2015 Marshalls / 2016 United Nations Global Compact Communication on Progress 1

United Nations Global Compact Communication on Progress Marshalls / 2016 United Nations Global Compact Communication on Progress 3

INTRODUCTION...

The United Nations Global Compact (UNGC) was launched in 2000 to harness the power of collective action in the promotion of responsible corporate citizenship. The Compact is a framework for businesses that are committed to aligning their operations and strategies with the ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption.

As the world’s largest global The UNGC is not a regulatory corporate citizenship initiative, the instrument, but rather a voluntary Global Compact is concerned with initiative that relies on public demonstrating and building the social accountability, transparency and legitimacy of business and markets. disclosure to complement regulation Marshalls plc became a signatory of the and to provide a space for innovation UNGC in January 2009 and a member of and collective action. the UK Network later the same year. This is the Company’s seventh Communication on Progress and outlines how Marshalls is aligned with To mainstream the ten the ten principles and how, throughout principles in business activities 2016, the plc intends to develop its 1 activities in support of the framework around the world; laid out by the UNGC.

To catalyse action in support of broader UN objectives, 2 such as the Sustainable Development Goals. 4 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 5

UNGC TEN PRINCIPLES CONTENTS

HUMAN RIGHTS LABOUR ENVIRONMENT ANTI-CORRUPTION 6 Statement of Support for the UNGC by Martyn Coffey, Marshalls CEO 7 Statement by UNGC UK Chairman, Chris Harrop PRINCIPLE 3: PRINCIPLE 7: PRINCIPLE 10: PRINCIPLE 1: 8 Foreword and Focus for 2016 by Chris Harrop, Group Marketing Director; Responsible for Sustainability Businesses should support Businesses should uphold Businesses should Businesses should work and respect the protection the freedom of association support a precautionary against all forms of 12 Scope of Operations and the effective approach to environmental corruption, including of internationally 14 Achievement Indicators proclaimed human rights; recognition of the right to challenges; extortion and bribery. collective bargaining; 15 Third Party Assurances PRINCIPLE 8: PRINCIPLE 2: 15 Marshalls’ Brand Manifesto Make sure that they are PRINCIPLE 4: Undertake initiatives not complicit in human The elimination of all forms to promote greater 16 Marshalls the Superbrand rights abuses. of forced and compulsory environmental labour; responsibility; and 18 Product Innovation 24 Leadership Blueprint PRINCIPLE 5: PRINCIPLE 9: 30 Sustainable Development Goals The effective abolition of Encourage the child labour; development and diffusion 32 Fairstone & UNICEF - from local engagement to global advocacy and systemic change of environmentally friendly 38 Focus on Modern Slavery; Transparency in the Supply chain PRINCIPLE 6: technologies. The elimination of 40 Human Rights discrimination in respect 48 Labour of employment and occupation. 58 Environment 64 Anti-Corruption 68 Business in the Community - Business Class 72 Best Companies Survey & Employee Engagement & Wellbeing 76 Training & Development 77 Health & Safety 78 Award Success 79 Celebrating Responsible Business Excellence 80 Third Party Recognition & Awards 83 COP Feedback 84 GRI Performance Indicators 6 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 7

STATEMENT BY UNGC UK STATEMENT CHAIR CHRIS HARROP

I am looking forward with anticipation to With the ongoing work of the UK secretariat, Statement of Support for the UNGC the UN Global Compact Leaders Summit on the commitment of trustees and the energy of 22-23 June 2016 in New York which will be an the active network members, 2016 will see us: Martyn Coffey, Marshalls CEO important milestone for kick-starting business action on the new sustainable development • Continue to focus upon increasing the agenda. Here global companies of all sizes number of UK organisations engaging with Each year as I write this statement of support contribution; engaging with governments, and from all sectors will convene and show the UNGC framework and the UK network; for UNGC I recognise that it is a reaffirmation collaborating with UN partners, developing how they are innovating their operations and of Marshalls commitment to uphold the UNGC innovative products which respond to strategies to advance the SDGs. • Continue to forge links with other UN entities principles to which we committed some seven environmental challenges, addressing modern & initiatives which have the potential to years ago. It gives me the opportunity to slavery and transparency in our global supply The Summit will make clear the opportunities support corporates in the effective delivery reflect on our sustainability journey, to consider chain. Essentially were making sustainable that lie within the SDGs and aims to unleash of UNGC principles; how far we have come and what yet lies ahead. choices on a daily basis that are both good for the potential of turning global goals into local business and for society. business. Through motivational talks, intimate • Continue to focus network educational The 1st of January 2016 saw the 17 Sustainable roundtables and SDG-themed networking activities on the key issues of; human rights, Development Goals (SDGs) come into force.* Empowered by our brand values of leadership, opportunities, signatories will doubtless modern slavery, women empowerment, Adopted by world leaders in September 2015 excellence, trust and sustainability I can say be inspired to shape the business models, children’s rights & business principles, water, at an historic UN Summit these SDGs now with confidence that Marshalls' team works products and services of tomorrow. climate change & biodiversity, business & provide the focus for the next fifteen years and passionately and diligently to uphold the UNGC peace. Martyn Coffey, Marshalls CEO Chris Harrop, Marshalls’ Group call all countries to mobilize efforts to end all pillars of human rights, labour, environment My term as Global Compact Local Networks Driving Business Growth Marketing Director, (Responsible for forms of poverty, fight inequalities and tackle & anti-corruption. By doing so, and doing the Chair comes to an end during 2016 and I’m I look forward to serving out my term as Through Sustainability Sustainability), UNGC UK Network climate change. right thing, we are leveraging sustainability to pleased to say that our UK Network is in great Chair during 2016, and to working with my Chair, ETI Non-Executive Director drive competitive advantage for our business. shape and is going from strength-to-strength. colleagues at the UK Network to the very best I welcome the SDGs as it is clear to me that Global Compact Local Networks activity is of my ability. I am delighted to handing over for businesses to succeed, they require access This UNGC Communication on Progress sits extremely important in advancing corporate to my successor an extremely robust and to energy, good governance and sustainable alongside our Annual Report as the main sustainability at the grassroots level by helping engaged Network. I will continue to actively economic development, among other vehicle for sharing our sustainability progress. “Businesses everywhere play a key companies understand what responsible engage with and support the UK Network and fundamental factors, and that these same Read on and you too will see for yourself the role in shaping the future, and UN business means within a national context. to demonstrate through Marshalls plc how underlying needs overlap with public sector actions which so clearly show that sustainability Global Compact participants lead organisations can contribute to the sustainable priorities underpinning peace, security and is at the heart of all that we do. the way. The SDGs give important All companies face unique challenges in development agenda and deliver a clear poverty reduction. new direction to the UN Global striving to operate responsibly and have many competitive advantage for our business as a different opportunities to make a positive result of UNGC engagement. Companies can do a great deal to address Compact’s founding mission impact. Those companies with operations and these common interests and create long- to encourage companies to do supply chains extending around the world also term value and I'm proud to say that through business responsibly – based on need to understand locations far away from our engagement with UNGC over the past our ten universal principles – and headquarters and be able to view sustainability seven years Marshalls has been making a rich to provide solutions to global through a local lens. It is here that the UK * Source: https://www.unglobalcompact.org/ challenges” * Network provides so much in terms of access to AboutTheGC/guide_to_corporate_sustain- high quality information, high calibre speakers ability.html and importantly safe spaces to share, discuss Lise Kingo, Executive Director, * Executive Update: Annual Letter to United UN Global Compact and debate pressing issues. Nations Global Compact Participants : https:// www.unglobalcompact.org/news/3281-02- 04-2016 8 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 9

