Hanson UK

Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 Contents 2011 2011 highlights 3 Sustainable consumption and production 20 highlights… …and awards 2011 awards 3 Environmental incidents and emissions 20 Waste minimisation 22 Integrated management system launched Introduction by Patrick O’Shea 4 Materials efficiency and recycling 23 ✓ to replace 19 separate systems ✓ British Trust for Ornithology ✓ Royal Society for the Prevention Towards 2020 – our new targets 5 Business Bird Challenge – Kings of Accidents — Hanson Contracting Responsible Sourcing of Materials BES6001 Dyke nature reserve at Whittlesey received the Order of Distinction to Our sustainability strategy 5 Natural resources and enhancing the environment 24 ✓ achieved for all our production sites near Peterborough, won the mark 19 consecutive years of conservation category, with two North achieving the gold standard. Overview by Martin Crow 6 Water 24 Yorkshire quarries, Ripon and Forcett, Employee lost time injuries Quality and performance 26 winning the bird count category. ✓ Brick Development Association Scope of the report 7 ✓ fell by 17 per cent Site stewardship 27 brick awards – four individual ✓ 2011 Arts & Business North projects recognised. Management systems for continual improvement 8 ✓ Waste to landfill fell by over 6,000 tonnes awards – The Coldstones Cut, Our business 28 a major piece of sculptural art at ✓ British Ceramic Confederation Mains water consumption reduced Coldstones quarry near Pateley Safety Pledge awards – two Production operations 29 ✓ Creating sustainable communities 10 Bridge in North Yorkshire, won the employees were honoured for Environmental Partnership trophy. commitment to health and safety; Production volumes 29 ✓ Energy per tonne of product reduced Health and safety 10 projects at Cradley, Kings Dyke and Mineral Products Association Kirton brick works were recognised Stakeholder performance 12 Corporate governance and Group strategy 30 CO emissions from transport reduced ✓ ✓ 2 health and safety awards — for safety. Employment and skills 13 Summary of KPI performance 31 six Hanson entries highly commended. Local community 14 ✓ External complaints fell by 20 per cent Three employees received individual ✓ Mineral Products achievement awards. Association and Natural Biodiversity and geodiversity biodiversity awards – Kings Dyke Climate change and energy 16 ✓ action plans increased ✓ Insulated Render and Cladding nature reserve at Whittlesey was Association awards — Hanson runner-up; Ripon quarry in North Energy efficiency 16 Launch of the Quarry Life Award Structherm won the domestic Yorkshire was highly commended. Waste as fuel 17 ✓ refurbishment low rise category for Cover: Operations manager Peter Dolby in the Profuel plant at cement CO2 emissions from production 18 works in . Profuel is a solid kiln fuel manufactured from paper, plastic its BISF houses project in Preston. ✓ Mineral Products Association and fibrous wastes that are either uneconomic or impossible to recycle and Top left: Dr Helen Phillips, second right, chief executive of Natural England, at restoration awards — Middleton CO2 emissions from transport 19 that otherwise would be sent to landfill. the Mineral Products Association (MPA) and Natural England biodiversity awards Hall quarry in the West Midlands and presentation with land and mineral resources director Mick Daynes, second left, and landscape managers, from left, David Southgate, Andy Duncan and Georgina Watkins. West Knighton quarry, Dorset were both highly commended. Top right: Three Hanson employees were recognised by the MPA for championing the cause of health and safety in the workplace. Pictured, from left, are Wayne Conder, concrete operations manager in Wiltshire, Danny Osborne, maintenance planning engineer at Ketton cement works and Stewart Sanderson, occupational nurse at Ribblesdale cement works.

2 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 3 Climate change and energy Objective: Maximise energy and carbon Our 2020 core targets efficiency; deliver products with lower embodied carbon and support national New targets define and European carbon reduction targets. 2020 target: Reduce carbon emissions by 10 per cent per tonne our 2020 ambitions based on 2010 baseline data.

by Patrick O’Shea, Chief Executive Officer, Hanson UK Natural resources Creating sustainable Management This is our fourth performance and One of my main ambitions is to embed and enhancing the communities systems for environment sustainability report as Hanson UK and I am sustainability into everything we do. I continuous again pleased to note that we have made appreciate this will take time to achieve, Objective: Ensure health and safety Objective: Minimise impacts on the remains our number one priority; improvement availability of water in the natural good progress in a number of important areas, but we have made some positive steps identify and engage with internal environment; ensure the sustainable use most notably reducing workplace accidents. on the journey and I am determined to and external stakeholders; develop Objective: Achieve and of land and maximise the benefits for the skills of our workforce and maintain certification under biodiversity and ecosystems services. energise and encourage the culture change ISO 14001, 9001 and We will continue to set clear and demanding make a positive contribution to the 2020 targets: Reduce mains that will be required to make it happen. communities around our operations. OHSAS 18001 and targets for the business against which we BES 6001 across all water consumption by 10 per cent based on 2010 baseline. Establish, publish 2020 target: Zero lost time injuries. business lines. can measure performance and progress. This We invested over £40 million in capital projects and implement biodiversity action year we have also identified new core targets in 2011 and spent more than £1.5 million on plans for all operational quarries and to take us towards 2020, aligning ourselves training and developing staff. Our products publish performance results. with both our industry sector and our parent are basic but essential and went into some Sustainable company HeidelbergCement. These fit into of the country’s largest and most prestigious consumption and production the five themes of our sustainability strategy construction projects from Crossrail in Further targets will and are highlighted on the opposite page. London, to the Clyde wind farm in Scotland. Objective: Minimise the use of natural resources be developed for the by avoiding or reusing waste, producing performance indicators materials that have low embodied impacts. within each theme. 2011 proved to be another challenging year We are one of the biggest companies in Patrick O’Shea 2020 target: Reduce non-process for our business. Construction activity slowed in our sector with a strong asset base and Chief Executive Officer waste to landfill by 85 per cent based on the second half, particularly outside the south excellent people and we remain determined baseline 2010 data; establish business east of England, and we had to bear the burden to achieve our goal of achieving ‘best in class’ line targets for process waste by 2013 of a 20 per cent increase in energy costs. status in terms of performance management, This combination of tough trading conditions customer focus and sustainability. and rising gas, electricity and fuel prices puts into sharp focus the benefits of operating Our sustainability strategy sustainably. If we can save on energy and natural resources, reduce waste and eliminate Our aim is to be a leading sustainable business, To support this approach we will: yyImplement a stakeholder review accidents our business will ultimately be more trusted and respected by our stakeholders yyProvide training and guidance for process and develop our strategy successful, allowing us to provide stability for “One of my main ambitions for the ethics we adopt and the products employees to understand our key to meet stakeholder interests. the present, and investment for the future. we supply. Our approach is built around five objectives and encourage them to yyDevelop new products that themes which underpin our sustainability take responsibility for performance. enhance our credentials and the is to embed sustainability policy and performance indicators: yyContinue to develop our Integrated sustainable built environment. into everything we do.” yyManagement systems for Management System as a mechanism to yyAchieve and develop our sustainability continual improvement implement our sustainability strategy and targets and lead by example. yyCreating sustainable communities ensure compliance with legislation, accurate yyClimate change and energy reporting and continual improvement. yySustainable consumption and production yyPublish annually in July a report on the prior year’s performance to the standards yyNatural resource protection and of the Global Reporting Initiative. enhancing the environment.

