Contents Welcome to FCC Environment – from to resource

Introduction Environmental commitment 04 Foreword 33 Regulatory compliance 06 Who we are 34 Carbon footprint 08 What we do 36 Driving fuel efficiencies 10 FCC in numbers 38 Investing in solar power 40 Land restoration Highlights and challenges 13 Contract wins Doing the right thing and renewals 43 Integrated 15 The grand opening Management System 16 Millerhill and 46 Contributing energy recovery facility to communities 18 Awards Forward thinking People focus 53 FCC Group Innovation 21 Health and Safety 55 Waste policy and Brexit 23 Equality and diversity 57 FCC, innovating for the 24 Gender pay gap next generation 26 Attracting talent 28 Training and development Appendix 30 ABCD Awards 58 methods 2017 59 Environmental commitment

2 — 3 FCC Corporate Social Responsibility Report Introduction

Our able workforce is equipped with the knowledge, experience and passion for FCC Environment to be an exemplar of safe and Foreword sustainable resource management. We manage waste for 60 local authority areas and 4000 business waste customers, and recycle 1.6 million tonnes of material each year. How we operate has an Corporate social responsibility impact on environmental and social wellbeing and it is important is fundamental to FCC that we celebrate our successes while always aiming higher. Corporate social responsibility isn’t simply a box to tick. It’s a way Environment’s role as a of running a successful business to everybody’s benefit. We help our clients meet their legal, social and corporate commitments, leading waste and recycling and this is our opportunity to assess and report on our own development. company. We have a duty Our business grows best on shared values – within the company, and with our neighbours, regulators and customers. This too, is to invest, innovate, and drive our corporate social responsibility. good practice and this report highlights many of the ways we deliver on these commitments.

Paul Taylor Chief Executive Officer FCC Environment UK

4 — 5 FCC Corporate Social Responsibility Report Introduction

Who we are People focus We value our people and FCC Environment is one of the UK’s leading genuinely enjoy what we do – which is why our people enjoy recycling and waste management working with us too companies, helping thousands of businesses and communities waste less and recycle more. We benefit from being part of the FCC Group, one of the world’s largest Environmental environmental services companies. commitment

We care about what we do Every is an opportunity and how we do it; running to reclaim valuable resources and our operations in an environmentally and socially improve the environment we all share. responsible way We use the latest recycling and green energy technology to recover as much value as possible and minimise the use of . Doing the right thing

Our values To ensure the ongoing success of our business, we focus on — our customers to ensure our Delivering services meet their needs clarity and Safety, Health, Environmental direction and Quality Policy Statement 2017 Our corporate social responsibility Forward thinking activities are underpinned by our company policies. By embracing change, we can See www.fccenvironment.co.uk be better prepared for the future, whatever it may bring

6 — 7 FCC Corporate Social Responsibility Report Introduction

What we do Every day we minimise the amount of waste that ends up in landfill by transforming it into something valuable. We collect recyclables and waste – from businesses, local authorities and households – and process it to ensure we Business & Recycling Green energy Waste processing Municipal Services We are the UK’s leading Our home-grown energy FCC Environment prides fully realise its potential FCC Environment provides operator of household waste from waste (EfW) network itself on providing 360˚ as a resource. excellent service levels recycling centres, capturing provides our customers with solutions for all our and flexibility for business significant quantities of a safe and sustainable customers’ waste, including customers, strengthening source separated materials solution for non-recyclable those items that cannot be our reputation as a trusted from the domestic waste waste. recycled, composted or stream. Along with our used as a fuel to generate business waste solutions FCC’s EfW facilities at collections, this enables FCC electricity. provider. In addition, our Eastcroft, Allington, to supply clean materials long-term contracts with Lincolnshire, Mercia and Our specialist workforce for the manufacture of local authorities enable us to Buckinghamshire are handles complex and quality recycled products. offer a high quality service contributing to the UK’s streams, for local residents and a FCC is contributing towards green energy supply, and and advises our diverse secure supply of waste into a healthier, more resilient will soon be joined by our customer base on our facilities. and prosperous Britain. new facility in Edinburgh compliance, waste reduction We balance municipal and Midlothian. Generating and secondary market waste inputs with feedstock energy from waste within the opportunities, providing collected from our UK helps avoid costly waste an end-to-end solution that commercial and industrial exports and increasingly is both sustainable and customers and third party expensive fuel imports. In cost-effective. consignments, reducing risk essence, it keeps the value and providing confidence to of British resources in Britain. our investors.

8 — 9 FCC Corporate Social Responsibility Report Introduction

FCC Environment The world we live in in numbers Paul Taylor Chief Executive Officer 4,000 FCC Environment UK

Business waste Being forward thinking means being prepared for change within the customers waste and recycling industry, and in the world around us. The waste business is affected by global shifts and political accords, and we are confident that our talented workforce and robust business model 100 can rise to today’s challenges. 1 .6 million The ban on the export of plastic waste to China has shaken the Recycle 1.6 million tonnes Contracts across some industry and continues to pose some valuable questions regarding the economics of recycling. At FCC Environment, we recognise this of waste per annum 60 local authority areas moment as an opportunity to strengthen indigenous recycling capacity and develop home-grown markets for recycled materials. Meanwhile, the BBC’s documentary Blue Planet II left nobody in doubt about the global scale of plastic pollution, prompting responses from UK Government and major retailers that aim to reduce our dependence Our EfW facility at upon single-use disposable items; to recycle more and waste less. 7 Our goals are well-aligned with those advocating for progress, and we are pleased to be expanding our reach and creating a more PFI and PPP contracts – sustainable waste and recycling sector. The waste sector is among Wrexham, RE3, Lincs, Mercia, Edinburgh and the top five sectors in the UK with the smallest gender pay gap, and Bucks, Allington, Edinburgh at FCC Environment women are on average paid slightly higher than men. We continue to attract talent to the business, and by involving our workforce in a strong culture of safety, innovation and recognition, Midlothian will export FCC Environment is cementing its reputation as a great place to work. We are driving consistent improvements in environmental protection MW MW alongside strategic investments in renewable energy and electric 102 12.04 to the vehicles. Many of our sites are becoming wildlife havens through our habitat restoration, tree and hedgerow planting and networks Generate 102 MW of lakes and waterways, helping enhance Britain’s biodiversity and of green energy National Grid create beneficial spaces for people to enjoy the natural world. FCC Environment continues to achieve higher quality, health and safety, environmental and energy standard requirements, while Equivalent to the energy needs of 27,000 our support for community-based initiatives is a source of pride households with the potential to supply up to for everyone involved. 20MW of heat to local district heating networks In the meantime, we look forward to helping deliver the Government’s to meet the needs of 10,000 homes national infrastructure ambitions, Clean Growth Strategy and 25 Year Environment Plan, and to creating a more resourceful future by maximising the recovery of value from waste.

10 — 11 FCC Corporate Social Responsibility Report Contract Wins and Renewals Our municipal services remain popular with local m Highlights and investments authorities. Over the last year we have been awarded a number of important contracts to manage refuse, £110 recycling, street cleansing and related services for Value of new Our business is growing Barrow-in-Furness Borough Council, Kent County Council, contracts in 2017 and we are recovering East Northamptonshire Council, North Yorkshire County more valuable materials Council and Essex County Council. We have been appointed to design, Looking at our broader facilities and clean energy from build, manage and operate a household management services, we are building waste recycling centre (HWRC) for on our successes. In 2017 FCC signed Peterborough City Council, and started a three year contract with District waste than ever before an 8 year contract to manage household of Harborough Council to maintain waste recycling centres on behalf of the prestigious local landmark, the Wiltshire Council. Symington Building, in addition to our existing contract cleaning the nearby Our specialist waste service remains Market Hall. The Symington Building of value: FCC entered into a 5 year houses the local museum, library, council agreement with Yorwaste to safely offices and registry office. dispose of asbestos; an annual agreement to manage from Sellafield; and a 3 year contract to treat and dispose of hardcore and soil waste for Buckinghamshire County Our broad range of contract renewals Council. reflects the value for money of our services and the positive feedback from our customers. Recent renewals include an integrated waste management contract m with Luton Borough Council, municipal £93 collections for West Devon, Wychavon Value of contract and Herefordshire Councils, and waste renewals in 2017 treatment and disposal for Central Bedfordshire Council.

