Carbon Reduction Plan

Reporting period: 1 January 2024 – 31 December 2025 |  Baseline year: 2024

Document reference: CRP-RPT-2024-2025 v1.0  |  Published: January 2026

Prepared in accordance with:

PPN06/21  · GHG Protocol Corporate Standard ·  UK SECR  ·  ISO14064-1:2018  ·  DESNZ 2024 Conversion Factors

1. Commitment to Net Zero                                                            

Asset Reality Ltd is committed to achievingNet Zero greenhouse gas (GHG) emissions across all Scopes (1, 2, and 3) by 2050at the latest, consistent with the UK Climate Change Act 2008 (as amended 2019)and the Paris Agreement 1.5°C pathway.

 As a provider of digital asset custody and training services to law enforcement agencies and government bodies globally,we recognise our responsibility to measure, manage, and reduce ourenvironmental impact. This Carbon Reduction Plan (CRP) constitutes ourcompliant submission under Procurement Policy Note PPN 06/21.

Our 2024 baseline total emissions are 352.20tCO₂e (location-based). Against this baseline, we commit to:

•      A 30% absolute reduction in total GHG emissions by 2030: target: 246.54 tCO₂e;

•      A 90%+ absolute reduction by2050 (Net Zero): residual target: 35.22 tCO₂e, balanced by permanent carbon removal.

These targets will be submitted to theScience Based Targets initiative (SBTi) for independent validation under theSBTi SME or Corporate Net-Zero Standard pathway within 24 months of this CRP’s publication.

2. Baseline Emissions - 2024

The 2024 baseline GHG inventory covers AssetReality Ltd’s UK operations for the calendar year 1 January – 31 December 2024.The inventory was prepared using DESNZ 2024 GHG Conversion Factors and GHGProtocol Corporate Standard methodology.

2.1 Baseline Emissions Summary

Data quality key: A = Activity-based (distance × DESNZ 2024 conversion factor) | F =Finance-derived (spend-based proxy) | E = Estimated/proxy. Target: reduce E-rated categories to <20% of inventory by 2027.

2.2 Baseline Intensity Metrics (2024)

3. Current Year Emissions - 2025

The 2025 GHG inventory covers the calendar year 1 January – 31 December 2025, using the same methodology and DESNZ 2024conversion factors as the baseline for year-on-year comparability.

3.1 Current Year Emissions Summary

3.2 Year-on-Year Commentary

Total location-based emissions reduced from352.20 tCO₂e in 2024 to 291.98 tCO₂e in 2025 — a reduction of 60.2 tCO₂e(−17.1%). This represents positive progress against our 2030 target pathway, though two areas warrant attention:

•      Business travel fell sharply(−56.5 tCO₂e, −45%), reflecting a shift to shorter-haul international routes and increased virtual engagement.

•      Cloud / IT services increased significantly (+41.2 tCO₂e, +42%), driven by increased IT software spend. Thisis the primary area for action in 2026.

•      Purchased goods & services fell significantly (−47.4 tCO₂e, −45%), reflecting lower consulting andprofessional services spend in 2025.

3.3 2025 Intensity Metrics

4.Emissions Reduction Targets

4.1 Near-Term Target - 30% Reduction by 2030

Base year: 2024 (352.20 tCO₂e location-based). Target: 246.54 tCO₂e by 31 December 2030. This represents a30% absolute reduction, consistent with a 1.5°C-aligned near-term SBTi trajectory.

We project that carbon emissions will decrease over the next five years to 246.54 tCO₂e by 2030. This is a reduction of 30%.

4.2 Long-Term Target - Net Zero by 2050

Long-term target: ≥90% absolute reduction from 2024 baseline by 2050, with residual emissions (≤35.22 tCO₂e) balanced by high-quality permanent carbon removal (Gold Standard / VCS-certified removals).Net Zero is not claimed until genuine residual emissions reach this threshold.

5. Carbon Reduction Initiatives

5.1 Completed and In-Progress Initiatives

The following environmental management measures and projects have been completed or implemented since the 2024baseline. The carbon emission reduction achieved by these schemes equates to60.22 tCO₂e, a 17.1% reduction against the 2024 baseline, and the measures will be in effect when performing the contract.

•      Initiative 1 - Virtual-FirstBusiness Travel Policy (Phase 1 complete – In Progress)

•      Initiative 4 - IT AssetLifecycle Extension & Responsible Disposal (Phase 1 complete – In Progress)

Initiative 1: Virtual-First Business Travel Policy

Implement a mandatory virtual-first policy for all internal meetings and client engagements where in-person attendance is not contractually required. Require executive pre-approval for any long-haul flight. Introduce a per-employee annual flight carbon budget.

Initiative 4: IT Asset Lifecycle Extension & Responsible Disposal

Extend average device lifecycle from 3 to 4+years across all laptops and peripheral equipment. Implement an IT asset register to track age and condition. Partner with a certified IT asset disposal(ITAD) provider for end-of-life devices to ensure responsible recycling and reduce the embodied carbon embedded in hardware procurement.

