Heidi Health Carbon Reduction Plan

Publication date: 02/12/2025

Commitment to Achieving Net Zero

Heidi Health Limited (UK) is committed to achieving Net Zero greenhouse gas emissions by 2050 at the latest, targeting a ≥90% absolute reduction from the baseline with high-quality neutralisation of any residual emissions thereafter. This plan will be reviewed annually and updated within six months of financial year-end.

Baseline Emissions

This is Heidi Health Limited (UK)'s first Carbon Reduction Plan submission.

• Baseline year: 1 July 2024 - 30 June 2025
• Baseline approach: GHG Protocol Corporate Standard and Corporate Value Chain (Scope 3) Standard; SECR for Scope 1-2 where applicable; PPN 006 technical standard for plan presentation
• Baseline scope coverage: Scope 1 and 2, and required subset of Scope 3 categories (business travel, employee commuting including home-working, waste, upstream/downstream transport, and purchased goods & services including cloud computing infrastructure)

Operational Boundaries

Consolidation: Operational control for UK operations.

In scope: This Carbon Reduction Plan covers UK activities under Heidi Health (UK) Limited including London office operations and home offices for England-based employees. Business travel and commuting activity attributable to UK staff are included in accordance with PPN 006 requirements. Cloud computing infrastructure supporting UK operations is included, specifically UK-region cloud services that are under Heidi Health Limited (UK)'s operational control and directly support UK customer deployments.

Out of scope: Non-UK legal entities and activities not under UK operational control are excluded from this CRP. Global cloud infrastructure not directly supporting UK operations is also excluded. Refrigerants will be assessed in future reporting periods once a comprehensive site-level inventory is completed.

Locations

Heidi Health Limited (UK)'s primary office is located at 140 Goswell Road, London, United Kingdom, EC1V 7DY, operating from a co-working space. Cloud infrastructure supporting UK operations is deployed in UK-region cloud services to ensure data residency compliance and low-latency access for UK-based healthcare customers.

Sites included in this Carbon Reduction Plan comprise the London co-working hub, home offices for approximately 30 England-based staff operating under a hybrid work pattern targeting 50% work-from-home arrangements, and ad-hoc meeting spaces used for business activities.

Time Period

The baseline reporting period for this Carbon Reduction Plan covers 1 July 2024 to 30 June 2025. During this period, Heidi Health Limited (UK) maintained a workforce of 30 full-time equivalent employees operating under a hybrid attendance policy that targets approximately 50% in-office working days. All commuting to the London office is conducted via rail in accordance with the company's rail-only commuting policy.

GHG Emission Conversion Factors

• UK Government GHG Conversion Factors 2024 and 2025 (DESNZ/DEFRA)
• Cloud provider carbon footprint tools for actual cloud infrastructure emissions
• AIB residual mix for market-based electricity where required
• EXIOBASE-based EEIO for spend-based screening

Baseline Emissions Summary

Cloud Infrastructure Emissions (Actual Data)

Cloud Services - UK Operations:

• Market-based emissions: 4.4 tCO2e
• Location-based emissions: 15.3 tCO2e
• Covers UK-attributable workloads in UK cloud regions
• Accounts for compute, storage, database, and AI/ML services supporting UK operations
• Monthly trend: 0.09 tCO2e (Jul 2024) → 0.65 tCO2e (Apr 2025), reflecting UK customer growth

Additional cloud services (limited deployment from Nov 2024):

• Scope 1: ~0.2 tCO2e/month average
• Scope 2: ~0.9 tCO2e/month average
• Scope 3: ~10.8 tCO2e/month average
• Note: Data available Nov 2024 onwards; limited to AI services and marketplace subscriptions supporting global Heidi operations (not UK-specific)

Table 1: Cloud Infrastructure Emissions Summary

Baseline Emissions by Scope

Table 2: Total Emissions by Scope

Intensity Metrics

• tCO2e/FTE: ~3.7 (market-based) / ~4.1 (location-based) based on 30 FTE

Rationale for FTE metric: Full-time equivalent employees is the most appropriate intensity metric for Heidi's digital healthcare service. As a software-as-a-service provider, revenue and service volumes fluctuate significantly with customer growth and deployment timing, while workforce size more directly correlates with operational emissions from infrastructure, offices, and business activities. FTE provides a stable, year-on-year comparable metric aligned to the company's operational control boundary.

Emissions Profile

Cloud computing infrastructure (UK-attributable) accounts for approximately 88% of total market-based emissions and approximately 87% of location-based emissions. This high proportion reflects the nature of Heidi's AI-powered healthcare platform, which requires significant compute resources for real-time speech-to-text medical transcription, large language model inference for clinical documentation, data residency compliance requiring UK/EU region deployment, and high-availability infrastructure in UK cloud regions.

The UK operational control approach adopted for this Carbon Reduction Plan means that only UK-attributable emissions aligned to Heidi Health Limited (UK)'s operational boundaries are included. This ensures accurate representation of the UK entity's environmental footprint.

