Continued
Environment Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Net zero ambition and
commitment. Prioritise
direct emissions reductions
and neutralise any
remaining emissions.
Joined Business
Ambition for
1.5°C campaign.
Target: 70% of suppliers
by spend to set
science-based targets.
2021
2027
2050
Baseline for
GHG emissions
reduction targets.
Target: Reduce absolute
scope 1, 2 and 3 (business
travel and employee
commuting) emissions
50% vs 2019 baseline.
ESG element included
in annual incentive
framework.
2019
2030
2022
Key milestones: Achieved On track
SBTi-validated
near-term targets.
2023
"Intertek Group plc commits to reduce
absolute scope 1 and 2 GHG emissions
50% by 2030 from a 2019 base year.
Intertek Group plc also commits to
reduce absolute scope 3 GHG emissions
from business travel and employee
commuting 50% within the same
timeframe. Intertek Group plc further
commits that 70% of its suppliers by
spend covering purchased goods and
services, capital goods and upstream
transportation and distribution, will
have science-based targets by 2027."
Our Climate Transition Plan
Our GHG emissions reduction journey
At Intertek, we recognise the urgent need to address climate
change and are committed to aligning our operations with a
low-carbon economy. Our Climate Transition Plan is a critical
component of our long-term strategy to reduce GHG emissions,
enhance resilience to climate-related risks, and ensure that we
contribute positively to global sustainability goals.
Our plan has been designed to guide our transformation
over the years, focusing on both reducing our environmental
impact and adapting to the evolving regulatory, market and
physical risks posed by climate change. In 2024, we have
made substantial progress in key areas, laying the
foundation for further advancements in the years ahead.
Key pillars of our Climate Transition Plan
Carbon emissions reduction targets
We are committed to reaching net zero emissions by 2050,
with an interim target to reduce absolute scope 1, scope 2
and scope 3 (business travel and employee commuting) GHG
emissions by 50% before 2030.
This will be achieved through a combination of energy
efficiency initiatives, increased use of renewable energy
generation and procurement, and the transition to
lower-carbon transportation.
Climate-related risks and opportunities
As part of our climate transition, we are actively assessing
the physical risks posed by climate change, including
extreme weather events and supply chain disruptions.
In alignment with the Task Force on Climate-related Financial
Disclosures ('TCFD') recommendations, our TCFD compliance
statement aims to provide stakeholders with the necessary
information to undertake robust and consistent analyses of
the potential financial impacts of climate change.
MORE INFORMATION ON OUR TCFD STATEMENT
CAN BE FOUND ON PAGE 1.65 IN REPORT 1
Sustainable supply chain
Our goal is to ensure that by 2027 70% of our key supply chain
partners will have set their own science-based climate targets.
We are working with our suppliers to encourage sustainable
practices throughout our value chain. This includes collaborating
with partners to ensure environmental responsibility and
sustainable practices.
READ OUR SUSTAINABLE PROCUREMENT POLICY
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Transparency and reporting
We understand that accountability is essential to ensuring
meaningful progress. We are committed to reporting on the
progress of our environmental impacts, with annual updates
in this report.
Our progress will continue to be measured and reported using
recognised frameworks such as the GHG Protocol, and in line
with evolving global standards such as the European Union ('EU')
Corporate Sustainability Reporting Directive ('CSRD') and the
Interntaional Sustainability Standards Board ('ISSB').
Employee engagement
Achieving our climate goals requires the engagement of every
part of the organisation. We will launch internal training
programmes to raise awareness of climate issues among
employees and to integrate sustainability into decision making
at all levels.
As we continue to refine and implement our Climate Transition
Plan, we are confident that the actions we are taking today
will not only help mitigate climate change but will also drive
long-term value for our business and stakeholders. Our
commitment to climate action is integral to our Sustainability
Excellence strategy, and we will continue to prioritise
sustainability in every aspect of our operations moving forward.
Scope
1
Scope
2
Scope
3
Intertek Group plc
Annual Report & Accounts 2024
2.40
Sustainability performance Continued
Environment Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Key environmental achievements
The success of our environmental performance in 2024 can be
attributed not only to our strategic objectives but also to the
involvement of all employees in our sustainability initiatives.
Through training, workshops and clear communication, we
continue to foster a culture where environmental responsibility
is a shared priority at all levels of the organisation.
One of the most notable accomplishments in 2024 was our
significant reduction in carbon emissions. Through the
continuous monitoring of energy consumption and emissions
across all operations, we identified key areas where we could
implement more energy-efficient technologies and improved
operational processes. By optimising energy use in our offices
and laboratories and transitioning to cleaner energy sources, we
successfully reduced our operational market-based emissions by
16.7% against 2023 and 47.2% against our base year (2019:
291,519 tCO
2
e).
Total operational market-based emissions
1
were 153,807 tCO
2
e
(2023: 184,612 tCO
2
e).
45.3
tCO
2
e
1
emitted per £m of revenue
2,3
16.7%
Operational emission reductions
2023–2024
1. Operational market-based emissions as defined on page 1.32 in Report 1.
2. Revenue for FY 2024 as shown on page 1.31 in Report 1.
3. 2023: 55.5 tCO
2
e emitted per £m of revenue.
47. 2 %
Operational emission reductions
2019–2024
Climate-related focus areas
Low-carbon fleet: We are moving to upgrade
our fleet to low-emission vehicles. Several
countries have completed pilot schemes which
allowed us to better understand our operational
and business needs, as well as the challenges
in the existing infrastructure. We will continue
to transition our other eligible fleet.
Low-carbon energy generation: We are
producing and consuming our own electricity
after investing in renewable energy systems
for at least one site in nine countries.
Direct emissions from sources which Intertek owns
or controls:
• Switch to lower-carbon vehicle fleet
• Identify and implement fleet efficiencies
• Optimisation of buildings
(heating/cooling)
Energy purchased from renewable sources:
At least one site in 22 (2023: 13) countries is
now powered by 100% renewable electricity
backed by Energy Attribute Certificates.
Indirect emissions from purchased
electricity, heat and steam:
• Procurement from renewable sources
• Low-carbon energy generation
• Energy-efficient buildings
• Energy-efficient equipment
Employee-efficient transportation initiatives:
We have invested in electric vehicle chargers in
several countries with the intention to support
a low-energy transition. We are also providing
shuttle bus services for more sustainable
employee commuting in several countries.
Value chain emissions:
• Optimise business travel
• Employee engagement on efficient ways of
commuting
• Supplier sustainability engagement
Intertek Group plc
Annual Report & Accounts 2024
2.41
Sustainability performance Continued
Environment Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
GHG emissions in tonnes of carbon dioxide equivalent (tCO
2
e)
Emissions by source
1
2024 2023
Base year
2019
Scope 1 Emissions from sources which Intertek
owns or controls directly
Global 57,98 6 61,168 64,709
of which UK 2,318 1,782
Scope 2 Emissions from purchased electricity, heat
and steam for our use (location-based)
Global 115,571 113,270 128,693
of which UK 2,254 2,295
Emissions from purchased electricity, heat
and steam for our use (market-based)
Global 48,634 78,228 133,860
of which UK 314 285
Scope 3 Business travel Global 19,946 18,108 25,849
of which UK 1,046 1,260
Employee commuting Global 27,241 27, 10 8 67,101
of which UK 1,079 1,036
Fuel- and energy-related activities
not included in scope 1 or scope 2
Global 5,408 6,543 7, 669
of which UK 199 201
Absolute tCO
2
e (market-based) Global 159,215 191,155 299,188
1. Our annual environmental reporting cycle ran from 1 October 2023 to 30 September 2024.
Global energy use in megawatt-hours (MWh)
Energy use by source 2024 2023
Standard electricity, heat and steam 113,469 171,241
Renewable electricity 151,700 88,716
Mobile combustion 137,679 139,715
Stationary combustion 113,714 122,020
Total energy use
1
516,562 521,692
Percentage of total energy use from renewable sources 29.4% 17. 0 %
1. UK portion of total energy use was 4% (2023: 4%).
FOR MORE INFORMATION, READ OUR BASIS OF REPORTING ESG DATA
DOCUMENT AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Environmental performance
During 2024, Intertek achieved significant strides in
environmental performance, demonstrating our commitment
to net zero emissions by 2050 and sustainable growth. This
progress was largely driven by our rigorous performance
management programme, which continues to guide
our efforts in reducing our environmental impact while
supporting the broader goals of our sustainability strategy.
Our GHG emissions performance management programme,
which was an integral part of our operations for several years,
serves as a cornerstone for ensuring that every aspect of our
environmental impact is meticulously monitored, assessed and
improved. The programme provides a structured framework
for setting clear environmental objectives, tracking progress
and implementing corrective actions where necessary. This
disciplined approach has proven to be effective in helping
us not only meet but exceed our environmental targets.
Intertek’s reporting complies with the methodologies outlined by
the GHG Protocol ‘Corporate Accounting and Reporting
Standard’, ISO 140064-1 and the UK Government’s
‘Environmental Reporting Guidelines’.
A focus on continuous improvement
A new area of focus for us in 2024 has been the tracking of
water consumption. As part of our ongoing commitment to
providing transparent data, we have implemented systems to
monitor water usage across our operations more closely. This is
in response to increasing global concerns about water scarcity,
and our recognition of the impact that responsible water
management can have on both operational efficiency and
local communities.
Regular audits, data analysis and stakeholder engagement
ensure that we stay on track and remain agile in addressing
any emerging environmental challenges.
Looking ahead, we will continue to build on this success by
implementing new energy-saving initiatives, adopting cleaner
technologies and optimising resources to make measurable
progress towards our long-term sustainability goals.
In action In action
Intertek Group plc
Annual Report & Accounts 2024
2.42
Sustainability performance Continued
Environment Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Expanding our clean energy
generation capabilities
As we work to decrease our global
greenhouse gas emissions in line with
our 2030 reduction targets and 2050
net zero ambition, our use of energy
from renewable sources is increasing.
Not only are we purchasing more energy from renewable
sources, but we are also producing and consuming our own
clean electricity at our sites in several countries.
Following the installation of a solar photovoltaic (‘PV’)
project at our national head office in Bangkok, Thailand has
become the ninth country in which we have a renewable
energy system at one or more sites. It follows Australia,
Bangladesh, Denmark, India, Mexico, Poland, South
Korea, and the UK, where we also have site-specific solar
installations.
The new project highlights the importance of engaging
colleagues around the world to achieve companywide
sustainability goals. Through the commitment of our local
teams and Group sustainability experts, we are continuing
to assess opportunities to install solar PV systems at more
sites in future.
Landmark solar project under
construction in Texas
A new solar project at our San Antonio
Callaghan laboratory site in Texas will
make the USA the tenth country in which
we are producing and consuming our
own electricity.
At this laboratory, we conduct extensive testing of
engines, automotive fluids and components, so we chose
this site for its significant potential impact on energy
efficiency. In addition, a portion of the land adjacent to the
site is a floodplain, making it unsuitable for development.
Comprising a total of 1,638 solar panels, the project
will have a peak generation capacity of 200 MWh and
produce enough energy to power 239 average American
households for an entire year. Due for completion in the
second half of 2025, it represents an opportunity to
significantly reduce our carbon emissions and energy
consumption.
The construction of the solar project follows the
conversion of 14 acres – the entirety of the San Antonio
Callaghan laboratory site – to LED lighting.
In action
2.43
Intertek Group plc
Annual Report & Accounts 2024
Sustainability performance Continued
Environment Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Engaging employees in sustainable
transportation initiatives
With more than 45,000 Total Quality
Assurance experts around the world,
employee commuting inevitably
contributes to our global value chain
emissions.
We are committed to reaching net zero emissions by
2050, so reducing greenhouse gas (‘GHG’) emissions and
air pollution from traditional transportation methods is
an essential part of our Climate Transition Plan. Through
the implementation of clean transportation initiatives,
we engage our colleagues and reduce their commuting
emissions.
In mainland China, our team is achieving this on a large
scale through an electric shuttle bus service operating
across the south and east of the country, where many of
our employees are based. These electric vehicles (‘EVs’)
transport around 1,100 employees, over 10% of our
workforce in the country, to and from the office each day.
Starting with the introduction of a small EV fleet in
Shenzhen in 2017, the initiative has grown in response
to the launch of our companywide emissions reduction
targets and Climate Transition Plan.
In south China, more than 80% of employee commuter
buses are now EVs, most of these in the major cities of
Shenzhen and Guangzhou. To increase this positive impact,
we are working with suppliers to replace the remaining
petrol-powered buses in the region with EVs.
In east China, nearly a third of employee commuter buses – all
in Shanghai – are EVs. For services operating just outside the
city, where location and the availability of charging facilities
create additional challenges, we continue to explore options
for transitioning.
With 30 electric buses in operation across the country, this
initiative is currently saving nearly 1,000 tonnes of carbon
dioxide equivalent emissions per year.
According to the International Council for Clean
Transportation, battery electric vehicles have by far the
lowest lifecycle GHG emissions among passenger cars today.
Through our efforts in China and other countries where we
are investing in EV technologies, we are helping to make our
planet a cleaner and healthier place for everyone.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.44
Sustainability performance Continued
Environment Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Powering our operations with
low-emissions vehicles
As part of our commitment to reducing
emissions and maintaining cutting-edge
resources for our operations, we replaced
18% of the vehicles across our
Sustainability business line in Mexico with
more sustainable technologies during
2024.
The new fleet comprises a combination of hybrid and
fully electric plug-in vehicles. By integrating advanced
technology that combines internal combustion engines
with electric motors, we are estimating savings of nearly
120 tonnes of CO
2
equivalent emissions each year.
This initiative is part of our global Climate Transition Plan,
where the move to upgrade our fleet to low-emissions
vehicles is a key focus. The introduction of these
low-emissions vehicles in Mexico follows a successful
implementation programme in Germany, the Netherlands,
the UK and the USA in 2023.
New cool roof for reduced
energy consumption
We have replaced the roof of our Port San
Antonio laboratory in Texas with an
energy-efficient cool roof to maintain the
building’s required temperature.
This site serves as the primary chemistry laboratory where
we perform extensive physical and chemical testing,
predominantly on automotive fluids. It also houses our
Carnot Emissions Services group, which conducts emissions
certification testing on off-highway engines to meet
various governmental standards in North America, Europe
and China.
The cool roof is expected to reduce the building’s energy
consumption by 200 MWh each year. Another benefit of
the cool roof is that its white coating provides a highly
reflective surface, perfect for bifacial solar panels, which
we plan to integrate in the future as they generate
electricity from both sides.
In action In action
Intertek Group plc
Annual Report & Accounts 2024
2.45
Sustainability performance Continued
Environment Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Creating a healthier, more
sustainable work environment
We are replacing most of the heating,
ventilation, and air conditioning (‘HVAC’)
equipment at our laboratory in Geleen,
Netherlands, with a modern, energy-
efficient and reliable alternative.
The new HVAC system is designed to enhance employee
wellbeing, as well as adhere to relevant legislation on
construction, environmental protection, energy efficiency
and safety. The installation of this advanced technology
will enable us to comply with Intertek's own standards and
Dutch legislation on working conditions.
Due for completion in January 2026, the system will ensure
a healthy and comfortable working environment for our
employees, as well as saving a projected 500 tonnes of CO
2
equivalent emissions per year. With the Geleen laboratory
already saving around 1,700 tonnes of CO
2
equivalent
emissions annually since it switched to renewable power in
January 2022, this initiative marks another big step in our
companywide journey to net zero by 2050.
Reducing the water used for
testing at our Bangladesh
laboratory
In recent years, Intertek Bangladesh has
introduced several significant measures to
reduce the water footprint of its laboratory
in the country’s capital Dhaka. The latest of
these, aimed at recycling water from the
site’s dry-cleaning machine, will save 6.7
million litres from sewage each year.
The appearance of textiles and clothes after dry-cleaning
is one of the common tests we perform for our Softlines
customers. To conduct these tests, we use a dry-cleaning
machine that requires water for cooling. This process
involves absorbing heat through a heat exchanger and then
draining the hot water. In its continued search for more
sustainable practices, our Dhaka team found that the hot
water from the heat exchanger could be reused.
The team utilised the site’s 100,000-litre fire reserve tank,
having conducted a feasibility study and confirming that
there would be no effect on the fire system. It then created
a closed-loop system, connecting the heat exchanger
to the reserve tank and adding an overhead tank which
now supplies the 26 litres of water per minute previously
drained to sewage back to the dry-cleaning machine.
The initiative, which the local team has named AquaCycle,
joins other successful water reduction projects at our
Dhaka laboratory, including a rainwater harvesting system
and the reuse of treated water for gardening.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.46
Sustainability performance Continued
Environment Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Providing a space for local
biodiversity to thrive
The Arizona Mobility Test Center (‘AMTC’)
Powered by Intertek is one of the premier
on- and off-road proving grounds for testing
new vehicles, automotive components and
transportation technology.
However, its grounds are also home to an unexpected gem
– five acres of preserved land dedicated to the protection of
local biodiversity.
The Environmental Monitoring Area (‘EMA’), originally
established by Toyota in 2016, has been managed and
upgraded by Intertek since we became AMTC’s operating
partner in 2021. This desert ecosystem is home to a variety of
plants and animals and provides an important nesting ground
for species including bobcats, foxes, coyotes, badgers and
owls.
During 2024, we made significant enhancements to the EMA,
including replanting vegetation from areas of the AMTC site
that were under construction, building a dedicated carpark
and refreshing the trail system. We also installed a new water-
harvesting roof on a pavilion to collect rainwater for use in
irrigation and other activities.
To ensure the wellbeing of all plants, animals and people
using the area, we work closely with Patrick Wildlife Services,
a leading expert in wildlife conflict resolution, and our own
onsite groundskeepers. This has enabled us to safely maintain
a natural habitat, designed to meet the challenges of desert
life, in which to track and monitor the local wildlife.
In addition to wildlife conservation, the EMA provides the local
school district with a safe, well-maintained area to learn about
sustainability and the desert ecosystem. The updates we
have made – and those planned for the future – will improve
the onsite experience for students and enable more schools
to use the space moving forward.
Intertek Vietnam hosts
environmental event for children
In collaboration with the Intertek Vietnam
Trade Union, we hosted the vibrant ‘We are
EARTH RANGERS 2024’ event, attracting
around 130 enthusiastic young participants.
Held simultaneously across three major cities – Ho Chi
Minh City, Hanoi and Can Tho – in August, the event was
designed to ignite curiosity and raise awareness about
environmental issues.
The day's activities kicked off with a lesson on the impact
of plastic on life and the environment led by one of our
environmental experts. The children engaged in interactive
discussions, learning about the harmful effects of plastic
waste on ecosystems and our planet.
The event also featured art workshops on origami and
handcrafting flowers, offering the children an opportunity to
explore their creativity while learning about environmental
conservation. Jungle-themed discovery games brought the
children closer to nature, and a recycling fashion show contest
inspired them to think more deeply about sustainable practices.
Additionally, Intertek Vietnam used the opportunity to honour
outstanding students from the previous academic year,
celebrating their achievements with well-deserved awards.
Part of our Asia Pacific 'WE CARE: EARTH CARE' initiative,
2024 marked the third consecutive year of the event,
with participation growing and activities becoming more
engaging each time.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.47
Sustainability performance Continued
Environment Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Keeping local ecosystems clean
Braving icy temperatures with wind chills
dipping below freezing, 25 volunteers from
the Transportation Technologies team at
our Intertek San Antonio facility
participated in the 30
th
anniversary of a
renowned community cleanup initiative.
Basura Bash is San Antonio's premier one-day, all-volunteer
event dedicated to cleaning the banks of the Texan city’s
waterways. Our team, able to choose between 25 different
tributaries for cleanup, selected Zarzamora Creek, which
runs adjacent to our office. To ensure the success of their
efforts, our dedicated volunteers began assessing the
creek about a month prior to Basura Bash.
On the day, our volunteers joined 1,500 others in collecting
a range of items, from common plastic shopping bags to
the unexpected bed of a Ford pick-up truck. Paper, plastic,
bottles, tyres and electronic waste were recycled where
possible.
The enthusiasm of our team was a true reflection of our
global commitment to caring for the environment and
preserving our local communities for future generations.
Intertek Metoc supports
community beach clean efforts
In September, Intertek Metoc, our pioneering
energy and water solutions business,
teamed up with Brighton & Hove City Council
and the Marine Conservation Society UK
(‘MCSUK’) to help clean Brighton beach in
the UK.
Brighton is home to a variety of biodiversity, including rare
leeks that grow on the shingle beaches and short-snouted
seahorses in the reefs off the marina. It is also a popular
destination for both locals and visitors. To protect this
biodiversity and maintain a clean city, Brighton & Hove City
Council provides beach cleaning tools as part of its well-
established TidyUp scheme.
Our Intertek Metoc colleagues worked with the council
and MCSUK to organise a beach clean event and, along a
100-metre stretch of the beach, participated in a marine litter
survey to categorise the types of rubbish they found. Their
findings were uploaded to MCSUK's database to feed into
further research and environmental campaigns supporting
long-term sustainability aims.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.48
Sustainability performance Continued
Environment Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Planting to protect the
environment and empower
local communities
Trees and other plants are essential to the
environment, helping to reduce soil erosion,
improve air quality and provide habitats for
many of our planet’s incredible species. But
with the natural world facing increasing
threats from issues such as climate change
and a growing global population, there
is a greater need for positive human
intervention.
As a purpose-led company, Intertek and its teams around
the world are actively involved in planting campaigns that
revitalise the environment as well as fostering community
spirit and highlighting the importance of collective action in
building a greener future.
Distributing saplings and school supplies
In celebration of World Environment Day on 5 June, Intertek
Bangladesh helped organise a tree planting campaign on
the grounds of a high school in Tejgaon, Dhaka. At the event,
Intertek team members planted and distributed 75 saplings
– or young trees – as well as providing stationery supplies to
250 students, many from underprivileged backgrounds.
Protecting biodiversity
Intertek Sri Lanka also celebrated World Environment Day
by organising a planting event. The team planted a variety
of species, selected for their abilities to visually enhance
the area, provide sustenance for local wildlife and improve
the health of the surrounding ecosystem. As a token of
appreciation, each participating colleague received a sapling
of their own.
Planting to inspire sustainability
Intertek Assuris’ Sustainability team in India marked World
Environment Day with Zydus Wellness, a consumer wellness
company and one of our ESG assurance customers, at its site
in Moriaya, Ahmedabad, Gujarat. Alongside the team from
Zydus Wellness, our colleagues planted trees across the
company’s premises in recognition of our shared commitment to
sustainability and ecological stewardship.
Enhancing the local environment
In Abu Dhabi, members of our UAE Industry Services team
participated in a tree planting drive in collaboration with
the Emirates Environmental Group and Abu Dhabi City
Municipality. This effort was part of the ‘For our Emirates
we Plant’ programme, which aims to enhance the local
environment through active community engagement and
corporate responsibility.
Intertek Group plc
Annual Report & Accounts 2024
2.49
Sustainability performance Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Communities
As a global business with more than 1,000
laboratories and offices in over 100 countries,
Intertek is proud to be part of many thriving
communities around the world.
We understand that this comes with a huge opportunity and
responsibility to make a positive and lasting impact on these
communities. This responsibility is grounded in our Values: 'We
create sustainable growth. For all.'
Every year we organise and participate in a range of
impactful initiatives, from providing employment
opportunities and funding training and education
programmes, to volunteering our time, making donations
and supporting the work of charities.
Having worked and built relationships to understand the
diverse needs of each of our local communities, our
countries and business lines define their own agendas to
create a positive and lasting impact. These agendas are
tied to the Group’s priorities and aligned to the UN
Sustainable Development Goals. Our Beyond Net Zero
Steering Committee oversees community investments at
a global level.
In this section we share a small selection of standout
initiatives from the many community activities that our
colleagues took part in around the world during 2024.
We create positive
impacts in the
communities
where we operate
240+
Community projects our employees participated
in focusing on education, giving back to local
communities and preserving our environment
17, 29 9
Hours volunteered to support
community projects
In action
Intertek Group plc
Annual Report & Accounts 2024
2.50
Sustainability performance Continued
Communities Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Advancing reconciliation efforts
across our communities in Australia
In early 2024, Intertek formalised its
commitment to advancing reconciliation
between Indigenous and non-Indigenous
Australians by receiving endorsement for
its Reflect Reconciliation Action Plan
(‘RAP’) from Reconciliation Australia.
Reconciliation is about strengthening relationships between
Aboriginal and Torres Strait Islander peoples and non-
Indigenous peoples for the benefit of all Australians. It aims
to foster mutual understanding, heal historical injustices
and build stronger, more inclusive relationships within and
between communities.
Reconciliation Working Group
Under the guidance of Reconciliation Australia, we are
laying the foundations for our reconciliation pathway with
our RAP. We have established a Reconciliation Working
Group of representatives across our Australian business
lines and locations. The working group meets fortnightly
and works collaboratively to implement our RAP objectives.
With more than 1,400 employees across our network in
Australia, this allows us to build meaningful relationships
with our local communities.
Raising cultural awareness
NAIDOC Week celebrates the rich and diverse cultures
of Aboriginal and Torres Strait Islander peoples, and is
organised by the National Aborigines and Islanders Day
Observance Committee ('NAIDOC'). To mark the occasion, we
hosted customers and members of our extended community
at the Intertek Minerals Global Centre of Excellence in Perth,
where a guest speaker described the intricacies of Noongar
culture from clans across the South West region of Australia.
Building work skills
We are also engaging with WorkSkil Australia, a provider
of the Australian Government workforce services, through
participation in the Yirra Yaakiny Indigenous employment
programme. Each programme invites up to 12 Indigenous
jobseekers to attend a two-week skills programme.
Employers are then invited to meet with the jobseekers and
discuss employment opportunities in their organisation.
During 2024, we engaged in three of these programmes,
with job offers made to 14 participants.
There is a lot to learn from this ancient culture and, through
our Reflect RAP, we are starting our journey to meaningful
conversations to allow for knowledge exchange. Our team
in Australia is committed to building on the uniquely strong
partnerships we have in place and contributing to the five
key dimensions of reconciliation: race relations, equality
and equity, institutional integrity, unity, and historical
acceptance.
We welcome all our customers, partners, suppliers,
employees and broader communities to join us on this
journey towards reconciliation.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.51
Sustainability performance Continued
Communities Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Donating tested toys to
underprivileged children
Following generous donations from our
local and global customers, Intertek Hong
Kong has worked with two charities to
provide gifts to underprivileged children
across the region.
The team donated a range of board games to Box of Hope,
a non-profit which aims to spread joy to vulnerable children
and educate young people about poverty and how they
can make a positive impact through charitable giving. What
began as a small family project has grown into a significant
initiative and, since its establishment in 2008, the charity
has distributed over 350,000 gift boxes to children in need.
Having also collected safe, tested toys from our customers
around the world, we made a further donation to the
Celebrity Charity Fund Association, which promotes
community welfare development and supports
underfunded government charitable organisations.
Driving inclusion for China’s
left-behind children
Across China, millions of children are left
behind in rural villages while their parents
migrate to find work, study or seek a
better quality of life.
These 'left-behind children', often because of poverty, face
a unique set of challenges, including consistent access to
education and other resources throughout their formative
and teenage years.
In September, Intertek Greater China joined forces with
Shenzhen Futian District Social Welfare and Social Donation
Center to provide stationery, books and sporting goods to
more than 300 left-behind children in Guangdong province.
Many colleagues participated in this initiative by donating,
packaging and sending the items to children in Gongbai
Town.
By contributing to initiatives which aim to ensure that
these children are included in wider society, we not only
support their pressing needs, but also help to build more
harmonious and stable communities for everyone.
Supporting flood victims
in Thailand
Communities in northern Thailand were
severely affected by devastating floods
following Typhoon Yagi, a tropical cyclone
which impacted southeast Asia and south
China in September 2024.
Across northern Thailand, particularly in the Chiang Rai and
Chiang Mai provinces, thousands of people were stranded
as heavy rains flooded homes, agricultural land and
infrastructure.
In response, Intertek Thailand delivered essential goods,
food and clothing to those impacted. The donations were
made possible through voluntary contributions from our
employees, with many also helping to categorise and pack
the items for distribution. In addition to local efforts, our
APAC regional management team also supported the
initiative. All donated supplies were transported to the
impacted areas with the support of non-governmental
organisation The Mirror Foundation, ensuring that aid
reached those most in need.
This initiative highlights our commitment to helping
communities dealing with the fallout of natural disasters,
providing both short-term relief and long-term hope for
recovery.
In actionIn action
Intertek Group plc
Annual Report & Accounts 2024
2.52
Sustainability performance Continued
Communities Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Donating essential medical
supplies to a community hospital
As part of its commitment to building
healthier and stronger communities, Intertek
Bangladesh has donated essential medical
equipment to Ahsania Mission Cancer and
General Hospital in Mirpur, Dhaka.
The team first connected with Ahsania Mission Cancer and
General Hospital during a programme of engagement with
several community-based clinics and hospitals across Dhaka,
with the aim of identifying opportunities to provide support.
New team makes big
community impact in Togo
Having only been established during 2023,
our laboratory team in Lomé – the capital
of Togo, West Africa – has already started
making a positive impact on its surrounding
communities through effective
collaboration with local authorities.
Joining forces with colleagues from our long standing
local operations team, they visited one of Lomé’s most
underprivileged communities, donating food parcels and
other essential items to help improve the quality of life of
elderly people. To ensure that help was received by those
who needed it most, the teams worked with the local town
hall to select the recipients of the donations.
During the same week, our laboratory and operations team
members worked with Togo’s Ministry of the Environment
to plant 300 tree seedlings and boost biodiversity at a
primary school in Agnave. Water and forestry officers
suggested the location to address the lack of trees caused
by widespread deforestation in the surrounding area.
These colleagues also helped to educate local students on
how they, as the next generation of community leaders,
can contribute to preserving the natural world, empowering
them to embrace environmental stewardship as part of a
sustainable future.
The hospital expressed an urgent need for oxygen cylinders
and concentrators, having struggled with an insufficient
supply. To help address this shortage, we donated eight
oxygen cylinders with oxygen flowmeters and one oxygen
concentrator. This equipment, which was originally stocked
during the Covid-19 pandemic, is now being used in the
hospital’s oncology department, which provides specialised
care to patients undergoing treatment for cancer.
Ahsania Mission Cancer and General Hospital treated nearly
35,000 people last year, playing an especially important role in
the fight against cancer in Bangladesh. With these additional
resources, the hospital can serve its patients more effectively,
ensuring that they receive crucial care without delays caused
by equipment shortages.
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.53
Sustainability performance Continued
Communities Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Providing quality STEM education
to thousands of young people
With an increasing global demand for
science, technology, engineering and
mathematics (‘STEM’) professionals, it has
become essential to give young people
access to these subjects at an early age.
In India, several government initiatives are focused
on promoting STEM in schools, including the National
Education Policy 2020.
Taking advantage of our science-based expertise,
Intertek India has partnered with several government
schools in rural Gurugram and Mumbai on its ‘Design for
Good – STEM Education’ project. This initiative is giving
more than 40,000 young people, mostly first-generation
learners from low-income families, access to quality STEM
education, including a practical understanding of scientific
concepts and critical thinking skills, at no cost.
In addition to the focus on students, the initiative has
involved upgrading infrastructure and the building of
STEM labs, as well as the training and capacity building
of teachers to promote innovative and engaging methods
of instruction.
During the first phase of the project, which completed
in 2024, more than 20,000 students benefitted.
Improving livelihoods through
agricultural sustainability training
Intertek India has been working closely with
250 marginalised farmers – mostly women –
in the village of Narspur, Hyderabad, on a
transformative initiative designed to build
sustainable farming capabilities and support
the development of the local economy.
‘Planted with Purpose’, launched in 2023, helps to improve
the quality of life for those in rural communities and their
surrounding areas by focusing on skill enhancement and
promoting entrepreneurship. This includes training on
medicinal mushroom cultivation, organic farming, soil testing,
livestock management and micro-enterprise creation, as well
as helping the farmers to establish links to market.
This is an especially important initiative in Narspur, where
women have often struggled to maintain stable livelihoods
due to limited access to education and employment
opportunities. Most families have no land, and many men
are seasonal migrant workers. ‘Planted with Purpose’
has therefore empowered its beneficiaries to start small
businesses and generate much-needed income.
In the first year of the project, the farmers cultivated 156kg
of medicinal mushrooms. Encouraged by this success, they are
looking at broadening their mushroom cultivation to include
various seasonal varieties.
To enhance the impact of these efforts, Intertek helped
establish a farmer producer organisation called Organicoasis.
This project is also helping with the creation of sustainable
rural livelihoods and the socio-economic empowerment
of local people, again mostly women from marginalised
communities.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.54
Sustainability performance Continued
Communities Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Equipping students
with the tools for success
When Ghana’s biggest hydroelectric dam
overflowed in 2023, Volta Region was
flooded, and thousands of people lost
their homes and livelihoods.
With the region already facing significant economic
challenges, including poverty and lack of access to
education, the Intertek Ghana team took action to help
alleviate additional pressure caused by the flooding.
After reaching out to local government representatives
to learn where we could make the biggest impact, our
team travelled from Accra to visit three schools in the
towns of Awusakpe, Adutor and Adidome. Our colleagues
supplied essential items including desks, tables, chairs
and textbooks, as well as donating stationery and
exercise books to more than 600 children. The team also
repaired leaking roofs, helping to create a safer and more
comfortable environment for effective learning.
It was a day filled with uplifting moments as our team
encouraged the students to dream big and work hard
towards their goals. In regions like Volta, where many
communities have high student dropout rates, these
initiatives can be truly lifechanging.
Offering educational experiences
to young people
Every year in Germany, Zukunftstag –
or Future Day – takes place across the
country to offer young people a unique
insight into the working world.
As part of our commitment to supporting future
generations, we marked the day by inviting a group
of 14- and 15-year-olds to our Food Services laboratory
in Bremen.
The Intertek Food Services GmbH laboratory in Bremen
makes an essential contribution to the global food and
agriculture industries, as well as end consumers, by
ensuring the safety, quality and sustainability of both
production and produce. On Future Day, our expert team
gave our young guests an interactive tour, teaching them
about our important work and how it impacts the world.
The visit ended with the young people conducting their
own experiment.
The day was rewarding for everyone involved and provided
a great opportunity to showcase potential careers in the
testing, inspection and certification industry to the next
generation of local talent. We look forward to welcoming
another group of young minds in 2025.
Tackling food waste
in Switzerland
As a force for good in the world, we
encourage our employees to take part
in volunteering that matters to them
and supports the pressing needs of
their local communities.
While our colleagues can arrange their own volunteering
days, we also invite them to join corporate initiatives that
align to our Purpose and Values.
In Switzerland, our Basel team volunteered with
Thanksgiver Schweiz, a charity which provides food
collected by supermarkets to people at risk of poverty.
Our colleagues spent a day setting up a food bank in
Muttenz and helped to distribute more than 2,500kg of
food items. Around 1,200 people use Thanksgiver’s food
banks every week, and the charity saves at least 400
tonnes of food from being wasted each year.
Around the world, over 13% of all food produced is
lost between harvest and retail, with further waste in
households and the service industry. This waste leaves
hundreds of millions without adequate nutrition, as well
as significantly contributing to global greenhouse gas
emissions. By supporting organisations like Thanksgiver,
we help those in need while also protecting our planet.
In action
In action
In action
Intertek Group plc
Annual Report & Accounts 2024
2.55
Sustainability performance Continued
Communities Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Repurposing crisp packets
into sleeping bags for
homeless people
As one of its sustainability and
community support projects for 2024,
our Chemicals & Pharmaceuticals (C&P)
team in Wilton, Teesside, UK, is supporting
an innovative initiative which sees empty
crisp packets turned into sleeping bags
for homeless people.
Crisp packets are waterproof and have insulating
properties, and by fusing 150 together you can create a
thermal sleeping bag capable of keeping a homeless person
dry and warm at night. Working with other businesses in
the area, our colleagues in Wilton have been collecting crisp
packets for Nite Light CIC, a charity which provides aid and
support to the most vulnerable people in Teesside. Several
members of the team have also been using their annual
volunteering days to help make the sleeping bags, which
are distributed at local free markets.
North-east England is one of the regions worst affected
by poverty in the UK, and the Redcar and Cleveland
borough, where our Wilton laboratory is located, is home
to a number of disadvantaged communities. By supporting
this important initiative, our team is enabling Nite Light CIC
to make an increasingly positive difference to the lives of
those in most need.
Joining national flood
relief efforts in Brazil
When heavy rains during April and May
2024 caused widespread flooding across
the Brazilian state of Rio Grande do Sul, the
impacts were devastating. Lives were lost,
hundreds of towns were submerged and
over 500,000 people were forced out of
their homes, which also threatened the
stability of the local economy.
As the country rallied in solidarity with those affected, our
branches in Osasco (Controle Analítico) and Barueri joined
forces with the national post office to offer essential
support. Our colleagues at both locations banded together
to collect non-perishable food, water, and clothing, which
the national post office delivered to those in need via boat.
In addition, our teams in Brazil set up a separate internal
taskforce to raise money for colleagues who had been
directly impacted by the floods.
At a time when many people had lost everything, initiatives
like these provided those affected with not just hope, but a
means of survival.
Collecting bottle caps
to fund cancer care
In Mexico, our colleagues have combined
social impact and environmental
responsibility by joining an innovative
initiative through which bottle caps
are collected to support young people
with cancer.
Banco de Tapitas is a non-profit organisation which
collects and recycles bottle caps to raise money for medical
treatment, medication and transport for cancer patients
under the age of 21. Given the initiative’s strong alignment
with our goals for making a positive impact on our local
communities and the environment, our Human Resources
team reached out to establish a partnership.
Despite only joining the initiative in August, the teams
across all 18 of our facilities in Mexico made a significant
effort to collect 206kg of bottle caps by the end of
November. Following the first delivery of bottle caps,
the collection was re-opened and continues as one
of our ongoing initiatives.
Intertek Group plc
Annual Report & Accounts 2024
2.56
Sustainability performance Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Responsible Business
To deliver long-term sustainable success,
we strive for the highest standards of
corporate governance, conduct and integrity.
Through our entrepreneurial culture and Values, we strive
to make the world better, safer and more sustainable.
Our responsible business practices – protecting human
rights, 'Doing Business the Right Way', ensuring data
privacy and good information governance, and operating
sustainable procurement practices – underpin our
focus areas and the commitments we have made.
Human rights
Respecting human rights is core to everything
we do and is supported through our Labour and
Human Rights policy, Code of Ethics and Sustainable
Procurement policy. Intertek’s policies and codes fully
respect the International Bill of Human Rights, the
International Labour Organization’s Declaration on
Fundamental Principles and Rights at Work, and the
UNICEF Children’s Rights and Business Principles.
We are committed to ensuring that our employees are
subject to fair working practices and are treated with
respect. We continually review our approach in this area
to reflect any legal developments, emerging issues and
changing societal expectations. Following our 2024
review, we revised our companywide Labour and Human
Rights policy and integrated it with our Modern Slavery
policy to simplify and clarify our approach in this area.
READ OUR LABOUR AND HUMAN RIGHTS POLICY AT
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Some of the ways in which we work to promote
human rights within our business include:
• Working conditions: We comply with all applicable
labour and human rights laws and industry standards
on working hours, paid annual vacation, rest periods
and statutory minimum wages.
• Indigenous rights: We respect the rights of Indigenous
peoples. Our goal is to support our leaders, our people
and our communities to develop respectful relationships
and create meaningful opportunities for dialogue with
Indigenous people, where appropriate.
• Forced labour: We do not tolerate any form of forced
labour, child labour, slavery, human trafficking, physical
punishment or other abuse within our business or our
supply chain.
• Our Modern Slavery Act Statement outlines the steps
we are taking internally, in our supply chain and through
partnerships and advocacy to avert modern slavery
and human trafficking. The statement is available
on our website.
• Child labour: We do not employ people below the age of
15 or below the local minimum employment/mandatory
school age – whichever is higher and relevant to the
particular country. Where we provide apprenticeships for
young people, we put special protections in place and
ensure they are not exposed to hazardous work.
• Collective bargaining: We respect the rights of our
employees to form and join trade unions and take part
in collective bargaining where this is as per local law.
We also take care that employee representatives do not
suffer discrimination and that they have open access
to members in the workplace. We strictly adhere to tariff
structures and arrangements negotiated with trade
unions, and we also inform and consult employees on
relevant business activities. For example, we respect
statutory minimum notice periods and give reasonable
notice of any significant operational changes in line
with local practices and labour markets. Our affiliates’
communication and consultation processes are tailored
to local needs.
We are
uncompromising
on quality and
compliance
In action
Intertek Group plc
Annual Report & Accounts 2024
2.57
Sustainability performance Continued
Responsible Business Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
'Doing Business the Right Way'
We continue to develop a best practice compliance
programme to ensure Intertek operates with the highest
standards of compliance and ethical business practices,
including through our supply chain partners.
We are committed to maintaining the total confidence of our
stakeholders. One of the Group’s primary business objectives is
to help our customers meet quality standards for virtually any
market in the world and protect them against risk by ensuring
compliance with local, national and international laws.
The accuracy and validity of the reports and certificates that we
provide are, therefore, important factors which contribute to our
success and integral to this work is ‘Doing Business the Right
Way’, our internal risk, control, compliance and quality programme.
Our compliance programme is designed to:
• give our people the processes, tools and training they
need to ensure a safe and inclusive environment;
• support the delivery of our services and the performance of
our contracts with integrity and in line with our commitment
to Total Quality;
• obtain the commitment of every colleague to the highest
standards of professional conduct; and
• deliver sustainable growth by managing our risks and
doing the right thing for the longer term.
Public policy
We interact with trade associations and governmental
authorities to provide input into industry and regulatory
improvements in product safety, quality and risk assurance.
In our interactions with governments, governmental authorities
and regulators we ensure that we comply fully with all laws
and regulations.
Ethics, integrity and professional conduct
Our commitment to the highest standards of integrity and
professional ethics is embedded in the Group’s culture through
the principles set out in our Code of Ethics ('Code'). The Code
sets a clear expectation that people working for our business
must act at all times with integrity and in an open, honest,
ethical and socially responsible manner.
The Code also covers anti-bribery, anti-competitive practices,
and labour and human rights.
The Board, as a whole, oversees the implementation of human
rights commitments and supports human rights as defined in
the Code.
We have a culture in which all issues relevant to our professional
conduct and the Code can be raised and discussed openly
without recrimination. We operate a strict zero-tolerance policy
regarding any breach of our Code and any behaviour that fails
to meet our expected standards.
To support the implementation of our Code in our day-to-day
business activities, all people working for, or on behalf of, Intertek
are required to sign a declaration of compliance with the Code.
This confirms their acceptance of the high standards expected
of them in all business dealings.
Intertek employees and people acting on Intertek’s behalf
are responsible for applying the Code in their own job role,
their part of the business and their location.
Every year, to support continued understanding in this area,
all eligible employees are required to complete our Code of Ethics
training course. This training covers such subjects as integrity
issues, including human rights, bribery, corruption, non-
discrimination and employee relations, and other important
subjects relating to ‘Doing Business the Right Way’, such as data
security and operational controls. The Code also contains clear
guidance on the grievance mechanisms and whistleblowing
procedures that we have in place to report known or suspected
wrongdoing or non-compliance. Once completed, all employees
are required to sign a document confirming their understanding
that any breaches of the Code will result in disciplinary action
that may include summary dismissal of the employee concerned.
100.0%
Eligible employees (rounded to the nearest 0.1%)
who completed our Code of Ethics training in 2024
New legal, risk and compliance
tool for employees
To provide colleagues with additional
support in 'Doing Business the Right Way'
and to ensure consistently high standards
across the company, our Legal, Risk &
Compliance team launched an online
‘Ask A Question’ tool in 2024.
This powerful new tool enables employees to categorise
their questions by region and nature and to send these
queries directly to the relevant team member in just a few
clicks. Through increased efficiency and accessibility, the
tool has transformed the way our employees gain essential
knowledge and receive guidance, helping us to continue
to effectively safeguard Intertek and all our stakeholders.
In action
Intertek Group plc
Annual Report & Accounts 2024
2.58
Sustainability performance Continued
Responsible Business Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Whistleblowing hotline
To empower our people and stakeholders to voice any concerns
about breaches of the Code or any of our other policies (including
our Labour and Human Rights policy), we have a well-publicised
hotline which can be used by all employees, contractors and
others representing Intertek, or by third parties such as our
customers or people who are affected by our operations.
This whistleblowing hotline is run by an independent, external
provider. It is multi-language and is accessible by phone and
by email 24 hours a day.
Those who are aware of any non-compliances with our
policies and procedures are encouraged to report that conduct,
non-compliance, or integrity or ethical concern using the
hotline. Information posters are present in all of our sites.
Once a report is made to the hotline, it is triaged through
the system and will be followed up by the relevant function,
depending upon the nature of the allegation of non-compliance
made. Our Group Compliance function, which is independent of our
operational businesses and reports directly to our Group General
Counsel, investigates, as appropriate, all reports received relating
to integrity issues and other compliance matters. Provided there
is no conflict of interest, all reports of integrity and compliance
matters are also notified to our Group Ethics & Risk Committees,
which consist of our CEO, CFO, EVP – Human Resources and Group
General Counsel. This reporting line promotes effective oversight
of the resolution of individual issues, and also of any systemic or
process improvements that can be made to address them.
During 2024, there were 127 reports of non-compliance
with the Code made to our hotline. Of those reports, 29 were
substantiated or partially substantiated and required remedial
action. Of those substantiated claims:
• there were no substantiated grievances relating to human
rights, labour practices or societal impact breaches;
• there were no environmental incidents;
• there were no anti-trust incidents;
• there were no violations of the rights of Indigenous people; and
• there were no cases of discrimination.
Four confirmed incidents were identified through our hotline
where employees were disciplined or dismissed due to
non-compliance with our anti-corruption policy.
Sustainable procurement
We are deeply committed to operating with integrity by ‘Doing
Business the Right Way’ and to pursuing our corporate social
responsibility activities through living our strong Values.
Our suppliers have an important part to play in contributing
to our sustainability. To ensure that both our employees and our
suppliers are fully aligned to our ethical and sustainable supply
chain approach, we keep our Sustainable Procurement policy and
Supplier Code of Conduct under ongoing review and update them
as appropriate.
READ OUR SUSTAINABLE PROCUREMENT POLICY
AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
Our sourcing approach
We work with thousands of suppliers around the world. We
expect all suppliers to meet the same internationally recognised
human rights, environmental and quality standards that we
expect of our own businesses. These include meeting local
legislative requirements but also all applicable international
requirements for workers’ welfare and conditions of
employment, such as those set by the International Labour
Organization (‘ILO’) and the Ethical Trading Initiative.
Large global suppliers offer stability in terms of financial
resilience, delivery capacity and pricing structures, potentially
coupled with better pricing and improved margins. However,
our supply chain is quite diverse and geographically dispersed,
and our procurement teams need to find regional and local
suppliers. Through structured sourcing processes, we select the
best option for us while continuing to support local suppliers who
meet our business and sustainability requirements. Selecting
regional and local suppliers, where appropriate, demonstrates our
commitment to supporting the communities in which we operate.
Evaluation of suppliers
Our corporate procedures govern our purchasing and evaluation
of vendors and sub-contractors supplying Intertek with goods
and services.
Approval and evaluation may be based on quality, health
and safety, environmental performance and delivery factors.
Performance is also measured, recorded and benchmarked
against established objectives as part of our disciplined
performance management principles.
In our procurement choices we are working to achieve our
SBTi-validated near-term target of ensuring that 70% of our
key supply chain partners have set their own science-based
climate targets by 2027.
New risk committee structure
In a dynamic and constantly changing
world, our products and services are
always evolving to meet the needs of
our stakeholders. This means that we
are continuously reviewing and refreshing
our approach to 'Doing Business the Right
Way' – our internal risk, control, compliance
and quality programme.
Through our integrated approach to risk management,
we have regional, divisional and functional committees
reporting to a Group Risk Committee, which manages,
assesses and promotes the continuous improvement of
our risk management, controls and assurance systems.
Having adjusted our business model to report revenue,
operating profit and margin across five divisions in 2023,
we aligned our risk committee governance structure to
support risk management in these divisions during 2024.
As we have welcomed many new colleagues since the
launch of 'Doing Business the Right Way' in 2017, we also
took the opportunity to refresh and set expectations for
all risk committee members around the world. This included
training on our processes and further reviews of global
risk committee membership to ensure the right balance
of functional, divisional, location and skill representation.
In action
2.59
Intertek Group plc
Annual Report & Accounts 2024
Sustainability performance Continued
Responsible Business Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Enterprise security
At Intertek we have adopted a risk-based cyber security
framework, based on international best practice, the US National
Institute of Standards and Technology ('NIST') Cybersecurity
Framework. Our framework guides clear policies, guidelines and
supporting controls. We continue to innovate, enhancing service
delivery and strengthening internal and external customer
relationships to protect customer, employee and Intertek data.
There is regular reporting on progress of the security programmes
to governance and oversight committees by our dedicated
President, Information Security, who leads a global team.
We use a risk-based security framework model:
Our
risk-based
security
framework
Identify Protect
Data
protection
Detect
Recover Respond
Global data privacy training
As part of our commitment to security and
compliance, relevant employees across the
company were selected to complete a new
digital mandatory data protection training.
The training, assigned through our global learning
management system Lucie, was allocated to management-
level employees who potentially process personal data
in their roles. It was designed to enhance understanding
of the relevant data protection principles and to support
individual compliance with the regulations, which are critical
for protecting the personal and sensitive information of our
customers, colleagues and the business.
By ensuring that our employees receive this essential
training, we protect our data in line with our own high
standards for security and privacy, as well as meeting
the legal requirements on data protection.
Sustainability Disclosure Index
The 2024 Intertek Sustainability Disclosure Index
is complementary to our published reports and sets
out how our latest disclosures map to our own Total
Sustainability Assurance standards, the Global
Reporting Initiative (‘GRI’) and applicable Sustainability
Accounting Standards Board (‘SASB’) requirements.
INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY
MORE INFORMATION ON HOW SUSTAINABILITY
IS GOVERNED AT INTERTEK CAN BE FOUND WITHIN
OUR DIRECTORS’ REPORT ON PAGE 2.60
Detect
We define the appropriate activities for the timely discovery
of the occurrence of security events. We monitor continuously
and verify the effectiveness of protective measures.
Respond
We ensure response planning processes are executed before,
during and after an incident, so that we take appropriate
action regarding situations and contain their impact. We also
implement improvements, by incorporating lessons learned
from current and previous detection/response activities.
Recover
We undertake appropriate activities to maintain plans for resilience
and to restore any capabilities or services that were impaired due
to an incident. Our recovery function ensures timely recovery
to normal operations to reduce the impact from an incident.
Data protection
We believe that all our people and our customers have the
right to privacy. To uphold this, we have implemented practices
that align with the standards required to meet applicable data
protection regulations across our markets and operations
where personal data is processed. We have established policies
mapped to the General Data Protection Regulation ('GDPR') to
ensure that personal data is handled in accordance with data
protection principles. Local adaptations of these practices
are made where legally required or deemed appropriate.
Identify
We develop a clear organisational understanding
of risks to our systems, people and data, enabling
us to prioritise efforts that are consistent with our
risk management strategy and business needs.
Protect
We put in place appropriate safeguards to ensure
delivery of critical services, including access control,
staff awareness and training, and data security.
These safeguards support our ability to limit
or contain the impact of potential events.
Our
risk-based
security
framework
Identify Protect
Data
protection
Detect
Recover Respond
Govern
Intertek Group plc
Annual Report & Accounts 2024
2.60
3: Financial Report2: Sustainability Report1: Strategic Report
Governance at a glance
Governance structure
Chair's introduction
Board of Directors
Group Executive Committee
Board leadership and company purpose
Composition, succession and evaluation
Audit, risk and internal control
Committee reports
Other Disclosures
Statement of Directors Responsibilities
Nomination Committee Report
Audit Committee Report
Remuneration Committee Report
Compliance with the UK Corporate
Governance Code
The Directors present their report and the audited consolidated
financial statements for the year ended 31 December 2024 in
Report 2 and Report 3.
Directors' report
Board promise
We recognise our responsibility to all
stakeholders and will strive to ask the
questions that matter and make the
right decisions.
We will be forward looking and use our
diverse perspectives and insights to promote
Intertek’s Purpose of bringing quality, safety
and sustainability to life.
We will inspire our people to take client
relationships and our performance to
greater heights and to create sustainable
growth for all.
Andrew Martin
Chair of the Board and
Nomination Committee Chair
Graham Allan
Senior Independent Director and
Remuneration Committee Chair
Jean-Michel Valette
Non-Executive Director and
Audit Committee Chair
Governance highlights
Returns to shareholders
Dividend
156.5p Ordinary dividend per share for the financial
year ended 31 December 2024 including interim and
final dividend.
Share buyback
Initial £350 million share buyback to be completed
during 2025.
Progressed Board succession
Approved the appointment of a new Non-Executive
Director.
Acquisition
Focused on investing in growth through targeted
acquisition activity that will benefit customers
and shareholders.
2.62
2.64
2.66
2.69
2.70
2.78
2.81
2.127
2.131
2.82
2.86
2.94
2.61
2.61
Intertek Group plc
Annual Report & Accounts 2024
2.61
3: Financial Report1: Strategic Report 2: Sustainability Report
Our Non-Executive Directors have a
diverse skillset and background as shown
in the table above. This expertise
enables the Board to constructively
challenge management and encourages
diversity of thought in the decision
making process. For their full biographies
please see our website.
Compliance with the 2018
UK Corporate Governance
Code ('Code')
Governance at a glance
The Board believes in good corporate
governance through effective oversight,
including how the Company assures
stakeholders on performance delivery
and reports on its progress.
THE CODE IS AVAILABLE AT WWW.FRC.ORG.UK
The Board confirms that during 2024, the Company has
consistently applied all the principles and has complied
with all the provisions of the Code apart from Provision 38.
Provision 38 stipulates that the pension contribution rates
for Executive Directors should be aligned with that of the
workforce. The pension contribution for all new Executive
Directors appointed to the Board since 2018 has been aligned
with that of the workforce. For the CEO, from 1 June 2025,
the pension contribution will be aligned with the UK workforce.
More information on the engagement with shareholders on this
issue is outlined in the letter from the Chair of the Remuneration
Committee in the 2021 Annual Report & Accounts.
A more detailed explanation of our compliance with the Code can
also be found on our website at intertek.com. The information
required to be disclosed in accordance with DTR 7.2.6 can be
found in the Other Disclosures section on pages 2.127-2.130.
The Board remains dedicated to clear and honest reporting.
It has reviewed and is preparing for the changes to be introduced
by the 2024 UK Corporate Governance Code, which will begin
applying to Intertek from 1 January 2025. Where the Board
has taken steps to implement any provisions, this is indicated
throughout the report.
Board skills and experience
Board composition and diversity as of 31 December 2024
Male 64%
Female 36%
Board balance
by gender
Executive Directors 18%
Independent Non-Executive Directors 82%
Board balance by
independence
White 73%
Asian 27%
Ethnicity
0–3 years 37%
3–6 years 18%
6–9 years 36%
9+ years 9%
Board tenure
Geographical
heritage
Europe
46%
North America
18%
Australasia
9%
South-East Asia
27%
Consulting
Finance
Customer service/Care
Sustainability
Previous/Current CEO
Risk management
International
UK Listed Company Director
People
Digital/Technology
UK Non-Executive Director experience
INTERTEK.COM/ABOUT/
EXECUTIVE-COMMITTEE
Intertek Group plc
Annual Report & Accounts 2024
2.62
3: Financial Report2: Sustainability Report1: Strategic Report
Governance structure
Our Board of Directors
See pages 2.66-2.68 for their biographies
Audit Committee
See page 2.86 for the Committee Report
Remuneration Committee
See page 2.94 for the Committee Report
Nomination Committee
See page 2.82 for the Committee Report
Sustainability GovernanceRisk Governance
Supporting Committees
The Group Executive Committee
operates a number of supporting
committees which provide oversight
on key business activities and risks.
Net Zero Steering
Committee
Regional management,
Net Zero Champions
and finance
Beyond Net Zero
Steering Committee
Regional Sustainability
Committees and Champions,
Regional HR and Marketing
Ethics and Compliance
Committee
Disclosure Committee
Group Investment
Committee
Group Risk
Committee
Regional, divisional and
functional risk committees
Business Lines
The Chief Executive Officer and the Group Executive Committee
See page 2.69 for the Group Executive Committee
The Board delegates specific
responsibilities, subject to certain
financial limits governed by the Core
Mandatory Controls, to management.
Intertek Group plc
Annual Report & Accounts 2024
2.63
Governance structure Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
The Board has the ultimate and collective responsibility to promote
the long-term sustainable success of the Company, ensuring that
value is created for shareholders and contributes to wider society
through its effective, entrepreneurial and innovative leadership. It
ensures that the necessary resources are in place for the Company
to meet its objectives and measure performance against them.
Our Board consistently acts with integrity, leads by example and
promotes the culture to ensure its dissemination throughout the
Company. It sets the strategic aims of the Company, its Purpose,
Customer Promise, Vision and Values in alignment with our culture
as outlined on pages 1.11 and 1.18-1.29 in Report 1.
The Board Committees are delegated a specific area of focus
by the Board.
Matters reserved for the Board and its Committees’
Terms of Reference can be found on our website at:
intertek.com/about/compliance-governance.
The Group Executive Committee establishes and
oversees the committees needed at Group and
business line level to effectively implement the
strategy and achieve its delivery. The responsibilities
of each committee are delineated through clear and
approved terms of reference.
Monitoring of delegated matters is governed by our
Core Mandatory Controls, an annually reviewed and
refreshed framework that allows the delivery of
strategic aims and financial performance whilst
enabling risk to be assessed and managed.
On executive matters, the CEO and CFO are
responsible for providing updates at each
Board meeting.
Ensures the Board and its Committees have the correct balance
of skills, experience and knowledge and that adequate and
orderly succession plans are in place.
Oversees the Group’s financial reporting, ensures the
effectiveness and independence of the external and internal
audit functions and reviews the Group’s financial internal
controls and risk management systems.
Establishes the Group’s Remuneration Policy and ensures that
it supports the strategy promoting the long-term sustainable
success of the Group and that there is a clear link between
performance, remuneration and alignment with our Purpose,
Vision, Values and strategy.
The CEO is responsible for:
• Proposing and agreeing the Group strategy with the Board.
• Leading the day-to-day operations of the Group in line with
the agreed strategy and commercial objectives.
• Promoting and conducting the affairs of the Company with
the highest standards of ethics, integrity, sustainability and
corporate governance.
The Group Executive Committee is responsible for:
• Supporting the CEO in the delivery of our AAA differentiated
growth strategy.
• Providing input into strategic and operational decisions aligned
to business priorities, and supporting the delivery of actions.
• Supporting the CEO in implementing decisions made by the Board.
Nomination
Committee
Audit
Committee
Remuneration
Committee
Chief
Executive
Officer
Group
Executive
Committee
Supporting
Committees
Our
Board of
Directors
Intertek Group plc
Annual Report & Accounts 2024
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3: Financial Report2: Sustainability Report1: Strategic Report
Building a consistent
track record of
achievement for
all stakeholders.
Chair's introduction
We have increased our targeted dividend pay-out ratio to circa
65% of earnings, reflecting our financial position and the Board’s
confidence in our long-term growth prospects. In line with this
new dividend policy, the Board is proposing a final dividend of
102.6p, bringing the total pay-out to 156.5p for the full year.
With year-end net financial debt of £500m and leverage below
our target level and a highly cash generative business model,
in accordance with our capital allocation policy, we are pleased
to announce an initial £350m share buyback programme to be
completed during 2025. We will retain capacity for organic capex
and value accretive M&A and while leverage remains below the
bottom of our target range, we expect to announce annual
share buybacks.
Strategy and People
Our AAA differentiated growth strategy introduced in 2023
is progressing well, and the team's execution has been strong.
We believe this long-term strategy, extending out to 2030,
will unlock significant growth opportunities for our ATIC
solutions business.
Our people are our most important asset. It is their hard work,
expertise, and collaboration that are the key to our success.
We are keen to attract, retain, and develop the best talent
for the future. The Board fully supports investment in their
development and wellbeing to foster a high-performing,
purpose-driven, and inclusive culture.
We are committed to further diversity in our workforce, firmly
believing that different ways of thinking, knowledge and
backgrounds are key drivers of innovation and performance.
Investment and Innovation
The ongoing commitment to innovation ensures that we
remain at the forefront of our industry. Following CarbonClear
and CarbonZero in 2023, we launched Methane Clear in 2024
to monitor methane emissions; we agreed strategic partnerships
with Trace for Good to develop a traceability and sustainability
SaaS platform for complex supply chains, and with CrystecPharma
to develop a ‘fast to clinic’ platform to support pharmaceutical
client development of dry powder inhaler products. These are
just a few examples of the many excellent innovations across
the business.
On behalf of the Board,
I would like to thank our
colleagues across the
world for their continued
commitment to Total
Quality Assurance and to
‘Bringing quality, safety
and sustainability to life’."
Andrew Martin
Chair
Dear shareholder
I am pleased to report another year of progress and growth
that reflects our commitment to Total Quality Assurance. In
an uncertain and unpredictable world, we continue to build a
consistent track record of achievement for our stakeholders –
providing a rewarding environment for our people, delivering
outstanding client service, and creating value for shareholders.
Financial performance
This year we have concentrated on further strengthening our
operational and financial performance and are delighted with
the results. We achieved strong organic growth for the second
consecutive year, showcasing the resilience and adaptability
of our business model. We have benefitted from innovation
across the entire business, as well as the cumulative impact of
numerous projects driving operational leverage in the business.
Supported by continued high retention, a targeted restructuring
programme, and broad-based performance across all our
business lines, I am delighted that margins progressed to
effectively match the historic peak of 17.5% achieved in 2019.
Our focus on cash delivered an excellent outcome, and our
financial position remains robust. We are committed to our
clearly defined and disciplined approach to capital allocation.
The Board supports investment in the business, and we will
continue to fund innovation initiatives and value accretive M&A,
while recognising the importance of Return on Invested Capital,
which improved to 22.4% for the year.
Intertek Group plc
Annual Report & Accounts 2024
2.65
Chair's introduction Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
We have also been investing in new facilities to expand Caleb
Brett’s services, as well as for our Electrical and Chemicals &
Pharma businesses. Staying at the forefront of the industry,
Business Assurance now offers auditing and certification
services for the world’s first AI standard to enhance ethical
and responsible practices.
Last March, we acquired Base Met Labs, a provider of
metallurgical testing services for the Minerals sector,
strengthening our commitment to the mining industry.
Governance and the Board
The Board strives to operate with the highest governance
and ethical standards. These remain a cornerstone of Intertek.
We believe that maintaining this framework is critical for the
long-term sustainable success of the Company, generating value
for shareholders and contributing to society as a whole. We see
our role as supporting and constructively challenging executive
management as they execute our AAA strategy. We are keenly
aware that we remain accountable for governance, risk controls,
and oversight of operations, financial performance, and culture.
This year Gould Consulting carried out an external Board
performance review. Their evaluation concluded that the
Board and its Committees have clear and appropriate terms
of reference, policies, and processes and have the necessary
information, access to resources and sufficient time allocated
for discussions. The Board also has an appropriate balance of
skills, experience, and knowledge to encourage, challenge, and
debate. All this ensures that the Board operates effectively.
There has been one change to the Board during the year, with
Gill Rider retiring as a Non-Executive Director at the 2024 AGM
after serving for nine years. I would like to thank Gill for her
excellent contribution and dedication to the Company during her
tenure. On 24 December 2024, we were delighted to announce
that Steve Mogford would join the Board as a Non-Executive
Director on 1 January 2025. Steve brings a wide range of
valuable experience in both executive and non-executive
roles across a wide range of sectors.
I joined the Board of Intertek in May 2016 and have served
as Chair since January 2021. The Nomination Committee is
responsible for the appointment of my successor and while this
process is ongoing, I intend to stand for re-election at the AGM
in May 2025 to enable an appropriate transition to the next
Chair. I expect to have stepped down as Chair, and from the
Board, at or before the 2026 AGM.
Engagement
During 2024, the Board travelled to Perth, Western Australia
for a Board meeting and took the opportunity to visit the
Minerals Global Centre of Excellence and various client sites in
Port Hedland. Additionally, I visited Bogotá, Colombia and met
with several individual clients. These visits have been invaluable
in understanding the local dynamics, engaging with colleagues,
and learning about the business firsthand.
I also held meetings with a number of major shareholders
controlling approximately 20% of the Company where we
discussed governance and topical board matters ahead of the
AGM, and I received valuable feedback. This engagement is
important for ensuring transparency and aligning our strategic
direction with shareholder expectations.
MORE DETAILS ON OUR ENGAGEMENT WITH
SHAREHOLDERS CAN BE FOUND ON PAGE 2.77
Preparing for upcoming changes –
2024 Corporate Governance Code
With the new UK Corporate Governance Code taking effect from
2025 the Board is diligently preparing for its implementation,
and is committed to meeting the requirements within
the necessary timeframes. We will report on our implementation
progress in due course.
Summary
The year 2024 was another period of strong performance
for Intertek. Organic revenue growth was the highest for many
years, margins are at peak levels, free cash flow was excellent,
and we stepped up the dividend pay-out ratio and announced
our first share buyback programme.
On behalf of the Board, I would like to thank our colleagues
across the world for their continued commitment to Total Quality
Assurance and to ‘Bringing quality, safety and sustainability
to life’. Intertek is a great business with a clear strategy, global
presence, market-leading positions and capabilities, and strong
growth prospects. We look forward to sharing further successes
with you in the future.
Yours sincerely,
Andrew Martin
Chair
Intertek Group plc
Annual Report & Accounts 2024
2.66
3: Financial Report2: Sustainability Report1: Strategic Report
Committees:
Audit
Nomination
Remuneration
Committee Chair
Andrew Martin
Chair
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
Graham Allan
Senior Independent Director
Gurnek Bains
Non-Executive Director
Lynda Clarizio
Non-Executive Director
Tamara Ingram OBE
Non-Executive Director
Jez Maiden
Non-Executive Director
Steve Mogford
Non-Executive Director
Appointed: to the Board in May 2016;
appointed Chair in January 2021
Tenure: 8.5 years
Appointed: to the Board in May 2015
Tenure: 9.5 years
Appointed: to the Board in March 2023
Tenure: 1.75 years
Appointed: to the Board in October 2017
Tenure: 7 years
Appointed: to the Board in July 2017
Tenure: 7.5 y ear s
Appointed: to the Board in March 2021
Tenure: 3.75 years
Appointed: to the Board in December 2020
Tenure: 4 years
Appointed: to the Board in May 2022
Tenure: 2.5 years
Appointed: to the Board in January 2025
Tenure: n/a
Skills and competencies:
Andrew is a qualified accountant and an
Associate of the Chartered Institute of
Taxation with wide-ranging experience and an
extensive financial background within large
international organisations, who provides
great strength and depth to the Intertek
Board. His experience as a Chair and as
Non-Executive Director assists in promoting
the long-term sustainable success of the
Company for stakeholders and generating
value for shareholders.
From 2012 to 2015, Andrew was Chief
Operating Officer for Compass Group plc having
previously been their Group Finance Director
from 2004 to 2012. Before joining Compass
Group, he held senior financial positions with
First Choice Holidays plc (now TUI Group), Forte
plc and Granada Group plc (now ITV plc) and
was a partner at Arthur Andersen.
Andrew has been a Non-Executive Director of
easyJet plc and a Non-Executive Director of the
John Lewis Partnership Board.
Skills and competencies:
André has an excellent track record of
delivering long-term growth strategies
and shareholder value globally across
diverse territories.
He has consistently succeeded in driving
growth and performance in his career and
has the requisite qualities to carry on leading
Intertek in its continued drive for long-term
sustainable value creation.
From 2005 to 2015, André was Group
CEO of Inchcape plc, during which time he
strengthened its position in the global
automotive market with a track record of
delivering double-digit earnings growth with
strong cash generation, and created significant
shareholder value as its market capitalisation
more than doubled during his tenure as CEO.
He was previously Chairman and Chief
Executive Officer of Euro Disney S.C.A.,
President of Burger King International
operations and the Senior Independent
Director of Reckitt Benckiser Group plc from
October 2008 to December 2018.
Skills and competencies:
Colm brings extensive knowledge and
understanding of the complexities of the
Intertek Group to his role on the Board.
He joined Intertek in 2016 as the Group
Treasurer and later Tax Director.
In 2019 he moved into the role of Regional
Managing Director for Asia Pacific before his
promotion as President Global Transportation
Technologies, Building & Construction and
People Assurance.
Prior to Intertek, Colm worked in banking
and insurance in EMEA, before coming to
the UK to take up senior roles in finance
and general management.
Skills and competencies:
Graham brings strong general management
experience, as well as extensive knowledge
of Asian and other international markets,
in consumer and retail businesses. This
background provides a strong complement
to the current skills on the Board. He also
has vast experience of operating at Board
level on a global scale. Graham was Group
Chief Executive of Dairy Farm International
Holdings Limited, an Asian retailer based in
Hong Kong, from 2012 to 2017 and President
and CEO of Yum Restaurants International (a
Division of Yum Brands) from 2003 to 2012.
In the latter role, he led the growth of global
brands KFC, Pizza Hut and Taco Bell across
most international markets. He had previously
worked at Yum Brands and PepsiCo in several
senior management positions since 1992.
Prior to joining PepsiCo, he worked as a
consultant at McKinsey & Co Inc.
He has also previously served as a Non-
Executive Director of Yonghui Superstores Co.
Ltd in China and a Commissioner of Hero Group,
a leading Indonesian retailer.
Skills and competencies:
Gurnek’s extensive experience, working with
senior leaders across a wide range of industries
internationally and his thought leadership on
culture and leadership development provides
an important voice in the discussions at Board
level, particularly with the Group People
Strategy being of such great importance to the
long-term sustainable success of the Company.
Gurnek was the co-founder of YSC Ltd,
a premier global business psychology
consultancy. He led the business as CEO
and Chair for 25 years, to a position of global
pre-eminence, and a client base comprising
over 40% of the FTSE 100. Gurnek has
worked extensively with multinational
organisations in the areas of culture change,
vision and values, executive coaching and
assessment, Board development and strategic
talent development.
Gurnek is Chair of Akram Khan Dance
Company and has a doctorate in psychology
from Oxford University.
Skills and competencies:
Lynda has over 20 years’ experience in the
media industry growing and scaling businesses
with a focus on data and technology to drive
transparency, accountability and improve
business performance. Lynda’s outstanding
leadership and significant experience in digital
measurement and broader technology provides
a strong addition to the skills on the Board.
Lynda is the Co-Founder and General Partner of
The 98, an early stage venture fund investing
in technology businesses led by women. Lynda
was President of U.S. Media at Nielsen Holdings
plc, a global measurement and data analytics
company. She has also held CEO, President and
other leadership positions at AppNexus, Inc.,
INVISION, Inc., AOL Inc. and Advertising.com.
She was previously a partner at the law
firm Arnold & Porter, where she practised
law until 1999.
Skills and competencies:
Tamara has had an extensive career
in advertising, marketing and digital
communication and has a deep understanding
of consumer brands and digital strategy. She
brings a strong track record of outstanding
leadership in global marketing services and
her experience of branding together with
her stakeholder management abilities bring
additional skills and expertise to the Board.
Tamara held leadership roles within WPP from
2002, and was the Global Chair of Wunderman
Thompson (a subsidiary of WPP plc). Her
executive experience includes senior roles at
Kantar Group, McCann Erickson and Saatchi &
Saatchi UK, where she held the roles of CEO
and Executive Chair. Tamara was previously a
Non-Executive Director of Sage Group plc and
Serco Group plc.
She is Chair of Asthma + Lung UK, Chair of The
10 Group , Chair of the Almedia Theatre Board
of Trustees and Deputy Chair of OfCom.
Skills and competencies:
Jez is an experienced international public
company CFO with a strong track record, who
has worked in a diverse range of industries
and sectors primarily manufacturing, service
and finance. In addition Jez has a strong
background as a Non-Executive Director.
Jez retired as Group Finance Director for Croda
International Plc, the FTSE100 global speciality
chemicals company, in March 2023 having been
in the role since 2015. Before he joined Croda
International plc, he had been the Group FD at
National Express Group, Northern Foods Plc
and Chief Financial Officer at British Vita Plc.
He was previously the Senior Independent
Director, Chair of the Audit Committee and a
member of the Nomination and Remuneration
Committees at Synthomer plc and Chair of the
Audit & Risk Committee and a member of the
Nomination and Remuneration Committees
at PZ Cussons plc.
Jez is a Fellow of the Chartered Institute
of Management Accountants.
Skills and competencies:
Steve brings extensive public markets
experience and a deep understanding
of long-term contracting, projects, and
regulation, which enhances the Board's
expertise in these areas. His significant
experience in the utilities and aerospace
industries, coupled with a firm commitment
to sustainability, is a valuable asset.
With a career spanning over four decades,
Steve brings extensive experience in senior
management roles to the Board. Most recently,
he was the Chief Executive Officer of United
Utilities Group PLC from 2011 until March
2023, leading the company through significant
growth. Prior to this, he spent 30 years at
BAE Systems plc, where he held various
senior positions, including Chief Operating
Officer and board member; he then served as
Chief Executive of Finmeccanica (now SELEX
Galileo), Italy's principal defence and security
company. Additionally, Steve has served as the
Senior Independent Non-Executive Director
of G4S plc.
Current principal external
appointments:
Non-Executive Chairman of Hays plc and
Chair of their Nomination Committee
(until 30 April 2025).
Current principal external
appointments:
None
Current principal external
appointments:
None
Current principal external
appointments:
Senior Independent Non-Executive Director
of InterContinental Hotels Group plc, Non-
Executive Director of Associated British Foods
plc, Americana Restaurants International plc
and a Director of Ikano Retail Pte Ltd (privately
owned). Chairman of Bata International
(privately owned) and adviser to Nando's Ltd.
Current principal external
appointments:
Managing Partner of Global Future Partnership
LLP and CEO of Nous Think Tank.
Current principal external
appointments:
Non-Executive Director of CDW Corporation,
Emerald Holding, Inc and Taboola.com Ltd (US
listed companies), and Simpli.fi Holdings, Inc.,
and Cambri Oy (both privately owned). Co-
Chair of Human Rights First (a non-profit
international human rights organisation).
Current principal external
appointments:
Non-Executive Director of Marsh & McLennan
Companies, Inc., Non-Executive Director of
Marks and Spencer Group plc, Chair of their ESG
Committee and a member of their Nomination
and Remuneration Committees and Non-
Executive Director of Reckitt Benckiser Group
plc and a member of their Audit Committee.
Current principal external
appointments:
Senior Independent Director of Travis Perkins
plc and sits on their Audit and Nomination
Committees; Non-Executive Director of Smith
& Nephew plc, Chair of their Audit Committee
and a member of their Remuneration
Committee; and Non-Executive Director of the
Centre for Process Innovation Ltd and Chair of
their Audit Committee.
Current principal external
appointments:
Senior Independent Director of QinetiQ Group
plc and a Non-Executive Director and member
of the Audit, Nomination and Remuneration
Committees of Costain Group plc.
(Tenure is given as at 31 December 2024)
Board of Directors
A
N
R
N
R N
Intertek Group plc
Annual Report & Accounts 2024
2.67
Board of Directors Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Andrew Martin
Chair
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
Graham Allan
Senior Independent Director
Gurnek Bains
Non-Executive Director
Lynda Clarizio
Non-Executive Director
Tamara Ingram OBE
Non-Executive Director
Jez Maiden
Non-Executive Director
Steve Mogford
Non-Executive Director
Appointed: to the Board in May 2016;
appointed Chair in January 2021
Tenure: 8.5 years
Appointed: to the Board in May 2015
Tenure: 9.5 years
Appointed: to the Board in March 2023
Tenure: 1.75 years
Appointed: to the Board in October 2017
Tenure: 7 years
Appointed: to the Board in July 2017
Tenure: 7.5 y ear s
Appointed: to the Board in March 2021
Tenure: 3.75 years
Appointed: to the Board in December 2020
Tenure: 4 years
Appointed: to the Board in May 2022
Tenure: 2.5 years
Appointed: to the Board in January 2025
Tenure: n/a
Skills and competencies:
Andrew is a qualified accountant and an
Associate of the Chartered Institute of
Taxation with wide-ranging experience and an
extensive financial background within large
international organisations, who provides
great strength and depth to the Intertek
Board. His experience as a Chair and as
Non-Executive Director assists in promoting
the long-term sustainable success of the
Company for stakeholders and generating
value for shareholders.
From 2012 to 2015, Andrew was Chief
Operating Officer for Compass Group plc having
previously been their Group Finance Director
from 2004 to 2012. Before joining Compass
Group, he held senior financial positions with
First Choice Holidays plc (now TUI Group), Forte
plc and Granada Group plc (now ITV plc) and
was a partner at Arthur Andersen.
Andrew has been a Non-Executive Director of
easyJet plc and a Non-Executive Director of the
John Lewis Partnership Board.
Skills and competencies:
André has an excellent track record of
delivering long-term growth strategies
and shareholder value globally across
diverse territories.
He has consistently succeeded in driving
growth and performance in his career and
has the requisite qualities to carry on leading
Intertek in its continued drive for long-term
sustainable value creation.
From 2005 to 2015, André was Group
CEO of Inchcape plc, during which time he
strengthened its position in the global
automotive market with a track record of
delivering double-digit earnings growth with
strong cash generation, and created significant
shareholder value as its market capitalisation
more than doubled during his tenure as CEO.
He was previously Chairman and Chief
Executive Officer of Euro Disney S.C.A.,
President of Burger King International
operations and the Senior Independent
Director of Reckitt Benckiser Group plc from
October 2008 to December 2018.
Skills and competencies:
Colm brings extensive knowledge and
understanding of the complexities of the
Intertek Group to his role on the Board.
He joined Intertek in 2016 as the Group
Treasurer and later Tax Director.
In 2019 he moved into the role of Regional
Managing Director for Asia Pacific before his
promotion as President Global Transportation
Technologies, Building & Construction and
People Assurance.
Prior to Intertek, Colm worked in banking
and insurance in EMEA, before coming to
the UK to take up senior roles in finance
and general management.
Skills and competencies:
Graham brings strong general management
experience, as well as extensive knowledge
of Asian and other international markets,
in consumer and retail businesses. This
background provides a strong complement
to the current skills on the Board. He also
has vast experience of operating at Board
level on a global scale. Graham was Group
Chief Executive of Dairy Farm International
Holdings Limited, an Asian retailer based in
Hong Kong, from 2012 to 2017 and President
and CEO of Yum Restaurants International (a
Division of Yum Brands) from 2003 to 2012.
In the latter role, he led the growth of global
brands KFC, Pizza Hut and Taco Bell across
most international markets. He had previously
worked at Yum Brands and PepsiCo in several
senior management positions since 1992.
Prior to joining PepsiCo, he worked as a
consultant at McKinsey & Co Inc.
He has also previously served as a Non-
Executive Director of Yonghui Superstores Co.
Ltd in China and a Commissioner of Hero Group,
a leading Indonesian retailer.
Skills and competencies:
Gurnek’s extensive experience, working with
senior leaders across a wide range of industries
internationally and his thought leadership on
culture and leadership development provides
an important voice in the discussions at Board
level, particularly with the Group People
Strategy being of such great importance to the
long-term sustainable success of the Company.
Gurnek was the co-founder of YSC Ltd,
a premier global business psychology
consultancy. He led the business as CEO
and Chair for 25 years, to a position of global
pre-eminence, and a client base comprising
over 40% of the FTSE 100. Gurnek has
worked extensively with multinational
organisations in the areas of culture change,
vision and values, executive coaching and
assessment, Board development and strategic
talent development.
Gurnek is Chair of Akram Khan Dance
Company and has a doctorate in psychology
from Oxford University.
Skills and competencies:
Lynda has over 20 years’ experience in the
media industry growing and scaling businesses
with a focus on data and technology to drive
transparency, accountability and improve
business performance. Lynda’s outstanding
leadership and significant experience in digital
measurement and broader technology provides
a strong addition to the skills on the Board.
Lynda is the Co-Founder and General Partner of
The 98, an early stage venture fund investing
in technology businesses led by women. Lynda
was President of U.S. Media at Nielsen Holdings
plc, a global measurement and data analytics
company. She has also held CEO, President and
other leadership positions at AppNexus, Inc.,
INVISION, Inc., AOL Inc. and Advertising.com.
She was previously a partner at the law
firm Arnold & Porter, where she practised
law until 1999.
Skills and competencies:
Tamara has had an extensive career
in advertising, marketing and digital
communication and has a deep understanding
of consumer brands and digital strategy. She
brings a strong track record of outstanding
leadership in global marketing services and
her experience of branding together with
her stakeholder management abilities bring
additional skills and expertise to the Board.
Tamara held leadership roles within WPP from
2002, and was the Global Chair of Wunderman
Thompson (a subsidiary of WPP plc). Her
executive experience includes senior roles at
Kantar Group, McCann Erickson and Saatchi &
Saatchi UK, where she held the roles of CEO
and Executive Chair. Tamara was previously a
Non-Executive Director of Sage Group plc and
Serco Group plc.
She is Chair of Asthma + Lung UK, Chair of The
10 Group , Chair of the Almedia Theatre Board
of Trustees and Deputy Chair of OfCom.
Skills and competencies:
Jez is an experienced international public
company CFO with a strong track record, who
has worked in a diverse range of industries
and sectors primarily manufacturing, service
and finance. In addition Jez has a strong
background as a Non-Executive Director.
Jez retired as Group Finance Director for Croda
International Plc, the FTSE100 global speciality
chemicals company, in March 2023 having been
in the role since 2015. Before he joined Croda
International plc, he had been the Group FD at
National Express Group, Northern Foods Plc
and Chief Financial Officer at British Vita Plc.
He was previously the Senior Independent
Director, Chair of the Audit Committee and a
member of the Nomination and Remuneration
Committees at Synthomer plc and Chair of the
Audit & Risk Committee and a member of the
Nomination and Remuneration Committees
at PZ Cussons plc.
Jez is a Fellow of the Chartered Institute
of Management Accountants.
Skills and competencies:
Steve brings extensive public markets
experience and a deep understanding
of long-term contracting, projects, and
regulation, which enhances the Board's
expertise in these areas. His significant
experience in the utilities and aerospace
industries, coupled with a firm commitment
to sustainability, is a valuable asset.
With a career spanning over four decades,
Steve brings extensive experience in senior
management roles to the Board. Most recently,
he was the Chief Executive Officer of United
Utilities Group PLC from 2011 until March
2023, leading the company through significant
growth. Prior to this, he spent 30 years at
BAE Systems plc, where he held various
senior positions, including Chief Operating
Officer and board member; he then served as
Chief Executive of Finmeccanica (now SELEX
Galileo), Italy's principal defence and security
company. Additionally, Steve has served as the
Senior Independent Non-Executive Director
of G4S plc.
Current principal external
appointments:
Non-Executive Chairman of Hays plc and
Chair of their Nomination Committee
(until 30 April 2025).
Current principal external
appointments:
None
Current principal external
appointments:
None
Current principal external
appointments:
Senior Independent Non-Executive Director
of InterContinental Hotels Group plc, Non-
Executive Director of Associated British Foods
plc, Americana Restaurants International plc
and a Director of Ikano Retail Pte Ltd (privately
owned). Chairman of Bata International
(privately owned) and adviser to Nando's Ltd.
Current principal external
appointments:
Managing Partner of Global Future Partnership
LLP and CEO of Nous Think Tank.
Current principal external
appointments:
Non-Executive Director of CDW Corporation,
Emerald Holding, Inc and Taboola.com Ltd (US
listed companies), and Simpli.fi Holdings, Inc.,
and Cambri Oy (both privately owned). Co-
Chair of Human Rights First (a non-profit
international human rights organisation).
Current principal external
appointments:
Non-Executive Director of Marsh & McLennan
Companies, Inc., Non-Executive Director of
Marks and Spencer Group plc, Chair of their ESG
Committee and a member of their Nomination
and Remuneration Committees and Non-
Executive Director of Reckitt Benckiser Group
plc and a member of their Audit Committee.
Current principal external
appointments:
Senior Independent Director of Travis Perkins
plc and sits on their Audit and Nomination
Committees; Non-Executive Director of Smith
& Nephew plc, Chair of their Audit Committee
and a member of their Remuneration
Committee; and Non-Executive Director of the
Centre for Process Innovation Ltd and Chair of
their Audit Committee.
Current principal external
appointments:
Senior Independent Director of QinetiQ Group
plc and a Non-Executive Director and member
of the Audit, Nomination and Remuneration
Committees of Costain Group plc.
N R N RA A
Intertek Group plc
Annual Report & Accounts 2024
2.68
Board of Directors Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Kawal Preet
Non-Executive Director
Apurvi Sheth
Non-Executive Director
Jean-Michel Valette
Non-Executive Director
Appointed: to the Board in December 2022
Tenure: 2 years
Appointed: to the Board in September 2023
Tenure: 1.25 years
Appointed: to the Board in July 2017
Tenure: 7.5 y ear s
Skills and competencies:
Kawal is an accomplished senior executive
with extensive experience of cross-functional
leadership responsibilities in the fast-paced
and dynamic express transportation and airline
industry and supply chains. Her experience of the
Asian, Middle East and African market provides a
strong addition to the skills on the Intertek Board.
After a career of over 25 years at FedEx
Express in various roles spanning service quality
assurance, ground operations, and planning and
engineering for the air and ground network,
Kawal is currently Regional President of the Asia
Pacific region for FedEx, a position she has held
since June 2024, having previously been the
President, Asia Pacific, Middle East and Africa.
In this role, she has responsibility for leading the
Asia Pacific region with a team of almost 30,000
employees. After working for Tata Motors as a
Graduate Engineer Trainee in India, Kawal joined
FedEx Express as an Associate Engineer in
Singapore. Kawal was previously a Non-Executive
Director of Asia Airfreight Terminal Co. Ltd, from
2016 to 2020. Kawal has a degree in Electrical
Engineering and an MBA.
Skills and competencies:
Apurvi has extensive executive experience
spanning over three decades across numerous
well-known international consumer brands in
the food and beverage industry. Most recently
she was the Managing Director, Southeast Asia
at Diageo plc. Having spent the majority of her
career in Asia and India, Apurvi brings her deep
consumer experience across diverse markets
including China, Japan, Australia, SEA and India
to the Intertek Board.
Apurvi has also served as Marketing Director
South East Asia at PepsiCo International,
Marketing Director of India at Coca-Cola in India
and held various roles at Nestle SA in India.
She also previously served as a Non-Executive
Director of Heineken Malaysia BHD.
Skills and competencies:
Jean-Michel brings strong US and global
management experience, especially in
consumer and luxury goods companies,
which broadens the international and customer
knowledge on the Board. Jean-Michel’s wealth
of knowledge of the US markets, especially
from a customer perspective, is an asset to
the Board.
Jean-Michel has more than 30 years’
experience in management, US public company
corporate governance, strategic planning
and finance. Previously he was Chair of Sleep
Number Corporation and Chairman of Peet’s
Coffee and Tea, Inc., a US beverage company
which was then listed. He was also Managing
Director at the Robert Mondavi Winery before
becoming Chair. In his earlier career, Jean-Michel
was President and CEO of Franciscan Estates,
Inc., a premium wine company.
He currently serves as an independent
adviser in the US to select branded consumer
companies.
He has an MBA from Harvard Business School.
Current principal external
appointments:
President of the Asia Pacific region for FedEx
and US-ASEAN Business Council and Junior
Achievement, Asia Pacific.
Current principal external
appointments:
Strategic Advisor to various companies in
Southeast Asia and India, across a wide range
of sectors including food and beverage, retail
and technology. Non-Executive Director
of SSP Group plc and a member of their
Remuneration and Nomination Committees.
Current principal external
appointments:
Director and Audit Committee Chair of The
Boston Beer Company; Chairman of Huneeus
Vintners and Chairman of DripDrop Hydration
Inc. (Both private US companies).
Division of responsibilities
Our Directors share collective responsibility for the
activities of the Board. There is a clear division of
responsibilities between the Chair and the CEO as
required under the Code.
Our Independent Non-Executive Directors play a vital
role in ensuring good governance and accountability.
The responsibilities of the Chair, CEO, CFO and Senior
Independent Director and other key roles, along with the
matters reserved to the Board, are set out on our website.
Other Directors on the Board during the year
Gill Rider ceased to be a Non-Executive Director following
the AGM on 24 May 2024, having joined the Board in 2015.
Ida Woodger
Group Company Secretary
Ida was appointed as Group Company Secretary on
31 March 2023, having previously held the position of
Head of Sustainability. Ida provides advice and support to
the Board, its Committees and the Chair, and is responsible
for corporate governance across the Group.
Ida is an Associate of the Chartered Governance Institute
UK and Ireland.
The appointment and removal of the Company Secretary
is a matter for the Board.
AAR
INTERTEK.COM/INVESTORS/CORPORATE-GOVERNANCE/
Intertek Group plc
Annual Report & Accounts 2024
2.69
3: Financial Report1: Strategic Report 2: Sustainability Report
Laura Atherton
Group General Counsel
and Head of Risk and
Compliance
Ayush Dhital
Regional Managing
Director Asia Pacific
Alexandra Berger
Senior Vice President
Chief Marketing &
Communications Officer
John Fowler
Senior Vice President
Minerals and E&P
Laura Crespi
Group Financial Controller
Ian Galloway
Executive Vice
President, Caleb Brett
Sandeep Das
CEO Greater China
and President Global
Softlines and Hardlines
Tony George
Executive Vice President,
Human Resources
Marie Giannini
Vice President
Communications and
Head of Sustainability
Bertrand Mallet
Executive Vice President,
Industry Services
Ross McCluskey
Executive Vice President,
Europe, Middle East
and Africa and GTS
Ajay Kapoor
Regional Managing
Director South Asia
Saranpal Rai
President Electrical,
Connected World
and Transportation
Technologies
Julia Thomas
Senior Vice President
Corporate Development
Group
Mark Thomas
Executive Vice President,
Global Sustainability,
Assurance, Agri World
and Food
Carlos Velasco
President Latin America
and Global Building and
Construction
Biographies for members of the
Group Executive Committee are
available on our website:
INTERTEK.COM/ABOUT/
EXECUTIVE-COMMITTEE/
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
Group Executive Committee
Intertek Group plc
Annual Report & Accounts 2024
2.70
3: Financial Report2: Sustainability Report1: Strategic Report
Effective and
entrepreneurial board
Board leadership and company purpose
The Intertek value proposition and Purpose
Intertek’s story has always been about innovation. In 1885 we began testing and
certifying grain cargoes before they were put to sea, and in 1888 we pioneered the
idea of independent testing laboratories. Then in 1896, the greatest inventor of
them all became part of our story. When Thomas Edison released the wonders of
electricity and the light bulb he wanted to ensure that his products were checked,
tested and safe. He established the Lamp Testing Bureau, later to become the
Electrical Testing Laboratories.
Today, our superior customer service is based on our Science-based Customer
Excellence approach which we have built up over many years. This is based on
three essential components: our science-based technical expertise, our continuous
improvement and our innovation.
The foundations and aspirations of our business remain true to those established
by our visionary founders, and their innovation and energy continue to be our
inspiration. Our passion and entrepreneurial culture will ensure that we deliver
for our customers in quality, safety and sustainability – today and in the future.
The Board, with the Executive Committee, sets the corporate culture that defines
our Purpose and establishes an environment where values are appreciated
and respected, encouraging all of our people to ‘Do Business the Right Way’.
Our culture and Values have been, and remain, the core foundations of Intertek.
Our 10X culture is one of entrepreneurial spirit and high performance,
and our people are excited about the opportunities ahead.
100%
Board meeting attendance
(2023: 100%)
Board members
Scheduled
meetings
eligible to
attend
Meetings
attended
1
Andrew Martin Chair 5 5
André Lacroix Chief Executive Officer 5 5
Colm Deasy Chief Financial Officer 5 5
Graham Allan Senior Independent Non-Executive Director 5 5
Gurnek Bains Non-Executive Director 5 5
Lynda Clarizio Non-Executive Director 5 5
Tamara Ingram Non-Executive Director 5 5
Jez Maiden Non-Executive Director 5 5
Kawal Preet Non-Executive Director 5 5
Gill Rider Non-Executive Director
2
2 2
Apurvi Sheth Non-Executive Director 5 5
Jean-Michel Valette Non-Executive Director 5 5
1. The Group Company Secretary is Secretary to the Board and she attends all meetings and provides advice, guidance and support as required.
2. Stepped down from the Board on 24 May 2024.
In addition, after every scheduled Board meeting the Chair and the Non-Executive Directors meet without management present.
Board members and meeting attendance during the year to 31 December 2024
Intertek Group plc
Annual Report & Accounts 2024
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Board leadership and company purpose Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Directors’ conflicts of interest
The Board operates a policy to identify, authorise and manage any
conflicts of interest to assist Directors in complying with their duty
to avoid actual or potential conflicts. The Directors are advised of
the process upon appointment and receive an annual refresher.
Whenever any Director considers that they are, or may be,
interested in any contract or arrangement to which the Company
is, or may be, a party, the Director gives due notice to the Board
in accordance with the Companies Act 2006 and the Articles.
The Conflicts of Interest Register is maintained by the Group
Company Secretary and the Board undertakes an annual
review of each Director’s interests, if any, including outside
the Company. Any conflicts of interest are reviewed when
a new Director is appointed, or if and when a new potential
conflict arises. A formal process is also in place for managing
such conflicts to ensure no conflicted Director is involved in
any decision related to their conflict and, during the year,
this process operated effectively.
Our culture
Our success is based on a culture of trust amongst our
colleagues, globally. To support and ensure this trust,
we continuously monitor and develop further insights
into the culture operating within the business.
The Board considered the revised provisions in the 2024
Corporate Governance Code as they relate to the assessment
and monitoring of culture and how it has been embedded. We
will report further on our implementation progress in due course.
The way in which our people combine passion and innovation
with customer commitment to create a single unbeatable asset
sets us apart and is a vital element of our entrepreneurial,
customer-centric culture. We aim to ensure our strategy and
culture provide our people with the platform to grow their
careers and contribute to our Purpose of enhancing quality,
safety, and sustainability for a better world.
READ MORE ABOUT HOW THE BOARD ASSESS
AND MONITORS CULTURE ON PAGE 2.74
