Sustainability report 2013 Welcome Contents This report sets out our commitment to sustainability, highlighting the five core areas we focus on and our performance across these areas through the year. It has been created in line with the Global Reporting Initiative (GRI) and independently assured. You can read our GRI checklist online at www.urenco.com. A performance summary and glossary is included at the back of the report.

Sustainability report

01 Introduction p02 Chief Executive 02 Chief Executive Officer’s review Officer’s p22 review Developing our 04 Our business model position as an employer of 06 What we do and where we do it choice

08 We play a key role at the heart of the nuclear supply chain p10 10 Our focus areas Our focus areas p26 12 Managing health, safety, safeguards and security Supporting education, cultural and community 16 Minimising our environmental impact projects

20 Being considered the supplier of choice

22 Developing our position as an employer p12 of choice Managing health, safety, safeguards 26 Supporting education, cultural and and security p32 community projects Managing sustainability 30 Engaging with our stakeholders

32 Managing sustainability 34 Reporting parameters p16 35 Assurance statement Minimising our environmental 36 Summarising our performance impact

38 Glossary of terms Overview Living up to our commitments Introduction At URENCO, we are at the heart of the nuclear energy industry – providing our customers with the enrichment services they need to generate the low carbon nuclear energy that is an important part of the world’s energy mix. We are determined to play our part responsibly by honouring our commitments to sustainability.

We deliver a reliable, responsive, high quality service to our customers. Ongoing sustainability

Ongoing sustainability Continuing to give safety the highest Sustainability report This report provides an update on our ongoing priority sustainability journey. Safety is URENCO’s highest priority and we are constantly striving to exceed our own high Chief Executive It is a journey that started back in our earliest standards. We had one Lost Time Incident this days with the Treaty of Almelo. Signed in 1970, year, a reduction from the two reported Officer’s review the Treaty sets out the principles for the incidents in 2012. effective supervision of URENCO’s technology, centrifuge manufacturing and operations with I am saddened to report that in our 50/50 joint respect to nuclear non-proliferation. As the venture with Enrichment Technology Company, Group has grown, it has extended its two employees were tragically involved in a international co-operation with treaties with fatal accident at the Dutch site in 2013. We the USA and France. These treaties provide a express our sincere condolences to the families framework for the consistent operation of the and friends of those employees. business regardless of any potential change As a precautionary measure, URENCO in ownership. conducted a full review of all our critical life safety procedures to ensure each was fit for Long-term commitment purpose and adhered to rigorously. No major The Treaty demonstrates our long-term issues were found, but as part of the process a commitment to play a responsible central part number of improvements were identified and in the nuclear energy industry. For over 40 made. Furthermore, in 2014 a Group-wide years we have been providing our customers safety campaign will be launched to further with safe, reliable supplies of the enrichment embed safety in URENCO’s culture. services they need to fuel their civil nuclear reactors. This is and will continue to be the Lost Time Incidents are only one measure of fundamental objective of our business – the how we are delivering on our safety source of our success and the focus of our commitments. It underpins the considerable efforts to improve our business. Our customers focus we have placed on behavioural safety by can be assured that we will continue to focus identifying and sharing best practice across the on delivery, quality and reliability and the Group. A Group-wide campaign to raise highest standards of corporate responsibility. awareness of near misses typifies our approach. Helmut Engelbrecht Rather than simply responding to incidents, we are increasingly devoting our attention and Chief Executive Officer Embedding responsibility efforts to prevention, notably by encouraging We aim to embed responsibility across every employees to speak up and share near misses aspect of our business and we often find that across all business areas so that we can learn by doing this we also achieve other from them. Reports are shared with URENCO’s performance benefits such as improvements in Board and Audit Committee. efficiency, reductions in cost and enhancements to quality. Demonstrating Improving our environmental performance responsible leadership Good corporate citizenship and good business Our focus on minimising our environmental go hand in hand. But there is always scope to impact ranges from ensuring we handle uranic go further, which is why we continually look to materials to the highest standards of safety We are proud of the improve the ways we live up to our corporate through to finding ways to minimise our key part we play in responsibility commitments. energy consumption. Our commitment to energy saving is Continuous improvement spearheaded by a Group-wide energy savings helping to deliver low Over the years we have sought to increase taskforce. Energy saving initiatives, such as both the rigour and the performance of our making sure wherever possible we reuse heat carbon, sustainable business. This is a step by step process, where and water across our facilities, not only benefit we constantly look to maintain our good work the environment but also improve efficiency. nuclear energy. that has gone before. We discuss these initiatives on pages 18-19 of this report. Our strategic approach Our corporate responsibility strategy guides Excelling for our customers the way we manage and demonstrate our To maintain our market share and position as a commitment to good business across URENCO. world-leading supplier of enrichment We focus on five key areas of sustainability: services, we focus on consistently delivering 1. managing health, safety, safeguards excellent customer service across the Group. and security; The core of this commitment is to deliver on 2. minimising our environmental impact; our promises. Once again we met 100% of 3. being considered the supplier of choice; our customer delivery commitments this year. 4. developing our position as an employer of choice; and Being a good employer 5. supporting education, cultural and We are proud to have a capable and engaged community projects. workforce and we are committed to inspiring and challenging our employees, to manage We summarise our approach and performance their performance effectively and fairly and I across these five areas further on in this report, recognise their achievements. and highlight key developments. We completed our third Group-wide employee survey in 2013. The results were very positive, with improved scores across a number of areas compared to 2011. More details can be found on page 22 of this report.

URENCO 02 Sustainability report 2013 Enriching young people’s experience of Lost Time Incidents Awards in 2013 science Through our ‘Richie’ science workshops, we President’s Award by encourage young people to experience and 1 learn about science in a fun and interactive The Royal Society for the way. The success of the initiative has allowed There was one Lost Time Incident related to Prevention of Accidents. us to share the Richie science workshops with employees and contractors across our our industry peers, enabling a greater number enrichment facilities and construction sites in Best Dutch Employer Award of pupils to understand the enrichment process 2013, compared to two recorded in 2012. and how this links into nuclear energy and the 2013 in the category of wider concepts of energy and electricity. organisations with fewer In addition, we have developed a partnership than 1,000 employees. with the British Science Association who will Accreditation in 2015 incorporate the ‘Richie’ school science Best German workshops as a key element of their current company in the field of CREST awards. CREST is a UK award scheme ISO 14001 recognising success, building skills and Communications and demonstrating personal achievement in STEM All our European enrichment facilities have (science, technology, engineering and maths) environmental certification to ISO 14001. Leadership. project work. Our USA facility is due to gain ISO 14001 accreditation in 2015. PRCA DARE Award for Maintaining our position as a global player Internal Communications. 2 Our operations in Europe and the USA give us a unique advantage that allows us to serve more than 50 customers in 19 countries worldwide. Our USA facility enables us to meet Delivery commitments the requirements of our customers in North America and in the growth markets in Asia. Operating in the USA also provides 100% environmental benefits by reducing the number of transatlantic shipments. In addition, Once again we met 100% of our customer it provides valuable diversity of supply within delivery commitments this year. our business for our customers around the world. Looking ahead Along our sustainability journey, we envisage Group-wide employee survey further embedding corporate responsibility across URENCO. This involves ensuring that as a Group we have the appropriate principles, 8 policies and governance established and shared and that across our different enrichment In our third Group-wide employee survey, facilities and businesses we continually completed in 2013, the general satisfaction – encourage good practice and improvements. the sense of well-being our employees gain from their work – remained at 8, well above In December 2013, our Board approved the the external benchmark of 6.6.1 establishment of a Sustainability Committee, underlining senior level commitment and involvement. The Committee will determine our sustainability goals in the short and long term. Guided by the Committee, we will continue to build on our achievements across Science workshops our five key areas of sustainability, throughout our business. 37,000 Helmut Engelbrecht To date, more than 37,000 children have Chief Executive Officer attended our science workshops at schools close to our enrichment facilities and offices.

1 This is the result of a survey conducted 2 PRCA, the Public Relations Consultants by Effectory International. This survey Association, is the professional body that approaches a number of businesses across represents UK PR consultancies, in-house the globe. communications teams, PR freelancers and individuals.

URENCO Sustainability report 2013 03 Sustainability report Our business model

We provide uranium Our culture Our customers enrichment services for We play a key part in meeting the world’s need Our customers operate nuclear power plants for reliable, low carbon energy. for the production of low carbon electricity. the civil nuclear industry We also serve customers in the field of Our vision medical isotopes. and deliver an unrivalled We believe the world needs nuclear energy to meet the demands of sustainable global reliable, flexible, high energy. We can help the transition to a low carbon economy through the deployment quality service to our of our enrichment products, services customers. and technology. Our mission Our mission is to be the supplier of choice within our sector and a key contributor to sustainable energy.

The Treaty of Almelo The Treaty of Almelo enshrines the enduring purpose and principles of URENCO.

Our five values Our five values guide everything we do at URENCO – from our strategic and operational decision making to our day-to-day activities.

Safety Integrity Flexibility Development Profitability We operate to the We conduct all our We respond to best We are committed We are committed to highest standards of relationships with meet our customers’ to the sustainable making profits to secure safety, environmental honesty, fairness needs by flexibly development of our future and reward and security and respect. deploying our skills our business by our shareholders requirements. and capabilities. continuously developing and employees. our employees, services and products.