TAINABLE US BUS FTSE4GOOD MEMBERSHIP GLOBAL REPORTING INITIATIVE S BLE SPEC I S VAILA IFICA N LL C A TIO E Regular readers of our COP's will be very familiar Marshalls remains focused on being a successful LI BS EN ISO 14001 N S A B 9 S H PU 9 M S ATIONS GLOBAL C with our sustainability model which incorporates and profitable business whilst minimising our D N OM O R ITE ATE SUST PA N RPOR AINA CT U CO BIL D A R ITY our membership of the UNGC and FTSE4GOOD, impact on the environment, looking after the FO L T EA E M IN D R E L P R and our continued commitment to Integrated people and communities where we operate, E S U H L B Environmental IP Water use Management Systems. It also continues to striving to be innovative and to respond to market

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Chris Harrop, Marshalls principles regarding the environment, labour, and sustainability. These are the values that our of the challenging & forging work that we’ve future and ensure that we’re well positioned to human rights and anti-corruption. business is built on. Group Marketing undertake in the last twelve months. Our work face the challenges as well as take advantage of during 2015 has been very much shaped by the emerging opportunities. Director, Responsible for the business and human rights agenda, our involvement in UK Governments consultation Our CEO, Martyn Coffey, champions Marshalls Sustainability. work leading up to the introduction of the strategic approach to sustainability and Modern Slavery Act 2012 and discussion made plane in his Statement of Support THE VALUES OUR BUSINESS IS BUILT ON around the SDGs. that, ‘...essentially were making sustainable LEADERSHIP is not just about being a manager. TRUST means that we are open, honest, fair and choices on a daily basis that are both good It means that we should all set the standards that consistent. We must always follow through on our Foresight and good planning ensured that we for business and for society.’ It’s the way that others aspire to, no matter what our role is within promises, respect others’ talents and treat each began our human rights impact assessment we do business and the UNGC framework is the business. We should all take responsibility for other fairly whilst always acting with integrity. programme well in advance of the legal a fundamental part of Marshalls’ long-term our actions and try to set a good example every requirement now laid down in UK company business strategy. single day. SUSTAINABILITY means that we are committed law. In 2010 we began our global Human to doing the right thing for the long-term good of EXCELLENCE means that we must always strive our business, for society and for the environment. Right’s Impact Assessment programme which Marshalls’ employees are all aware of the to be the best we can be. We must be ambitious This means that we must always do the right thing has over the past five years now become a businesses commitment to sustainability and and demand high performance from ourselves and consider the impact on our business and of our much larger and expansive human rights what this means to them in terms of what as well as others. We must also be innovative decisions and actions. programme of activity. This will stand us in they do here at work and also beyond in the and constantly seek to improve our performance. good stead as we move forward into an era local and global community. New employees It’s essential that we always make good our shaped by the Sustainable Development Goals are also introduced to our sustainable commitments and have pride and passion in and also as we make our first Modern Slavery approach through a specially developed everything that we do. (Transparency in the Supply Chain) Disclosure induction process. All employees also have Chris Harrop, Marshalls’ Group Statement as we are required to do now the opportunity to engage with Marshalls Marketing Director, Responsible for on an annual basis. We have also made the Certificate in Sustainability which is heartily Employees throughout the business continue to be actively involved: Sustainability, Global Compact UK decision to engage in the ILO IPEC Child Labour endorsed by the Global Compact Local Chair, ETI Non-executive Director Platform which will allow us to continue our Network UK. work regarding the elimination of child labour and the support of children’s rights around the The Leadership Blueprint continues to be globe. embraced throughout all of our operations and divisions and helps us to maintain our Andy Ackroyd, Richard Capper, Susie Fehr, Helen Taverner, Claire Quinton- David Morrell, Matthew Gibb, Nick Carr, Elaine Mitchel-Hill, Samantha Munkley, Marshalls became a UNGC signatory in 2009 leadership position within our industry. I must Commercial Energy HR Director Group Systems Auditor Tulloch, Group Head of Group Environment Group Health & Business & Human Employee Engagement and a Global Compact Local Network member admit to a quiet sense of pride and satisfaction Controller Management Head of PR Sustainability & Water Manager Safety Advisor Rights Specialist. Manager. later the same year. My tenure will come to when I see and hear employees engaging with Engineer an end during 2016 but in the meantime enthusiasm and talking to each other and our and under my guidance as Chair the Global wide range of stakeholders with knowledge of Compact Local Network UK continues to our approach to sustainability and why this is so be a platform for high level networking, important. Again, it’s the way we do business. discussion, dialogue and peer support, specialised work streams, and open lines Chris Frankland, Andrew Stalker, Richard Beal, Claire Blake, Pete Stevens, Steve Swanwick, Sophie Rowe, Nicole Gledhill, Chris Griffith, Alice Couldwell, of communication directly with UNGC International Product Head of Procurement Director Head of Domestic Group Carbon & Group Systems PR Executive Product Manager SuDs and CBP Linear Drainage Manager Commercial Product Energy Manager Manager Commercial Paving. Manager. Product Manager. Marketing Management.

These employees work alongside those with rights programme and our work on modern slavery participants and will allow Marshalls to chart special responsibilities including; Group Head and transparency in the supply chain. its progress and benchmark against other of Sustainability, David Morrell, and Group international organistations. It will also provide Our Human Rights Programme has developed Procurement Director, Richard Beal, Group Human even greater transparency regarding the steadily since 2010 and now includes human Resources Director, Susie Fehr and Business & Company’s activities. rights impact assessments, Children's Rights & Human Rights Specialist, Elaine Mitchel-Hill. Business Principles implementation, working Marshalls has again retained its Superbrand status Marshalls’ progress is monitored thoroughly and towards becoming signatories of the Women's for the sixth year running. This is a testament to on an ongoing basis against both internal and Empowerment Principles as well as quarterly the dedication and passion of everyone within the external measures. As a matter of course Marshalls human rights briefings. In addition we continue business and a feat which we are extremely proud. seeks verification from third party organisations to work closely with Indira Saxena regarding social In this our seventh Communication on Progress, which include non-governmental organisations issues in India and Sterling Smith of Just Solutions we share with you the efforts that we have made and independent auditors; The Carbon Trust, BSI, Ltd. to uphold the UNGC principles during 2015 and Wild Life Trust, ETI & BITC. We also engage with The business is working towards full Global our enduring commitment to these principles as third sector organisations as 'critical friends' in Reporting Initiative (GRI) measuring. GRI is the we move forward throughout 2016. order that we get full and frank feedback on a preferred reporting methodology for UNGC range of issues especially in relation to our human 10 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 11