4 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 5 A structured approach “In 2011 we developed to sustainability and launched an integrated management system” by Martin Crow, Head of Sustainability, Hanson UK Scope of the report understand what is required of them and also looking at new technology to improve In addition, we have also set four new core summarised on page 30. Progress in The report covers Hanson UK’s five principal how they can make a real difference to our logistics operations. We are also targets for Hanson UK to take us towards these KPIs is summarised on page 31. divisions (aggregates, concrete, asphalt and our overall performance. We accept that committed to conserving natural resources by 2020 (see page 5) and to complement the contracting, cement, and building products) and there remains an ongoing challenge to minimising water use, using Regen (GGBS), ambitions of both our industry sector and In February 2012 we signed up to the UK all its corporate functions. Waste, energy and embed the process in everything we do. reducing waste and increasing recycling. our parent company HeidelbergCement. concrete industry’s updated strategy which water data from contracting works sites has includes further ambitious plans to improve not been included due to the difference in the Underpinning this activity we have established A key achievement during 2011 was gaining A baseline (2010) has been adopted for performance from delivery of a zero carbon type of activity carried out. The same applies an opportunities database on our intranet, the BES 6001 Responsible Sourcing of waste, water and energy and adjusted to built environment to promoting material and to Hanson Structherm and Irvine-Whitlock, which enables staff to promote and share Materials (RSM) standard for cement and reflect the current company structure. The resource efficiency and water conservation. which are primarily involved as contractors. good ideas and track their progress. We have Regen. The previous year we had achieved 10 per cent target for further reduction in also set up a database for waste generated the standard for asphalt and our range of carbon that we have set for the period to Our ambition is to be a leading sustainable We have a controlling interest in two joint and energy and water consumed, with monthly building products and we now have 100 per 2020 builds on achievements already made business which is trusted and respected by ventures, Smiths Concrete and Humber reports communicated throughout the business. cent coverage across production in all five since 1990 and will bring our total carbon our stakeholders for the ethics and standards We have developed the structure of Sand & Gravel, and their active operations business lines covering more than 350 sites. reduction to around 30 per cent, aligning we adopt. This will require a commitment to our reporting this year to bring it more In 2011 we developed and launched a are included in the data. Midland Quarry us with the UK concrete sector target. open communication with employees at all closely into line with the five themes in We won a number of awards related to Products, a quarrying and asphalt joint venture single integrated management system levels, compliance with legislation, continual our sustainability strategy (see page 5). sustainability during the year, including a based in Leicestershire, is not included as to bring together our health and safety, Our 2011 report remains closely aligned improvement in performance, and regular and Our sustainability policy has also been top prize in the inaugural Natural England it is controlled by our JV partner Tarmac. quality and environmental activities and to the UK concrete industry’s Sustainable accurate reporting of performance data. realigned to reflect these themes and to Biodiversity Awards organised by the Mineral provide a stronger link between our Construction Strategy and the government’s The figures quoted in the report are for the provide greater clarity to our stakeholders. Products Association (MPA). Our Kings systems and our activities on the ground. four sustainable development priorities have combined Hanson UK business. The 2011 Dyke nature reserve at Whittlesey near been retained as four of our five themes: In 2011 we introduced a structured approach Other initiatives introduced in 2011 included figures do not include the specialist recycling Peterborough was named as runner-up in to working sustainably, built on a belief that a renewable energy group to look specifically yycreating sustainable communities business Solvent Resource Management a new bi-annual competition sponsored by sustainability cannot be imposed and must at wind and solar power applications at our (SRM) which was sold during the year. Natural England and designed to showcase yyclimate change and energy come from within the organisation. Site sites and energy awareness groups in our outstanding examples of biodiversity created yysustainable consumption and production We are committed to reporting annually and champions have been established to lead on major offices to monitor and reduce energy from spent quarries. Other awards received yynatural resource protection and the report covers calendar years to the end of identifying and adopting practical ideas for usage as part of a global initiative by our during the year are listed on page 3. enhancing the environment 2011. Any changes in measurement methods improvement, ranging from saving energy parent company HeidelbergCement. are indicated alongside the relevant table. to reducing waste. They are supported by We have made further progress in establishing We continue to invest in more efficient Our new theme – management The report and additional data including business implementation groups, who are robust data for our performance indicators. production processes, particularly those which a breakdown of the data by business charged with co-ordinating the activities of the We will continue to work towards achieving systems for continual improvement reduce the use of fossil fuels. A prime focus line is available on our website at site champions, developing action plans and and surpassing clearly defined targets and This theme reflects the importance that for 2012 will be on distribution and logistics. www.hanson.com/uk/sustainability providing training. At the top of the pyramid to set new and demanding goals, including we place on the IMS to manage our is a steering group which sets the strategy, Our products have a high weight-to-value specific short and medium term business line sustainability performance in the future as Hanson Cement managing director Jon Morrish, left, who chairs the national sustainability steering group, we strive for continuous improvement. provides advice and guidance to the business ratio so managing transport efficiently makes targets, which will be reported next year. This and head of sustainability Martin Crow sign up to the Sustainability policy lines and is the focal point for monitoring good business sense as well as reducing year our report continues to track targets Within the structure of the five themes we UK concrete industry’s updated 2012 Sustainable The latest version of our sustainability and reporting on progress against targets. fuel consumption and carbon emissions. set for 2012 and we are also reporting on a have developed 18 key performance indicators Construction Strategy. policy is available on the website number of new indicators to bring the report (KPIs) for reporting which also complement We have found this structured approach to We are pursuing opportunities to increase www.hanson.com/uk/sustainability up to Global Reporting Initiative (GRI) Level B. the over-arching sustainability strategy of be highly beneficial. It allows employees to the number of rail-linked sites and we are our parent company, HeidelbergCement,

6 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 7  Management systems for continual improvement Consolidated system will improve efficiency

In 2011 we developed and launched an Due to the change that took place in the A key achievement during 2011 was integrated management system as the first management systems, we missed our gaining the BES 6001 Responsible phase in a project to bring together health target of gaining ISO14001 certification Sourcing of Materials (RSM) standard and safety, quality and environment activities. for our contracting services businesses for cement and Regen. The previous year We supported this with awareness training Irvine-Whitlock and Structherm. Gaining we had achieved the standard for asphalt for more than 300 responsible managers this is a priority for 2012, however all our and our range of building products and from the business lines and staff functions. production sites are certified to ISO14001. we now have 100 per cent coverage of This standard addresses environmental production covering more than 350 sites. There were previously 19 different systems management and includes commitments to operating across the business. A consolidated legal compliance, prevention of pollution and All our business lines operate comprehensive and unified IMS will improve efficiency, be continual improvement. The process involves quality management systems to ensure our easier to manage and allow us to move internal and independent external audits. products are made to the highest standards. towards single company certification. It will Our parent company HeidelbergCement We achieved our target of extending ISO also have a number of external benefits also carries out environmental audits. 9001 systems to all our building products for our regulators and customers. Thirty-eight UK concrete plants and eight production sites in February 2011. aggregates sites were audited in 2011 as part of the HeidelbergCement programme, which operates alongside the regular national audit schedule and covers a range

of topics from environmental performance to operating standards and procedures.