URENCO 04 Sustainability report 2013 Our five strategic pillars Our five strategic pillars link directly to our five core values and enable us to lead and stay ahead of the competition. They have also helped us to shape the focus areas detailed in this report.

1 2 3 4 5 Responsiveness International Highly motivated Responsible World-leading presence and and committed long-term business centrifuge collaboration people technology

We maintain close relationships We make the most of our Our workforce is made up We are committed to living up Gas centrifuge is the industry’s with all our customers and are unique global presence to of talented and experienced to our responsibilities as a global preferred technology. It is committed to delivering for them. provide security of supply for people who operate with leader in enrichment services by recognised as the most cost our customers and to work integrity and dedication in a doing the right things in the right effective, proven form of We are “the most together to share best practice highly regulated industry. They way for all our stakeholders. enrichment globally. favourably regarded” and refine our processes. are directly responsible for the supplier in the sector, success of our business. In 2013 we established We have expanded our according to an Each business function an ‘energy savings enrichment services independent customer across the URENCO In 2013, our Dutch group’ to collect energy portfolio to include survey by Group is headed by a enrichment facility savings ideas from across increased amounts of Ipsos MORI (2011). Group Process Owner was voted the business, such as natural uranium (feed). who drives continuous Best Dutch Employer. using white coverings at improvement and aligns our Dutch enrichment During 2013, over best practice across facility for roofs to one million patient each enrichment facility. reflect sunlight and keep treatments were buildings cooler in performed worldwide the summer. with radioisotopes produced from URENCO Stable Isotopes products.

URENCO Sustainability report 2013 05 Sustainability report What we do and where we do it

We are a leading We provide enriched supplier of around uranium to the world’s the world nuclear energy industry. We use our world-leading centrifuge technology to provide uranium enrichment Making use of the and associated services to our customers. We have four uranium enrichment facilities. geographic spread of The facilities are located at: Gronau in our operations and Germany; Almelo in the Netherlands; Capenhurst in the United Kingdom; and working to our shared Eunice, New Mexico in the USA. Our Head Office is located close to London, United values, we ensure our Kingdom. All our facilities use centrifuge technology, the industry’s preferred uranium customers around the enrichment technology. Our geographic spread is a distinct advantage, enabling us world receive the safe, to provide customers with secure diversity reliable, high quality of supply. We have a strong forward order book which supplies they need. allows us to plan production volumes many years in advance.

Enrichment facilities 4

Employees 1,500

Customers

50 (more than)

Customer countries 19 URENCO USA Eunice, New Mexico – our USA Current production capacity enrichment facility continues to (tSW/a) bring capacity online. It currently 17,600 stands at 3,200 tSW/a.

URENCO 06 Sustainability report 2013 URENCO operations Our operations and customers Customers

URENCO UK URENCO Deutschland URENCO Nederland Capenhurst, United Kingdom – Gronau, Germany – our Almelo, The Netherlands – our UK enrichment facility German enrichment facility our Dutch enrichment provides a production capacity provides a production capacity facility produces an annual of 4,900 tSW/a. of 4,100 tSW/a. capacity of 5,400 tSW/a.

All site capacity data as at 31 December 2013.

URENCO Sustainability report 2013 07

Sustainability report 2013 report Sustainability 08

URENCO

Fabricating fuel Fabricating 4

plant

Mining 1 power power

5 Nuclear 

feed materials feed

ment and and ment ich Enr

3

Electricity 6

Conversion 2

product (EUP). product

feed enrichment services and enriched uranium uranium enriched and services enrichment feed

we can provide services and products including including products and services provide can we

material and refeed by-product (tails) so that that so (tails) by-product refeed and material

of our centrifuges allows us to conserve feed feed conserve to us allows centrifuges our of

reaction in a nuclear power plant. The flexibility flexibility The plant. power nuclear a in reaction

offices and industries around the world. the around industries and offices sufficient to sustain a continuous fission fission continuous a sustain to sufficient

hospitals, schools, homes, for electricity generally enriched to up to 5%, which is is which 5%, to up to enriched generally

source of low carbon energy – generating generating – energy carbon low of source uranium, U235 and U238. The lighter U235 is is U235 lighter The U238. and U235 uranium,

The nuclear power plants provide a secure secure a provide plants power nuclear The separates the two isotopes contained in in contained isotopes two the separates

6 Generating electricity Generating 6 into our gas centrifuges. The centrifuge centrifuge The centrifuges. gas our into

We heat UF6 to turn it into a gas and feed it it feed and gas a into it turn to UF6 heat We

3 Enrichment services services Enrichment 3 turn drives turbines which power generators. power which turbines drives turn

reactors and used to generate heat which in in which heat generate to used and reactors

nuclear reactors. Fuel rods are placed into into placed are rods Fuel reactors. nuclear one of our enrichment facilities. enrichment our of one

power stations, where they power the power they where stations, power

uranium hexafluoride (UF6) and transported to to transported and (UF6) hexafluoride uranium

The fuel rods are transported to nuclear to transported are rods fuel The

Ore concentrate is chemically converted into into converted chemically is concentrate Ore

5 Fuelling the nuclear plant nuclear the Fuelling 5 2 Converting uranium ore uranium Converting 2

then loaded into fuel rods. fuel into loaded then yellow cake. yellow

fabricators, where it is converted into pellets pellets into converted is it where fabricators, to become uranium oxide, also known as as known also oxide, uranium become to

The enriched uranium is transported to fuel fuel to transported is uranium enriched The Uranium ore is extracted, purified and milled and purified extracted, is ore Uranium

4 Fabricating fuel Fabricating 4 1 Mining uranium ore uranium Mining 1

nuclear supply chain supply nuclear

at the heart of the the of heart the at

We play a key role key a play We

Sustainability report Sustainability Heating UF6 to turn it into a gas Our uranium UF6 is delivered to our facilities in enrichment process internationally recognised and standardised transport containers by approved suppliers. UF6 is solid at ambient temperature. At our enrichment facilities we connect the transport container holding UF6 to the plant feed system. It is then heated in order to vaporise the UF6 and turn it into gas at Storing and converting Our process starts with sub-atmospheric pressure. The UF6 gas closer to the wall in the centrifuge is partially depleted in U235. This by-product is the delivery to our Spinning UF6 at high speed to enrich it known as tails. We collect and cool tails in a The UF6 gas is fed into a centrifuge casing cooling box containing a cylinder, weighing to facilities of uranium containing a cylindrical rotor which spins at ensure all material can be accounted for. hexafluoride (UF6). high speed, separating uranium’s two isotopes. Tails still contain a low concentration of U235 The heavier isotope U238 is forced closer to and can be re-enriched if economically viable. the wall of the rotor than the lighter U235. This is the most suitable We store tails at our enrichment facilities in As a result, the UF6 gas closer to the wall is internationally approved containers pending depleted of U235 and the UF6 gas nearer the form of uranium for deconversion to a chemically stable form – rotor axis is slightly enriched in U235. We uranium oxide (U3O8) – for long-term storage. enrichment because it is repeat the process over and over again until we achieve the desired levels of U235 enrichment As well as storing tails at our facilities, we easily turned into a gas to meet our customers’ specifications. currently contract a third party to chemically when heated. transform depleted UF6 into U3O8. We are Compressing and cooling the enriched constructing our own Tails Management Facility uranium to convert UF6 to U3O8. The conversion process We feed the enriched uranium under vacuum creates hydrofluoric acid, a valuable chemical (UF6 containing up to 5% of the U235 isotope) used globally by industry. from the centrifuge cascades into a compressor and then into a cooling box containing a cylinder. As it cools, the UF6 vapour solidifies in cylinders. We homogenise the cylinders and conduct quality checks before delivery to customers. We weigh and analyse all cylinders to comply with the accounting and tracking requirements of the European Atomic Energy Community (EURATOM), United States Nuclear Regulatory Commission (USNRC) and the International Atomic Energy Agency (IAEA).

A closer look at the F6 U enrichment process d e h c i r Compressor Cooling box n

E

(with transport container with enriched UF6)

Separation (in centrifuge cascades)

Cooling box Heating UF6 (with transport

(UF6 transport (Pressure D container with e container) reduction) p Compressor depleted UF6) l e t e d U F6

URENCO Sustainability report 2013 09 Sustainability report Our focus areas

At URENCO, our We focus on: commitment to sustainability runs 1 Managing health, safety, through every aspect of safeguards and security our business. We live up to this commitment by page 12 - 15 focusing on five key 2 Minimising our areas of sustainability. environmental impact

page 16 - 19

3 Being considered the supplier of choice

page 20 - 21

4 Developing our position as an employer of choice

page 22 - 25

5 Supporting education, cultural and community projects

page 26 - 29

URENCO 10 Sustainability report 2013 URENCO’s strong brand has been built on a reputation of providing a high quality and responsive service to our customers. Sustainability report Managing health, safety, safeguards and security

This core commitment is underlined by our We aim to continue to raise our standards As with every ultimate goal of zero harm to our employees, of performance through strong leadership, contractors, and the communities in which ongoing awareness and training programmes fundamental aspect of we operate. in order to pursue best practice in all these areas. our business, we look to Sadly, we advise that our 50/50 joint venture organisation ‘Enrichment Technology Two key areas of focus for us are to manage continuously improve Company’ reported that two of their Lost Time Incidents (LTIs) and monitor the employees were tragically involved in a fatal number of sick days across the Group. the ways we manage accident at their Dutch site in 2013. health, safety, As a precautionary measure URENCO immediately initiated a full review of all our safeguards and security critical life safety procedures to ensure each across the Group. was fit for purpose and adhered to rigorously. Our operations are scrutinised and regulated by government authorities. They approve the design and operating principles of our enrichment facilities to verify safety, security, safeguards and protection of the environment.

