THE McLAREN GROUP CORPORATE SOCIAL RESPONSIBILITY POLICY 2010/11

0F/DUHQ&65&RYHUYLQGG  Introduction 1 2 3 4 5

The McLaren Group is a diverse aimed at reducing our carbon footprint. Philosophy Conservation People Innovation The future organisation, covering the six The guiding philosophy of the MTC has companies of the McLaren family, always been to give our people the best • Welcome to the MTC • Energy effi ciency • The community • Applying our • How we plan to with our high-technology racing and possible environment in which to work; • The CSR policy • Waste management • Good neighbours technologies in reach the next level automotive businesses at its core. Our somewhere that would motivate and • Our performance • Carbon emissions • Natural design complementary sectors passion for excellence and innovation inspire them. To achieve this, we went • Charity is second-to-none, but we also believe far beyond the existing best practice. that we should seek to minimise our impact upon the environment. The McLaren Group is committed to the elevation of CSR values among its Designed to work in harmony with staff, customers and stakeholders, and nature, the McLaren Technology Centre responsibility towards the environment (MTC) near also embodies is a key part of the Group’s philosophy. the culture and values of the McLaren It is one that we approach with the Group and is the hub from which we same commitment and dedication have implemented a range of measures we apply across all our businesses.

Martin Whitmarsh CEO McLaren Group

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  1 The Policy Philosophy The philosophy behind Aspirations are the baseline against which progress can our CSR strategy is simple. be measured. But targets must be defined if action is to Starting with the premise that be effective. At McLaren, we are concentrating our CSR our main business is motor efforts in three distinct areas: conservation, people and innovation. The core objectives are set out below: racing, a sport which impacts upon the environment, the McLaren Group aims to be at the forefront of any moves to reduce these impacts. Conserving the Connecting environment with people Under this CSR strategy, we will implement policies • Reducing pollution in all its forms, • Ensuring the McLaren Group which reduce pollution in particular energy consumption remains an employer of choice and CO2 emissions, ensuring good • Implementing good health and in all forms – in particular resource and waste management safety practices, particularly through energy consumption and practice, and maintaining tight the provision of facilities which controls over recycling and noise promote healthy lifestyle choices CO2 emissions – ensure • Applying the government’s • Encouraging dialogue between good resource and waste ISO14001 certifi cation standard, employees and management, and management practice, bringing environmental management seeking employee views and ideas and maintain controls system conformity and complying • Supporting charities and projects with legal requirements aligned with our CSR objectives over recycling and noise. • Promoting and sustaining • Being a considerate neighbour with biodiversity at the MTC local authorities and stakeholders

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  McLaren contributed to Great Britain’s Winter Olympics gold medal success in Vancouver

The Policy Our performance

Aspirations are the baseline against which progress can The three-step CSR programme • The MTC’s original landscape be measured. But targets must be defined if action is to would be a daunting prospect brief included planting around be effective. At McLaren, we are concentrating our CSR for many companies, however, 100,000 trees and shrubs we are fortunate to be able to efforts in three distinct areas: conservation, people and draw upon a range of talents • We run a comprehensive innovation. The core objectives are set out below: and resources. physio facility for our staff

A great deal has been achieved • McLaren Applied Technologies to date, and we are pushing helped design the bobsleigh even harder to achieve further used by Amy Williams, Britain’s success in this area. Olympic gold medal winner Conserving the Connecting Creating opportunity environment with people through innovation

• Reducing pollution in all its forms, • Ensuring the McLaren Group • Applying the McLaren Group’s in particular energy consumption remains an employer of choice CSR principles to other areas

and CO2 emissions, ensuring good • Implementing good health and of product development resource and waste management safety practices, particularly through • Training employees to bring a spirit practice, and maintaining tight the provision of facilities which of innovation to their thinking, helping controls over recycling and noise promote healthy lifestyle choices them discover a more creative and • Applying the government’s • Encouraging dialogue between fulfi lling career path ISO14001 certifi cation standard, employees and management, and • Promoting McLaren’s CSR policies bringing environmental management seeking employee views and ideas more widely among our suppliers system conformity and complying • Supporting charities and projects and customers. Requesting our with legal requirements aligned with our CSR objectives CSR requirements be taken into • Promoting and sustaining • Being a considerate neighbour with account by other businesses along biodiversity at the MTC local authorities and stakeholders the supply chain