Regional carbon intensity variations are evident in the emissions data: location-based emissions (15.3 tCO2e) are 3.5 times higher than market-based emissions (4.4 tCO2e), reflecting cloud providers' renewable energy procurement and carbon-free energy (CFE) investments in UK regions. This significant difference demonstrates the impact of cloud providers' renewable energy purchasing on market-based emissions accounting.

Cloud Infrastructure Detail

UK cloud operations for the reporting period July 2024 to June 2025 generated 4.4 tCO2e total market-based emissions, showing steady growth from 0.09 tCO2e per month in July 2024 to 0.65 tCO2e per month by April 2025. This growth trajectory reflects the scaling UK customer base and expanding NHS deployments during the baseline year.

Location-based emissions totaled 15.3 tCO2e for the same period. The UK electricity grid carbon intensity averaged approximately 0.207 kgCO2e/kWh during 2024-25. Cloud provider UK regions maintained approximately 75% carbon-free energy (CFE) matching, a figure that continues to improve year-on-year as providers expand their renewable energy procurement and hourly CFE matching capabilities.

Emissions Reduction Targets

• Long-term: Net Zero by 2040, ≥90% absolute reduction vs baseline with residual neutralisation
• Near-term (by 2030 from baseline):Scope 1+2: ≥52% absolute reductionScope 3: ≥42% absolute reductionAligned to cross-sector 1.5°C pathways per GHG Protocol

Offsetting policy: No carbon offsets will be used to achieve interim reduction targets. Offsets will only be considered for residual emissions (the final ≤10%) after achieving Net Zero, in accordance with PPN 06/21 guidance.

Carbon Reduction Projects

Completed Carbon Reduction Initiatives (Baseline Year)

During the baseline year, Heidi Health Limited (UK) implemented several foundational carbon reduction initiatives. A hybrid work model was established with a rail-only London commuting policy to minimize transport-related emissions. Where electricity is directly contracted, the company maintains a preference for renewable electricity backed by Renewable Energy Guarantees of Origin (REGO) certificates.

Device lifecycle extension and certified refurbishment programs were implemented to reduce embodied carbon from IT equipment. Annual greenhouse gas measurement processes were established in alignment with the GHG Protocol to ensure consistent and credible emissions tracking.

Significantly, cloud provider carbon footprint tracking was integrated into operational processes, enabling the collection of actual emissions data rather than relying solely on estimates. The UK operational boundary focus was also implemented, aligning cloud infrastructure reporting specifically to Heidi Health Limited (UK) rather than global operations, ensuring accurate and meaningful emissions attribution.

Planned Carbon Reduction Initiatives

Given that cloud infrastructure represents ~88% of market-based emissions, reduction efforts prioritize:

1. Cloud Carbon Optimization (FY2026-27)

Target: Significant reduction in cloud emissions intensity by FY2027

Actions:

• Right-sizing: Audit compute instances; eliminate over-provisioned resources
• Scheduling: Implement auto-shutdown for non-production environments
• Architecture optimization: Move to serverless and managed services where appropriate
• Regional optimization: Maximize use of UK cloud regions with highest CFE%
• Storage lifecycle management: Implement tiered storage and archival policies
• GPU efficiency: Optimize AI/ML inference batch sizes and model serving

Governance:

• Quarterly review of cloud usage correlated with emissions data
• Engineering KPIs: carbon intensity per API call, per transcription, per note generated

2. Cloud Provider Decarbonisation (Passive Reduction)

Heidi will benefit from ongoing cloud provider decarbonisation efforts, which will reduce our emissions independent of our own optimisation initiatives. As the UK electricity grid continues to decarbonise (with a target of full decarbonisation by 2035), location-based emissions from UK cloud regions will decline correspondingly. This grid-level transition represents a significant passive reduction pathway for cloud-dependent organisations.

Major cloud providers have committed to 100% renewable energy by 2025 and are making ongoing investments in carbon-free energy (CFE) matching on an hourly basis. UK cloud regions already demonstrate approximately 75% CFE matching and this figure continues to improve year-on-year as providers expand their renewable energy procurement programs. These renewable energy commitments directly reduce market-based emissions for cloud customers.

Cloud providers also continuously improve data center infrastructure efficiency, including power usage effectiveness (PUE), advanced cooling systems, and chip-level energy efficiency improvements. These infrastructure-level optimisations reduce the energy intensity of compute workloads over time. As cloud providers procure additional renewable energy and implement these efficiency improvements, market-based emissions for customers like Heidi will continue to decline.

Expected impact: Cloud provider decarbonisation alone is projected to reduce Heidi's Scope 2 emissions by 15-25% by 2030, independent of our own optimisation efforts. This passive reduction pathway is a significant component of our overall emissions reduction strategy.