Alison Mytton, right, Hanson Marine has achieved provides training on ISO9001 quality management the new integrated accreditation. Pictured with the  Target management system certificate, from left, are Achieve OHSAS18001 and to Ketton cement commercial manager Rob ISO 14001 across the business works operations Flower, marine superintendant analyst Lynn Greaves. Ken Capes, operations manager by the end of 2012. Jae Jones and principal geologist Nigel Griffiths.

8 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 9  Creating sustainable communities

Health and safety Lost time injuries fell by 17 per cent The number of employee reportable and lost and directors to make a visible commitment Lost time injuries time injuries (LTI) in 2011 fell by 17 per cent to a series of pledges on working safely. Frequency from 36 to 30, which exceeded our target Number Severity rate rate of a 13 per cent year on year decrease, but The aim was to promote the type of behaviour was some way from our ultimate goal of zero which will lead to the total elimination of 2009 74 5.78 New indicator harm. The lost time injury frequency rate accidents. It is a two-way process that 2010 36 3.23 84.28 (LTIFR) also fell based on the average number involves individuals playing their part, with the company investing in resources of people employed during the year. This 2011 30 2.79 95.16 is the rate of injuries per one million hours to support the pledge commitments. 2010 data restated following information worked, which is being adopted as a standard We continued to invest in improved surveillance received after year end. industry indicator. For the second year, we and screening, providing scheduled health have included an LTI severity rate for our own checks to detect existing or underlying Lost time injuries Number Frequency rate employees, derived from the total number of issues including lung function, noise induced 80 days lost through accidents. This indicator is 7 hearing loss, hand and arm vibration, whole being reported throughout HeidelbergCement. 70 body vibration or skin conditions such as 6 dermatitis. We are also training managers to Our principal trade body the Mineral Products 60 Association has set interim targets to be aware of the signs of work-related stress. 5 halve the LTIFR for direct employees and 50 halve the cumulative number of contractor Fine follows fatal accident 4 40 lost time injuries by 2014 based on 2009 In December 2011, we were fined £27,500 3 Number figures. We are fully supportive of these and ordered to pay costs of £27,000 after 30

targets and expect to achieve them. pleading guilty to breaching Section 3 (1) of Frequency rate 2 the Health and Safety at Work etc Act 1974. 20 We continue to promote the principles of The fine followed the death of a contractor, 1 visible felt leadership to improve safety who was killed while carrying out maintenance 10 performance and eliminate accidents. work in a large limestone fines hopper feeding 0 0 Business lines are encouraged to take a ready-mixed concrete plant at Whatley, 2009 2010 2011 ownership of safety issues supported by, near Frome, Somerset, in February, 2008. Year but not dependent upon, the company’s Hanson and the deceased’s employer professional health and safety advisers. Shift manager Chris were both prosecuted by the Health and  Target Munton signs the In 2011 we launched a safety pledge poster Safety Executive (HSE), although during safety pledge at campaign. Production sites were issued with the hearing at Taunton Crown Court it was A 13 per cent year-on-year Ketton cement works. posters which allowed employees, managers accepted by all parties that the failings of reduction in lost time injuries either defendant did not cause the fatality. 10 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 11 Stakeholder performance Employment and skills Customer meetings help shape reporting Training focused on health, safety and leadership We have established an internal committee In 2011 we launched a new IT system for our We identify our key stakeholders through The average number of staff employed The training focuses on real business MySafeWorkplace is a confidential to investigate how we can work more aggregates, concrete and asphalt operations analysis of how our business interfaces during 2011 was 4,878. Spending per head issues and encourages managers and service for employees to report anything closely with key stakeholder groups to to streamline our processes and make us with our customers, suppliers, neighbours on training and skills increased during the year supervisors to look at behaviours rather from workplace harassment to fraud. develop sustainability programmes to our easier to do business with. An enhanced and the environment. The main groups with with a focus on health, safety and leadership. than task-orientated approaches. A number mutual benefit. Last year we set ourselves version of the SAP accounting system, whom we engaged during 2011 included: of projects related to sustainability were In 2011 we developed a new database Over 300 managers attended ‘engaging with called the Learning Management a target to arrange meetings with 30 which is used widely in our industry to deal yyBrick Development Association carried out as part of the training, from customers to help shape our sustainability with transactions from orders, invoices and your people’ workshops and more than 400 System (LMS) within our Integrated yyBritish Precast Concrete Federation community involvement to saving energy. reporting. We held 20 meetings in 2011 and statements to purchasing and payments, was managers and supervisors received training Management System to record and yyBritish Trust for Ornithology in sustainability and responsible sourcing. Looking to the future, a programme track training needs and provision. completed the programme during the first introduced from May 2011. It allows us to Above left: Adam half of 2012. Later in the year we will be respond more effectively to our customers and yyBug Life This was supported by the use of toolbox talks for managers and staff with high Fidoe, Jo Felstead organising a stakeholder event for customers, suppliers and provide service improvements. yyBuilding Research Establishment to take the messages to the entire workforce. potential talent has been introduced and April Xin take to assist with succession planning. part in a training suppliers, community leaders and NGOs. yyCampaign for National Parks session at the Five of our sites are within national parks A new suite of training programmes to Hanson UK Shared We see our employees as principal and we are active members of the Corporate yyCarbon Trust support and develop managers and supervisors We continue to provide a range of benefits Service Centre in stakeholders and we continued to improve Forum for National Parks which encourages yyCommunities was launched during the year. Leading the to support employees. FirstAssist provides Chipping Sodbury way to Excellence, covers a range of topics a round-the-clock telephone counselling near . our internal communications through dialogue between the Campaign for yyConstruction Products Association better use of the intranet platform, National Parks, the park authorities and the from induction and general management service through which employees can receive yyCustomers and suppliers Above right: divisional employee forums and staff businesses which operate within the parks. through to development of future leaders individual and confidential support on a Robert Nerenberg is an apprentice briefing meetings. In addition we produce yyEmployees and division-specific programmes. broad range of work-related and personal Before submitting planning applications for at Ribblesdale a quarterly magazine for employees, which yyEnvironment Agency issues, including financial management, cement works features news from around the business new developments we consult widely with yyLocal authority regulators stress, bereavement and relationships. near Clitheroe. both statutory bodies and local residents. and is delivered to home addresses. yyMineral Products Association We held four public exhibitions during 2011 to present proposals for mineral yyNatural England extraction. The exhibitions provided an yyNature After Minerals opportunity for local residents to view yyRoyal Botanic Gardens and comment on the proposals prior to yyRoyal Society for the Protection of Birds  TargetS planning applications being submitted. Above left: Elected members of yyUK Green Building Council 1. Maintain 100 per cent of production the Hanson UK employee forum. employees covered by ISO 14001 / 9001 training systems and establish all training Above right: Energy minister Charles Hendry,  Target centre, pictured during a visit to the £54 records in the LMS during 2012. million Measham brick works in Leicestershire Organise an annual stakeholder 2. Meet the targets set in the Mineral with, from left, energy procurement specialist event for customers, suppliers, Products Association’s ‘Safer by Ram Nandakumar, purchasing director Peter community leaders and NGOs. Sentker, NW Leicestershire MP Andrew Competence’ programme. Bridgen and energy manager Mat Newton.

