Ceres Power Holdings (LSE:CWR) — Annual Sustainability Report

0:01 Good afternoon, ladies and gentlemen, welcome to the CERES POWER HOLDINGS Annual Sustainability Report Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just please simply type in your questions at any time and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. And if you could give that your kind attention, I'm sure that the company would be

0:31 most grateful. I'd now like to hand over to director of corporate communications, Elizabeth Scarratt. Good morning. Good afternoon. Thanks, Mark, and hello, everyone, and and welcome to this, webinar. For those of you who don't know me, I'm Elizabeth Garrett, and I look after all aspects of investor and corporate communications at CERES. And thank you again for joining us as we take the opportunity to provide an update on CERES' progress across our environmental, social, and governance actions and reporting.

1:00 We hope you've had an opportunity to access our latest report, which is available on our website. It was published in October. And with us to talk through the report is Phil Caldwell, who many of you will know, is our CEO and also the chair of our ESG operational committee, along with members of his management team responsible for those three pillars, Mark Garrett, Michelle Trainor, and Deborah Grimerson. Really happy to take questions at the end of the presentation on the report. And for all other inquiries, you can reach the team @investorsatCERESPOWER.com. With that, I will hand over to Phil. Thanks. Okay. Thank you, Elizabeth, and thanks everybody for joining today. Let's just move on with the slides. So many of you will know CERES POWER.

1:48 I mean, we've been in this business for twenty years. We're a leading we're global leader in solid oxide technology. Initially, we we began the business really focused on on power generation, highly efficient power generation to drive a low carbon agenda there. In last the last few years, we've enhanced that with the investment that we're making into green hydrogen electrolysis technology. We're a licensing business. We have world leading technology that we we share with partners in order to address decarbonization globally at scale and pace. And that's where this business model really lends itself to our partnerships with the likes of Bosch, Weichai, Doosan, Shell, Shell and others, we're really able to roll out technology that makes a big difference on the decarbonization agenda.

2:37 And really to do that, we have a platform technology. So the the core CERES technology is is, first of all, applied to distributed power generation, which we've doing for quite a long time, but now more recently into decarbonization of the really hard to decarbonize industrial sectors, such as green steel, green ammonia, and future fuels. And some of you may have seen recent updates from the International Energy Agency and others about the projections for hydrogen. One of the key things that we see as we look forward is hydrogen is often looked at upon as a a good solution for many aspects of achieving decarbonization. But for certain fields, it's absolutely essential, and they are particularly in the industrial decarbonized decarbonization sessions that we're looking at in terms of steel, ammonia, and fuels. So we believe now with the direction we're taking as a company, we have a big role to play in in the future of hitting net zero and and decarbonization.

3:43 The way we approach this, and we'll talk about this today, is not just in terms of the the carbon avoidance that our technology represents, but also in the materials that we use in terms of not being reliant on hard to source ceramics, ceramics, precious metals, etcetera, and I'm very much looking at the the cradle to grave aspects of our technology. So we're gonna walk through that over the course of the presentation today. And some of you may have been involved in this, but this is the the materiality matrix that we we test out with all of our stakeholders, including some of our investors, in terms of what's important to ourselves at CERES what's important to our stakeholders and and how we prioritize how we operate the business and our ESG agenda.

4:32 And we we've updated this since last year. There's over 13 particularly high priority areas that we look at. But this is really part of the feedback loop that we we get through this kind of engagement. And today, we're gonna cover those those broad topics of the of the the ESG agenda as we walk through it today. So with that said, that's a brief introduction for me, but what I really want you to do is hear from from my executives who are responsible for the different aspects of this. And I'm gonna hand you over to Mark Garrett, my COO, to to walk you through the first part part of this. Mark? Thank you very much, Bill. So good afternoon, ladies and gentlemen. So as COO, I have particular responsibility for the environmental aspect of our sustainability activities. And over the next few minutes, I'd like to talk you through our greenhouse gas emissions breakdown by category as part of our SECI reporting.