1 LTI We had 1 LTI in 2013, down from 2 in 2012.

Number of sick days We had an absence rate of 2.2% in 2013 compared to 1.9% in 2012.4

Total number of days No of employees No of absence days worked Absence rate Total Group inc UUSA 1,537 7,162 328,127 2.2% 2013 Total Group exc UUSA 1,180 7,162 240,800 3.0% Total Group inc UUSA 1,436 5,727 296,472 1.9% 2012 Total Group exc UUSA 1,091 5,727 219,087 2.6% Total Group inc UUSA 1,421 7,906 342,557 2.3% 2011 Total Group exc UUSA 1,072 7,412 256,757 2.9%

4 UUSA’s data is defined separately due to the fact that the annual leave structure is different to the rest of Europe, such as the first five days absence is incorporated into annual ‘paid time off’.

URENCO 12 Sustainability report 2013 Our ultimate goal is zero harm to our employees, contractors, and the communities in which we operate. Sustainability report Managing health, safety, safeguards and security

All of our centrifuges are designed to fail-safe Accountability Health in the event of a loss of power, water, control, Health and Safety is a key area of product We place great emphasis on the health and air and other inputs, with no increase in responsibility, as it has a direct affect on general well-being of our 1,500 employees safety risks. customers and external stakeholders. The Director of the Group Business Assurance who work at our locations in the United We place the utmost importance on the safe function oversees URENCO’s performance on Kingdom, the Netherlands, Germany, and the transportation of UF6 at all stages of the product responsibility. USA. This commitment ranges from the enrichment process and only work with necessary precautions and checks that are part specialist audited transport suppliers. Our Group Compliance Function holds Health, of our activities as a uranium enrichment Safety and Environment meetings every three Using industry approved systems, we complete business through to initiatives such as months in addition to regular local updates. regular environmental monitoring exercises at encouraging our employees to walk and cycle Day-to-day accountability is assigned at all our enrichment facilities. The approach is to and from work where possible, making sure enrichment facility level. Every enrichment risk-based, ensuring that ionising radiation is we provide healthy and enjoyable working facility has a Head of Compliance, supported kept As Low As Reasonably Practicable environments and providing support to by an HSE team and working with the Group (ALARP). We experienced no adverse incidents minimise stress at work. Compliance Officer. involving ionising radiation during 2013. Safety Our Executive Team receives regular HSE Employee and Contractor LTIs 2009-2013 reports and the topic is on the agenda at each Safety runs through the core of our business senior management meeting and is reported – it is our number one priority. As with each of Number on at each Board meeting. our five key areas of sustainability, the Group 2013 1 sets the overarching principles and each of our enrichment facilities is responsible for 2012 2 managing safety in line with local, regional and 2011 3 national requirements. Each enrichment facility 2010 11 runs ongoing training programmes, together with comprehensive safety procedures to 2009 16 ensure compliance, embed good behaviours and encourage further improvements. Reinforcing our safety culture Radiological safety Reinforcing our culture of continuous The centrifugal process involves physically improvement across every aspect of safety, separating the lighter isotope of uranium, we have worked hard to develop a culture U235, from the heavier isotope, U238. of zero harm. Such a culture has nurtured an Enriching uranium does not involve changing understanding that it is everyone’s responsibility its chemical characteristics and no additional to prevent injuries and incidents from radiation is created during the process. The happening, demonstrated by the reduction in operational hazards associated with our LTI’s over the last 5 years. Improved safety is not facilities are similar to those of a chemical the only benefit that flows from this approach facility than a nuclear facility. – a strong safety culture helps to improve quality, reputation and ultimately deliver better In the UK, the Health Protection Agency (HPA) business performance. has calculated that on average people are exposed to about 2.7 milliseverts (mSv) of radiation a year from naturally occurring sources in homes and workplaces and medical exposures, including x-rays.* Many people who visit our enrichment facilities for the first time are surprised at how low the levels of radiation involved in uranium enrichment actually are. The average radiation dose an employee at our UK enrichment facility received in 2012** was 0.50 mSv, well below the average calculated by the HPA. * Source: Health Protection Agency ** Latest figures available

URENCO 14 Sustainability report 2013 Committed to international standards Maintaining high safety standards pays Complying with the In the USA, our Nuclear Regulatory dividends for the community Commission Licence requires us to have a highest safety, security robust Corrective Actions Programme in place, Construction work on our Tails ensuring that all safety and quality issues across Management Facility (TMF) at our UK and safeguard a wide area are reported and promptly rectified enrichment facility maintains an exemplary standards. within a culture of continuous improvement. safety record through a programme of In Europe, all our enrichment facilities operate training, auditing and employee management systems accredited to the engagement. We recently passed one international standards EN ISO 14001 million hours on the construction site (environmental) and ISO 9001 (quality). without a Lost Time Incident. As with other safety milestones, we recognised this achievement by donating to local charities Safeguards Security nominated by our workforce. We operate to the highest levels of safety, We take the security of our operations and in doing so we comply with all industry extremely seriously, investing in comprehensive and regulatory standards. Our centrifuge measures to ensure both the physical security Investing in a global solution to report technology and enrichment facilities are of our enrichment facilities and cyber security. events and track actions verified and protected by international This includes providing guidance and help to safeguards. our employees to ensure they understand and To help build on our near miss campaign, are able to maintain the security of information launched in 2012, we are investing in a We play an active role in developing the future regarded as sensitive, from the point of new initiative that will enable all employees of nuclear safeguards with representation at commercial, personnel, security and safeguards to report events and track actions more the International Atomic Energy Agency (IAEA), aspects, in order to prevent competitors or quickly and efficiently. The programme will alongside membership of the European other third parties gaining unauthorised capture event information, track actions, Safeguards Research and Development knowledge. URENCO’s IT team are on hand to produce management reports and help us Association (ESARDA). Our aim is to help mitigate the risk of online security threats, and learn from both adverse and positive ensure that nuclear energy remains a safe, employees are briefed on how to manage events across our business. This will enable secure and reliable energy supply. these risks. our enrichment facilities to manage and In addition, we support the further resolve local issues while drawing on the development of international safeguards by collective experience and know-how of the allowing field trials for new techniques to take Group. In addition, cross-enrichment place at our enrichment facilities. For example, facility reporting will give a clearer picture we recently enabled Euratom, the European of Group performance. Safeguards Authority (ESA), to initiate a field trial to measure UF6 cylinders at our Dutch enrichment facility, in order to test the performance of several advanced safeguard technologies. The trial was witnessed by the IAEA. By trialling these instruments we have the potential to improve the already high levels of efficiency and effectiveness of nuclear safeguards, underlining our commitment to uphold the international safeguard system. We also share our knowledge and expertise on nuclear safeguards to educate new inspectors training at our enrichment facilities.

URENCO Sustainability report 2013 15 Sustainability report Minimising our environmental impact Managing our carbon footprint In 2013 we emitted 279,356.05 tonnes of CO2.

Table of total direct and indirect CO2 emissions 2011-2013

change CO2 (tonnes) 2011 2012 2013 2012-2013 We are committed to total 259,488.30 280,173.40 279,356.05 -0.3% minimising the Carbon dioxide emissions have decreased by 0.3%, despite actual indirect energy having environmental impact increased by over 6%. This is explained by the change in conversion factors supplied by DEFRA, which highlights the general reduction in CO2 emissions from energy sources across all the of our business. countries in which we operate. UUSA’s CO2 emissions have been restated for 2012. Correct figures are used in the table above. For 2013 we have used the latest DEFRA conversion factors across all sites.