FOCUS FOR 2016 FOCUS FOR 2016

UK Action Plan on Business Women's Empowerment Principles Marshalls Certificate in Marshalls is now in a position to begin a full audit against the and Human Rights Modern Slavery Internal Awareness Campaign Women's Empowerment Principles, a collaboration between Sustainability During 2015 Marshalls engaged in It is important to us that we support the UK Government’s Home UNGC and UN Women. It is our aim to complete this work during 2016 with a view to becoming a WEPS signatory. Women have a Sustainability is fundamental to Marshalls consultations with UK Government to consider Office modern slavery initiative and the work of the UK Anti-Slavery critical role to play in all of the SDGs, with many targets specifically and affects all parts of our business. the UNGPs Reporting Framework and the Commissioner. In order to do this we need to ensure that everyone recognizing women’s equality and empowerment as both the To help ensure that all employees are Modern Slavery Bill, as it neared the end of objective, and as part of the solution. Goal 5 is known as the stand- knowledgeable and engaged during its passage through Parliament. Businesses, throughout our business is clear on what modern slavery is, how to spot the signs and why it is important for our business to be vigilant. alone gender goal because 2016 we will launch 'Marshalls Certificate civil society and government delegates it is dedicated to achieving in Sustainability' which is certified by communicated their priorities and perceptions Throughout 2016 we will action an Anti-Slavery Internal Awareness these ends. Global Compact Local Network UK. This of progress under the current plan and Campaign that will include employee training, posters focusing upon online training programme harnesses developed specific ongoing work streams. slavery in the construction sector, sexual exploitation and how to spot core values of leadership, excellence, Engagement for us was important given the trust and sustainability to address the introduction of the UK Government Modern the signs and report instances of concern, a Modern Slavery reporting Children's UNGC principles - human rights, labour Slavery Act 2015 which requires all businesses app on all work phones, internal communications and face-to-face Marshalls Response to rights, environment & anti-corruption - with a turnover in excess of £36m to provide briefings. Rights & and also focuses upon responsible global an annual Statement of Disclosure detailing UNICEF's Research supply chains. the steps an organisation has taken during the Marshalls funded important UNICEF Business financial year to ensure that slavery and human research - Children's Lives Cast in Stone: trafficking is not taking place in any of its Child Labour & The Sandstone Industry Principles supply chains or in any part of its own business. in Kota & Bundi, in Rajasthan, India - which looked at the issue of child (CRBP) Throughout 2016 much attention will be given labour in the sandstone sector in India. During 2015 we CHILDREN’S RIGHTS & BUSINESS Marshalls Certificate to ensuring that our Modern Slavery Statement PRINCIPLES REPORT 2016 The findings of the research will help conducted our in Sustainability is widely circulated among our employees both organisations to continue to use second Children's and stakeholders. We will also be seeking the their unique expertise and knowledge Rights & Business Principles report against This is to certify that ...... input and guidance from our range of ‘critical of their respective fields as a private the CRBP framework. Marshalls undertook has achieved Marshalls Certificate in Sustainability ...... (date) friends’ including NGO’s, IGO’s and other sector organisation and the world our first CRBP audit in 2013 and were one of Signed ...... Chris Harrop, Marshalls Director of Marketing, knowledgeable third parties regarding our SLAVERY IS leading organisation for children to the first organisations globally to go through Responsible for Sustainability & UNGC UK Network Chair Certified by disclosure statement and the related KPI’s. improve the situation for children and this process. The work that we have done UNGC Network UK their families. Marshalls has developed as a result of the first audit has deepened CLOSER THAN a clear response to the research our understanding of how we can work in Module 5: findings and you can read more later support of children's rights. We remain wholly UNGC Principles: Environment Water; Carbon; Bio-Diversity. Modern Slavery App in the report about what we plan to do committed to supporting children's rights and throughout 2016. have identified our top 10 priorities for the This is to certify that ...... YOU THINK has achieved Module 5 of Marshalls Certificate in Sustainability ...... (date) coming year.

Signed ......

Chris Harrop, Marshalls Director of Marketing, Responsible for Sustainability & UNGC UK Network Chair Slavery is not an issue confined to THE TRUTH ABOUT

history or an issue that only exists Child Labour in the Certified by Indian Sandstone UNGC Network UK in certain countries - it is something Industry N RIGH that is still happening today. A TS M U Ilo International Platform H

IN ACTIONS T H H U G It is a global problem and the UK is no exception. It’s a growing MAN RI issue, affecting men, women and children. 1,746 cases reported PHYSICAL APPEARANCE On The Elimination Of Child in the UK in 2013. A 47% increase on the number of cases reported in 2012. But these are just the victims we know about. Victims may show signs of physical or www.modernslavery.co.uk 1 psychological abuse, look malnourished or HOW TO unkempt, or appear withdrawn ISOLATION Labour - Child Labour Platform IF YOU SUSPECT SLAVERY IS HAPPENING... Victims may rarely be allowed to travel on their own, seem under the control, influence of others, 2 rarely interact or appear unfamiliar with their neighbourhood or where they work Call the Police on 999 You can also report Using the form you If you think SPOTyou THE in an emergency, or it by calling the new can find online. have been a victim, Early in 2016 Marshalls will commit to the ILO's 101 if it is not urgent. Modern Slavery find out how you POOR LIVING CONDITIONS helpline on can get help. 0800 0121 700 I hope that you enjoy read on Victims may be living in dirty, cramped or 3 overcrowded accommodation, and / or living International Programme on the Elimination SIGNS OF and working at the same address CHILDRen’S LIveS of Child Labour (IPEC) Child Labour Platform. and finding out more about FEW OR NO PERSONAL EFFECTS CAST In STOne MODERN Victims may have no identification documents, have how sustainability is helping to build few personal possessions and always wear the same This is a natural extension of the work that we 4 clothes day in day out. What clothes they do wear may SLAVERY IS CLOSER not be suitable for their work. have been doing for over ten years and of our competitive advantage for our business. SLAVERY RESTRICTED FREEDOM OF MOVEMENT

Victims have little opportunity to move freely THAN YOU THINK 5 and may have had their travel documents partnership with UNICEF which comes to an Signs of slavery in the UK and elsewhere retained, e.g. passports are often hidden, making it even harder to recognise victims around us. Whilst not end in 2016. It will allow us to engage with exhaustive, here is a list of some common UNUSUAL TRAVEL TIMES Slavery is not an issue confined to signs which you can be aware of. They may be dropped off / collected for work on other global businesses, to share history or an issue that only exists 6 a regular basis either very early or late at night. in certain countries - it is something learning's and to further our that is still happening today. RELUCTANT TO SEEK HELP Victims may avoid eye contact, appear frightened or hesitant to talk to strangers and fear law enforcers 7 for many reasons, such as not knowing who to trust work regarding the elimination or where to get help, fear of deportation, fear of Chris Harrop, violence to them or their family. It is a global problem and the UK is no exception. It’s a growing issue, affecting men, women and children. 1,746 cases reported of child labour in the sandstone Group Marketing Director, Responsible in the UK in 2013. A 47% increase on the number of cases IF YOU SUSPECT SLAVERY IS HAPPENING... reported in 2012. But these are just the victims we know about. www.modernslavery.co.uk CHILD LABOUR & THe SAnDSTOne InDUSTRy Call the Police on 999 You can also report Using the form you If you think you sector in Rajasthan, India. IPEC In KOTA & BUnDI, In RAjASTHAn, InDIA for Sustainibility, Marshalls plc in an emergency, or it by calling the new can find online. have been a victim, 101 if it is not urgent. Modern Slavery find out how you helpline on can get help. 0800 0121 700 Summary of key findings IF YOU SUSPECT SLAVERY IS HAPPENING... engagement is a priority for us

Call the Police on 999 You can also report Using the form you If you think you following our recent second in an emergency, or it by calling the new can find online. have been a victim, 101 if it is not urgent. Modern Slavery find out how you helpline on can get help. 0800 0121 700 Children's Rights & Business Principles audit. 12 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 13

SCOPE OF OPERATIONS

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ACHIEVEMENT INDICATORS THIRD PARTY ASSURANCES

Once this report is submitted to Piloting New Achieving Good Collaborating & Initiatives Results Sharing Best the UNGC and published online, Practice it will be volunteered for peer- 79% review by a randomly selected group of corporate members and observers of the UK Network of the UNGC. Any suggested changes will be made and the report will be re-submitted, if required, to the Reviewing Feedback Delivering Best Legal Compliance & Developing Our Approach Practice UNGC following the peer review process.