3. Renewable Energy Procurement

Office electricity:

• Secure REGO-backed supply for London office
• Implement kWh metering for accurate tracking

Cloud services:

• Track cloud provider progress toward renewable energy commitments
• Engage cloud provider sustainability teams on UK region-specific CFE% improvements
• Prioritize cloud regions with highest renewable energy percentage as deployment scales

Target date: FY2026

4. Product-Level Carbon Accounting

• Implement carbon intensity per clinical note metric
• Track emissions per user, per consultation transcribed
• Transparent reporting to enterprise customers (NHS, health systems)
• Enable customers to make carbon-informed deployment decisions

Target date: FY2026

5. Travel & Commuting Initiatives

Business travel (Scope 3.6): Heidi will maintain rail-first enforcement for all UK business travel, requiring approval for any flights on routes where a rail-equivalent journey would take 6-7 hours or less. Rail kilometers will be systematically captured in booking systems to enable accurate tracking and reporting of business travel emissions.

Commuting & home-working (Scope 3.7): To reduce commuting emissions, Heidi will offer season-ticket loans for rail commuters and introduce off-peak travel incentives to shift travel patterns away from peak electricity demand periods. For home workers, who represent approximately 50% of working days under the hybrid model, the company will provide home energy efficiency guidance and green tariff recommendations to reduce home-working emissions. home-working emissions are calculated in accordance with UK Government Environmental Reporting Guidelines (DEFRA methodology), applying the mandatory home-working emissions factor per FTE per day worked from home.

Target date: FY2026-2027

Estimated reduction: 3-5%

6. Supplier Engagement

Heidi will engage Tier-1 suppliers on emissions reporting to better understand and influence the carbon footprint of purchased goods and services. Science Based Targets initiative (SBTi)-aligned procurement requirements will be included in new contracts to ensure suppliers are committed to meaningful decarbonisation pathways. Supplier carbon scorecards will be developed to track supplier performance and inform procurement decisions, prioritising suppliers with credible emissions reduction commitments and transparent reporting.

Target date: FY2027

Estimated reduction: 4-8%

7. Device Lifecycle Extension

Heidi will extend device lifecycles from the typical 3-year replacement cycle to 4 years or longer, reducing the embodied carbon from IT equipment procurement. When new devices are required, the company will prefer ENERGY STAR and Environmental Product Declaration (EPD) certified hardware to ensure energy efficiency and transparent environmental reporting. Certified refurbishment programs will be implemented to enable secure and environmentally responsible end-of-life management for IT assets, prioritising reuse and circular economy principles over disposal.

Target date: FY2026

Estimated reduction: 1-3%

Declaration and Sign-off

This Carbon Reduction Plan has been completed in accordance with PPN 006 guidance and the GHG Protocol Corporate Accounting and Reporting Standard.

Emissions are calculated using:

• UK Government GHG Conversion Factors (DESNZ/DEFRA) 2024 & 2025
• Cloud provider carbon footprint tools for actual UK cloud infrastructure emissions
• Recognised EEIO databases for spend-based categories
• AIB residual mix for market-based electricity accounting

Scope coverage: Scope 1 and 2 are disclosed in full accordance with SECR. The following Scope 3 categories are included as required by PPN 006:

• 3.1 Purchased Goods & Services (including cloud computing)
• 3.2 Capital Goods
• 3.3 Fuel & Energy-Related Activities
• 3.5 Waste Generated in Operations
• 3.6 Business Travel
• 3.7 Employee Commuting (including home-working)

Operational control approach: This CRP reports only UK-attributable emissions aligned to Heidi Health Limited (UK)'s operational boundaries, including UK-region cloud infrastructure. Additional cloud services (AI/ML platforms) supporting global Heidi operations are included on a proportional basis where usage data allows attribution to UK activities.

Baseline year: This is Heidi Health Limited (UK)'s first Carbon Reduction Plan submission. The baseline year is 1 July 2024 - 30 June 2025.

This plan will be reviewed and updated annually within six months of our financial year-end.

Approval:

This Carbon Reduction Plan has been reviewed and approved by the Board of Directors of Heidi Health Limited (UK).

Date of approval: 2 December 2025

Signed on behalf of Heidi Health Limited (UK):

Name: Tom Kelly

Role: Chief Executive Officer

Date: 2 December 2025

Name: Yassin Omar

Role: Head of Legal and Regulatory Affairs

Date: 2 December 2025

Sources and References

• UK Government GHG Conversion Factors 2024 & 2025 — DESNZ/DEFRA
• GHG Protocol Corporate Accounting and Reporting Standard — ghgprotocol.org
• GHG Protocol Scope 3 Calculation Guidance — ghgprotocol.org
• PPN 006: Taking account of Carbon Reduction Plans — Cabinet Office
• Environmental Reporting Guidelines including SECR — UK Government
• AIB European Residual Mix 2023 — Association of Issuing Bodies
• EXIOBASE 3.8.2 for EEIO screening