12 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 13 Local community Structural art project attracts 28,000 visitors

Despite our overall size, we operate, in effect, We also help charities and voluntary groups Above left: Operations manager Chris Newport, right, as a series of independent local businesses, in the areas around our sites and offices. hands over a bag of cement to Ian Anderson, director of the Avon Youth Association at the Self Help Enterprise providing jobs in mainly rural areas and playing We supported more than 100 organisations centre in Filton, Bristol. Forty bags were donated to help a part in community affairs. Local managers to the value of £98,000 through the the association create a new garden at the centre, which are encouraged to build and maintain Hanson in the Community scheme which provides social activities and meals for the over-55s.

close links with neighbours and ensure the provides cash or materials for voluntary Above right: Ingleton quarry manager Tom Felix watches business remains both an accepted and groups close to our operational sites. as a helicopter lift of donated stone is delivered to acceptable part of the local community. Visits resurface a path that leads to the top of Ingleton hill in Our employee charity matching scheme the Yorkshire Dales. The quarry donated 140 tonnes of to Hanson sites, particularly from schools, gritstone to resurface a 900 metre stretch of path. are welcomed. Visiting groups include local contributed more than £28,000 to 61 residents, planning officers, environmentalists, charities during 2011 and has helped professional associations and students. raise more than a million pounds since its introduction in 1994. The scheme encourages Many of our larger sites operate liaison employees to raise money for charity by committees attended by councillors, council matching their fund-raising up to £500. officers and residents’ representatives. We recognise that our operations are part of We are corporate patrons of CRASH, the local community and strive to be good the construction industry charity which neighbours. The number of sites with liaison provides accommodation for the homeless, and Conservation Area Champions at the activities increased and visitor numbers were Community relations also up, with the Coldstones Cut viewing Royal Botanic Gardens at Kew. We are also platform – a major piece of structural art involved in other smaller sponsorship projects 2009 2010 2011 with environmental and community-based at Pateley Bridge quarry in North Yorkshire Relevant sites 79 77 73 — attracting more than 28,000 visitors. voluntary organisations and charities. Sites with 54 51 54 At Clee Hill quarry near Ludlow we have liaison activity (68%) (66%) (74%) installed CCTV to protect peregrine falcons. Number of visitors 7,577 8,843 33,160 Hanson offered funding to Shropshire The Coldstones Cut at Relevant sites are those operations Coldstones quarry near Peregrine Group to set up the monitoring with mineral extraction. Pateley Bridge in North system after an adult breeding pair of Yorkshire is a major peregrines was found poisoned. More than piece of sculptural art  Target which provides a unique 40 volunteers have come forward to help viewing platform for protect the peregrines at the quarry. All relevant production sites to the quarry and the be proactive in liaising with their surrounding countryside. communities by the end of 2012.

14 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 15  Climate change and energy

Energy efficiency Office staff join campaign to save energy We are continuing to focus on reducing Energy awareness groups have been set A stone-powered electricity generator has electricity consumption and managing up at all the major locations, with individuals been installed on the end of a conveyor at Waste as fuel supply demand. Our energy use per tonne nominated to take a lead role in the drive Whatley quarry in Somerset. Using the same fell for the third successive year but overall to cut electricity and fuel bills. Sustainability principle as a water wheel, the generator uses Tyres 9% consumption rose slightly, reflecting increased champions are acting as co-ordinators falling rock to generate electricity and recover production volumes. More than 360 energy- for collating ideas to improve energy some of the energy needed to power the Investment will MBM Cemfuel saving ideas were introduced in 2011, awareness and implement ideas. Notice conveyor. The project is being monitored with 23% Alternative 37% reducing carbon emissions and saving boards have also been installed to display a view to introducing similar generators on boost use of fuels used almost £1 million a year in energy costs. electricity consumption graphs, information more belt conveyors as part of a drive to invest in cement bulletins and top tips to save energy. in projects that will cut our energy usage. 24% In the UK, our office staff have joined the waste fuels The amount campaign to save energy as part of a global A series of 11 leaflets giving useful tips on how We have invested over £1 million in a new of fuel derived Profuel 31% commitment within HeidelbergCement to to save energy from conveyors to compressed facility at our Ribblesdale cement works reduce energy consumption in buildings. air were distributed to all our production sites. which will enable greater use of Profuel – from biomass a solid kiln fuel manufactured from paper, Energy consumption – kilowatt hours per tonne plastic and fibrous wastes that are either Alternative fuels Cement fuel derived from waste Baseline Change Change Change uneconomic or impossible to recycle. This Alternative 2008 2009 2010 2011 Description Year All waste – tonnes Biomass – tonnes 2005 since 2005 since 2008 since 2010 will help take us towards the 70 per cent fuel

95.33 80.02 81.80 79.91 78.21 -17.96% -2.26% -2.13% target set for the end of 2012, but this is Liquid fuel made from industrial 2009 143,254 (49%) 68,171 (22%) proving challenging in the timescale. Cemfuel wastes such as solvent, paint and ink residues 2010 158,704 (53%) 72,727 (23%) Energy consumption – total Megawatt hours The percentage of alternative fuels that can Fuel produced from mechanically Energy and biologically sorted domestic 2011 153,640 (55%) 69,547 (24%) be used varies between our three cement kilns. Profuel consumption Baseline Change Change Change refuse eg paper, plastic etc – 2008 2009 2010 2011 For operational reasons, the production balance per tonne 2005 since 2005 since 2008 since 2010 50% biomass between sites has changed in the last year Meat and bone meal from the 6,197,786 4,758,594 3,290,003 3,299,711 3,384,494 -45.39% -28.88% 2.57% causing the increase in waste fuel used to be rendering industry, which is not since 2005 MBM slower than anticipated. Availability of suitable suitable to enter the food chain 2010 data has been amended since last years report incorporating minor corrections. – 100% biomass fuel may also become a restricting factor. Fuel from scrap tyres that are Our asphalt plants continue to use Tyres unsuitable for moulding or 18%  Target re treading  Target recovered fuel oil (PFO) which accounted Reduce energy consumption per for over half the fuel used. Increase the use of fuels derived from waste tonne for the overall business by a used in cement production to 70 per cent total of 20 per cent by end 2012 and in particular increase the use of biomass based on 2005 baseline. Above: Investments totalling over £2 million will be made at Ribblesdale by end 2012. and Ketton cement works to enable greater use of Profuel.

