Engagement update with Zotefoams
Our recent engagement with leading foam manufacturer Zotefoams covered a broad range of subjects, including emissions target validation and animal welfare. In this engagement update, Castlefield Stewardship Assistant Ffion Spencer provides a review of the meeting with Zotefoams.
Zotefoams, held in our UK Smaller Companies fund, manufactures and supplies specialised, lightweight, high performance foams1. Thanks to their durability and integrity, these materials often deliver the same or better performance while using less material.
The lightweight nature of Zotefoams’ products also helps reduce resource consumption and associated emissions in their end applications. We frequently hear from investee companies about the challenges associated with measuring carbon emissions.
We were pleased to hear that Zotefoams has begun working on carbon calculations across all sites
Although we have been encouraged by the recent disclosure improvements from Zotefoams, we wanted to get a better understanding of the company’s Scope 3 emissions, particularly because this is the most challenging aspect.
We were pleased to hear that Zotefoams has begun working on carbon calculations across all sites and that the company’s targets will be aligned with both the SBTi framework2 and the Green House Gas Protocol by the end of this process.
We often encourage investee companies to align their carbon emissions targets with the SBTi Corporate Net Zero Standard3. Therefore, we reinforced support for Zotefoams in pursuing approval for these targets once calculated.
The company has completed a full, audited Life Cycle Analysis (LCA) for its ‘Rezource’ product line and conducts ad-hoc assessments as requested by customers.
Recognising the complexity of assessing products with multiple end uses, Zotefoams is shifting focus towards Product Carbon Footprints, which are more carbon centric. A life cycle assessment (LCA) provides an analysis of all environmental impacts associated with a product, while a product carbon footprint (PCF) focuses specifically on the greenhouse gas emissions throughout a product's life cycle4.
We commended their progress on PCFs and appreciated their transparency regarding the challenges involved.
We were encouraged by Zotefoams’ openness to our ideas and their request for a follow-up call, positioning us as a valued sounding board going forward.
We noted that although Zotefoams supplies some products to the medical market, the company has not published an animal testing policy on its website. Zotefoams was able to assure us that it actively seeks to minimise the amount of animal testing it conducts, and that the company will use alternative methods for approval where possible.
Animal testing was most recently used in 2022 as requested by the customer, and before that was last conducted in 2005. The company was able to share an internal policy relating to the topic which outlined the information above.
We were able to see that Zotefoams has clear animal welfare principles and recommended that it publishes this policy on its website. Sometimes, our engagements coincide with an investee company’s strategic rethink, and this was one such occasion. We were encouraged by Zotefoams’ openness to our ideas and their request for a follow-up call, positioning us as a valued sounding board going forward. We look forward to supporting Zotefoams as it continues to strengthen its strategy and reporting of E.S.T. metrics.
Outcome: We are encouraged by Zotefoams’ improved disclosures, progress toward SBTi-aligned carbon targets, and willingness to incorporate our feedback, and we look forward to supporting their continued journey.
References:
1. Zotefoams | Advancing Sustainability in Foam Manufacturing
2. How it works - Science Based Targets Initiative
3. The Corporate Net-Zero Standard - Science Based Targets Initiative
4. iema-product-carbon-footprint-final-56-1.pdf
Information is accurate as at 08.08.2025. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.