12 — 13 FCC Corporate Social Responsibility Report Highlights and investments

Revamping Wiltshire’s The Grand Opening Household Waste New facility officially opened Recycling Centres by HRH The Duke of Gloucester

On being awarded control of Wiltshire’s nine household waste recycling centres The Duke of Gloucester officially “Its construction marks an important EnviRecover (HWRCs), FCC Environment set about improvement works to improve their efficiency opened FCC Environment’s flagship step forward for our Mercia Waste and user experience, and to introduce a reuse scheme to benefit local charities. facility – EnviRecover Management partnership, and for The facility in – on 15 June. The facility, which is our business. As we continue to numbers The refurbishment programme was meticulously planned and resulted in every near Kidderminster, is operated develop, we’re focusing on our HWRC reopening on the planned and publicised date. by FCC through Severn Waste customers’ requirements for A lot of hard work went into ensuring that the service delivery was as per the client’s Services as part of its contract with extracting value – in the form of expectations. FCC’s role included taking over the delivery of services on sites, as Worcestershire County Council and energy – from the waste left over well as behind the scenes work with the electronic data system, reporting and Herefordshire Council. after recycling has taken place.” 200,000 handling of the clients queries and questions. The site will treat up to 200,000 Paul Taylor Tonnes of waste This was a major project for the FCC team and its success was due to the tonnes of waste, and produce 18MW Chief Executive Officer treated per year outstanding levels of communication between departments and operations. of electricity – enough to power all FCC Environment UK the homes in Kidderminster. It is With an onsite visitor and education the largest single piece of capital centre, EnviRecover is now an integral MW infrastructure in Worcestershire and part of engagement within the area 18 Herefordshire, and its opening means Far left: Before and complements the education Of electricity Left: After the virtual elimination of landfill in the programme at EnviroSort, Norton. two counties. produced 32,000 Homes powered “Its construction marks an important step forward for our Mercia The Duke of Gloucester officially opening FCC Waste Management Environment’s flagship waste treatment facility – partnership” EnviRecover

Paul Taylor Chief Executive Officer FCC Environment UK

14 — 15 FCC Corporate Social Responsibility Report Highlights and investments

Halfway point reached in 2019 Barnsley Council construction of new Millerhill and Cycle Penistone Can we The plant will enter recycling and energy full operation in 2019 sort it? Cycling is becoming increasingly popular in Yorkshire, particularly since the recovery facility Tour de France inspired a “Tour de Yorkshire”. Barnsley Council was already A new reuse shop was encouraging staff to cycle to work, and wanted to share the benefits of cycling opened at Kirkless, with more local residents. The construction of the new state-of-the- “We’re absolutely delighted to see the 32,000 bringing a lifeline to art energy-from-waste plant, which will progress so far on this major facility. It will generate enough Working with FCC Environment, they identified a potential source of free Wigan’s homeless. All items serve the City of Edinburgh and Midlothian, The plant is certainly becoming a new bicycles at the borough’s HWRCs. FCC trained operatives to separate bikes fit has reached an advanced stage. Millerhill local landmark. The project is a fantastic power to meet the needs for repair, and partnered up with local Community Interest Company (CIC) salvaged from FCC’s Wigan Recycling and Energy Recovery Centre example of partnership working that will of up to 32,000 homes Cycle Penistone to repair, rent and sell the bicycles at affordable prices. household waste recycling (RERC) is being developed by FCC not only help both councils meet Zero centres are ‘upcycled’ by Within a few months the scheme was a success, with recycled bikes available Environment, which signed a 25-year Waste targets but also produce energy volunteers from charity contract to deliver and operate the for the National Grid.” from as little as £25 and all with a full refurbishment, 9 point safety check and £142m plant in October 2016. 135,000 3 month warranty. The Brick, then sold to Councillor Russell Imrie help ease poverty for The build, which is scheduled to take 30 Midlothian Council’s Cabinet Member Tonnes of household As a result of the additional bikes available for refurbishment and increased months, is on a brownfield site which is for waste treated per year publicity through the scheme, Cycle Penistone soon hired an apprentice townspeople. A new, two- now barely recognisable as the former A separate facility, which takes all of and employed 5 part time staff to assist with the website, sales and back office, storey building is being Millerhill Marshalling Yard. The main the food waste collected by the partner and the bike hire and servicing. In June 2017 Cycle Penistone sold their 300th constructed to house the building has now reached its full height councils, is already in operation on the bike “rescued” under the scheme and identified a need for more sales outlets with the first part of the roof structure shop and FCC offices. neighbouring site to the RERC. It is hoped for the bikes throughout the borough. installed at the end of December 2017. these new facilities treating both food and A vast amount of specialist equipment non-recyclable waste, creating renewable has also been delivered and installed energy in the process, will help both in the facility. authorities contribute to the national The plant is set to enter full operation in recycling target of 70% by 2025 and the 2019 and will treat around 135,000 tonnes national landfill diversion target of 95% of household residual waste and a further by 2025. “The launch of the recycling scheme through 20,000 tonnes of commercial waste every partnership with the household waste year. It will generate enough power to meet the needs of up to 32,000 homes. recycling centres has been one of the best Construction will continue through the rest things to happen for Cycle Penistone CIC of 2018 and the two Councils are expected to start delivering waste to the facility at and I’m sure most of the customers who buy the end of the year to allow the important the bikes would say the same.” commissioning and testing phase to get Jill Bramall underway. Director, Cycle Penistone

The partnership now also includes Elsecar Park Cafe which rents bikes and helmets to children in the park. They are now hoping to build a children’s cycle track with road markings and stop and go signs to help promote road safety awareness.

16 — 17 FCC Corporate Social Responsibility Report Highlights and investments

Awards

East Riding of Awards for excellence Yorkshire Council Recycle Devon Thank You Awards 2017 successes: Huge congratulations to Suffolk County After coming second in the Council’s Foxhall Household Waste Recycling Centre, provided whole of England for recycling by FCC, for taking home the title of Civic Amenity Site of the performance, East Riding of FCC Environment’s recycling crew in the north of West Devon Year. Also to Greatmoor EfW facility, a partnership between Yorkshire Council (ERYC) has were nominated by a local resident to the Thank You Awards, Buckinghamshire County Council and FCC Environment, for thanked FCC Environment organised by Recycle Devon. The team was praised for their award in Innovation in Design of a Waste Management colleagues for their hard work improving the service and their friendly manner. Facility at the Excellence for Recycling and Waste and support. Management Awards 2017. The ERYC hopes that they – The Thank You Awards are organised by the Recycle Devon alongside FCC colleagues – team, and were first launched to recognise those people who can continue to improve and do that bit extra to help ensure Devon remains clean and green. “The Awards for Excellence 2017 have been become the top-performing authority this year. The West Devon crew received a Runner Up Award in their a real success story for FCC Environment, category of ‘Collection Crew/Operative (Recycling, Garden, working in partnership with key customers. Food or Refuse Collector(s))’ but also won the overall Award I would like to thank all the hard-working of the ‘People’s Choice Hero’ Award, with approximately 25% people on the ground who deliver these of the total 1,200 votes! award-winning facilities day in and day out.” “It is recognised that Following this achievement, FCC Environment also entered the team to the Awards for Excellence in Recycling and Waste Paul Taylor a large contributing Chief Executive Officer factor for the result Management, and they are now looking forward to the FCC Environment UK has been due to a national finals. committed full team effort, working together to divert more residual waste and send it for reuse and recycling.” Debbie Mansell Waste Contract and Recycling “I wanted to thank the Recycle Team that Manager, ERYC serve Hatherleigh. They work incredibly hard doing such a physical job collecting our waste down narrow congested roads. They are helpful, polite and always go above and beyond.”