Energy management is a key focus of our The low carbon credentials of the nuclear We see public debate and accurate and global operations, as is managing our carbon energy industry transparent communication across all areas of footprint. We are continually looking for Nuclear energy is inherently low carbon, the nuclear industry as an important part of improvements. particularly in terms of relatively low CO2 developing understanding and consensus emissions. Indeed studies show that CO2 around nuclear energy. emissions in the nuclear fuel cycle are between Managing recycling 0.5 and 4% of those from the equivalent Meeting our environmental commitments In 2013, 61% of waste was recycled or reused. coal-fired generating capacity*. Environmental priorities are agreed by the Our total Group capacity of 17,600 (tSW/a) Chief Executive Officer and administered by the fuels 31% of the world’s nuclear installed enrichment facility compliance function. We 2011 2012 2013 capacity, which provides 816 TWh of low monitor key aspects, including energy and 70% 98% 61% carbon electricity. water usage, emissions, biodiversity and regulatory compliance. Full figures are included Supporting a critical part of the energy mix in the performance summary on pages The percentage of waste recycled or reused has We believe nuclear energy is a critical part of 36 to 37. reduced in 2013. This is primarily due to the the energy mix, helping to secure a long-term construction progress of the TMF project, as We work closely with regulators in all low carbon future for the world. less materials were suitable for reuse in markets to ensure we comply fully with comparison to 2012. In this respect we support the European all legal obligations. Commission’s long-term target to reduce carbon emissions. In addition, we support the Emergency planning creation of a new common nuclear energy Working closely with the relevant regulatory framework to enable the European industry to bodies and emergency services, we complete use its experience to help the safe and secure annual emergency planning exercises at all our development of nuclear energy globally. enrichment facilities. These exercises are carefully designed to help us improve our Managing waste to landfill Building further on Europe’s nuclear energy In 2013, 15,569 tonnes of waste went to landfill. readiness to handle a wide variety of external expertise, we also support the creation of a and operational situations that may pose formal European Strategy and Board to lead health, safety and environmental risks in the the promotion of nuclear energy. We believe unlikely event that they should occur. 2011 2012 2013 the focus at a European level should be on 992 1,663 15,569 maintaining the highest safety standards, and extending investment programmes for new, Environmental certification modern nuclear power generation. All our European enrichment facilities have The increase in (non-hazardous) waste to certification to ISO 14001. Also, our facility in landfill in 2013 was primarily due to a number Germany is EMAS (Eco-Management and of large scale projects at our UK enrichment Audit System) validated. Our USA enrichment facility, such as a perimeter fence replacement facility is due to gain ISO 14001 in 2015. In and trench excavation. October 2013 the facility passed a major milestone with the selection of an ISO registrar for obtaining ISO 14001 and ISO 9001. Our Tails Management Facility at our UK site is also due to gain ISO 14001, once operations have begun there in late 2015.

Responsible uranium stewardship We are firmly committed to responsible uranium stewardship, notably through the deconversion, storage and management of uranic materials.

* Source IAEA

URENCO 16 Sustainability report 2013 Regular environmental monitoring takes place across all of our enrichment facilities. Sustainability report Minimising our environmental impact

1 5

Managing our tails by-product Gaining BREEAM certification for our Automatic lighting Through our wholly-owned subsidiary Head Office URENCO ChemPlants Limited (UCP) we Our Dutch enrichment facility is also continue to progress with the construction of When Head Office moved into our new undertaking a trial to save energy with our Tails Management Facility (TMF) at our UK building over two years ago, we achieved a automatic corridor lighting. The expected site. The TMF will enable us to deconvert our BREEAM certification, the world’s foremost return on investment is three years, which is an by-product, tails, from UF6 to U3O8 within the environmental assessment method and rating energy saving of over 100,000 kWh per year. Group and, in turn, produce approximately system for buildings. We must continue to If the trial is successful then the lighting will be 5,000 tonnes per year of hydrogen fluoride work within the guidelines to ensure we retain rolled out on a widerscale. (HF) which is utilised by industry. As a result the certification. Our more recent BREEAM we will be able to manage storage of tails energy rating was “good”. in-house, reduce the quantity of tails we hold In order to achieve this we implemented a 6 on our sites, and generate an additional comprehensive range of energy saving revenue stream. measures – from using energy efficient LED Cutting down on nitrogen deliveries and costs Once the TMF is operational in late 2015, strip lighting throughout to putting heat it will also provide deconversion services to reflective material on windows. A nitrogen padding system at our UK Capenhurst Nuclear Services Limited (CNS), enrichment facility was using excessive further enhancing the way we fulfil our amounts of gaseous Nitrogen (N2). responsibilities and potential to contribute to 2 Decommissioning, modifying and replacing the the wider nuclear industry. system were all considered, but in the end the Ensuring contractors work in a team found a better solution by rethinking the Recycling, decommissioning and managing sustainable way way we operate and maintain the system. As a result, we have saved over 4,552 hm3 uranic materials We have extended this environmental (hundred cubic metres) of N2 in 2013, that’s a Our wholly-owned subsidiary, CNS, formed in commitment to our Head Office contractors, in 70% improvement on 2012. 2012, is located at our UK site. It has been the form of a Contractor Management System, commissioned to provide responsible which ensures that all third parties work in a This environmental enhancement has reduced management of uranic materials and sustainable way, for example by dealing with associated road traffic (delivering nitrogen) by decommissioning activities on behalf of the waste responsibly and having systems in place more than half and made a significant Nuclear Decommissioning Authority (NDA). to prevent pollution. reduction to the energy required to make CNS is committed to being the centre of the N2. excellence for uranium stewardship across URENCO and the wider industry. The creation 3 The European Industrial Gas Association (EIGA) of this centre of excellence provides a safe and (EIGA Position Paper PP-33 – December 2010) secure management of nuclear by-product. notes that each kilogram of nitrogen can take Making good use of excess heat 2,000 kJ of energy*. As deliveries have been At our German enrichment facility we are At our Dutch enrichment facility we have halved from, around 140 in 2012 to 60 in currently building a new storage facility for designed an intelligent centrifuge storage 2013, this demonstrates a substantial deconverted tails (U308). building which redirects waste heat from the energy saving. At our Dutch enrichment facility, we completed enrichment process into the building to heat it the construction of the second phase of our during winter days. Using this excess heat UF6 storage facility. As a result we are able to rather than relying on electrical heating has 7 store all our UF6 in a controlled environment. saved close to 900,000 kWh per year. Replacing boilers We also completed construction of our facility for storing the decommissioned centrifuges 4 We are also undertaking a renewal project at that have been processed by our on-site our UK enrichment facility to find more recycling centre. By automating much of our efficient ways of producing and managing storage operations, we are increasing efficiency Saving energy and money with white roofs heat, for example by replacing boilers. and continuing to improve our existing high In 2013 our Dutch enrichment facility replaced 21,861 litres of fuel oil was saved between levels of security. approximately 3,000 m2 of black roof covering November 2012 and November 2013 by with white roof covering. This simple measure replacing boilers at one of three facilities, Saving energy across the Group keeps heat in during the winter months and which is a 36% saving. Our Group-wide energy savings taskforce out during the summer months. The cost for continues to collect many different energy white covering is higher than for black; saving ideas from around the business. These however it has reduced energy consumption * Source: Parker Balston, include, for example, ensuring that all new for space heating and cooling by 4-6%. The A Sustainable Approach to the Supply of Nitrogen designs have energy efficiency built in from return on investment (ROI) is two years, based the outset. on lower maintenance costs and energy saving, especially for buildings which have air-conditioning.

URENCO 18 Sustainability report 2013 8

Reducing fuel and saving money with Our use of direct energy electric vehicles Group-wide we have increased our use of direct energy by over 2%. At our USA enrichment facility we have replaced 13 petrol-powered utility vehicles with Table for direct energy usage 2011-2013 seven electric vehicles. As a result of having DIRECT energy change fewer, more economically efficient vehicles, we (kWh) 2011 2012 2013 2012-2013 saved approximately 5,750 gallons of fuel in 2012 and an additional 1,750 gallons in 2013. natural gas 19,156,329.50 17,395,235.47 18,419,287.20 6% The United States Environmental Protection fuel from Agency (EPA) state that up to 9 kilos of CO2 is distilled crude oil 9,425,687.72 5,745,510.93 5,293,906.83 -8% produced per gallon of gasoline*. Using this total 28,582,017.22 23,140,746.39 23,713,194.03 2.5% calculation, we have estimated savings to be over 51 tonnes of CO2 in 2012 and over 15 tonnes in 2013. Direct energy has increased by over 2%. This is We are on track to achieve our capacity target due to a 6% increase in natural gas, which is of 18,000 tSW/a by 2015 and in line with an our primary energy source used for heating. In increase in production capacity of 4% there 9 2013 we experienced a particularly cold winter has been an increase in the number of which is the reason for the increase. buildings requiring heating. Working on more environmentally friendly production processes Our Stable Isotopes business is working on a more environmentally friendly way of producing depleted zinc acetate, one of its key products. This process will be optimised to reduce the amount of chemicals and by- Our use of indirect energy product produced. Group-wide, we have increased our use of indirect energy by over 6%.

Table for indirect energy usage 2011-2013

10 INDIRECT energy change (kWh) 2011 2012 2013 2012-2013 Developing environmentally friendly renewable 23,967,751.77 58,523,358.94 94,798,859.08 62% transportation non-renewable 501,711,779.23 512,485,448.76 513,247,408.92 0% We work very closely with our partners to total 525,679,531.00 571,008,807.70 608,046,268.00 6.5% transport materials to and from our enrichment facilities safely and efficiently. The design in recent years of lightweight trailers for France, The 4% increase in production capacity partly reflects the over 6% increase in total for example, has enabled our contractors to indirect energy. transport two cylinders rather than one – halving the number of journeys and so Note: UUSA indirect energy figures for 2012 have been restated. Correct figures are used reducing transport costs, risks and the impact in the table above. on the environment.