5:29 Let's take a look at our year on year performance in those areas and just highlight a few points of interest, to talk a little bit about our long range forecasting around our emissions, and then finish by looking at some of the, benefits of the CERES technology as it pertains to our environmental footprint and impact. So just first of all, on that score, you'll see here the three scope requirements for CCR one, two, and three. Just to remind you that scope one is around our natural gas usage and company vehicles. And for us, natural gas is primarily around office and facility heating. We don't use any natural gas for our manufacturing process, we use some natural gas for our testing facilities as well.

6:20 Our scope two, which is identified as nearly around our electricity consumption, and we have been on renewable, electricity provision since 2021, which eliminates the carbon from our our our electricity use. And scope three, which is by far the largest category, is defined here. And you can see from the pie charts, the ring pie charts underneath,

6:45 it accounts for about 98 of our total carbon emissions. And of that, significant chunk, is around our purchase goods and services. We've purchased goods, around about two thirds of that, and our capital equipment around 20%. And bear in mind that our capital equipment is supporting our manufacturing, upgrades and changes as we move to next generation stack technologies, upgrading our facilities, and also expanding the capability and capacity of our test estate as well. So as a growth business, we're continually investing to allow us to get to market more quickly with the latest levels of technology. This year, as we have done in last year, we're collaborating with Ricardo Energy and and Environmental, to do the analysis and reporting on our carbon emissions.

7:35 We have upgraded and enhanced some of the carbon factors against our spend, which means the numbers this year are are quite a lot different to last year. It makes a year on year comparison quite difficult to do, but we believe this is the right step to get more accurate analysis of our spend as it pertains to our carbon emissions. So please bear that in mind as we start to look at the year on year data. As you look at that over the last three years, you'll see that they are flat or small levels of growth. The key element, again, is our scope three emissions, which is substantially the largest. And you'll see that twenty twenty to 2021 was a significant growth, which reflected the growth in the organization.

8:25 But this year, 2022, has seen quite a substantive drop, around about 17 sorry. Around about a 30% drop. This is primarily due to the different factors we've employed. If we look at a straight spend comparison, our CapEx spend has probably gone up by about 14%, and our spend on goods and services has increased by about 17% in line with our corporate growth. So on a like for like basis, we would have seen our c o two emissions go up. But in reality,

9:02 that the numbers that you have here for this last year, round about eighteen, nineteen thousand, is a better reflection of our carbon footprint, and we'll continue to refine those factors to give you a more accurate representation of our carbon emissions. It's quite pleasing, though, that we are seeing a reduction year on year on our carbon intensity as it's measured against our headcount and against our revenue. And we intend to try and keep that moving in the right direction as far as we can. If we look further ahead against our aspiration to achieve a net zero figure, the graphic here we've used in previous sustainability report, so you may be familiar with it. We're trying to demonstrate here that as a growth organization, we genuinely expect our carbon emissions at an absolute level to increase without any mitigation as we seek to accelerate the work we're doing to bring carbon reducing technologies to market.

10:05 So we believe we're doing the right thing to bring the right technology to bear, but that means that we will be, creating more greenhouse gases in the process, which are more than offset by the benefit of technology against alternative technologies. However, we are not satisfied with that, and we will be implementing mitigation factors, which will offset both the growth and the absolute numbers over time. And the yellow line there you see is the science based target reduction curve that we need to achieve to hit the 2050 net zero, goal that we we have set. So you can see that we will probably increase over the next few years before we start to see an absolute decrease, and we are in process at the moment with Ricardo, to define the exact steps which will achieve that mitigation path so that we can have a fully costed net zero strategy by the end of the year. And I hope we'll be able to to share the key elements of that in our reporting accounts next year.