Resident Hatherleigh

18 — 19 FCC Corporate Social Responsibility Report Health and Safety Over the past 12 months FCC Environment has received some People focus of the highest awards for health and safety in the country. While we are proud of these achievements, we know there is always The health, safety work to be done when it comes to keeping our workforce safe. and wellbeing Sword of Honour Award: responsibility for the health and safety of FCC Environment was one of 57 themselves, their colleagues, customers of our colleagues is organisations worldwide to achieve a and suppliers. Sword of Honour, which is awarded to Workplace Wellbeing Charter: companies that have demonstrated FCC Environment’s commitment to excellence in managing health and safety absolutely paramount the health, wellbeing and safety of our risks at work. The Sword of Honour Award colleagues has been recognised by the followed FCC Environment achieving the Workplace Wellbeing Charter. As part and always will be top accolade in the British Safety Council Paul Stokes representing of our Employee Wellbeing Charter, we Five Star Audit Process in 2016. FCC Environment with continue to organise initiatives such as the Sword of Honour “Achieving the Sword of Honour is great dementia awareness, aural health, hayfever Award winners. news, although it doesn’t come easy. and men’s health, women’s health and A lot of time and effort from everyone monthly health bulletins on a variety of in the organisation has been put in over conditions. a number of years.” “We’ve made some great progress in terms Paul Stokes of health and safety since 2010, but there’s Head of Safety, Health and Environment absolutely still work to be done, and that’s and Quality, FCC Environment the responsibility of each and every one Safety Climate Survey: of us.” Developed by the Health and Safety Paul Stokes Laboratory, the Safety Climate Survey is Head of Safety, Health and Environment used by proactive companies to measure and Quality, FCC Environment safety culture. The FCC 2017 survey showed that, across every factor, our safety culture remains higher than the all industry average. Behavioural Safety Programmes: We have continued to roll out our “Because” campaign across the company. “Because” encourages managers and employees to improve their safety performance by identifying poor behaviour. In addition, we are building on our “iWill” campaign, which empowers people to take

20 — 21 FCC Corporate Social Responsibility Report People focus

Health and Safety Equality and diversity Continued » 2017 workforce demographics

Lost Time Accidents The Six Pillars Our record of Lost Time Accidents is an account of working days lost due to work-related illness and workplace % We’re maintaining a high injury. This provides a more accurate 1.55 performance Health and Safety picture of our safety achievements Our proactive absence than RIDDOR, which only reflects management programme has culture through our Six Pillars significant absences or injuries. continued to reduce our employee sickness and absence rate to well below the national average 1 Lost Time Accidents (LTA) 2010–2017 Top management commitment

6 2 105 62 57 56 53 53 Middle Constant 51 46 1,267 management review of working involvement practices We continue to invest in 2,396 developing our workforce, and 2010 2011 2012 2013 2014 2015 2016 2017 in 2017 delivered 1,267 courses FCC Environment employs 2,396 to aid professional development people in England, Scotland and Wales across the business LTA Frequency Rate 5 3 2010–2017 across 166 operational sites Health Positive and Safety perception performance of Health and focused Safety by the supervisors 4 workforce 23.22

Active 13.73 11.92 11.41 11.53 10.99

participation of 8.45 8.29 the workforce 2010 2011 2012 2013 2014 2015 2016 2017 Gender Disability Ethnicity Staff Turnover ■ 86% male ■ 0.91% registered ■ 87.11% White European ■ 21.61% leavers ■ 14% female disabled ■ 10.52% Not specified (includes Tupe ■ 0.77% Asian transfers) ■ 0.28% Black ■ 1.26% Other

22 — 23 FCC Corporate Social Responsibility Report People focus

Gender pay gap Women in Waste In April 2017 the Government introduced Shannon Moreby gender pay gap reporting for all companies with more than 250 employees.

The gender pay gap shows the pay ranges that avoids any gender bias. transfer of employees into the business removes any influence of very high and Traditionally, the waste and resources sector has had a difference between the average hourly Manual roles are determined by local we recognise this will take time to very low pay. reputation for being “a man’s world”... but not any longer. pay for men and women across all market job rates and TUPE transfers. change. The national median is 18.4% in favour ages, roles and levels. It differs from However, all manual roles are paid a The gender pay gap is the difference of men. This rises to 19.6% within the “Ever since being accepted onto the graduate equal pay which is the right for men rate for the job regardless of gender. between the average hourly pay utilities sector of which we form part. programme I have had, and continue to and women to be paid at the same rate Our overall workforce is predominantly received by men and women within have, training opportunities to accelerate my of pay for work of equivalent value. Our figures show that both our median male, which is typical within the waste, FCC Environment Services (UK) Ltd and mean hourly rates favour women development. Even after finishing the graduate FCC Environment companies in the UK energy and water industry that consists as at 5 April 2017. We’re reporting two in our workforce. The figures are programme and moving into a permanent have a robust job evaluation process of 78% men. We remain committed to measures of our gender pay gap, the influenced by the significant numbers management position the momentum hasn’t for all non-manual roles. This has improving gender balance, however median and mean (average) gender of male staff in frontline roles, and the enabled us to create a framework of with a long service workforce and pay gap. The median gender pay gap slowed down. There is a huge amount of higher proportion of women in typically support from the company who really invest higher-paid support and technical roles in the business. in their people and want you to reach your full potential. The gender bonus gap is the difference Figure 2: FCC reports as FCCE and FCCES. Both reports bear out the trend of the between the average bonus received “There are more women than I expected there pay gap being in favour of women. If a company has a +1% figure this means that by men and women across FCC to be in the operations side of the business, but the average man would earn 1% more than average woman. A -1% figure would Environment at the snapshot date of 5 mean that the average woman would earn 1% more than the average man. there’s no escaping the fact that our industry is April 2017. still male-dominated. There are more women FCCE FCCES We operate two types of schemes moving into the industry at all sorts of levels and Male Female Male Female – a group bonus scheme, which is in all sorts of roles but we could be doing much primarily for non-manual staff and more to attract female talent. In my view, this Total % employed 81.0% 19.0% 94.5% 5.5% KPI schemes for site based staff. KPI needs to start by showcasing how interesting schemes vary for each sector of the Median gender pay gap -8.2% In favour -1.0% In favour business. and challenging the sector can be (and how Mean gender pay gap -4.6% In favour -5.0% In favour it’s not all about dealing with stinking waste Both types of schemes have various and getting filthy!). Our industry will only thrive Lower quartile 92% 7.2% 96.9% 3.1% payment dates throughout the year. The snapshot date of 5 April 2017 only if it attracts a diverse range of people and Lower middle quartile 77.4% 22.6% 92.9% 7.1% reflects those who received bonus skills, from environmental advisors to business Upper middle quartile 80.9% 19.1% 92.1% 7.9% during that period so does not capture development professional, to engineers and all employees who were actually paid a operations managers like me. Upper quartile 81.6% 18.4% 96.1% 3.9% bonus outside of the snapshot date. “If I could give one piece of advice to women Received a bonus in this period 48.1% 31.0% 8.0% 0.0% We are confident that we have considering a career in waste, it would be not to Median bonus gender pay gap 11.7% - 100.0% - equitable and fair schemes in place let any reservations – or stereotypes – hold you regardless of gender and the majority Mean bonus gender pay gap 16.7% - 100.0% - of employees receive a bonus payment back. If the role interests you, go for it!” Percentage of employees who received bonus 48.1% 31.0% 8.0% 0.0% at some point during a calendar year.