* Source: Environmental Protection Agency

URENCO Sustainability report 2013 19 Sustainability report Being considered the supplier of choice

We strive to provide high quality customer Building long-term customer relationships Customers are at service and performance, and to be recognised We have always believed that building as a leader in this area. long-term relationships with our customers is the heart of our at the core of our sustainable business. For us, We carry out customer surveys with key being considered our customers’ supplier of URENCO customers to ensure ongoing business and being choice is the mark of this commitment. customer satisfaction. We track our considered their supplier performance and the quality of our service Our customers choose us for a number of using an independent customer survey to reasons – from our reliability in meeting their of choice is core to ensure we gain a true and credible picture delivery requirements to our desire to respond of how well we are meeting our flexibly to our customers changing needs. our sustainability. customers’ needs. Delivering for our customers – time after time To maintain our market share and position as a leading worldwide supplier of uranium enrichment services, we focus on consistently “URENCO is our most delivering excellent customer service across flexible and easy to deal the Group. The core of this commitment is to deliver on with enriched uranium our promises. Once again we met 100% of our customer delivery commitments this year, product (EUP) supplier as we have every year since starting out more out of the three primary than 40 years ago. producers that we Responding to changing customer requirements contract with.” Our speed of response and flexibility are key elements in our customer offering and they are URENCO customer proving to be particularly valuable in today’s market. We have responded to our customers’ needs – for example by storing feed safely and securely on behalf of our customers and by utilising our technology to generate a greater “As always, thanks amount of uranium feed material. for your usual flexibility and general goodness to work with, and especially the consistency of UF6 arrivals.”

URENCO supply chain partner

URENCO 20 Sustainability report 2013 1

Meeting the needs of medical, industrial Medical and research customers Our Stable Isotopes business in the Netherlands Our medical diagnostic and therapeutic draws on our expertise and capabilities in products help save lives. Over one million centrifuge technology to produce a variety of therapy treatments a year are carried out products for medical, industrial and research around the world using radio isotopes applications. This complements our core focus produced from our enriched stable isotopes. on enriching uranium for nuclear energy – generating revenue for the Group as well as broadening our understanding of the potential 2 of our centrifuge technology. Industrial We focus on developing long-term relationships with our customers in Stable Over the last two years we have worked Isotopes based on mutual commitment and together with one of our customers to trust so we can research and deliver the high optimise the design of a radiation source for quality products they need. non-destructive testing. We continue to develop the diversity of our product portfolio across our medical, industrial and research markets. Our product range 3 includes several dozen isotopes of more than 10 elements and we are carrying out research Research into a number of other isotopes. Since 2011, we have been working closely We are committed to the highest standards of with a group of European scientists to quality and continuous improvement. We meet develop products for fundamental neutrino the strict quality demands of our customers in research. This year we installed a key piece high tech industries. of equipment specifically for this work and made the first product delivery in line with Looking ahead, we are exploring how to the schedule. increase the flexibility of our production capacity so we can quickly respond to changes in market demands and continue to meet the needs of our diverse customers.

URENCO Sustainability report 2013 21 Sustainability report Developing our position as an employer of choice

Measuring performance The system encompasses behavioural Across our industry, we We measure employee performance against a competences which have been identified as range of objectives and competencies, tailored necessary to future success. These want to be recognised to each of our operational sites. competencies have been assigned to jobs across the Group. as a great place to To ensure that each individual is clear on what their objectives are in the coming 12 months The majority of employees participate in an work. and how they contribute to the Group’s overall annual appraisal, where their performance success, we operate a Performance is evaluated. Management System. There has been a 1% increase in employees having formal appraisals from 2012-2013. Surveying our employees Every two years we run a Group-wide employee survey to independently monitor Overall % employees having employee satisfaction. The results are shared formal appraisal 2011 2012 2013 with all employees, with each enrichment 81 81 82 6 facility and office taking responsibility to initiate any required action plan. We completed our 6 The Group-wide Performance Management System is due to be rolled out at our German enrichment facility during 2014. third Group-wide employee survey in 2013. The response rate was 89%, an improvement over the 2011 rate of 86.2%. The general satisfaction – the sense of well-being our employees gain from their work – remained at 8, well above the external benchmark of 6.6.5 There have been a number of improved scores in areas such as ‘Satisfaction and Vitality’ which Monitoring employee turnover was well above the benchmark. Efficiency as as To maintain an up-to-date perspective on the a theme increased overall across the Group, satisfaction levels of our employees, we however the measure of individual efficiency is monitor employee turnover. notably lower for some sites. This can indicate a general frustration in ability to work % of employees leaving by location efficiently. On a Group-wide level the area of efficiency will be investigated and reported to 2011 2012 2013 the Joint Board. GROUP 10.2 7.2 9.6 UUK* 6.5 5.3 11.2 5 The survey was carried out externally by Effectory International – specialists in employee surveys. UNL 4.8 3.1 2.7 This survey approaches a number of businesses across the globe. UD 2.2 3.7 1.5 UUSA** 23.8 13.9 19.0 UCP 14.3 0 2.5 CNS*** – – 22.2 HO 10.3 11.0 8.8

* UUK’s increased turnover was due to number of employees opting for voluntary redundancy in 2013. ** UUSA’s increased turnover was primarily due to the temporary nature of the internship programme. *** As part of the transfer from to CNS we had a number of employees who opted for voluntary redundancy and left progressively throughout 2013, which accounts for heightened levels.

URENCO 22 Sustainability report 2013 We aim to provide a workplace where employees are inspired and challenged. Sustainability report Developing our position as an employer of choice

Striving to inspire and challenge Cultivating good employee relations The skills and expertise of our people are core We respect and promote our employees’ rights strategic strengths for our Company. We are to freedom of association and collective proud to have an immensely capable and bargaining. Active works councils are in place engaged workforce and we strive to inspire in Germany and the Netherlands. In the UK a and challenge our employees, to manage their Company Consultation Forum includes performance effectively and fairly, and employee representatives. Members of trade recognise their achievements. unions, works councils and other employee representatives from each site also attend a Creating a great place to work European Forum every year, during which they As a fundamental part of being an employer meet the CEO and have the opportunity to of choice, we aim to provide a workplace discuss our business plan and matters of a where employees are inspired and challenged Group-wide interest. and where individual performance is effectively managed. Upholding human rights As a responsible business and employer, we The foundation of our commitment to creating uphold human rights in our decision-making a positive workplace is, at a very minimum, including supplier and contractor selection compliance with all employment regulations processes. relating to work practices, health and safety, and human rights. Employment practices are Throughout the workplace we are committed managed by local HR teams. to non-discrimination and would treat any discrimination incident seriously, escalating any Training and development case to the relevant management level. We invest a great deal in developing the skills Comprehensive complaints and grievance and potential of our people. At our USA site, policies are also in place for all employees. for example, we have introduced the ‘URENCO University,’ an internal resource for every Anti-bribery and corruption employee to create a better understanding of A roadshow took place in 2013 across all sites the enrichment process. to provide training to all employees on our anti-bribery and corruption policy. Across URENCO each site runs a Management Development and Leadership Programme At subsequent intervals, further awareness is designed to develop skills and capabilities. raised. New recruits are made aware of policies and procedures to follow. The performance competencies, as previously discussed, are an effective way for employees to determine non-technical training and development to improve performance in current roles and also prepare for future roles. They are used to help target development and succession planning.

Attracting and training new talent We focus on bringing new talent into our business in a number of ways, including apprenticeships. Our UK site recruited eight apprentices this year. URENCO UK and URENCO ChemPlants are currently running a joint apprenticeship scheme. We support each of our apprentice’s professional and technical development through qualifications and mentoring. During their apprenticeship they also develop the attitudes and behaviours that reflect our values and are essential for the safe and efficient operation of our enrichment facilities.

URENCO 24 Sustainability report 2013 Grievance procedure All new employees receive this information as Receiving an award for best employer All employees have a grievance procedure part of their induction to URENCO. We are which is open to them. There is a mechanism committed to detecting and avoiding corruption URENCO Netherlands won the Best to deal with genuine grievances and at all levels and adopt a zero-tolerance approach Employer 2013 award, in the category complaints any employee may have regarding to bribery and corruption. To assist this, a ‘Organisations with fewer than 1,000 terms of employment, alleged unfair process is in place to ensure that all gifts are employees’, in an annual survey by treatment, working conditions and procedures declared. An independent panel conducts research companies Effectory and at each site. periodic reviews of all such data. Intermediair. Each year, over 200,000 employees are surveyed on such key categories as enthusiasm, commitment Following clear codes of conduct Creating one URENCO and satisfaction. Through comprehensive induction processes, Running throughout our focus on being an all URENCO employees are made aware of the employee of choice is our ongoing commitment Group’s expected behaviours. Our values of to create one URENCO – four enrichment Safety, Flexibility, Development, Integrity and facilities and 1,500 dedicated highly skilled Improving working conditions Profitability act as a benchmark for all individuals with the clear objective of providing employees and these values are supported by excellence in customer service. Our Stable Isotopes business completed the application of Group-wide behavioural the upgrade and expansion of its competencies, assigned to every job. laboratory in 2013. As a result it has significantly improved working conditions, We have made all our employees aware of our created more space to develop its range of anti-bribery and corruption policy introduced in products and improved the energy 2010, including the consequences of its efficiency of its site. With this greater implementation and key requirements. capacity and flexibility, the business can not only increase its range of products in response to customer needs but also improve operating efficiency.