As indicated in the 2010 COP, Marshalls has sought to extend stakeholder engagement in the Throughout this and all other Marshalls Each indicator is broken down in percentage COP process by inviting feedback Communications on Progress you will find a self terms, which allows any progress made to of its COP by inviting employees, Collaborating & Sharing Best Practice assessment indicator which represents what be identified by all readers of this report with customers, suppliers, partners, Marshalls believes it is achieving in relation to ease. It is also intended to make any year-on- NGOs, third parties and peers to Delivering Best Practice each of the principles. Marshalls will strive to year comparisons clear, uncomplicated and assess the company’s progress. improve its achievements year-on-year. informative. Achieving Good Results Marshalls looks forward to Marshalls initially developed its own indicators Marshalls constantly monitors best practice receiving comments from its wide for its COP reporting rather than use an existing in its sector, as well as in the field of corporate Reviewing Feedback & Developing range of stakeholders. Details one, such as the Ethos Indicators and Global responsibility and sustainability reporting. Any of where to give feedback via a Reporting Initiative (GRI) methodology. Whilst informative developments and advancements Piloting New Initiatives dedicated survey can be found at it is Marshalls’ intention to introduce GRI in this area will be introduced into subsequent Legal Compliance methodology in subsequent COP reports, it COP reports. the end of this report. has left its own indicators in place for this 2015 Please direct any feedback report. to Elaine Mitchel-Hill [email protected]

Global Reporting Initiative (GRI)

The GRI is a framework for reporting on an environmental and social impacts a Key executives, managers and individuals organisation’s economic, environmental and fundamental component in effective have undergone GRI accredited training and social performance. stakeholder relations, investment have formed a working party responsible for the delivery of GRI monitoring and reporting The goal of sustainable development is to decision, and other market relations. moving forward. Marshalls’ 2015 COP will ‘meet the needs of the present without To support this expectation, and to contain further GRI disclosure regarding compromising the ability of future generations communicate clearly and openly economic, environmental, social – labour to meet their own needs.’ (1) about sustainability, a globally shared practices and decent work – human rights, framework of concepts, consistent society and product responsibility. As key forces in society, organisations of all kinds have an important role to play in language, and metrics is required. It (1) World Commission on Environment and Development. achieving this goal. is the GRI’s mission to fulfil this need Our Common Future. Oxford: Oxford University Press, by providing a trusted and credible 1987, p.43

‘The urgency and magnitude of the framework for sustainability reporting (2) GRI Sustainability Reporting Guidelines, 2011, p.2 risks and threats to our collective that can be used by organisations of any sustainability, alongside increasing size, sector or location’. (2) choice and opportunities, will make transparency about economic, 16 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 17

MARSHALLS THE SUPERBRAND

Marshalls is proud to have retained its For clarity it is worth stating that brands cannot Superbrand status. Published annually since apply or pay to be considered for Superbrand Superbrands Annual 2016 How have certain brands managed to earn 1995, the Superbrands Annual documents status. Only following a rigorous and the privilege of being the most admired in their particular sector? some of the strongest consumer and business- independent selection process is the accolade

First published in 1995, the Superbrands books investigate some to-business brands in Britain today. The book awarded on an annual basis. of the strongest consumer and B2B brands in Britain and establish how they have managed to achieve such phenomenal success. The establishes how Superbrands manage to The 2016 Superbrands Annual features: 2015 Annual explores the history, development and achievements of some of these much-loved brands, with each case study providing achieve outstanding success. The 2016 Superbrand book provides insights valuable insights into their branding strategy and resulting work. ® 2016 Autoglass Häagen-Dazs Post Office into Marshalls’ branding strategy and business Avanti Communications Hardys Radisson Blu Edwardian, London AXA Heathrow Ricoh Arena success. Further information can be found at BAE Systems Holland & Barrett Rolls-Royce www.superbrand.uk.com Barclays Hotpoint Rotary BASF Royal Albert Hall An insight into some of Britain’s strongest brands BBC HP Sauce RSA BG Group Imperial Leather Sandals Resorts British Airways Investors in People BT Iron Mountain Searcys Caterpillar Jewson Silentnight Beds Coca-Cola Kingspan Group Silver Cross Continental lastminute.com Speedo Dulux Mace Stella Artois® EE Marshalls Stobart Group Eurostar Microsoft Tata Consultancy Services evian® MORE TH>N Tommee Tippee UPDATEFairy National Trust TONI&GUY FedEx OVO Vaillant Flymo Play-Doh Voltarol® Polypipe Weber Shandwick

SUPERBRANDS ANNUAL 2016 MARSHALLS

Promotion Brand communications for both the Brand History domestic and commercial markets focus marshalls.co.uk 1890 Solomon Marshall starts to quarry in on the company’s mission to create better Southowram, Halifax and, in 1904, spaces for all. establishes S. Marshall & Sons Ltd in West Yorkshire. In 2015, the domestic business ran an advertising campaign called ‘Paving to 1947 A second production site is opened, manufacturing lintels, steps and fence be proud of’ to promote its products and posts. In 1948 an engineering division is the Register of Accredited Landscape established. Contractors and Driveway Installers 1964 Marshalls becomes a plc with shares quoted to consumers. on the .