16 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 17 CO2 emissions CO2 emissions from transport from production Efficiency improvements Tough target drive emissions reduction Increase in remains in sight rail transport CO2 emissions per tonne fell from 4.38 to We will be seeking further opportunities We remain committed to achieving our target 4.25kg. Since much of the data is based to increase the overall quantity of of reducing carbon emissions by five per on DEFRA reporting co-efficients (due to a products delivered by rail. cent per tonne by 2012 based on 2008 high proportion of our fleet being franchisee- We continue to promote improvements in 33% figures. But we accept that this may not be operated), this gives an indication of our our road transport, with a focus on reducing possible in the current market as increased transport footprint but is influenced mostly empty vehicle movements, improving truck production volumes will be critical to success. by the mode of transport. The cement and building products fleets, which are largely utilisation and increasing the use of articulated  Targets vehicles with greater fuel efficiencies for Our £54 million soft mud brick factory at company-owned, have accurate consumption Reduce transport CO2 emissions aggregates and asphalt. In the cement division Measham in Leicestershire, opened in 2009, data which has shown improved efficiency. per tonne delivered by: we have a fuel champion tasked with cutting is making considerable savings in energy Each business line has dedicated logistics diesel consumption. This includes training 1. Reducing empty mileage by consumption. The factory is the most modern specialists tasked with ensuring our vehicles for the company’s 200 drivers and a detailed 10 per cent in cement and building and efficient in Europe with the capacity to are operated to the maximum benefit of the assessment of the fuel efficiency of all existing products fleet by the end of 2012 produce 100 million bricks a year. It uses business and the environment. We have a and new vehicles. Average fuel consumption based on end 2009 figures. 50 per cent less energy than conventional policy of purchasing low emissions vehicles in the building products division rose from 2. Increasing average payloads soft mud brick plants. The 170 metre long for both our lorry fleet and site plant. 7.1 to 7.4 mpg following improved driver of cement fleet by 2.5 per cent tunnel kiln, fired by natural gas, is designed training and phasing out of older vehicles by the end of 2012 based on for maximum heat efficiency. Waste heat from We again increased the proportion of cement but still remains behind our target of 7.6. end 2009 performance. the kiln is used to dry the bricks before firing. and aggregates transported by rail, thanks to buoyant markets in London and south east 3. Completion of Euro 5 engine The average CO2 emissions for the 401 where we have the majority of our depots. installations for cement and fleet cars we purchased for employee building products fleet by 2015 use in 2011 was 117.7 g/km compared (with subsequent particulate and Inside the £54 million soft mud brick factory at Measham in Leicestershire. to a fleet market average of 137g/km NOx emissions reduction). and a total market average of 140g/km. 4. Driver training in the building Kilogrammes of CO per tonne of product 2 products fleet to achieve a three per Kilogrammes CO2 per tonne product Change since Baseline 2008 2009 2010 2011 cent reduction in fuel consumption. 51.00 2008 CO2 emissions from transport 5. Fully implementing optimisation 50.50 50.45 50.09 49.94 49.35 -2.18% technology software within Tonnes delivered kg CO2 / tonne Total distance travelled km Tonnes CO2 / year

2 50.00 the aggregates and asphalt 2009 30,248,445 4.27 127,889,364 129,236 fleet by 2012. 49.50 Tonnes of CO2 from production 6. Carrying out a full review of

Kg CO 2010 32,929,885 4.38 135,428,406 144,339 Change since 49.00 Baseline 2008 2009 2010 2011 vehicle movements throughout the 2008 2011 34,195,216 4.25 135,536,116 145,420 48.50 UK leading to a new rail strategy 2,962,068 2,014,555 2,062,098 2,135,523 -27.90% Historic data has been amended since last year's report incorporating return journeys throughout and improved data with at least one project identified 48.00 where it has become available. for progression by 2012. 2008 2009 2010 2011 2010 data has been amended since last years report incorporating minor corrections. Year 7. Preparing a programme to extend Mode of transport Cement road fleet the use of articulated vehicles with average payloads – tonnes annual reporting on progress. This  Target Road Rail Water will include completing trials of 2009 27.37 2009 92.15% 6.80% 1.05% non-tipping articulated vehicle Reduce carbon emissions by technology and a review of 2010 27.98 five per cent per tonne by 2012 2010 91.73% 7.09% 1.18% customer site limitations. based on 2008 figures. 2011 89.89% 9.19% 0.92% 2011 27.94

18 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 19  Sustainable consumption and production

Environmental incidents and emissions Complaints fall by 20 per cent As part of our environmental management Emissions from cement production Incidents, complaints systems we record incidents1 and In the last 10 years there has been and prosecutions 2 complaints . Reports are generated monthly major investment in new plant and Incidents Complaints Prosecutions and systems are in place for recording equipment, resulting in improvements 2009 131 516 0 and tracking any required actions. of non carbon emissions. 2010 192 297 1

In 2011, internally reported incidents rose The Sulphur Dioxide (SO2) emissions from 2011 519 225 0 but complaints fell by 20 per cent. This is cement kilns are related to the presence because we encourage employees to report of volatile sulphur compounds found in the incidents and near misses and are better raw materials. All three of our cement plants Cement specific emissions – able to deal with them before they have any operate at SO2 emission levels significantly external impact. We have also introduced below the EU best available technique kilogrammes per tonne

a validity test for complaints to ensure that reference document levels of 200-400 mg/ Dust to air NOx to air SO2 to air 3 they are legitimate. We use our Entropy Nm . In 2011 our plants’ SO2 emissions were 2009 0.09 1.08 0.15 software to record incidents, near misses Ketton 30, Ribblesdale 112 and Padeswood and complaints and improve reporting. 67 mg/Nm3. We publish regular reports 2010 0.11 1.29 0.17 It allows us to analyse complaints and on emissions from our cement plants on 2011 0.10 1.18 0.17 introduce appropriate mitigation measures. our website at www.hanson.com/uk NOx – Oxides of Nitrogen, SO2 – Sulphur Dioxide. We continue to improve our plants to reflect best practice. One example of this is a new Other Transport 4% 7% ready-mixed concrete batching plant at Pannal near Harrogate in North Yorkshire has been built inside a warehouse, reducing environmental impacts and improving employee Noise welfare. It means it can be operated close 14% to a residential area with no concerns about potential issues such as dust and noise. Incident Dust 36% Quality and Note: type environmental 1 Occurrences noted by our own staff which Odour may or may not have led to a complaint. 25% manager Tim Fox checks a dust 2 Those arising from external sources.  Target monitor outside Ketton cement Blasting 100 per cent compliance with works in Rutland. 13% all environmental legislation.