Winning an award for internal communications In 2013 URENCO won a PRCA DARE Table of full time employees by location award for Internal Communications, following the appointment of a 2011 2012 2013 single Group-wide travel agent and UUK 357 346 314 revised procedures. UNL 230 243 246 The campaign stemmed from a Group- wide initiative to unify our corporate UD 176 253 254 culture and reinforce the One URENCO UUSA 344 345 357 ethos. Having a single travel provider and UCP 21 36 81 revised procedures has reduced travel costs as well as improved efficiency throughout CNS – – 61 the business. Since the launch, the HO 156 154 153 transition to online bookings at our UK GROUP TOTAL 1,284 1,377 1,466 enrichment facility has been greater than 75%, with similar figures achieved Group-wide. This is excellent considering URENCO had no online bookings previously. The high profile nature of this campaign enabled a seamless transition and good internal employee engagement.

URENCO Sustainability report 2013 25 Sustainability report Being truly engaged with the communities Increasing public understanding we live and work in is critical to our business. We are keen to increase the public’s It is key to our reputation, our operations and understanding of the nuclear industry and the Supporting education, the future development of our business key role it plays in meeting the world’s growing and industry. need for reliable low carbon energy. We cultural and proactively support our nuclear industry peers Through our community and education in the provision of education and information community projects programmes we endeavour to nurture an for a wide variety of stakeholder audiences. interest in science for primary school children During 2013 we launched the ‘Powerful Facts’ and take the opportunity to explain our campaign, which communicated the key business and industry to young people. benefits of the nuclear industry to a wider We are proud to help the industry continue to audience. The success of this campaign was We believe making a invest in advancing its technology through our reflected in its shortlisting for the Public support of research and development. Information Materials Exchange (PIME) award for Communications Excellence. real contribution to the Our aim is to be considered a good corporate citizen, due to the way we actively and communities we live Encouraging the future generation of effectively support education, cultural and talent community projects. and work in is We are also keen to encourage the future Our key areas of focus include: generation of talent, to ensure that we and fundamental to being a other businesses in the industry can be good corporate citizen. Nurturing an interest in science through confident of having enough good people to the delivery of education programmes sustain our success going forward. To date, more than 37,000 pupils have To encourage young people into our industry, participated in our ‘Richie’ science workshops. we support science and education initiatives in the local communities in which we operate and Providing transparent, honest are also closely involved with universities and communication to all key stakeholders international science education programmes. We engage with a wide group of stakeholders on a regular basis across all Enriching young people’s experience of We recognise the our operational sites. science importance of building Regular meetings take place at each site with Our award winning science ambassador, local stakeholder groups to provide an update ‘Richie,’ is a figurehead for our educational strong links with current on business development, operational programme, particularly via social media and performance and provide an opportunity for the web, to help encourage children to take an and future generations two-way dialogue between URENCO and the interest in science. Since his introduction in local community. We provide open and 2006, Richie has acquired his own Facebook and with local transparent communications supporting our profile, interactive learning website and app. long-term aim to be seen as a good corporate He also features in an expanding suite of communities. This is a citizen and as an asset to the community. learning materials and frequently attends educational fairs and other events in person. fundamental part of Local communities close to our enrichment facilities have proved to be key advocates of Through our ‘Richie’, science workshops, we being a leader in our our Company and they are kept fully informed encourage young people to experience and of the activities taking place at our sites. We learn about science in a fun and interactive industry and a core monitor and review all stakeholder way. The workshops, which are supported by engagements, allowing us to address any URENCO employee volunteers, bring the aspect of our corporate concerns that may be raised. science that supports our operations alive through a series of practical experiments. responsibility. Our donations and sponsorship policy, guides our support of local community projects in The success of the initiative has allowed us to areas of education, healthy living, environment share the ‘Richie’ science workshops with our and culture. We continue to look at ways we industry peers, enabling a greater number of communicate with all our stakeholders, for pupils to understand the enrichment process example through the URENCO Television and how this links into nuclear energy and the channel on our website and the virtual tour for wider concepts of energy and electricity. The people who cannot visit our enrichment programme achieved a ‘Gold’ recognition at facilities in person. the Chartered Institute of Public Relations Pride Awards for Communication in 2012.

We have developed a partnership with the British Science Association who will incorporate the Richie school science workshops as a key element of their current CREST awards. CREST is a UK award scheme recognising success, building skills and demonstrating personal achievement in STEM (science, technology, engineering and maths) project work.

URENCO 26 Sustainability report 2013 Through our education programmes we endeavour to nurture an interest in science for the younger generation. Sustainability report Supporting education, cultural and community projects

“URENCO have worked Forging strong and extensive connections Taking the lead in community-wide with universities sustainability with FC Epe for a long Our extensive connections with universities across the Group include a research In Almelo, we were a founder member of time and thanks to their programme at Oxford University and lecturing Duurzaam Netwerk Almelo (DNA), a programmes at Manchester and Salford community-wide sustainability network of generous financial Universities. We also support the World local businesses from many different sectors. Nuclear Association’s University initiative. A URENCO employee is the chairman of this support, we have been Our enrichment facility in the Netherlands is group, which promotes various sustainability a key supporter of research at the Technical initiatives in and around the area. able to organise a University of Delft and in Germany we have multitude of activities a partnership with research university, RWTH Aachen. We also offer annual scholarships at Supporting students New Mexico Junior College, USA, for students and events for children.’’ pursuing an Associate of Applied Science in Together with universities and other Energy Technology. companies in the industry, our Stable Josef Brefeld – Isotopes business has been working on a FC Epe Football Club, Germany Conducting tours of our facilities European project to enable students to carry We are able to improve understanding of our out research into medical radio isotopes. We business through tours of our enrichment enrolled the first students this year and they facilities which enable visitors to experience visited our facility to learn firsthand how we firsthand what we do and how we do it, the carry out R&D, how our material is used as a “URENCO is an benefits of nuclear energy and our role of precursor in the production of medical radio uranium enrichment. Throughout 2013, we isotopes and how to choose the most important and valued hosted visits from local interest and community appropriate isotope for different groups, industry peers and customers. medical applications. employer in the city of For those who cannot visit personally, we have Almelo and beyond invested in creating an online virtual tour on our website. Volunteering in the local community with an excellent record. Employees at our German enrichment Investing in local communities and cultures facility volunteered in the local community It contributes Our investment in local culture and of Gronau, Germany at a workshop for substantially through communities takes many forms, with the people with disabilities. Our employees emphasis on our different businesses taking carried out practical activities to help with the lead in forging strong local links the maintenance at the facility. personnel and financial and making sustainable contributions to support to cultural, their communities. We support local communities through educational and donations focused on four areas: education, environment, healthy living and culture. environmental initiatives These areas guide our decision making and ensure we reflect our core values in the in the Almelo region. donations we make. The prestigious reward We also actively encourage our employees to become involved in supporting and last year for contributing to their own communities. In the USA for example, we consistently give support Best Dutch Employer to the leading charity, United Way, in our area. is well deserved.” Each year, volunteer employees also renovate the homes of local people – making genuinely positive long-lasting differences to local lives Mrs Jon Hermans-Vloedbeld – and communities. To further support these Mayor of the City of Almelo activities we run a number of Group campaigns, including the Active in the Community award at Head Office for employees who are involved in charitable or community activities outside of the workplace.

URENCO 28 Sustainability report 2013 URENCO USA employees made repairs and modifications to the homes of senior citizens and individuals with disabilities. A total of 22 homes were selected for repairs. Sustainability report Engaging with our stakeholders

We are committed to Customers Students engaging with all our How we engage How we engage • An Ipsos MORI survey every 3-4 years to • School science workshops stakeholders to support assess customer satisfaction; the next survey • Science day events will take place in late 2014 the long-term • Richie science ambassador with a dedicated • Opt-in customer alert system and use of website and DVD issued on request development and social media for news and corporate updates • Apprentice educational support and training success of our business • Regular ongoing contact with each of our customers • Educational sponsorship and support and the nuclear power • User-friendly website Achievements in 2013 • Site visits at all our enrichment facilities industry as a whole. • Launched new ‘Learn with Richie’ website Achievements in 2013 • Enhanced Richie DVD • Further enhanced our website • School science workshops hosted regularly by URENCO enrichment facilities • All deliveries to time and quality • Educational support for apprentices and Plans for 2014 interns across all facilities • Continued regular engagement with all • Facility visit for students at the World customers Nuclear University • Degree course placements for university Investors students and local school one-week work experience schemes How we engage • Shareholders appoint Directors to the Board • Richie’s World of Adventure app and game

• Shareholder working groups Plans for 2014 • Investor web pages • Richie Workshop DVD • Investor presentations • CREST Star Programme with the • Full year results webcast British Science Association • Opt-in investor alert system and use of social • Lead sponsor of Big Bang Science Fair media for investor updates • Digital version of annual report and accounts

Achievements in 2013 • Continued to engage with investors via social media channels

Plans for 2014 • Continued regular engagement with all investors • Investor relations presentation • Webcast of full year results • Refresh of investor pages on our website

URENCO 30 Sustainability report 2013 Local community Employees Governments and supra- How we engage How we engage national organisations • Local liaison dialogue • Group-wide employee survey carried out every two years; the most recent survey was How we engage • Practical and financial support for in 2013 • One-to-one meetings community initiatives • Quarterly ‘About U’ magazines across • Structured communication through • Tours of our enrichment facilities the Group URENCO’s Joint Committee • User-friendly website • Info screens at all enrichment facilities • Enrichment facility visits from key officials