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  Units of electricity saved The target Heat created by electricity per year by replacing kerb reduction in generation is captured by lights with a more efficient CO2 emission the CHP system and used 13,000kWh bespoke in-house design 18% levels by 2012 to keep the building warm 2 Conservation

electricity per year and reducing the streaming into the building. frequency of lamp replacement • The canopy around the edge of the • Our combined heat and power (CHP) roof is designed to reduce solar gain. system captures heat created as a • Rain water is captured from the roof by-product of electricity generation and car park using a syphonic drainage and uses it in other processes, such system which tops up the lakes and as heating the building or generating MTC cooling system. Contaminants chilled water through an absorption are fi ltered through hydrocarbon chiller. This is critical for the operation interceptors and a system of reed beds. of many of our key processes, such as • Pollution is contained and reduced the wind tunnel and data centres by (a) reviews of manufacturing Energy efficiency • The control strategies for the chilled processes, and (b) analysis of, and water plant have been optimised to improvements in, emission levels, The MTC is a contemporary building • The MTC has been confi gured for use the minimum amount of energy materials consumption, waste disposal, with energy effi ciency built into its design optimal electrical usage effi ciency; necessary, saving over 900,000kWh packaging and compliance with ISO and an ongoing process of implementing systems have been programmed to of electricity usage per year 14001 certifi cation standards. further effi ciency projects. Many of the automatically switch off air conditioning • The build-up of heat within the MTC • Future projects include replacing the building’s systems have been modifi ed and lighting in unoccupied areas, saving complex is dissipated through a series underwater lake lamps, car park lighting to incorporate new technology. over 1,300,000kWh of electricity usage of lakes surrounding the building. The and the famous McLaren sign with low- per year. major lake acts as a heat sink, reducing powered LED technology. The McLaren Group is applying for • Interior halogen lights have been the number of cooling towers needed Carbon Trust Standard recognition – replaced by more energy-effi cient • Heated water usage is strictly Thanks to measures such as these, a prized indicator of an organisation’s LED and metal halide bulbs controlled by adjustable sensor ranges the McLaren Group is on target to meet carbon footprint performance. For • Kerb lighting along the VIP entrance • The wall of glazing stretching the full its original fi ve-year projection of an

this purpose, we have implemented a road has been replaced by a bespoke width of the MTC frontage and the use 18 per cent reduction in CO2 emission number of new initiatives: in-house design, saving 13,000kWh of of skylights maximise the natural light levels between 2008 and 2012.

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  By encouraging use of laptops instead of desk computers, we save around 30mWh – or 60 tonnes of CO2 – every year

CO2 per £M turnover CO2 emissions (kg/per employee day)

100 72.0 95 70.0 Actual Target 90 68.0 85 66.0 64.0 80 62.0 Waste management 75 60.0 70 58.0 65 56.0 Last year, the McLaren Group generated by the Group. This was different hazardous waste streams. 60 54.0 produced around 1,072 tonnes of chipped and delivered to Slough Of those streams, 34 are now recycled 2006 2007 2008 2009 2007 2008 2009 2010 general waste (excluding trackside Heat and Power, where it is used 100 per cent via processes including and Absolute Taste operations) in as part of Biomass fuel. solvent, thinner and oil recovery; two main categories: General compaction, gas liquid separation and Carbon emissions (including packaging and textiles) By 2009, the McLaren Group pyrolisis. Seven streams are recycled and Hazardous (paint waste to generated 792,735kg of waste, up to 96 per cent and the remaining The McLaren Group has prioritised its carbon-reduction epoxy-based products). Disposing and recycled 100 per cent of its eight are 100 per cent disposed via strategies and is currently implementing several on-going of this has an impact on the general waste streams (wood, paper, chemical and bacterial treatment. initiatives across its companies, including the following: environment, so best-practice cardboard and metal), accounting for waste management is a priority. over 60% of the total general waste. In 2010, our focus is upon textile and • Favouring sea freight over air freight MTC – which saves 56 tonnes of carbon fi bre streams, both of which

