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Sustainability Report 2006

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Sustainability Report 2006 Aggregate Industries Limited Sustainability Report 2006 A member of the Holcim Group Sustainability aspects The aspects below are elements of the internal and external world that we affect or we are affected by – we need to make consistent progress with each in order to be more sustainable. Working with our suppliers Political groups Research and innovation. Development of mutual Supply chain risk assessment. understanding. Supplier partnerships. Economic prosperity National and local tax contributions. Local Provision of building materials wages spent by employees and contractors. Manufacture and supply of high quality building materials, which contribute to our quality of life Community interaction and a more sustainable future. Noise and vibration. Visual impact. Transport. Odour. Investment. Liaison. Heritage. Delivering value to our customers Product information. Packaging. Interaction with government agencies Customer satisfaction. Develop task forces. Enforce regulations. Consultation process on new and revised Financial community regulations/processes. Build confidence in our ability to deliver expected results. Interaction with NGOs* Funding. Participation. Partnership. Marketplace Community Education. Research. Emissions to air Health and safety Drilling, blasting, loading, hauling, crushing and Welfare. Safe conditions of work. screening of materials. Combustion of fossil fuels. Health screening. Handling of bulk powders. Resource consumption Providing employment Primary/secondary aggregates. Hydrocarbons/non- Aggregate Industries employs renewable energy. Consumables. Use of municipal, 10,000 people directly. surface and groundwater. Personal development Discharges to water Apprenticeships. Training. Appraisals and mentoring. Spillage of hydrocarbons, pigments and other chemicals. Silt and contaminants in stormwater. Discharge to public Fair employment sewers, groundwater and surface water. Fair pay and conditions. Pensions. Effects on land Free from discrimination. Changing of landscapes. Alteration of Contractors habitats, both positively and negatively Secondary employment affecting biodiversity. for hauliers and many Wastes service providers. Inert, general mixed Workplace and hazardous. Environment Aggregate Industries Limited Sustainability Report 2006 Contents 3 Introduction 3 Statement from the Chief Executive Officer 4 Business in the Community Corporate Responsibility Index 4 Structure and scope 5 Key Performance Indicators 6 Marketplace 7 “Where we do business” 7 Marketplace Corporate Responsibility Index 8 UK marketplace 8 US marketplace 10 Customer satisfaction 10 Trade associations 11 Sustainable products 11 2006 acquisitions 12 Workplace 13 “Where we work” 13 Workplace Corporate Responsibility Index 14 Employee diversity 14 Employment equality age discrimination 15 Group health and safety performance 16 Training and development 17 Succession and performance management 17 Futurepath 18 Environment 19 “The living world and how we use it” 19 Policy review and integration 19 Environment Corporate Responsibility Index 20 Environmental management system performance 20 Environmental incidents 21 Environmental prosecution 21 Biodiversity Action Plan (BAP) – Revision 21 Carbon management 22 Waste – US and UK 22 Water – US and UK 23 Resource consumption 23 Energy consumption 24 Community 25 “The people around us” 25 Community Corporate Responsibility Index 25 Performance against objective. 26 Key Performance Indicators – Community Complaints. 26 Policy revision 27 BBC Breathing Places 27 Play Safe...Stay Safe revisited 28 US community engagement for more information visit www.aggregate.com/sustainability Key achievements Marketplace Ninth straight year of business growth Workplace Health and safety hard target achieved Environment ISO14001 programme in the US almost complete Community Community engagement programme under way Page 2 Aggregate Industries Limited Sustainability Report 2006 Introduction Statement from the Chief Executive Officer In a watershed year which saw the publication of two significant reports on climate change and its effects on the economy and the environment, we have a clear message: it’s happening and we have to take action now. The health, safety and well-being of those working in and visiting our operations continues to be one of our major priorities. To this end we have developed health and safety policies across our operations with operational systems and procedures designed to ensure that we meet the highest possible standards of safety management. In 2006 we adopted the Holcim passion for safety initiative which initially required us to reduce our Lost Time Injury Frequency Rate (LTIFR) by 30% over the figure we