Achievements in 2013 • European Works Council for employees to We are members of the following communicate with the CEO organisations: • Stakeholder dialogue sessions to update and inform on key initiatives at facilities • Intranet portal • European Nuclear Society • Community support initiatives • European Safeguards Research and Achievements in 2013 Development Association • Charitable donations and sponsorships • Third Group-wide employee survey • Foratom • Representation on local committees • Continuing development of intranet site • Nuclear Industry Association • Increased use of social media to • Continued dialogue with European engage in two-way dialogue with our • NucNet works councils local communities • World Nuclear Association • Further upgrades to the intranet to • Virtual tour of our enrichment facilities enable easier collaborative working and • World Nuclear Fuel Market • Volunteering in the local community information sharing • World Nuclear Transport Institute • Updated Values campaign Plans for 2014 • World Institute of Nuclear Security • Family Science Days at our enrichment • Continuing to engage with local facilities to communicate with employee communities via social media channels Achievements in 2013 family members • Visits to EU MEP to highlight the role of • Engaging with charities and • Science workshop volunteering nuclear power in the future energy mix to fundraising initiatives Members of Parliament • Continuing to volunteer in local community Plans for 2014 • UK, EU and US consultations to encourage • Group-wide safety campaign support and investment in nuclear • Continued science workshop volunteering • Further information and education on the nuclear industry through • Group-wide team building event external communications • Each facility hosted key visits from governmental representatives and dignitaries for tours and information • Key exhibitions and trade visits to new markets • Royal visit to Almelo and the opening of a new cascade hall

Plans for 2014 • Facility visits to continue • Presence at key exhibitions and visits to new markets • Continuing dialogue with key opinion formers in the EU and USA to encourage further investment in nuclear • Exhibiting and co-organising the 2014 Nuclear Industry Summit in Amsterdam

URENCO Sustainability report 2013 31 Sustainability report Managing sustainability

They also monitor and inspect them to check We ensure robust Ensuring robust compliance with all relevant legislation. We work closely with our regulators and report to governance throughout governance them on an ongoing basis. URENCO in order to The Sustainability Committee Informing and involving employees comply with our legal In December 2013 the Board approved the URENCO’s Chief Executive Officer (CEO) and creation of a Sustainability Committee, at the Managing Directors of all enrichment obligations in all our Board level, with strong involvement of the facilities hold regular meetings with employees Managing Directors of all facilities, to further to provide updates on developments in the markets and to meet enhance the way we manage sustainability Group. In addition, the CEO is invited to an the high standards we across the Group. The Sustainability Committee annual forum of employee-nominated held its first meeting on the 5 March 2014. The representatives from across the Group who are set ourselves as a Committee will focus on reviewing and driving brought together to discuss business matters. improvements across core areas, including During 2013, no issues of concern were raised safety, environmental impacts, social by employees in this area. responsible long-term performance and sustainability reporting. business in a Regular Committee meetings are planned to take place at each of URENCO’s enrichment Reporting on our financial performance vital industry. facilities, giving Committee members the and economic impact opportunity to see firsthand how we are Our 2013 annual report and accounts provides meeting our sustainability commitments. an overview of URENCO’s business, economic performance and market presence. You can In addition, the Sustainability Committee will find more details on pages 1-37 of our 2013 review all processes, procedures and associated annual report and accounts. policies with a view to align these with our commitment to continuous improvement We set out the Group’s financial goals in our across the business. annual strategic document, the Business Plan, the details of which are presented to all The Joint Committee employees through a roadshow led by the CEO and Chief Financial Officer (CFO). In addition to the Board and our shareholders, URENCO is also accountable to a Joint We report on economic impact through the Committee of representatives from the British, regular community liaison meeting. Dutch and German governments. The Joint Committee supervises URENCO regarding Further information non-proliferation. You can find more details on our governance structure and process in pages 38-93 of the The Remuneration and Appointments 2013 annual report and accounts. Committee The Remuneration and Appointments Committee is a committee of the Board of Directors of URENCO Limited and its key responsibilities are: the selection of the Chairman,Chief Executive Officer, Chief Financial Officer; the remuneration of Executive and Non-Executive Directors of the Company; Succession Planning; the appointment of Independent Directors.

Working with our regulators In each of the countries where we operate, government authorities regulate and approve the design and operating principles of our facilities to ensure safety and security.

URENCO 32 Sustainability report 2013 Directors of all sites hold regular meetings with employees to provide updates on developments across the Group. Sustainability report Reporting parameters

The reporting period and cycle Following GRI guidelines We have followed a set This report is a review of the URENCO Group’s We have published a sustainability report corporate sustainability activities during 2013. according to the Global Reporting Index (GRI) of reporting parameters All data covers the calendar year 2013 unless guidelines since 2006. In writing successive to give stakeholders a otherwise stated. Where data from outside sustainability reports, we have looked to the 2013 is presented, it is to provide context for GRI framework to expand the scope of our clear and the Group’s operations or achievements. reporting over time. Applying the GRI principles to this report, it has comprehensive The scope of the report been independently verified to meet the overview of our The data and information contained in this requirements at level B. report relate to URENCO Ltd and its wholly- sustainability in line with owned subsidiaries. Data and information Measuring data and carrying out internal relating to Enrichment Technology Company audits (ETC) are not included in this report unless best practice on We have collated technical data for this report specifically referenced. Owned in equal share across the URENCO Group, using relevant by URENCO and Areva, ETC is a joint venture sustainability reporting. regulatory guidelines. URENCO’s operations company with the exclusive responsibility of adhere to the regulatory requirements of the developing URENCO’s centrifuge enrichment nuclear industry in each operational country technology and manufacturing centrifuges. and uphold the strict safeguards, security and non-proliferation agreements that are in place The boundary and limitations of the report internationally. The URENCO operating Data in this report has been collected from environment is audited, ensuring a high degree URENCO’s operations as listed above. of data accuracy. We also carry out internal audits on technical data and adherence to GRI The process for defining the content of the principles within this report. report There are some instances where we have been We have defined the content of the report able to determine a greater degree of accuracy through research with key stakeholder groups over 2012 data compared to that reported in in order to gain their feedback on requirements the sustainability report for 2012. These figures and preferences. Data is provided by the Group have been restated where applicable. Appliance function and externally assured. A Sustainability Working Group, consisting of a cross-section of managers from key functions, is involved in the writing of the report. The report is approved by members of the Sustainability Committee prior to submission. Content of future reports will be determined by the Sustainability Committee who will prioritise key topics addressing all our audiences. No material structural changes or business events have occurred that might serve to alter any of the disclosures contained in the Sustainability Report.

URENCO 34 Sustainability report 2013 Sustainability report Assurance statement

We are committed Independent Assurance Statement to improving our Our scope We have undertaken independent assurance of the URENCO’s Sustainability Report 2013 as sustainability reporting published on http://www.urenco.com for the following areas: year on year. In line with • Selected sustainability performance data for the year ended 31 December 2013, as published in the Sustainability Report 2013 and Global Reporting Initiative Online Table. These data this commitment, we included the following key performance indicators at a consolidated Group level: have asked outside • Number of lost time incidents • Waste (hazardous and non-hazardous) experts to provide the • Water (usage and discharges) following assurance • Air emissions statement on our 2013 • Direct energy usage • Indirect energy usage sustainability report. • CO2 emissions from direct and indirect energy consumption • URENCO’s self-declared Global Reporting Initiative (GRI) application level of B+ of the GRI “G3.1” Guidelines as published in the GRI index section. Information on ‘Our approach’, the ‘Basis of our opinion’ and ‘Responsibilities’, together with additional detailed ‘Key observations and recommendations’ can be found in the full length version of the Statement on www.urenco.com.

Our conclusions On the basis of the work undertaken, nothing came to our attention to suggest that: • the sustainability performance data for the year ended 31 December 2013, as defined in ‘Our scope’ above, has not been prepared in all material respects with the Reporting Criteria; and • URENCO’s self-declared Global Reporting Initiative (GRI) application level of B+ of the GRI “G3” Guidelines as published in the GRI index section is not fairly stated in all material respects. For the areas of data described in ‘Our Scope’, the errors and omissions we found in site level data were corrected prior to inclusion in the Report. However on the basis of the work we undertook, we did not find evidence to suggest errors in data reported from these sites that would materially affect the consolidated Group data. DNV Two Tomorrows Limited London 21 March 2014