DID The commercial business focused on 1972 New product development sees the Marshalls is the UK’s leading manufacturer of hard landscaping Product introduction of block paving and the Marshalls places a focus on innovation and YOU KNOW? the promotion of key growth areas of famous ‘Beany Block’, which combines products and has been supplying superior natural stone and innovative quality. It is committed to producing new Marshalls stone clads business, such as water management, drain and kerb. concrete products to the construction, home improvement and Achievements Marshalls remains the only the new Bloomberg internal stone paving, rail products products that better any existing market Marshalls remains at the forefront of organisation in the world to building in the 1988 Brick manufacturer George Armitage & landscape markets since the 1890s. Marshalls believes that the better offering, to make them from the best City of and street furniture. Sons is acquired, becoming Marshalls Clay sustainable business. Marshalls was the have carbon labelled its entire London. Products. materials it can source and to care about the first company in the hard landscaping domestic range. It continues to Marshalls has also continued to invest in its environment, the better it can be and strive to create products that impact on society and the environment. its online presence with a focus on social 2004 Marshalls acquires Woodhouse, expanding industry to belong to the Ethical Trading be a constituent member of the its product offering to include design-led improve the landscapes and create happier and healthier communities. Marshalls has become synonymous with Initiative (ETI), Marshalls is committed to FTSE4Good UK Index and an active member media activity through Twitter, Facebook, street furniture, lighting and signage. YouTube and Pinterest. quality; supplying prestigious landmarks the implementation of the ETI Base Code, of Business in the Community. 2009 More than 2,000 of Marshalls’ commercial such as Trafalgar Square, whilst also caring pioneering the ethical sourcing of natural products now have a Carbon Trust Carbon Market for the environment and communities in stone paving from India and China. Recent Developments Reduction Label. In October 2015, UNICEF launched the 2011 Marshalls announces a European venture, In the public sector and commercial end which it operates. Building on its work with the ETI, in 2013 market, Marshalls focuses on developing Marshalls-funded research into child labour Marshalls NV. In 2015, Marshalls extended its Marshalls announced a three-year partnership in the quarrying sector in the northern products that help architects, local DID 2012 Marshalls is an official supplier to the commercial water management with UNICEF aimed at tackling child labour Indian state of Rajasthan. It is hoped that the London 2012 Olympic Park. An office authorities and contractors to create better range with several innovative YOU KNOW? in India’s quarrying sector and furthering opens in Xiamen, China. spaces, whether it is street furniture, findings of this research will lead to long- MARSHALLS’ POLLUTION FIGHTING NOXER PAVING drainage products, as well as Trafalgar Square is children’s rights in China and Vietnam. term interventions that will help to tackle 2013 Marshalls opens an office in North America natural stone paving, block paving, water paved with Marshalls HAS HELPED A BUSY STREET IN CUMBRIA TO adding a number of products Following its acceptance in 2009, Marshalls child labour in the stone quarrying industry and announces a three-year partnership management or anti-terrorist products. Yorkstone. REDUCEwith UNICEF.AIR POLLUTION CAUSED aimed specifically at the rail remains a signatory of the United Nations in India. Marshalls’ domestic customers range from industry. Global Compact (UNGC) and its Group 2014BY TRAFFICMarshalls is accredited BY by the Living Wage Foundation. DIY enthusiasts to professional landscapers, For homeowners, Marshalls offers the Marketing Director is Chair of the UNGC NEARLY 20% 2015 UNICEF launches Marshalls funded driveway installers and garden designers. inspiration and product ranges to create UK network. Brand Values Sales continue to be driven through the research into child labour in the Indian gardens and driveways that integrate In addition, The Carbon Trust has Marshalls believes that everyone needs places that make them feel safer, happier and Sandstone sector. Marshalls Register of Accredited Landscapers effortlessly with people’s lifestyles. In 2015, reaccredited Marshalls four times. Since more sociable; places to be themselves where they can live, play, create and grow. Its core & Driveway Installers. Marshalls launched a range of Vitrified 2009, the company has reduced its relative brand values are based on leadership, excellence, trust and sustainability. OVER THE LAST 15 YEARS MARSHALLS Marshalls has an established and growing paving, a relatively new material to the UK carbon footprint by more than 28 per cent Marshalls aims to be the supplier of choice for every landscape architect, contractor, HAS SUPPLIED ENOUGH KERB TO presence in Northern Europe, North America market, as well as a product called Pavesys and has made a commitment to reduce its installer and consumer, and for the brand to remain synonymous with quality, innovation CIRCLE AROUND THE and China, and will soon be opening an which speeds up the installation of a patio carbon emissions by more than 3 per cent and superior customer service. WORLD TWICE office in the Middle East. by up to 50%. per year until 2020.

superbrands.uk.com 18 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 19

PRODUCT INNOVATION: PRODUCT INNOVATION: MONO BEANY MONO BEANY

The growing demand for more cost effective and less complicated drainage systems has Discover Mono Beany, the led to modern linear drainage becoming the preferred choice amongst specifiers and simple way to control water contractors like. Combined kerb and drainage completes two By combining a kerb and a drain, it Mono Beany is a one piece low to medium, roles in one, intercepting and transporting effortlessly fuses strong construction, combined kerb and drainage system. water in addition to restraining the edges of rapid installation and efficient water Marshalls’ high strength M-Tech concrete roads and footways. management in one…. is cast around a plastic core. Mono Beany combines strength and aesthetics with With the introduction of Mono Beany to excellent hydraulic flow characteristics. sit alongside Mini Beany and Beany Block, Engineer It’s tough inside and out, able to cope with Marshalls now able to offer a complete Construction saving, simple to design, easy to strong flows of water and withstand 40 range of combined kerb and water drainage set out and straightforward to install. systems. Marshalls’ unique Beany product tonnes. offer combines the clear-cut advantages of Versatile range offered in a variety of invert combined kerb and drainage systems, with Contractor depths in both 45⁰ Splayed and Half Battered the benefits of a high quality, robust concrete The simple design helps you install in profiles. product. record time, finishing on deadline and Accredited and Certified with the BSI Kitemark, budget. British Standard BS EN:1433 and CE approved.

Architect It swiftly clears surface water, while maintaining a smooth flow.

MONO BEANY. THE ALL-IN-ONE KERB AND DRAINAGE SYSTEM.

THE WATER MANAGEMENT EXPERTS COMPLETE CONTROL FLEXIBLE TO FIT YOUR PROJECT

At Marshalls we’re focused on making water management more With Mono Beany, we have created the ultimate system for low to Every job is different, that’s why we have made the range as flexible effective and accessible. Building on the success of Beany and Mini medium capacity water management. Delivering expert control at as possible. Select the sizes you need to reduce cutting and waste Beany, our best selling linear drainage products, we are launching this level thanks to a combination of key features. on site. Choose from half-battered or 45˚ splayed profiles, for spaces our latest innovation in combined kerb and drainage. with slow or fast moving traffic. And add accessories to incorporate • The inlet apertures are specially designed and angled at 45˚ pedestrian crossings or roundabouts. Mono Beany is our first one-piece concrete • Made with ultra-tough M-Tech, the latest to prevent blockages and maximise drainage efficiency.

kerb and drainage system. Delivering all in concrete technology, it can handle • The new Polyethylene core creates less resistance Profile Name Length (mm) Width (mm) Height (mm) Weight (kg) Natural your water management needs in one, strong flows of water and carry up to than concrete, for a faster flow. Half Battered 1000 150 321 69 DR6630300 it’s the simple way to control water. 40 tonnes (Class D400). 500 150 321 34.5 DR6630350 Together these features ensure surface 1000 150 502 91 DR6630400 Easy to specify, quick to install and built • Its intelligent features deliver rapid water is cleared rapidly and internal 500 150 502 45.5 DR6630450 o to last. Mono Beany can bring a range of surface water clearance and efficient 45 Splayed 1000 150 321 64 DR6631200 flow is smooth and efficient. 500 150 321 32 DR6631250 benefits to your next project. drainage flow. 1000 150 502 86 DR6631300 500 150 502 43 DR6631350 • The one-piece design is ready for rapid Half Battered Centre Stone 321 1000 150 321 40 DR6631100 installation, with the potential to lay Centre Stone 502 1000 150 502 50 DR6631150 1m in a single motion, helping you finish Right Hand 321 1000 150 321 50 DR6630900 Right Hand 502 1000 150 502 60 DR6630950 projects faster. Left Hand 321 1000 150 321 50 DR6631000 Left Hand 502 1000 150 502 60 DR6631050 GET IN TOUCH Outfalls and Access Units Weight (kg) Natural Inline Side outfall 80 DR6641800 With such a wide variety of sizes, Half Battered Access Cover 40 DR6640100 profiles and accessories it’s easy to 45o Splayed Access Cover 40 DR6640200 Rodding Box for 321 System 20 DR6641850 specify Mono Beany for any job. Rodding Box for 502 System 30 DR6641900 To learn more about how Mono Beany could fit your next project, visit www.marshalls.co.uk/ commercial/water-management or call 0870 241 4725. 20 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 21