Visual 1% 20 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 21 Reduction in kg waste per tonne 30%

Waste minimisation Materials efficiency and recycling Waste Cement replacement target achieved The cement replacement Regen (ground Recycled and secondary materials reduction granulated blastfurnace slag) reduces embodied 2009 2010 2011 Definition CO2 in concrete and provides a number of other benefits. Its use in ready-mixed concrete Regen and any alternative targets By-products or waste used 49.52% 45.28% 46.56% material as a % of total cement enabled us to hit our target of 40 per cent. as raw material in cement and Regen production exceeded A new indicator introduced by our Recycled aggregates used Recycled aggregate as a % in precast concrete and 45.82% 55.51% 54.34% parent company HeidelbergCement of total aggregates used The amount of waste being sent to Waste to landfill kg waste/tonne product tonnes concrete blocks quantifies the percentage of concrete landfill fell by over 6,000 tonnes in 2011 0.8 26,000 Cement replacements used plants which recover more than half of Cement substitutes as a % in precast concrete and 12.05% 11.19 % 11.05% and we have already exceeded our target of total cement use 24,000 any surplus concrete generated. This concrete blocks of a 25 per cent reduction by 2012 based 0.7 rose from 65 to 77 per cent in 2011. Recycled materials used on 2009 data. The amount of waste Clay replacements in bricks 3.90% 1.99% 3.01% 22,000 as a clay replacement generated per tonne of product also fell. 0.6 Our asphalt plants can use up to 25 per 20,000 cent recycled material in base course mixes. Aggregates recycled and sold 2.20% 1.63% 1.17% Sales The majority of our sites are included The average used fell slightly to 9.36 per % of recycled aggregate and 0.5 18,000 Recycled aggregates in asphalt 11.38 % 9.74% 9.36% within a single contract with a national filler used in asphalt

Tonnes cent (including the use of filler dust, a by- waste disposal company which enables us 16,000 product). Our target for 2012 is 12 per % of recycled aggregate used to control the process more effectively and 0.4 Recycled aggregates in concrete 0.16% 0.08% 0.02% cent, but this will be tough to achieve in in ready-mixed concrete 14,000 provide further data on the quality and types Sites recovering over 50% the current market as fewer new roads Sites which recover Not

of waste being produced. All waste generated Kg waste / tonne product 0.3 65% 77% of process waste (inc third 12,000 requiring base course materials are being surplus concrete reported is recorded on our BSI Entropy software. party recycling) constructed. The new company structure, Cement replacements in % of cement substitutes in 0.2 10,000 38.46% 38.43% 40.01% Some of the cement by-pass dust diverted which brings together our asphalt and road concrete (Regen, PFA) ready-mixed concrete 2009 2010 2011 from landfill has been stock-piled at sites in surfacing divisions (contracting), will ensure anticipation of potential re-use in agriculture Years we maximise opportunities for recycling. in the appropriate season in 2012.

Cement specific waste – by-pass dust Previous page: A reclaiming system at Glasgow Waste to landfill  TargetS central concrete plant separates water and solids for Dust Dust produced Dust diverted reuse and means no waste material is sent to landfill. Waste Kg waste/ landfilled 1. Reduce waste to landfill by 25  TargetS tonnes from landfill tonnes tonne product tonnes per cent by the end of 2012 Top right: West Drayton asphalt plant near Uxbridge 1. Increase recycled materials in asphalt has been modified to allow up to 25 per cent of 2009 24,739 0.76 2009 7,808 4,584 41% based on 2009 data. to 12 per cent by the end of 2012 recycled material to be added to new asphalt mixes. 2. Divert from landfill 50 per cent (including filler). 2010 22,502 0.62 (-19%) 2010 5,619 2,979 47% of by-pass dust generated by 2. Increase the use of cement replacements cement production by 2012. 2011 16,461 0.43 (-43%) 2011 9,409 930 90% in concrete to 40 per cent by 2012.

22 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 23  Natural resources and enhancing the environment

Water Drive to reduce mains water use Use of mains water fell in terms of litres The service includes water audit, leak detection Mains water – litres per tonne per tonne, largely due to the sale of our and repair, bill validation and data logging. 40 specialist recycling business SRM but also due to reduced consumption in cement We also make products which are designed 38 and aggregates. Controlled water use to capture and save water. Hanson Formpave 36 increased, reflecting our drive to reduce produces the Aquaflow permeable paving the use of mains water where possible. system. Aquaflow is a sustainable urban 34 drainage system (SUDS) which prevents We continue to review water supply and usage run-off and storm flooding from paved 32 to reduce our water footprint and lower water areas and collects and filters rain water 30 charges. During 2011 we employed specialist for later use. Its Thermapave system 2009 2010 2011 consultants to help reduce water consumption incorporates geothermal heating and cooling, and save money. reducing reliance on gas or electricity.

Water consumption Total T arwaterg etsconsumption – litres per tonne Mains water Controlled water 280 90 1. All business lines to reduce Cubic metres litres per tonne Cubic metres litres per tonne Buidling products Concrete 270 mains water consumption per 88 2009 1,382,384 38.97 8,809,432 248.34 tonne of product by five per 2010 1,398,355 38.42 (-1.41%) 9,000,063 247.28 260 cent by the end of 2012 based 86 2011 1,255,752 32.36 (-16.96%) 9,868,388 254.34 on 2009 figures. 250 Controlled water comes from natural sources (boreholes or rivers). 2. Concrete and building 84 Most of it is re-circulated in closed washing systems, therefore is not consumed. Concrete 240 products to reduce total

Building products water consumption per tonne 82 230 produced by two per cent by the end of 2012 based Business line total consumption – litres per tonne 220 80 We have groundwater on 20092009 figures. 2010 2011 Concrete Building products recirculation systems 3. Continue to improve dataYears on at many of our sites. 2009 87.55 235.25 Mechanical engineer ground water consumption in 2010 85.99 (-1.78%) 251.30 (6.82%) Rodger Lowther takes a quarries and cement plants sample at Ketton cement 2011 83.43 (-4.70%) 273.15 (16.11%) where we have water works in Rutland. recirculation systems.