Role of the Board
The governance of Intertek is the responsibility of the Board,
with the support of the Group Company Secretary, and provides
the framework of authority and accountability that operates
throughout the Company to ensure the needs of all stakeholders
are considered and met. Good governance requires the Board
to lead, guide and support the business in its quest to create
sustainable long-term value for the mutual benefits of our
shareholder, customers, employees and the communities in
which we operate. We all have differing skills, a wide range of
diverse experience and extensive knowledge built up over time
in our professional careers, which enables the Board to fully
understand the strategic business drivers of Intertek, but also
the risks and exposures associated with the multiple sectors
and regions in which the Company operates.
We have a clear division of responsibilities between the
roles of the Chair and the Chief Executive. To discharge their
responsibilities effectively, the Chair and Chief Executive
maintain regular dialogue outside the boardroom, to ensure
an effective flow of information. The Non-Executive Directors
have formal as well as informal contact with senior leadership.
Contact with the wider business is encouraged to develop a
deeper understanding of the Group’s operations and this
engagement is welcomed.
A formal and rigorous review of the effectiveness and
performance of the Board is undertaken annually and conducted
according to the guidance set out in the Code. In 2024, the Chair
commissioned an externally facilitated performance review. You
can read more on pages 2.78-2.80.
Where Directors have concerns about the operation of the Board
or the management of the Company that cannot be resolved,
the minutes will reflect this. No such concerns were raised during
the year.
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The following pages give an insight into how we, as a
Board, use our meetings as a mechanism for discharging
our responsibilities, including how the consideration of
stakeholders is embedded into our workings as a Board
and the range of matters we considered and discussed
throughout the year.
Each Board meeting follows a carefully structured agenda
agreed in advance by the Chair, CEO and Group Company
Secretary; this ensures that proper oversight of key areas of
responsibility are scheduled regularly, and that adequate time
is available for the Board to fully consider strategic matters.
The Board and its Committees understand the strategic
significance of stakeholders in our business. The Directors take
into account the interests of colleagues and the need to foster
relationships with other key stakeholders in making decisions.
We acknowledge that our decisions might not necessarily result
in a positive outcome for all our stakeholders and so the Board
has to balance conflicting interests in arriving at its decisions.
While the Board engages directly with stakeholders on some
issues, the size and complexity of the Group and our stakeholder
groups means that engagement often happens below Board
level. However, the Board considers information from across the
organisation to help it understand how our operations affect our
stakeholders’ interests and views.
Section 172 statement
In their discussions and decisions during the year, the Board of
Directors have acted in the way that they consider, in good faith,
would be most likely to promote the success of the Group for the
benefit of its members as a whole (having regard to stakeholders
and the matters set out in sub-sections 172(1) (a)–(f) of the
2006 Act).
Details of how the Board have engaged with colleagues during
the year, and how they have had regard to their interests and the
need to foster business relationships with other stakeholder
groups, is set out on the following pages together with the
Board’s principal decisions.
Board activity in focus
Strategy and
performance
The Board clearly understand the
responsibility to deliver long-term
sustainable success and returns for
shareholders, underpinned by the
highest standard of corporate
governance, conduct and integrity.
We collectively review, discuss and
annually agree the Group’s strategy.
Our people are truly amazing.
To support and ensure our success
is based on our culture of trust, we
continuously monitor and develop
further insights into the culture
operating within the business.
People
and culture
Our people are key to Intertek’s
success and they are always
considered as part of the Board’s
discussions and decision making.
Workforce
engagement
Sustainability is central to everything
we do at Intertek and as a purpose-led
Company, it is anchored in our Purpose,
Vision and Values. The Board, as part of
its overall stewardship of the Company,
oversees the Group's sustainability and
corporate responsibility.
Sustainability
The desirability of the Company
maintaining a reputation for high
standards of business conduct, the
accuracy and validity of reports and
certiﬁcates that we provide, maintaining
the trust and conﬁdence of our
customers, their customers and others
impacted by our work, are important
factors which contribute to our success.
Customer
engagement
The Board is committed to maintaining
an active and open dialogue with
investors and sees this as an important
part of the governance process.
Investor and
shareholder
engagement
MORE DETAILS ON PAGE 2.73
MORE DETAILS ON PAGE 2.75
MORE DETAILS ON PAGE 2.76
MORE DETAILS ON PAGE 2.74
MORE DETAILS ON PAGE 2.76
MORE DETAILS ON PAGE 2.77
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We, as a Board, clearly understand our responsibility to
deliver long-term sustainable success and returns for our
shareholders, underpinned by the highest standard of
corporate governance, conduct and integrity. We collectively
review, discuss and annually agree the Group’s strategy.
The Intertek Amazing ATIC Advantage (‘AAA’) differentiated
growth strategy was launched to accelerate our growth by
seizing the high demand for our ATIC solutions.
Strategic planning discussions are supported by our Purpose
to bring quality, safety and sustainability to life, and to make
the world a better, safer and more sustainable place whilst
looking at the long-term structural drivers and the emerging
trends shaping the future of the world, to ensure that the
business continues to evolve to meet the changing needs of
all stakeholders. Our AAA strategy and goals are outlined on
page 1.11 in Report 1.
Activities of the Board
During the year, the Board monitors and reviews the
performance of the business to ensure that the strategic
objectives are being met. This is an ongoing process which
is reviewed annually by the Board and involves a thorough
review of the progress being made on the implementation
of the strategy and the five-year business plan.
The changes to the economic environment, the long-term
structural drivers and emerging trends shaping the world
are discussed, as well as the resulting impact on Intertek,
together with the strategic initiatives for the year. This
ensures alignment with our Purpose of bringing quality,
safety and sustainability to life.
External speakers also present periodically to provide
an overview on global or regional matters.
During the year the Board also received and discussed
the CEO's report at each meeting which focused on:
• the Group’s overall performance and operations;
• progress against our strategic priorities;
• the competitive and regulatory environment
that Intertek operates in;
• engagement with, and the views of, our stakeholders
including our investors and our colleagues; and
• key business operations including matters which are important
to the group’s reputation, as well as colleague, customer,
supplier and community considerations.
The Board also discussed, reviewed and, as appropriate, approved:
• The financial statements at the full and half year including
any external guidance. It also discussed the feedback from
investor meetings, including those post publication of each
set of financial results. At each meeting, the Board reviewed
the current financial and trading performance for the period
against budget and consensus, and the full year outlook
for each division and the Group as a whole;
• the going concern and viability statements;
• reports, on a monthly basis, outlining share register
movement, our share price performance relative to the
market and industry, investor relations activities and
engagement with shareholders;
• any significant litigation, including our response and
the stakeholder and reputational impact of these; and
• the business, the market, strategic rationale,
management team, culture and business plan
in respect of proposed acquisitions.
Principal decisions
• The Board approved the acquisition of Base Metallurgical
Laboratories;
• The Board recommended a final dividend of 102.6p
per share making 156.5p for the full year; and
• The Board approved a share buyback programme to
commence in 2025. Read more on page 1.16 in Report 1.
Strategy and performance
The Board in Action
December
Reviewed, discussed and agreed
the Group's strategic plan and
objectives including a 360˚
review of the Intertek value
proposition, strategy, updates
on the competitive environment
and regulatory changes.
October
Business line focus –
received presentations from
global leaders across the
business on their areas of
responsibility and expertise.
Regional deep dive and
performance review.
July/August
Regional focus – received
presentations from the
leadership teams across the
business on their areas of
responsibility and expertise.
May
Intertek Group plc
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Board leadership and company purpose Continued
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Action How the Board monitors culture
View from the top Townhalls allow the dissemination of information to
employees across the Group and enable local leadership
to communicate the right behaviours and cultural
expectations, as well as give peer nominated awards
for demonstrating our 10X Energies.
Townhalls occur monthly at most Intertek locations globally. The 10X growth, coaching, training, people planning and
the focus on recognition at all levels ensures that the right values and culture are driven throughout the organisation.
The Board reviews voluntary permanent employee turnover, the Intertek ATIC Engagement Index as set out on page
1.33 in Report 1. In 2023 we also launched Champions in collaboration with Gallup. The Board received updates on
levels of participation during the year.
Globally aligned reward
and incentive schemes
We have designed our short- and long-term incentive
plans to encourage the right behaviours and values
across our global business, in alignment with our Purpose.
The Remuneration Committee report provides more details on this aspect.
Health, safety
and wellbeing
The health, safety and wellbeing of our people is
paramount. The Board receives an update on Health
and Safety statistics across the Group at every Board
meeting to monitor trends year-on-year.
We measure incident reporting, accidents and the overall Total Recordable Incident Rate to ensure that the
right practices are being followed.
Total Recordable Incidents Rate per 200,000 hours worked was 0.42 (2023: 0.51).
The Board also receives updates on employee wellbeing programmes.
Ethics and compliance
reports
Updates are provided at every Board meeting on all
hotline and whistleblowing reports and analysis by
issue type.
The Board is able to determine if there are any trends which need further analysis or investigation.
For more information see page 2.58.
Training The Board receives an update annually from the
EVP HR on programmes available to employees.
The Group General Counsel also reports on the
completion of annual training on the Intertek
Code of Ethics.
As a provider of quality, safety and sustainability assurance services, Intertek relies on a skilled workforce to
demonstrate their understanding of, and commitment to, the highest standards of business conduct and ensure
that we do business the right way. During 2024, employees completed 103,303 hours of training on Lucie.
We aim for 100% completion of our compliance training for eligible employees (2024: 100%, 2023: 97.6%).
A few employees did not complete the training, the 2024 rate is rounded to the nearest 0.1%.
Key claims reports The Group General Counsel provides updates at every
Board meeting on material legal claims.
Significant legal claims are reviewed by the Audit Committee to monitor the trends and types of claims.
Internal audit reports Updates at every Audit Committee meeting on internal
audit reports, the areas of non-compliance with the
Financial Core Mandatory Controls and actions taken.
Trend analysis is provided to underscore that we are ‘Doing Business the Right Way’.
Visits to regional businesses Non-Executive Directors are encouraged to visit
regional businesses.
In 2024, members of the Board visited operations in Colombia, Pakistan, Singapore, Australia and the UK.
Read more on pages 2.75-2.76 and 2.80.
Our people are truly amazing and our success is based on a culture of trust amongst our colleagues globally.
To support and ensure this trust, and foster a culture of 'Doing business the Right Way', we continuously
monitor and develop further insights into the culture operating within the business.
People and culture
The Board in Action
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Due to the global nature and size of the business, together
with the complexity and diverse make-up of the various
sectors and regions in which we operate, the Board decided to
choose an alternative method to those suggested in Provision
5 to the Code. Instead, we utilise a multi-faceted approach to
workforce engagement to make certain that what is in place
ensures that we, as a Board, receive 360˚ multi-source
feedback to assist us in evaluating the different views
and perspectives from our employees across the Group.
We keep our engagement mechanisms under review and
continue to believe that this methodology remains effective
as it enables us, the Board, to fully understand the views of
the workforce when taking such considerations into account
as part of our decision-making process.
Activities of the Board
During the year the Board received updates on and discussed:
Feedback from townhalls conducted across the world. Question
and answer sessions are held at town halls to provide two-way
communication and a method of further engagement. André
Lacroix led eight townhalls across the world during 2024.
Our colleagues across the world continue to upload stories
about how they or their team are bringing our Purpose to life
through their work. These stories are shared with the Board as
part of Sustainability Moments at the start of each Board and
Committee meeting.
Technology has been used to facilitate the attendance of many
from overseas without the need for travel to the physical Board
meetings. The Board was particularly interested to engage with
and hear feedback from our employees across the different
locations. In addition, 26 leaders and subject matter experts
across the Group presented on their areas of expertise at
Board meetings.
In October 2024, our Board of Directors held its meeting at
our Intertek Minerals Global Centre of Excellence (‘CoE’) in
Perth, Australia, a key hub for the minerals and mining industry.
With over 500 employees, this state-of-the-art laboratory gives
our customers access to trusted expertise in mineral testing,
inspection and analysis. The facility opened in 2021 to inspire
innovation and sustainability across the minerals supply chain,
with advanced technology, automation and robotics. This special
meeting provided an opportunity for the Board to tour the CoE,
learning more about the expertise of our onsite team and seeing
the cutting-edge technologies we use to deliver industry-
leading solutions to our customers in action. Having met many
of our Intertek Minerals colleagues throughout the trip, our
Board was especially impressed by the professionalism, pride
and positive culture of the team.
Members of the Board are always encouraged to continue to
undertake additional visits to our laboratories both in person and
via video links, engaging with our employees across the world.
In February 2024, Andrew Martin visited our Caleb Brett laboratory
in Fontibón, Bogotá – one of our largest sites in Colombia.
The visit included a comprehensive tour of our operations
and high-tech testing equipment at the laboratory, where
we provide our customers in the hydrocarbons industry
with expert analysis of oil, fuel and refined products.
During the tour, Andrew met the teams from each division
of the laboratory, highlighting our commitment to providing
opportunities for collaboration and two-way communication
between our Board and colleagues across the business.
Senior colleagues from our Colombia team also presented
our strategic goals for the country, focusing on sustainable
and responsible growth, as well as telling Andrew more
about our clients and the local market.
In March 2024, colleagues from our Intertek Dhaka
laboratory welcomed Graham Allan to learn more about
our work in Bangladesh and inaugurate an impactful new
sustainability initiative. During his tour, Graham engaged
with local site leaders from our Softlines and Business
Assurance teams, who provided a comprehensive overview
of the Total Quality Assurance services provided at the
facility. In addition, Graham received a virtual tour of our
Softlines facility in Gazipur.
In November, Jez Maiden visited Intertek Melbourn, a
UK-based laboratory and global leader in the development
of inhaled and nasal medicines, to learn more about our
pharmaceutical services business. During the visit, our
onsite team provided Jez with an overview of the work we
do in Melbourn and at our European Centre of Excellence in
Manchester, which specialises in mRNA, cell and gene, and
biologic characterisation.
The team shared more information on the history, recent
growth and future plans for our pharmaceuticals business,
as well as giving Jez a tour of the laboratory. The tour
included a showcase of the newly completed mezzanine
expansion, which offers 11,000 square feet of additional
laboratory space for the continued growth of our inhaled
biologic services. In addition, the visit provided our
colleagues, including the extended management team of our
pharmaceuticals services business, with an opportunity to
ask Jez questions and learn more about the role of an NED.
Workforce engagement
The Board in Action
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Board leadership and company purpose Continued
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Customer engagement is important for customer
growth as it develops and strengthens our
relationships enabling Intertek to understand the
services they need and what they expect from
us. To ensure that we continue to innovate and
anticipate the growing needs of our customers,
we constantly evolve and improve our customer
proposition to meet their changing needs and the
changing world around us.
We offer our customers the Intertek Science-
based Total Quality Assurance advantage to
strengthen their businesses and supporting
them to thrive in an increasingly complex world.
Activities of the Board
During the year the Board received regular reports
with detailed deep dives on major customers.
As part of the Board's annual overseas visit the
Board toured three customers mine and port sites,
as well as our managed laboratories in Port
Hedland and the Pilbara region. For several Board
members, it was their first time observing the
impressive scale and efficiency of mining and port
operations of such magnitude.
The experience highlighted the critical role
Intertek Minerals plays in supporting global mining
activities, and how our remote-managed labs are
driving innovation and efficiency in the industry.
We continuously invest in our ATIC capacity,
developing and launching powerful new solutions
that meet our customers' fast-changing needs.
The Board reviewed the delivered innovations,
received updates on the pipeline of projects and
endorsed the Group Innovation Strategy.
Customer engagement
Sustainability is central to everything we do at
Intertek and, as a purpose-led Company, it is
anchored in our Purpose, Vision and Values.
The Board, as part of its overall stewardship of
the Company, oversees the Group’s sustainability
and corporate responsibility strategy, together
with any material environmental and social issues.
The execution of this strategy is delegated to
the Group Executive Committee and our two
sustainability focussed Steering Committees.
Read more about the roles and responsibilities
of the Net Zero and Beyond Net Zero Steering
Committees on page 1.67 in Report 1.
Activities of the Board
The Board recognises the importance of
sustainability to all our stakeholders, together with
the increasing risks associated with climate change
and ensures that at every Board and Committee
meeting, the first item on every agenda is a
Sustainability
The Board in Action The Board in Action
'Sustainability Moment' to demonstrate its
importance to the future long-term sustainable
success of Intertek.
Site visits support knowledge and understanding of
the opportunities for our business. When it opened
in 2014, our Dhaka laboratory was the largest
Softlines testing lab in Asia and a one-stop facility
for all quality and safety assurance solutions for
diverse industries in South Asia for countries like
India, Bangladesh, Sri Lanka, Nepal and Bhutan.
On his visit, Graham Allan took part in the formal
inauguration of the ‘AquaCycle’ project, which
focuses on recycling cooling water for the site’s
dry-cleaning machine. By installing a ground-floor
water reservoir tank and an overhead tank for
lifting cooled water, the initiative will save
6.7 million litres from sewage each year.
The Board also receives regular updates on
the performance of the Group against our
emission targets.
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The Board maintains an active and open dialogue with investors and
sees this as an important part of the governance process. Reporting
to the Board takes place at every meeting with feedback from
meetings held between executive management, or the investor
relations department, and institutional shareholders.
January
• Oddo-BHF Forum 2024, Lyon
• IR & management meetings
in London
• Zurich and Geneva Roadshow
February – March
• North American Roadshow (Montreal,
Florida, Miami, Atlanta, Austin, Dallas)
• Full year results 2023
• Annual Results Roadshow
• Berenberg UK Corporate Conference 2024
• Jefferies Small-Cap Conference, London
• Exane ESG Conference, Paris
April – May
• North American Roadshow (Toronto, Denver)
• US Roadshow (New York, Boston, Chicago)
• Trading Statement
• AGM
June
• Paris Roadshow
• Frankfurt Roadshow
July – August
• Half year Results 2024
• Half year Results Roadshow
• Netherlands Roadshow
• New York Roadshow
September
• BNP Paribas EXANE TIC Conference,
London
• UBS Business, Leisure and Transport
Conference, London
• London Roadshow
• Bernstein SDC
• US Roadshow (San Francisco and Los
Angeles)
October
• APAC Roadshow (J.P. Morgan)
• IR meetings in London
• Edinburgh Roadshow
• Copenhagen Roadshow
• Helsinki Roadshow
November
• US Roadshow (New York, Montreal and Toronto)
• JPM Business Services Conference (NYC)
• Bernstein’s The Premium Review Conference
(London)
• NTS London Roadshow
• Austin Roadshow
• Trading Statement
December
• Berenberg European Conference, London
• MS BLT Conference, London
• Stockholm Roadshow
Investor and shareholder engagement
Investor relations programme
Aimed at helping existing and potential investors understand
the Group’s business model, strategy, financial performance and
outlook. The programme is wide-ranging and includes events
and roadshows throughout the year to update investors and
sell-side analysts on the developments of the Group.
Roadshows
Following the full year and half year results announcements,
the Executive Directors and Investor Relations team held
meetings with the principal shareholders.
Conferences
Executive Directors and the Investor Relations team attend
industry conferences throughout the year, providing the
opportunity to meet a large number of investors.
Resources
A wealth of information is available to investors in our Annual
Report & Accounts, half year announcements and trading
updates and Regulatory News Service announcements, these
materials are available on our website and are supplemented by
videos, webcasts and presentations including material from the
Capital Markets Event held in 2023.
Feedback Forum
The Executive Directors and Investor Relations team receive
regular feedback from sell-side analysts and investors during
the year both directly and through the Group’s corporate
advisers. The Group Company Secretary also receives
feedback on governance matters directly from investors
and shareholder bodies.
Board shareholder engagement
The Chair, following any engagement with shareholders,
ensures that the Board as a whole has a clear understanding of
their views. Intertek’s largest shareholders, representing more
than 59% of the share register, are invited annually to meet
with the Chair to share their views and discuss any corporate
governance matters. During April and May 2024, the Chair held
six meetings with shareholders. The feedback received was
positive, and shareholders continue to be very supportive
of Intertek’s strategy, the management and the Board.
The feedback was presented and discussed with the Board
at the May Board meeting.
The Chairs of the Committees will seek engagement with
shareholders on significant matters relating to their area
of responsibility as appropriate. Graham Allan, as Chair of
the Remuneration Committee engaged extensively with
shareholders during the year. More details of the process and
the outcomes can be found in the Remuneration Committee
report on pages 2.97-2.99.
Graham Allan, in his capacity as Senior Independent Director,
also engaged with shareholders on Board succession and
the extension of Andrew Martin's term as Chair of the Board.
Further details can be found on page 2.84.
Annual General Meeting (‘AGM’)
The Board welcomes the opportunity to meet with both
private and institutional investors at the AGM, providing an
opportunity for all shareholders to engage and ask questions
of the full Board. All Board members attend the AGM.
The 2025 AGM is currently scheduled to be held on Thursday,
22 May 2025 at 11.00 a.m. in the Marlborough Theatre,
No. 11 Cavendish Square, London, W1G 0AN.
The Company proposes a resolution on each separate issue
and does not combine resolutions inappropriately. The Notice
of the AGM is sent to shareholders by e-communications or
by post and is also available at intertek.com.
The Board in action
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Composition and succession
The Board is committed to ensuring that
it has the right balance of skills, experience,
knowledge and diversity, to lead Intertek
and deliver our AAA strategy to make the
world a better and safer place.
The composition of the Board during the year is set out
on page 2.70.
More information on the appointment process and succession
planning to ensure that we have the right individuals who can
inspire and provide passionate leadership is outlined in the
Nomination Committee report on pages 2.82-2.85.
The 'People Agenda' including talent development, retention,
succession and employee engagement features high on the
agenda. More so, given the importance of the highly qualified
Board Performance Review
In accordance with the Code, the effectiveness of the Board,
and its Committees is rigorously reviewed annually and an
independent externally facilitated Board review is conducted
every three years.
The 2023 Board internal evaluation process was led by
Andrew Martin, with the support of the Group Company
Secretary, and entailed:
• the completion of detailed questionnaires by each Board
member;
• discussions on the outcomes and recommendations with
the Chair and each Board member;
• following discussion of the results of the evaluation
the Board as a whole, identifying and agreeing areas
for improvement.
For each Committee of the Board a similar process was
undertaken.
The internal review of the Committees showed strong scores
in all four categories that were evaluated. Feedback from the
review was incorporated into the annual agenda for the Board
and the Committees.
Composition, succession and evaluation
employee base to the ongoing success of Intertek. Succession
and talent planning is a very thorough and thoughtful process
with at least annual discussion at the Board.
Learning and development
Ongoing and continuous development is crucial to our Directors
remaining highly engaged, effective and well informed. All
Directors are kept up-to-date with information about Intertek’s
business and there is an ongoing programme of information
dissemination throughout the year. It is important that the
Directors have an appreciation of the business, both in the UK
and overseas.
The Company also encourages Directors to attend briefings
and seminars offered by professional and commercial bodies
in order to keep abreast of current legal and regulatory
requirements, especially within their specialist fields such
as audit or remuneration.
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Board findings
The Directors were pleased to note Gould Consulting’s
conclusion that the Board and its Committees are highly
effective, and they observed performance outcomes
across all areas at the top of their benchmarks.
Key findings of the 2024 external evaluation:
• This large, diverse, and experienced Board gels well under
the current Chair. The Non-Executive Directors take pride in
their ambition to support the CEO and his high-performing
management team. Overall, this works well, in no small part,
due to the energy and passion the current CEO brings to
the Board.
• The Board has worked hard to evolve a style of working and
meeting cadence that maximises the level of collaboration
and teamwork between the wider management team and
Non-Executive Directors.
• We applaud the openness and transparency of
communications between both the CEO and the Chair
and the CEO and the Non-Executive Directors.
At the February Board meeting, the Chair consulted and
developed the proposals for further Board consideration
and implementation during 2025.
2024 Board effectiveness review process 2024 Board effectiveness
review findings
Key area of focus for 2025:
Agreed actions
Consider and appoint additional Non-Executive Directors
to the Board in light of the expected Board changes and
the need to ensure effective succession planning.
Actions in progress
• Steve Mogford was appointed as Non-Executive
Director on 1 January 2025 bringing extensive public
markets experience to the Board.
• The Board continues to consider potential Non-
Executive Director appointments.
Appointment of an
external facilitator
As planned, and
recommended by the
Code, the 2024 external
evaluation process was
facilitated by an
independent third party,
Gould Consulting, under
the direction of the Chair.
Gould Consulting have no
other connection to the
Company or with any of
the Directors.
Objectives and scope
Gould Consulting were
engaged to conduct a
comprehensive review
of the Board and the
Committees effectiveness.
The agreed approach,
tailored specifically for
Intertek, was designed
to get feedback from
the Executive and
Non-Executive Directors
on current strengths and
preparation for future
challenges.
The review was led by the
Chair and supported by
Gould Consulting and the
Company Secretary.
Information gathering
Gould Consulting held initial
briefing meetings with the
Chair and Company
Secretary in order to agree
discussion themes and
priorities for the review.
Between November 2024
and January 2025, each
member of the Board
completed a confidential
self-assessment
questionnaire.
Gould Consulting then held
individual interviews with
the Directors and the
Company Secretary.
Further information was
gathered through:
• Board and Committee
paper review.
• Review of additional
governance materials
including key Board
policies and processes,
and Board and Committee
Terms of Reference.
Discussion of
review findings
In February 2025
discussions of the results of
the review took place with
the Chair and CEO followed
by the review of findings
with the Board as a whole.
A discussion document
was circulated to the
Board in advance,
which summarised Gould
Consulting’s assessment of
the key findings, the Board’s
strengths, together with
recommendations for
the future.
2 41 3
Intertek Group plc
Annual Report & Accounts 2024
2.80
Composition, succession and evaluation Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Board induction
There is a full, formal and extensive induction programme which
is tailored to ensure that Directors joining the Board are provided
with the knowledge and materials to enable them to add value
from an early stage. This is managed by the Chair and the Group
Company Secretary.
During the year, Apurvi Sheth completed her induction
programme which included receiving details of Board procedures,
Directors' responsibilities, and various governance-related issues
and strategic priorities within the Group.
For the Non-Executive Directors, the induction programme also
includes a wealth of background information on the Company
and a series of meetings with other members of the Board,
senior members of management and external advisers.
Visits to our laboratories and sites are also arranged.
Building on the established success of virtual site visits over
the past four years, we continue to implement a comprehensive
programme that balances virtual visits to our operations with
that of in-person visits to laboratories. This enables our new
Directors to meet senior management across the Group and our
colleagues working in labs.
Following virtual visits to China, Turkey, UAE and Italy in 2023,
Kawal Preet and Apurvi were invited to tour our Intertek
Singapore Technical Centre on Jurong Island in February 2024.
Guided by senior colleagues from the region, Apurvi and Kawal
gained valuable insights into the operations and cutting-edge
capabilities at the Caleb Brett laboratory, which specialises in
testing, inspection and certification for the petroleum, refining
and petrochemical industries. They also heard more about
Intertek’s rigorous quality assurance processes and commitment
to innovation and excellence, as well as our presence and impact
in the region.
Site visits are an important part of our Board member
onboarding process, allowing new members to learn more
about our work while also sharing their own experience and
expertise to help drive our continued global growth.
The programme aims to provide great insight into the business,
operations and people. This process will continue to be kept
under review.
Steve Mogford will complete his induction during 2025 and
we will report on this in the next Annual Report & Accounts.
Chair and Director evaluation
The Non-Executive Directors, led by the Senior Independent
Non-Executive Director, conducted a performance review of
Andrew Martin, who was the Chair of the Board during 2024.
The review considered his leadership, corporate and commercial
skills and general experience.
Andrew Martin was appointed to the Board in May 2016 and
was appointed as Chair of the Board in January 2021. Hence,
he has now served as a Director of the Company for nearly nine
years, four of which he has served as Chair. Provision 19 of
the Code provides for an limited extension of tenure in certain
circumstances, subject to clear explanation to shareholders.
During the last two years, three new Directors have joined
the Board and, over the next two years, several experienced
Directors will step down from the Board by rotation. Taking into
account these Board changes and the need to ensure effective
succession planning for a new Chair, the Committee concluded
that Andrew Martin’s re-appointment as Chair, albeit not beyond
the May 2026 Annual General Meeting, was in the best interests
of the Company.
This proposal was also discussed with several of the Company’s
larger shareholders, each of which were understanding of the
Nomination Committee’s rationale.
Andrew Martin, the Chair, also met with each Director to discuss
their individual contributions and performance, together with
any training and development needs. Following these reviews,
the Board remains satisfied that, in line with the Code, all
Directors are able to allocate sufficient time to the Company
to enable them to discharge their responsibilities as Directors
effectively and that any current external appointments do not
detract from the extent or quality of time which any Director is
able to devote to the Company.
The Board recommends that shareholders should be supportive
of their election or re-election to the Board at the 2025 AGM.
Intertek Group plc
Annual Report & Accounts 2024
2.81
3: Financial Report1: Strategic Report 2: Sustainability Report
Audit, risk and internal control
Audit
There are formal policies and procedures in place designed to
ensure the independence and effectiveness of the internal
and external audit functions. Group Internal Audit is a single
independent internal audit function, reporting to the Audit
Committee on financial controls and risks. Further detail can
be found in the sections headed ‘Internal Audit’ on page 2.91.
The Board has delegated a number of responsibilities to the
Audit Committee, including monitoring and reviewing financial
reporting, the effectiveness of internal financial controls and
the risk management framework, whistleblowing, the internal
audit process and the external auditor’s process. The Audit
Committee reports to the Board on its activities, and its report
for 2024, confirming how it has discharged its duties, can be
found on pages 2.86-2.93.
Internal control and risk management
Intertek has implemented an end-to-end integrated approach
to risk, control and compliance which embeds risk management
throughout our business; allowing us to dynamically adapt
our controls, policies and assurance activities as our risk
environment changes; and creates responsibility and oversight
of our risk identification and risk mitigation actions to ensure
they are effective, relevant and robust. For more information
on the evolution of our risk management approach see on pages
1.57-1.59 in Report 1.
Our integrated risk management framework
Risk management is embedded throughout our organisation
using a framework of divisional, regional and functional risk
committees. These committees meet, at least, quarterly to
identify, monitor and assess the risks within their area of
responsibility using tools including risk mitigation action plans.
It is the responsibility of each committee to assess whether its
risk environment is changing, whether it has the right mitigation
action plans and whether new or different plans are required in
response to new or changing risks.
The risk committees report to our Group Risk Committee which
in turn provides a report on risk and mitigation actions at each
meeting of the Board.
Our integrated approach to identifying and
mitigating risks
At Intertek, we view our risk environment as consisting of
emerging risks (risks that are potential or future-looking) and
systemic risks (risks which are concrete and actually present
or inherent in our operations). Emerging risks are assessed by
perceived likelihood and impact and addressed using mitigation
action plans on a ‘three lines of defence’ model. Systemic risks
are addressed using our internal controls, policies and procedures
and also uses the three lines of defence model, as appropriate.
Our risk identification and mitigation approach is integrated
and dynamic as our risk committees continually review their
emerging risks and, to the extent those risks start to become
systemic (or ‘real’ rather than ‘potential’ risks), identify new
controls, policies or procedures so that we can put new systemic
mitigations in place.
Our integrated approach to risk assurance
We have an integrated approach to getting assurance that
our risks are being appropriately and effectively identified and
mitigated. We use an assurance map, which takes each of our
emerging and systemic risks and maps an assurance framework,
using the three lines of defence, onto them by identifying the
roles or functions which are responsible for the management,
control and oversight of those risks.
Objective assurance is provided, in the third line, by our Internal
Audit function (which audits our financial controls and risks),
by our Compliance function (which audits our non-financial,
operational controls and risks), and by our CyberSecurity team
(which audits our IT controls and risks).
Our integrated approach to risk governance and oversight
The Board ultimately reviews the Group’s risks, controls and
compliance and mitigation actions. The Audit Committee is
responsible for reviewing the adequacy and effectiveness of
the financial controls. If this governance and oversight identify
new risks or the need for new controls, policies or procedures,
these changes are implemented and communicated to the
risk committee framework. This ensures that governance and
oversight drive continuous improvements in risk identification
and mitigation actions plans.
The Board undertakes a robust assessment annually. At each
Board meeting during 2024, the Group General Counsel
presented an integrated risk, control and compliance report
including a review of:
• the Group’s emerging risks, the status of the quarterly
emerging risk mitigation action plans and the new quarterly
emerging risk mitigation plans;
• the specific systemic risks including quarterly hotline and
whistleblowing reports, key claims and authorised unlimited
liability contracts; and
• the Group’s systemic risk environment, the status of the
quarterly systemic risk mitigation action plans and the new
quarterly systemic risk mitigation plans.
Audit and Corporate Governance Reform
During the year, the Board and the Audit Committee reviewed the
provisions in the revised UK Corporate Governance Code and will
report on the implementation progress in due course. Our internal
control and risk management framework put the Group in a good
position to meet the new recommendations of the Code.
Intertek Group plc
Annual Report & Accounts 2024
2.82
3: Financial Report2: Sustainability Report1: Strategic Report
Nomination Committee Report
On 24 December 2024, we were delighted to announce that
Steve Mogford would join the Board as Non-Executive Director
on 1 January 2025. Steve brings a wealth of experience in both
executive and non-executive roles across a wide range of sectors.
I joined the Board of Intertek in May 2016 and have served as
Chair since January 2021. The Committee is responsible for the
appointment of my successor and while this process is ongoing,
I intend to stand for re-election at the AGM in May to enable
an appropriate transition to the next Chair. I expect to have
stepped down as Chair and from the Board at or before
the 2026 AGM.
This year, the performance review was conducted as part of
the external Board performance review. We discussed the
results and it concluded that the Committee operated
effectively during the year.
Andrew Martin
Chair of the Nomination Committee
Dear shareholder,
In a year of relatively little Board change,
the Nomination Committee ('Committee'),
on behalf of the Board, prioritised
the longer-term Board composition.
The need to keep the Board refreshed but at the same time
maintain a knowledgeable and experienced team of Non-
Executive Directors is crucial and forms a large part of the
Committee’s work. This report sets out details of our activities
during the year, focusing in particular on succession planning.
We concluded our previous search for non-executive directors
with the appointments of Kawal Preet in 2022 and Apurvi Sheth
in 2023.
It is vital that we have the right skills and expertise around
the Board table to help support the business to seize the
opportunities in our industry as our clients increase their
focus on Risk-based Quality Assurance to operate with higher
standards on quality, safety and sustainability in each part
of their value chain.
The Committee continues to demonstrate its ability to
successfully identify the key characteristics required on the
Board. The Committee initiated a new search during the year
and more details on this can be found on the following pages.
In May, following the AGM, Gill Rider retired as Non-Executive
Director and Chair of the Remuneration Committee after serving
for nearly nine years. The Committee reviewed the composition
of the Committees and recommended the appointment Graham
Allan as Chair of the Remuneration Committee, Kawal Preet as a
member of the Remuneration Committee and Apurvi Sheth a
member of the Audit Committee. All appointments took place
following the AGM on 24 May 2024.
Intertek Group plc
Annual Report & Accounts 2024
2.83
Nomination Committee Report Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Membership and meeting attendance
During the year, we held four formal meetings. Attendance of
members at formal meetings is shown in the table below. The
Group Company Secretary attends all formal meetings of the
Committee and the Committee invites the CEO and the EVP,
Human Resources to attend meetings when the subject matter
deems their presence appropriate.
Committee members
Member
since
Meetings
attended
1
Andrew Martin (Chair) January 2021 4/4
Graham Allan October 2017 4/4
Gurnek Bains July 2017 4/4
Tamara Ingram June 2022 4/4
1. Number of meetings attended out of the number of meetings eligible to attend in the year.
Role and key responsibilities
• Review the structure, size and composition of the Board and
its Committees.
• Identify, review and nominate a diverse pipeline of candidates
to fill Board vacancies
1
.
• Evaluate the balance of skills, independence, knowledge,
experience and diversity on the Board and its Committees.
• Review the results of the performance evaluation process
that relates to the composition of the Board and its
Committees.
• Review the time commitment required from Non-Executive
Directors.
• Review senior management succession plans regularly.
1. Neither the Chair nor the CEO participates in the recruitment of their own successor.
THE FULL TERMS OF REFERENCE OF THE COMMITTEE, WHICH
ARE REVIEWED ANNUALLY, CAN BE FOUND ON OUR WEBSITE:
INTERTEK.COM/ABOUT/COMPLIANCE-GOVERNANCE
Chair and Non-Executive Director appointment process
The Committee reviews the structure and composition of the
Board, in turn considering the balance of skills, experience,
industry and geographic experience and knowledge, diversity,
independence, and cognitive and personal strengths of the
current Board. When considering these factors, the Committee
is mindful of attributes that will assist in the delivery of the
Group strategy.
Once a preferred candidate is chosen, the Committee makes
a recommendation to the Board to appoint the individual.
Once the candidates are shortlisted, initial interviews are held
and the shortlist reduced further. The final candidates are invited
to separate meetings with the Committee members and the CEO.
The appointed consultant presents an initial longlist of
candidates. This list is then shortlisted using the brief
as a guide to determine suitability.
The Committee, following the skills and composition review,
compiles a brief for the role which outlines favourable
characteristics and attributes that they desire the appointed
individual to hold. This brief is then shared with the chosen
consultant who will utilise the brief to compile a list of
suitable candidates.
Skills and
composition
review
Creating
the brief
Longlist and
shortlist review
Due diligence
Recommendations
Intertek Group plc
Annual Report & Accounts 2024
2.84
Nomination Committee Report Continued
3: Financial Report2: Sustainability Report1: Strategic Report
On appointment, the Board assessed and agreed that Andrew
Martin was independent in accordance with the provisions of the
Code. At its meeting in December, the Committee discussed the
reappointment of Andrew Martin as Chair of the Board. Graham
Allan, Senior Independent Director, chaired the meeting and
Andrew Martin did not attend. The Committee considered the
ongoing performance of the Chair, including his leadership,
corporate and commercial skills and general experience.
Andrew Martin joined the Board of Intertek in May 2016 and
has served as Chair since January 2021. Hence, he has now
served as a director of the Company for nearly nine years, four of
which he has served as Chair. Provision 19 of the Code provides
for a limited extension of tenure in certain circumstances,
subject to providing a clear explanation to shareholders.
During the last two years, three new directors have joined
the Board and, over the next two years, several experienced
directors will step down from the Board by rotation.
Taking into account these Board changes and the need to
ensure effective succession planning for a new Chair, the
Committee concluded that Andrew Martin’s re-appointment
as Chair, albeit not beyond the May 2026 Annual General
Meeting, was in the best interests of the Company.
Subsequent to the December Committee meeting, this proposal
was also discussed with several of the Company’s larger
shareholders, each of which were understanding of the
Committee’s rationale.
The Board recognises the importance of all Non-Executive
Directors having the necessary time to commit to the business
of Intertek and, upon appointment, their letters of appointment
stipulate the expected time commitment whilst acknowledging
that this may vary depending upon the demands of the business
and other events. All Directors make themselves freely available
as required, even at short notice, in order to meet the needs of
the business.
Directors seek approval from the Board before accepting any
additional external appointments. When assessing additional
directorships, the Board considers the number and nature of
external directorships already held by the individual and the
expected time commitment for those roles. During 2024,
approval was given to Tamara Ingram and Jez Maiden for new
external appointments. When considering the new external
Committee activity in focus
Board and Committee changes
During the year, as part of our succession planning for the
next 18 months, the Committee initiated searches for additional
new Non-Executive Directors. In addition to the specific skills,
knowledge and experience deemed necessary, the role
specification contained criteria such as competency and
personal qualities that would be required for the position.
The Committee also paid close attention to ensure that the
candidates selected exhibited the right behaviours to fit the
culture, values and ethics of the Group and would also be
able to allocate sufficient time to the Company to discharge
their responsibilities.
The Committee engaged Egon Zehnder and Spencer Stuart,
both external search agencies with no other connection to the
Company or its individual Directors, to assist with the selection
process. Egon Zehnder were engaged to focus on the UK market
whilst Spencer Stuart focused on the international market to
reflect the global nature of the Group.
For the searches, an initial list of potential candidates was
produced and shortlisted. The Committee members and the Chair
met separately with shortlisted candidates, following which they
agreed to recommend to the Board the appointment of Steve
Mogford, as announced on 24 December 2024. Steve joined the
Board from 1 January 2025.
Steve is a highly experienced executive and non-executive
director with experience from across a breadth of sectors,
extensive public markets knowledge and a deep understanding
of long-term contracting, projects and regulation. He has a firm
commitment to sustainability which is at the heart of Intertek's
Purpose, Vision and Values.
Talent mapping and succession planning
To ensure that the Board comprises a wide range of skills,
experience and attributes, the Committee discusses and reviews
extensively the experience, skills and behaviours required of
future Directors, including the qualities of the individual required
to ensure the right fit with the culture and style of Intertek.
In identifying suitable candidates to recommend for
appointment to the Board, the Committee considers all
candidates on merit, against objective criteria, and with
due regard for the benefits of diversity on the Board to achieve
the most effective Board possible.
During the year, we continued to monitor the composition of
the Board and its principal Committees, implementing changes
announced at the end of 2023. Our discussions then considered
different time horizons within our succession planning, including
contingency planning for sudden and unforeseen departures,
the orderly replacement of current Board members and senior
management. A longer-term view looked at the relationship
between the delivery of the Group strategy and objectives
and the skills needed on the Board now and in the future.
Gill Rider retired from her role on the Board at the conclusion of
the AGM on 24 May 2024. Graham Allan took over the role as
Chair of the Remuneration Committee, having been a member
since 2017.
Kawal Preet was appointed a member of the Remuneration
Committee and Apurvi Sheth joined the Audit Committee with
effect from the same date. These changes were in line with the
succession planning that had been considered, and announced,
at the end of 2023.
Board effectiveness and training
During the year the Chair instructed Gould Consulting to carry
out an externally facilitated performance review of the Board
and its Committees. The process and findings are outlined on
pages 2.79-2.80.
The review concluded that the Board, each Committee and each
Director continue to perform effectively and contribute to the
long-term sustainable success of Intertek. The feedback from
the Board performance review is considered when determining
the key skills required for new Directors on the Board for
the future.
The review also confirmed that the Committee continues to be
able and effective in discharging its duties in accordance with
its Terms of Reference and the requirements of the Code.
Independence, time commitments and reappointments
Based on its assessment for 2024, the Committee is satisfied
that, throughout the year, all non-executive directors remained
independent in character and judgement in line with Provision 10
of the Code.
Intertek Group plc
Annual Report & Accounts 2024
2.85
Nomination Committee Report Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
appointments, in particular Jez Maiden’s role as Interim Chair of
Travis Perkins plc (which has now ended), the Committee were
satisfied that they would have sufficient time to commit to their
role with Intertek. Fuller details of any conflicts of interest can
be found on page 2.71.
Prior to joining the Board, Steve Mogford disclosed his
current commitments and the time commitment involved
and the Board was satisfied that he could provide sufficient
time to discharge his duties as a Director of Intertek.
With the support of the Board, Steve Mogford is standing
for initial election by shareholders, with all other Directors
standing for re-election at the AGM in May 2025.
In recommending the Directors for election and re-election
at the AGM, the Committee has reviewed the performance
of each Non-Executive Director and their ability to continue
meeting the time commitments required, taking into
consideration individual capabilities, skills and experiences and
any potential conflicts of interest that have been disclosed.
BIOGRAPHIES FOR ALL THE DIRECTORS
ARE AVAILABLE ON PAGES 2.66-2.68
Diversity, equity and inclusion
We believe that diversity at Board level sets the tone for
diversity throughout the business. We promote diversity in the
broadest sense, not just gender or ethnicity but also culture,
skills, background, regional and industry experience and other
qualities to truly reflect the diverse nature of our business.
The Nomination Committee monitors our talent pipeline to
ensure we have a diverse pool of talent being developed at
all levels. Maintaining a diverse workforce is as important as
diverse recruitment and we continue to assess and promote this.
Intertek's Inclusion & Diversity Policy eliminates discrimination
to ensure that employees are treated fairly and feel
respected and included in the workplace, which is vital
as our people are core to the delivery of the best service
to customers and driving the strategy of Intertek.
Our policy on Board diversity, which is available on our website
and applicable to the Board and its Committees, strongly supports
the principle of diversity and continues to be mindful of the
recommendations of the FTSE Women Leaders and Parker Review.
As at 31 December 2024, the Board comprised 36% female
directors, following Gill Rider’s departure from the Board,
and three members of the Board have an ethnic minority
background. The Committee is aware that the Listing rules
require female representation in at least one of the four
senior positions, which are currently held by male directors.
As part of the Board succession planning over the coming
18 months, the Committee continues to monitor the overall
inclusion and diversity of Intertek’s leadership at Board
and senior management level, to ensure the broadest
range of leaders are considered for new appointments.
Board and Group Executive Committee Diversity
1
Number of
Board members
As at 31 December
Percentage of
the Board
Number of senior
positions on the
Board, CEO, CFO,
SID and Chair
Number in Group
Executive Committee
As at 31 October
Percentage of Group
Executive Committee
Number of direct
report to the
Exec Committee
As at 31 December
2
Percentage of direct
reports to the
Executive Committee
Gender 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Male 7 7 64% 58% 4 4 13 13 72% 72% 169 168 74% 77%
Female 4 5 36% 42% – – 5 5 28% 28% 60 51 26% 23%
Ethnicity
2
White British or other White 8 9 73% 75% 4 4 12 12 67% 67% 80 n/a 35% n/a
Mixed/Multiple Ethnic Groups – – – – – – – – – – 5 n/a 2% n/a
Asian/Asian British 3 3 27% 25% – – 5 5 28% 28% 25 n/a 11% n/a
Black/African/Caribbean/Black British – – – – – – – – – – 2 n/a 1% n/a
Other ethnic group, including Arab – – – – – – 1 1 5% 5% 5 n/a 2% n/a
Prefer not to say – – – – – – – – – – 1 n/a 1% n/a
Do not know – – – – – – – – – – 111 n/a 48% n/a
1. Data is collected as at 31 December and 31 October each year as indicated to aid reporting in line with the FTSE Women Leaders and Parker Review.
2. The definition of ethnicity follows the guidance provided by the Parker Review for UK companies. However, our diversity extends globally, reflecting a much broader range of ethnic backgrounds through our international presence. In 2024, data relating to the ethnicity of the direct
reports to the Group Executive Committee was collected through a self-ID questionnaire. Where the questionnaire was not completed the data was marked as 'Do not know'.
2.86
Intertek Group plc
Annual Report & Accounts 2024
3: Financial Report2: Sustainability Report1: Strategic Report
Audit Committee Report
Dear shareholder,
I am pleased to present this report, which
is intended to provide shareholders with
insights into the work we have done as a
Committee to provide assurance on the
integrity of the Annual Report & Accounts
for the year ended 31 December 2024,
together with the effectiveness of the
Group’s risk management and internal
controls framework in a year of continued
market volatility.
We advised the Board that we had reviewed the process to
ensure the 2024 Annual Report & Accounts are fair, balanced
and understandable and provide the necessary information
for our shareholders and stakeholders to assess the Group’s
position, performance, business model and strategy. The
process of review is described in greater detail on page 2.91.
The Committee uses its collective expertise, with input from
the External Auditor, to understand, and where appropriate,
to challenge the approach and judgements made by
management in the treatment of financial matters and
the resulting disclosures within the financial statements.
The External Auditor performs its statutory audit, by auditing
the accounting records of the Company against agreed
accounting practices, relevant laws and regulations. PwC’s
audit report can be found on pages 3.57-3.63 in Report 3.
The Committee has also continued to monitor the heightened
scrutiny on the external reporting of ESG and, more specifically,
sustainability and the effects of climate change on companies.
As part of the Task Force on Climate-related Financial
The Committee's primary
focus centred on the
accuracy of the Group's
financial reporting,
together with the ongoing
improvements in internal
control activities, risk and
compliance matters."
Jean-Michel Valette
Chair of the Audit Committee
The Committee supports the Board by setting, reviewing and
monitoring Intertek’s policies and procedures to ensure the
independence and effectiveness of the Internal and External
Audit functions, the integrity of financial and narrative
reporting, the Company’s internal control framework and the
adequacy of the processes that enable the Board to assess
the level of principal risks the Company is prepared to take to
achieve its long-term strategic goals.
The Committee met four times in 2024. As Committee Chair,
I meet with the PricewaterhouseCoopers LLP (‘PwC’) lead
audit partner, the Group Audit Director and management as
appropriate ahead of meetings to discuss specific items of focus
to report to the Committee. After each meeting, I also report
back to the Board on the Committee’s activities, the main issues
discussed and matters of particular relevance.
Throughout the year, the Committee also ensured that separate
meetings with the CFO, Group Audit Director and the external
auditor took place (the latter without management present) in
order to provide an open forum for issues to be raised, and I also
held separate meetings, on behalf of the Committee, with senior
management within Intertek and with PwC on a regular basis.
During 2024, the Committee’s primary focus centered on the
accuracy of the Group’s financial reporting, having applied
additional focus to assess the risk management and the
framework of internal financial controls, together with
the additional work carried out to support the long-term
viability statement.
Intertek Group plc
Annual Report & Accounts 2024
2.87
Audit Committee Report Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Membership and attendance
During 2024, the composition of the Committee met the
requirements of the Code. Gill Rider, having served nine years
on the Board, stepped down as a director following the
conclusion of the 2024 AGM. Following the vacancy left by
Gill Rider, the Nomination Committee reviewed the membership
of all of the Committees and recommended that Apurvi Sheth
join the Committee. More detail on succession planning is
set out on page 2.84 of the Nomination Committee report.
Apurvi Sheth became a member of the Committee with
effect from 24 May 2024.
The Board is satisfied that the Committee members bring a wide
range of financial experience across various industries and all
members have competence relevant to the sectors in which
Intertek operates, with recent and relevant financial experience.
An overview of the background, knowledge and experience of
the Committee Chair and each of the Committee members can
be found on pages 2.66-2.68 and in the Notice of the AGM.
The Committee met four times during the year. The Group
Company Secretary, the audit partner and members of his team
attended all meetings held during the year. At the invitation of
the Committee, the Chair, CEO, CFO, Group Financial Controller
and the Group Audit Director also attended meetings. Other
members of senior management were invited to attend the
meetings as necessary.
Committee members Member since
Meetings
attended
1
Jean-Michel Valette (Chair) July 2017 4/4
Lynda Clarizio July 2021 4/4
Jez Maiden May 2022 4/4
Gill Rider February 2021
until May 2024
2/2
Apurvi Sheth May 2024 2/2
1. Number of meetings attended out of the number of meetings eligible to attend in
the year.
Performance review
The performance review was conducted as part of the
external Board performance review for 2024. This included
a comprehensive questionnaire that covered various aspects
of the Committee's role and responsibilities. More details on
the process of the review can be found on page 2.79.
The results from the performance review were discussed by the
Committee and showed that it operated effectively during the
year. The Committee receives high-quality meeting materials
and the diverse backgrounds and skills among the members, and
relevant subject matter expertise and business acumen enable
members to discharge their duties in accordance with the Terms
of Reference and the requirements of the Code.
Disclosures compliance, we have reviewed and approved
management’s assessment of the physical and transitional
environmental risks and opportunities to the Group.
This year, an externally facilitated Board and Committee
performance review took place. I am pleased that it concluded
that we operate effectively and that the Board takes assurance
from the quality of our work.
PwC has been operating as the Group’s external auditors
since 2016. The Committee intends to carry out a thorough
audit tender during 2025 and preparations for the tender are
underway. We invite all interested shareholders to participate in
consultations concerning the tender. Your feedback is valuable
and will guide the Committee’s deliberations and decisions.
Please contact me through the Group Company Secretary.
As Chair of the Committee, I shall make myself available to
shareholders, especially at the AGM, to facilitate the answering
of any questions that they may have around the scope of the
Committee’s responsibilities as a whole, the Committee’s
activities throughout the year, and any other questions that
may arise from this report.
Jean-Michel Valette
Chair of the Audit Committee
Internal audit:
• Internal audits
coverage and analysis
External audit:
• PwC report to
the Committee
• PwC audit plan
and strategy
• Intertek assessment
of PwC effectiveness
Financial reporting:
• Half year results
and accounting
judgements
• Going concern
assessment
• Internal controls over
financial reporting
Internal audit:
• Internal audits
coverage and analysis
• Update on Global
Internal Audit
Standards
• Provisional Internal
Audit plan for 2025
External audit:
• PwC half year report
• Independence
confirmation
• Update on non-audit
services
May
July
Financial reporting:
• Update on significant
accounting policies
• Group Risk and
Viability Statement
process and basis of
preparation for YE
31 December 2024
• Core Mandatory Control
and Assurance Map
update
• Review of reporting
against 'Audit
Committees and
External Audit:
Minimum Standard'
Internal audit:
• Internal audit plan for
2025 and Internal
Audit Charter
• Internal audits
coverage and analysis
• Internal Assessment
of Internal Audit
effectiveness
External audit:
• PwC report to
the Committee
• Audit and non-audit
fees update
• Approved external
audit tender plan
December
Financial reporting:
• Full year results
and accounting
judgements
• Annual Report
& Accounts
• Going concern
assessment
• Viability statement
• Climate Change/TCFD
reporting
• UK Statutory
Audit exemption
and guarantee
Internal audit:
• Internal audit report
• Internal audits
coverage and analysis
External audit:
• PwC report to
the Committee
• Audit and non-audit
fees
• Independence and
reappointment
February
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Annual Report & Accounts 2024
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Committee's activities during 2024
Intertek Group plc
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Committee responsibilities and how we met
them in the year
The Committee has specific responsibilities delegated to it
by the Board. In line with the FRC’s recommendation, the
Committee has sought to apply the Audit Committees and the
External Audit: Minimum Standard (’Minimum Standard’) for the
year to 31 December 2024. The Committee reviews the Terms
of Reference annually; this year there was a particular focus
on ensuring the changes to the Code and introduction of the
Minimum Standard were incorporated. The revised Terms of
Reference of the Committee can be found at intertek.com.
The business of the Committee is linked to the Group’s financial
calendar of events and the timetable for the annual audit.
Compliance with the Minimum Standard
The Committee confirms that for the year ended 31 December
2024, it has complied with the Audit Committees and the
External Audit: Minimum Standard.
The activities carried out by the Committee in meeting the
requirements of the Minimum Standard are detailed on the
following pages of this Audit Committee report.
The Audit Committee will follow the tendering provisions of
the Minimum Standard when it undertakes the audit tender.
Financial reporting
A principal responsibility of the Committee is to monitor the
integrity of the financial statements of the Group, having regard
to the matters communicated to us by the external auditor, and
to measure the performance of the Group against the financial
goals of our strategy. This is key for our shareholders and other
stakeholders in order for them to understand the financial
strength of the business.
In order to fulfil this responsibility, we reviewed the full year
and half year results, as well as any formal announcements
relating to the Group’s financial performance, prior to release,
and recommended their approval to the Board.
Going concern and viability statement
We received a detailed report from management with the approach
taken to the going concern statement and viability statement
which included the projected funding requirements, the facilities
available to the Group, the sensitivity models used including an
illustrative severe yet plausible downside scenario of a reduction
of 30% to the base profit forecasts and the corresponding impact
to cash flow forecasts in both 2025 and 2026, and the review of
principal risks and uncertainties undertaken.
The Committee reviewed the paper and challenged the
assumptions with management and after making diligent
enquiries, the Directors have a reasonable expectation, based
upon current financial projections and bank facilities available,
that the Group has adequate resources to continue in operation
and meet its liabilities as they fall due over the period. This
conclusion is based on a review and an assessment of the levels
of facilities expected to be available to the Group, based on
levels of cash held, Group Treasury funding projections, and the
Group’s financial projections for a period to 31 December 2026.
The undrawn headroom on the Group’s committed borrowing
facilities at 31 December 2024 was £655.7m (2023: £664.3m).
The maturity of our borrowing facilities is disclosed in note 14
of the financial statements in Report 3, with repayment of two
senior notes totalling US$120m required by 31 December 2025.
The Group Treasury funding projections forecast these to be
repaid using existing facilities.
Following the recommendation of the Committee, the Board
continues to consider it appropriate to adopt the going concern
basis in preparing the Group’s financial statements (as disclosed
in note 1 of the financial statements on page 3.07 in Report 3)
and has approved the long-term viability statement as set out
on pages 1.59 and 1.60 in Report 1.
External audit – appointment of auditor
The appointment, review and relationship with the external audit
firm and the annual review of the effectiveness of the external
audit is a responsibility that is delegated to the Committee.
A transparent and independent audit tender process was
completed in 2015 and PwC have been the Group’s auditors
since May 2016. Graham Parsons serves as the PwC audit
partner responsible for the Group audit, a role he assumed in
May 2021. The Group is next required to put its external audit
process out to tender for the financial year ending 31 December
2026. More information on the external audit tender can be
found on pages 2.87 and 2.91.
The Committee monitors and reviews the independence and
objectivity of the external auditor and reviews the effectiveness
of the external audit process. The Committee also considers and
makes recommendations to the Board, to be put to shareholders
for approval at the AGM, in relation to the appointment,
reappointment and removal of the Group’s external auditor.
It ensures that at least once every ten years the audit services
contract is put out to tender to enable us to compare the quality
and effectiveness of the services provided by the incumbent
auditor with those of other audit firms.
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Annual Report & Accounts 2024
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The independence of the external auditor is critical for the
integrity of the audit. The Committee sought confirmation
from the auditor that they are fully independent from the
Group’s management, are free from conflicts of interest and
have assessed the nature and level of non-audit fees paid to
PwC and have determined that PwC are fully independent.
During the year, the Forvis Mazars LLP integrated partnership
(‘Forvis Mazars') were re-appointed to audit approximately
4.1% of the Group’s in-scope components, measured as a
proportion of revenue.
2024 Audit plan
During the year the Committee evaluated PwC’s Group audit
scope for 2024. The year end audit plan was based on agreed
objectives, with the audit focused on areas identified as
representing significant risk and requiring judgement. In order
to manage costs and ensure that the Group maintained audit
relationships outside the ‘Big 4’, Forvis Mazars continued to
undertake some of the Group audit work under the direction
of PwC. Forvis Mazars is principally responsible for the statutory
audit of certain non-material group subsidiaries, but also
undertook specific audit procedures for certain component
entities that were within PwC’s Group audit scope for 2024.
Forvis Mazars reported independently to PwC on this work
and the work was directed, supervised and reviewed by PwC.
UK Group Audit exemption
For the year ended 31 December 2024, a number of the Group’s
UK subsidiaries are entitled to exemptions from audit under
section 479A of the Companies Act 2006. We have identified
which subsidiaries intend to utilise the audit exemption in the
table on pages 3.55 and 3.56 in Report 3.
Intertek Group plc is the ultimate parent undertaking of these
companies and has unanimously agreed to the granting of a
guarantee in accordance with section 479C of the Companies
Act 2006.
External auditor effectiveness and quality
The Committee conducts an annual review to assess the
independence and objectivity of the external auditor and the
effectiveness of the audit as part of the year end process.
This process is conducted in three parts as outlined below:
1. PwC presents to the Committee its approach to safeguarding
and maintaining the quality and independence of their audit
of the Group and their auditors, including addressing any risks
they face in maintaining audit quality across their network.
This is an extensive report covering all aspects of the audit
from the scope of work, reporting the outcomes of findings,
the key audit matters, fraud and investigations, intercompany
transactions, treasury, key risks, going concern and the IT
environment. Each aspect is reviewed and debated with the
auditors. The Committee was satisfied that the audit was
extensive, sufficiently challenging and robust.
2. The views of management and the Directors on PwC’s service,
level of challenge, and application of professional judgement
are obtained via a questionnaire, and subsequent follow up as
necessary. The feedback is then presented to the Committee.
3. The key findings and recommendations from both processes,
together with any form of appropriate external evaluation
such as feedback from shareholders and the FRC Audit Quality
Inspection Report then form the basis of the assessment of
PwC’s effectiveness, together with the Committee’s
experience of dealing with PwC during the year.
The responses to the annual appraisal questionnaire were
collated and incorporated into the planning process for the
following areas: Planning, Fieldwork and Reporting.
Following this review, the Committee considered in detail
the feedback received from a selection of Intertek personnel,
including Committee members, Group functions, regional finance
teams and country finance managers. The feedback scores from
the survey indicated a small increase in the Planning category,
a decrease in the Reporting category, and no change in the
Fieldwork category compared to the previous year. The overall
perception of PwC’s effectiveness remains positive, with 96%
of respondents either agreeing or mostly agreeing with the
statements outlined in the questionnaire, consistent with the
prior year (2023: 96%).
Overall, a robust collaborative approach persists, ensuring
continuous communication and engagement throughout the
year, with continued opportunities to further integrate IT and
other workstreams. The audit findings and the areas to improve
were discussed at the May 2024 Committee meeting and PwC
effectively addressed questions and challenges provided by
Committee members.
The Committee concluded, at the meeting held in May 2024, that
PwC remained independent and that, overall, PwC had completed
a robust and fit-for-purpose audit process across the Group with
a satisfactory level of resources.
The effectiveness of the 2024 audit of the Group will be
reviewed by the Committee in May 2025.
Audit and non-audit fees
The Terms of Reference of the Committee include ensuring the
continued independence and objectivity of the Group’s external
auditors. This is achieved through:
• the annual approval of the policy for the engagement of
external auditors for audit and non-audit services;
• setting limits for non-audit spend for the external auditors;
• an annual review of the Group Auditor’s performance in
conducting the external audit (presented at the May 2024
Audit Committee meeting);
• a five-year maximum tenure period for the external audit
partner; and
• where appropriate, audit tendering and rotation.
The Group has set out a policy on the provision of non-audit
work by the external auditor consistent with the 2024 Ethical
Standard issued by the FRC, and it is designed to ensure
that the provision of such services does not create a threat
or compromise the external auditor’s independence and
objectivity. The policy outlines in detail the services that the
external auditor cannot provide including tax services and
services that involve playing any part in the management
or decision making of the audited entity amongst others. It
identifies certain types of engagement that the external
auditor shall, subject to the audit cap, be permitted to
undertake, including with respect to audit-related services
such as reporting required by law or regulation to be provided
by an auditor, reviewing interim financial information, reporting
Intertek Group plc
Annual Report & Accounts 2024
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on regulatory returns, reporting to a regulator on client
assets and reporting on government grants. With respect
to non-audit services, the policy outlines the services that
can be provided by the external auditor as required by law
or regulation and are exempt from the non-audit fee cap.
In the event that an engagement for non-audit services arises,
the policy is designed to ensure that the external auditor is only
appointed where it is considered to be the most suitable supplier
of the service and the necessary prior approvals have been given
in accordance with the policy.
The Committee annually reviews and re-approves the
framework of permitted non-audit services as set out in the
policy, taking into account any changes in legislation and best
practice. The Committee reviewed the policy in 2024 and no
major changes were made. PwC also provides an update on
the spend for non-audit services twice a year. For 2024, the
Committee pre-approved a total non-audit spend of £234,000
(2023: £234,000).
As per the policy, all non-audit services must be approved by the
CFO, and in the event that the pre-approved limit is exceeded,
the Committee Chair and the CFO have to approve an increase to
the pre-approved limit. In 2024 this process operated effectively.
A summary of the fees paid for non-audit services is set out
below. The majority of the non-audit fees related to a review
by PwC of the Interim Results announcement, which is deemed
a non-audit service. This was considered appropriate as PwC
also audit the full year results.
2024
£m
2023
£m
Total non-audit fees 0.2 0.2
– audit-related services 0.2 0.2
– tax services – –
– other non-audit services – –
Audit fee 5.9 5.8
% of audit fee 3% 3%
Further information is contained in note 4 to the financial
statements on page 3.12 in Report 3.
Statement of compliance with the Competition
and Markets Authority (‘CMA’) Order
The Committee considered that the Company has complied
with the Statutory Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive Tender Processes
and Audit Committee Responsibilities) Order 2014 published by
the CMA on 26 September 2014 ('CMA Order 2014'), including
with respect to the Audit Committee’s responsibilities for agreeing
the audit scope and fees and authorising non-audit services.
External audit tender
The Group’s last competitive external audit tender was carried
out in 2015. The Audit Committees and the External Audit:
Minimum Standard, and the CMA Order 2014, require that a tender
take place at least every 10 years. During the year, the Committee
reviewed the future external audit requirements of the Company
and the Group, and approved the initiation of a formal audit tender
process to be undertaken during 2025 for the 31 December 2026
year end audit; concluding that this would be in the best interests
of the Company's members as it would reinforce robust corporate
governance and ensure continued transparency and confidence
in the financial reporting process. Further details on the process
and its outcome will be announced in due course, and a
recommendation will be made to shareholders at the 2026 AGM.
Internal audit
The Group has an Internal Audit function, whose activities are
overseen by the Committee, which provides assurance over
compliance with the Group’s framework of financial Core
Mandatory Controls ('CMCs').
The Committee monitors and reviews the effectiveness and
resources of the Internal Audit function throughout the year. To this
end, the Committee approves the Internal Audit programme and
charter for the year, which this year included the development and
inclusion of a strategy for the Internal Audit function that supports
the strategic objectives and success of the organisation as a result
of the introduction of Global Internal Audit Standards 2024.
The Committee reviews the internal audit reports and
monitors management’s responsiveness to the findings and
recommendations of the Group Audit Director, as well as approving
the appointment and removal of the Group Audit Director as
appropriate. When reviewing the summary findings, management
responses, progress against audit recommended improvement
plans and average compliance scores, the Committee was satisfied
that the Internal Audit function continued to work effectively and
focus its activities in the areas with the greatest need.
Internal audit effectiveness
The Committee assesses and reviews the independence and
effectiveness of Internal Audit using a variety of inputs.
An independent review of effectiveness was undertaken by
Grant Thornton in 2023, with the next independent review
planned in 2026. The review concluded that the Internal Audit
function is valued and their role in defining expectations and
improving compliance with the financial CMCs is widely
acknowledged.
They further concluded that the function exhibits good practices,
in particular in the continuous improvement agenda of the team.
During the year, Internal Audit was assessed using feedback
received through a questionnaire to senior stakeholders across
the Company, including the Committee, Group Executives and
functions.
Responses were consistently favourable, and the external
auditor also provided informal and supportive feedback.
The Committee satisfied itself that the quality, experience
and expertise of the function is appropriate for the business.
Fair, balanced and understandable
In February 2025, the Committee reviewed the 2024 Annual
Report & Accounts and concluded that, taken as a whole, it was
fair, balanced and understandable and provided the information
necessary for shareholders to assess the Group’s position,
performance, business model and strategy, and the potential
impact on forward-looking assumptions supporting going
concern and viability assessments. In its assessment, it
considered that the following had been carried out and
this formed the basis of its recommendation to the Board:
• Pre-year end discussions held with the external auditor
in advance of the year end reporting process.
• Pre-year end input provided by the senior management team
and from corporate functions.
• A verification process dealing with the factual content of the
reports to ensure accuracy and consistency.
• Comprehensive review by the senior management team
to ensure overall consistency and balance.
• Review conducted by external advisers and the external
auditor on best practice regarding the content and structure
of the Annual Report & Accounts.
Intertek Group plc
Annual Report & Accounts 2024
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Internal control and risk management systems
The Board ultimately reviews the Group’s risks, controls
and compliance and mitigation actions. The Committee is
responsible for reviewing the adequacy and effectiveness
of that risk framework. We have an integrated approach
to obtaining assurance that our risks are being
appropriately and effectively identified and addressed.
Further information on how Intertek has implemented
an end-to-end integrated approach to risk, control and
compliance is outlined on pages 1.57-1.59 in Report 1.
‘Doing Business the Right Way’ is at the heart of what we do and
continues to be a key enabler of our AAA strategy. The Intertek
CMCs are an integral part of ‘Doing Business the Right Way’,
and provide the mechanism by which we define, monitor and
achieve consistently high standards in our control environment
throughout the whole organisation. At the end of the year, the
Committee undertook a review of the effectiveness of the CMCs
and Assurance Map to ensure that they continued to be fit for
purpose. Where non-compliances with the current CMCs were
identified in the 2024 internal audit review process, remediation
plans have been put in place. For 2025, the effectiveness of
the process was reviewed and there were additional controls
introduced based on risks and issues highlighted by the Group’s
Internal Audit and Compliance assurance programmes and
based on other risk indicator data and outputs including the
reporting, review and corrective actions of Hotline reports.
In order to provide assurance that the Intertek controls and
policy framework is being adhered to, a self-assessment
exercise is undertaken across the Group’s global operations.
This exercise is reviewed and refreshed each year to align
with the updated control framework and to support the
continued development of the Group’s control environment.
Relevant operational and functional leaders for each site are
required to complete a year end compliance certification, in
the form of an online questionnaire, to confirm that the right
management processes and controls are in place and are
operationally effective. The compliance certification covers
all CMC areas: Compliance, Sales, Operations, Marketing,
Communications, our use of intermediaries, IT, Finance,
Sustainability and People management. Where corrective
actions are needed, the leaders are required to provide an outline
and a confirmed timeline. The results are used as an input for the
Internal Audit and Compliance Audit assurance work for 2025.
Self-assessment responses are consolidated for review
at a divisional, regional and functional level, with further
review and sign-off of the consolidated self-assessments
in the corresponding divisional, regional and functional risk
committees, before a final consolidated CEO and CFO review.
A final summary assessment is provided to the Committee.
The self-assessment exercise has been expanded during
the year to ensure global coverage and to reflect Intertek’s
operational and financial structure, and in order to enhance the
alignment of the self-assessment to the assurance process.
We annually review and approve the statements to be included
in the Annual Report & Accounts to ensure they remain relevant
to the Group's strategy and operations as well as complying
with any regulatory requirements. A detailed verification
programme also provides assurance to the Committee and
the Board when checking that all the statements made
in the Annual Report & Accounts are accurate. Intertek’s
Manual of Accounting Policies and Procedures is issued to all
finance staff giving instructions and guidance on all aspects
of accounting and reporting that apply to the Group.
The Committee can confirm that it reviewed the Group’s
internal controls and risk management systems and
concluded that there was an effective control environment
in place across the Group during 2024, and up to the date
on which these financial statements were approved. No
significant failings or weaknesses were identified.
Whistleblowing and fraud
We reviewed the adequacy and security of the Group’s
arrangements for its employees and contractors to raise
concerns, in confidence, about possible wrongdoing in financial
reporting or other matters ensuring that these arrangements
allow proportionate and independent investigation of such
matters and appropriate follow-up action.
The whistleblowing hotline is well-publicised and can be used
by all employees, contractors and others representing Intertek,
or by third parties such as our customers or people who are
affected by our operations. This whistleblowing hotline is run
by an independent, external provider. It is multi-language and
is accessible by phone and by email 24 hours a day. Further
information on the whistleblowing hotline can be found on
page 2.58.
In addition, we review the Group’s systems and procedures for
detecting fraud and the prevention of bribery and receive regular
reports on non-compliance and keep under review the adequacy
and effectiveness of the Group Compliance function.
Audit Committee Report Continued
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Significant issues
considered by the
Committee
In preparation for each year end, the
Committee reviews the significant
accounting policies, estimates and
judgements to be applied in the financial
statements and discusses their application
with management. An explanation of the
application of the Group’s significant
accounting policies is set out in note 1
to the financial statements on pages
3.07-3.08 in Report 3. The external
auditor also considers the appropriateness
of these assessments as part of the
external audit. The Committee’s views,
comments and their insights are used to
inform the processes and approach taken
by management in all areas of significant
risk, thus facilitating a Group-wide
consistent and prudent approach.
In accordance with the Code, the
external auditor prepares a report for
the Committee on both the half year
and full year results, which summarises
the approach to key risks in the external
audit and highlights any issues arising out
of their work on those risks, or any other
work undertaken on the audit.
Following reviews and discussions
throughout the year of all the relevant
papers presented and after considered
discussion with management and the
external auditors, the Committee had an
understanding of the business rationale
for transactions and how they were
being recorded and disclosed in the
financial statements, and therefore
agreed that the estimates and areas of
judgement exercised by management
were appropriate.
Claims
From time to time, the Group is involved
in various claims and lawsuits incidental
to the ordinary course of business.
The Committee considered the claims
provision which reflects the estimates
of amounts payable in connection with
identified claims from customers, former
employees and others. The Committee
noted that once claims have been
notified, the finance teams liaise with
the business to determine whether a
provision is required, based on IAS 37
Provisions, Contingent liabilities and
Contingent assets (‘IAS 37’).
The level of provision is subsequently
reviewed on a regular basis with the
Group General Counsel, taking into
account the advice of external legal
counsel. The Committee, following
assurance from management and review
of the position by the external auditors,
considered and agreed that the claims
provision, and associated disclosures,
were appropriate given the size and
status of claims reported.
Taxation
The determination of profits subject to
tax is calculated according to complex
laws and regulations, the interpretation
and application of which can be
uncertain. In addition, deferred tax
assets and liabilities require judgement
in determining the amounts to be
recognised, with consideration given to
the timing and level of future taxable
income. The main areas of judgement
in the Group tax calculation are the
expected central tax provisions for the
full year, including provisions related to
transfer pricing risk, and the recognition
of the UK deferred tax asset.
Twice a year, the Committee receives a
report from management providing an
evaluation of existing risks and tax
provisions which is reviewed by the
Committee. The Committee also
considered reports presented by the
external auditors before determining
that the levels of tax provisioning were
appropriate.
Revenue Recognition
IFRS 15 Revenue from Contracts
with Customers requires an entity to
recognise revenue in a way that shows
the transfer of goods/services promised
to customers is an amount that reflects
the expected consideration in return for
transferring control of those goods or
services to the customer.
The Committee reviewed the work
completed regarding revenue and, taking
into account the views of the external
auditors, agreed that the treatment
was appropriate.
Acquisitions and fair
value accounting
The Committee was advised of the
approach taken to the acquisition made
in 2024 where the related fair value was
recognised on a provisional basis. Such
provisional amount is subsequently
finalised within the 12-month
measurement period, as permitted by
IFRS 3. Details of the acquisition in 2024
are set out in note 10 on page 3.23 in
Report 3.
The Committee, following assurance
from management and review of the
position by the external auditors, was
satisfied that the treatment was
appropriate.
Impairment of Goodwill
and other acquired
intangible assets
The Group is required to make
judgements to estimate the fair value
of assets and liabilities acquired; in
particular, the amounts attributed to
intangible assets such as titles, brands,
acquired customer lists and associated
customer relationships. These
judgements impact the amount of
goodwill recognised on acquisitions. As
outlined in note 9 in Report 3, the Group
has £1,365.9m of Goodwill which has
arisen on acquisitions. An impairment
assessment is required at least annually
in respect of this amount.
The Committee noted the update as at
the year end and, taking into account the
acquisitions made during the year, and
after seeking views from the external
auditors, agreed the disclosure in note 9
on pages 3.20-3.22 in Report 3.
Accounts receivable
and accrued income
The Group takes a prudent approach to
provisioning of accounts receivable and
accrued income balances in line with IFRS
9 Financial Instruments.
The Committee noted the update as at
the year end and, considering the views
of the external auditors, agreed that the
Group’s provision was appropriate.
Consideration of
Climate Change
Mandatory TCFD reporting has driven
significant momentum regarding climate
change related disclosures. The Group
has set out its consideration of climate
change in respect of an impact on the
financial reporting judgements and
estimates arising from our assessment of
climate change on the Group as a whole.
The Committee reviewed the approach
taken to consider the impact of climate
change and the disclosures on pages
1.65-1.73 in Report 1, and taking into
account the feedback from the external
auditors agreed the approach taken and
the related disclosures.
Pensions
The Group operates a number of
post-employment plans. In most
locations, these are defined contribution
arrangements. However, there are
material defined benefit schemes in
the United Kingdom and Switzerland.
Having considered advice from external
actuaries and assumptions used by
companies with comparator plans, the
Committee agreed that the assumptions
used to calculate the income statement
and balance sheet assets and liabilities
for post-employment plans were
appropriate (see note 16 on pages
3.35-3.38 in Report 3).
During the year, the Committee reviewed and considered the following estimates
and areas of judgement to be exercised in the application of the accounting policies:
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Remuneration Committee Report
Dear shareholder,
I would like first to acknowledge my
predecessor, Gill Rider, for her work as Chair
and her support throughout the handover of
responsibilities. I would also like to thank my
fellow Remuneration Committee members
for their insights and valued contributions
during the past year. I am delighted to
present our Remuneration Report for
the year ended 31 December 2024.
In 2023 we announced our AAA differentiated growth
strategy to further strengthen performance, capitalising on
our strengths and seizing the higher demand for our services.
Our AAA strategy is raising the bar for the organisation as we
strive to be the best every day and deliver superior value for
all stakeholders, customers, employees, communities and, of
course, our shareholders. Having redefined our industry from the
traditional Testing, Inspection and Certification (TIC) services
into Risk-based Quality Assurance offering industry leading
ATIC (Assurance) solutions, we plan to capitalise on this unique
advantage to strengthen performance for all.
The Remuneration Committee recognised that the AAA strategy
was likely to require a review of the existing remuneration
framework but felt it appropriate to delay that review until
after the change in Committee Chair. Accordingly, no material
changes were made in the 2024 Directors’ Remuneration Policy
(overwhelmingly approved by shareholders at the 2024 AGM
under the normal three-year cycle). Subsequently, as the new
Committee Chair, I have taken on the task of ensuring that
our remuneration strategy can appropriately support the
unprecedented level of returns the new strategy is targeting,
without losing the key elements that have historically driven
the strong results of the Company.
We firmly believe the Group can, by executing its recently
launched AAA growth strategy, achieve higher levels of
organic revenue growth and accelerate EPS growth.
Therefore, we seek to incentivise our teams to unleash the
full potential of the Group with an enhanced LTIP scheme which
targets double digit EPS growth every year (10.5%-14.5%).
This would make Intertek one of the highest quality cash
compounders in the world and will create AAA value for our
shareholders through the compounding effect of consistent
high quality revenue growth, margin accretion, strong cash
generation and superior ROIC.
We are targeting superior performance within the high quality
cash global compounders peer group. Based on the latest
disclosures across the FTSE 100, we will be one of only three
FTSE100 companies targeting 13% p.a.+ EPS growth and the
only one targeting over 14% p.a. growth.
2025 Directors’ Remuneration Policy – introduction
of Enhanced Awards under the LTIP to unlock AAA
value growth
i) Business context and the AAA value
growth opportunity
The Group has delivered impressive performance over the past
decade, executing its 5x5 differentiated growth strategy and
delivering total shareholder return ahead of its peers and the
FTSE 100. Over those 10 years, Intertek has performed strongly
on a range of metrics and has made significant strategic
progress.
In line with our AAA
strategy for growth, we
are increasing LTIP targets
to accelerate performance
and reward accordingly.”
Graham Allan
Chair of the Remuneration Committee
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Annual Report & Accounts 2024
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The leadership team have begun work on all fronts to bring this AAA growth strategy to life. The early impact
is demonstrated by the strong financial performance of the Group in 2024.
Financial performance metrics
1
FY24 FY23
YoY
(Actual rates)
YoY
(Constant rates)
Revenue £3,393.2m £3,328.7m 1.9% 6.6%
Operating profit £590.1m £551.1m 7.1% 13.0%
Operating margin 17.4% 16.6% 80bps 100bps
EPS 240.6p 223.0p 7.9 % 15.2%
ROIC 22.4% 20.5% 190bps 250bps
Free Cash Flow £408.8m £378.4m 8.0%
Dividend 156.5p 111.7p 40.1%
1. On adjusted basis
ii) Principles underlying the remuneration policy review
The following principles underpin the review that was undertaken of the remuneration policy:
• The remuneration structure should incentivise senior executives to deliver the AAA growth strategy
in order to unlock significant value growth opportunity that will benefit shareholders.
• The reward framework should retain its current balance of metrics and management should not be
incentivised to deliver higher levels of earnings growth to the detriment of other key financial metrics, that
are fundamental to Intertek’s historic success, particularly Return on Invested Capital ('ROIC') and Free Cash
Flow ('FCF') generation.
• Any additional incentive should be straightforward to understand and should only deliver additional rewards
if higher levels of performance are achieved (i.e. a “more for more” principle). In particular, there should be no
additional rewards for delivering performance within the existing LTIP EPS target range.
• Any award vestings should be carefully considered in the context of the overall shareholder experience.
Financial metrics
Financial
performance
metrics
1
2014
2
2024
14-24
change
Revenue £2,093m £3,393.2m 62.1%
Operating profit £324.4m £590.1m 81.8%
Operating margin 15.5% 17.4% 190bps
Diluted earnings
per share 132.1p 240.6p 82.1%
Dividend 49.1p 156.5p 218.7%
Adjusted Cash
Generated from
Operations 403.7 789.2 95.5%
ROIC 16.3% 22.4% 610bps
1. On adjusted basis
2. 2014 metrics are on an IAS17 basis
• 147.5% TSR growth in absolute terms over the period
compared to FTSE 100 Index of 82.9%
• We have outperformed our peers and industry
benchmarks on a number of the metrics including Revenue
growth, Margin improvement, Cash generation and TSR
Key strategic advances
The leadership of the business has strengthened the
fundamentals of the business in terms of its overall
capability, talent, systems and processes.
Importantly, Intertek has redefined the industry from TIC
to ATIC, pioneering Risk based Quality Assurance to deliver
superior service which has positioned Intertek as the
absolute ATIC Quality leader.
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Annual Report & Accounts 2024
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iii) Incentive proposal to unlock AAA value growth
Under our LTIP, which has received strong support from
investors, executives currently receive Core Awards which are
subject to a combination of EPS, ROIC and FCF performance
measures. This is consistent with our proven value creation
approach based on the compounding effect year after year
of high-quality revenue growth, margin accretion, strong cash
generation and disciplined capital allocation in high growth,
high margin sectors to deliver a superior ROIC.
The Committee considered several alternative ways of unlocking
the growth objectives within the AAA strategy from a reward
perspective. These included different structures (including, but
not limited to, profit sharing/value creation plans and a widening
of Core Award targets), and alternative metrics (including, but
not limited to, total shareholder return metrics). On balance, the
Committee felt that the alternatives would either be overly
complicated, could not easily achieve our self-funding objective
or would not directly align with the out-turns expected from the
management team in unlocking the AAA strategy. Our proposal
is therefore to grant the current Core Awards alongside
Enhanced Awards under the current LTIP. The features of the
Core Awards will remain consistent with grants in prior years
and details of the Enhanced Awards are set out below.
The Enhanced Awards:
• will require delivery of demanding double digit EPS growth
targets that are in excess of the targets applicable to the
Core Awards. They are therefore designed to incentivise
accelerated performance and to reward management
only if enhanced performance is delivered;
• will be underpinned by FCF and ROIC ‘qualifiers’ to ensure
that there is a focus on quality growth; and
• are designed to be self-funding.
Consequently, the Committee believes the proposed Enhanced
Award arrangement to be wholly aligned with the interests of
our shareholders. The table on this page outlines the design of
the proposed Enhanced Awards and their interaction with the
existing Core Awards within the LTIP structure.
LTIP
CORE AWARDS
Unchanged from current Policy. Will be retained to drive the
core business
ENHANCED AWARDS
Subject to AGM approval. To incentivise and drive
unprecedented levels of growth through the AAA strategy
Participants
• A group of leaders including Executive Directors, the Group
Executive Committee and other key senior leaders
Participants
• A group of leaders including Executive Directors, the Group
Executive Committee and other key senior leaders
Core Award levels
• Capped at 300% of salary
• 2025 awards to Executive Directors: CEO 300% of salary;
CFO 200% of salary
Enhanced Award levels
• Capped at 300% of salary
• 2025 awards to Executive Directors: CEO 300%
of salary; CFO 300% of salary
Time period
• Awards granted annually in Policy period
• Three-year performance period
• Two year holding period
Time period
• Awards granted annually in Policy period
• Three-year performance period
• Two year holding period
Performance measures
1
Threshold
25% vests
Maximum
100% vests
EPS growth
(1/3 of award) 4% p.a. 10% p.a.
Cumulative FCF
(1/3 of award) £1,297m £1,377m
ROIC
(1/3 of award) 20.3% 24.3%
Performance measures
1
Threshold
15% vests
Maximum
100% vests
EPS growth (100% of
award – but any vesting is
subject to achievement of
BOTH ‘qualifiers’ below) 10.5% p.a. 14.5% p.a.
‘Qualifiers’
– Cumulative FCF £1,397m
(above maximum of
Core Award range)
– ROIC
22.3%
(midpoint of Core
Award range)
1. Irrespective of the formulaic outcomes, the Committee will consider whether any discretion should be applied to the vesting result to ensure that payouts are in keeping with
shareholder returns. The Remuneration Committee will also review in-flight LTIP targets in the event of “material” M&A to ensure they retain the originally proposed level of stretch.
Any share buyback will be excluded from the EPS calculation.
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Annual Report & Accounts 2024
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iv) How the proposal aligns with our principles
A summary of how this proposal aligns with the aforementioned principles is set out below.
CORE AWARDS Core Awards continue to be granted subject to a combination of metrics (EPS, ROIC and FCF)
Ensures management remain focused on delivery of fundamentals that have resulted in strong historic performance
EPS growth targets (4-10% CAGR) consistent with previous Core Awards under the LTIP
Target range remains challenging relative to Intertek’s historic long-term performance (average 6.2% CAGR 2014-24)
ENHANCED AWARDS Retains all 3 elements of the Core Awards – EPS / FCF / ROIC. No vesting unless demanding quantitative ‘qualifiers’ achieved for both ROIC and FCF
Challenging ROIC / FCF ‘qualifiers’ ensure management are not incentivised to pursue earnings growth from M&A activity unless it also delivers strong returns on capital
If both ‘qualifiers’ achieved, vesting of awards subject wholly to EPS
Simple structure which is aligned to AAA growth strategy
EPS growth targets (10.5-14.5% CAGR) entirely above Core Awards maximum (10% CAGR)
Ambitious targets consistent with “more for more” principle and outperformance goals of the AAA growth strategy. The resulting target EPS range is set to be one of
the most stretching target ranges across the FTSE 100. Based on the latest disclosures across the FTSE 100, we will be one of only three FTSE100 companies targeting
13% p.a.+ EPS growth and the only one targeting over 14% p.a. growth. This would represent a level of sustained performance that Intertek has not achieved at any point
in recent history.
2015-17 2016-18
2017-19
2018-20
2019-21
2020-22
2021-23
2022-24
0%
-2%
2%
4%
6%
8%
10%
12%
14%
16%
EPS target range relative to historic Intertek performance
1 Annualised fully diluted, adjusted EPS growth. Measured on a constant currency basis
Core Awards – target range Enhanced Awards – target range
EPS growth1 - CAGR
Intertek performance over period
CAGR 2014-2024
8.5%
9.7%
8.3%
-1.6%
0.8%
1.4%
12.5%
11.8%
4%
10%
10.5%
14.5%
Appropriateness of vesting outcomes will be subject to a discretionary framework at the end of the performance period
Ensures that all LTIP vestings are consistent with the shareholder experience. Full details of the framework that will be used by the Committee at the end of the performance
period when considering vestings is set out in the Implementation section of the Annual Report on Remuneration (page 2.114). For the avoidance of doubt, the Committee
does not have the discretion to disapply the qualifiers or any of the performance targets.
• Intertek has delivered growth within the proposed Enhanced
Award target range in only two of the last eight LTIP cycles
• The proposed Enhanced Award range is significantly above
long-term EPS growth performance (6.2% CAGR between
2014-2024)
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Annual Report & Accounts 2024
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v) Listening to our shareholders
Over recent months, we have undertaken extensive consultation
on this proposal and I would like to extend my sincere thanks to
all those who participated for sharing their time. Details of the
consultation process are outlined below, alongside a summary
of the significant changes that we have made to our proposal
to reflect feedback received.
Consultation process
STAGE 1
October 2024
Who was consulted?
Top 7 shareholders covering circa 33% of register
were consulted and all kindly provided feedback
on our initial proposals.
What changes were subsequently made to
the proposal?
Following Stage 1 of the consultation, to supplement
the proposed demanding EPS growth targets, ROIC
and FCF ‘qualifiers’ were added to provide shareholders
with reassurance that management are not
incentivised to chase earnings growth from M&A
unless it also delivers strong returns.
STAGE 3
December 2024
Who was consulted?
Top 40 shareholders covering circa 60% of register
and three major proxy bodies (ISS, Glass Lewis and The
Investment Association) were consulted on a revised
proposal. We received helpful feedback from a number
of shareholders and the three leading proxy bodies.
What changes were subsequently made to
the proposal?
As feedback in Stage 3 was broadly positive,
no further changes were made to the proposal.
Feedback from the proxy bodies emphasised the
importance of a clear explanation and rationale for the
proposal in this Remuneration Report. That feedback
has been reflected in this document.
STAGE 2
November 2024
Who was consulted?
Top 7 shareholders covering circa 33% of register
were consulted on a revised proposal and again all
kindly provided feedback.
What changes were subsequently made to
the proposal?
Following Stage 2 of the consultation:
• The maximum value of Enhanced Awards was reduced
to 300% of salary.
• The proposed population to receive Enhanced Awards
was widened.
• The ROIC and FCF ‘qualifiers’ were made more stretching.
• The vesting % for threshold performance on Enhanced
Awards was reduced to 15%.
• Clarity was added as to how “material” M&A and share
buybacks would be treated.
• A discretionary framework was developed to assess the
appropriateness of vesting outcomes, to ensure that any
payout is consistent with the investor experience.
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Annual Report & Accounts 2024
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We also received several questions during
consultation and, for transparency, set out
below our responses to some of the most
common themes.
Q
Your current Policy was only approved at the 2024 AGM.
Why are you seeking approval for another new Policy
so soon?
A
The Committee recognised that the AAA growth strategy was
likely to require a review of the existing remuneration framework
but felt it was appropriate to delay that review until after the
change in Remuneration Committee Chair. While we were
technically required to re-approve the policy at the 2024 AGM,
the comprehensive review of our remuneration strategy took
place following the AGM.
Q
Would it not be simpler to increase the size of existing
Core Awards rather than introducing a new concept of
Enhanced Awards?
A
Whilst sympathetic to this view, the Remuneration Committee’s
belief is that a “more for more” principle is of fundamental
importance to this proposal. This was a view shared by many
investors during consultation. This would not have been achieved
by simply increasing the size of Core Awards as additional reward
could then have been earned without necessarily delivering higher
levels of earnings performance. The Enhanced Awards, with clear
distinction from business-as-usual activities, are designed to be
self-funding and are specifically linked to delivery of differential
levels of growth. The Enhanced Award will only deliver additional
value for Executives if Intertek delivers both demanding EPS
growth targets (over and above those used for existing Core
Awards) and also satisfies stretching ROIC and FCF ‘qualifiers’.
By way of an example:
• If the Core Awards had simply been increased from 300% to
600% of salary, each element of the plan would have had
an independent weighting measured separately from each
other. If the weightings had been retained in line with the
current Core Awards (i.e., 1/3 for each element), each metric
would have been weighted at 200% of salary. In a scenario
where the Group delivered at the maximum of the EPS
range (i.e. 14.5% growth), but missed the ROIC and FCF
threshold metrics, the formulaic outcome would result in
a vesting of the full EPS element, i.e. 200% of salary.
• Under the proposed design, this would not be the case.
This is through the underlying construct where the EPS
element of Enhanced Awards would not “activate” unless
the ROIC and FCF qualifiers are achieved, which are set
at a level of stretch above the threshold of each of the
respective metrics. In this scenario, vesting would therefore
be capped at the maximum of the current Core Award
structure of 100% of salary.
As can be seen from the above example, the Committee felt that
the construct of the Enhanced Awards, through stretching targets
combined with strong qualifiers, sat more naturally with the
Group’s high quality earnings and cash compounder model, and
represented better value for shareholders.
Q
Given the degree of focus on EPS in this proposal,
will management focus too much on M&A?
A
It should be noted that the Board has oversight into the details
of any material acquisition and that Intertek has a proven history
of rigour around M&A investments, generating excellent returns.
