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Making More from Waste MAKING MORE Shanks Group plc FROM WASTE Corporate Responsibility Report 2014 Overview Shanks Group plc Corporate Responsibility Report 2014 2 Overview In this report Shanks Group Overview Case studies plc is a leading Highlighting our vision, our Clearing the air at Improving site An electronic strategy and our progress our ATM facility traffic safety nose for odours international towards our targets Degassing ships at ATM to Tackling the highest risk The hi-tech way of detecting reduce emissions p11 of serious traffic accidents odour and improving sustainable Key facts and figures p3 on site p23 community relations p32 Our vision p4 ‘Reverse osmosis’ waste reduces emissions Above and beyond Managing an Our strategy p5 Rewarding and celebrating emergency and in Canada employees who go above management Group Chief Improving emissions control and beyond p27 getting back to Executive’s statement p6 to reduce odour p12 business as normal business A better approach to Making music from Getting back to business waste managment p8 Switched on to after a disaster through recycled waste good management p36 We meet the growing need Progress towards lock-off safety Making more from waste with to manage waste without our targets p9 Communicating the safety a musical twist p31 message on lock-off p22 damaging the environment Sections 1 2 3 4 5 Sustainability Health and Our Community Sustainable and the safety people relations management environment systems How we are contributing to Thanks to safety We are giving our people What we are doing to How our management sustainability, engaging initiatives throughout the tools, training and engage, inform and educate systems are helping us with stakeholders and Shanks, we have achieved support they need to our local communities and to meet our corporate protecting the environment a significant reduction perform to the highest ensure we work in harmony responsibility objectives across our operations p10 in our accident rate p19 possible standards p24 with them p28 p33 Front cover: A truck from our Solid Waste Division transports waste in the Netherlands Overview Shanks Group plc Corporate Responsibility Report 2014 3 Overview Key facts and figures Revenue by division3 £m Recycling Environment Health and safety Financial performance Overall recycling and recovery rate Total potential avoided carbon emissions Reduction in reportable accident rate Chart 1: Revenue by division 23% £m Total 50% £636m 6% 23% 82% 1.26m 19 % 21% tonnes CO2 equivalent Complaints received from our Total 50% 6% Total waste handled Total energy generated neighbours reduced by £636m Solid Waste Benelux 21% Hazardous Waste Organics 8.08m 10 6. 4 33% UK Municipal tonnes ‘000 MWh Total materials recovered Waste derived fuels produced and sold Total employees Solid Waste Benelux Hazardous Waste Organics + UK14.0 Municipal % 6.64m 750 3,912 Increase in profit before tax tonnes ‘000 tonnes in four countries Table 1: Detailed figures Operating division Benelux Solid Waste Hazardous Waste Organics UK Municipal Group 1 £ Number of employees 2209 810 72 821 3912 30.2m Underlying profit before tax Active operating centres 46 13 6 20 85 Operating centres with recycling/recovery 34 2 6 20 62 Operational landfill sites 3 0 0 2 5 Collection and transport lorries 688 125 0 45 858 Tonnes waste handled (million tonnes) 4.05 2.11 0.69 1.23 8.08 Tonnes materials recovered (million tonnes) 3.09 2.02 0.66 0.87 6.64 Overall recycling and recovery rate 76% 96% 96% 71% 82% Total energy generated (000’ megawatt hours) 58.0 0 38.9 9.5 106.4 1. Number of employees may vary from that quoted in Shanks Annual Report as the result of including discontinued activities in CR reporting. Overview Shanks Group plc Corporate Responsibility Report 2014 4 Overview Our vision We strive to be the Leading Provider Sustainable leading provider of Defined as high market share and Providing effective alternatives sustainable waste with clear competitive advantages. to landfill and mass incineration. management solutions in our Our target markets vision Waste Management Target Markets We aim to achieve our goals by Combining technologies to make Markets with high sustainable leveraging our unique position in valuable products from waste. growth drivers and potential for the waste management cycle. high recycling rates. Shanks uses a range of sustainable and cost-effective technologies to make valuable products from what is thrown away and generate increasing returns for our shareholders. We produce green energy, recovered fuel, recycled commodities and organic fertiliser. Our solutions Where we operate Our people Benelux UK Canada Reduce greenhouse Produce Treat contaminated gas emissions green energy waste 63 20 