24 — 25 FCC Corporate Social Responsibility Report People focus

Attracting talent “I feel brilliant Energy and Utility knowing that I’m not going back to Skills Partnership Talent Match the job centre.” James FCC Environment is a proud member Outstanding success FCCE is a member of the Energy and Utilities Skills Partnership of Talent Match, a scheme that is FCC’s partnership with talent match to “ensure a safe, skilled and sustainable workforce provides targeting young people who are has been recognised with a Talent the essential services that our customers seek and meets the furthest from the jobs market, Match ‘No One Left Behind’ award. “The project has UK’s needs from the energy and utilities infrastructure.” including those who are completely The glittering conference was held given James a outside of the benefits, work and at Rotherham United Football Club in job, and we have The sector delivers essential services to 65 million people training system and facing severe November and hosted by local, BBC gained a dedicated across England, Scotland, Wales and Northern Ireland, and barriers to gaining the skills they need Look North journalist Tom Ingle. and hardworking is the largest single contributor to the UK-wide National to get into work. FCC Environment walked away with employee.” Infrastructure Delivery Plan. Talent Match boosts opportunities ‘Outstanding Employer Contribution BDR contract manager Waste management has an increasing demand for candidates for young people in these areas by 2017’ for the Sheffield City Region bringing together partnerships of – a fantastic achievement. with qualifications in STEM subjects (science, technology, employers, education providers and engineering and mathematics), as many of the low grade others, led by local charities. manual skills in the industry will be superseded by higher level The investment was co-designed with skills relating to processing, recycling and energy recovery. young people, both centrally and in In order to proactively address any future skills shortages, and each of the 21 partnership areas, and will continue to have young people to increase diversity within the workforce, FCC and partners at the heart of decision making are working on three priority areas: throughout the programme. “FCC was the only corporate Increase sector attractiveness and recruitment to ensure A the sector appeals to all communities, generations and company to win an genders. FCC and 19 other sector employers are working with schools and colleges through the Talent Source outstanding achievement Network initiative to attract and retain talent.

Maximise investment in skills, including supporting the award, which is pretty B development of entry routes to employment, building high quality apprenticeships and investing in sustainable ground-breaking” skills in the supply chain. BDR contract manager C. Taking targeted action to address anticipated skill gaps C and shortages, including providing consistent training, mobility and skills transfer through the Energy and Utility Skills Register sector passport schemes.

26 — 27 FCC Corporate Social Responsibility Report People focus

Training FCC Environment Long Service Awards and development Celebrating long service in 2017

FCC Environment’s graduate scheme is attracting graduates into entry roles across the business. “I have thoroughly enjoyed my time on the Celebrating Celebrating George Newman joined FCC Environment in 2015 on scheme and feel it has 35 years’ service 35 45 years’ service 45 the graduate management trainee scheme and was given me the perfect awarded two placements, one in Recycling Operations opportunity to develop Doug Rowe is Peter Hann has and one in Energy from Waste. what I hope will be a another long-serving completed an incredible long and successful member of the FCC 45 years’ service for FCC. George has learned skills in risk assessments, career within an workforce, with 35 years Starting in his role in 1972, procedures, health and safety, minimising our impact exciting and important on the environment, staff management, and industry.” under his belt. Doug joined Peter is now a Contract communicating with contractors, customers, and George Newman in 1982 and is now a Closed Supervisorin Recycling fellow FCC sites, and has successfully completed his Graduate Management Trainee Site Supervisor at the Operations in Hereford. Certificate of Technical Competence. FCC Environment Scabba Wood in Doncaster. Shannon Morbey joined FCC Environment’s graduate programme in 2015 after completing an environmental management postgraduate diploma. Shannon was first placed in the business development team, where “FCC Environment In 2017, a further 17 members of the workforce celebrated 25 she assisted in preparing detailed proposals for local has supported years in post, including frontline staff (Glen Brennan, Anthony authority contracts. and encouraged Doyle, Dennis Elliott, Richard Maiden, Gerald McAllister, Stephen me throughout the Shannon then experienced the day to day operations Pugh, Leslie Shilton, David Thompson and Colin Vernon), site and programme and given of service delivery. While completing her Certificate operations managers (Antony Hepworth, Andrew Langan, Lee me every opportunity Raynor, Kevan Simpson, Terence Walsh and Andrew Papworth), a of Technical Competence and other operational to develop my skills senior HR business partner (Sara Atkinson) and Malcolm Kendrick, training, Shannon investigated ways to improve re-use further.” at the 11 Suffolk household waste recycling centres, general manager of our Wrexham PFI contract. Shannon Morbey diverting reusable items to be sold through a charity Assistant Contract Manager Everyone’s achievements and commitment to the business were partnership shop. FCC Environment celebrated at the glittering Long Service Awards ceremony. Congratulations to all our long serving employees!

28 — 29 FCC Corporate Social Responsibility Report People focus

Valuing our people Our ABCD (Above and Beyond the Call of Duty) Awards continue to attract ABCD Awards nominations from across the business. The awards are presented every three 2 017 winners months, with categories that reflect our brand values.

Doing the right thing Environmental Commitment People focus Forward thinking To ensure the ongoing success We care about what we do We value our people and By embracing change, of our business, we focus on and how we do it, running our genuinely enjoy what we we can be better prepared our customers and ensure our operations in an environmentally do – which is why our people for the future, whatever services meet their needs and socially responsible way enjoy working with us too it may bring

John Cartwright and Norman Landfill Engineering Team: David Norwich (Mile Cross) Recycling Shahid Khan: Shahid was recognised John Smith: A Refuse Collection Driver Darrington Team: Lee Jordan, John Smith: When a small fire broke out Brown, Robert Ogden, Anthony Centre: Under the leadership of the for his outstanding service to the in Harborough, John was asked to assist Dickinson and their teams at Darrington Smallmead Waste Transfer Station, Porter, Tim Darby and Davy Sow new Site Supervisor, Shayne Dunt, company, above and beyond normal when a person collapsed in the street. A Quarry have completed a succession their swift response meant the site are well organised and motivated, the overall standard of service expectations. Shahid manages a very trained first aider, John carried out CPR of improvements which have had was evacuated within 4 minutes. The delivering permanent capping works has made a marked improvement, busy customer-facing workload and until paramedics arrived. His positive a significant positive impact on the emergency services and FCC have across 20 sites and achieving cost- receiving compliments from Norfolk always supports his colleagues to the actions have been praised by everyone profitability of the site as well as staff congratulated the team for their savings for the business. County Council and excellent most professional level. concerned. safety and wellbeing. professionalism. customer satisfaction. Wilmington Transfer Station, Hull: Adam Newman: Always producing Simon Smith: Since Simon became Foxhall HWRC Team: The Foxhall team John Oakes: John is an excellent When a fire broke out at night, Tanya Environmental Monitoring work of a high standard, Adam will Team Leader at the Sudbury HWRC has excelled throughout significant supervisor who recently dealt with Thrower and Jason Riley operated Technician: Adam Doubtfire put himself out in order to get the task in October 2015, team morale and operational changes, and provided an incident involving a vulnerable heavy plant to remove waste under introduced changes to the sampling done. His dedication, customer focus customer service levels have improved valuable input to the redesign of the member of the public. John’s instruction from the Fire Brigade, regimes at two sites in Winterton, and exceptional attitude have been dramatically. Simon is continually site. They have won a national award quick and clear thinking avoided without any hesitation for the good making a significant improvement recognised by multiple FCC teams developing his own professional skills and earned the praise of Suffolk County a potentially dangerous situation, of FCC. in service while saving costs. Adam and our clients. as well as those of his team. Council, and importantly, members of and his actions are a credit to his cares about what we do and how we the public. Bernie Burke: Nothing is too much Milton Landfill Team: The temporary professional standards. do it, and is a credit to himself and trouble for Bernie, and her obvious reopening of Grunty Fen Landfill FCC. John Wilson: Working for FCC for 24 commitment and enthusiasm required a lot of hard work from Richard years, John is now site foreman at towards her role, the company and Horwood and his team. They have Staple Quarry, carrying out his duties the employees within her region is admirably kept this part of the business in a conscientious, safe and efficient second to none.´ running and minimised disruption for manner. He ensures customers are FCC customers. happy using the site and is a credit to himself and the entire company.