During the current CEO’s tenure, ROIC has averaged 21.5%.
Notwithstanding this, we understand that some shareholders
may still be concerned that there remains a risk that management
might be incented to pursue large scale M&A to deliver earnings
growth. To protect against that, we have included two safeguards:
• The ROIC ‘qualifier’ for Enhanced Awards is set at a level that
would make it counter-productive for management to pursue
M&A unless it provided excellent returns; and
• In the event of material M&A transactions, the Committee will
review in-flight and future targets to ensure they retain the
originally proposed level of stretch.
Q
What will happen to the EPS targets in the event
of a share buyback?
A
The EPS targets will be adjusted to neutralise the impact
of any share buybacks.
Q
How did the Committee determine the proposed Enhanced
Award levels?
A
The Committee carefully considered the Enhanced Award levels
both in the context of relevant market data and the significant
degree of stretch in the targets. Specifically in the case of our
CEO, André Lacroix, the following points are worth highlighting:
• The current Intertek CEO package is positioned between median
and upper quartile within the FTSE 100 which reflects André’s
extensive experience and excellent performance in role.
• Given the degree of stretch in the proposed targets, there
would be no change in the positioning of André’s Total Target
Remuneration under this proposal. It should also be highlighted
that André would receive no additional remuneration for
delivering the current Core Award maximum target of 10%
EPS growth.
• If the Enhanced Awards were to pay out in full, then André’s
Total Maximum Remuneration would be slightly ahead of upper
quartile within the FTSE 100. However, this outcome would be
dependent on the delivery of sustained EPS growth which
significantly exceeded normal market practice across the
FTSE 100 and therefore the Committee concluded that this
positioning would be supported by enhanced performance.
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Annual Report & Accounts 2024
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Implementation of our Remuneration Policy in 2025
Base salary
The Remuneration Committee has awarded the CEO and CFO
salary increases of 2.4% which is in line with the wider UK
workforce increase of 2.4%.
Annual incentive
The maximum annual incentive opportunity for the Executive
Directors remains unchanged in 2025 at 200% of salary. It will
continue to be based 70% on a matrix of Revenue and Adjusted
Operating Profit growth, 15% on ROIC and 15% on ESG, based
on Carbon Emissions.
LTIP
2025 Core Awards remain unchanged at 300% and 200%
of salary for the CEO and CFO respectively. As outlined above,
and subject to shareholder approval, the Executive Directors
will also receive Enhanced Awards worth 300% of salary.
Performance measures and targets for the Core and Enhanced
Awards are outlined in the 2025 Directors’ Remuneration Policy
section above.
Performance and incentive outcomes for 2024
As set out earlier in the Annual Report & Accounts, Intertek
has delivered robust revenue growth, strong margin progression,
double-digit earnings growth, excellent cash generation
and ROIC. Performance highlights are summarised below –
full details are on pages 1.34-1.39 in Report 1.
Financial performance metrics
1
FY24
Revenue £3,393.2m
Operating profit £590.1m
Operating margin 17.4%
EPS 240.6p
ROIC 22.4%
Free Cash Flow £408.8m
Dividend 156.5p
1. On adjusted basis.
£0m £20m£15m£5m £10m
CEO packages of FTSE 100 companies
Total maximum remuneration
Median UQ
Intertek – current package
Intertek – proposed package
Q
What alternative reward mechanisms did you
consider before arriving at your proposal?
A
The Committee considered several alternative ways of
unlocking the growth objectives within the AAA strategy
from a reward perspective. These included forms of profit
sharing (e.g. a value creation plan), alternative metrics (e.g.,
total shareholder return) and simply extending the existing
LTIP structure.
Whilst each of the alternative structures has some
strengths, some investors have challenged the more
innovative structures (e.g. a value creation plan) and whilst
alternative metrics were possible, they were not directly
aligned with the outcomes targeted from execution of
our AAA differentiated strategy for accelerated growth.
Ultimately, the Committee felt that the proposal set
out above:
(i) is more directly aligned with the out-turns expected to
be delivered from the strategy to unleash the full potential
of the company and deliver superior returns for our
shareholders;
(ii) is the only structure that affirmatively meets one
of our core principles of being self-funding; and
(iii) has the best alignment with shareholder interests.
Q
Other than the ‘qualifiers’, how do we get
comfortable that payouts will be aligned
with the shareholder experience?
A
Before any awards are approved to vest, the Committee will
carefully consider whether any discretion should be applied
to the vesting result using the detailed discretionary
framework set out in the Implementation section on page
2.114.
£0m £2m £4m £6m £8m £10m £12m
CEO packages of FTSE 100 companies
Total target remuneration
Median UQ
Intertek – current and proposed package
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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There was no change to our annual incentive framework for
2024, which continues to support the Group’s strategy for
growth and our purpose of bringing quality, safety and
sustainability to life. Based on the performance targets set
at the start of the year, this resulted in a formulaic outcome
of 95.6% of maximum. A full disclosure of the Annual Incentive
scorecard is provided on page 2.118. The Remuneration
Committee felt that this out-turn was consistent with the
overall strong performance of the business in the year. 50%
of this award will be deferred into shares for three-years.
Throughout the Group, our annual incentives are based on
the same metrics to ensure total alignment and transparency.
Our 2022 Core LTIP award was based on three equally weighted
metrics measured over a three-year period to 31 December
2024; EPS, FCF and ROIC, aligned with the Group’s strategy for
sustainable growth. Strong performance was delivered across
all three metrics with performance above the maximum targets
and the formulaic outcome was 100% of maximum vesting, full
details of which are provided on page 2.119
When determining incentive outcomes, the Remuneration
Committee exercised independent judgement, taking into
account a number of internal and external considerations
to determine whether the results felt appropriate, including:
• Robust revenue growth of 6.6% at constant currency;
• Strong margin progression to 17.4%;
• EPS growth of 15.2% in constant currency;
• Strong cash generation up 8.0% year-on-year;
• Disciplined capital allocation. Excellent progress from
acquisitions. Strong ROIC of 22.4%, up 250bps on 2023;
• Improved dividend – full year 156.5p, up 40.1% year-on-year
in line with our dividend policy of circa 65% payout, and
• The overall stakeholder experience over the relevant
performance periods, including the experience of our clients,
employees and communities.
It was the view of the Remuneration Committee that the
incentive outcomes appropriately reflected performance in
the relevant performance periods and the wider shareholder
experience, the Remuneration Policy operated as intended
and therefore no discretion was applied.
Wider workforce
Across the Group, our 45,000 employees deliver our science-
based customer growth advantage for our clients every day
with precision, pace, and passion. Our people bring their technical
expertise and energy to work every day. Over the year, the focus
of the Group is to ensure we have engaged and energised teams
taking the company to ever greater heights.
Intertek is compliant with minimum wage and mandatory social
contributions requirements in all jurisdictions where we operate.
Given the geographic spread of the Group’s operations,
employee reward is managed at local level to enable local
management to deliver the right customer and employee
experience. This year, we have focussed on the engagement
within our teams through our Champions programme in
partnership with Gallup, continued to focus on the wellbeing of
our employees through our Kindness programme, created more
relevant content on our internal learning platform – Lucie, and
continued celebrating our diversity through our Mosaic program.
With regards to salary budgets, we continue to be mindful of the
challenges our employees are facing with the ongoing inflation
and cost-of-living pressures across the world. In making salary
budget decisions, the Group balanced the challenges our
employees are facing with the wider approach to cost discipline.
Across the UK, the salary increase has been agreed at 2.4%, with
the UK representing below 5% of Intertek’s employee population.
Chair and Non-Executive Director fees
Following a review of fee levels which took into account
a range of factors including the responsibilities and time
commitment to the Group's affairs associated with individual
roles and appropriate market comparisons, Chair and Non-
Executive Director fee levels have been adjusted for 2025
(full details are on page 2.113). This is the first increase to
the Chair's fee since 2021 and the first increase to the
Non-Executive Directors' fees since 2018.
Conclusion
I hope that you will find this report clear and helpful in
understanding our remuneration practices. The Remuneration
Committee is confident that the proposed remuneration
structure is fully aligned to shareholder interests and is carefully
designed to support our strategy. I look forward to your support
on all remuneration related resolutions at our forthcoming AGM,
which include a resolution to increase the maximum LTIP award
level in line with the proposed changes on the Remuneration
Policy set out above.
Yours sincerely,
Graham Allan
Chair of the Remuneration Committee
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Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Directors’ Remuneration Policy
The Remuneration Policy for Executive and Non-Executive
Directors was last approved by shareholders at the AGM on
24 May 2024. As explained in the Remuneration Committee
Chair’s letter, a revised Remuneration Policy will be presented
to the AGM to be held on 22 May 2025. The only substantial
changes to the Remuneration Policy are:
• LTIP – The maximum LTIP opportunity will be increased to
600% of salary to facilitate Enhanced Awards of up to
300% of salary, designed to incentivise delivery of the AAA
differentiated growth strategy and to unlock a significant
value growth opportunity for shareholders; and
• Benefits – The current Policy contains a cap on the value of
executive director benefits which is not in line with current
market norms. Accordingly, the cap will be removed in the new
Policy. The Company will continue to look to optimise value
when seeking benefits providers.
In determining the Remuneration Policy, the Committee followed
a thorough process which included discussions on the content
of the Policy at six Remuneration Committee meetings and an
extensive consultation process with major shareholders and the
proxy advisory bodies. The Committee also considered input
from management. Any conflicts of interest were managed
with decisions being taken by members of the Remuneration
Committee with support from independent advisers, as well
as in the context of best practice and external guidance.
As a global service business, our success is critically dependent on
the performance and retention of key people around the world.
Employment costs represent the major element of Group operating
costs. As a global Group, our pay arrangements take into account
both local and international markets and we operate a global
Remuneration Policy framework to achieve our reward strategy.
Our benchmark peer groups for the majority of employees consist
of international industrial or business service organisations and
similar-sized businesses. For our more senior executives, we base
our remuneration comparisons on a blend of factors, including
sector, job complexity, location, responsibilities and performance,
whilst recognising the Company is listed in the UK.
We believe that a significant proportion of remuneration for
senior executives should be related to performance, with part
of that remuneration being deferred in the form of shares and
subject to continued employment and longer-term performance.
We also believe that share-based remuneration should form a
significant element of senior executives’ compensation, so that
there is a strong link to the sustained future success of the Group.
Policy overview
We continue to focus on ensuring that our Remuneration Policy
is appropriate for the nature, size and complexity of the Group,
encourages our employees in the development of their careers,
is aligned with the Company’s strategy and is in the best
interests of the Company and its stakeholders. It is designed
to incentivise delivery of the unprecedented returns the AAA
growth strategy is targeting whilst remaining committed to
the key financial metrics that have been fundamental to the
Company’s historic success.
Our remuneration strategy is to
• align and recognise individual contributions to support us
in achieving our AAA differentiated strategy for growth;
• attract, engage, motivate and retain the best available people
by positioning total pay and benefits competitively in the
relevant market and in line with the ability of the business
to pay;
• reward people equitably for the size of their responsibilities
and performance; and
• motivate high performers to increase shareholder value
and share in the Group’s success.
Each year the Committee approves the overall reward
strategy for the Group and sets the individual remuneration
of the Executive Directors and certain senior management.
The Committee reviews the balance between base salary
and performance-related remuneration against key objectives
and targets to ensure performance is appropriately rewarded.
This also ensures outcomes are a fair reflection of the
underlying performance of the Group and appropriate in
the context of the overall shareholder experience.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Remuneration Policy for Directors
The following table sets out the Remuneration Policy for Directors.
Element of pay Purpose and link to strategy Operation Maximum opportunity Performance measures
Base salary To attract and retain
high performing
Executive Directors
to lead the Group.
The Committee normally reviews salaries annually, taking
account of factors including, but not limited to, the scale
of responsibilities, the individual’s experience and
performance.
Whilst the Committee takes benchmarking information
into account, its decisions are based primarily on the
performance of the individual concerned against the
above factors to ensure that there is no unjustified
upward ratchet in base salary.
There is no prescribed maximum salary
or annual increase.
In awarding any salary increases, the
Committee is guided by the general
increase for the employee population
but, on occasions, may need to
recognise other factors including, but
not limited to, development in role,
change in responsibility and/or variance
to market levels of remuneration.
Individual performance is taken into account when salary
levels are reviewed.
Benefits To provide competitive
benefits to ensure the
wellbeing of employees.
Benefits include, but are not limited to, annual medicals,
life assurance cover of up to six times base salary,
allowances in lieu of a company car or other benefits,
private medical insurance (for the individual and their
dependants) and other benefits typically provided to
senior executives.
Executive Directors can participate in any all-employee
share plans operated by the Company on the same basis
as all other employees.
There is no prescribed maximum value
for benefits (excluding the all-employee
plans) as these will vary from year to
year depending upon the costs of
different benefits providers.
The maximum opportunity under any
all-employee share plan is in line with all
other employees and is as determined
by the prevailing HMRC rules.
n/a
Pension To provide competitive
retirement benefits.
Executive Directors can elect to join the Company’s
defined contribution pension scheme, receive pension
contributions into their personal pension plan or receive
a cash sum in lieu of pension contributions.
For new Executive Directors, pension
provisions will be in line with those of
the wider UK workforce (currently 5%
of salary).
For the Group CEO, the pension is
being brought in line with the wider
UK workforce as previously committed.
It will reduce from 10% to 5% of salary
from 1 June 2025.
n/a
Intertek Group plc
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Remuneration Committee Report Continued
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Element of pay Purpose and link to strategy Operation Maximum opportunity Performance measures
Annual Incentive
Plan (‘AIP’)
To drive the short-term
strategy and recognise
annual performance
against targets which
are based on business
objectives.
Awards are based on Group annual performance
targets, with performance targets normally set
annually by the Board.
Incentive out-turns are normally assessed by the
Committee at year-end, taking into account performance
against the targets and the underlying performance of
the business.
The Committee has the ability to adjust incentive
payments if it believes that out-turns are not appropriate
in the context of overall performance and wider
stakeholder experience.
The payout at below threshold performance is 0% of
maximum, with 25% of the maximum bonus normally
payable for threshold performance. Payouts between
threshold and maximum (100%) are determined on an
annual basis. Details of the payout schedule will be
disclosed in the relevant Directors’ Remuneration report.
Normally, 50% of any incentive is paid in cash and 50%
deferred into shares which will vest after a period of
three years subject to continued employment.
Malus and clawback provisions apply.
The maximum opportunity in respect
of a financial year is 200% of salary
for each Executive Director.
The annual incentive will be measured against a range of
key Group performance indicators, including both financial
and non-financial measures, with a minimum weighting of
80% of financial measures.
For 2025, the annual incentive will be based on a 70%
matrix of revenue and adjusted operating profit growth,
15% ROIC and 15% ESG, based on Carbon Emissions.
These measures support the Group's strategy for
growth and our purpose of bringing quality, safety and
sustainability to life. The stretch targets, when met,
reward exceptional achievement and contribution. There
is no incentive payout if threshold targets are not met.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Element of pay Purpose and link to strategy Operation Maximum opportunity Performance measures
Long Term Incentive
Plan (‘LTIP’)
To retain and reward
Executive Directors for
the delivery of long-term
performance.
Enhanced Awards are
specifically designed to
unlock AAA value growth.
To support the continuity
of the leadership of the
business.
To provide long-term
alignment of executives’
interests with
shareholders by linking
rewards to Intertek’s
performance.
Grant of conditional shares which vest after three years,
subject to Company performance and continued
employment.
Awards may be made in other forms (e.g. nil-cost options)
if considered appropriate.
The shares will also normally be subject to a two-year
holding period after vesting.
Performance targets are normally set annually for each
three-year performance cycle by the Board.
Vesting is normally assessed by the Committee
after the end of the performance period, taking
into account performance against the targets
and the underlying performance of the business.
The Committee has the ability to adjust incentive
payments if it believes that out-turns are not
appropriate in the context of overall performance
and shareholder and wider stakeholder experience.
The detailed discretionary framework to be used for
this process is set out on page 2.114.
Malus and clawback provisions apply.
Up to 600% of salary in respect of any
financial year comprising no more than
300% of salary as a Core Award and
no more than 300% of salary as an
Enhanced Award.
Awards are usually subject to an appropriate balance of
earnings, cash and capital efficiency metrics which align
with the Group's strategy for sustainable growth.
For 2025:
• Core Awards will be subject to an equally weighted
balance of EPS, FCF and ROIC performance measures.
• Enhanced Awards will be subject to an EPS performance
measure, aligned with the AAA strategy, as well as FCF
and ROIC ‘qualifiers’.
The Committee retains the discretion to alter the
performance metrics for future LTIP awards but, were the
Committee to do so, it would normally consult in advance
with the Company’s largest institutional shareholders.
As a point of principle, where a metric is used as a
performance measure (rather than a ‘qualifier’) for both
Core and Enhanced Awards, a target range will be used for
Enhanced Awards that is above that used for Core Awards.
No more than 25% of a Core Award and no more than 15%
of an Enhanced Award will vest for achieving a threshold
performance target, increasing (usually on a pro rata basis)
to full vesting for the achievement of the applicable
stretch performance target.
Share ownership
guidelines
To increase alignment
between executives
and shareholders.
Executive Directors are expected to retain any vested
shares (net of tax) under the Group’s share plans until
the guideline is met.
The guideline should normally be met within five years
of the guideline being set.
Further details of the share ownership guidelines and
the post-cessation shareholding guidelines are set out
in the Directors’ Remuneration report.
500% of salary for the CEO.
300% of salary for the CFO.
n/a
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Element of pay Purpose and link to strategy Operation Maximum opportunity Performance measures
Post-cessation of
employment
shareholding
To ensure alignment of
sustainable performance
between executives and
shareholders.
Holding and vesting periods for all share awards
will be adhered to post-employment.
Executive Directors are required, for
two years post-employment, to hold
shares equivalent to the lower of
(i) their share ownership guidelines; or
(ii) their actual shareholding.
n/a
Non-Executive
Directors’ fees
To attract and retain
high-calibre Non-
Executive Directors
through the provision of
market-competitive fees.
A proportion of the fees (at least 50%) are paid in cash,
with the remainder used to purchase shares.
Fees are primarily determined based on the responsibility
and time committed to the Group’s affairs and
appropriate market comparisons.
The Chair receives an all-inclusive fee. Non-Executive
Directors receive a base fee and further fees for
additional Board responsibilities. Additional fees may
be paid in the exceptional event that Non-Executive
Directors are required to commit substantial additional
time above that normally expected for the role.
With the exception of benefits in kind arising from
the performance of duties (and any tax due on those
benefits which is reimbursed by the Company), no other
benefits are provided.
As for the Executive Directors, there is
no prescribed maximum annual increase.
The Committee is guided by the general
increase for the employee population
but on occasions may need to recognise
other factors including, but not limited to,
change in responsibility and/or variance
to market levels of remuneration.
n/a
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Selection of performance metrics
The annual incentive plan is based on performance against a mix
of financial and non-financial measures. The mix of financial
measures is aligned to the Group’s key performance indicators
(‘KPIs’) and is reviewed each year by the Remuneration
Committee to ensure that they remain appropriate to reflect
the priorities for the business in the year ahead. The targets
are set for each KPI to encourage continuous improvement and
challenge the delivery of stretch performance. When setting
the targets, the Committee takes into account a range of
factors, including the business plan, prior-year performance,
market conditions and consensus forecasts.
The 2025 LTIP awards are designed to incentivise senior
executives to deliver the AAA differentiated growth strategy
and to unlock the significant value growth opportunity that will
benefit shareholders. However, the Committee is also conscious
that management should not be incentivised to deliver higher
levels of earnings growth to the detriment of other key financial
metrics that are fundamental to the Company’s historic success.
Accordingly, the LTIP framework retains a balance of three
measures: earnings per share growth, return on invested capital
and adjusted free cash flow. Earnings per share ensures that
there is a clear focus on margin-accretive revenue growth;
adjusted free cash flow ensures focus on strong cash
management; and return on invested capital ensures a focus
on disciplined capital management. The Committee reviews
the choice of performance measures prior to each LTIP grant.
A sliding scale of challenging performance targets is set for
each LTIP measure. When setting targets, the Committee
takes into account a range of factors, including the business
plan, prior-year performance, market conditions and consensus
forecasts. Specifically in respect of Enhanced Awards, the
Committee’s overriding principle is that the targets should only
deliver additional reward if higher levels of performance are
achieved than in respect of Core Awards (i.e. a “more for more”
principle). The Committee reviews the appropriateness of the
performance targets prior to each LTIP grant and reserves the
discretion to set different targets for future awards, without
consulting with shareholders.
Terms of incentive awards
Deferred Share awards and LTIP awards may include the right to
receive (in cash or shares) the value of the dividends that would
have been paid on the shares that vest up to the time of vesting
(or for LTIP awards, up to the end of the relevant holding period).
The Committee’s intention is that such dividends would normally
be settled in shares.
The Committee will operate the annual incentive plan and LTIP
according to the respective rules of the plans. The Committee
will retain flexibility in a number of areas regarding the operation
and administration of these plans, including (but not limited to)
the following:
• how to deal with a change of control or restructuring of the
Group, or a demerger or similar event (including how to assess
performance conditions and whether to time pro-rate awards);
and
• how and whether any award may be adjusted in certain
circumstances (including in the event of a variation of
share capital, demerger, special dividend, or similar event).
The Committee also retains discretion within the Remuneration
Policy to adjust targets and/or set different measures and
weightings if required for the targets or conditions to achieve
their original purpose. Revised targets/measures will be, in the
opinion of the Committee, no less difficult to satisfy than the
original conditions. The Committee may accelerate the vesting
and/or the release of awards if an Executive Director moves
jurisdictions following grant and there would be greater tax
or regulatory burdens on the award in the new jurisdiction.
Malus and clawback
A Group Performance Adjustment Policy has been introduced
which sets out the details of how and when malus and clawback
will be operated and applies to all aspects of compensation
for Executives and wider staff. Please see page 2.123 for
further details.
Remuneration scenarios for Executive Directors
The chart on the next page illustrates how the Executive
Directors’ remuneration packages vary at different levels of
performance under the Policy which will apply in 2025 for
both the Chief Executive Officer and Chief Financial Officer.
Approach to recruitment and promotions
The remuneration package for a new Executive Director –
base salary, benefits, pension, annual incentive and long-term
incentive awards – would be set in accordance with the terms of
the Company’s prevailing approved Remuneration Policy at the
time of appointment. The Committee may set the base salary at
a value to reflect the calibre, experience and earnings potential
of a candidate, subject to the Committee’s judgement that
the level of remuneration is in the Company’s best interests.
The maximum level of variable pay (annual incentive and
long-term incentive awards, or any combination thereof)
which may be awarded to a new Executive Director at or
shortly following recruitment shall be limited to 800% of salary.
These limits exclude buy-out awards and are in line with the
Remuneration Policy for Directors set out previously.
The Committee may offer additional cash and/or share-based
elements to take account of remuneration relinquished when
leaving the former employer when it considers these buy-outs
to be in the best interests of the Company (and therefore
shareholders).
Any such awards would reflect the nature, time horizons and
performance requirements attaching to the remuneration it is
intended to replace. Where appropriate, the Committee retains
the flexibility to utilise Listing Rule UKLR 9.3.2 R for the purpose
of making an award to buy-out remuneration relinquished
when leaving the former employer. For external and internal
appointments, the Committee may agree that the Company
will meet certain relocation expenses and continuing allowances
as appropriate. Additionally, in the case of any Executive Director
being recruited from overseas, or being recruited by the
Company to relocate overseas to perform their duties, the
Committee may offer expatriate benefits on an ongoing basis
subject to their aggregate value to the individual not exceeding
50% of salary per annum.
For an internal Executive Director appointment, any variable
pay element awarded in respect of the prior role may be allowed
to pay out according to its terms, adjusted as relevant to take
into account the appointment. In addition, any other ongoing
remuneration obligations existing prior to appointment may
continue. If a new Chair or Non-Executive Director is appointed,
remuneration arrangements will be in line with those detailed
in the Remuneration Policy for Non-Executive Directors set
out in the Remuneration Policy for Directors.
Service contracts for Executive Directors
The service agreements of the Executive Directors are not fixed
term and are terminable by either the Company or the Director
on 12 months’ notice and make provision, at the Board’s
discretion, for early termination by way of payment of salary and
pension contributions in lieu of 12 months’ notice. In calculating
£’000
8,000
8,500
7,5 0 0
7,000
6,500
6,000
5,500
4,500
5,000
Minimum On-target
A Lacroix, Chief Executive Officer C Deasy, Chief Financial Officer
Maximum 2Maximum Minimum On-target Maximum 2Maximum
4,000
41%
26%
32%
32%
59%
33%
58%
100% 32% 16%
32%
49%
19%
100% 36% 8%
39%
39%
22%
3,500
3,000
2,500
2,000
1,500
1,000
500
0
£1,302
£4,013
£6,724
£8,351
£563
£1,587
£2,611
£3,123
27 %
LTIP award
Annual incentive
Basic salary, benefits and pension
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Value of remuneration packages at different levels of performance
Points relating to the above table:
1. Salary levels are based on those applying on 1 April 2025.
2. The value of taxable benefits is based on the cost of supplying those benefits (as disclosed) for the year ended 31 December 2024.
3. The value of pension receivable in 2025 by the CEO is taken to be 10% of salary until 1 June 2025 and 5% thereafter, and for the CFO taken to be 5% of salary.
4. The on-target level of annual incentive is taken to be 50% of the maximum opportunity.
5. The on-target level of the LTIP is taken to be 50% of the face value of the Core Award at grant. Given the degree of stretch in the performance targets applying to the Enhanced Awards, none of these awards are
assumed to deliver value in an on-target scenario.
6. Share price movement and dividend accrual have not been incorporated into the first three scenarios. Share price growth of 50% has been assumed on the LTIP in the Maximum 2 scenario.
the amount payable to a Director on termination of employment,
the Board would take into account the commercial interests
of the Company and apply usual common law and contractual
principles. Any payments in lieu of notice may be paid in a lump
sum or may be paid in instalments and reduce if the Director
finds alternative employment. The service contracts are
available for inspection at the Company’s registered office.
The Committee reviews the contractual terms for new
Executive Directors to ensure these reflect best practice.
In summary, the contractual provisions are:
Provision Detailed terms
Notice period 12 months
Common law and
contractual
principles
Common law and contractual principles
apply
Remuneration
entitlements
An incentive may be payable (pro rata
where relevant) and outstanding Share
Awards may vest (see below)
Change of control No Executive Director’s contract contains
provisions or additional payments in
respect of change of control. The
treatment of annual incentive awards and
outstanding Share Awards will be treated
in line with the relevant plan rules
There is no automatic entitlement to an annual incentive award
in the year of cessation of employment. The Committee may,
however, determine that for certain leavers an annual incentive
award may be payable with respect to the period of the financial
year served.
Any share-based entitlements granted to an Executive Director
under the Company’s share plans will be determined based on
the relevant plan rules.
The default treatment under the 2021 LTIP is that any
outstanding awards lapse on cessation of employment.
However, in certain prescribed circumstances, such as death,
ill-health, injury, disability or other circumstances at the
discretion of the Committee, ‘good leaver’ status may be applied.
For good leavers, Deferred Share awards will vest in full on the
original vesting date (as permitted under the plan rules), unless
the Remuneration Committee determines that awards should
vest at an earlier date. LTIP awards will normally vest on the
original vesting date and be subject to any holding period,
and subject to the satisfaction of the relevant performance
conditions at that time and reduced pro rata to reflect the
proportion of the performance period actually served. They will
normally, where appropriate be subject to any holding period.
However, the Committee has discretion to determine that
awards vest at an earlier date and/or to disapply time pro-rating,
although it is envisaged that this would only be applied in
exceptional circumstances (for example, death). Any such
incidents, where discretion is applied by the Committee in
relation to Executive Directors, will be disclosed in the following
Annual Report on Remuneration.
In determining whether an Executive Director should be treated
as a good leaver or not, the Committee will take into account the
reasons for their departure.
The Committee reserves the right to make any other payments
(including appropriate legal fees) in connection with an
Executive Director’s cessation of office or employment where
the payments are made in good faith on discharge of an existing
legal obligation (or by way of damages for breach of their
obligation) or by way of settlement of any claim arising in
contravention with the cessation of an Executive Director’s
office or employment.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Letters of appointment for Non-Executive Directors
The letter of appointment for each Non-Executive Director
states that they are appointed for an initial period of three years
and all appointments are terminable by one month’s notice on
either side. At the end of the initial period and after rigorous
review, the appointment may be renewed for a further period,
usually three years, if the Company and the Director agree and
subject to annual re-election at the AGM. Each letter of
appointment states that if the Company were to terminate
the appointment, the Director would not be entitled to any
compensation for loss of office.
The table below sets out the terms for all the current
Non-Executive Directors of the Board.
Date of appointment
Notice period/Unexpired term
as at 31 December 2024
Andrew Martin 26 May 2016 becoming Chair on 1 January 2021
Reappointed: 26 May 2022
One month/5 months
Graham Allan 1 October 2017
Reappointed: 1 October 2023
One month/21months
Gurnek Bains 1 July 2017
Reappointed: 1 July 2023
One month/18 months
Lynda Clarizio 1 March 2021
Reappointed: 1 March 2024
One month/26 months
Tamara Ingram 18 December 2020
Reappointed: 18 December 2023
One month/23 months
Jez Maiden 26 May 2022 One month/5 months
Kawal Preet 31 December 2022 One month/12 months
Apurvi Sheth 1 September 2023 One month/20 months
Jean-Michel Valette 1 July 2017
Reappointed: 1 July 2023
One month/18 months
Steve Mogford 1 January 2025 One month/36 months
commenced on appointment
Consideration of employment conditions
elsewhere within the Group
When setting the Remuneration Policy for Executive Directors,
the Remuneration Committee takes into account the pay and
employment conditions elsewhere within the Group. When
considering the remuneration arrangements for the Executive
Directors for the year ahead, the Committee is informed of salary
increases across the wider Group. The Committee also approves
the overall reward strategy in operation across the Group.
The remuneration strategy set out at the beginning of the
Directors’ Remuneration Policy report reflects the strategy
in place across the Group for all employees. Although this
remuneration strategy applies across the Group, given the size
of the Group and the geographic spread of its operations, the
way in which the Remuneration Policy is implemented varies
across the Group. For example, annual incentive deferral applies
at the more senior levels within the Group and participation in
the LTIP is at the Remuneration Committee’s discretion and is
typically limited to senior executives employed within the Group.
Given the geographic spread of the Group’s operations, the
Remuneration Committee does not consider it appropriate to
consult employees on the Remuneration Policy in operation
for Executive Directors.
Consideration of shareholder views
The Committee values the opportunity to engage in meaningful
dialogue with its investors. As outlined in the Remuneration
Committee Chair’s letter, an extensive consultation process
about this Remuneration Policy was undertaken with our top
40 shareholders (covering circa 60% of our shareholder register)
and three proxy advisory bodies.
Legacy arrangements
The approved Directors’ Remuneration Policy provides authority
to the Company to honour any commitments entered into with
current or former Directors such as the vesting of outstanding
share awards (including exercising any discretions available
to it in connection with such commitments) that were agreed:
(i) before the policy set out above, or any previous policy, came
into effect;
(ii) at a time when a previous policy approved by shareholders
was in place provided that the payment is in line with the
terms of that policy; and
(iii) at a time when the relevant individual was not a Director
of the Company and the payment was not in consideration
for the individual becoming a Director of the Company.
Intertek Group plc
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Annual Report on Remuneration
Committee membership and meeting attendance
1
Committee members Member since
Meetings
attended
2
Gill Rider (Chair) Chair and member from
July 2015 until May 2024 2/2
Graham Allan (Chair) Member from October
2017. Chair from May
2024 4/4
Gurnek Bains January 2018 4/4
Tamara Ingram July 2021 4/4
Kawal Preet May 2024 2/2
1. The Group Company Secretary acts as Secretary to the Committee.
2. Number of meetings attended out of the number of meetings eligible to attend in the year.
Throughout 2024 and at all times the composition of the
Committee was compliant with the Code. All members are
independent Non-Executive Directors. The Chair Gill Rider stood
down from the Committee on 24 May 2024 and was replaced by
Graham Allan who, prior to becoming Chair, had been a member
of the Remuneration Committee since October 2017. The
Nomination Committee was therefore able to recommend
his appointment as Chair of the Committee which was then
approved by the Board. Kawal Preet was additionally appointed
to the Committee with effect from 24 May 2024.
On appointment, new Committee members receive an appropriate
induction consisting of meetings with senior personnel, advisers
and as appropriate, meetings with shareholders and other
relevant stakeholders. They also review the Terms of Reference,
previous Committee meeting papers and minutes.
The Committee met regularly during the year and invites the
Chair, CEO and the EVP Human Resources to attend meetings
when it deems appropriate, except when their own remuneration
is discussed. In addition to the four scheduled meetings the
Committee met on four additional occasions to discuss the
feedback from shareholders as part of the extensive
consultation on the Remuneration Policy.
No Director is present whilst their own remuneration is
determined. None of the Committee members has had any
personal financial interest, except as shareholders, in the
decisions made by the Committee.
Committee responsibilities and how we met them in the year
We have specific responsibilities reserved to us by the Board and the full Terms of Reference of the Committee, which are reviewed
annually, can be found on our website at intertek.com.
Matters delegated to the Committee
2018 Code
provision
Determines the Company’s policy on remuneration for the Executive Directors and senior executive management. 33, 36–40
Determines the remuneration for the above and the Chair, including any compensation on termination of office. 33
Reviews the remuneration arrangements for the wider employee population and considers issues relating
to remuneration that may have a significant impact on the Group.
33
Provides advice to, and consults with, the CEO on major policy issues affecting the remuneration of other
executives.
33
Responsible for establishing the selection criteria, selecting, appointing and setting the terms of reference
for any remuneration consultants who advise the Committee.
35
Keeps the Remuneration Policy under review in light of regulatory and best practice developments and
shareholder expectations and ensures that the Remuneration Policy is voted on at least every third year. Due
regard is given to the interests of shareholders and the requirements of the Listing Rules and associated guidance.
36–40
Ensures each year that the Annual Directors' Report on Remuneration is put to shareholders for approval at the
AGM and includes a description of the work of the Committee.
41
Executive Director remuneration
We are responsible for determining the Company’s policy on
the remuneration of the Chair, the Executive Directors and
senior executive management. We also determine their
remuneration packages, including any compensation on
termination of office, and ensure alignment with our culture
and with policies for the workforce as a whole.
In the year, we addressed this by reviewing and agreeing the
remuneration of the Executive Directors as well as the Group
Executive Committee. We received advice from Deloitte LLP
(‘Deloitte’) to inform our discussions.
Wider workforce remuneration and engagement
We also review the remuneration and related policies of the
wider workforce to ensure that incentives and rewards align
to our Purpose, Values and culture. As part of this review,
we receive information on salary increases, on the design of
the bonus and targets and on the 2021 Long Term Incentive
Plan and performance criteria. This is used to inform decisions
when setting the policy for Executive Director remuneration
and for counsel to, the CEO on major policy issues affecting
the remuneration of other executives.
The remuneration framework and the incentive structure that we
have in place cascades down through the wider workforce and
ensures alignment with executive remuneration and the Intertek
AAA differentiated growth strategy. We also took into account
the UK wider workforce salary increase when determining the
2025 salary increase for the Executive Directors.
We ensure that we have effective engagement with the wider
workforce on the Group’s remuneration and related policies
through various escalation processes and communication
forums including townhalls, WhatsIn, emails and leadership
briefings. The regular townhalls that take place across the Group
provide an opportunity for our people to raise questions on
remuneration, with feedback directly fed to senior management
and then upwards.
During the year, we reviewed the salary levels for senior
management and the determination of the annual incentive
payments and long-term incentive outcome for 2024. We
considered a report on the general market trends that could
impact the Group.
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Annual Report & Accounts 2024
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Remuneration Policy and report
It is important that we keep the Remuneration Policy under
review in light of regulatory and best practice developments,
Listing Rules and Governance Code changes as well as
shareholder expectations.
We annually undertake a review of the Directors’ Remuneration
report to ensure compliance with Remuneration Reporting
Regulations. We also discussed the 2024 proxy voting agencies'
reports and their recommendations issued prior to the 2024 AGM.
We received updates on market trends in remuneration from
Deloitte and regular updates on corporate governance and
policy changes.
Incentives
A key task for us each year is to review the outcomes for the
incentive schemes and agree on payment levels taking into
account actual performance and any extraordinary events which
may have impacted on performance. We will consider if there is a
need to apply malus or clawback and, should there be, we would
agree the quantum.
We undertook, with external advice, a thorough review of the
2024 annual incentive targets, performance measures and the
EPS, adjusted free cash flow and ROIC results to determine the
percentage of incentive awards that would vest in 2024, which
was 100%.
We also agreed the performance conditions that should apply
to the LTIP awards granted in the year to vest based on the
performance to the end of 2026. We reviewed the quantum
of awards given and were satisfied that they reflected the
Remuneration Policy and were appropriate.
Committee review
We undertake an annual review of how effectively we are
working as a committee and take steps to develop any areas
identified for improvement.
The Committee review was conducted as part of the external
Board performance review for 2024. The results were discussed
and demonstrated that the Committee operated effectively
during the year.
Advisers
To ensure that the Group’s remuneration practices drive and
support achievement of strategies and are market competitive,
the Committee obtains advice from various independent sources.
We review the appointment of the remuneration consultant and
consider if they remain independent and applicable for the needs
of the Committee. In the event that we decide that they are no
longer appropriate, we would arrange a review and any
subsequent appointment.
In 2024, the Committee received advice from Deloitte, who were
appointed in 2015 for their particular expertise both at a local
and global level, due to the worldwide operations of the Group
and, following review, the Committee remains satisfied that their
advice is objective and independent and has sufficient breadth
of knowledge to support our deliberations across the Group as
a whole. Deloitte are members of the Remuneration Consultants
Group and adhere to the voluntary Code of Conduct in relation
to executive remuneration consulting in the UK.
The fees paid to Deloitte in the year were £126,025 exclusive
of VAT. The charges for services are calculated on the basis of
time spent and the seniority of the personnel performing the
work at their respective rates.
In addition to the services provided to the Committee,
Deloitte provided a range of tax, financial and other advisory
services during the year. Deloitte have no connection with
any Directors of the Company.
External appointments
The Company recognises that, during their employment with
the Company, Executive Directors may be invited to become
Non-Executive Directors of other companies and that such
duties can broaden their experience and knowledge. Executive
Directors may, with the written consent of the Company, accept
such appointments outside the Company, and the policy is that
any fees may be retained by the Director. No Executive Director
currently has an external appointment.
Statement of shareholder voting
At the AGM held on 24 May 2024, a resolution was proposed
to shareholders to approve the Remuneration Policy. This
resolution received the following votes from shareholders:
Votes %
In favour 119,886,675 92.54
Against 9,660,205 7.4 6
Total 129,546,880 80.27
1
Withheld 223,539
1. Percentage of total issued share capital voted.
At the 2024 AGM, a resolution was proposed to shareholders to
approve the Directors’ Remuneration report for the year ended
31 December 2023. This resolution received the following votes
from shareholders:
Votes %
In favour 121,021,621 93.27
Against 8,727,757 6.73
Total 129,749,378 80.39
1
Withheld 21,041
1. Percentage of total issued share capital voted.
Intertek Group plc
Annual Report & Accounts 2024
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Directors’ Remuneration Policy – implementation in 2025
Elements Implementation in 2025
Base salary
Base salary for 2025:
André Lacroix: £1,084,330.
Colm Deasy: £512,000.
The Committee has awarded the CEO and the CFO a 2.4% salary increase, which is in line the wider UK workforce yearly increase of 2.4%.
Benefits
Includes, for example, annual medicals, life assurance cover of up to six times base salary, allowances in lieu of a company car or other benefits, private medical insurance and other benefits typically provided to
senior executives. Executive Directors can participate in any all-employee share plans operated by the Company on the same basis as all other employees.
Pension
For the CEO, reducing from 10% to 5% of base salary from 1 June 2025, in line with the wider UK workforce. 5% of base salary for the CFO.
Annual Incentive
Plan (‘AIP’)
• Maximum opportunity for the CEO and CFO: 200% of base salary.
• 50% of any incentive is paid in cash and 50% is deferred into shares vesting after three years.
• Malus and clawback provisions apply in line with Intertek's Group Performance Adjustment Policy.
• Performance metrics – based on a 70% matrix of revenue and adjusted operating profit growth, 15% ROIC and 15% ESG, based on Carbon Emissions. Targets are not disclosed prospectively due to commercial
sensitivity, however, detailed disclosure of the performance targets and actual out-turns will be provided in the following year.
• Annual incentive will continue to be subject to a quality of earnings review at the end of the year to ensure that payouts are appropriate based on the underlying performance of the Group and to ensure that
any awards are commensurate with the Group’s culture and Values.
Long Term Incentive
Plan (‘LTIP’)
As set out in the table below, the ROIC targets are set taking into account the stretch within the business plan and current ROIC performance. The change in the target range relative to prior years reflects the level of
invested capital at work within the business, which has increased in recent years through the Group’s strategy of making bolt-on acquisitions which complement the Group’s business (including the 2024 acquisition of Base
Met Labs). The Committee believes that the proposed target range for ROIC (and the wider financial metrics in the LTIP) are appropriately stretching relative to the business plan and external forecasts of performance.
• Core Awards maximum opportunity for the CEO and CFO: 300% and 200% of base salary, respectively. Enhanced Awards maximum opportunity for the CEO and CFO: 300% each of base salary.
• Two-year holding period after vesting.
• Malus and clawback provisions apply.
• Performance metrics for awards being granted in 2025:
Core Awards
Measures Definition
Threshold
(25%)
Maximum
(100%) Commentary
Earnings Per Share
(‘EPS’) (1/3)
Annualised fully diluted, adjusted EPS growth.
Measured on a constant currency basis.
Per the definition used for the Group’s KPIs on page 1.31 in
Report 1.
4.0% p.a. 10% p.a. Compound annual growth rate targets.
Adjusted Free
Cash Flow (1/3)
Free cash flow generated from operations less net capital
expenditure, net interest paid and income tax paid. Adjusted
for separately disclosed items.
Measured on a constant currency basis.
Per the definition used on page 1.31 in Report 1.
£1,297m £1,377m Cumulative targets measured over three years.
Targets set taking into account stretch within business plan and expected capital
expenditure over the coming three years.
Return on
Invested Capital
(‘ROIC’) (1/3)
Adjusted operating profits less adjusted tax divided by invested
capital (net assets excluding tax balances, net financial debt
and net pension assets/liabilities).
Measured on a constant currency basis.
Per the definition used for the Group’s KPIs on page 1.31 in
Report 1.
20.3% 24.3% Average of adjusted operating profits divided by cumulative invested capital in each of
the three performance years.
Target set taking into account stretch within business plan, current ROIC performance,
and reflective of the Group’s strategy of making small bolt-on acquisitions which
complement the Group’s business.
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Elements Implementation in 2025
Enhanced Awards – subject to AGM approval
Measures Definition
Threshold
(15%)
Maximum
(100%) Commentary
Earnings Per Share
(‘EPS’)
100% of award
Same definition as per the Core Award table 10.5% p.a. 14.5% p.a. Compound annual growth rate targets.
Targets set above targets for Core Awards.
Any vesting is subject to achieving both Qualifiers Qualifier Targets
Adjusted Free
Cash Flow
Same definition as per the Core Award table £1,397m above maximum
of Core Award
range
Cumulative performance measured over three years.
Target set taking into account stretch within business plan and expected capital
expenditure over the coming three years.
Return on
Invested Capital
(‘ROIC’)
Same definition as per the Core Award table 22.3% midpoint of Core
Award range
Average of adjusted operating profits divided by cumulative invested capital in each of
the three performance years.
Target set taking into account stretch within business plan, current ROIC performance,
and reflective of the Group’s strategy of making small bolt-on acquisitions which
complement the Group’s business.
Share ownership
guidelines
Shareholding guidelines are 500% of salary for the CEO and 300% of salary for the CFO. A post-cessation holding equivalent to the lower of the guideline target or the number of shares held at the date of
departure will be required to be held for a period of two years from the Executive's departure date.
Non-Executive Directors’ fees
Fees for the Chair are determined by the Remuneration Committee and fees for the Non-Executive Directors are determined by the Board (excluding the Non-Executive Directors). In both cases, a range of factors are taken into
account including the responsibilities and time commitment to the Group's affairs associated with individual roles and appropriate market comparisons. Following the most recent review, fees were adjusted for 2025 as set out
in the table below. This is the first increase to the Chair's fee since 2021 and the first increase to the Non-Executive Directors' fees since 2018.
Board membership
From
1 April
2025
£’000
From
1 January
2024
£’000
Chair 420 350
Non-Executive Director 75 62
Senior Independent Non-Executive Director 19 12
Committee membership
Chair Audit Committee 20 20
Chair Remuneration Committee 20 15
Chair Nomination Committee – –
Member Audit Committee 10 10
Member Remuneration Committee 10 10
Member Nomination Committee 5 5
Included in the fees shown in the table above, and pursuant to the policy of aligning Directors’ interests with those of shareholders, £10,000 of the fees paid to the Non-Executive Directors and £35,000 of the fees paid to the
Chair are used each year to purchase shares in the Company.
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Illustrative framework for considering if discretion should be applied
Attracts the most external attention – Committee to consider
– Has single-figure increased/decreased year-on-year?
– Does this change mirror the trend in performance?
Starting point – no adjustment in normal circumstances
How has the company performed more widely?
This includes performance against KPIs which
are not in the incentive scorecards
Further reference point, rather than a key
driver for decision making
Committee will want to consider TSR performance in both:
– Relative terms
– Absolute terms
Are there any other events (e.g. reputational, risk related, etc.)
that have occurred that the Committee considers should be
factored in?
Are there any other factors which the Committee should take
into account when making the assessment of performance?
The Committee may also want to reflect on how
the market is likely to respond to the preliminary results
In the context of overall business performance and
the shareholder experience, the Committee needs
to determine an appropriate fair outcome.
This is ultimately a matter of judgement.
What is formulaic
result?
What is the single
figure outcome?
How does the vesting
outcome compare with the
shareholder experience?
How does the vesting
outcome compare with overall
business performance?
Are there any one-off/
exceptional events that
should be factored in?
Are the bonus/LTI
outcomes consistent?
Input from other
Committees?
Consider shareholder
response to results
What would represent
a fair vesting outcome?
Internal documentation
Demonstrate that a robust process is suitably captured
External reporting – Directors' Remuneration Report
Remuneration Committee papers/pre-reading material
Process the Committee followed
Link to other relevant Committee/Board papers
Whether discretion has been applied or not
Minutes of the meeting
Level of adjustment
Reason for adjustment
If discretion has been applied
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Remuneration in context
The following section sets out how the Remuneration Committee has addressed the factors in Provision 40, when determining Executive remuneration as set out in the 2018 UK Corporate Governance Code.
Code requirement Intertek approach
Clarity
Remuneration arrangements should be transparent
and promote effective engagement with
shareholders and the workforce
Variable remuneration arrangements, which are cascaded throughout the workforce, are based on clearly defined performance metrics which are aligned with the
Group’s AAA differentiated growth strategy for sustainable long-term growth.
Simplicity
Remuneration structures should avoid complexity
and their rationale and operation should be easy
to understand
Remuneration arrangements are simple, comprising the following key elements, which are consistent from Executive Directors to front line workforce where
appropriate:
• Fixed element: comprises base salary, benefits and pension, which are aligned to that offered to the majority of the workforce.
• Short-term incentive: annual bonus which incentivises the delivery of financial and non-financial performance metrics linked to ESG. Half of the bonus is paid
in cash with the balance deferred into shares vesting after a period of three years.
• Long-term incentive: LTIP which incentivises financial performance over a three-year period, promoting long-term sustainable value creation for shareholders.
Awards are subject to a two-year holding period post-vesting.
Risk
Remuneration structures should ensure
reputational and other risks from excessive rewards,
and behavioural risks that can arise from target-
based incentive plans, are identified and mitigated
Performance targets are calibrated to be aligned with the Group’s business plan which is set in line with the Group’s risk framework.
The Remuneration Committee retains the flexibility to review formulaic outcomes to ensure that they are appropriate in the context of overall performance of the
Group, including risk.
Predictability
The range of possible values of rewards to individual
Directors and any other limits or discretions should
be identified and explained at the time of approving
the Policy
The remuneration scenario charts, set out on page 2.108, provide estimates on the potential future reward opportunity in a range of scenarios, including below
threshold, target and maximum performance (including share price appreciation).
Proportionality
The link between individual awards, the delivery
of strategy and the long-term performance of the
Company should be clear and outcomes should not
reward poor performance
Variable remuneration is directly aligned to the Group’s strategic priorities (through the selection of key financial performance metrics), with payments calibrated
to ensure that payments are only made where strong performance is delivered.
As noted above, the Remuneration Committee retains the flexibility to review formulaic outcomes to ensure that they are appropriate in the context of the overall
performance of the Group.
Alignment with culture
Incentive schemes should drive behaviours
consistent with the Company’s Purpose, Values
and strategy
As set out on page 2.102, the Remuneration Policy at Intertek has been set to be appropriate for the nature, size and complexity of the Group, encourages our
employees in the development of their careers, is aligned with the Company’s strategy and is in the best interests of the Company and its stakeholders.
It is directed to deliver continued sustainable profitable growth.
Our remuneration strategy is to: align and recognise the individual’s contribution to help us succeed in achieving our AAA differentiated growth strategy; attract,
engage, motivate and retain the best available people by positioning total pay and benefits to be competitive in the relevant market and in line with the ability of the
business to pay; reward people equitably for the size of their responsibilities and performance; and motivate high performers to increase shareholder value and share
in the Group’s success through well designed and appropriately calibrated incentive schemes.
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Remuneration Committee Report Continued
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The sections that have been audited are indicated as such on pages 2.116-2.124. The independent auditors’ report can be found on pages 3.57-3.63 in Report 3.
Directors’ remuneration earned in 2024 (audited)
The table below and on the following page summarise Directors’ remuneration received for 2024 and the prior year for comparison. Taken in the context of internal and external comparators, the Committee considered the
Executive Directors' remuneration to be appropriate.
Executive Directors
Base salary or
fees
£’000
Benefits
1
£’000
Annual incentive
2
£’000
Long–term
incentives
£’000
Pension
5
£’000
Total
£’000
Total fixed
£’000
Total variable
£’000
André Lacroix 2024 1,051 138 2,025 3,123
3
127 6,464 1,316 5,148
2023 1,023 120 1,417 2,940
4
175 5,675 1,318 4,357
Colm Deasy 2024 481 25 956 – 22 1,484 528 956
2023
6
338 16 466 – 15 835 369 466
1. Benefits include allowances in lieu of company car, annual medicals, life assurance, private medical insurance, BIK arising from the performance of duties, and the use of a car and driver for the CEO (gross £40,958, net £22,527).
2. This relates to the payment of the annual incentive and Deferred Share Award for the financial year-end. Further details of this payment are set out on the following pages.
3. This relates to the 2022 LTIP award due to vest in March 2025. The value shown is based on the share price of £47.6895 which was the average mid-market share price in the fourth quarter of 2024. Further details on performance are set out on page 2.119. There was no discretion exercised in respect of the awards.
4. This relates to the 2021 LTIP award which vested in 2024 where the performance outcome gave rise to 100% vesting. This figure has been updated to show the actual value of the vested LTIP award based on the share price of £50.08, whilst the 2023 Annual Report included figures based on the share price for
the final quarter of 2023 (£40.11). There was no discretion exercised in respect of the awards.
5. None of the Executive Directors had a prospective entitlement to a defined benefit pension.
6. This relates to the period from 17 March 2023 when Colm Deasy was appointed as a director.
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Non-Executive Directors
Base salary or
fees
1
£’000
Benefits
2
£’000
Total
£’000
Andrew Martin 2024 350 11 361
2023
350 9 359
Graham Allan 2024 92 – 92
2023 89 – 89
Gurnek Bains 2024 77 – 77
2023 77 – 77
Lynda Clarizio 2024 72 13 85
2023 72 5 77
Tamara Ingram 2024 77 – 77
2023 77 – 77
Jez Maiden 2024 72 9 81
2023 72 2 74
Kawal Preet 2024 68 7 75
2023 62 5 67
Gill Rider 2024
3
41 2 43
2023 87 1 88
Apurvi Sheth 2024 68 8 76
2023
4
17 1 18
Jean-Michel Valette 2024 82 13 95
2023 82 4 86
1. Pursuant to the policy of aligning Directors’ interests with those of shareholders, the fees shown as being paid to the Non-Executive Directors include £10,000 used to purchase shares and the fee paid to the Chair includes £35,000 used to purchase shares.
2. Certain expenses relating to ensuring that the Directors were in a position to undertake the performance of their duties such as travel to and from Company meetings, related accommodation and completion of UK tax returns for overseas Directors have been classified as taxable. In such cases, the Company
will ensure that the Director is not out of pocket by settling the related tax via the PSA. In line with current regulations, these taxable benefits have been disclosed and are shown in the Benefits column and the figures shown are the cost of the taxable benefit. With respect to the Non-Executive Directors no
other benefits are provided.
3. The fees shown for Gill Rider relate to the period to 24 May 2024, the date she stepped down from the Board.
4. The fees shown for Apurvi Sheth relate to the period from 01 September 2023, the date she was appointed to the Board.
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Annual incentive (audited)
The annual incentive for 2024 was:
• 70% based on a matrix of revenue and adjusted operating profit growth;
• 15% based on return on invested capital (‘ROIC’); and
• 15% based on a Carbon Emissions target.
Overview of the matrix (70% of the award)
Adjusted operating profit performance (£m)
Below threshold Threshold Target Maximum
Revenue performance (£m) Maximum 0% 40% 65% 100%
Target 0% 30% 50% 75%
Threshold 0% 25% 35% 60%
Below threshold 0% 0% 0% 0%
Straight-line payouts occur between each of the points above threshold noted above.
The Company’s performance resulted in a Group annual incentive payout of 95.61% of maximum opportunity. Performance of individual components is shown below.
2024 Company performance against annual incentive targets (at 2023 constant currency)
Financial measures
%
Weighting
2024
Threshold
2024
Target
2
2024
Maximum
2024
Actual Achieved
3
Weighted
achievement
Total external revenue
1
£3, 377.4 m £3,485.4m £3,593.3m £3,580.5m
Adjusted operating profit
1
£554.0m £585.7m £617.4 m £611.7m
Revenue/profit matrix 70.0% 93.73% 65.61%
Return on Invested Capital
4,6
15.0% 20.6% 20.8% 21.0% 22.4% 100.00% 15.00%
Carbon Emissions
5,6,7
15.0% 180,410 176,873 173,336 153,807 100.00% 15.00%
Total 100.0% 95.61%
1. Calculated on constant 2023 exchange rates and adjusted to exclude certain non-budgeted non-recurring items and Separately Disclosed Items.
2. Target is equivalent to 50% payout.
3. Percentage achieved against maximum targets.
4. Return on Invested Capital as per definition used for the Group's KPIs on page 1.30 in Report 1.
5. Operational market-based emissions in tonnes of carbon dioxide equivalent (tCO
2
e) as defined on page 1.31 in Report 1.
6. Performance at threshold levels generates 25% outcome for both ROIC and Carbon Emissions.
7. EY have issued an assurance statement in respect of Carbon Emissions disclosure that can be found on pages 1.74-1.75 in Report 1.
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For 2024, the annual incentive outturn in cash and shares is as follows:
Payable in cash
£’000
Deferred
Share Award
1
£’000
Percentage
of maximum
%
André Lacroix 1,012.4 1,012.4 95.6
Colm Deasy 478.1 478.1 95.6
1. These awards vest three years after the date of grant, subject to continued employment or good leaver status. The deferred award is based on 50% of the annual incentive outturn.
Vesting of LTIP Share Awards (audited)
The LTIP Share Awards granted in 2022 are subject to performance for the three-year period ended 31 December 2024.
The performance conditions attached to this award and actual performance against these conditions are as follows:
Metric Performance condition
Threshold
target
1
Stretch
target
1
Actual
performance Vesting level
Earnings Per Share (1/3) Annualised fully diluted, adjusted EPS growth. Measured on a constant currency basis. 4.0% 10.0% 11.8% 100%
Adjusted Free Cash Flow (1/3) Free cash flow generated from operations less net capital expenditure, net interest
paid and income tax paid. Adjusted for separately disclosed items. Measured on a
constant currency basis. £899m £979m £1,216m 100%
Return on Invested Capital (1/3) Adjusted operating profits less adjusted tax, divided by invested capital (net assets
excluding tax balances, net financial debt and net pension liabilities). Measured on a
constant currency basis. 16.5% 20.5% 22.0% 100%
Total vesting 100%
1. 25% of the LTIP share awards will vest at the threshold target and 100% will pay out at the stretch target.
2. All LTIP shares that vest are subject to a further two year holding period.
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The LTIP Share Awards granted in 2022 to the Executive Directors were as follows:
Executive Director
Number of shares
at grant
Number of shares
based on accrued
dividends
Total number of
shares
Number of shares
to lapse
Number of shares
to vest
Value of vested
shares
£’000
1
André Lacroix 60,794 4,693 65,487 – 65,487 3,123
Colm Deasy
2
– – – – – –
Total 60,794 4,693 65,487 – 65,487 3,123
1. The value of shares vested is calculated using the average mid-market share price in the fourth quarter of 2024 which was £47.6895.
2. Appointed as an Executive Director on 17 March 2023.
The Committee considered the LTIP out-turns in the context of the underlying financial performance of the Group and determined it was appropriate not to exercise its discretion. There was no share appreciation on the shares
which vested below their award price.
LTIP Share Awards granted during the year (audited)
The following LTIP Share Awards were granted to the Executive Directors during 2024:
Executive Director Type of award Date of award
Basis of award
granted
Award price
£
Number of shares
over which award
was granted
Face value
of award
£’000
% of face value
that would vest
at threshold
performance
Vesting
determined by
performance over
André Lacroix LTIP Share Award 13 March 2024 300% of salary 49.808 61,922 3,084 25%
Three years to
31 December
2026
Colm Deasy LTIP Share Award 13 March 2024 200% of salary 49.808 17,0 65 850 25%
LTIP Share Award 5 June 2024 200% of salary 48.048 3,121 150 25%
The LTIP Share Awards granted in 2024 are conditional share awards subject to performance for the three-year period ending 31 December 2026. Shares are granted at the average of the mid-market quotation price for the
five days up to and including the day immediately before grant.
The performance conditions attached to this award and the targets are as follows:
Metric Performance condition Threshold target Maximum target
Earnings Per Share (1/3) Annualised fully diluted, adjusted EPS growth over a three year performance period, calculated on a constant currency basis
and per the EPS definition used for the Group’s KPIs in the 2024 Annual Report & Accounts. 4% 10%
Return on Invested Capital (1/3) Adjusted operating profits less adjusted tax over the three-year period ended 31 December 2026. Invested capital will be the
total of the year end invested capital base in each of the three years of the LTIP calculation period. 18.6% 22.6%
Adjusted Free Cash Flow (1/3) Free cash flow is the cash generated from operations less net capital expenditure, net interest paid and income tax paid.
Adjusted free cash flow adds back the cash outflow associated with SDI’s. This approach is consistent with the definition in
the 2024 Annual Report & Accounts. £1,210m £1,290m
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Deferred Share Awards granted during the year (audited)
Executive Director Type of award Date of award
Basis of award
granted
Award price
£
Number of shares
over which award
was granted
Face value
of award
£’000 Vesting date
1
André Lacroix Deferred Share
Award 13 March 2024
Deferral of
2023 bonus 49.808 14,229 709 13 March 2027
Colm Deasy Deferred Share
Award 13 March 2024
Deferral of
2023 bonus 49.808 4,961 247 13 March 2027
1. Vesting date subject to continued employment or good leaver status.
Share Plan Awards (audited)
The table below shows the Directors’ interests in the Intertek Share Plans, all of which are restricted stock units (‘RSUs’):
Type of Award
31 December 2023
Number of shares
Granted in 2024
Number of shares
Award price
1
£
Dividend accrued
in 2024
2
Vested in 2024
Number of shares
Lapsed in 2024
Number of shares
31 December 2024
Number of shares Date of vesting
André Lacroix
2021
LTIP Share
3,4
46,296 – 53.36 – (46,296) – – Mar 2024
Dividend
3,286 – – – (3,286) – –
LTIP Share
3,5
8,471 – 58.324 – (8,471) – – May 2024
Dividend
600 – – – (600) – –
2022
LTIP Share
3,6
60,794 – 48.762 – – – 60,794 Mar 2025
Dividend
3,107 – – 1,586 – – 4,693
Deferred Share
6
17, 225 – 48.762 – – – 17, 225 Mar 2025
Dividend
878 – – 448 – – 1,326
2023
LTIP Share
3,7
72,127 – 41.922 – – – 72,127 Mar 2026
Dividend
1,827 – – 1,883 – – 3,710
Deferred Share
7
4,947 – 41.922 – – – 4,947 Mar 2026
Dividend
124 – – 128 – – 252
2024
LTIP Share
3,9
– 61,922 49.808 – – – 61,922 Mar 2027
Dividend
– – – 1,616 – – 1,616
Deferred Share
9
– 14,229 49.808 – – – 14,229 Mar 2027
Dividend
– – – 371 – – 371
Total 219,682 76,151 6,032 (58,653) – 243,212
Intertek Group plc
Annual Report & Accounts 2024
2.122
Remuneration Committee Report Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Type of Award
31 December 2023
Number of shares
Granted in 2024
Number of shares
Award price
1
£
Dividend accrued
in 2024
Vested in 2024
Number of shares
Lapsed in 2024
Number of shares
31 December 2024
Number of shares Date of vesting
Colm Deasy
11
2023
LTIP Share
3,7
4,651 – 41.922 – – – 4,651 Mar 2026
Dividend
117 – – 121 – – 238
Deferred Share
7
1,581 – 41.922 – – – 1,581 Mar 2026
Dividend
39 – – 40 – – 79
LTIP Share
3,8
15,508 – 42.234 – – – 15,508 Jun 2026
Dividend
392 – – 404 – – 796
2024
LTIP Share
3,9
– 17, 0 65 49.808 – – – 17, 0 65 Mar 2027
Dividend
– – – 445 – – 445
Deferred Share
9
– 4,961 49.808 – – – 4,961 Mar 2027
Dividend
– – – 128 – – 128
LTIP Share
3,10
– 3,121 48.048 – – – 3,121 Jun 2027
Dividend
– – – 81 – – 81
Total 22,288 25,147 1,219 – – 48,654
1. Awards made are based on a share price obtained by averaging the closing share prices for the five dealing days before the date of grant.
2. The dividend shares are accrued on the date the dividend is paid and determined using the closing market price of the shares on that date. The dividend accruals relate to Share Awards made in lieu of not receiving cash dividends during the vesting period.
3. One-third of the LTIP Share Awards are subject to EPS, one-third on Return on Invested Capital and one-third on Adjusted Free Cash Flow. The LTIP shares will be subject to an additional two-year holding period post-vesting.
4. Awards vested on 12 March 2024, on which date the closing market price of shares was £50.08 , having been granted on 12 March 2021, on which date the closing market price was £53.06. Awards were made at a share price of £53.36 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
5. Awards vested on 27 May 2024, on which date the closing market price of shares was £50.40 , having been granted on 27 May 2021 on which date the closing market price was £54.82. Awards were made at a share price of £58.324 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
6. Awards will vest on 11 March 2025, subject to continued employment or good leaver status, having been granted on 11 March 2022 on which date the closing market price was £48.56. Awards were made at a share price of £48.762 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
7. Awards will vest on 13 March 2026, subject to continued employment or good leaver status, having been granted on 13 March 2023 on which date the closing market price was £40.26. Awards were made at a share price of £41.922 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
8. Awards will vest on 6 June 2026, subject to continued employment or good leaver status, having been granted on 6 June 2023 on which date the closing market price was £43.69. Awards were made at a share price of £42.234 being the share price obtained by averaging the closing share prices for the five dealing
days before the date of grant.
9. Awards will vest on 13 March 2027, subject to continued employment or good leaver status, having been granted on 13 March 2024 on which date the closing market price was £50.16. Awards were made at a share price of £49.808 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
10. Awards will vest on 5 June 2027, subject to continued employment or good leaver status, having been granted on 5 June 2024 on which date the closing market price was £49.34. Awards were made at a share price of £48.048 being the share price obtained by averaging the closing share prices for the five dealing
days before the date of grant.
11. Appointed as Director on 17 March 2023.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
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Malus and clawback (audited)
Malus and clawback will operate, in line with the Intertek Performance Adjustment policy, in respect of the
2021 Long Term Incentive Plan; the Intertek Deferred Share Plan; and Annual Incentive Plan. The reasons for
malus and clawback to be applied cover various circumstances including where there is reasonable evidence
of misbehaviour or material error, conduct considered gross misconduct, breach of any restrictive covenants
by participants, conduct which resulted in (a) significant loss(es) to the Company, failure to meet appropriate
standards of fitness and propriety, a material failure of management in the Company, a discovery of a material
misstatement in the audited consolidated accounts or the behaviour of a Director has a significant detrimental
impact on the reputation of the Group.
Clawback can be applied at any time during the clawback period, which is six years from the date of the
award unless extended by the Remuneration Committee prior to the expiry of the initial clawback period.
The Committee has the discretion to reduce annual incentive payments if it believes that short-term
performance has been achieved at the expense of the Group’s long-term future or vice versa. The Committee
also retains the discretion to reduce or reclaim payments if the performance achievements are subsequently
found to have been significantly misstated.
The committee did not use the malus or clawback provisions in the year under review.
Directors’ interests in ordinary shares (audited)
The interests of the Directors in the shares of the Company as at the year-end, or date of ceasing to be a Director, are set out below. Save as stated in this report, during the course of the year, no Director or any member of his
or her immediate family have any other interest in the ordinary share capital of the Company or any of its subsidiaries. None of the Non-Executive Directors have share options or share awards.
Beneficially
owned at
31 December
2023
Beneficially
owned at
31 December
2024 or on
ceasing to be a
Director
1
Outstanding
LTIP Share
Awards
2
Outstanding
Deferred
Shares
3
Shareholding as
a % of salary
4
Shareholding
Guideline met
André Lacroix
5
495,044 526,129 194,843 36,401 2,349 Yes
Colm Deasy
6
6,182 6,343 40,345 6,542 60 No
Andrew Martin 8,615 8,980 – – n/a n/a
Graham Allan 2,719 2,837 – – n/a n/a
Gurnek Bains 712 830 – – n/a n/a
Lynda Clarizio 364 478 – – n/a n/a
Tamara Ingram 355 469 – – n/a n/a
Jez Maiden 390 504 – – n/a n/a
Kawal Preet 140 254 – – n/a n/a
Gill Rider
7
1,122 1,240 – – n/a n/a
Apurvi Sheth – 118 – – n/a n/a
Jean-Michel Valette 10,730 10,847 – – n/a n/a
1. No changes in the above Directors’ interests have taken place between 31 December 2024 and 28 February 2025.
2. Subject to performance conditions.
3. Subject to continued employment or good leaver status.
4. Calculated as the number of shares beneficially owned at 31 December 2024 based on a share price of £47.28 as at 31 December 2024, being the last trading day, and applied to the annual salary for 2024.
5. Appointed 16 May 2015 with the guideline to hold 200% of base salary in shares by 16 May 2020. With effect from the AGM held on 26 May 2021, this was increased to 500% of base salary, which has been exceeded.
6. Appointed 17 March 2023 with a guideline to hold 300% of base salary.
7. As at 24 May 2024, the date she ceased to be a director of the Company.
Intertek Group plc
Annual Report & Accounts 2024
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Remuneration Committee Report Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Percentage change in remuneration levels
The table below shows the average movement in salary and annual incentive for UK employees between the 2019/20, 2020/2021, the 2021/2022, the 2022/2023 and the 2023/2024 financial year-ends. The UK total
employee population has been chosen as a comparator, as the parent company (Intertek Group plc) does not have any employees apart from the Directors.
Salary % Annual Incentive % Benefits%
2019/
2020
2020/
2021
2021/
2022
2022/
2023
2023/
2024
2019/
2020
2020/
2021
2021/
2022
2022/
2023
2023/
2024
2019/
2020
2020/
2021
2021/
2022
2022/
2023
2023/
2024
CEO (André Lacroix
1
) 1.0 1.4 1.5 2.0 2.7 (24.2) n/a (75.3) 241.4 42.9 (12.4) (2.3) 8.2 (0.8) 15.0
CFO (from 17 March 2023) (Colm Deasy
2
) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Average based on Intertek’s UK employees
3
3.2 n/a 4.1 3.4 0.4 (9.9) n/a n/a 15.8 (39.6) n/a n/a n/a n/a n/a
Chair of the Board (from 1 Jan 2021) (Andrew Martin) – 280.4 – – – n/a n/a n/a n/a n/a n/a – n/a (10.0) 22.2
Graham Allan – – – – 3.4 n/a n/a n/a n/a n/a – – – – –
Gurnek Bains – – – – – n/a n/a n/a n/a n/a (100.0) – – – –
Lynda Clarizio (from 1 March 2021) n/a – 23.1 – – n/a n/a n/a n/a n/a n/a – 350.0 – 160
Tamara Ingram (from 18 Dec 2020) n/a 32.5 11.8 2.8 – n/a n/a n/a n/a n/a n/a – – – –
Jez Maiden (from 26 May 2022) n/a n/a n/a n/a – n/a n/a n/a n/a n/a n/a n/a n/a n/a 350
Kawal Preet (from 31 December 2022) n/a n/a n/a n/a 9.7 n/a n/a n/a n/a n/a n/a n/a n/a n/a 40
Gill Rider (until 24 May 2024) – 11.7 1.2 – n/a n/a n/a n/a n/a n/a (63.5) n/a (100.0) – n/a
Apurvi Sheth (from 1 September 2023) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Jean-Michel Valette – 13.9 – – – n/a n/a n/a n/a n/a (48.9) (25.0) 180.0 – 225
1. The percentage change for incentive and benefits for André Lacroix are based on actual amounts earned from 2019, 2020, 2021, 2022, 2023 and 2024. The overnight increase in April 2024 was 3.0%.
2. Colm Deasy was appointed on 17 March 2023 as a director.
3. The Intertek UK employee group has been selected as the most appropriate comparator group, due to the diverse nature of the Group’s global employee population.
Non-Executive Director fees are set in advance for all Non-Executive Directors and any changes in salary percentages reflect that one comparator year was not a full year, or the Non-Executive Director changed Committee roles and there was an adjustment to their fees to reflect this, or a general
increase in fees which would be reflected in the table on page 2.113. Any changes in the Benefits % column would reflect the benefits in kind occurred in the performance of their duties (e.g. expenses for accommodation, travel or meals) – whether there is a claim depends on where the meetings
are held in relation to where the Director's place of work is considered to be or where n/a is shown this indicates that the director was not in role for the full period and the preceding period.
Jonathan Timmis ceased to be a director on 17 March 2023. In line with the previously disclosed arrangements
agreed with Jonathan Timmis, he had pro-rated deferred shares vest in the year of 8,894 at a share price of
£49.48 of which tax was retained at the rate of 47% leaving 4,713 shares which were sold with proceeds from
sale amounting to £232,848.44. In addition he had 12,802 LTIP shares vest of which 6,017 were retained to
cover tax and 6,785 were transferred to the nominee account as they are subject to a further two year post
vest holding period. The vesting price of these shares was £49.48. The Remuneration Committee determined
a 2023 bonus pro-rated to 17 March 2023 of £153,733.63. Half the amount was paid in cash in March 2024
and 50% deferred into shares (which will vest after a period of three years). All deferred share awards are
subject to malus and clawback provisions.
Payments for loss of office (audited)
There were no payments for loss of office other than the payments described above.
Post-employment share ownership requirements
In line with best practice on the post-cessation of employment shareholding guidelines, Executive Directors
are required to retain shares equivalent to the lower of their actual shareholding and in-employment
shareholding requirement for two years after ceasing employment with Intertek. These will be held in the
Company Nominee account with the date that the holding restriction falls away annotated on the account.
Payments to past Directors (audited)
Gill Rider stepped down from the Board on 24 May 2024. She received no compensation for loss of office
but received directors fee applicable for the period to 24 May 2024 when she was a director of the company.
Intertek Group plc
Annual Report & Accounts 2024
2.125
Remuneration Committee Report Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
CEO pay ratio
The following table sets out the CEO’s pay ratio, comparing
the CEO’s total remuneration against that of UK employees.
The table below shows the required information from 2019
through to 2024.
Method
25th
percentile
pay ratio
Median
pay ratio
75th
percentile
pay ratio
2024
CEO Option B 214:1 168:1 113:1
2023
CEO
1
Option B 195:1 139:1 98:1
2022
CEO Option B 112:1 89:1 57:1
2021
CEO Option B 117:1 90:1 56:1
2020
CEO Option B 94:1 72:1 50:1
2019
CEO Option B 205:1 152:1 107:1
1. These ratios have been updated to reflect actual LTI vesting value in the single pay
figure.
The regulations also require the total pay and benefits and
the salary component of total pay to be set out as follows:
Base
salary
£
Total pay
and
benefits
£
CEO remuneration 1,051,206 6,463,649
UK employee 25th percentile 27, 36 4 30,211
UK employee median 36,224 38,541
UK employee 75th percentile 48,922 56,983
In terms of reporting options, the Company chose option B, using
the most recent gender pay gap information to determine the
relevant employees at the 25th, 50th and 75th percentile to
compare to CEO pay, as that data was already available and is
used for other reporting purposes. It refers to gender pay data
as of 1 April 2024 and uses the single total figure methodology
for the identified individuals. The pay and benefits for the
employees at the quartiles are their total actual annual pay
and benefits as of 31 December 2024.
With regards to representativeness of the ratios, Intertek is a
very diverse employer and has employees in many UK locations.
Our employees have many different qualifications and are
working in and serving almost all major industries. As a
consequence, it is unlikely that there is any one single individual
whose pay and benefits are representative of Intertek UK as a
whole. Intertek has therefore also looked at the total pay of the
individuals immediately above and below the 25th, 50th and
75th percentile. Looking at the spread of resulting ratios, it was
decided that the ‘best equivalent’ would be the arithmetic mean
of the total pay of three individuals around each reporting point:
• For the three employees around the 25th percentile: Ratios
ranged from 202:1 to 240:1, with an arithmetic mean of 214:1.
• For the three employees around the 50th percentile: Ratios
ranged from 165:1 to 171:1, with an arithmetic mean of 168:1.
• For the three employees around the 75th percentile: Ratios
ranged from 99:1 to 128:1, with an arithmetic mean of 113:1.
When calculating total pay and rewards, no pay components
were omitted. The Company used the calculation methodology
as set out in the relevant regulations (The Companies
(Miscellaneous Reporting) Regulations 2018). For part-time
employees, their relevant pay and benefit components have
been adjusted to the equivalent full-time figure for the relevant
business. Full-time equivalent hours can vary across locations
and legal entities.
The pay ratio reflects how remuneration arrangements differ as
responsibility increases for more senior roles in the organisation,
including reflecting that an increased proportion is based on
performance-related variable pay and short-term based
incentives for more senior executives. The Committee is
therefore comfortable that the pay ratio reflects the pay
and progression policies at Intertek.
Relative importance of the spend on pay
The table below shows the movement in spend on staff
costs between the 2023 and 2024 financial years, compared
to dividends.
2024
£m
2023
£m
%
change
Staff costs
1
1,492.4 1,450.2 2.9%
Dividends 206.1 176.3 16.9%
1. Staff costs are shown at actual rates. At constant currency, staff costs increased by
7.5%, reflecting a 4.6% foreign exchange impact.
Performance graph
Consistent with prior years, the graph alongside shows the
TSR in respect of the Company over the last ten financial
years, compared with the TSR for the full FTSE 100 Index.
The FTSE 100 is selected as the comparator group as it is a
good representation of peer group companies and Intertek is
a constituent of the FTSE 100. TSR, reflecting the change in
the value of a share and dividends paid, can be represented
by the value of a notional £100 invested at the beginning of
a period and its change over that period.
0
50
100
150
200
250
300
350
Intertek Group
FTSE 100
2014 2015 2017 2018 2021 2022 2023 2024202020192016
£
Intertek Group plc
Annual Report & Accounts 2024
2.126
Remuneration Committee Report Continued
3: Financial Report2: Sustainability Report1: Strategic Report
CEO total remuneration
The total remuneration figures for the CEO during each of the past ten financial years are shown in the table below. Consistent with the calculation methodology for the single figure for total remuneration, the total
remuneration figure includes the total annual incentive and Deferred Share Award based on that year’s performance and LTIP share awards based on the three-year performance period ending in the relevant year.
The annual incentive payout and LTIP award vesting level as a percentage of the maximum opportunity are also shown for each of these years.
W Hauser
2015
A Lacroix
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total remuneration £’000 876 1,824 5,452
1
11,417
1
6,223 4,986 2,470 3,048 3,080 5,675
2
6,464
Annual incentive (%) 90.6 96.6 70.2 100.0 75.5 52.3 0.0 85.0 20.6 68.9 95.6
LTIP award vesting (%) – – – 90.9 98.3 89.4 41.5 0.0 66.7 100.0 100.0
1. As reported in previous years, at the time of joining, the Company had bought out André’s existing share awards with his previous employer in two tranches of 91,575 and 91,574 shares vesting in 2016 and 2017, each at an award price of £28. The tranche that vested in 2017 vested at a share price of £42.95,
which represents an increase in our Company share price over the two years of over 53%. These awards were one-off awards and not part of his ongoing remuneration.
2. This figure has been updated to show the actual value of the vested LTIP award based on the share price of £50.08, whilst the 2023 Annual Report included figures based on the share price for the final quarter of 2023 (£40.11). There was no discretion exercised in respect of the awards.
The graph below shows the total remuneration of the Intertek CEO over the ten-year period from 2015 to 2024.
2015 (WH)
1
2015 (AL)
2
2016 2017 2018 20202019 2021 2022 2023 2024
0
2,000
4,000
6,000
8,000
10,000
12,000
£’000
Mirror awards
LTIP (share price increase)
4
LTIP (award share price)
3
Annual incentive
Pension
Benefits
Salary
1. Shows W Hauser remuneration based on period to 15 May 15
2. Shows A Lacroix remuneration for the period from appointment as CEO on 6 May 15
3. LTIP (award share price) shows the proportion of the LTIP value received which resulted from the share price on award date
4. LTIP (share price increase) shows the proportion of the LTIP value received which resulted from increase in the share price over the vesting period
Approval of the Directors’ Remuneration report
The Directors’ Remuneration report, including both the Directors’ Remuneration Policy and the Annual report on remuneration, was approved by the Board on 3 March 2025.
Graham Allan
Chair of the Remuneration Committee
Intertek Group plc
Annual Report & Accounts 2024
2.127
3: Financial Report1: Strategic Report 2: Sustainability Report
Other Disclosures
In accordance with the requirements of the Companies Act 2006
(‘Act’) and the Disclosure Guidance and Transparency Rules
(‘DTR’) of the Financial Conduct Authority (‘FCA’), the following
section describes the matters that are required for inclusion
in the Directors’ report and which have been approved by the
Board. Further details of matters required to be included in the
Directors’ report are incorporated by reference into this report
and set out below.
Annual Report & Accounts and compliance with UK Listing
Rule (‘UKLR’) UKLR 6.6.1 R
The Annual Report & Accounts is in a three report format:
Strategic Report – Report 1; Sustainability Report/Directors'
report – Report 2; and Financial Report – Report 3. The Board
has prepared a Strategic Report in Report 1 which provides
an overview of the development and performance of the
Company’s business together with any research and
development activities during the year ended 31 December
2024 and its position at the end of that year. The Strategic
Report additionally outlines any important events since the
end of the financial year and likely future developments in the
business of the Company and Group.
For the purposes of compliance with DTR 4.1.5 R (2) and DTR
4.1.8 R, the required content of the management report can be
found in the Strategic Report and this Directors’ report in Report 2,
including the sections of the Annual Report & Accounts, being
Reports 1, 2 and 3, incorporated by reference.
For the purposes of UKLR 6.6.4 R, the information required to be disclosed by UKLR 6.6.1 R can be found in the table below.
Topic Location and page
1. Amount of interest capitalised Not applicable
2. Any information required by UKLR 6.2.23 R (Publication of
unaudited financial information)
Not applicable
3. Details of long-term incentive schemes Directors’ Remuneration Committee
report (pages 2.94-2.126)
4. Waiver of emoluments by a Director Not applicable
5. Waiver of future emoluments by a Director Not applicable
6. Non pre-emptive issues of equity for cash Not applicable
7. Information required by Topic 6 above for any unlisted major
subsidiary undertaking of the Company
Not applicable
8. Company participation in a placing by a listed subsidiary Not applicable
9. Any contracts of significance Other Disclosures (page 2.129)
10. Any contracts for the provision of services by a controlling shareholder Not applicable
11. Shareholder waivers of dividends Other Disclosures (page 2.128)
12. Shareholder waivers of future dividends Other Disclosures (page 2.128)
13. Agreements with controlling shareholders Not applicable
Intertek Group plc
Annual Report & Accounts 2024
2.128
Other Disclosures Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Directors
The names of the members of the Board, as at the date of
this report, and their biographical details are set out on
pages 2.66-2.68.
Articles of Association
The Company’s Articles of Association contain provisions
relating to the retirement, election and re-election of Directors
but, in accordance with best practice, all Directors who wish to
continue to serve will stand for election and re-election at the
Annual General Meeting (‘AGM’).
The Articles of Association set out the internal regulation of the
Company and cover such matters as the rights of shareholders,
the appointment or removal of Directors and the conduct of the
Board and general meetings. Copies are available upon request
from the Group Company Secretary and are available at the
Company’s AGM. Further powers are granted by members in
general meetings and those currently in place are set out in
detail on the next page.
Directors’ indemnities
The Board believes that it is in the best interests of the Group to
attract and retain the services of the most able and experienced
Directors by offering competitive terms of engagement,
including the granting of indemnities on terms consistent with
the applicable statutory provisions. In accordance with the
Articles of Association, the Company has executed deed polls
of indemnity for the benefit of the Directors of the Company.
These provisions, which are deemed to be qualifying third-party
indemnity provisions (as defined by section 234 of the Act),
were in force during the financial year ended 31 December 2024
for the benefit of the Directors and, at the date of this report,
remain in force in relation to certain losses and liabilities which
they may incur (or have incurred) in connection with their duties,
powers or office.
Directors’ interests
Other than the Directors’ service agreements or letters of
appointment, none of the Directors of the Company had a
personal interest in any business transactions of the Company or
its subsidiaries. The terms of the Directors’ service agreements or
letters of appointment and the Directors’ interests in shares and
share awards of the Company, in respect of which transactions
are notifiable to the Company and the FCA under Article 19 of
the UK Market Abuse Regulation, are disclosed in the Directors’
Remuneration report.
Directors’ powers
The Directors are responsible for the strategic management of
the Company and their powers to do so are determined by the
provisions of the Act and the Company’s Articles of Association.
Dividend
The Directors are recommending a final dividend of 102.6p per
ordinary share (2023: 74.0p) making a full-year dividend of
156.5p per ordinary share (2023: 111.7p) which will, if approved
at the AGM, be paid on 20 June 2025 to shareholders on the
register at the close of business on 30 May 2025.
Share capital
The issued share capital of the Company and the details of the
movements in the Company’s share capital during the year are
shown in note 15 in Report 3.
The holders of ordinary shares are entitled to receive
dividends when declared, receive the Company’s Annual
Report & Accounts, attend and speak at general meetings
of the Company, appoint proxies and exercise voting rights.
A waiver of dividend exists in respect of the 409,467 shares
held by the Intertek Group Employee Share Ownership Trust
(‘Trust’) as of 31 December 2024 and with respect to future
dividends. Details of the shares purchased by the Trust during
the year are outlined in note 15 in Report 3. There are no
restrictions on the transfer of ordinary shares in the Company.
The rights attached to shares in the Company are provided by
the Articles of Association, which may be amended or replaced
by means of a special resolution of the Company in a general
meeting. The Directors’ powers are conferred on them by UK
legislation and by the Company’s Articles of Association.
No ordinary shares carry any special rights with regard to the
control of the Company and there are no restrictions on voting
rights except that a shareholder has no right to vote in respect
of a share unless all sums due in respect of that share are fully
paid. There are no arrangements known to the Company by
which financial rights carried by any shares in the Company are
held by a person other than the holder of the shares, nor are
there any arrangements between holders of securities that may
result in restrictions on the transfer of securities or on voting
rights known to the Company. All issued shares are fully paid.
Shares are admitted to trading on the London Stock Exchange
and may be traded through the CREST system.
Intertek Group plc
Annual Report & Accounts 2024
2.129
Other Disclosures Continued
3: Financial Report1: Strategic Report 2: Sustainability Report
Allotment of shares
At the AGM held in 2024, the shareholders generally and
unconditionally authorised the Directors to allot relevant
securities up to approximately two-thirds of the nominal
amount of issued share capital.
It is the Directors’ intention to seek renewal of this authority
in line with guidance issued by the Investment Association.
The resolution will be set out in the Notice of AGM.
At the AGM held in 2024, the Directors were also empowered
by the shareholders to allot equity securities, up to 5% of the
Company’s issued share capital, for cash under section 570 of
the Act. It is intended that this authority be renewed at the
forthcoming AGM.
It is the Board’s intention to also propose the renewal of the
additional special resolution to allow the Company to allot
equity securities up to a further 5% of the Company’s issued
share capital. This is applicable when the Board determines a
transaction to be an acquisition or other capital investment and
is announced contemporaneously with the allotment or has
taken place in the preceding six-month period and is disclosed
in the announcement of the allotment.
Purchase of own shares
Shareholders also approved the authority for the Company
to buy back up to 10% of its own ordinary shares by market
purchase until the conclusion of the AGM to be held this year.
The Directors will seek to renew this authority for up to 10%
of the Company’s issued share capital at the forthcoming AGM.
This power will only be exercised if the Directors are satisfied
that any purchase will increase the earnings per share of
the ordinary share capital in issue after the purchase, and
accordingly, that the purchase is in the interests of shareholders.
The Directors will also give careful consideration to gearing
levels of the Company and its general financial position. Any
shares purchased in this way may be held in treasury which, the
Directors believe, will provide the Company with flexibility in the
management of its share capital. Where treasury shares are used
to satisfy Share Awards, they will be classed as new issue shares
for the purpose of the 10% limit on the number of shares that
may be issued over a ten-year period under the relevant share
plan rules. The Company currently holds no shares in treasury.
Significant agreements
The Company is not a party to significant agreements
which take effect, alter or terminate upon a change of control
following a takeover bid apart from a number of credit facilities
with banks together with certain senior notes issued by the
Company. The total amount owing under such credit facilities
and senior note agreements as of 31 December 2024 is shown
in note 14 to the financial statements on page 3.28 in Report 3.
These agreements contain clauses such that, in the event of a
change of control, the Company can offer to or must repay all
such borrowings together with accrued interest, fees and other
sums owing as required by the individual agreements.
The rules of the Company’s incentive plans contain clauses
relating to a change of control resulting from a takeover and, in
such an event, awards would vest subject to the satisfaction of
any associated performance criteria. The Company is not aware
of any other agreements with change of control provisions that
are considered to be significant in terms of their potential impact
to the business.
There are no significant agreements or contracts in place
with any Group Company and a Director of the Company or
a major shareholder.
Our people
Information about the Group’s employees, employment of
disabled persons policies and employment practices is contained
within this report on pages 2.13-2.26. Information on the
employee share schemes is in the Directors’ Remuneration
report and note 17, on pages 3.38-3.39 in Report 3. The steps
by the Company taken to inform, engage and consult with
employees is outlined on page 2.16 and in the Section 172
statement on page 2.72.
Material interests in shares
Up to 3 March 2025, being the latest practicable date before
the publication of this report, the following disclosures of
major holdings of voting rights have been made (and have
not been amended or withdrawn) to the Company pursuant
to the requirements of DTR 5. The Company is not aware of
any changes in the interests disclosed under DTR 5 since the
year end.
At date of notification
Shareholder
Direct voting
rights
Indirect voting
rights
Percentage of
voting rights
attached to
shares
Voting rights
through financial
instruments
Percentage of
voting rights
through financial
instruments
Total voting
rights
Percentage of
total voting
rights
BlackRock Inc. – 10,473,019 6.49% 1,392,394 0.85% 11,865,413 7.34%
Massachusetts Financial Services Company – 8,068,287 4.99% – – 8,068,287 4.99%
Fiera Capital Corporation
– 8,010,553 4.96% – – 8,010,553 4.96%
These holdings are published on a Regulatory Information Service and on the Company’s website.
Intertek Group plc
Annual Report & Accounts 2024
2.130
Other Disclosures Continued
3: Financial Report2: Sustainability Report1: Strategic Report
Stakeholders
Information on the steps taken by the Company to inform,
engage and consult with our stakeholders is outlined on pages
2.27 and in the Section 172 statement on pages 2.76 and 2.77.
Energy Use and Greenhouse Gas (‘GHG’) emissions
Information about the Group’s energy use, GHG emissions and
methodologies used for their calculation are given in this report
on pages 2.38-2.41.
Task Force on Climate-Related Financial Disclosures
('TCFD')
The climate-related financial disclosures consistent with TCFD
recommendations are on pages 1.65-1.73 in Report 1.
Political donations
At the AGM in 2024, shareholders passed an ordinary resolution,
on a precautionary basis, to authorise the Company to make
donations to UK political organisations and to incur UK political
expenditure (as such items are defined in the Act) not exceeding
£90,000.
During the year the Group did not make any such political
donations (2023: £nil). It is the Company’s policy not to, directly
or through any subsidiary, make what are commonly regarded as
donations to any political party.
At the forthcoming AGM of the Company, shareholders’ approval
will again be sought to authorise the Group to make political
donations and/or incur political expenditure (as such terms are
defined in section 362 to 379 of the Act). Further information is
contained in the Notice of AGM.
Branches
The Company, through various subsidiaries, has established
branches in a number of different countries in which the
business operates. The list of related undertakings is available
in note 23 in Report 3.
Independent auditors
The auditor, PricewaterhouseCoopers LLP, have expressed their
willingness to continue in office. Upon the recommendation of
the Audit Committee, a resolution to reappoint them as auditors
and to determine their remuneration will be proposed at the
forthcoming AGM.
Financial instruments
Details about the Group’s use of financial instruments are
outlined in note 14 in Report 3.
Annual General Meeting
The Notice of AGM, which is to be held on 22 May 2025,
is available for download from the Company’s website at
intertek.com/investors. The Notice details the business to be
conducted at the meeting and includes information concerning
the deadlines for submitting proxy forms and in relation to
voting rights.
Statement of disclosure of information to auditors
The Directors who held office at the date of approval of this
Directors’ report confirm that, so far as they are aware, there is
no relevant audit information of which the Company’s auditors
are unaware and each Director has taken all reasonable steps
that he or she ought to have taken as a Director of the Company
to make themselves aware of any relevant audit information and
to establish and ensure that the Company’s auditors are aware
of that information.
Intertek Group plc
Annual Report & Accounts 2024
2.131
3: Financial Report1: Strategic Report 2: Sustainability Report
The Directors are responsible for preparing the Annual Report
& Accounts, including the financial statements, in accordance
with applicable law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have prepared the Group financial statements
in accordance with UK-adopted international accounting
standards and the Company financial statements in
accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 101 'Reduced Disclosure Framework', and
applicable law).
Under company law, Directors must not approve the financial
statements unless they are satisfied that they give a true and
fair view of the state of affairs of the Group and Company and
of the profit or loss of the Group for that period. In preparing
the financial statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• state whether applicable UK-adopted international
accounting standards have been followed for the Group
financial statements and United Kingdom Accounting
Standards, comprising FRS 101, have been followed for
the Company financial statements, subject to any
material departures disclosed and explained in the
financial statements;
• make judgements and accounting estimates that are
reasonable and prudent; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the Group
and Company will continue in business.
The Directors are responsible for safeguarding the assets of
the Group and Company and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors are also responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s and Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the
Group and Company and enable them to ensure that the
financial statements and the Directors’ Remuneration report
comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity
of the Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the Annual Report & Accounts,
taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess
the Group’s and Company’s position and performance, business
model and strategy.
Each of the Directors, whose names and functions are listed in
the Directors’ report, confirm that, to the best of their knowledge:
• the Group financial statements, which have been prepared
in accordance with UK-adopted international accounting
standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Group;
• the Company financial statements, which have been prepared
in accordance with United Kingdom Accounting Standards,
comprising FRS 101, give a true and fair view of the assets,
liabilities and financial position of the Company; and
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the
Group and Company, together with a description of the
principal risks and uncertainties that it faces.
In the case of each Director in office at the date the Directors’
report is approved:
• so far as the Director is aware, there is no relevant audit
information of which the Group’s and Company’s auditors
are unaware; and
• they have taken all the steps that they ought to have taken as
a Director in order to make themselves aware of any relevant
audit information and to establish that the Group’s and
Company’s auditors are aware of that information.
André Lacroix
Chief Executive Officer
3 March 2025
Registered Office:
33 Cavendish Square, London W1G 0PS
Registered Number: 04267576
in respect of the financial statements
Statement of Directors Responsibilities
Intertek Group plc
Annual Report & Accounts 2024
2.132
Notes
3: Financial Report2: Sustainability Report1: Strategic Report
Printed by a CarbonNeutral® Company certified to
ISO 14001 environmental management system.
Printed on material from well-managed, FSC®
certified forests and other controlled sources.
100% of the inks used are HP Indigo ElectroInk
which complies with RoHS legislation and meets
the chemical requirements of the Nordic Ecolabel
(Nordic Swan) for printing companies, 95% of press
chemicals are recycled for further use and, on
average 99% of any waste associated with this
production will be recycled and the remaining 1%
used to generate energy.
The paper is Carbon Balanced with World Land
Trust, an international conservation charity, who
offset carbon emissions through the purchase and
preservation of high conservation value land.
Through protecting standing forests, under threat
of clearance, carbon is locked-in, that would
otherwise be released.
CBP00019082504183028
Intertek Group plc
33 Cavendish Square,
London, W1G 0PS
United Kingdom
Tel +44 20 7396 3400
info@intertek.com
intertek.com
VISIT: INTERTEK.COM/INVESTORS
Annual Report &
Accounts 2024
Financial Report
the power of
amazing
the power of
amazing
3.01 Consolidated income statement
3.02 Consolidated statement
ofcomprehensive income
3.03 Consolidated statement
offinancialposition
3.04 Consolidated statement
ofchangesinequity
3.06 Consolidated statement ofcashflows
3.07 Notes to the financial statements
3.51 Intertek Group plc – Company
balancesheet
3.52 Intertek Group plc – Company statement
of changes inequity
3.53 Notes to the Company
financialstatements
3.57 Independent Auditors’ Report
3.64 Glossary – Alternative
performance measures
3.67 Shareholder and corporate information
Contents
VISIT: INTERTEK.COM/INVESTORS
The power of amazing lies in the energy and passion
of our incredible colleagues and the work they do
every day. At Intertek, we constantly strive to be
ever better. For over 130 years, we have been
pioneers, lighting the way with ingenious solutions
that touch every partof modern life. Our culture
empowers our people and creates sustainable
growth and value for all ourstakeholders.
Our caring and trusted people live by our Values,
workingwith passion and integrity to make a real
difference. Their energy and commitment ensure our
customers become ever more resilient, and that we all
thrive and work together to make the world better, safer
andmore sustainable.
We are pleased to share with
you our Annual Report & Accounts
in a unique, three-report format:
Report 1: Strategic Report
Where we discuss our growth
opportunities and strategic performance.
Report 2: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Report 3: Financial Report
Where we record our financial
activities, performance and position.
These separate, but connected reports, withtheir
interconnected themes and narratives, allow us to
present what we achieved in 2024 in a systemic,
end-to-end architecture. They have been designed to
make it easier for our stakeholders to fully understand
our business, how we bring quality, safety and
sustainability to life, what we offer our clients and
society, and the opportunities we have ahead of us.
Intertek Group plc
Annual Report & Accounts 2024
3.01
Consolidated income statement
2: Sustainability Report1: Strategic Report 3: Financial Report