24 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 25 Above left: Peregrine Quality and performance Site stewardship Site stewardship falcon chicks reared at a quarry in the North 2009 2010 2011 of England. Customer survey defines key objectives Site action Number relevant sites (mineral extraction sites) 102 102 84 Above right: Internationally important finds have been Number of sites with approved restoration plans 99 (97%) 101 (99%) 83 (99%) discovered at Must Farm We carried out a major customer satisfaction Our £54 million Measham brick plant in Not clay quarry near Sites with high biodiversity value 46 59 survey in 2010 with the results taken up by Leicestershire reached its full capacity during plans continue reported Peterborough including a small flotilla of six each business line as objectives for 2011. the year. The factory produces the Hanson Not Sites with high biodiversity value which have BAPs 33 40 log boats. For more This proved to be a valuable exercise which Ecostock™ range — the most environmentally reported to rise information visit we intend to repeat in 2012, with the friendly stock brick range in the UK. Active sites with BAP/GAP 50 58 61 www.mustfarm.com outcomes again being used to define our The number of biodiversity and geodiversity Non-active sites with BAP/GAP 2 3 7 strategy. The survey will cover a random We continue to invest in development of new plans (BAPs and GAPs) in place increased selection of large, medium and small customers. products, either working with external partners by 11 and we now have action plans in place Active marine sites with BAP/GAP 3 3 3 or the HeidelbergCement Technology Centre at 70 per cent of our active relevant sites. Total number of sites with BAP/GAP 55 64 71 We are the UK’s leading producer of Regen in Germany. These include Thermapave — a (ground granulated blast furnace slag) a paving system which incorporates geothermal In 2010 we introduced a new indicator looking Total number of BAPs (inc marine) 48 59 68 high-quality cement replacement used in heating and cooling — and ERA — a low at quarries with high biodiversity value. These Total number of GAPs (inc marine) 21 22 24 are defined as those located within 500 ready-mixed and precast concrete. During energy asphalt. Hanson Structherm supplies Total number of BAPs and GAPs in place 69 81 92 the year we re-launched the product under and fits external wall insulation (EWI) metres of an SSSI (site of special scientific the brand name Regen to broaden its panels to refurbish old homes and provide interest) or similar designation. The number Relevant sites are those that have been active in the last three years appeal to specifiers and promote its low- vastly improved insulation properties. of these sites where BAPs are being actively carbon credentials. Using Regen can greatly implemented increased by 20 per cent. reduce the embodied CO in concrete. 2 Total number of BAPs (including marine) Total number of GAPs (including marine) 70

60 In 2011 HeidelbergCement launched an international research competition aimed at promoting biodiversity on its mineral 50 extraction sites. The Quarry Life Award, which carries prizes of up to €30,000, is designed to find new ideas for the 40 conservation and promotion of species diversity in quarries.  TargetS 30 Five UK sites are participating in the award. Projects will be judged 1. To implement and report on a customer Total number later this year by a panel comprising in-house and independent satisfaction survey across the main 20 experts. For further information visit www.quarrylifeaward.com business lines before the end of 2012 2. To implement fully CE marking for all 10 products manufactured or supplied  Target Above left: Hanson ERA a low energy Above right: The Hanson House at the Building under a harmonised European standard asphalt being used on a road project where Research Establishment’s display site in Watford. Increase BAPs and/or GAPs by 10 per before the end of June 2013. 0 reduced road management costs and quick The house showcases a full range of Hanson 2009 2010 2011 year between 2009 and 2012. road opening was required. products and promotes their sustainability credentials. Ye ars 26 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 27  Our business

Hanson UK is a leading supplier During the year we closed our Saxon brick Hanson Asphalt and Contracting Production operations 2011 Production volumes 2011 of heavy building materials to the works at Whittlesey in Cambridgeshire and brings together management of our asphalt (million tonnes unless stated) closed or mothballed a number of smaller production sites and a national road surfacing Aggregates depots and wharves 18 construction industry. We produce Aggregates 24.96 production sites to reflect market conditions. and infrastructure contracting business, aggregates (crushed rock, sand and Asphalt plants 35 We also sold our specialist recycling business, which also includes a civil engineering Asphalt 3.19 gravel), ready-mixed and precast Solvent Resource Management Limited arm specialising in construction of wind Bagged products plants 14 Ready-mixed concrete (million concrete, asphalt and cement- 3.90 (SRM) to Tradebe Environmental Services farms and waste-to-energy plants. The cubic metres) related materials and a range of Limited. SRM processes waste industrial division also includes Hanson Structherm, Block paving plants 1 building products. We are part of solvents to create alternative fuels for our manufacturers and installers of structural The Competition and Market Authority’s market data order prevents us publishing our cement volumes. cement kilns and we have negotiated a cladding systems, and Irvine-Whitlock, a Brick works 8 the HeidelbergCement Group, Bagged cement and aggregates 1.11 continuing supply agreement with Tradebe. specialist brick and block laying contractor. which has leading global positions Cement depots and wharves 6 Precast concrete and flooring 0.19 in aggregates, cement, concrete At the end of the year we restructured Hanson Cement is a leading manufacturer of Cement plants 3 and heavy building products. our quarry products division from a multi- cement, both in bulk and in bags, and produces Bricks (million) 426 product regional structure into three national Regen (ground granulated blast furnace slag) Concrete/aircrete block plants 8 Turnover for the UK business in 2011 was product lines — aggregates, concrete and – a cement replacement in ready-mixed and Blocks (million cubic metres) 0.92 £1,208 million. Capital investment for the asphalt and contracting – to sit alongside precast concrete. The division includes our Regen (GGBS) plants 3 year totalled nearly £40 million. Our principal our cement and building products divisions. packed products business, which produces markets are in England and Wales and the Marine dredgers 8 a range of bagged cement, cementitious Hanson UK production sites central belt of Scotland. We have no production Hanson Aggregates produces and Precast concrete and flooring and aggregate products, Hanson Formpave, 3 operations in Northern Ireland. We operate over plants distributes crushed rock, sand and gravel which specialises in paving and sustainable Operation 350 manufacturing sites and employ around from a network of over 80 quarries, depots drainage systems, Hanson Bath & Portland Quarries – sand and gravel 31 4,800 people. Jobs range from specialist and Marine licences and wharves. The division includes Hanson Stone, a leading supplier of natural stone professional managers through to production Quarries – crushed rock 27 Aggregates Marine, Europe’s largest producer masonry, and Hanson Floors and Precast, operatives. Employee wages and benefits paid of marine-dredged sand and gravel which which makes precast concrete products. Ready-mixed concrete plants 193 in 2011 totalled more than £120 million. operates eight trailing suction hopper dredgers delivering to wharves in the UK, Hanson Building Products is one The location of our operations is determined Recycling/landfill sites 17 the Netherlands, Belgium and France. of the UK’s largest producers of clay by a number of factors, not least geology and bricks and also makes Thermalite TOTAL 375 planning constraints. Where practical, our Hanson Concrete is the UK’s largest supplier (aircrete) and aggregate blocks. production sites are located close to core of ready-mixed concrete from a network markets to reduce the costs and impact of of static and mobile production plants. transport. We operate a series of depots and wharves, supplied by road, rail and sea, to ensure the efficient transfer of aggregates and cement to areas of greatest demand and where local materials are not readily available.

Business line definitions from August 2012.