30 — 31 FCC Corporate Social Responsibility Report Environmental We achieved our Environmental achievements in 2017: Targets for 2017: 5% reduction Environmental commitment • Further reduced OPRA band D, E and F sites (now 16) and for the sixth year running we have seen improved performance in permit for leachate compliance and reduction in legacy. breaches from Protecting and enhancing the previous • Continued to develop and deliver internal environmental year’s target the environment are core training for a whole host of topics covering environment and energy management, permit compliance, environmental 1% reduction in values of FCC Environment. monitoring, risk assessments, aspects and impacts. energy usage/ • Developed a bespoke energy management platform that tonne of waste Our investments and long-term has been rolled out across the business and is now being used processed by all of our site colleagues. This will enable all users to easily — commitments to the environment record, monitor and track their energy performance against are progressively improving the their target (kwh / tonne processed). impacts of our operations. • No fines or prosecutions for the 6th year running.

Regulatory compliance

Leachate compliance compliance CCS scores 79% 96% 2615 95% 95% 75% 92% 2164 90% 70% 69% 69% 1891 1861 871

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Average no. of notifications Environmental complaints Sites in OPRA band D,E,F per environmental permit by stakeholders 5 5 5 34 32 683 26 23 497 493 471 3 3 383 16

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

32 — 33 FCC Corporate Social Responsibility Report Environmental commitment

Carbon footprint Scope 2 Electricity – Scope 2 % Emissions are indirect GHG emissions from purchased grid electricity (more than 90% of this is based on accurate data). Emissions from our Our carbon footprint represents the total 5 use of electricity continue to fall year-by-year, now standing at 8,769 amount of greenhouse gases produced by tonnes CO2 equivalent, a 27% reduction on last year’s emissions.

Overall scope 1 13,109 FCC Environment activities, expressed in emissions have Scope 3 12,060 Emissions are predominantly from business travel using public transport. equivalent tonnes of carbon dioxide (CO2). 8,769 reduced by 5%. Scope 3 emissions have remained much the same. Our outside of scope figures predominately account for our biogenic Scope 1 landfill and energy from waste emissions (accounting for approx. 70% 2015 2016 2017 Emissions are direct greenhouse gas (GHG) emissions, including % of total EfW inputs) in addition to an extremely small element within our from landfill activities under full operational control. 27 diesel and petrol use. Landfill emissions continue on the predicted downward trend due to continued diversion of waste from landfill disposal and improved capture Emissions from of landfill gas (a reduction of 143,000 tonnes CO2 equivalent). Meanwhile, our use of Tonnes C02 equivalent 2015 2016 2017 emissions from our energy-from-waste facilities have increased by electricity have Gross carbon footprint 3,737,376 3,651,874 3,480,103 21,000 tonnes CO2 equivalent, largely due to the opening of Greatmoor EfW with another notable increase forecasted with the Millerhill plant reduced by 27% Biogenic outside 1,764,687 1,727,999 1,655,777 due to begin operations in 2018. While EfW emissions will increase as of scope new capacity becomes available, the growth is small compared to the significant reduction in landfill emissions. These emissions however Net carbon footprint 1,972,689 1,923,875 1,824,326 are predominantly biogenic (renewable) and biogenic emissions are determined to be outside the scope of carbon emissions reporting. Fuel emissions continue to decline reflecting the great work and efforts All emissions factors and GWPs have been taken from the UK being made operationally to improve fuel and process efficiencies. Government GHG Conversion Factors for Company Reporting 2017. Overall scope 1 emissions have reduced by 5%.

Net carbon footprint Landfill Energy from Waste Fuel (liquid & gas) 444,971 50,182 48,781 3,249,372 414,311 3,133,412 424,506 2,990,590 43,440

1,972,689 1,923,875 1,824,326

2015 2016 2017 2015 2016 2017 2015 2016 2017

2015 2016 2017

34 — 35 FCC Corporate Social Responsibility Report Environmental commitment

Driving fuel efficiencies % Advantages Current challenges 10 Electric motor: No combustion Battery increases vehicle weight One of our heavy-duty, and ZERO emissions by 3-10%, although with improving 4-axle 100% electric, self rechargeable refuse FCC Environment’s technology this will reduce Reducing our fuel consumption collection vehicles. Fleet Department Minimum noise level possible The FCC Fleet team was tasked Further investigation will pinpoint burns on average over Purchase prices are prohibitively to identify savings related to the the underlying issues affecting the 5.5 million litres of Maximum energy performance high but expected to reduce reduction of fuel use in our road performance of the devices, and this is diesel per year. We’re as the market develops transport fleet, incorporating where we will focus our attentions. looking to reduce this 50/60% energy saving compared by up to 10% innovative initiatives that could be to conventional refuse collection Requirement for charging/ The Fleet team collects detailed fuel introduced across the haulage fleet. vehicles fuelling infrastructure limits use use data for all road transport related to urban areas The team trialled a device called Eco- vehicles and is working to implement The energy used is cheaper than FIT, and were able to demonstrate its more stringent fuel monitoring other type of vehicles Currently less economic than effects on a range of vehicles across procedures at a site level. Regular 16,000 internal combustions vehicle different sites. The device prevents the checks on all vehicles fitted with the engines, although this is improving engine being “laboured” or “overrun”; Eco-FIT fuel saving devices are carried Vehicles in the FCC as the technology develops it limits idle RPM; and makes the out in order to monitor improvements Environment fleet driver change gear before they would over time and taken together, these normally, reducing fuel wastage. initiatives are expected to enhance fuel efficiency across the FCC Overall, the initiative has definitely fleet and significantly reduce our identified opportunities to save fuel. environmental impact. There was some variance within the dataset however, indicating that the devices did not work consistently across the fleet.