|  |  | Separately |  |  | Separately |
|  | Adjusted | Disclosed | Total | Adjusted | Disclosed | Total
|  | results* | Items* | 2024 | results* | Items* | 2023
For the year ended 31 December | Notes | £m | £m | £m | £m | £m | £m
Revenue | 2 | 3 ,3 93. 2 | – | 3,3 93. 2 | 3, 3 2 8 .7 | – | 3,3 2 8 .7
Operating costs | 4 | (2 , 8 03. 1) | (5 4.4) | ( 2 , 8 5 7. 5) | (2,777 .6) | (6 4.9) | (2, 842.5)
Group operating profit/(loss) | 2 | 59 0 .1 | (5 4. 4) | 535 .7 | 551 . 1 | (64. 9) | 4 86. 2
Finance income | 14 | 2.5 | – | 2.5 | 3.8 | – | 3.8
Finance expense | 14 | (4 4. 8) | (3.4) | (4 8. 2) | (4 7. 7 ) | (20.0) | (6 7. 7 )
Net financing costs |  | (42.3) | (3.4) | (45.7) | (43 . 9) | (20.0) | (63.9)
Profit/(loss) before income tax |  | 5 4 7. 8 | (5 7. 8) | 49 0 .0 | 5 0 7. 2 | (8 4.9) | 4 22.3
Income tax (expense)/credit | 6 | (1 35. 2) | 12 .4 | (122 .8) | (1 24 . 8) | 20.6 | (104. 2)
Profit/(loss) for the year | 2 | 41 2 . 6 | (45.4) | 3 6 7. 2 | 38 2.4 | (6 4. 3) | 318 . 1
Attributable to: |  |  |  |  |  |  |
Equity holders of the Company |  | 390.8 | (45 .4) | 3 45. 4 | 3 6 1.7 | (6 4.3) | 297.4
Non-controlling interest | 20 | 21 . 8 | – | 21 . 8 | 20.7 | – | 20. 7
Profit/(loss) for the year |  | 412 . 6 | (45. 4) | 3 6 7. 2 | 3 82 .4 | (6 4.3) | 318 .1
Earnings per share** |  |  |  |  |  |  |
Basic | 7 |  |  | 214. 4 p |  |  | 184 .4 p
Diluted | 7 |  |  | 212 .7p |  |  | 183 .4 p