2 operating sites operating sites operating sites Our operations in the Benelux Our Municipal Division We process organic waste comprise the Solid, Hazardous provides recycling and waste using tunnel composting and Organics Divisions management services to local Belgium The Netherlands authorities in the UK, creating fuel Recycle Provide highly Produce Reduce untreatable for green energy production commodities specialised recovered fuel waste residues to a industrial cleaning minimum UK Canada Overview Shanks Group plc Corporate Responsibility Report 2014 5 Overview Solid Waste Hazardous Organics UK Municipal Benelux Waste Improve the profitability of Broaden the scope of our Expand the Organics footprint Grow the UK Municipal long-term Our strategy Solid Waste Benelux Hazardous Waste business in target geographies contract business Our Solid Waste business is focused Our Hazardous Waste business delivers Our strong market position and We are well-placed to grow in the Our overarching in the Benelux region where it is a superior returns through its symbiotic experience in the Netherlands, UK PFI market with established clear market leader with the scale range of treatments and operational combined with our unique business contracts, together with over £200m strategy of “making and position to win. Our strategy is excellence. We are building on this model (design, build, own and operate), capital committed to projects in more from waste” focused on returning this business profitable base by investing in more provides us with distinct competitive construction. We will deliver continued to previous profitability levels. treatment capacity. In parallel, we will edge which we will leverage to expand improvements with our operational remains consistent and We continue to drive cost efficiency expand the range of waste inputs that in target markets. We will expand our contracts and will profitably ramp the core pillars of this through the structural cost programme, we treat with our existing assets and will North American footprint by delivering up newly commissioned assets. increasing route density, and delivering broaden our commercial coverage in proven solutions that meet the Our medium-term growth will be strategy are focused on new procurement and continuous international markets. emerging diversion requirements of underpinned by the successful generating profitable improvement initiatives. We are that market as well as successfully construction of significant new investing in optimising our ramp up new UK assets and develop sustainable waste management growth in each of our commercial effectiveness to take co-processing with Dutch A-brand infrastructure. Our expanding PFI four distinct markets advantage of market opportunities customers. operations have high recycling and and have also streamlined the recovery levels. portfolio to increase returns. Group While we are increasingly clear about the actions needed to deliver growth in each division, we will strategy continue to deliver value by leveraging our Group capabilities and scale. At a strategic level, our four divisional strategies remain underpinned by two key Group strategies that span all of our businesses. Develop world-class capabilities in a cohesive Group culture Actively manage the Group’s portfolio This strategy comprises the introduction of enhanced capabilities of commercial We are actively managing our portfolio of assets to improve the quality of our effectiveness, continuous improvement and talent development. It also includes earnings and the return on capital employed. In particular, we have sold the leveraging of our many deep skills between Divisions. For example, the skills underperforming assets that lack the long-term capability to generate attractive of our Netherlands Organics and UK Municipal businesses are combining to bid returns. Overall, we are focused on deploying capital in areas where we are for contracts in Canada, while our Shanks Total Care initiative creates a unique confident of sustainable advantage, attractive returns and higher growth. commercial proposition in the Netherlands. And, we are doing this while improving our recycling and recovery rate, increasing the carbon avoidance benefit we provide and reducing the number of accidents our employees suffer. Overview Shanks Group plc Corporate Responsibility Report 2014 6 Overview Our ATM facility in the Netherlands delivers sustainable waste management solutions Group Chief // Our dedication Executive’s to health and safety statement has helped us to reduce our already Looking after our employees, protecting the environment and low accident rate engaging with our neighbouring significantly// communities enables us to work safely and efficiently,
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