11:06 So just to conclude my section one more slide. I'm very proud, really, to be able to talk about how inherently sustainable our design is. We've built much of this into our core cell and stack technology, which gives us a real competitive advantage for the CERES technology. As you'll see here, a vast substantial majority of our stack is based from, automotive grade steel, which is highly abundant. It's already used, quite a lot of recycled melt, in order to achieve that, and is one of the most widely recycled products at the end of life. And because we're running at the temperatures that we are, we don't have to use very high level content steels. We can run automated grade, which is a benefit.

11:56 We have very low levels of precious metals. And the table on the right shows, if we look at the transition metal categories, how much more effective, the CERES technology is against other competing similar technologies. This is not just small reductions. These are significant reductions. And for those of you who not scientists, when we talk about transition metals, we talk about things like scandium, titanium, vanadium, cobalt, zinc, elements like that within within that that category of chemicals. We are performing end of life recyclability assessments both individually and with our licensed partners. It's important to us that we achieve end of life recycling processes that can operate at gigawatt scale so that we can make the most of the recyclability of our stack technology.

12:53 And in parallel with that, we are constantly looking at ways of improving the efficiency of the materials that we're using so that per stack, our life cycle analysis is demonstrating a lower carbon footprint for every stack that we manufacture. And our next generation stack, which we will be releasing over the next, year or two, will will demonstrate a further enhancement of that footprint. So that's, all I needed to say at the moment on the environment aspect. I'd like to now hand over to Michelle to talk about the social aspects. Thank you, Mark, and good afternoon, everyone. As people director, I have responsibility for our people activities, and the social agenda, as part of our ESG overall agenda.

13:41 So keen energy starts with our people. There's no doubt to me that our people care deeply about our purpose, our planet, our partners, and each other. This is evidenced not just through our engagement survey, where 92% of our people stated that they cared about our purpose and that it made their job feel important. Through the unwavering passion that they bring every day, making them the driving force behind our innovation. Our overall engagement score at 80% is very strong and represents a continuing improvement on the previous year. Now having experienced exceptionally high retention rates during the COVID pandemic, our retention rate dropped to 84% in 2022. This largely mirrors the general attrition rates observed across our industry post pandemic in what has been described as the great reshuffle and no doubt reflects the increased competition for talent in our sector.

14:37 It will therefore come as no surprise that investing in the development and progression of our employees is of great importance to us. In addition to technical skills development, over 30 senior leaders, a 100 leaders, and 80 future potential leaders have participated in the bespoke management and leadership

14:54 development training offered through our CERES Academy. As a result of this, we have seen more internal promotions than ever before. We've also invested heavily in building our future talent pipeline by sponsoring and supporting a number of science, technology, engineering, and math, otherwise, you know, the STEM activities, including our reimagined school competition, which has really gained great traction from schools across the country and that we're very proud of. Our early careers offering has expanded significantly, incorporating paid internships as well as our apprenticeship and graduate schemes, which have proven to be very successful. Right. From a diversity perspective, at CERES, we celebrate diversity in all its forms.

15:44 We believe that talent and ingenuity come from a variety of perspectives. Our people bring these every day to work, and they challenge conventional thinking and the status quo. We have successfully continued to increase and improve our efforts around gender diversity and create supportive and inclusive environment.

16:08 Our employee forum, the connect group, provides a huge role in this. They nurture a strong and inclusive environment, and their mission is to embody, amplify, and act on the voice of the employee. They collaborate creatively on events and pioneer initiatives that promote our values. The chair of the connect group sits on our ESG committee. Building on the importance of the voice of the employee, last year, Trinique Lauren Pearson was nominated by the board as our employee engagement director. She had participated in a number of initiatives and events to hear directly from our people, to learn their perspectives and their thoughts, and to share that and transfer that to the board.

17:01 And finally, we take great pride in being a good corporate citizen. Health and safety is of paramount importance to us. This is evidenced through our exempt exempted standards and records. Now we recognize that health and safety is the responsibility of everyone, and, we encourage a culture that is both transparent and, focuses on improvement, continuous improvement. Sustainable procurement matters too. And in 2022, we introduced sustainable procurement and supply chain assurance policies all aligned to ISO 2,400. Our environmental management system achieved ISO 40,001 accreditation and certification last year. We continually strive to improve our sustainability initiatives, not just within our supply chain, but across all our practices and processes.