* See note 3.
** Earnings per share on the adjusted results is disclosed in note 7.
Intertek Group plc
Annual Report & Accounts 2024
3.02
Consolidated statement of comprehensive income
2: Sustainability Report1: Strategic Report 3: Financial Report

|  | 2024 | 2023
For the year ended 31 December | Notes | £m | £m
Profit for the year | 2 | 3 6 7. 2 | 318 . 1
Other comprehensive income/(expense) |  |  |
Remeasurements on defined benefit pension schemes | 16 | 3.7 | (2.6)
Tax on comprehensive income items | 6 | 6.0 | 3. 0
Items that will never be reclassified to profit or loss |  | 9.7 | 0 .4
Foreign exchange translation differences of foreign operations |  | (6 4. 8) | ( 14 7. 1)
Net exchange gain/(loss) on hedges of net investments in foreign operations |  | 1 .7 | 58.8
Gain/(loss) on fair value of cash flow hedges |  | – | (0 . 1)
Items that are or may be reclassified subsequently to profit or loss |  | (63. 1) | (8 8 .4)
Total other comprehensive income/(expense) for the year |  | (53. 4) | (8 8. 0)
Total comprehensive income for the year |  | 313 .8 | 230 .1
Total comprehensive income for the year attributable to: |  |  |
Equity holders of the Company |  | 291 . 4 | 211. 6
Non-controlling interest | 20 | 22 .4 | 18 . 5
Total comprehensive income for the year |  | 313 .8 | 230 .1