Olivia Bertham Director

URENCO Sustainability report 2013 35 Measures 2011 2012 2013

Sustainability report Employee and contractor LTIs UUK 1 1 0 UNL 0 0 0 Summarising our UD 1 0 0 performance UCP 0 0 0 USA 0 0 0 HO 0 0 0 Contractors 2 1 1 Employee LTIs – – 0 Direct energy consumption Fuel from distilled crude oil 9,425,687.72 5,745,510.93 5,293,906.83 We have summarised by primary energy source (kWh) Natural gas 19,156,329.50 17,395,235.47 18,419,287.20 Indirect energy consumption Renewable source 23,967,751.77 58,523,358.94 94,798,859.08 our performance on by primary energy source (kWh) Non-renewable source 501,711,779.23 512,485,448.76 513,247,408.92 sustainability in line Total direct and indirect CO2 259,488.30 280,173.40 279,356.05 emissions (tonnes) with the principles % of full time employees by location Group 90 96 96 and framework of the URENCO Deutschland 66 93 93 Global Reporting URENCO Nederland 92 93 93 URENCO USA 99 100 100 Initiative (GRI). URENCO UK 97 97 97 You can read our URENCO ChemPlants 100 100 100 CNS – – 97 GRI checklist online at Head office 95 94 93 www.urenco.com % of employees leaving by location Group 10.2 7.2 9.6 URENCO Deutschland 2.2 3.7 1.5 URENCO Nederland 4.8 3.1 2.7 URENCO USA 23.8 13.9 19.0 URENCO UK 6.5 5.3 11.2 URENCO ChemPlants 14.3 0 2.5 CNS – – 22.2 Head office 10.3 11.0 8.8 % of employees leaving by age Under 20 31.6 18.2 50.0 20-29 18.9 11.8 16.3 30-39 6.9 6.8 6.0 40-49 7.6 4.0 6.4 50-59 5.8 5.6 8.0 60+ 25.7 15.6 21.2 Total water withdrawal by source (m3) Total domestic water used 306,336 332,010 324,186 Total river water used 288,689 263,925 284,825 Total water used 595,025 595,935 609,011 Emissions of ozone-depleting substances by weight 0 0 0 Total water discharge To water courses (UUK only) 64,135 76,848 76,600 by quality and destination (m3) 7 To sewers (all sites) 89,267 88,479 89,228 Total 153,402 165,326 165,828

*** FX rate used: 1.2004 (31/12/2013) 7 A significant amount of water discharge is estimated. 8 This minimum wage has been advised by the German government, but won’t be fully realised until 2015. Source: BNP PARIBAS (Corporate & Investment Banking)

URENCO 36 Sustainability report 2013 Measures 2011 2012 2013

Employee and contractor LTIs UUK 1 1 0 UNL 0 0 0 UD 1 0 0 UCP 0 0 0 USA 0 0 0 HO 0 0 0 Contractors 2 1 1 Employee LTIs – – 0 Direct energy consumption Fuel from distilled crude oil 9,425,687.72 5,745,510.93 5,293,906.83 by primary energy source (kWh) Natural gas 19,156,329.50 17,395,235.47 18,419,287.20 Indirect energy consumption Renewable source 23,967,751.77 58,523,358.94 94,798,859.08 by primary energy source (kWh) Non-renewable source 501,711,779.23 512,485,448.76 513,247,408.92 Total direct and indirect CO2 259,488.30 280,173.40 279,356.05 emissions (tonnes) % of full time employees by location Group 90 96 96 URENCO Deutschland 66 93 93 URENCO Nederland 92 93 93 URENCO USA 99 100 100 URENCO UK 97 97 97 URENCO ChemPlants 100 100 100 CNS – – 97 Head office 95 94 93 % of employees leaving by location Group 10.2 7.2 9.6 URENCO Deutschland 2.2 3.7 1.5 URENCO Nederland 4.8 3.1 2.7 URENCO USA 23.8 13.9 19.0 URENCO UK 6.5 5.3 11.2 URENCO ChemPlants 14.3 0 2.5 CNS – – 22.2 Head office 10.3 11.0 8.8 % of employees leaving by age Under 20 31.6 18.2 50.0 20-29 18.9 11.8 16.3 30-39 6.9 6.8 6.0 40-49 7.6 4.0 6.4 50-59 5.8 5.6 8.0 60+ 25.7 15.6 21.2 Total water withdrawal by source (m3) Total domestic water used 306,336 332,010 324,186 Total river water used 288,689 263,925 284,825 Total water used 595,025 595,935 609,011 Emissions of ozone-depleting substances by weight 0 0 0 Total water discharge To water courses (UUK only) 64,135 76,848 76,600 by quality and destination (m3) 7 To sewers (all sites) 89,267 88,479 89,228 Total 153,402 165,326 165,828

Wage data Waste data Country minimum wage €/Hour*** Tonnes of waste England 6.03 2012 2013 Germany 8 8.50 Total hazardous – Composting 0 0 Netherlands 8.25 Total hazardous – Reuse 0 0 USA 6.63 Total hazardous – Recycled 12 534 Total hazardous – Recovery 29 21 Total hazardous – Incineration 4 2 Site minimum wage Total hazardous – Landfill 2 16 UUK 16.34 Sub Total 47 573 UCP 17.98 Head Office 14.47 Total non-hazardous – Composting 33 12 UD 14.84 Total non-hazardous – Reuse 90,430 22,898 UNL 11.72 Total non-hazardous – Recycled 1,071 1,079 USA 16.26 Total non-hazardous – Recovery 0 1 CNS 16.34 Total non-hazardous – Incineration 77 70 Total non-hazardous – Landfill 1,661 15,553 Sub Total 93,272 39,613 Total 93,319 40,186

URENCO Sustainability report 2013 37 Sustainability report Glossary of terms

Building Research Establishment EUP Environmental Assessment Methodology Enriched Uranium Product – (BREEAM) i.e. UF6 enriched, typically to between The world’s foremost environmental 3% and 5% U235 content. assessment method and rating system for buildings. Feed Natural or reprocessed uranium, converted to Cascade UF6, and fed into the cascades for enrichment. An arrangement of centrifuges connected in parallel and in series. In a uranium enrichment Global Reporting Initiative (GRI) facility, several cascades are operated in parallel The reporting framework which to form an operational unit producing one provides guidance on sustainability U235 assay. Various operational units form one performance reporting. enrichment facility.

International Atomic Energy Agency (IAEA) CNS The world’s central intergovernmental forum Capenhurst Nuclear Services Limited. A wholly for scientific and technical co-operation in the owned subsidiary of URENCO, CNS is the nuclear field. centre of excellence in the management of uranic materials, decommissioning and recycling. This company has taken responsibility Neutrino for handling uranic materials on behalf of the An elementary particle which holds no Nuclear Decommissioning Authority at the electrical charge. Capenhurst enrichment facility in the UK. Order book CREST Award Contracted and agreed business. A UK award scheme recognising success, building skills and demonstrating personal Separative Work Unit (SWU) achievement in STEM (science, technology, engineering and maths) project work. The standard measure of the effort required to increase the concentration of U235 so that there is enough to fuel a nuclear reactor. Deconversion The capacity of an enrichment facility is The process of removing the fluorine expressed in Tonnes of Separative Work component from uranium hexafluoride (UF6) per annum (tSW/a). to make stable uranium oxide (U3O8) and to recycle Hydrofluoric acid (HF). URENCO has Stable Isotopes chosen to use U3O8 as the long-term retrievable storage form of uranium. Our Stable Isotopes business uses our centrifuge technology to produce a variety of other products for medical, industrial and Department for Environment, Food & Rural research applications. Affairs (DEFRA) The UK government department responsible Tails (Depleted UF6) for policy and regulations on the environment, food and rural affairs. Uranium hexafluoride that contains a lower concentration than the natural concentration (0.711%) of U235. Enrichment The step taken in the nuclear fuel cycle that Tails Management Facility (TMF) increases the concentration of U235, relative to U238, in order to make uranium usable as a The facility managed by URENCO ChemPlants fuel for light water nuclear reactors. that will manage the deconversion of tails to stable uranium oxide (U3O8). Currently under construction at URENCO’s UK enrichment ETC facility in Capenhurst, UK, it will consist of a Enrichment Technology Company Limited has number of associated storage, maintenance the exclusive responsibility of developing and and residue processing facilities to support manufacturing URENCO’s centrifuge URENCO’s long-term strategy for the enrichment technology. management of tails.

URENCO 38 Sustainability report 2013 Treaty of Almelo The Treaty signed in 1970 by the governments of Germany, the Netherlands and the UK and by which URENCO was founded.

Uranium A fairly abundant metallic element. Approximately 993 of every 1,000 uranium atoms are U238. The remaining seven atoms are U235 (0.711%), which is used in today’s nuclear power stations to generate energy by fission.

Uranium Hexafluoride (UF6) Uranium ore is turned into this chemical compound, containing uranium and fluorine, so it can be used in the gas centrifuge enrichment process. UF6 is solid when stored and turned into a gas at the beginning of the enrichment process.

U235 The fissionable uranium isotope found in natural uranium.

U238 The non-fissionable uranium isotope that makes up most of natural uranium.

U235 assay The concentration of U235 expressed by percentage of weight in uranium, in a given quantity of uranium ore, uranium hexafluoride or uranium metal. An assay of 3 to 5% U235 is required for most nuclear power plants.

URENCO ChemPlants Limited (UCP) A subsidiary company of URENCO responsible for the construction and operation of the Tails Management Facility at URENCO’s enrichment facility at Capenhurst, UK. Further information UUK For more information on sustainability at URENCO, please contact: URENCO UK

UD Jayne Hallett URENCO Deutschland Director of Corporate Communications URENCO Limited UNL URENCO Court URENCO Nederland Sefton Park UUSA Bells Hill URENCO USA Stoke Poges Buckinghamshire Head Office SL2 4JS URENCO headquarters UK [email protected]

URENCO Sustainability report 2013 39 Sustainability report Notes www.urenco.com URENCO Limited URENCO Court Sefton Park Bells Hill Stoke Poges Buckinghamshire SL2 4JS, UK

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