PRODUCT INNOVATION: PRODUCT INNOVATION: PRIORA PAVING PRIORA - BLOCK INTERLOCK RESEARCH

Marshalls understands permeable paving better than anyone In 2014 we’ve taken our knowledge to the next level: Work is still ongoing... but what have we learned so far? else. We have sold enough Priora to cover over 550 football devising, developing and carrying out groundbreaking full-scale “It’s great to see some real “In field tests we found that, when Whether a project needs conventional or pitches. Every year, enough water flows through these systems tests to discover even more about progress in understanding correctly installed, Marshalls Priora permeable pavers, specifying Marshalls Priora - the best selling permeable how block paving works, even provided approximately 40% additional Priora will bring long-term benefits in to fill over 1,200 Olympic sized swimming pools. paving system in the UK. though it’s been on the market rotational interlock. This is an relation to pavement longevity and for so long.” astounding finding.” Professor John maintenance requirements - regardless We go further than any other provider to Knapton, October 2014. of hydraulic benefits. help our customers understand permeable Professor John Knapton This means that we now have evidence paving too: that enhanced interlock is an added • In 2009 we worked with Abertay feature of Marshalls Priora. University to understand how a geotextile might improve In 2012, Professor John Knapton water quality. calculated that the nibs on a Priora block maximise rotational interlock by up to • In 2012 we worked with Professor John 40% - a discovery that gave Marshalls Knapton to rationalise our sub-base the confidence to reduce Priora sub-base designs, saving our customers money. depths vs. the BS and ultimately save our customers money. Two years later, we set out to prove Professor Knapton’s desktop analysis, and answer some other questions, in a full-scale “The project is the largest Work is still ongoing... but what have • Both the shallowest and deepest Marshalls and most ambitious laboratory we learned so far? Priora designs which include MT120 test. simulation of its kind in the Filtration Textile produce the cleanest water • Do different depths of Priora interlock • Structural depth has not been shown to be of all the designs tested. world, and will set the standard a detectable contributor to water cleansing. better than others? for future water quantity and Therefore, Marshalls’ rationalised sub-base • Marshalls’ MT120 Filtration Textile performs • How much effect does the jointing designs are as effective as the deeper (and better at cleaning chemical impurities from quality design” aggregate have? more expensive) BS designs at cleansing water than a leading competitor filtration Dr Stephen J Coupe water. layer. • How does Priora compare to Keyblok? With Professor Knapton’s support, we have developed a method for measuring rotational interlock. We have created ANGLE IS CURRENTLY AT 25 DEFREES, THIS WILL PROBABLY NOT BE THE CORRECT ANGLE :) Our own testing with Abertay University This involved constructing 13 rigs, weighing in ALSO COLOURS ARE FOR AMENDING IF YOU HAVE A DIFFERNT PALETTE :) concluded that up to 94% of heavy metals are at over a tonne each, and transporting them to the necessary equipment and honed removed from effluent as it passes through a lab in Coventry University’s technology park the technique to a point where we can a sub-base, and UK SuDS expert Bob Bray is where they are subjected to a range of simulated provide actual comparisons between the regularly quoted as saying that permeable rainfall events. The combination of rigs allows performances of different blocks. paving provides “a controlled flow of clean us to compare different sub-base depths and water”. compositions, and also to monitor the long term effect of different layers within the sub-base. However, confusion still surrounds water quality Probes have been inserted to monitor microbial in permeable pavements. activity at different depths. • How does this cleaning process work? Dr Stephen J Coupe, BSc • Now that Marshalls’ Priora sub-bases are (Hons) PhD shallower than the BS, does it make them less Research Fellow in effective at removing pollutants? Environmental Science and Water Management • Can anything be done to maximise the cleansing potential of Marshalls’ sub-base designs? Dr Luis Angel Sañudo As water quality becomes increasingly important Fontaneda, MEng, MSc, PhD to meet planning requirements, we have Researcher in Civil embarked on an ambitious testing programme Engineering and Water with Coventry University to understand exactly Management www.marshalls.co.uk/watermanagement how our Priora systems improve the water that flows through them. 22 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 23

PRODUCT INNOVATION: PRODUCT INNOVATION: THE MARSHALLS STONE STANDARD THE MARSHALLS STONE STANDARD

Have complete confidence in the stone you lay... There are three key stone characteristics you need What is the Marshalls Stone Standard? to be made aware of...

Indian sandstone is market and this variation causes To ensure all the sandstone products All Marshalls’ sandstone supplied All Marshalls’ sandstone will have a high All Marshalls’ sandstone supplied is popular in the UK confusion amongst homeowners as to Marshalls supplies are fit for purpose, will have a low water absorption flexural strength. frost resistant. percentage. and complements what constitutes good quality stone. we have carried out tests and have This means the stone is stronger and less If stone loses strength or starts to fall apart the style of many labelled our sandstone products with The lower the water absorption, the less likely to break or crack under pressure or in when subjected to repeated frosts, then it British homes, We tested Indian sandstones currently the ‘Stone Standard’ trademark. This chance the stone has of going green due to transit. isn’t fit for purpose. Marshalls’ sandstone is however not all available in the UK and found over 50% trademark gives our customers peace algae growth. strong and will cope with harsh winters with sandstone is the failed to meet the British Standard*. of mind when choosing sandstone for minimal maintenance. same. When you This means homeowners may be their garden patio or driveway. think of stone, you think of it being purchasing stone which could fail strong and long-lasting. In reality, there’s during installation, or once installed There are three key stone characteristics Sandstones with a high water a wide variety of Indian sandstone could cause maintenance issues or homeowners should be aware of when Bed delamination indicates absorbency may turn green quickly Damage caused by frost products currently available on the costs to repair the damage. choosing sandstone for their garden: low flexural strength

Quality sandstone will look good for years to come

Any natural stone paving that doesn’t meet these criteria, will not be fit for purpose and could fail.

Make sure you are fully aware about the products you are laying.

‘The Marshalls Stone Standard’ 24 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 25

UNGC Steering Group Building Strong Links with LEADERSHIP BLUEPRINT The Global Construction Industry Marshalls has announced that it has joined employment. Its significant impact within Chris Harrop, Marshalls’ a steering group of UN Global Compact social, environmental, and economic spheres Group Marketing Director and Chair of the UK’s signatory sector representatives from the real opens to a number of risks and sustainability UNGC Network, said: “Hard landscaping plays a Piloting New Achieving Good Collaborating & estate, development, finance, investment, challenges. vital role in the built environment. Marshalls is Initiatives Results Sharing Best Practice construction, research and training sectors known across the globe for its leading position The project has three key objectives: convened by the UN Global Compact and the in sustainability and see this initiative as a key 51% Royal Institution of Chartered Surveyors (RICS) 1. To identify key challenges and driver for change and improvement. We are that will support a two year project to develop opportunities for the land, real estate and joining a group of exceptionally influential and a best practice sustainability tool kit for the construction sector relating to the Global prestigious businesses and by working together land, real estate and construction sector. Compact’s issue areas and United Nations’ I believe that we can make a real difference.” goals; The UN Global Compact is a strategic policy Founded in the 1890’s Marshalls, the UK’s Reviewing Feedback & Developing Our Delivering Best initiative for businesses that are committed to 2. To actively engage UN Global Compact leading supplier of hard landscaping materials, Legal Compliance Approach Practice aligning their operations and strategies with participants from the land, real estate and has been a signatory to the UN Global Compact ten universally accepted principles in the areas construction sector as well as associated since 2009. Marshalls believes in conducting of human rights, labour, environment and anti- users and stakeholders to capture and its business in a manner which achieves corruption. By doing so, business, as a primary scale up existing best practice efforts and sustainable growth whilst incorporating driver of globalisation, can help ensure that initiatives in applying and implementing and demonstrating a high degree of social markets, commerce, technology and finance the Ten Principles of the UN Global responsibility. 4 Blueprint 5 advance in ways that benefit economies and Compact; societies everywhere. 3. To develop a sector specific best practice The land, real estate and construction sector tool kit for companies operating in these represents about 70% of global wealth. Its areas to help them tackle these issues Blue rint contribution makes up around one-tenth of the and harness significant sustainability For Corporate Sustainability Leadership Leadershiptotal global GDP and represents 7% of overall opportunities. Blueprint