Intertek Group plc
Annual Report & Accounts 2024
3.03
Consolidated statement of financial position
2: Sustainability Report1: Strategic Report 3: Financial Report

|  | 2024 | 2023
As at 31 December | Notes | £m | £m
Assets |  |  |
Property, plant and equipment | 8 | 692 .8 | 6 69. 6
Goodwill | 9 | 1,365.9 | 1,385.8
Other intangible assets | 9 | 30 4.2 | 330 . 9
Trade and other receivables | 11 | 15 .4 | 21. 8
Defined benefit pension asset | 16 | 2 7. 2 | 21.8
Deferred tax assets | 6 | 34.5 | 3 6.4
Total non-current assets |  | 2,4 4 0.0 | 2,4 66 .3
Inventories* |  | 19.0 | 17. 2
Trade and other receivables* | 11 | 754.9 | 725. 1
Cash and cash equivalents | 14 | 343 .0 | 29 9.3
Current tax receivable |  | 42.4 | 30.0
Total current assets |  | 1 ,159. 3 | 1, 07 1 .6
Total assets |  | 3,59 9 . 3 | 3 , 5 3 7. 9
Liabilities |  |  |
Interest-bearing loans and borrowings | 14 | (101 .3) | (9 7. 5)
Current taxes payable |  | (6 7. 2) | (6 0.5)
Lease liabilities | 14 | (70 .1) | (69 .9)
Trade and other payables* | 12 | (7 5 7. 6) | (735. 6)
Provisions* | 13 | (53 . 9) | (18 . 0)
Total current liabilities |  | (1, 050.1) | (981. 5)
Interest-bearing loans and borrowings | 14 | (74 1 . 5) | (8 12.4)
Lease liabilities | 14 | (22 9. 5) | ( 2 3 7. 9)
Deferred tax liabilities | 6 | (69. 9) | (75.3)
Defined benefit pension liabilities | 16 | (5.2) | (4. 8)
Trade and other payables* | 12 | (49 . 8) | (3 0 . 1)
Provisions* | 13 | (8 .4) | (35 . 8)
Total non-current liabilities |  | (1 ,10 4. 3) | (1 , 19 6. 3)
Total liabilities |  | (2,1 54.4) | (2 , 1 7 7. 8 )
Net assets |  | 1,4 4 4.9 | 1,360.1