Electric vehicle ambition We currently operate a fleet of 16,000 vehicles throughout continental Europe. 659 FCC has invested considerably over a long period of time in the research and development of alternative fuelled municipal vehicles, and plans are underway to Electrical vehicles, plug- incorporate these innovative vehicles into our UK contracts. in hybrid or hybrid To reduce the impact of energy consumption and emissions from our fleet and facilities, we have invested and continue to invest in electric vehicles, energy efficiency programmes and the production and use of renewable fuels. We currently have over 1,900 environmentally-friendly vehicles on the road 1,900 designed for municipal services with one of the most advanced fleets in the sector. These vehicles can be powered with compressed natural gas, electricity, Environmentally or as hybrid, and can achieve up to 70-80% fuel savings. friendly vehicles on the road

36 — 37 FCC Corporate Social Responsibility Report Environmental commitment

Our new solar farms in numbers:

Investing in solar power

FCC Environment is responsible The solar arrays needed to ha kWh for managing a large number be designed specifically to 28,000 17.3 8,037,278 of closed landfill sites, some of be fitted on shallow soils, to which are ideal for capturing protect the engineered landfill Solar panels Area of land Electricity the sun’s energy and converting cap. Ethical Power and Sirius it into green electricity. Renewable Energy installed the generated in thousands of bespoke anchored In 2017, FCC installed two first year of piles and solar panels and photovoltaic solar farms, at 13,346 2,531 connected the solar farms to production Wraysbury and Wally Corner Anchored piles Homes – equivalent the grid in time for the 20 March closed landfill sites. Both had power demand 2017 Renewables Obligation been the repositories for waste deadline. in the 1970s and 1980s, and MW had been restored in the 1990s. 92,404 8.1

Tonnes CO2 The amount of equivalent – carbon renewable energy offset over lifetime generated In 2017, FCC installed of facility two photovoltaic solar farms

38 — 39 FCC Corporate Social Responsibility Report Environmental commitment

Land Restoration Creating a nature haven at Jubilee Lake, Protecting and enhancing biodiversity Examples include: Buckinghamshire

FCC Environment employs teams of ecologists to survey sites and create • Creating hedgerows to natural habitats to support biodiversity. support endangered FCC Environment has partnered with the Berks, Bucks & butterflies – Greatmoor EfW A phase 1 habitat survey is often used to identify habitats and their potential for Oxon Wildlife Trust (BBOWT) to manage the site at Jubilee entrance 28,222 supporting wildlife. Focusing on the characteristics of the vegetation, including Lake, Calvert, Buckinghamshire. The site is now part of grasses, wildflowers and trees, the habitats are classified and mapped using • Installing newt ponds – the BBOWT’s network of nature reserves, contributing to In 2017 FCC seeded 34 specialist software. Brogborough and Dix Pit conservation and biodiversity across three counties. hectares of land, laid Further surveys are undertaken if there is evidence of badgers, potential 600m of hedgerow and roosting sites for bats (all 17 bat species are protected under EU legislation), • Creating a habitat that planted 28,222 trees endangered bird species such as skylark and lapwing (both of which are found supports ground nesting The large ‘lake’ was originally created by clay extraction for the brick industry, at Brogborough landfill), pond habitats, great crested newts and butterflies. birds such as skylarks – with part of the site later being used as a landfill. Brogborough Phase 1 habitat surveys provide valuable information about a site’s ecological Following restoration works including the careful sculpting of steep banks, value and how this might impact on any development at the site. If any shallows, bird hides and floating raft islands, Jubilee Lake now attracts wintering protected species are present or if there is a special habitat that supports rare wildfowl such as mallard, tufted duck, pochard, common terns, waterfowl and flowers or grasses, then the FCC ecologists develop a plan to protect and kingfishers. enhance those areas. During the winter, birdwatchers have spotted bittern, smew, scaup, goldeneye, goosander and glaucous gull. Chiffchaffs, blackcaps and willow warblers can be heard among the dense reedbeds, and a small pond has been created to attract frogs and other amphibians. The scrubby area around the lake contains a surprising range of wild flowers, including delicate orchids. The flowers support a range of butterflies including Habitat creation the grizzled skipper and green hairstreak. at Brogborough

During 2017, FCC Environment created a Great Crested Newt habitat at Brogborough, including five large ponds. The site will be completed in 2018 with aquatic planting and seeding works. Created to comply with mitigation requirements, the site is already attracting a variety of birds as well as supporting the current population of red data list species such as Skylark and Lapwing. Following a major fencing project the site is now stock proof, and sheep grazing and bee keeping will be introduced in 2018 to further enhance biodiversity in the area.

Construction of pond works under ecologist supervision

40 — 41 FCC Corporate Social Responsibility Report Integrated Management System Our integrated management system enables us to meet all Doing the right thing standard requirements with a single set of policies and procedures. Where required, operational sites are compliant to all four Transparency is important in standards (ISO 9001, 14001, 45001 and 50001), and all sites are required to comply fully with our integrated management system. running a sustainable business. Our internal audit system is vetted by BSI, and our auditors International standards guide are all BSI trained lead auditors in all four standards. our operations, and local communities help shape Delivering a high quality service with ISO 9001 9001: our investments FCC Environment is certified to ISO 9001, the internationally recognised Quality Management System (QMS) standard. We are proud to have been recommended for the new 9001:2015 standard, in recognition of our achievements with driving 2015 quality through the business. A powerful business improvement tool, ISO 9001 We are proud Quality Management certification helps us to: to have been Continually improve, streamline operations recommended and reduce costs for the new 9001:2015 Win more business standard with ISO 9001 Be more resilient and build a sustainable business

Satisfy more customers

Show we have strong corporate governance

Work effectively with stakeholders and our supply chain

42 — 43 FCC Corporate Social Responsibility Report Doing the right thing

Improving environmental performance Enhancing performance and efficiency to ISO 50001 through ISO 14001 14001: We follow the energy management practices that are considered to be the best, FCC Environment is certified to ISO 14001 and has been recommended to the globally. Effective energy management is good for business and an integral part new 14001:2015 standard, helping us deliver greater sustainability through our of our responsibility to the world in which we operate. Through being certified day to day operations. Much more than regulatory compliance and the ability 2015 to ISO 50001, FCC Environment is saving energy, cutting costs, and meeting to meet supplier requirements, the ISO 14001 standard helps us address multiple environmental requirements, every day. The ISO 50001 standard helps us to: We’ve been aspects of our business procurement, logistics and service development, so that recommended to Identify and manage risks surrounding future energy supply we reduce our impact on the environment. Our ISO 14001 certification drives the new 14001:2015 us to evaluate how we manage emergency response, customer expectations, standard Measure and monitor energy use to identify where to improve efficiency stakeholders and our relationships with the communities in which we operate. It helps us to: Improve overall performance to cut energy consumption and bills

Reduce our environmental impact Reduce carbon emissions and meet Government reduction targets

Engage employees Demonstrate environmental credentials and lead by example

Improve our reputation

Build resilience against uncertainty

Be able to adapt to change

Driving a safety culture using ISO 45001 st FCC Environment has migrated from OHSAS 18001 to the new ISO 45001 1 Occupational Health and Safety Management Systems Standard. This makes us the first UK waste recycling business as determined by the British Standards The first UK waste Institution (BSI) to achieve this standard and the first to have accreditation to recycling business all the latest standards. The standard helps us to: to achieve ISO 45001 and all the latest Provide safe and healthy working conditions standards

Consult with and involve our workforce

Lead by example

Proactively improve our occupational health and safety performance

Prevent work-related injury and ill health

44 — 45 FCC Corporate Social Responsibility Report Doing the right thing

WREN is a not-for-profit business that awards grants for community, conservation and heritage projects from funds donated by FCC Environment through the Landfill Communities Fund and Scottish Landfill Communities Fund. Since 1998, WREN has granted £242m to over 7,640 projects which support and benefit people living within the vicinity of an FCC Environment landfill site. All the projects funded benefit the general public in some way and range from play areas and skate parks, through to village halls, churches and nature reserves.