18:01 Partnering with and supporting our local community is something we value highly as well. And through our connect forum and our STEM ambassadors, we have been able to provide opportunities for our people to volunteer and have a very direct impact on our community. And finally, we maintain strong links with universities and other academic institutions. We are particularly proud of the recognition we have received recently from the Royal Academy of Engineering, having been announced as winners of the McRobert Award as well as having our own Rob Lear, recognized as the winner of the Armourers and Brassiers, company prize for his excellence in materials engineering.

18:51 I'll hand over to Daphne. Thank you, Michelle. And good afternoon, everyone. I'm the general counsel and company secretary. I'm responsible for governance in the ESG context and across the company. So CERES is focused on and and committed to upholding sound corporate governance practices in everything we do, providing stakeholders with accurate disclosures and appropriate levels of transparency across all aspects of our business. We also recognize that strong governance is essential to support the long term sustainable growth of the business.

19:39 Governance at CERES is overseen by the PLC board of directors, and the board is accountable to the company's shareholders. As such, governance forms a critical part of our business integrity and of maintaining our stakeholder trust. The board seek to ensure that we have the appropriate skills and resources as a business to deliver our ESG objectives, and the business develops sustainability targets and key performance indicators. And the board receives and reviews reports on progress towards the achievements of those targets and indicators. During 2022, the ESG committee was established and is a committee of the PLC board now.

20:32 It met for the first time in 2023 and is chaired by our nonexecutive director, Julia King. Julia King was also appointed as senior independent director of the company this year and brings significant ESG credentials and experience, to the board and to CERES and the company as a whole. Moving on to the, ESG integration within the company at CERES. We are committed at CERES to acting professionally, fairly, and with integrity in all our business dealings with consideration for the needs of all our stakeholders.

21:20 CERES also endeavors to adopt values and standards designed to help guide employees in their conduct and their business relationships. The committee the excuse me. The company is committed to complying with all relevant legislation, regulation, and codes of practice, including those requirements related to environmental and social impacts. The operational ESG committee chaired by our CEO, Phil Caldwell, undertakes the day to day ESG related operational tasks and reports directly into the ESG committee of the board, which provides it with oversight, guidance, and advice.

22:11 The operational functions of the business are deeply involved in evaluating, monitoring, and improving our ESG behaviors and actions. So governed by the ESG operational committee, we deliver through the implementation and enforcement of effective policies and processes and procedures to reflect a sailor a zero tolerance approach to bribery and corruption. We deliver management of our operations and supply chain, which focuses on embedding sustainability considerations into every aspect of the development and transfer of technology to our partners.

22:57 And assisting in this area, CERES has recently become a signatory of the UN Global Compact, taking advantage of the access to The UK chapter and its academy platform for resources and skills development. Internal audit, which is positioned to support the ESG operational committee and management with objective assurance, insights, and advice on ESG matters. And we measure performance and promote continual improvement through setting annual objectives and targets. Specific ESG related KPIs have been introduced from the executive team, proposed by the ESG committee, and agreed by the remuneration and nomination committee and the board.

23:56 And last but not least, we delivered through our engagement employee group Connect, which helps keep sustainability at the heart of our purpose and technology by embedding it in our people's works, projects, and decision making. So turning to TCFD, the task force for climate related financial disclosures. As some of you will be aware, CERES graduated to the main market in June this year, which mandates reporting against the task force for climate related disclosures, TCFD. CERES has preemptively reported against the TCFD framework in its sustainability report.