|  | 2024 | 2023
As at 31 December | Notes | £m | £m
Equity |  |  |
Share capital | 15 | 1.6 | 1.6
Share premium |  | 2 5 7. 8 | 2 5 7. 8
Other reserves |  | (191 . 2) | ( 1 2 7. 5 )
Retained earnings |  | 1,333 .7 | 1, 191. 5
Total equity attributable to equity holders of the Company |  | 1, 4 01 .9 | 1,323. 4
Non-controlling interest | 20 | 43. 0 | 3 6 .7
Total equity |  | 1,4 4 4.9 | 1,360.1

* Working capital of negative £95. 9m (2023: negative £78 . 8m) comprises the asterisked items in the above statement of financial position
less the IFRS 16 lease receivable of £0 .1m (2023: £1.6 m).
The financial statements on pages 3.01 to 3.50 were approved by the Board on 3 March 2025 and were signed
on its behalf by:
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
Intertek Group plc
Annual Report & Accounts 2024
3.04
Consolidated statement of changes in equity
2: Sustainability Report1: Strategic Report 3: Financial Report

|  |  |  |  |  |  | Attributable to equity holders of the Company |  |
|  |  |  |  |  | Other reserves |  |  |
|  |  |  |  |  |  | Total before |  |
|  |  |  |  |  |  | non- | Non- |
|  |  | Share | Translation |  | Retained | controlling | controlling | Total
|  | Share capital | premium | reserve | Other | earnings | interest | interest | equity
For the year ended 31 December | Notes | £m | £m | £m | £m | £m | £m | £m | £m
At 1 January 2023 |  | 1.6 | 2 5 7. 8 | (4 7. 7 ) | 6 .4 | 1,065.9 | 1, 28 4.0 | 3 4.0 | 1,318.0
Total comprehensive income for the year |  |  |  |  |  |  |  |  |
Profit |  | – | – | – | – | 297.4 | 297.4 | 20.7 | 318 . 1
Other comprehensive income/(expense) |  | – | – | (8 6. 1) | (0 . 1) | 0 .4 | (85.8) | (2. 2) | (8 8.0)
Total comprehensive income for the year |  | – | – | (8 6. 1) | (0 . 1) | 2 9 7. 8 | 211.6 | 18 . 5 | 23 0. 1
Transactions with owners of the Company recognised directly in equity |  |  |  |  |  |  |  |  |
Contributions by and distributions to the owners of the Company |  |  |  |  |  |  |  |  |
Dividends paid | 15 | – | – | – | – | (17 6 . 3) | (17 6 . 3) | (15 . 1) | (191 .4)
Changes in non-controlling interest | 20 | – | – | – | – | – | – | (0 .7) | (0 .7)
Purchase of own shares | 15 | – | – | – | – | (11.6) | (11.6) | – | (11.6)
Tax paid on Share Awards vested* | 17 | – | – | – | – | (5.6) | (5.6) | – | (5.6)
Equity-settled transactions | 17 | – | – | – | – | 21.2 | 21. 2 | – | 21. 2
Income tax on equity-settled transactions | 6 | – | – | – | – | 0.1 | 0.1 | – | 0.1
Total contributions by and distributions to the owners of the Company |  | – | – | – | – | (17 2 . 2) | (17 2 . 2) | (15.8) | (18 8 .0)
At 31 December 2023 |  | 1.6 | 2 5 7. 8 | (133. 8) | 6.3 | 1,19 1.5 | 1,323. 4 | 3 6 .7 | 1,360.1

* The tax paid on Share Awards vested is related to settlement of the tax obligation on behalf of employees by the Group via the sale of a portion of the equity-settled shares.
Intertek Group plc
Annual Report & Accounts 2024
3.05
Consolidated statement of changes in equity Continued
2: Sustainability Report1: Strategic Report 3: Financial Report

|  |  |  |  |  |  | Attributable to equity holders of the Company |  |
|  |  |  |  |  | Other reserves |  |  |
|  |  |  |  |  |  | Total before |  |
|  |  |  |  |  |  | non- | Non- |
|  |  | Share | Translation |  | Retained | controlling | controlling | Total
|  | Share capital | premium | reserve | Other | earnings | interest | interest | equity
For the year ended 31 December | Notes | £m | £m | £m | £m | £m | £m | £m | £m
At 1 January 2024 |  | 1.6 | 2 5 7. 8 | (133 .8) | 6.3 | 1 ,191 . 5 | 1, 323. 4 | 36 .7 | 1,36 0.1
Total comprehensive income for the year |  |  |  |  |  |  |  |  |
Profit |  | – | – | – | – | 345 .4 | 3 45. 4 | 21 . 8 | 3 6 7. 2
Other comprehensive income/(expense) |  | – | – | (6 3.7) | – | 9 .7 | (5 4.0) | 0.6 | (53 .4)
Total comprehensive income for the year |  | – | – | (6 3.7) | – | 355.1 | 2 91 .4 | 22 .4 | 31 3. 8
Transactions with owners of the Company recognised directly in equity |  |  |  |  |  |  |  |  |
Contributions by and distributions to the owners of the Company |  |  |  |  |  |  |  |  |
Dividends paid | 15 | – | – | – | – | (20 6 .1) | (2 0 6 .1) | (16. 1) | (222. 2)
Changes in non-controlling interest | 20 | – | – | – | – | – | – | – | –
Purchase of own shares | 15 | – | – | – | – | (24 .7) | (24 .7) | – | (24 .7)
Tax paid on Share Awards vested* | 17 | – | – | – | – | (7. 4) | ( 7. 4) | – | ( 7. 4)
Equity-settled transactions | 17 | – | – | – | – | 24. 4 | 24 . 4 | – | 24 . 4
Income tax on equity-settled transactions | 6 | – | – | – | – | 0.9 | 0. 9 | – | 0.9
Total contributions by and distributions to the owners of the Company |  | – | – | – | – | (21 2. 9) | (212 . 9) | (16 .1) | (22 9.0)
At 31 December 2024 |  | 1.6 | 2 5 7. 8 | (1 9 7. 5 ) | 6.3 | 1 , 333.7 | 1 , 4 01 .9 | 43.0 | 1,4 4 4.9

* The tax paid on Share Awards vested is related to settlement of the tax obligation on behalf of employees by the Group via the sale of a portion of the equity-settled shares.
Intertek Group plc
Annual Report & Accounts 2024
3.06
Consolidated statement of cash flows
2: Sustainability Report1: Strategic Report 3: Financial Report

|  | 2024 | 2023
For the year ended 31 December | Notes | £m | £m
Cash flows from operating activities |  |  |
Profit for the year | 2 | 3 6 7. 2 | 318 . 1
Adjustments for: |  |  |
Depreciation charge | 8 | 14 4 .4 | 156.0
Amortisation of software | 9 | 1 7. 3 | 19.3
Amortisation of acquisition intangibles | 9 | 32.3 | 34. 2
Impairment of goodwill and other assets | 8,9 | 6.9 | 2. 6
Equity-settled transactions | 17 | 24. 4 | 21. 2
Net financing costs | 14 | 45.7 | 63.9
Income tax expense | 6 | 122 .8 | 10 4 . 2
Profit on disposal of property, plant, equipment and software |  | (3.9) | (3.2)
Operating cash flows before changes in working capital |  |  |
andoperating provisions |  | 7 5 7. 1 | 7 16 . 3
Change in inventories |  | (2. 2) | (1. 2)
Change in trade and other receivables |  | (45.6) | (41 . 2)
Change in trade and other payables |  | 69. 8 | 4 7. 7
Change in provisions |  | (3. 3) | 4. 3
Cash generated from operations |  | 775.8 | 725.9
Interest and other finance expense paid |  | (52. 2) | (71.9)
Income taxes paid |  | (126. 5) | (119 .0)
Net cash flows generated from operating activities* |  | 5 9 7. 1 | 535. 0
Cash flows from investing activities |  |  |
Proceeds from sale of property, plant, equipment and software* |  | 5.0 | 11.5
Interest received* |  | 2.7 | 3.5
Acquisition of subsidiaries, net of cash acquired | 10 | (1 4.9) | (4 0 . 5)
Consideration paid in respect of prior year acquisitions |  | – | (2 .7)
Acquisition of property, plant, equipment and software* |  | (135. 0) | (116.9)
Net cash flows used in investing activities |  | (142 . 2) | (145 . 1)

|  | 2024 | 2023
For the year ended 31 December | Notes | £m | £m
Cash flows from financing activities |  |  |
Purchase of own shares | 15 | (24.7) | (11.6)
Tax paid on Share Awards vested | 17 | (7. 4) | (5.6)
Drawdown of borrowings |  | 24.7 | 16 0 . 5
Repayment of borrowings |  | (98 .4) | (24 9 . 6)
Repayment of lease liabilities* |  | (74 . 4) | (7 7. 8 )
Purchase of non-controlling interest |  | – | (0.7)
Dividends paid to non-controlling interest | 20 | (16 .1) | (1 5. 1)
Equity dividends paid |  | (2 0 6 .1) | (17 6 . 3)
Net cash flow used in financing activities |  | (402 . 4) | (376 . 2)
Net increase in cash and cash equivalents | 14 | 52.5 | 13 .7
Cash and cash equivalents at 1 January | 14 | 2 98.6 | 320.7
Exchange adjustments | 14 | (14. 6) | (35. 8)
Cash and cash equivalents at 31 December | 14 | 336. 5 | 298.6

The notes on pages 3.07 to 3.50 are an integral part of these consolidated financial statements.
Cash outflow relating to Separately Disclosed Items was £13.4m for year ended 31 December 2024
(2023: £23. 1m).
* Free cash flow of £3 95.4 m (2023: £355. 3m) comprises the asterisked items in the above consolidated statement of cash flows.
Intertek Group plc
Annual Report & Accounts 2024
3.07
Notes to the financial statements
2: Sustainability Report1: Strategic Report 3: Financial Report
1 Material accounting policies
Basis of preparation
Accounting policies applicable to more than one section of the financial statements are shown below. Where
accounting policies relate to a specific note in the financial statements, they are set out within that note, to
provide readers of the financial statements with a more useful layout to the financial information presented.
Statement of compliance
Intertek Group plc is a public company incorporated in England & Wales and domiciled in the UK, limited
by shares.
The Group financial statements as at and for the year ended 31 December 2024 consolidate those of
the Company and its subsidiaries (together referred to as the ‘Group’) and include the Group’s interests
in associates. Intertek Group plc transitioned to UK-adopted international accounting standards in its
consolidated financial statements on 1 January 2021. There was no impact or change in accounting policies
from the transition. The Group financial statements have been prepared by the Directors in accordance with
these accounting standards in conformity with the requirements of the Companies Act 2006. The Company
financial statements present information about the Company as a separate entity and not about its Group.
The Company has elected to prepare its Company financial statements in accordance with UK GAAP,
comprising FRS 101 and applicable law; these are presented on pages 3.51 to 3.56.
Significant new accounting policies and standards
There are no significant new accounting standards or amendments to accounting standards that are effective
for annual periods beginning on or after 1 January 2024 that have a material effect on the results of the Group.
Changes in accounting policies
The accounting policies set out in these financial statements have been applied consistently to all years
presented, apart from those disclosed below. There are no new accounting standards that are effective for
annual periods beginning on or after 1 January 2024 that have a material effect on the consolidated financial
statements of the Group. There are no accounting standards that are issued but not yet effective that are
expected to have a material effect on the consolidated financial statements of the Group.
Measurement convention
The financial statements are prepared on the historical cost basis except as discussed in the relevant
accounting policies.
Functional and presentation currency
These consolidated financial statements are presented in sterling, which is the Company’s functional currency.
All information presented in sterling has been rounded to the nearest £0.1m.
Going concern
The Group has a broad customer base across its multiple business lines and in its different geographic regions
and is supported by a robust balance sheet and strong operational cash flows.
The Board has reviewed the Group’s financial forecasts up to 31 December 2026 to assess both liquidity
requirements and debt covenants.
In addition, the Group’s financial forecasts for 2025 and 2026, and the related liquidity position and forecast
compliance with debt covenants, have been sensitised for a severe yet plausible decline in economic conditions
(including an illustrative sensitivity scenario of a reduction of 30% to the base profit forecasts and the
corresponding impact to cash flow forecasts in each of these years). In addition, reverse stress testing has
also been applied to the model which represents a significant decline in cash flows compared with the 30%
downside sensitivity. Such a scenario is considered to be remote. The Board remains satisfied with the Group’s
funding and liquidity position, with the Group forecast to remain within its committed facilities and compliant
with debt covenants even following the 30% downside sensitivity. The sensitivity modelling excludes
additional mitigating actions (e.g. dividend cash payments, non-essential overheads and non-committed
capital expenditure) that are within management control and could be initiated if deemed required.
The undrawn headroom on the Group’s committed borrowing facilities at 31 December 2024 was £655.7m
(2023: £664.3m). The maturity of our borrowing facilities is disclosed in note 14 of the financial statements,
with repayment of two senior notes totalling US$120m required by 31 December 2025. Our models forecast
these to be repaid using existing facilities. Full details of the Group’s borrowing facilities and maturity profile
are outlined in note 14.
On the basis of its forecasts to 31 December 2026, both base case and the severe but plausible downside,
and available facilities, the Board has concluded that there are no material uncertainties over going concern,
including no anticipated breach of covenants, and therefore the going concern basis of preparation continues
to be appropriate.
Consideration of climate change
In preparing the financial statements, we have considered the impact of climate change (refer to Report 1,
page 1.65 for further information). There is no material impact on the financial reporting judgements and
estimates arising from our considerations, which is consistent with the assertion that risks associated with
climate change are not expected to have a material impact on the viability of the Group in the short, medium
and long term. Specifically we note the following:
• The Group continues to invest in on-site renewable energy generation at our locations.
• We have specifically considered the impact of climate change on the carrying value of fixed assets
(see note 8).
Government grants
Government grants are recognised in the income statement so as to match them with the related expenses
that they are intended to compensate. Where grants are received in advance of the related expenses, they are
initially recognised in the balance sheet and released to match the related expenditure. Non-monetary grants
are recognised at fair value. The related cash flow is classified in accordance with the nature of the activity.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.08
2: Sustainability Report1: Strategic Report 3: Financial Report
1 Material accounting policies Continued
Basis of consolidation
Subsidiaries
Subsidiaries are those entities controlled by the Group. Control exists when the Group has power to direct the
relevant activities, exposure to variable returns from the investee and the ability to use its power over the
investee to affect the amount of investor returns. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
For purchases of non-controlling interest in subsidiaries, the difference between the cost of the additional
interest in the subsidiary and the non-controlling interest’s share of the assets and liabilities reflected in the
consolidated statement of financial position at the date of acquisition is reflected directly in shareholders’ equity.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains and losses or income and expenses arising from
intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at
the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities (for example,
cash, trade receivables, trade payables) denominated in foreign currencies at the reporting date are translated
at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are
generally recognised in the income statement. Non-monetary assets and liabilities that are measured in terms
of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
For the policy on hedging of foreign currency transactions see note 14.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to sterling at foreign exchange rates ruling at the reporting date.
The income and expenses of foreign operations are translated into sterling at cumulative average rates
of exchange during the year. Exchange differences arising from the translation of foreign operations are
taken directly to equity in the translation reserve. They are released to the income statement upon disposal.
For the policy on net investment hedging see note 14.
The most significant currencies for the Group were translated at the following exchange rates:

|  | Assets and liabilities |  | Income and expenses
|  | Actual rates |  | Cumulative average rates
| 31 December | 31 December |  |
Value of £1 | 2024 | 2023 | 2024 | 2023
US dollar | 1.26 | 1.28 | 1.28 | 1.24
Euro | 1.21 | 1.15 | 1.18 | 1.15
Chinese renminbi | 9.18 | 9.14 | 9.21 | 8.81
Hong Kong dollar | 9.76 | 10.00 | 9.99 | 9.71
Australian dollar | 2.02 | 1.87 | 1.94 | 1.87

Key estimations and uncertainties
The preparation of financial statements in conformity with IFRSs (‘International Financial Reporting Standards’)
requires management to make judgements and estimates that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimates are revised and in any future years affected.
Discussed below are key assumptions concerning the future, and other key sources of estimation at the
reporting date, that could have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities within the next financial year.
Impairment of goodwill
Following recognition of goodwill as a result of acquisitions, the Group determines, as a minimum on an annual
basis and including current year acquisitions, whether goodwill is impaired, which requires an estimation of the
future cash flows of the cash generating units to which the goodwill is allocated, as well as assumptions on
growth rates and discount rates – see note 9. There is no significant risk of material impairment within the
next financial year.
Employee post-retirement benefit obligations
For material defined benefit plans, the actuarial valuation includes assumptions such as discount rates,
return on assets, salary progression and mortality rates. Further details and sensitivity analysis are included
in note 16.
There are no critical accounting judgements.
Other accounting policies
Accounting policies relating to a specific note in the financial statements are set out within that note
as follows:

| Note
Revenue | 2
Separately Disclosed Items | 3
Taxation | 6
Property, plant and equipment | 8
Goodwill and other intangible assets | 9
Trade and other receivables | 11
Trade and other payables | 12
Provisions | 13
Borrowings and financial instruments | 14
Capital and reserves | 15
Employee benefits | 16
Share schemes | 17
Non-controlling interest | 20

Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.09
2: Sustainability Report1: Strategic Report 3: Financial Report
2 Operating segments and presentation of results
Accounting policy
Revenue
Revenue represents the total amount receivable for services rendered when there is transfer of control to
the customer, excluding sales-related taxes and intra-group transactions.
Revenue from services rendered on short-term projects is generally recognised in the income statement when
the relevant service is completed, usually when the report of findings or test/inspection certificate is issued.
Short-term projects are considered to be those of less than two months’ duration.
In line with IFRS 15, rebates and customer discounts are considered to be variable consideration and have
been deducted from recognised revenue.
Revenue is recognised using the five steps for revenue recognition. The majority of contracts are for
less than one year. The Group records transactions as revenue on the basis of value of work done, with the
corresponding amount being included in trade receivables if the customer has been invoiced, or in contract
assets if billing has yet to be completed. Performance obligations vary across business lines and regions, and
on a contract-by-contract basis. There may be more than one performance obligation per contract, for example
Alchemy Training Solutions contracts have multiple elements which are split between recognising revenue at
a point in time for services such as right-of-use software licences, and over time for other services delivered
under the same contract.
Long-term projects consist of two main types:
• time incurred, which is billed at agreed rates on a periodic basis, such as monthly; or
• staged payment invoicing, requiring an assessment of percentage of completion, based on services provided
and revenue accrued accordingly.
Expenses are recharged to clients where permitted by the contract. Payments received in advance from customers
are recognised in contract liabilities to the extent that performance obligations have not been satisfied.
The Group does not expect to have any material contracts where the period between the transfer of promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, the
Group does not adjust any of the transaction prices for the time value of money.
The Group has applied practical expedients in: i) recognising assets from the costs incurred to obtain or fulfil
a contract; and ii) disclosing unsatisfied performance obligations in contracts as contracts have an expected
duration of less than a year. The economic factors affecting revenue for both short- and long-term contracts
are consistent within each.
Operating segments
The Group is organised into business lines, which are the Group’s operating segments and are reported to the
CEO, the chief operating decision maker.
These operating segments are aggregated into five segments, which are the Group’s reportable segments,
based on the similar nature of products and services and the mid- to long-term structural growth drivers.
When aggregating operating segments into the five reportable segments we have applied judgement over the
similarities of the services provided, the wider economic impacts of the markets served within the segments,
the customer base and the mid- to long-term structural growth drivers. Certain business lines within those
former segments have also been reallocated to better align with the structural growth drivers of each segment.
The costs of the corporate head office and other costs which are not controlled by the five segments are
allocated appropriately.
Inter-segment pricing is determined on an arm’s length basis. There is no significant seasonality in the Group’s
operations. Segment results include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis.
The performance of the segments is assessed based on adjusted operating profit which is stated before
Separately Disclosed Items. The operating segment revenue disclosures provided under IFRS 8 are consistent
with the disaggregated revenue disclosure and recognition and measurement requirements of IFRS 15.
A reconciliation to operating profit by segment and Group profit for the year is included overleaf.
The principal activities of the reportable segments, and the customers they serve, are as follows:
Consumer products – Our Consumer Products segment focuses on the ATIC solutions we offer to our clients
to develop and sell better, safer, and more sustainable products to their own clients. This segment includes the
following business lines: Softlines, Hardlines, Electricals & Connected World and Government & Trade Services.
As a trusted partner to the world’s leading retailers, manufacturers and distributors, the segment supports a
wide range of industries including textiles, footwear, toys, hardlines, home appliances, consumer electronics,
information and communication technology, automotive, aerospace, lighting, building products, industrial and
renewable energy products, and healthcare.
Across these industries we provide a wide range of Assurance, Testing, Inspection and Certification (‘ATIC’)
services including laboratory safety, quality and performance testing, and third-party certification. Our
Government & Trade Services business provides inspection services to governments and regulatory bodies
to support trade activities that help the flow of consumer products across borders, predominantly in the
Middle East, Africa and South America.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.10
2: Sustainability Report1: Strategic Report 3: Financial Report
World of Energy – Our World of Energy segment focuses on the ATIC solutions we offer to our clients to
develop better and greener fuels as well as renewables. This segment includes Caleb Brett, Transportation
Technologies (‘TT’) and Clean Energy Associates (‘CEA’).
This segment consists of three global business lines with similar global growth drivers which are intrinsically
linked to the wider economic factors, regulation over traditional hydrocarbons and sustainability of energy supply
which impact the energy market. These business lines provide specialist cargo inspection, analytical assessment,
calibration and related research and technical services to the world’s petroleum and biofuels industries.
Our Caleb Brett business provides cargo and inventory inspection, analytical assessment, calibration and
related research and technical services to the world’s petroleum and biofuels industries.
TTs global network of laboratories provides diverse, rapid testing and validation services to the transportation
market, evaluating to industry standards and international regulations, and delivers testing for new and
emerging markets such as autonomous and connected vehicles, electric/hybrid vehicles, charging components,
automotive telematics and aftermarket components.
CEA is a provider of quality assurance, supply-chain traceability and technical services to the solar energy,
energy storage and green hydrogen sectors.
Following the IFRIC agenda decision on segment reporting issued in July 2024, the segmental disclosures have
been aligned to the cost categorization in Note 4 to include Employee costs, considered to be a material item
of expense for the Group. Consequently, the comparative figures have been updated to reflect this
information.
The results of these segments for the year ended 31 December are shown below:

| Revenue |  |  |  |  |
| from |  |  |  |  |
| contracts |  | Depreciation | Adjusted | Separately |
| with | Employee | and software | operating | Disclosed | Operating
| customers | costs | amortisation | profit | Items | profit
Year ended 31 December 2024 | £m | £m | £m | £m | £m | £m
Consumer Products | 958.8 | ( 3 87.1) | (49.9) | 268.7 | (11.7) | 257.0
Corporate Assurance | 496.3 | (192.2) | (12.0) | 117. 2 | (20.7) | 96.5
Health and Safety | 337.2 | (147.4) | (19.4) | 46.0 | (6.3) | 39.7
Industry and Infrastructure | 843.6 | (416.9) | (31.4) | 80.7 | (12.8) | 67. 9
World of Energy | 757. 3 | (348.8) | (49.0) | 77.5 | (2.9) | 74.6
Total | 3,393.2 | (1,492.4) | (161.7) | 590.1 | (54.4) | 535.7
Group operating profit |  |  |  | 590.1 | (54.4) | 535.7
Net financing costs |  |  |  | (42.3) | (3.4) | (45.7)
Profit before income tax |  |  |  | 547.8 | (57.8) | 490.0
Income tax (expense)/credit |  |  |  | (135.2) | 12.4 | (122.8)
Profit for the year |  |  |  | 412.6 | (45.4) | 367. 2

2 Operating segments and presentation of results Continued
Corporate Assurance – Our Corporate Assurance segment focuses on the industry-agnostic assurance
solutions we offer to our clients to make their value chains more sustainable and more resilient end-to-end.
This segment includes Business Assurance and Assuris.
Intertek Business Assurance provides a full range of business process audit and support services, including
accredited third-party management systems auditing and certification, second-party supplier auditing and
supply chain solutions, sustainability data verification, process performance analysis and training. Assuris’ global
network of scientists, engineers and regulatory specialists provide clients with support to navigate complex
scientific, regulatory, environmental, health, safety and quality challenges throughout their value chain.
Health and Safety – Our Health and Safety segment focuses on the ATIC solutions we offer to our clients
to make sure we all enjoy a healthier and safer life. This segment includes AgriWorld, Food and Chemicals &
Pharma business lines. The division provides differing services which reflect the breadth of our ATIC offering,
but the services provided are similar in nature and include analytical assessment, inspection and technical
services that are delivered to the customers through issuing certificates or reports.
Our AgriWorld business provides assurance, testing, inspection and certification services across the entire
agricultural supply chain.
Our Food business provides food safety testing, hygiene and safety audits, inspection, certification and
advisory services to food companies.
Our Chemicals & Pharma business enables clients to mitigate risks associated with product quality and safety
and processes, supporting them with their product development, regulatory authorisation, chemical testing
and production.
Industry and Infrastructure – Our Industry and Infrastructure segment focuses on the ATIC solutions our
clients need to develop and build better, safer and greener infrastructure. This segment includes Industry
Services, Minerals and Building & Construction. The nature of the products and services offered across the
segment are similar, with services including technical inspections, asset integrity management and sample
testing. These service lines interact through the customer type they service – ATIC services to Industry or
Infrastructure-related products and the inputs into these industries.
Our Industry Services business line uses its in-depth knowledge of industries such as renewable energy, oil
and gas, and petrochemicals to provide customers with a diverse range of Total Quality Assurance solutions.
The services we offer include technical inspection, non-destructive and materials testing and asset
performance management.
Our Minerals business offers expert inspection, analytical testing and advisory services to the minerals,
exploration, ore and mining industries. We cover each step of the supply chain from exploration, production,
sampling and inspection, to commercial trade settlement analysis.
Our Building & Construction business provides testing, inspection, certification and engineering services
to the building and construction industries, offering product-related testing and certification capabilities,
project-related assurance, testing, inspection and consulting services.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.11
2: Sustainability Report1: Strategic Report 3: Financial Report
3 Separately Disclosed Items
Accounting policy
Adjusted results
In order to present the performance of the Group in a clear, consistent and comparable format, certain items
are disclosed separately on the face of the income statement. Separately Disclosed Items (‘SDI’) are items
which by their nature or size, in the opinion of the Directors, should be excluded from the adjusted results to
provide readers with a clear and consistent view of the business performance of the Group and its operating
segments on a year-on-year basis. A full glossary and definitions of adjusted performance metrics used by the
Group is included on page 3.64.
When applicable, these items include: amortisation of acquisition intangibles; impairment of goodwill
and other assets; the profit or loss on disposals of businesses or other significant non-current assets;
the costs of acquiring and integrating acquisitions; the cost of any fundamental restructuring; the costs
of any significant strategic projects; significant claims and settlements; and unrealised market or fair value
gains or losses on financial assets or liabilities, including contingent consideration.
Adjusted operating profit, which is a non-GAAP measure, excludes the amortisation of acquired intangible
assets, primarily customer relationships, as we do not believe that the amortisation charge in the income
statement provides useful information about the cash costs of running our business as these assets will be
supported and maintained by ongoing marketing and promotional expenditure, which is already reflected
in operating costs. Amortisation of software, however, is included in adjusted operating profit as it is similar
in nature to other capital expenditure.
The costs associated with our cost reduction programme are excluded from adjusted operating profit where
they represent changes associated with operational streamlining and technology upgrades and are costs
that are not expected to reoccur. The restructuring programme, which began in 2022, is expected to last
up to five years.
The treatment as SDI is consistent with the disclosure of costs for similar restructuring and strategic
programmes previously undertaken.
The impairment of goodwill and other assets that by their nature or size are not expected to recur, the profit
and loss on disposals of businesses or other significant assets, and the costs associated with successful,
active or aborted acquisitions are excluded from adjusted operating profit to provide useful information
regarding the year-on-year performance of the Group’s operations.
As adjusted results include the benefits of the items detailed above, but exclude significant costs related to
those items, they should not be regarded as a complete picture of the Group’s financial performance, which is
presented on the face of the income statement under total results. The exclusion of these items may result
in adjusted operating profit being materially higher or lower than total operating profit. In particular, where
significant impairments, restructuring charges and legal costs are excluded in any year, adjusted operating
profit will be higher than total operating profit.
2 Operating segments and presentation of results Continued

| Revenue |  |  |  |  |
| from |  |  |  |  |
| contracts |  | Depreciation | Adjusted | Separately |
| with | Employee | and software | operating | Disclosed | Operating
| customers | costs | amortisation | profit | Items | profit
Year ended 31 December 2023 | £m | £m | £m | £m | £m | £m
Consumer Products | 935.8 | (380.8) | (55.4) | 246.8 | (15.1) | 231.7
Corporate Assurance | 477.5 | (185.0) | (14.0) | 109.4 | (26.2) | 83.2
Health and Safety | 326.3 | (141.8) | (21.7) | 43.2 | (4.9) | 38.3
Industry and Infrastructure | 860.5 | (405.6) | (32.3) | 86.1 | (9.5) | 76.6
World of Energy | 728.6 | ( 337.0) | (51.9) | 65.6 | (9.2) | 56.4
Total | 3,328.7 | (1,450.2) | (175.3) | 551.1 | (64.9) | 486.2
Group operating profit |  |  |  | 551.1 | (64.9) | 486.2
Net financing costs |  |  |  | (43.9) | (20.0) | (63.9)
Profit before income tax |  |  |  | 5 07.2 | (84.9) | 422.3
Income tax (expense)/credit |  |  |  | (124.8) | 20.6 | (104.2)
Profit for the year |  |  |  | 382.4 | (64.3) | 318.1

Geographic segments
Although the Group is managed through a divisional structure, which operates on a global basis, under the
requirements of IFRS 8 the Group must disclose any specific countries that are important to the Group’s
performance. The Group considers the following to be the material countries in which it operates: the United
States, China (including Hong Kong), the United Kingdom and Australia.
In presenting information on the basis of geographic segments, segment revenue is based on the location of
the entity recognising that revenue. Segment assets are based on the geographical location of the assets.

|  | Revenue from external |  |
|  | customers |  | Non-current assets
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
United States | 1,025.7 | 1,022.5 | 1,093.4 | 1,083.3
China (including Hong Kong) | 605.7 | 592.1 | 80.3 | 83.9
United Kingdom | 227.9 | 217.0 | 251.5 | 247.4
Australia | 171.4 | 176.1 | 473.0 | 528.9
Other countries and unallocated | 1,362.5 | 1,321.0 | 464.7 | 442.8
Total | 3,393.2 | 3,328.7 | 2,362.9 | 2,386.3

Major customers
No revenue from any individual customer exceeded 10% of total Group revenue in 2024 or 2023.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.12
2: Sustainability Report1: Strategic Report 3: Financial Report

| 2024 | 2023
| £m | £m
Included in profit for the year are the following expenses/(gains): |  |
Property rentals | 6.6 | 6.8
Lease and hire charges – fixtures, fittings and equipment | 16.6 | 14.5
Government grants related to employee costs | (4.8) | (3.6)
Profit on disposal of property, plant, equipment and software | (3.9) | (3.2)
Auditors’ remuneration: |  |
Audit of these financial statements | 1.6 | 1.6
Amounts receivable by the auditors and their associates in respect of: |  |
Audit of financial statements of subsidiaries pursuant to legislation | 4.3 | 4.2
Total audit fees payable pursuant to legislation | 5.9 | 5.8
Audit-related services | 0.2 | 0.2
Total | 6.1 | 6.0

5 Employees
Total employee costs are shown below:

| 2024 | 2023
Employee costs | £m | £m
Wages and salaries | 1,262.0 | 1,228.5
Equity-settled transactions | 24.4 | 21.2
Social security costs | 143.5 | 139.5
Pension costs (note16) | 62.5 | 61.0
Total employee costs | 1,492.4 | 1,450.2

Details of pension arrangements and equity-settled transactions are set out in notes 16 and 17 respectively.