Continued »

Overview m m of WREN £8.6 £1.9 funding 2017 WREN helped fund Towards the creation Doing the right thing 232 projects by and refurbishment of providing more than 47 play areas Contributing £8.6m in grants t o communities £3.5m £1.3m Grants included Sport and recreation £3.5m to improve facilities benefitted from and maintain over 35 grants totalling more 100 community than £1.3m buildings

46 — 47 FCC Corporate Social Responsibility Report Doing the right thing

Continued » International Bomber Command Centre and Memorial Park, Lincoln During 2017 WREN helped fund 232 than £1.3m and 32 outdoor community projects by providing more than £8.6m areas and parks will also be able to The International Bomber Command Centre was created in grants. Projects varied from £3,000 provide better facilities thanks to more 32 to provide world class facilities to acknowledge the efforts, to repair windows in a listed church than £1.1m from WREN. sacrifices and commitments of the men and women from building to £306,000 to help fit out a WREN provided Applications funded supported 26 the 62 different nations who came together in Bomber visitors centre. £1.1m to fund different Local Authority applications, Command during WWII. Grants included £3.5m to improve and 47 Parish Councils and numerous 32 outdoor community areas maintain over 100 community buildings charities, sports clubs and churches. Over 1 million men and women served Surrounding the Spire and Chadwick and parks. and a further £1.9m towards the All projects funded must evidence or supported Bomber Command to Centre lies the Memorial Park, which creation and refurbishment of 47 play support for the work they want to do protect the freedom we enjoy today features two peace gardens set across areas. Sport and recreation facilities and show how their project benefits the and suffered the biggest number of 10 acres of landscaped grounds. benefitted from 35 grants totalling more local community. losses of any unit during WWII. The Lincolnshire Peace Garden The International Bomber Command includes 27 native trees marking each Centre and Memorial Park are a fitting of the operational bomber command tribute to those service men and centres stationed in Lincolnshire women. during the war. The International Peace Garden pays homage to the During 2017 WREN provided The Royal Treatment 62 nations who served or supported £306,000 towards the fit out of the the Command. WREN provided operational areas of The Chadwick Following a multimillion-pound redevelopment, the Queen re-opened the £127,500 towards the creation of the Centre, named in honour of the National Army Museum in Chelsea. gardens including trees, planting and designer of the Lancaster bomber, seating areas. FCC, as WREN, donated over £1 million to the project, and CEO Paul Taylor which houses exhibition, heritage and attended the grand re-opening, and met the Queen and the Duke of Edinburgh. education facilities and uses state- The International Bomber Command Founded in 1960, the NAM redevelopment hopes to represent the British Army of-the-art technology and interactive Centre and Memorial Park was International Bomber as exciting and relevant and to improve public engagement. displays to tell the story of Bomber formally opened on 12 April 2018 as Command Centre The funds we’ve donated contribute to building an appealing central visitor Command. part of the centenary celebrations of the Royal Air Force. space, improving outside landscaping and creating new exhibitions. The Memorial Spire and Walls of Names are at the heart of the site. The Spire is 31.09m high, the wingspan of the Avro Lancaster Bomber and 5m wide at the base, the width of the Lancaster wing. The Walls of Names surround the spire and are formed from 270 individual panels, engraved with the names of almost 58,000 men and women who lost their lives serving or supporting Bomber Command.

48 — 49 FCC Corporate Social Responsibility Report Doing the right thing

Ribble Estuary National Landfill Communities Fund Projects 2017 Nature Reserve, Lancashire Simon Settle and Julie Fourcade cutting the ribbon 1 Community 4 Major Grants, One of the notable projects which completed during 2017 on Ribble Estuary National Outdoor Spaces £313,500 1 Nature Reserve was a 3 year programme to expand the Ribble Estuary National and Parks, Nature Reserve at Hesketh Out Marsh East in Lancashire. £1,008,490 5 Community Buildings, 2 2 Sports and £3,299,821 Recreation, WREN provided a total of £1.95m The restoration of saltmarsh is £1,087,587 to the Royal Society for the not only important for wildlife, Protection of Birds (RSPB) to including overwintering birds 3 Children and purchase land which has enabled and breeding waders, but the Young People’s the RSPB, Natural England and managed realignment of sea Facilities, the Environment Agency to defences and breaching of the £1,629,570 complete a scheme to recreate old outer sea wall allows the 3 vital saltmarsh habitat across newly transformed saltmarsh to 160ha of the Ribble Estuary which absorb the energy of waves and was drained for agricultural use helps reduce the risk of flooding during the 1980s. to over 100 neighbouring 5 properties and farmland1. 4

Scottish Landfill Communities Fund Projects 2017

1 Children and 4 Community m Young People’s Buildings, 1 £1.95 Facilities, £291,587 £352,927 WREN provided a 5 Community 2 Churches and Outdoor Spaces, total of £1.95m to the Listed Buildings, £113,422 Royal Society for the £110,300 6 Protection of Birds 6 Sports and (RSPB) 3 Conservation Recreation, and Biodiversity, £294,000 £175,538 5 2

3

4

1. Reducing the risk of flooding at Hesketh Out Marsh East – Environment Agency Oct 2014

50 — 51 FCC Corporate Social Responsibility Report FCC Group Innovation

The waste and resources sector has rarely experienced a Forward thinking period of greater change. The drive for a circular economy is picking up pace and the shift in public attitude is having FCC Group has been a dynamic impact on the industry.

The change in tempo is welcome, and is being largely driven by the public’s innovating on behalf increasing awareness of plastic pollution and the moral imperative to do The BBC’s something about it. Recent figures had showed the UK’s recycling of plastic Blue Planet II of its customers for packaging had stalled, due to challenging economics and general confusion has brought caused by the range of plastics and their varying recyclability. Could this recent trend have a positive lasting impact on recycling behaviour? the matter of over a century. plastic pollution The BBC’s Blue Planet II has brought the matter of plastic pollution firmly under the spotlight, and the nation is calling for progressive action. firmly under the spotlight It is important to recognise that the vast majority of plastics in marine ecosystems are from parts of the world with inadequate waste management. That said, any that escapes the UK’s comprehensive systems is too much, and represents both a loss of value and a cost to society. Public discourse has created a shift in attitudes, and people are more critical than ever of gratuitous packaging and single-use disposable items. We see this in a positive light, as it encourages Government to explore fiscal drivers such as a Latte Levy for disposable coffee cups, Deposit Return Scheme for plastic bottles, and extending the carrier bag charge to include smaller retailers. Such activities will only strengthen British waste and resource management, and ensure that we have quality material streams available for our manufacturing sectors. Pull mechanisms for recycled content are still very much in need of development, with more work needed to promote sustainability through green procurement. Strengthening our indigenous circular economy is more important than ever, with China introducing bans on the import of mixed plastics and a range of other secondary materials. To maintain value chains, there must be a demand. Government has the opportunity to take all these major changes into account when developing its Resources and Waste Strategy. With the aim of making the UK a world leader in terms of competitiveness, resource productivity and resource efficiency, investment in waste reprocessing has never been more vital.

Continued »

52 — 53 FCC Corporate Social Responsibility Report Forward thinking

FCC Group Innovation Waste policy and Brexit Successive European Directives have transformed the way Continued » we manage waste in the UK, yet over time European waste policies have become muddled with contrasting objectives, Putting clean growth at the heart of The final part of the jigsaw is, as ever, poorly designed targets, and costly implications for UK the Government’s Industrial Strategy recovering energy from waste. The businesses and households. is a crucial step that will enable the Government has indicated a new UK to pursue its potential in terms of focus on and recovering value from the materials gasification with combined heat Brexit offers an opportunity for the The UK now also exports large we handle as a nation. The recently and power, in recognition of the UK to reflect on past experience quantities of waste and materials % launched Plastics Pact by WRAP and efficiency these combinations offer. and identify the best way forward overseas. In 2016, the UK had net 63 the Government set a target for 100 If investment and policy can support for Britain. Rather than adopting the exports of scrap materials worth percent of plastic packaging to be this ambition, ensure facilities gain EU’s proposed “Circular Economy £3.1 billion. However, the market for As a nation we are reusable, recyclable or compostable planning permission and are operated Package”, the UK should develop companies exporting residual waste using fewer and by 2025. In striving to reach that as exemplars, then we will indeed be its own set of policies concerning overseas for energy recovery continues fewer resources, target, FCC Environment and the on our way to becoming a leader in waste and resources. These should be to grow, costing the UK over £900 producing 63% more wider recycling sector will play a resource efficiency. aimed at improving the UK’s resource million in gate fees since 2011 (£280 transformational role in how plastic is economic output The potential for a UK circular economy productivity while minimising the million in 2016). collected, reprocessed, and used in per kilogram of is growing, and we are here to help it environmental impacts associated the UK. The UK waste management sector materials consumed become a reality. with waste. has achieved a significant reduction than in 2000. Post-Brexit, the UK will regain full in environmental impacts including control of environmental policy which greenhouse gas emissions (75% for decades has been determined reduction since 1990), dioxin emissions by the EU, including the definition from energy from waste facilities (99% of waste and specifically how waste reduction since 1990), and a wide should be managed. range of regulated pollutants including heavy metals and particulates. As a nation we are using fewer and fewer resources, producing 63% 2025 more economic output per kilogram of materials consumed than in 2000 The recently (much more resource efficient than launched Plastics the European average). Our total waste Pact by WRAP and arisings shrunk by 16% over the period the Government set 2004-14, with notable reductions in a target for 100 the manufacturing sector (76%) and percent of plastic services sector (60%) over this period. packaging to be reusable, recyclable or compostable by 2025