Initiative 7: Training Programme Delivery Optimisation

Review all multi-day international training programmes for hybrid or virtual delivery options. Where in-person delivery is contractually required, consolidate traveller routing to minimise total passenger-km. Shift multi-destination training tours to hub-and-spoke models rather than multiple separate flights.

5.2 Future Carbon Reduction Initiatives

In the future we plan to implement further measures including submitting our targets to the Science Based Targets initiative (SBTi) for validation and pursuing ISO 14001 environmental management certification. The 2026 reduction focus is as follows:

•      Initiative 2 - CloudProvider Rationalisation and Accounting (due 2026)

•      Initiative 3 - REGO Procurement — Renewable Electricity (due 2026)

•      Initiative 5 - EmployeeCommuting Survey and Travel-to-Work Scheme (due 2026)

•      Initiative 6 - SupplierCarbon Engagement Programme (due 2026–2027)

Initiative 2: Cloud Provider Rationalisation and Accounting (Method 1)

Access cloud provider carbon footprint tools to replace the current spend-based proxy (Method 2) with verified provider data(Method 1). Infrastructure rationalisation will be undertaken alongside data quality improvement. This will improve accuracy and may reveal actual emissions are lower than the current proxy suggests.

Initiative 3: REGO Procurement - Renewable Electricity

Procure Renewable Energy Guarantees of Origin(REGOs) or a REGO-backed green tariff to eliminate Scope 2 market-based emissions. Confirm with office providers that certificate-backed supplier-specific emission factors are available.

Initiative 5: Employee Commuting Survey and Travel-to-Work Scheme

Conduct the first formal annual employee commuting survey to establish accurate Cat 7 baseline data. Introduce a cycle-to-work scheme, rail season ticket loans, and bus pass salary sacrifice arrangement to shift modal split away from single-occupancy car commuting.

Initiative 6: Supplier Carbon Engagement Programme

Require all top-10 suppliers (by spend) to provide Carbon Reduction Plans or equivalent emissions disclosures as part of contract renewal and procurement evaluation. Prioritise suppliers with verified SBTi targets. Target: 60% of Cat 1 spend covered by supplier-specific data by 2027.

6.Methodology

6.1 Standards Applied

•      GHG Protocol CorporateAccounting and Reporting Standard (WRI/WBCSD, revised edition)

•      GHG Protocol Scope 2 Guidance —both location-based and market-based methods reported

•      GHG Protocol Corporate ValueChain (Scope 3) Accounting and Reporting Standard

•      UK DESNZ GHG Conversion Factors for Company Reporting — 2024 version (published June 2024)

•      ISO 14064-1:2018 - five principles: relevance, completeness, consistency, accuracy, transparency

•      UK Procurement Policy Note PPN06/21 (effective 30 June 2021, updated September 2023)

6.2 Organisational Boundary

Operational control approach (GHG Protocol).Reporting entity: Asset Reality Ltd (UK legal entity). UK operations include the London HQ office (serviced office) and all employee activity within the reporting year.

6.3 Scope 3 Categories - Materiality

6.4 Data Quality and Limitations

This inventory uses activity-based calculation for business travel and spend-based proxy estimates for remainingScope 3 categories. The following limitations apply:

•      Scope 2 electricity: no direct utility metering data available (serviced office); estimated using a recognised UK office benchmark per FTE. Actual meter readings should be obtained from the landlord for future years.

•      Business travel: calculated using passenger-kilometres by mode and class from itinerary data, multiplied byDESNZ 2024 GHG conversion factors with radiative forcing applied to all airtravel. Hotel nights excluded pending supplier-specific data (DESNZ removed the hotel overnight factor from 2023 onwards).

•      Employee commuting: no survey conducted in 2024 or 2025; mode-split proxy applied (30% car, 50% rail, 20%cycling/walking). First formal survey planned for 2026.

•      Cloud / IT: spend-based proxy(DESNZ SIC 62/63 factor) applied to the IT Software & Consumables spend line. Cloud provider carbon tool outputs, combined with infrastructure rationalisation, will replace this by 2026 reporting.

7. PPN 06/21 Compliance Checklist

8. Declaration and Sign-Off

This Carbon Reduction Plan has been prepared in accordance with PPN 06/21, the GHG Protocol Corporate Standard, UK SECR requirements, and ISO 14064-1:2018. Emissions have been calculated using UKGovernment DESNZ 2024 GHG Conversion Factors. This CRP is published on AssetReality’s website and is available to contracting authorities upon request.

By signing this document, Asset Reality Ltd confirms that this Carbon Reduction Plan constitutes a compliant submission under PPN 06/21 and accurately reflects the organisation’s 2024 baseline emissions, 2025 current year emissions, and carbon reduction commitments through to 2050.