24:47 And whilst we acknowledge that this is the first attempt of doing this in terms of our disclosures, we understand and acknowledge that there is still room for improvement. And we are in the process of building climate related targets against which to measure our performance. Global frameworks, as we all know, are quickly evolving in this area and other areas around ESG. So we recognize that as a small team here at CERES, we commit a proportional response that reflects the current size of CERES. The responsibility of every business to ensure proper oversight of climate related risks and opportunities has never been higher, and CERES is working towards transparency, communicating these risks and opportunities to our stakeholders.

25:45 So with that, I will hand back over to Phil. Thank you, Deborah. I think one thing we can say about the TCFD agenda is it's it's been a very valuable exercise for CERES in understanding our our climate climate related risks. But as a business, the the heart of what we do is all around hitting net zero and and decarbonization. It also represents a huge opportunity for the business. And part TCFD of is recognizing the risks, but also the opportunity. And I think in Sarah's case, we're we're in a somewhat privileged position that we're not just looking at this as a challenge, but we see it as as the huge huge future for the business that lies ahead.

26:37 Corporations like ourselves need to transition away from existing fossil based energy from combustion engines, and many of our partners are are facing these fundamental transition risks. We're seeing more and more government policy now towards a low carbon future. We've seen the IRA bill in in The US. We've seen repower in EU. We see India with very proactive policies. We've seen Japan recently come into the party with big incentives for for development of these kind of technologies and and decarbonization. And with that follows capital investments as well from the institutional and and and private sectors. So we continue to see, despite a challenging macroeconomic environment, the need for these kind of technologies because many companies like ourselves, when they look at the TCFD and the and the risks towards, you know, the climate related risks in the future, they need to actually adopt some of these technologies.

27:37 And what I'd like to do is bring you back to the beginning of the presentation. I think when we started out on this journey, you know, we we've been reporting formally on on ESG for the past few years, and we're very proud of this, our our second sustainability report. But at first, you know, this was always fundamental to something that we did every every day at CERES in terms of our purpose and our values. And now it's becoming more and more more crucial why we need this. If you think about CERES as having this unique bridge between green electrons as we electrify more and more of society to green green molecules as we replace some of the materials that we have with low carbon or zero carbon materials in the future. The CERES technology is is really at the heart heart of that. And when you think about decarbonization of those sectors I mentioned earlier, like steel, like fertilizers, like fuels, like power generation, there's not many aspects of our daily lives that we at CERES don't touch with this technology.

28:39 We are addressing some of the the climate risks that we talked about, but we also represent this this this huge opportunity for the future. And, really, I don't expect you to read this, but it's it's in our our report. But what that really translates to is is our ultimate goal. And we at CERES want to embed our technology into global multi gigawatts of of manufacturing capacity at the scale and pace that we need to achieve a net zero future. And that's fundamental to everything we do at CERES. That's fundamental to all all our people, and it's it's fundamental to the way we operate the business. So I'm very proud of the work that we've achieved in the past year or so on on the ESG agenda and fundamentally what we're doing to make a positive impact for the future.

29:30 So I think we've we've guided you through today with the help of the executive team, the the work we've done in in the ESG environment. And I think with that, we can hand over to to questions, really, to bring this to life. Thank you. It's great. Thank you very much indeed. Elizabeth Merrill, I was going to say just while investors have a few moments just to submit to any further questions they may have. I'd just like to remind you that recording this presentation along with a copy of the slides and the transcript Q and A can be accessed via the Investor Meet company platform. Merrill and Elizabeth, if I may just hand back to you, if I could ask you to read out any of the questions where it's appropriate to do so, and then I'll pick up from you at the end. Thank you.

30:19 Thanks, Mark. Marilyn, are you jumping in? I think there's been some questions. Yeah. So there is one question that was provided before the presentation, which I think maybe we should we could start with. And just to the group in general, someone asked, what is the commitment to the PR agenda, and what themes will you position the work of CERES around in respect to the commercial benefits of sustainability? I'm not sure who who would like to jump in on this. Could could you just repeat the question? Sorry. Yep. What is the commitment to the public relations agenda, and what themes will you position the work of CERES around in respect to the commercial benefits of sustainability?