where possible for racing operations CO2 per year After a review identifi ed that under The Group also generated 343,400 present their own challenges. For the one-fi fth of the 783,405kg of general litres of hazardous waste in 49 recycling of textiles, including team • Adopting fl exible transportation • The vast majority of company fl eet waste generated was being recycled, clothing, the main issue is one of brand timings between locations cars used by McLaren Group staff the McLaren Group committed to protection. For carbon fi bre recycling are Mercedes-Benz A- and B-class a fully integrated waste management Percentage of waste recycled to be improved, this will require further • Converting all transporters to diesels with low g/km ratings plan from 2005, including: changing % changes to our manufacturing process super-effi cient Mercedes-Benz business practices; segregation of 70 and on-site preparation. BLUETEC diesel engine technology • Encouraging use of laptops rather waste at source; and ensuring 60 than desk computers (131 watts adequate waste storage facilities 50 Of the 1,072 tonnes of waste • Adopting a more energy-saving power drain is reduced to 39) The long-term objective is zero 40 generated by the McLaren Group last rather than comfort-focused waste to landfi ll. 30 year, just 168 tonnes (15.5 per cent) orientation within the MTC We are working towards Energy 20 went to landfi ll. If successfully Performance Certifi cation and Display In its fi rst year, the programme 10 implemented, these new processes • Using the ‘free’ cooling provided Energy Certifi cation (operational achieved a 100 per cent recycling 0 will remove a further 100 tonnes of by natural air ventilation of the performance) for the MTC. target of the 65,500kg of waste wood 2007 2008 2009 waste from landfi ll to recycling.

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  Our fitness and wellbeing centre offers services such as dietary advice, health checks and fitness programmes 3 People

The McLaren training, especially in the area taught modules, leading to a McLaren maintains a our encouragement and of leadership, is a priority and BTEC National Certifi cate in professional health, safety assistance when required. Community we have a range of engaging Motor Sport Engineering. and wellbeing profi le within programmes based on fi ve 3) development days its companies, implementing McLaren’s motor racing The McLaren Group regularly main themes: – opportunities for mass best practice for staff through mentoring programme seeks the views and ideas of 1) growing our internal talent participation in the a range of measures, such as: has a wide-ranging brief employees, involving them in – courses on topics ranging development of our people (a) providing services and to help youngsters take the decision-making process from infl uencing skills to 4) team development facilities which promote their fi rst steps in the sport. of its CSR policies. This has managing your career 5) networking opportunities healthy lifestyle choices. This includes a managed fostered a team spirit through 2) investing in our future – – offering all new entrants (b) ensuring that everyone programme for young people an improved understanding a trainee technician scheme the chance to gain a unique is well briefed on health aged between 12-21. Several of the business. emphasising practical insight into each business and safety issues. times a year, a selected few Comprehensive staff experience and including within the Group (c) providing a fi tness and are brought to the MTC for wellbeing centre, offering full physical, biomechanical occupational health services and technical tuition. such as dietary advice, health checks and fi tness McLaren also reaches out rehabilitation programmes. to other racing categories, such as Formula 2 and Our health and safety GP2, providing support routines in the grand prix and assistance to the paddock are often emulated development of both drivers by other F1 teams with and engineers.