Understanding the Blueprint

Key Dimensions andMoving Components forward, Marshalls of Leadership will work towards realising elements within the Blueprint as

The Blueprint offers UN Global Compactidentified The in Blueprint the targets encompasses for 2016. three Implementing the Taking Action participants a model for achieving higher levels distinct but overlapping and synergistic Ten Principles into in Support of Broader of performance and generating enhanced value dimensions. They are: Strategies and Operations UN Goals and Issues* through the UN Global Compact. It allowsIn order that readers have a full understanding companies and their stakeholder to assessof this commitment,1. Implementing we the Tenhave Principles reproduced into on progress with respect to their commitment, Strategies and Operations 1. Full Coverage and 1. Core Business Contributions Marshalls continues to demonstrate that it is a leader in its field and stated in 2010 strategy and implementation and to communithe following- pages the Corporate Action Plan Integration Across Principles to UN Goals and Issues that it recognised that Blueprint for Corporate Sustainability Leadership offered a cate effectively as they ascend the learningfrom within2. Taking the ActionUNGC in SupportBlueprint of Broader for Corporate and performance curve. SustainabilityUN GoalsLeadership and Issues (to be found overleaf 2. Robust Management 2. Strategic Social Investments model for achieving even higher levels of performance and generating enhanced Policies and Procedures and Philanthropy In the context of the Blueprint, corporateon sus pages- 3. 32 Engaging and 33). with the UN Global Compact value through the UNGC. CEO Commitment tainability is defined as a company’s delivery of 3. Mainstreaming into 3. Advocacy and Public and Leadership long-term value in financial, social, environmen- Each dimension contains a number of key Corporate Functions and Policy Engagement The 2010 COP detailed the elements of the Blueprint together with why and how tal and ethical terms. It thus covers all princi- Components. In addition, several cross-cutting Business Units Board Adoption and ples and issue areas of the UN Global Compact. Components of leadership were identified as Marshalls has engaged. You can view all of Marshalls’ previous COP reports at www. Oversight 4. Partnerships and a crucial overlay to the three dimensions. 4. Value Chain Collective Action marshalls.co.uk/sustainability/publications The Blueprint is grounded in the two core Implementation Stakeholder Engagement commitments made by participating companies. The opposite page contains the visual represen- It includes aspects of leadership that are tation of the Blueprint, encompassing the three Transparency Engaging in the Blueprint process has allowed Marshalls to effectively assess considered key to maximizing results with key dimensions as well as, at the centre, the and Disclosure respect to these commitments, including Keyactive Dimensions cross-cutting and Components Components. of Each Leadership of the Compo- – progress with respect to its commitment, strategy, implementation and engagement with the UN Global Compacttaken fromnents the UNGCwithin theBlueprint Blueprint document. contain associated communications as the organisation ascends the learning performance curve. locally and globally. Action Items. These are fully detailed in the Engaging with Corporate Action Plan on pages 10 and 11. the UN Global Compact The UNGC Blueprint for Corporate The Blueprint has been developed to: 1. Local Networks and Subsidiary Engagement Sustainability Leadership document Challenge and inspire companies to achieve higher levels of sustainability can be found at http://www. • “Broader UN Goals and Issues” refers to an array of global issues – based on the most acute 2. Global and Local Working Groups unglobalcompact.org/docs/news_ performance within the UNGC; and or chronic global challenges – including Peace & Security; the Millennium Development Goals; 3. Issue-Based and Sector Initiatives events/8.1/Blueprint.pdf Human Rights; Children’s Rights; Gender Equality; Health; Education; Humanitarian Assis- • Evolve the UNGC and its engagement opportunities to deliver more value totance; Migration; Food Security; Sustainable Ecosystems and Biodiversity; Climate Change leading participants. Mitigation and Adaptation; Water Security and Sanitation; Employment and Decent Working 4. Promotion and Support of Conditions; and Anti-Corruption. the UN Global Compact Marshalls will continue to work towards realising the elements within the Blueprint This is an illustrative list of issues covered “Broader UN Goals and Issues”, and there are obvi- ously considerable overlaps between individual elements. The order of this list does not indicate as identified in the targets for 2015. The organisation remains realistic that this will any prioritization of issues. For a list of further Global Issues that are relevant to the work of the be a long term commitment. UN as well as business, please refer to http://business.un.org/en/browse/global_issues. Marshalls’ target position to 2020 and beyond demonstrates the long term nature of its commitment. 26 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 27