28 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 29 Summary of KPI performance

KPI End 2012 target Current position Status 100% coverage all production sites 100% Achieved ✓ No of sites with 14001  Corporate governance Achieve 14001 for all contracting services Irvine Whitlock and Structherm outstanding Ongoing Management systems for No of sites with 9001 100% coverage at all sites 100% sites and contracting services Achieved ✓ continual Accredit all health and safety systems Cement and Contracting achieved improvement No of sites with 18001 Ongoing to 18001 by end 2012 – other divisions ongoing Responsible Responsible sourcing for all production sites Certification completed for all production sites Achieved Corporate governance HeidelbergCement Group The central parts of the sustainability strategy sourcing (BES 6001) ✓ Hanson UK is part of the HeidelbergCement sustainability strategy are derived from the core business and its Reduce LTIs by 13% year on year Average of 24% reduction year effects on the environment and society. Health and safety LTI (50% in next 5 yrs from 2008 data) Target exceeded Group. The UK operations are managed As a company that makes intensive use of on year (since 2008 data) ✓ within HeidelbergCement’s Western and raw materials, HeidelbergCement regards Sustainable development means ensuring a LTI severity rate – no target balance between making profit and securing Northern Europe Group area. The managing climate protection and the securing of Stakeholder performance Hold annual stakeholder event New target Ongoing board member responsible for this area is future viability through good corporate Creating resources as the principal foundation for future 100% of production employees to be covered by governance. The business therefore strives sustainable All production employees in 9001/14001 schemes Achieved Daniel Gauthier. Hanson UK’s chief executive development. Efficient production processes communities ISO 14001/9001 training systems. ✓ officer Patrick O’Shea reports to Daniel and the increasing use of alternative fuels and to act in a socially and ecologically responsible Employment and skills Establish training records in LMS in 2012 and Gauthier. You can find more details about raw materials make an important contribution way, considering the needs of society as a meet the targets in the MPA 'Safer by New target Ongoing Competency' programme our UK management structure and further to this vision. Group-wide standards for whole. The publication ‘Sustainability Ambitions Ensure all relevant sites are proactive in liaising information on our range of products and 2020’ clearly defines the long-term nature Local community 74% Ongoing environmental protection and occupational with their local communities by end 2012. services on our web site www.hanson.com/uk of our commitment, integrating sustainability health and safety help ensure ambitious Reduce energy consumption per tonne by 20% and social responsibility into our corporate Energy efficiency 17.96% Ongoing goals are implemented worldwide. Quarries by end 2012 (2005 baseline) For further information about corporate from which raw materials are extracted are strategy as a vital pillar. Responsible economic governance and investor relations visit Increase the use of alternative fuels used in Alternative fuels 54.65% Ongoing returned to a natural state or put to agricultural activity is the basis of our long-term success. www.heidelbergcement.com Climate Waste as fuel cement production to 70% and in particular use. Increasingly the company is opting for Biomass has increased annually from 16% in 2008 You can read more about HeidelbergCement’s change and increase the use of biomass by 2012. Ongoing restoration to nature conservation, thus helping energy to 24% in 2011 sustainability strategy and ambitions Reduce carbon emissions by five per cent per to preserve biological and species diversity. CO from producton Current reduction is 2.18% Ongoing for 2020 on the Group website at 2 tonne by 2012 based on 2008 figures.

www.heidelbergcement.com Reduce CO2 emissions per tonne delivered CO from transport Data has fluctuated for last three years Ongoing 2 by a number of business line targets Environmental incidents 100% compliance with legislation No convictions in 2011 Ongoing and emissions Divert from landfill 50% of by-pass dust 90% Target exceeded generated by cement production by 2012. ✓ Sustainable Waste minimisation consumption Reduce waste to landfill by 25% by the 43% Target exceeded and end of 2012 based on 2009 data. ✓ production Increase recycled materials in asphalt to 9.36% Ongoing Materials efficiency and 12% by 2012 (including filler). Recycling Increase the use of cement replacement 40% Achieved materials in concrete to 40% by 2012. ✓ All business lines to reduce mains water 16% overall reduction. All divisions apart from consumption per tonne produced by five per cent Ongoing building products exceeding 5% by the end of 2012 based on 2009 figures. Water Concrete and building products to reduce total Concrete 4.7% reduction Target exceeded Natural water consumption per tonne produced by two per ✓ resources cent by the end of 2012 based on 2009 figures. Building products 16.1 % increase Ongoing and Implement a customer satisfaction enhancing New target Ongoing survey before end 2012 the environment Quality and performance Implement CE marking for all products manufactured or supplied under a harmonised New target Ongoing European Standard before end June 2013 Site stewardship Increase BAPs and/or GAPs by 10 per year Average 11.5/year Target exceeded and biodiversity from 2009 to end 2012 ✓

30 | Hanson UK Performance and sustainability report 2012 Hanson UK Performance and sustainability report 2012 | 31 Smartphone scan code 14 Castle Hill,MaidenheadSL6 4JJT:01628 774100E:[email protected] W:www.hanson.com/uk Hanson UK and suppliersofconstructionproducts. (CPA), manufacturers which representsUK of theConstructionProducts Association the builtenvironment,andwearemembers mission istoimprovethesustainabilityof whose Green BuildingCouncil(UKGBC), We arealsofoundingmembersoftheUK and dataforallMPA sustainabilityreports. economy.to theUK We provideinformation which togethercontribute£5billionofvalue concrete, lime,mortarandsilicasandindustries, represents theaggregates,asphalt,cement, Association (MPA), which thetradebody We aremembersoftheMineralProducts policies acrossallourbusinesslines. industry indevelopingrobustsustainability to ensureweunderstandandinfluencethe We workcloselywithmanyorganisations credentials. our sustainability and competitorstomaximise together withpartners,stakeholders We recognise theneedtowork for sustainability Working together www.cnp.org.uk www.constructionproducts.org.uk www.ukgbc.org www.mineralproducts.org which operate within the parks. businesses, other with and Parks National for Campaign the with debate and discussion for aplatform provides which Parks, National for Forum Corporate of the We members are sourcing certificates. or [email protected] 774100the marketingdepartmenton01628 Please letusknowyourthoughtsbyringing stakeholders isessentialtothisprocess. and qualityofourreport.Feedback from Each yearwelooktoimprovethecontent Your feedback policy of oursustainabilityreport, sustainability. You canalsodownload copies its productsandourcommitmentto the company,for moreinformationabout Visit ourwebsiteatwww.hanson.com/uk information Further and environmentalresponsible

www.rspb.org.uk The RoyalSocietyfortheProtection ofBirds www.bto.org The BritishTrust forOrnithology www.carbontrust.co.uk TrustThe Carbon www.heidelbergcement.com HeidelbergCement AG of information sources useful Other site at www.hanson.com/uk at site web of our section report sustainability the in disclosures standard GRI of the location the giving You atable find B. Level can Application be to reporting our assessed We self- have reporting. sustainability InitiativeReporting framework (GRI) for Global the on based is document This Initiative Reporting Global

LT10092 08/2012/1939_MICH