54 — 55 FCC Corporate Social Responsibility Report Forward thinking

FCC Group, innovating Waste policy and Brexit for the next generation Innovation is in our DNA Continued »

In spite of these advances, European waste policies now show signs of weakness For over a century we have been By turning waste treatment centres that will only hinder progress. Proposals for a ‘circular economy’ are watered % producing original ideas to deliver into biofuel production facilities, % down by a focus on collection and reprocessing, but lacking the ‘pull’ factors that 75 services that are both sustainable we hope to power waste collection 100 comprise half of the circle. Targets set under the Waste Framework Directive and and efficient. Our first electric waste fleets and the natural gas distribution Circular Economy Package prescribe the methods of waste treatment, rather than The UK waste collection vehicle began operating network using 100% green energy. We hope to power environmental outcomes. When we pursue the means rather than the ends, it’s in Barcelona in 1974, and today our management sector This project has increased the waste collection fleets easy to make oversights. R&D+Innovation management system has achieved a energy efficiency of anaerobic and the natural gas ensures we stay at the front of the field. For sustainability to work it must be affordable and accessible. The EU’s Circular significant reduction digestion facilities by 70% and the distribution network Economy Package would cost UK businesses £1.9 billion (from 2015-35), and in environmental As a core company value, we are fuel produced can reduce the carbon using 100% green would focus on increased recycling regardless of the economic case. It is right impacts including running significant trials to recover footprint of road vehicles by 80%. We energy. to question how much society spends on recycling over other frontline services. greenhouse gas ever more value from waste. were delighted when the European Commission presented our work in the Brexit will give us the opportunity to create waste management policies that emissions (75% We are working with international report “Two years after Paris. Progress achieve the desired environmental, social and economic outcomes, within a reduction since 1990) partners to recover an increasing towards meeting the EU’s climate UK context. Resource efficiency, and re-use should be at the range and proportion of materials commitments”. Ecoparque 2 (Barcelona) heart of waste policy. Decisions should be based on the comparative greenhouse from different waste streams. We are – Waste collection vehicle gas emissions of different treatment options for individual waste streams using using newly-designed optical sorters to and car both fuelled by gas, a carbon metric. retrieve glass from refinery processes, METHAmorphosis project. and are leading the EU-funded Where FCC Environment has been leading with encouraging reuse of goods LIFE4FILM1 project to increase the and materials from HWRCs, Government should remove barriers and promote recovery of plastic film (LDPE) across more diversion of material from disposal. Meanwhile, Government can help Europe. buoy markets for secondary materials by supporting industrial symbiosis, green procurement, and accelerating ‘End of Waste’ status for products In another strand of the EU LIFE manufactured from waste. programme, our R&D project 2 METHAmorphosis represents a step UK infrastructure should be prioritised through the reform of the Packaging forward in extracting energy from Recovery Note system, and UK innovation harnessed in the development of waste, and is making an important smart materials and recycling processes. contribution to a circular economy. Finally, we support the Government in pursuing high energy efficiency technologies, including combined heat and power from energy from waste facilities; and in pursuing ever greater resource efficiency through a strong network of UK reprocessing infrastructure. In the meantime, at FCC Environment we are not standing still waiting for edicts. We are innovating. We are exploring new technologies and new ways of working 1. LIFE4FILM partners: University of Granada that complement our entrepreneurial outlook. Most importantly, we are ready (ES), AIMPLAS (Asociacion de Investigacion de for changes in UK waste policy that work for Britain. materiales plasticos y Conexas) (ES), Rolbatch GmbH (DE) and Stadler Selecciona, SLU (DE)

2. METHAmorphosis partners: AMB-Metropolitan Area of Barcelona, FCC Aqualia – project leader – FCC Environment, Gas Natural, ICAEN and SEAT

56 — 57 FCC Corporate Social Responsibility Report Forward thinking

FCC, innovating for Appendix Environmental commitment the next generation

Continued » Waste management methods 2017 Regulatory compliance Meanwhile, our VEMTESU project is Key Performance Indicators 2012 2013 2014 2015 2016 2017 focused on the development of a hybrid electrical vehicle with permanent electric Total landfilled CCS scores* 1849 2615 2164 1891 1861 871 52% drive, suitable for delivering municipal Average no. of notifications per 4 5 5 5 3 3 services. These vehicles will minimise Total recycled environmental permit emissions of exhaust fumes and noise, 34% Leachate compliance 65% 69% 69% 70% 75% 79% improving our carbon footprint and the environmental conditions of the Total energy recovery Landfill gas compliance 90% 90% 92% 96% 95% 95% communities we serve. 14% Environmental complaints by stakeholders 991 497 683 383 471 493 Finally, FCC’s cutting edge information Enforcement notices (EA/SEPA/NRW) 2 0 2 1 2 3 and communication technologies, including the use of aerial robots and Prosecutions 1 0 0 0 0 0 smart networks, are enabling us to offer Fines for offences (EA/SEPA/NRW) £10,000 0 0 0 0 0 real added value for our customers. Sites in OPRA band D,E,F - 34 32 26 23 16 Our real time, interconnected data FCC Environment manages waste and recycling for households, systems are providing us with detailed businesses and industry throughout the UK. Overall, the UK * A lower CCS score reflects a higher compliance rating geographical, environmental and recycling rate is increasing, although there is concern that for commercial information, meaning municipal waste the EU 2020 recycling target of 50% will be we can make better decisions for our challenging to meet. Carbon footprint company, our customers, and wider Our business model is based upon extracting value from waste, society. which we do through increasing the recovery of materials and Tonnes C02 equivalent renewable energy. The lack of secondary materials markets Scope 1 2015 2016 2017 combined with the UK’s growing residual waste capacity gap and demand for indigenous power sources, means that the picture Landfill 3,249,372 3,133,412 2,990,590 of waste management methods across the UK will likely continue Energy from Waste 414,311 444,971 424,506 to shift away from landfill and towards energy recovery. Fuel (liquid & gas) 50,182 48,781 43,440 Increasing the efficiency with which FCC Environment recovers energy from waste will therefore remain a priority for the business. Scope 2 2015 2016 2017 Electricity 13,109 12,060 8,769

Scope 3 2015 2016 2017 Fuel 10,402 12,650 12,798

Gross Carbon Footprint 3,737,376 3,651,874 3,480,103 Biogenic Outside of Scope 1,764,687 1,727,999 1,655,777 Net Carbon Footprint 1,972,689 1,923,875 1,824,326

58 — 59 FCC Corporate Social Responsibility Report