Average number of employees by division | 2024 | 2023
Consumer Products | 13,821 | 13,936
Corporate Assurance | 4,165 | 3,946
Health and Safety | 5,531 | 5,227
Industry and Infrastructure | 10,273 | 9,966
World of Energy | 8,717 | 8,530
Central | 2,062 | 2,033
Total average number for the year ended 31 December | 4 4,5 69 | 43,638
Total actual number at 31 December | 45,000 | 43,908

3 Separately Disclosed Items Continued
Separately Disclosed Items
The Separately Disclosed Items are described in the table below:

|  | 2024 | 2023
|  | £m | £m
Operating costs: |  |  |
Amortisation of acquisition intangibles | (a) | (32.3) | (34.2)
Acquisition and integration costs | (b) | (2.5) | (8.3)
Restructuring costs | (c) | (15.8) | (22.4)
Significant claims and settlements | (d) | (3.8) | –
Total operating costs |  | (54.4) | (64.9)
Net financing costs | (e) | (3.4) | (20.0)
Total before income tax |  | (57.8) | (84.9)
Income tax credit on Separately Disclosed Items | (f) | 12.4 | 20.6
Total |  | (45.4) | (64.3)

(a) Of the amortisation of acquisition intangibles in the current period, £0.6m relates to the customer relationships and trade names acquired
with the purchase of Base Metallurgical Laboratories Ltd (‘Base Met Labs’) in 2024.
(b) Acquisition and integration costs comprise £1.3m (2023: £4.7m) for transaction and integration costs in respect of successful, active and
aborted acquisitions in the current year, and £1.2m in respect of prior years’ acquisitions (2023: £3.6m).
(c) During 2022, the Group initiated the first year of a cost reduction programme. In 2024, costs of £15.8m (2023: £22.4m) included
consolidating sites and offices, streamlining headcount and related asset write-offs.
(d) Significant claims and settlements relate to commercial claims that are separately disclosable due to their size and nature.
(e) Net financing costs of £3.4m (2023: £20.0m) relate to the unwinding of discount and changes in fair value of contingent consideration
related to acquisitions.
(f) Income tax credit on SDIs totalled £12.4m (2023: £20.6m) mainly relating to deferred tax impact of the movement in amortisation
of intangibles.
4 Expenses and auditors’ remuneration
An analysis of operating costs by nature is outlined below:

| 2024 | 2023
| £m | £m
Employee costs | 1,492.4 | 1,450.2
Depreciation and software amortisation (notes 8 and 9) | 161.7 | 175.3
Other expenses | 1,203.4 | 1, 217.0
Total | 2,857.5 | 2,842.5

Certain expenses/(gains) are outlined in the table below, including fees paid to the auditors of the Group.
Mazars acts as external auditors of certain material and non-material entities within the Group. The total
remuneration for the audit of these entities, included in the table below, was £0.6m (2023: £0.6m).
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.13
2: Sustainability Report1: Strategic Report 3: Financial Report
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates that have been enacted or substantively enacted at
the balance sheet date, for the periods when the asset is realised or the liability is settled. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable
entities which intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realised simultaneously.
Deferred tax assets are recognised to the extent that there are taxable temporary differences relating to
the same taxation authority, the same taxable company or different taxable companies part of the same
tax group, which are expected to reverse in the same period, or to the extent that it is probable that future
taxable profits will be available against which the temporary difference can be utilised. The carrying amount
of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be
utilised. In calculating future taxable profits, the future forecasts considered were consistent with those
used for the purposes of the Group’s going concern and viability assessments.
The Group does not currently expect the climate-related risks discussed on pages 57 to 73 in Report 1 to
have an impact on the availability to recover the deferred tax assets identified below. Any additional income
taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the
related dividend.
Tax expense
The Group operates across many different tax jurisdictions. Income and profits are earned and taxed in the
individual countries in which they occur.
The statutory tax charge, including the impact of SDIs, of £122.8m (2023: £104.2m), equates to an effective
rate of 25.1% (2023: 24.7%) and the cash tax on adjusted results is 23.1% (2023: 23.5%). The income tax
expense for the adjusted profit before tax for the 12 months ended 31 December 2024 is £135.2m
(2023: £124.8m). The Group’s adjusted effective tax rate for the 12 months ended 31 December 2024
is 24.7% (2023: 24.6%).
Net differences between the consolidated effective tax rate of 25.1% and the statutory UK rate of 25.0%
include but are not limited to: the mix of profits; the effect of tax rates in foreign jurisdictions; non-deductible
expenses; the effect of movement in unrecognised deferred tax assets; movements in the provision for
uncertain tax positions; withholding tax on intra-group dividends; tax-exempt income; and under/over
provisions in previous periods.
The Group receives tax incentives in certain jurisdictions, resulting in a lower tax charge to the income statement.
These tax incentives mainly relate to China’s High and New Technology Enterprise and Technology Advanced
Service Enterprise incentives. Without these incentives the adjusted effective tax rate would be 26.8% (2023:
26.9%). The tax on SDIs primarily relates to intangibles, financing costs, restructuring and integration.
5 Employees Continued
The total remuneration of the Directors is shown below:

| 2024 | 2023
Directors’ emoluments | £m | £m
Directors’ remuneration | 5.9 | 4.9
Amounts charged under the long-term incentive scheme | 3.1 | 2.9
Total Directors’ emoluments | 9.0 | 7.8

6 Taxation
Accounting policy
Income tax for the year comprises current and deferred tax. Income tax is recognised in the same primary
statement as the accounting transaction to which it relates.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Tax provisions are recognised for uncertain tax positions where a risk of an additional tax liability has
been identified and it is probable that the Group will be required to settle that tax liability. Measurement is
dependent on management’s expectation of the outcome of decisions by tax authorities in the various tax
jurisdictions in which the Group operates. This is assessed on a case-by-case basis using in-house tax experts,
professional firms and previous experience. Where the outcome of discussions with tax authorities is different
from the amount initially recorded, this difference will impact the tax expense in the period in which the
determination is made.
Deferred tax
Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amount of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes, except for:
• recognition of consolidated goodwill;
• the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit; and
• differences relating to investments in subsidiaries, branches, associates and interest in joint ventures,
the reversal of which is under the control of the Group and where it is probable that the difference will
not reverse in the foreseeable future.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.14
2: Sustainability Report1: Strategic Report 3: Financial Report
On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum
effective tax rate of 15%. Legislation implementing a domestic top-up tax and a multinational top-up tax
applies to Intertek from the financial year ending 31 December 2024 onwards. Based on the results for the
year, all but four jurisdictions qualify for one of the safe harbour exemptions. The top-up tax liability included
in the current tax of £127.8m above is £0.6m (2023: £nil). Intertek has applied the exception under IAS 12 to
recognising and disclosing information about deferred tax assets and liabilities related to top-up income taxes.
Income tax recognised in other comprehensive income (‘OCI’)
As noted in the accounting policy, tax is recognised in the same place as the relevant accounting charge.
The income tax recognised on items recorded in other comprehensive income is shown below:

| Before tax | Tax charge | Net of tax | Before tax | Tax charge | Net of tax
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023
| £m | £m | £m | £m | £m | £m
Foreign exchange |  |  |  |  |  |
translation differences |  |  |  |  |  |
of foreign operations | (64.8) | 2.5 | (62.3) | ( 147. 1) | 4.9 | (142.2)
Net exchange gain/(loss) on hedges of net investments |  |  |  |  |  |
in foreign operations | 1.7 | 4.6 | 6.3 | 58.8 | (2.0) | 56.8
(Loss)/Gain on fair value of cash flow hedges | – | – | – | (0.1) | – | (0.1)
Remeasurements on defined |  |  |  |  |  |
benefit pension schemes | 3.7 | (1.1) | 2.6 | (2.6) | 0.1 | (2.5)
Tax on other items that will never be reclassified to profit or loss | – | – | – | – | – | –
Total other comprehensive |  |  |  |  |  |
(expense)/income |  |  |  |  |  |
for the year | (59.4) | 6.0 | (53.4) | (91.0) | 3.0 | (88.0)

6 Taxation Continued
Tax charge
The total income tax charge, comprising the current tax charge and the movement in deferred tax, recognised
in the income statement is analysed as follows:

| 2024 | 2023
| £m | £m
Current tax charge for the period | 132.9 | 116.7
Adjustments relating to prior year liabilities | (5.1) | (0.7)
Current tax | 127.8 | 116.0
Deferred tax movement related to current year | (5.0) | (11.6)
Deferred tax movement related to prior year | – | (0.2)
Deferred tax movement | (5.0) | (11.8)
Total tax in income statement | 122.8 | 104.2
Tax on adjusted result | 135.2 | 124.8
Tax on Separately Disclosed Items | (12.4) | (20.6)
Total tax in income statement | 122.8 | 104.2

Reconciliation of effective tax rate
The following table provides a reconciliation of the UK statutory corporation tax rate to the effective tax rate
of the Group on profit before taxation.

| 2024 | 2023
| £m | £m
Profit before taxation | 490.0 | 422.3
Notional tax charge at UK standard rate 25.0% (2023: 23.5%) | 122.5 | 99.3
Differences in overseas tax rates | (7.0) | (1.0)
Withholding tax on intercompany dividends | 7.4 | 6.9
Non-deductible expenses | 10.4 | 13.4
Tax exempt income | (6.8) | ( 7.4)
Change in tax rate impact | (0.1) | (0.9)
Movement in unrecognised deferred tax | 2.0 | (0.4)
Adjustments in respect of prior years 1 | (5.1) | (0.9)
Other 2 | (0.5) | (4.8)
Total tax in income statement | 122.8 | 104.2

1. Adjustments in respect of prior years mainly relate to current and deferred tax adjustments for the UK, the US, Australia and Mexico.
2. The Other category contains R&D tax incentives of £3.3m (2023: £4.0m), a net £0.8m charge on provisions (2023: £3.3m credit) following
a review of uncertain tax positions across multiple territories, and other local taxes.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.15
2: Sustainability Report1: Strategic Report 3: Financial Report
Movements in deferred tax temporary differences during the year
The movement in the year in deferred tax assets and liabilities is shown below:

|  |  |  | Recognised | Recognised |
| 1 January | Exchange |  | in income | in equity | 31 December
| 2024 | adjustments | Acquisitions | statement | and OCI | 2024
| £m | £m | £m | £m | £m | £m
Intangible assets | (80.2) | (0.3) | (1.5) | 3.1 | 1.5 | (77. 4)
Property, fixtures, fittings |  |  |  |  |  |
and equipment | (13.5) | (0.4) | – | (1.6) | (0.1) | (15.6)
Pensions | (4.1) | – | – | (0.3) | (1.1) | (5.5)
Equity-settled transactions | 5.8 | – | – | 1.4 | 0.9 | 8.1
Provisions and other temporary differences | 42.8 | (1.7) | – | 4.8 | (0.3) | 45.6
Tax value of losses | 10.3 | (1.1) | 1.6 | (2.4) | 1.0 | 9.4
Total | (38.9) | (3.5) | 0.1 | 5.0 | 1.9 | (35.4)

|  |  |  | Recognised | Recognised |
| 1 January | Exchange |  | in income | in equity | 31 December
| 2023 | adjustments | Acquisitions | statement | and OCI | 2023
| £m | £m | £m | £m | £m | £m
Intangible assets | (93.8) | 3.8 | (4.9) | 11.7 | 3.0 | (80.2)
Property, fixtures, fittings |  |  |  |  |  |
and equipment | (13.1) | 0.8 | (0.5) | (1.0) | 0.3 | (13.5)
Pensions | (4.1) | – | – | (0.1) | 0.1 | (4.1)
Equity-settled transactions | 5.3 | – | – | 0.4 | 0.1 | 5.8
Provisions and other temporary differences | 37. 8 | (1.7) | (0.4) | 4.5 | 2.6 | 42.8
Tax value of losses | 13.7 | (0.7) | – | (3.7) | 1.0 | 10.3
Total | (54.2) | 2.2 | (5.8) | 11.8 | 7. 1 | (38.9)

6 Taxation Continued
Income tax recognised directly in equity
As noted in the accounting policy, tax is recognised in the same place as the relevant accounting charge.
The income tax on items recognised in equity is shown below:

| Before tax | Tax charge | Net of tax | Before tax | Tax charge | Net of tax
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023
| £m | £m | £m | £m | £m | £m
Equity-settled |  |  |  |  |  |
transactions | 24.4 | 0.9 | 25.3 | 21.2 | 0.1 | 21.3

Deferred tax
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:

| Assets | Assets | Liabilities | Liabilities | Net | Net
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m | £m | £m
Intangible assets | 0.7 | 1.0 | (78.1) | (81.2) | ( 77.4 ) | (80.2)
Property, plant |  |  |  |  |  |
and equipment | 73.5 | 71.5 | (89.1) | (85.0) | (15.6) | (13.5)
Pensions | 1.0 | 1.0 | (6.5) | (5.1) | (5.5) | (4.1)
Equity-settled transactions | 8.1 | 5.8 | – | – | 8.1 | 5.8
Provisions and other temporary differences | 56.6 | 56.5 | (11.0) | (13.7) | 45.6 | 42.8
Tax value of losses | 9.4 | 10.3 | – | – | 9.4 | 10.3
Total | 149.3 | 146.1 | (184.7) | (185.0) | (35.4) | (38.9)
As shown on balance sheet: |  |  |  |  |  |
Deferred tax assets* |  |  |  |  | 34.5 | 36.4
Deferred tax liabilities* |  |  |  |  | (69.9) | (75.3)
Total |  |  |  |  | (35.4) | (38.9)

* The deferred tax analysed by category shown before considering whether balances are required to be offset against other deferred tax
balances. The balance sheet shows the net deferred tax position taking account of offsetting within companies or jurisdictions required by
accounting standards. The difference between the two asset and liability totals is £114.8m, but the net liability of £35.4m is the same in
both cases. Included within Property, fixtures, fittings and equipment is a deferred tax asset of £70.6m (2023: £68.6m) and a deferred tax
liability of £65.0m (2023: £63.3m) in respect of leasing transactions. Deferred tax assets totalling £6.3m have been recognised primarily
in respect of Brazil and Argentina that have taxable losses either in the current or prior period. In evaluating whether it is probable that
taxable profits will be earned in future accounting periods, all available evidence was considered, including approved budgets and forecasts.
Following this evaluation, it is considered more likely than not that there will be sufficient future taxable profits to realise these deferred tax
assets, the majority of which can be carried forward indefinitely excluding £0.9m losses which are due to expire within five years and £0.4m
losses which are due to expire after five years. Of the £149.3m of deferred tax assets displayed above, £16.3m are expected to be recovered
within 12 months of the date of this Annual Report and Accounts.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.16
2: Sustainability Report1: Strategic Report 3: Financial Report
Expiry of unrecognised deferred tax assets – tax losses and tax credits

| 2024 | 2023
| £m | £m
Tax losses expiring: |  |
Within 10 years | 29.0 | 37.6
More than 10 years | 69.2 | 76.5
Available indefinitely | 48.8 | 51.3
Total | 147.0 | 165.4
Tax credits expiring: |  |
Within 10 years | 1.2 | 9.9
More than 10 years | – | –
Available indefinitely | – | –
Total | 1.2 | 9.9

In addition to the above, no specified time expiry is anticipated in respect of the other unrecognised deferred
tax assets.
6 Taxation Continued
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the items shown below. The numbers shown are
the gross temporary differences, and to calculate the potential deferred tax asset it is necessary to multiply
these by the tax rates in each case:

| 2024 | 2023
| £m | £m
Intangibles | 26.6 | 33.9
Pensions | 1.5 | 1.5
Provisions and other temporary differences | 4.0 | 3.6
Tax losses | 147.0 | 165.4
Foreign tax credits 1 | 1.2 | 9.9
Property, fixtures, fittings and equipment | (0.1) | (0.1)
Total | 180.2 | 214.2

1. The total unrecognised foreign tax credits is £0.4m, the grossed-up equivalent amount of which is £1.2m as stated above.
Deferred tax assets have not been recognised in respect of these items because it is not probable that
future taxable profits will be available in certain jurisdictions against which the Group can utilise the
benefits from them.
Of the unrecognised tax losses above, £97.9m (2023: £103.9m) of these relate to US state tax losses
due to insufficient taxable profits expected in the relevant states. In addition, £7.6m (2023: £7.2m) of these
unrecognised losses relate to a dormant companies resident in South Africa with no probable future profits.
A further £10.3m (2023: £13.8m) of these unrecognised losses relate to entities based in the UK, however
these mainly relate to (i) non-trade deficits in entities where there is no probable prospect of future non-trade
profits and (ii) capital losses where there is uncertainty on their utilisation in future periods.
There is a temporary difference of £401.4m (2023: £332.5m) which relates to unremitted post-acquisition
overseas earnings. No deferred tax is provided on this amount as the distribution of these retained earnings
is under the control of the Group and there is no intention to either repatriate from, or sell, the associated
subsidiaries in the foreseeable future.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.17
2: Sustainability Report1: Strategic Report 3: Financial Report
7 Earnings per ordinary share
The calculation of earnings per ordinary share is based on profit attributable to ordinary shareholders of the
Company and the weighted average number of ordinary shares in issue during the year. Diluted earnings per
share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of
conversion of all potentially dilutive ordinary shares. Potential ordinary shares shall be treated as dilutive when,
and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per
share from continuing operations.
In addition to the earnings per share required by IAS 33 Earnings Per Share, an adjusted earnings per share has
also been calculated and is based on earnings excluding the effect of amortisation of acquisition intangibles,
goodwill impairment and other Separately Disclosed Items. It has been calculated to allow shareholders a
better understanding of the trading performance of the Group. Details of the adjusted earnings per share
are set out below:

| 2024 | 2023
| £m | £m
Profit attributable to ordinary shareholders | 345.4 | 297.4
Separately Disclosed Items after tax (note3) | 45.4 | 64.3
Adjusted earnings | 390.8 | 361.7
Number of shares (millions) |  |
Basic weighted average number of ordinary shares | 161.1 | 161.3
Potentially dilutive share awards | 1.3 | 0.9
Diluted weighted average number of shares | 162.4 | 162.2
Basic earnings per share | 214.4p | 184.4p
Impact of potentially dilutive share awards | (1.7)p | (1.0)p
Diluted earnings per share | 212.7p | 183.4p
Adjusted basic earnings per share | 242.6p | 224.2p
Impact of potentially dilutive share awards | (2.0)p | (1.2)p
Adjusted diluted earnings per share | 240.6p | 223.0p

Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.18
2: Sustainability Report1: Strategic Report 3: Financial Report
8 Property, plant and equipment
Accounting policy
Property, plant and equipment
Owned assets
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
Leased assets
All leases where the Group is the lessee (with the exception of short-term and low-value leases) are recognised
in the statement of financial position. A lease liability is recognised based on the present value of the future
lease payments, and a corresponding right-of-use asset is recognised. The right-of-use asset is depreciated
over the shorter of the lease term or the useful life of the asset. Lease payments are apportioned between
finance charges and a reduction of the lease liability.
Low-value items, usually below £4,000, and short-term leases with a term of 12 months or less are not
required to be recognised on the balance sheet and payments made in relation to these leases are recognised
on a straight-line basis in the income statement. The Group leases various properties, principally offices and
testing laboratories, which have varying terms and renewal rights that are typical to the territory in which they
are located. Non-property includes all other leases, such as cars and printers. Normally the lease term is the
contractual start to end date, except when a break or extension option is reasonably certain to be taken, which
is considered on a lease-by-lease basis.
Depreciation
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives
of items of property, plant and equipment. Leased assets are depreciated over the shorter of the expected
lease term and their useful lives. Freehold land is not depreciated.
The estimated useful lives are as follows:

Freehold buildings | 50 years
Leasehold buildings | Term of lease
Fixtures, fittings, plant and equipment | 3 to 10 years

Depreciation methods, residual values and the useful lives of assets are reassessed at each reporting date.
Impairment
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets,
are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated to determine the level of any impairment.
Property, plant and equipment
The property, plant and equipment employed by the business is analysed below:

|  | Fixtures, |
|  | fittings, |
| Land and | plant and |
| buildings | equipment | Total
| £m | £m | £m
Cost |  |  |
At 1 January 2023 | 645.3 | 1,299.2 | 1,944.5
Exchange adjustments | (29.0) | (78.3) | ( 107.3)
Additions | 65.4 | 116.1 | 181.5
Disposals | (48.1) | (64.1) | (112.2)
Businesses acquired (note10) | 0.8 | 1.4 | 2.2
At 31 December 2023 | 634.4 | 1,274.3 | 1,908.7
Accumulated depreciation |  |  |
At 1 January 2023 | 315.8 | 934.3 | 1,250.1
Exchange adjustments | (15.0) | (59.5) | (74.5)
Charge for the year | 65.6 | 90.4 | 156.0
Impairments | – | 2.6 | 2.6
Disposals | (34.6) | (60.5) | (95.1)
At 31 December 2023 | 331.8 | 9 07. 3 | 1,239.1
Net book value at 31 December 2023 | 302.6 | 36 7.0 | 669.6

Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.19
2: Sustainability Report1: Strategic Report 3: Financial Report
8 Property, plant and equipment Continued

|  | Fixtures, |
|  | fittings, |
| Land and | plant and |
| buildings | equipment | Total
| £m | £m | £m
Cost |  |  |
At 1 January 2024 | 634.4 | 1,274.3 | 1,908.7
Exchange adjustments | (9.8) | (27.1) | (36.9)
Additions | 7 7.2 | 124.8 | 202.0
Disposals | (45.8) | (67.7) | (113.5)
Businesses acquired (note10) | 1.8 | 1.3 | 3.1
At 31 December 2024 | 657. 8 | 1,305.6 | 1,963.4
Accumulated depreciation |  |  |
At 1 January 2024 | 331.8 | 907. 3 | 1,239.1
Exchange adjustments | (3.5) | (17. 9) | (21.4)
Charge for the year | 64.3 | 80.1 | 144.4
Impairments | – | 5.2 | 5.2
Disposals | (33.0) | (63.7) | (96.7)
At 31 December 2024 | 359.6 | 911.0 | 1,270.6
Net book value at 31 December 2024 | 298.2 | 394.6 | 692.8

Fixtures, fittings, plant and equipment include assets in the course of construction of £55.8m at 31 December
2024 (2023: £41.7m), mainly comprising laboratories under construction. These assets will not be depreciated
until they are available for use.
The net book value of land and buildings comprised:

| 2024 | 2023
| £m | £m
Freehold | 49.6 | 47.7
Leasehold | 248.6 | 254.9
Total | 298.2 | 302.6

Contracts for capital expenditure which are not provided in the financial statements amounted to £19.1m
(2023 : £7. 2m) .
We have specifically reviewed our portfolio of freehold properties (total 2024 net book value of £49.6m
(2023: £47.7m)) to consider whether there are indications of material impairment arising from the potential
physical risks arising from climate change. We have not impaired any assets this year as a result of this exercise.
As a result of the Group’s cost reduction programme initiated in 2022, there were individual fixtures, fittings,
plant and equipment assets no longer in use which resulted in an impairment of £6.9m (2023: £2.6m), with the
cost recognised in SDI as a restructuring cost (see note 3).
The net book value of the right-of-use asset for leases comprised:

| Land and |  |
| buildings | Other | Total
| £m | £m | £m
At 1 January 2023 | 269.5 | 28.1 | 297.6
Cost movement in year | (0.1) | 4.7 | 4.6
Depreciation movement in year | (18.1) | 2.5 | (15.6)
Net book value at 31 December 2023 | 251.3 | 35.3 | 286.6

| Land and |  |
| buildings | Other | Total
| £m | £m | £m
At 1 January 2024 | 251.3 | 35.3 | 286.6
Cost movement in year | 23.4 | (1.0) | 22.4
Depreciation movement in year | (27. 5) | (1.0) | (28.5)
Net book value at 31 December 2024 | 247. 2 | 33.3 | 280.5

For lease liabilities, interest expenses on lease liabilities and cash outflows for leases, refer to note 14;
for expense relating to short-term leases and leases of low-value assets, refer to note 4.
Other leases include motor vehicles, office equipment and fixtures and fittings.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.20
2: Sustainability Report1: Strategic Report 3: Financial Report
Impairment
Goodwill is not subject to amortisation and is tested annually for impairment and when circumstances indicate
that the carrying value may be impaired. Goodwill is also tested for impairment in the year of any acquisition.
Other intangible assets are subject to amortisation and are reviewed for impairment whenever events or
changes in circumstances indicate that the amount carried in the statement of financial position may be less
than its recoverable amount.
Any impairment is recognised in the income statement within operating costs. Impairment is determined
for goodwill by assessing the recoverable amount of each asset or group of assets, i.e. CGU, to which the
goodwill relates. A CGU represents an asset grouping at the lowest level for which there are separately
identifiable cash flows.
The recoverable amount of an asset or a CGU is the greater of its 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 using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. The estimation process is complex due to the inherent risks and uncertainties and if different estimates
were used this could materially change the projected value of the cash flows. An impairment loss in respect of
goodwill is not reversed.
9 Goodwill and other intangible assets
Accounting policy
Goodwill
Goodwill arises on the acquisition of businesses. Goodwill represents the difference between the cost
of acquisition and the Group’s interest in the fair value of the identifiable assets and liabilities acquired.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating
units (‘CGUs’) and is not amortised but is tested annually for impairment.
Business combinations are accounted for using the acquisition method at the acquisition date, which is the
date on which control is obtained.
The Group measures goodwill as the fair value of the consideration transferred less the net recognised
amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of
the acquisition date.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities,
are expensed as incurred. Costs relating to acquisitions are shown in note 3.
Any contingent consideration payable is recognised at fair value at the acquisition date with subsequent
changes recognised in profit or loss.
If at the reporting date the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities
can only be established provisionally, then these values are used. Adjustments to the fair values can be made
within 12 months of the acquisition date and are taken as adjustments to goodwill.
Other intangible assets
When the Group makes an acquisition, management reviews the business and assets acquired to determine
whether any intangible assets should be recognised separately from goodwill. If, based on management’s
judgement, such an asset is identified, then it is valued by discounting the probable future cash flows expected
to be generated by the asset, over the estimated life of the asset. Where there is uncertainty over the amount
of economic benefit and the useful life, this is factored into the calculation.
Intangible assets arising on acquisitions and computer software are stated at cost less accumulated
amortisation and accumulated impairment losses. Identifiable intangibles are those which can be sold
separately or which arise from legal rights regardless of whether those rights are separable, and which
have finite useful lives.
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives.
The estimated useful lives are as follows:
Computer software Up to 7 years
Customer relationships Up to 20 years
Technology and know-how Up to 15 years
Trade names Up to 18 years
Licences Contractual life
Covenants not to compete Contractual life
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.21
2: Sustainability Report1: Strategic Report 3: Financial Report

|  |  | Other intangible assets |  |  |
|  |  | Technology/ |  |  |
|  |  | Know-how | Other |  | Total other
|  | Customer | and trade | acquisition | Computer | intangible
| Goodwill | relationships | names | intangibles | software | assets
| £m | £m | £m | £m | £m | £m
Cost |  |  |  |  |  |
At 1 January 2024 | 1,922.9 | 533.4 | 115.3 | 30.2 | 284.7 | 963.6
Exchange adjustments | (30.3) | (6.1) | (2.6) | (0.2) | 0.8 | (8.1)
Additions | – | – | – | – | 21.7 | 21.7
Transfers | (2.1) | – | – | – | – | –
Disposal | – | – | – | – | (6.3) | (6.3)
Businesses acquired (note10) | 15.4 | 6.9 | 0.8 | – | – | 7.7
At 31 December 2024 | 1,905.9 | 534.2 | 113.5 | 30.0 | 300.9 | 978.6
Accumulated amortisation |  |  |  |  |  |
At 1 January 2024 | 537.1 | 381.3 | 49.2 | 28.8 | 173.4 | 632.7
Exchange adjustments | 2.9 | (1.8) | (0.7) | (0.1) | (0.7) | (3.3)
Charge for the year | – | 20.4 | 11.6 | 0.3 | 17.3 | 49.6
Disposal | – | – | – | – | (6.3) | (6.3)
Impairment | – | – | – | – | 1.7 | 1.7
At 31 December 2024 | 540.0 | 399.9 | 60.1 | 29.0 | 185.4 | 674.4
Net book value at 31 December 2024 | 1,365.9 | 134.3 | 53.4 | 1.0 | 115.5 | 304.2

Other intangible assets
Computer software additions of £21.7m (2023: £23.9m) relates to separately acquired computer software
of £10.7m (2023: £9.9m) and internally developed intangible assets of £11.0m (2023: £14.0m).
The other acquisition intangibles net book value of £1.0m (2023: £1.4m) consists of guaranteed income,
order backlog, licences and non-compete covenants.
The average remaining amortisation period for customer relationships is nine years (2023: seven years).
Computer software net book value of £115.5m (2023: £111.3m) includes software in construction of
£44.4m (2023: £41.5m). Research and development expenditure of £42.6m (2023: £38.7m) was recognised
as an expense in the year.
9 Goodwill and other intangible assets Continued
Intangibles
The intangibles employed by the business are analysed below:

|  |  |  | Other intangible assets |  |
|  |  | Technology/ |  |  |
|  |  | Know-how | Other |  | Total other
|  | Customer | and trade | acquisition | Computer | intangible
| Goodwill | relationships | names | intangibles | software | assets
| £m | £m | £m | £m | £m | £m
Cost |  |  |  |  |  |
At 1 January 2023 | 1,975.5 | 5 47. 2 | 112.2 | 31.2 | 282.5 | 973.1
Exchange adjustments | (83.1) | (21.8) | (5.5) | (1.0) | (15.2) | (43.5)
Additions | – | – | – | – | 23.9 | 23.9
Transfers | 0.3 | – | – | – | – | –
Disposal | – | – | – | – | (6.5) | (6.5)
Businesses acquired (note10) | 30.2 | 8.0 | 8.6 | – | – | 16.6
At 31 December 2023 | 1,922.9 | 533.4 | 115.3 | 30.2 | 284.7 | 963.6
Accumulated amortisation |  |  |  |  |  |
At 1 January 2023 | 557.1 | 372.9 | 39.9 | 28.9 | 168.5 | 610.2
Exchange adjustments | (20.0) | (13.5) | (2.2) | (0.9) | (8.1) | (24.7)
Charge for the year | – | 21.9 | 11.5 | 0.8 | 19.3 | 53.5
Disposal | – | – | – | – | (6.3) | (6.3)
Impairment | – | – | – | – | – | –
At 31 December 2023 | 537.1 | 381.3 | 49.2 | 28.8 | 173.4 | 632.7
Net book value at 31 December 2023 | 1,385.8 | 152.1 | 66.1 | 1.4 | 111.3 | 330.9

Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.22
2: Sustainability Report1: Strategic Report 3: Financial Report
Impairment review
In order to determine whether impairments are required, the Group estimates the recoverable amount of
each CGU. The calculation is based on projecting future cash flows over a five-year period and using a terminal
value to incorporate expectations of growth thereafter. The long-term growth rate is used in the perpetuity
calculations. A discount factor is applied to obtain a value in use which is the recoverable amount. Goodwill
arising in year from acquisitions is assessed for impairment separately from the above CGUs and on an
acquisition-by-acquisition basis. There was no impairment of goodwill for Base Met Labs from the date of
acquisition to 31 December 2024. There would be no impact on the impairment review through the inclusion
of Base Met Labs within the CGU review. No impairments were required on goodwill arising in 2024 (2023:
no impairments).
The calculation of the value in use includes assessment of long-term growth rates and discount rates.
Long-term growth rates predict growth beyond the Group’s planning cycle, and range from 2.3% to 3.0%
(2023: 2.3% to 3.0%). The discount rate for each CGU is based on the Group’s weighted average cost of
capital adjusted for the risks specific to the CGU. Pre-tax discount rates ranged from 9.3% to 10.6%
(2023: 11.4% to 13.4%). The underlying cash flows include consideration of the potential impact of inflation.
Key assumptions
The key assumptions include the rate of revenue and profit growth within each of the territories and business
lines in which the Group operates. These are based on the Group’s approved budget and five-year strategic
plan. Finally, the discount rate used to bring the cash flow back to a present value varies depending on the
location of the operation and the nature of the operations. The estimated future cash flows are discounted to
their present value using a discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset.
Sensitivity analysis
None of the reasonable downside sensitivity scenarios on key assumptions would cause the carrying amount
of each CGU to exceed its recoverable amount. The sensitivities modelled by management include:
(i) Assuming revenues decline each year by 1% in 2025 to 2029 from the 2025 budgeted revenues, with
margins increasing with base assumptions.
(ii) Assuming zero growth in operating profit margins in 2025 to 2029 with revenues increasing per base
assumptions.
(iii) Assuming an increase in the discount rates used by 1%.
Management considers that the likelihood of any or all of the above scenarios occurring is low.
9 Goodwill and other intangible assets Continued
Goodwill
Goodwill arising from acquisitions in the current and prior year has been allocated to reportable segments
as follows:

| 2024 | 2023
| £m | £m
Consumer Products | – | –
Corporate Assurance | – | 17. 0
Health and Safety | – | 13.2
Industry and Infrastructure | 15.4 | –
World of Energy | – | –
At 31 December | 15.4 | 30.2

In performing our annual impairment testing, the recoverable amount of each CGU has been calculated based
on its value in use, estimated as the present value of projected future cash flows.
The goodwill held in the CGUs and aggregated groups of CGUs shown below is considered significant within the
total carrying amount of goodwill at 31 December 2024:

| 2024 pre-tax | 2024 | 2023
| discount rate | £m | £m
Consumer Products 1 | 9.3–9.4% | 103.1 | 104.0
Corporate Assurance 2 | 9.4–9.5% | 681.9 | 705.1
Health and Safety 3 | 9.4–9.5% | 125.9 | 150.2
Industry and Infrastructure 4 | 9.5–10.6% | 286.2 | 271.5
World of Energy 5 | 9.4–9.7% | 168.8 | 155.0
At 31 December 6 |  | 1,365.9 | 1,385.8

1 Within Consumer Products, goodwill allocated to the Electrical & Connected World CGU was £88.1m (2023: £88.5m) and the pre-tax discount
rate was 9.4%.
2 Within Corporate Assurance, goodwill allocated to the Business Assurance CGU was £676.7m (2023: £699.7m), and the pre-tax discount
rate was 9.4%.
3 Within Health and Safety, goodwill allocated to the Food CGU is £35.4m (2023: £40.8m), and goodwill allocated to the Chemicals & Pharma
CGU is £76.7m (2023: £76.6m). Pre-tax discount rates were 9.4% and 9.5% respectively.
4 Within Industry and Infrastructure, goodwill allocated to the Minerals CGU is £47.7m (2023: £36.9m) and goodwill allocated to the Building
& Construction CGU is £227.5m (2023: £223.7m). Pre-tax discount rates were 10.6% and 9.5% respectively.
5 Within World of Energy, goodwill allocated to the Caleb Brett CGU is £55.1m (2023: £42.5m), goodwill allocated to the Transportation
Technologies CGU is £44.7m (2023: £44.5m) and goodwill allocated to the CEA CGU is £65.1m (2023: £63.6m). Pre-tax discount rates were
9.7%, 9.4% and 9.5% respectively.
6 All goodwill is recorded in local currency. Additions during the year are converted at the exchange rate on the date of the transaction and
the goodwill at the end of the year is stated at closing exchange rates.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.23
2: Sustainability Report1: Strategic Report 3: Financial Report
Goodwill and intangible assets
The total goodwill arising on acquisition made during 2024 was £15.4m, of which £nil is expected to be
deductible for tax purposes. The goodwill arising represents the value of the assembled workforce and the
benefits the Group expects to gain from increasing its presence in the relevant sectors in which the acquired
businesses operate. The intangible assets of £7.7m primarily represent the value of customer relationships and
trade names. The final values will be calculated within 12 months following the date of acquisition. The
deferred tax liability thereon was £2.1m.
Consideration paid
The total cash consideration for the acquisitions in the year was £14.9m (2023: £43.6m), with further deferred
and contingent considerations payable of £8.4m as at 31 December 2024 (2023: £5.5m) that comprises £8.7m
purchase consideration and £0.3m revaluation of contingent consideration recognised during the year, which is
disclosed in note 13. Cash consideration includes cash acquired of £0.3m (2023: £3.1m). The estimated
purchase price net of cash was £23.6m (2023: £40.5m).
Contribution of acquisitions to revenue and profits
In total, acquisition made during 2024 contributed revenues of £5.7m (2023: £9.1m) and a statutory net profit
after tax of £2.0m (2023: £1.4m) from the date of acquisition to year-end. The Group revenue and statutory
profit after tax for the year ended 31 December 2024 would have been £3,394.3m and £367.5m respectively
if the acquisitions were assumed to have been made on 1 January 2024.
Acquisition-related costs
Acquisition-related costs of £1.3m related to current year acquisitions are included in operating costs in
the consolidated income statement as an SDI (see note 3) and in operating cash flows in the consolidated
statement of cash flows.
10 Acquisitions
Acquisitions in 2024
On 1 March 2024, the Group acquired Base Metallurgical Laboratories Ltd. and Base Met Labs US Ltd. (jointly
‘Base Met Labs’), a leading provider of metallurgical testing services for the Minerals sector based in North
America, for a purchase price of £23.9m. Purchase consideration net of cash acquired was £23.6m. The
purchase price includes cash consideration of £14.9m, further contingent consideration payable of £7.8m and
deferred consideration of £0.9m. The cash outflow in the period associated with this acquisition was £14.9m.
The acquisition of Base Met Labs will expand Intertek’s industry leading ATIC offering in the Minerals industry,
growing its geographic footprint into North America. Base Met Labs metallurgy capabilities are complementary
to Intertek’s existing strengths in geochemistry, mine site laboratories and trade inspection, creating synergies
across the Intertek ATIC Minerals project cycle.
Provisional details of the net assets acquired and fair value adjustments are set out in the following tables.
These analyses are provisional and amendments may be made to these figures in the 12 months following
the date of acquisition.

| 2024
| Provisional
| fair value to
| Group on
Base Met Labs | acquisition
Total | £m
Property, plant and equipment | 3.1
Goodwill | 15.4
Other intangible assets | 7.7
Trade and other receivables | 1.3
Trade and other payables | (1.8)
Deferred tax liabilities | (2.1)
Net assets acquired (net of cash acquired) | 23.6

Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.24
2: Sustainability Report1: Strategic Report 3: Financial Report
Key assumptions
The key assumptions in deriving the contingent consideration to be recognised include the weighted
probability of making a payout and the discount rate used to bring the cash flow back to present values.
The discount rates used for the calculation are aligned with the discount rates used for impairment purposes
as set out in note 9.
Sensitivity analysis
It is estimated that an increase of 1% in the discount rate used to calculate the contingent consideration would
have decreased the financial liability by £0.2m, and a 1% decrease in the discount rate would have increased
the financial liability by £0.2m. It has also been estimated that an increase of 10% in the probability used to
calculate the contingent consideration would have increased the financial liability by £4.6m, whilst a decrease
of 10% in the probability used would have decreased the financial liability by £4.6m.
11 Trade and other receivables
Accounting policy
Trade receivables are recognised initially at the value of the invoice sent to the customer and subsequently
at the amounts considered recoverable (amortised cost). Estimates are used in determining the level of
receivables that will not, in the opinion of the Directors, be collected. The Group applies the simplified approach
permitted by IFRS 9, which requires the use of the lifetime expected loss provision for all receivables, including
contract assets. The provision calculations are based on historical credit losses and forward-looking data,
namely specific country risk classifications with higher default rates applied to older balances. This approach
is followed for all receivables unless there are specific circumstances, such as the bankruptcy of a customer
or emerging market risks, which would render the receivable irrecoverable and therefore require a specific
provision. A provision is made against trade receivables and contract assets until such time as the Group believes
the amount to be irrecoverable, after which the trade receivable or contract assets balance is written off.
Trade and other receivables
Trade and other receivables are analysed below:

| Current | Current | Non-current | Non-current
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
Trade receivables | 521.9 | 512.7 | 7. 5 | 13.9
Contract assets | 112.3 | 107.2 | – | –
Other receivables | 60.3 | 52.0 | 7.9 | 7.9
Prepayments | 60.4 | 53.2 | – | –
Total trade and other receivables | 754.9 | 725.1 | 15.4 | 21.8

Trade receivables and contract assets are shown net of allowance for impairment losses of £10.3m
(2023: £11.2m) and £2.1m (2023: £1.6m) respectively. Net impairment on trade receivables and contract assets
charged as part of operating costs was £3.2m (2023: £2.3m charge) and £0.6m (2023: £nil ) respectively.
There is no material difference between the above amounts for trade and other receivables and their fair value,
due to their short-term duration. There is no concentration of credit risk with respect to trade receivables as
the Group has a large number of customers who are internationally dispersed. Non-current receivables are
discounted to the present value using an appropriate discount rate.
10 Acquisitions Continued
Acquisitions in 2023
On 31 March 2023, the Group acquired Controle Analítico Análises Técnicas Ltda (‘Controle Analítico’), a
leading provider of environmental analysis, with a focus on water testing, based in Brazil, for a purchase
price of £18.8m. Purchase consideration net of cash acquired was £18.3m. The purchase price includes cash
consideration of £15.1m and a further contingent consideration payable of £3.7m. The net cash outflow in
the period associated with this acquisition was £14.6m.
On 9 August 2023, the Group acquired PlayerLync Holdings, Inc. (‘PlayerLync’), a leading SaaS-based platform
which combines mobile learning, operational support and compliance, content management and people
engagement in a single application, based in the USA, for a purchase price of £28.5m. Purchase consideration net
of cash acquired was £25.9m. The net cash outflow in the period associated with this acquisition was £25.9m.
The net assets acquired and fair value adjustments are set out in the following tables:

| 2023
| Fair value to
| Group on
Controle Analítico Análises Técnicas Ltda | acquisition
Total | £m
Property, plant and equipment | 2.2
Goodwill | 13.2
Other intangible assets | 5.4
Trade and other receivables | 0.6
Trade and other payables | (0.8)
Deferred tax liabilities | (2.3)
Net assets acquired (net of cash acquired) | 18.3

| 2023
| Fair value to
| Group on
PlayerLync Holdings, Inc | acquisition
Total | £m
Goodwill | 17.0
Other intangible assets | 11.2
Trade and other receivables | 3.0
Trade and other payables | (1.9)
Deferred tax liabilities | (3.4)
Net assets acquired (net of cash acquired) | 25.9

The provisional fair values disclosed in 2023 have been updated for PlayerLync, resulting in a reduction in
goodwill of £2.1m and recognition of deferred tax asset on net operating losses. These fair value adjustments
were made in the 12 months following the acquisition and are now final.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.25
2: Sustainability Report1: Strategic Report 3: Financial Report
12 Trade and other payables
Accounting policy
Trade payables
Trade payables are recognised at the value of the invoice received from a supplier. The carrying value of trade
payables is considered approximate to fair value.
Trade and other payables
Trade and other payables are analysed below:

| Current | Current | Non-current | Non-current
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
Trade payables | 223.0 | 204.8 | 0.5 | 0.5
Other payables | 79.0 | 76.8 | 20.2 | 19.5
Accruals | 318.9 | 305.5 | 7.1 | 3.7
Contract liabilities | 136.7 | 148.5 | 22.0 | 6.4
Total trade and other payables | 757.6 | 735.6 | 49.8 | 30.1

The Group’s exposure to liquidity risk related to trade payables is disclosed in note 14. £128.1m of contract
liabilities at the end of 2023 was recognised in revenue in 2024 (2023: £133.3m).
Other payables include revenue taxes, interest payable and retirement liabilities.
Contract liabilities consist of consideration received in advance of the Group transferring the related good
or service to the client.
In one part of the Group an arrangement is available that allows payment terms to suppliers to be extended
by up to 65 days. At 31 December 2024, this arrangement was applicable to trade payables totalling £2.5m
(2023: £2.3m).
11 Trade and other receivables Continued
The ageing of trade receivables and contract assets at the reporting date was as follows:

| 2024 | 2023
| £m | £m
Under 3 months | 543.4 | 528.1
Between 3 and 6 months | 54.9 | 57.3
Between 6 and 12 months | 21.4 | 25.7
Over 12 months | 34.4 | 35.5
Gross trade receivables and contract assets | 654.1 | 646.6
Allowance for impairment | (12.4) | (12.8)
Trade receivables and contract assets, net of allowance | 641.7 | 633.8

Included in trade receivables under three months of £437.7m (2023: £424.8m) are trade receivables of
£386.2m (2023: £374.4m) that are not yet due for payment.
The movement in the allowance for impairment in respect of trade receivables and contract assets during
the year was as follows:

| 2024 | 2023
Impairment allowance for doubtful trade receivables and contract assets | £m | £m
At 1 January | 12.8 | 15.6
Exchange differences | (1.3) | (2.3)
Acquisitions | 0.1 | 0.1
Net impairment loss recognised | 3.8 | 2.3
Receivables written off | (3.0) | (2.9)
At 31 December | 12.4 | 12.8

Sensitivity analysis
Trade receivables and contract assets are assessed for impairment using a calculated credit loss assumption.
A 0.25% variance in the assumed credit risk factor would impact impairment by £2.1m. There were no material
individual impairments of trade receivables or contract assets.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.26
2: Sustainability Report1: Strategic Report 3: Financial Report
13 Provisions
Accounting policy
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation
that can be estimated reliably as a result of a past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation.
Provisions

| Contingent |  |  |
| consideration | Claims | Other | Total
| £m | £m | £m | £m
At 1 January 2024 | 35.6 | 5.4 | 12.8 | 53.8
Exchange adjustments | (0.9) | (0.4) | (0.3) | (1.6)
Provided in the year: | – | 6.8 | 16.5 | 23.3
in respect of current year acquisitions | 8.4 | – | – | 8.4
in respect of prior year acquisitions | 5.2 | – | – | 5.2
Released during the year | (1.5) | (0.7) | (0.7) | (2.9)
Utilised during the year | – | (7.9) | (16.0) | (23.9)
At 31 December 2024 | 46.8 | 3.2 | 12.3 | 62.3
Included in: |  |  |  |
Current liabilities | 38.8 | 3.2 | 11.9 | 53.9
Non-current liabilities | 8.0 | – | 0.4 | 8.4
At 31 December 2024 | 46.8 | 3.2 | 12.3 | 62.3

The maximum contingent consideration, on a discounted basis, that could be paid in relation to acquisitions is
£208.7m. Further detail on the timing of the cash flow can be found in note 14. The contingent consideration
is a financial liability discounted to the present value of the redemption amount held at fair value through profit
and loss with the measurement basis disclosed in note 14.
The Group is involved in various claims and lawsuits incidental to the ordinary course of its business. The
outcome of such litigation and the timing of any potential liability cannot be readily foreseen, as it is often
subject to legal proceedings. Based on information currently available, the Directors consider that the cost
to the Group of an unfavourable outcome arising from such litigation is unlikely to have a materially adverse
effect on the financial position of the Group in the foreseeable future.
The provision for claims of £3.2m (2023: £5.4m) represents an estimate of the amounts payable in connection
with identified claims from customers, former employees and other plaintiffs and associated legal costs. The
timing of the cash outflow relating to the provisions is uncertain but is likely to be within one year. Details of
contingent liabilities in respect of claims are set out in note 22.
The other provision of £12.3m (2023: £12.8m) includes restructuring provisions. The timing of the cash
outflow is uncertain, but is likely to be within one year.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.27
2: Sustainability Report1: Strategic Report 3: Financial Report
14 Borrowings and financial instruments
Accounting policy
Net financing costs
Net financing costs comprise: interest expense on borrowings; interest expense on tax balances; facility
fees; interest receivable on funds invested; interest income and expense relating to pension assets and
liabilities and lease interest expense under IFRS 16; net foreign exchange gains or losses on financial assets
or liabilities; unrealised market or fair value gains or losses on financial assets or liabilities, including contingent
consideration; and gains and losses on hedging instruments that are recognised in the income statement.
Interest income and interest expense are recognised as they accrue using the effective interest rate method.
As permitted by IAS 7, interest paid is classified within operating cash flows and interest received is classified
within investing cash flows.
Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently at amortised cost less
impairment losses (including bad debt provision).
Cash and cash equivalents and net debt
Cash and cash equivalents on the balance sheet comprise cash at bank and in hand and short-term deposits
with original maturities of less than 90 days which are subject to an insignificant risk of changes in value.
Current assets include deposits with maturities exceeding 90 days. In the consolidated statement of
cash flows, net cash and cash equivalents comprise cash and cash equivalents, as defined above, net of bank
overdrafts. Net financial debt comprises borrowings less cash and cash equivalents and total net debt is net
financial debt plus the IFRS 16 lease liability.
Non-derivative financial liabilities
Trade and other payables are recognised initially at fair value and subsequently at their amortised cost.
Interest-bearing borrowings are initially recognised at fair value less transaction costs. Subsequent to initial
recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and
redemption value being recognised in the income statement over the period of the borrowings on an effective
interest basis.
Put options held by non-controlling interests that arise on acquisition are recognised initially at the present
value of the redemption amount. They are subsequently measured at amortised cost using the effective
interest method. The discount is unwound through SDIs as a finance charge.
Derivative financial instruments
The Group uses derivative financial instruments, including cross currency interest rate swaps and foreign
currency forwards, to hedge economically its exposure to foreign exchange risks. In accordance with its
treasury policy, the Group does not hold or issue derivative financial instruments for speculative purposes.
Derivative financial instruments are recognised initially and subsequently at fair value; attributable
transaction costs are recognised in profit or loss when incurred. The gain or loss on remeasurement to
fair value at each period end is recognised immediately in the income statement except where derivatives
qualify for hedge accounting.
The fair value of cross currency interest rate swaps is estimated using the present value of the estimated
future cash flows based on observable yield curves.
The fair value of foreign currency forwards is estimated using present value of future cash flows based on
the foreign exchange rates at the balance sheet date.
Hedging
Hedge of monetary assets and liabilities
Where a derivative financial instrument is used economically to hedge the foreign exchange exposure
of a recognised monetary asset or liability, no hedge accounting is applied and any gain or loss on the
hedging instrument is recognised in the income statement in the same caption as the foreign exchange
on the related item.
Hedge of net investment in foreign operations
The Group is exposed to foreign exchange risk exposure arising from its net investment in foreign currency
operations and net assets. To the extent that the Group has debt, it is held in currencies that hedge the foreign
exchange risks from the Group’s net investments, or cross currency interest rate swaps are used to achieve the
same objective.
The portion of the gain or loss on an instrument designated as a hedge of a net investment in a foreign
operation that is determined to be an effective hedge is recognised directly in equity in the translation reserve.
The value in relation to the hedge instrument that is held within the cumulative foreign currency translation
reserve is recycled through the income statement when the hedged subsidiary is disposed of. If the instrument
is no longer deemed effective, then future movements in fair value are posted to the income statement.
Cash flow hedges
Cash flow hedges comprise derivative financial instruments designated in a hedging relationship to
manage interest rate risk and foreign exchange risk to which the cash flows of certain assets and liabilities
are exposed. The Group is exposed to the variability in cash flows arising from the foreign exchange risk
exposures. In accordance with the Group’s hedging strategy, the Group has cross currency interest rate
swaps designated as cash flow hedges.
The effective portion of changes in the fair value of a derivative that is designated and qualifies for hedge
accounting is recognised in other comprehensive income. The value in relation to the hedge instrument that
is held within the cumulative cash flow hedge reserve (disclosed within other reserves) is recycled through
the income statement when the hedged item impacts the income statement. If the instrument is no longer
deemed effective, then future movements in fair value are posted to the income statement.
Intertek Group plc
Annual Report & Accounts 2024
Notes to the financial statements Continued
3.28
2: Sustainability Report1: Strategic Report 3: Financial Report
14 Borrowings and financial instruments Continued
Impairment
A financial asset is assessed for impairment at each reporting date by application of an expected loss model
in line with IFRS 9 requirements.
Net financing costs
Net financing costs are shown below:

| 2024 | 2023
Recognised in income statement | £m | £m
Finance income |  |
Interest on bank balances | 2.5 | 3.8
Total finance income | 2.5 | 3.8
Finance expense |  |
Interest on borrowings | (30.5) | (33.6)
Net pension interest income/(cost) (note 16) | 1.0 | 1.0
Foreign exchange differences on revaluation of net monetary assets and liabilities | (2.4) | (2.5)
Leases – IFRS 16 | (10.8) | (10.8)
Facility fees and other* | (5.5) | (21.8)
Total finance expense* | (48.2) | (67.7 )
Net financing costs* | (45.7) | (63.9)

* Includes £3.4m cost (2023: £20.0m cost) relating to SDIs.
Analysis of net debt

| 2024 | 2023
| £m | £m
Cash and cash equivalents per the statement of financial position | 343.0 | 299.3
Overdrafts | (6.5) | (0.7)
Cash per the statement of cash flows | 336.5 | 298.6

The components of net debt are outlined below:

| 1 January |  | Non-cash | Exchange | 31 December
| 2024 | Cash flow | movements | adjustments | 2024
| £m | £m | £m | £m | £m
Cash | 298.6 | 52.5 | – | (14.6) | 336.5
Borrowings: |  |  |  |  |
Revolving credit facility US$850m 2027 | – | (24.7) | – | 4.7