31:15 Yeah. I mean, I'm happy to jump on that in in on that. I mean, I think if we as we've spoken to, clearly, sustainability is at the very core of what CERES does, and I don't think it sets us, you know, I don't think it sets apart from the agenda we have with all our stakeholders, and that very much includes our commercial stakeholders. They're as interested as our investors and our employees. As Michelle has touched on, you many of the people that come to work for us are really driven by that agenda. And I think our our partners are equally interested in how we intend to ensure that the technology is sustainable and scalable, and we'll move them away from existing incumbent sort of combustion technologies.

32:02 So I think it's it's absolutely key. I I think I I I would answer that. The the most urgent things that need to be decarbonized are often, for us, the biggest business opportunities. So where there is an alternative easy win, if you can electrify something directly, then you you should do so. But where you need to actually use a fuel cell or use a a green electrolyzer to convert elect electron into a molecule where there is no other alternative, that represents the biggest business opportunity for us. And we're a very commercially driven organization. So I don't I don't see this really as being around the PR side of it. I think this this comes down to the fundamentals of of the business strategy. And this this is so inherent to what we do.

32:50 I think when we we talk about the business progress, we will be talking about how that impacts sustainability because that that just goes hand in hand. Absolutely. You know, as you've both just said eloquently, it's it's very much part and partial to our purpose. So I will have we've got another question that's come through the chat. And so one of the inquiries is with the huge potential for hydrogen, why do you think it is that the share price is suffering so much? I I money I I have a very bad connection. Was the question with this huge potential, why do we feel that the share price is suffering so much at the moment?

33:39 Is that the question? Yes. Okay. Yes. Look. I think there's there's things that we can control and there's things that are outside our our control. I think we we decided to pivot from not just the the low carbon power that fuel cells offers into the hydrogen side of the business just over two years ago. And we've been making very significant progress on the electrolyzer side of the business. And what we're seeing is is a huge potential potential in. And I'm very optimistic that we'll we'll start to convert that opportunity into real commercial traction with with announcements in the not too distant future. There is a backdrop, however, of, you know, inflation, rising energy prices, etcetera, which has created a bit of a risk off environment for technology businesses like ourselves, not just CERES, but across the whole hydrogen sector as a whole. So I think the the thing for us as a business that we're focused on is the technology development and the commercial the commercial traction. And I think that's where we expect to see near term progress. And then in the longer term, I think it's it's around the macro environment, the economic environment that we're all operating in today.

34:56 So I think there's there's two factors that are impacting share price. Great. Yes. I think, lots of things contribute to share price. So I just to pull another question forward, questions around our net zero strategy and when it may be, presented and then the the steps that we're hoping to come from the exercise, as we develop, as Mark touched upon, moving towards a carbon neutral operations. Yeah. I think I'll I'll answer that, Merrill. So we want to use the latest set of information from this 2022 report to frame the baseline.

35:43 If we're looking for reduction strategies, we need to know the starting point. And we will use that to clearly articulate a science based target reduction line, which will allow us to achieve a net zero position commensurate with one and a half degrees global warming by 2050. The steps that we're taking at the moment in collaboration with Ricardo is to look at amongst those categories that I showed you in the presentation, which is primarily around our purchased goods and services and capital equipment, What are the key steps that we can take which will make a material impact in reducing those things, in line with a great company mindset? So a typical example might be we spent a lot of money on steel.

36:28 As you will have seen, it's a large part of our of our technology makeup. What is the pathway to lower carbon footprint steels, which will make an impact on those things? So we will hopefully conclude those workshops by the end of the year. That will be able to lay out then the benefits of each of those step actions to reduce our carbon footprint, the costs of achieving those, and the timescale that we can do those by so that we can verify that green line, I think it was, which takes us from an unmitigated line down to a fund net zero position by 2050. We should have a an agreed strategic position early part of next year, and we should be able to share the key elements of that, not all the complete detail, but the key elements by the time we submit our report and accounts early part of next year.