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  The size of the land It took just two weeks The wet meadow land surrounding the MTC, much of for otters to settle after around the MTC is home which has been transformed McLaren volunteers had to many frogs, toads, grass 50Ha into a public-access park built an otter habitat snakes and dragonflies

Good neighbours Natural design

An over-riding concern is to • Bonsey’s Common, McLaren- • McLaren volunteers ensure the McLaren Group owned land that borders Horsell constructed an otter habitat on is viewed as a considerate Common, is of high nature the banks of the River Bourne. conservancy interest. Our design Environmental experts predicted neighbour. Much of the template featured parkland tree otters would return within a year, 50-hectare site has been groupings of semi-mature horse but the intended inhabitants Charity transformed into a public- chestnut and small-leaved lime arrived in two weeks The McLaren Group is The Woking Hospice access park; responsible land and shaws, with mixed native committed to helping three offers palliative care and management has encouraged trees in proportions that mirror • We work with a local college on important charities in the support for patients and their the return of animal, bird and local woodlands an apprenticeship programme, investing in future manufacturing local Surrey area: families living locally. insect species, along with • McLaren’s development of its skills that otherwise may be lost plants not seen in the area for surroundings has encouraged for our community The White Lodge We also aim to help loyal years, including exotic orchids. the re-emergence of the healthy offers a range of activities, McLaren fans in the local wildlife domain – the traditional • McLaren supports existing opportunities and services community, especially wet meadow section bordering partnerships with organisations for disabled people of all those suffering through the River Bourne is home to such as the Horsell Common ages, and for their families illness or other unfortunate butterfl ies and other insects, Preservation Society and and carers across Surrey circumstances. along with frogs, toads, grass consults local authorities such and surrounding area. snakes, six species of dragonfl y as Woking Borough Council and ground-nesting birds such We have developed and as skylarks and meadow pipits • McLaren’s relationship with The Surrey Care Trust implented new criteria its local community is an helps those with limited skills to identify further charities overwhelmingly positive one and qualifi cations to improve and other projects that align their prospects through with the McLaren Group’s innovative training courses. CSR objectives.

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  The telemetry used to monitor McLaren contributed to the an F1 car can also be used development of a solar probe that to monitor patients remotely could provide vital information on the and collect medical data long-term future of the earth’s climate 4 manage their logistics Innovation effectively, in real time through simulation of future outcomes. The most recent application of • Smart systems used for this innovative approach has Shared technology performance management been the optimisation of ground in racing have been applied movement of aircraft traffi c McLaren employee training schemes • The telemetry that monitors to realise breakthroughs in emphasise technical innovation – a vital an F1 car has been applied in performance for Team GB • McLaren’s advance ingredient for individuals working at the medical monitoring equipment; cycling, rowing, sailing and composites know-how aided cutting edge of technological advance. in the medical, biotech and canoeing. By collecting data in the construction of a solar pharmaceutical fi elds, patients real time from athletes (and the probe that could provide vital Here are some of our latest achievements can be remotely monitored in real equipment they are competing information on the long-term time; sensors collect data such with) coaches are better able to future of the earth’s climate as ECG readings, and monitor identify areas of advantage and motion, temperature, blood improvement to thereby realise The McLaren Group encourages oxygen and respiratory activity the full potential of their athletes external engagement and the cross-pollination of innovative • Software capable of analysing ideas within the CSR remit. It is every possible permutation of our belief that any idea which an F1 race and predicting which helps one company reduce strategic option is best to take is its carbon footprint should be being used to help businesses shared by all.

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0F/DUHQ&65SYLQGG  0F/DUHQ&65SYLQGG  While the McLaren Group is rightly proud of the measures we have implemented since 2007, and the success we have had 5 in reaching our preliminary targets, we The future recognise there is still some way to go

The carbon emissions data already made savings in this presented for the McLaren area, for example by using sea Group have been for Scope freight rather than air to send 1 (generated directly by equipment to ‘long haul’ races. our business) and Scope 2 (generated remotely). We have commissioned a state- of-the-art ‘Race Operations’ Our Scope 1 emissions are suite, where engineers can generated from gas burned on monitor trackside performance site at MTC, and from company- from the MTC near Woking, owned vehicles (trucks and pool reducing the number of staff cars). Scope 2 emissions are required to fl y out to grands prix. from electricity used on site, where the carbon is generated Over the coming year, emissions at a remote power station. from suppliers (eg. production processes, delivery logistics) will We are currently working closely also be scrutinised, with the aim with experts to establish our of identifying areas where these Scope 3 footprint (emissions too can be reduced. attributable to business travel and freight carriage), but have www..com/csr

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