achieved in 2004. We achieved that target, recording a reduction from 9.81 to 6.12 by the end of 2006. Our ongoing target is to achieve an annual 30% In the UK, the Stern Report clearly stated that the cost improvement until our LTIFR is at or below 2. of taking action now will be far less than the cost of delaying our response. The Intergovernmental Panel on 2006 was another year of growth for Aggregate Climate Change (IPCC) also produced further evidence Industries. In the US we acquired Meyer Material that temperatures are rising and the effects on Company based in Illinois, a leading supplier of the polar regions and their wildlife are starting to aggregates and ready-mixed concrete and concrete become critical. paving in the region, employing 700 people. In the UK, Foster Yeoman became the largest acquisition so far In the US, public and political attitudes towards the made by the Aggregate Industries Group. This much issue of climate change and the human contribution to respected business, owning two of the largest hard the greenhouse effect have shifted rapidly. State rock quarries in the UK, is a substantial addition to Governments are setting Kyoto-style targets for the our coverage and capacity. Also in the UK, reduction of carbon emissions in many of the areas in Ash Solutions became part of our which we operate. Cementitious Materials Division, adding the distribution Those of you who have been following our progress of high quality ash and ash products (by-products of through our Sustainability Reports will know that we coal-fired power stations), used as a have been taking action to reduce the Company’s cementitious material in concrete products, to carbon footprint for the past four years. We have our capability. These products offer sustainable reported a year on year reduction in our principal material substitutes, providing lower indicator, kilogrammes of carbon dioxide per tonne of environmental impacts for the sustainable production, and I am delighted to report that we construction markets in the UK and US. achieved our UK target of a 12.5% reduction against We have been a member of our 2003 baseline. As a result, and in order to stretch the US Green Building the businesses further, I have announced a revised Council (USGBC) since 2005 target of a 20% reduction by 2012. This is in line with and in 2006 we became a the target of our parent company, Holcim Ltd, and will founder member of, the UK provide renewed impetus for our drive to reduce our Green Building Council emissions and reliance on fossil fuels. for more information visit www.aggregate.com/sustainability Page 3 Business in the Community Corporate Responsibility Index (UKGBC). The UKGBC will act as a champion for ‘green As a member of Business in the Community, we building’ and is part of the leadership role that I believe annually report our scores from the Corporate is vital to us as a business. For the past three years we Responsibility Index. They provide a benchmark for us have sponsored the Civic Trust Sustainability Award for to evaluate our management practices and projects which exemplify excellence in design and performance in a range of areas relevant to function. This is an opportunity to reward and the business. showcase the best examples of projects that are of The manner in which we receive our results from benefit culturally, socially or economically whilst making Business in the Community changed in 2006. In an outstanding contribution to the quality and previous reports we printed graphs showing our overall appearance of the environment. score within a category against that of the sector Such leadership was rewarded recently by the British average and the averaged result from all respondents. Standards Institute in their celebrations of the 10th This year we have a more thorough analysis of the Anniversary of ISO14001. Aggregate Industries UK Ltd information submitted and as such have decided to was named “Most Innovative Organisation” with the offer our results as we receive them as a download on judges commenting on the development of initiatives our sustainability website. such as expanding our product range to include lower We have maintained or improved across every aspect impact specifications and our approach to biodiversity of the benchmarking system in 2006, our most management and community engagement. I am significant achievement being in the workplace where delighted that we received this award, particularly as it we attained 81% in 2005 and have improved to 93%. was open to all UK organisations certified to ISO14001. Overall we increased our score to 87% and maintained We remain keen to find new opportunities to our place in the Top 100 with silver performance. strengthen our commitment to sustainability. In 2006, Due to changes in the Company structure,
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