37:25 And and, look, as you might expect, we we're taking quite a scientific approach to this because we didn't wanna be, you know, another company that just sets a a random target in the future and then aspires and hopes to get there. I think being, you know, very rigorous scientists and engineers, he wants to be able to take our time and then actually set a target and and know how we were gonna deliver that. So I think that's that's the work that we're gonna conclude very shortly. Brilliant. Thanks, Phil. And there's a couple of questions that have come through on the q and a function here, which I might just jump in with. Just firstly, someone identifies that we have a a significant partnership with Weichai. Do do we we view that this sort of causes any particular political or social risks having a having a tie up with with China?

38:22 I think the the geopolitical situation is changing globally. Let's face it. We're in a very different situation now in in regions like The Middle East, our relations with Russia, potentially with China than we were several years ago. However, if you actually look at carbon emissions and the industries that are need to decarbonize in in some of these economies globally, is is something like, I think, 30 of all all carbon emissions. And and therefore, this technology is very relevant if we are hit to hit net zero, you know, globally, not just in Europe or in The UK or in The US, but but across the board.

39:07 I think one of the things about the CERES business model is we it it goes across borders. So we're not limited by you know, you could argue that that that might end up being a bit more of a protectionist policy around climate technologies that wouldn't be helpful in in actually achieving global decarbonization. So we have a strong relationship with with Weichai. That doesn't prevent us from forming strong strong partnerships globally in general. And and the way that we work is we develop the technology. We enable localization of of production at at scale and pace to to achieve decarbonization of those sectors that that we need to need to address quite urgently. So we we don't see any issues today with with our business model, and we will continue to do so.

39:58 Yeah. Brilliant. Thanks. And there's a couple here that sort of on along the same theme. Just can you remind us of the sort of logic behind moving to the main market that obviously, as Deborah outlined, comes with additional reporting requirements, not least TCFD? And just also another question not along dissimilar lines, which is, you know, about the understanding of The UK capital markets and building these kind of high growth tech companies versus, say, investors in The US. Any views on why we're listed here, why we took that move to the main market, Phil? Look. I think we took the move to the main market because we'd we'd already been on the public markets in London for the best part of twenty year. Company has has matured both in terms of our our customer base.

40:48 We're we deal with Fortune 500 companies across the board, our shareholder base, and also the level of governance that we we operate to. So it it was a very very natural transition to graduate from the AIM market to the main market in The UK. Now you could say and and, you know, we are living this at the moment. The UK can be quite a conservative place to grow technology businesses. Obviously, we continue to look at that. But I think for the for the company's point of view, can providing we continue to do what we said we're gonna do and grow these offerings and grow the commercial side of the business, then The UK is our home, and that's where the majority of our our employees are, our investors are, and we grow from that platform.

41:34 If we were to, let's say, jump off to The US, etcetera, I think we we there is a risk that we'll be one of one of many, and we could potentially get lost in that market. However, as we continue to grow, there's no reason why we couldn't look at other markets, dualist things, etcetera, in the future. But but this was a very natural step for us at this point. I think, you you know, know, the the the macro the macroeconomic environment right now for technology businesses is isn't isn't very healthy, but I think that that can come back with with with some of the, you know, some of the reversals around the inflationary pressures. And and and there is a lot of lot of tailwinds there in terms of the the the government policy decisions that are in place and the need for these technologies. So I think, hopefully, we can see a reversal of fortunes in the London markets as well.

42:23 Brilliant. Thank you. I think with that, we'll we'll wrap up. We've taken some time up already, and thanks thanks to everyone for joining. We will respond to all the questions online. And if you have any specific questions questions for the investor relations team, you can get in touch directly with us at [email protected]. Thank you. That's great to present it to you from CERES. Thank you very much indeed for updating investors this afternoon. Could I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order that the company can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. Behalf of the team from CERES POWER HOLDINGS PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.