REALISING THE BLUEPRINT: CORPORATE ACTION PLAN

• Align strategies, goals and incentive of the company as an integrated part of its • Encourage subsidiaries to engage with and invite them to take active part in Implementing the Ten structures of all business units and sustainability strategy. UN Global Compact Local Networks and to The Cross-Cutting reviewing performance. subsidiaries with corporate sustainability participate actively in events and activities. • Coordinate efforts with other • Establish channels to engage with Principles into Strategies strategy. Components organisations and initiatives to amplify – • Publish sustainability information employees and other stakeholders to hear and Operations • Assign responsibility for corporate and not negate or unnecessarily duplicate related to each individual subsidiary CEO Commitment and Leadership their ideas and address their concerns, and sustainability implementation to an – the efforts of other contributors. separately or reference it explicitly in the protect ‘whistle-blowers’. Full Coverage and Integration • CEO publicly delivers explicit statements individual or group within each business Communication on Progress of Corporate Across Principles • Take responsibility for the intentional and and demonstrates personal leadership on unit and subsidiary. Headquarters. unintentional effects of funding and have sustainability and commitment to the UN • Implement all ten UN Global Compact Transparency and Disclosure principles into strategies and operations. due regard for local customs, traditions, Global Compact. religions, and priorities of pertinent • Share sustainability information with Value Chain Implementation Global and Local Working Groups • CEO promotes initiatives to enhance • Design corporate sustainability strategy individuals and groups. all interested parties and respond to sustainability of the company’s sector and to leverage synergies between and among • Analyse each segment of the value chain • Participate in relevant global or local stakeholder inquiries and concerns. leads development of industry standards. issue areas and to deal adequately with carefully, both upstream and downstream, working groups and share experiences, • Ensure that Communication on Progress trade-offs. when mapping risks, opportunities and Advocacy and Public Policy Engagement networks, tools and good practices with • CEO leads executive management team covers all aspects of the Leadership impacts. other UN Global Compact participants. in development of corporate sustainability • Ensure that different corporate • Publicly advocate the importance of Blueprint and utilise, where appropriate, strategy, defining goals and overseeing functions coordinate closely to maximise • Communicate policies and expectations action in relation to one or more UN goals • Take active part in defining scope and the Global Reporting Initiative framework. implementation. performance and avoid unintended to suppliers and other relevant business /issues. objectives of new working groups when • Integrate Communication on Progress negative impacts. partners. relevant. • Make sustainability criteria and UN Global • Commit company leaders to participate into annual financial report or publish Compact principles part of goals and • Implement monitoring and assurance in key summits, conferences, and other them together. incentive schemes for CEO and executive mechanisms within the company’s sphere important public policy interactions in Robust Management Policies Issue-Based and Sector Initiatives management team. • Secure external verification of of influence. relation to one or more UN goals/issues. and Procedures Communication on Progress or seek other • Join and help advance one or more • Undertake awareness-raising, training methods for legitimisation by external • Assess risks and opportunities on an existing UN Global Compact initiatives, e.g. and other types of capability building with Board Adoption and Oversight stakeholders. ongoing basis at both enterprise and Partnerships and Collective Action Caring for Climate, CEO Water Mandate, suppliers and other business partners. product level and undertake due diligence Women’s Empowerment Principles, and • Board of Directors (or equivalent**) • Develop and implement partnership to ensure that the company identifies any Global Business Initiative on Human Rights. assumes responsibility and oversight for projects with public or private ** For companies without a formal Board, negative impacts caused by its operations long term corporate sustainability strategy organisations (UN entities, government, • Spearhead need-driven development of other governance or ownership body and activities. and performance. NGOs, or other groups) on core business, new issue-based or sector initiatives within assumes these responsibilities • Develop strategies and policies specific to Taking Action in Support social investments and/or advocacy. the UN Global Compact and the wider • Board establishes, where permissible, a the company’s operating context – as well United Nations. committee or assigns an individual Board • Join industry peers, UN entities and/ as scenarios for the future - and establish member with responsibility for corporate of Broader UN Goals and or other stakeholders in initiatives that measurable short, medium, and long term sustainability. contribute to solving common challenges goals. Promotion and Support of the UN Global Issues and dilemmas at the global and/or local • Board (or committee), where permissible, NOTE: Reproduced from the UNGC Blueprint Compact • Engage and educate employees through levels with an emphasis on initiatives that approves formal reporting on corporate document http://www.unglobalcompact.org/ Core Business Contributions to UN training activities, the development and extend the company’s positive impact on • Advocate the UN Global Compact to sustainability (Communication on docs/news_events/8.1/Blueprint.pdf Goals and Issues adjustment of business processes, and its value chain. business partners, peers and the general Progress). sound incentive schemes. • Align core business strategy with one or public. more relevant UN goals/issues*. • Implement a system to track and measure • Encourage suppliers and other business Stakeholder Engagement performance based on standardised • Develop relevant products and services or partners to join the UN Global Compact, performance metrics. design business models that contribute to and take on mentoring role on issues • Publicly recognise responsibility for UN goals/issues. Engaging with the UN related to the initiative. the company’s impacts on internal and external stakeholders. Mainstreaming into Corporate • Adopt and modify operating procedures Global Compact • Participate in activities to further develop Functions and Business Units to maximise contribution to UN goals/ and strengthen the UN Global Compact. • Define sustainability strategies, goals issues. Local Networks and Subsidiary and policies in consultation with key • Place responsibility for execution of Engagement stakeholders. sustainability strategy in relevant corporate • Consult stakeholders in dealing with functions (procurement, government Strategic Social Investments and • Contribute to the building and operating implementation dilemmas and challenges affairs, human resources, legal, etc.) and Philanthropy of at least one UN Global Compact Local ensure that no function is operating in Network and help elevate performance conflict with sustainability commitments • Pursue social investments and of other companies through training, and objectives of the company. philanthropic contributions that tie in with mentoring, COP peer review, etc. the core competences or operating context 28 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 29

LEADERSHIP BLUEPRINT: LEADERSHIP BLUEPRINT: TARGETS 2016 TARGETS 2016

ACHIEVEMENTS 2015 TARGETS 2016 ACHIEVEMENTS 2015 TARGETS 2016

Core Business Contribution to UN Goals and Issues: Core Business Contribution to UN Goals and Issues: Global & Local Working Groups: Global & Local Working Groups: Aligning core business strategy with one or more relevant Continue to align core business strategy with one or more relevant UN Participating in relevant global or local working groups and Continue to participate in relevant global or local working groups UN goals/issues. goals/issues. sharing experiences, networks, tools and good practice with and share experiences, networks, tools and good practice with other Developing relevant products and services that contribute to Continue to develop relevant products and services that contribute to other UNGC participants. UNGC participants. UN goals/issues. UN goals/issues. Taking active part in defining scope and objectives of new Continue to take active part in defining scope and objectives of new working groups when relevant. working groups when relevant. Modifying operational procedures to maximise contributions Continue to adopt and modify operational procedures to maximise to UN goals/issues. contributions to UN Golas/ issues. Issues-Based and Sector Initiatives: Issues-Based and Sector Initiatives: Joining and helping advance one or more existing UNGC Continue to advance Children’s Rights & Business Principles, Strategic Social Investments & Philanthropy: Strategic Social Investments & Philanthropy: initiative; e.g. Caring for Climate, CEO Water Mandate, Women’s Women’s Empowerment Principles Initiatives. Pursuing social investments and philanthropic contributions Continue to pursue social investments and philanthropic contributions Empowerment Principles, and Global Business Initiatives on that tie in with the core competencies or operating context that tie in with the core competences or operating context of the Human Rights. of the company as an integrated part of its sustainability company as an integrated part of its sustainability strategy. Promotion and Support of the UNGC: Promotion and Support of the UNGC: strategy. Continue to take responsibility for the intentional and unintentional Taking responsibility for the intentional and unintentional effect for funding and having due regard for local customs, traditions, Advocating the UNGC to business partners, peers and the general public. Continue to advocate the UNGC to business partners, peers and the general public. effects of funding and having due regard for local customs, religions and priorities of pertinent individuals or groups. Encouraging suppliers and other business partners to join the UNGC, Continue to encourage suppliers and other business partners to join the UNGC, traditions, religions, and priorities of pertinent individuals Co-ordinate efforts with other organisations and initiatives to amplify and take on mentoring role on issues related to the initiative. and take on mentoring role on issues related to the initiative. and groups. – and not negate or unnecessarily duplicate – the efforts of other Participating in activities to further develop and strengthen the UNGC. Continue to participate in activities to further develop and strengthen the UNGC. contributors. Stakeholder Engagement: Stakeholder Engagement: Advocacy and Public Policy Engagement: Advocacy and Public Policy Engagement: Establishing channels to engage with employees and other Continue to establish channels to engage with employees and other Publically advocating the importance of action in relation to Continue to publicly advocate the importance of action in relation to stakeholders to hear their ideas and address their concerns, stakeholders to hear their ideas and address their concerns, and one or more UN goals/issues. one or more of the UN goals/issues. and protect whistle blowing. protect whistle blowing. Committing company leaders to participate in key summits, Continue to commit company leaders to participate in key summits, Transparency and Disclosure: Transparency and Disclosure: conferences, and other important public policy interactions conferences, and other important public policy interactions in relation in relation to one or more UN goals/issues. to one or more UN goals/issues. Sharing sustainability information with all interested parties and Continue to integrate the COP within the financial report or publish responding to stakeholder enquiries and concerns. them together. Ensuring that COP covers all aspects of the Leadership Blueprint Develop more transparent reporting and monitoring procedures. Partnerships and Collective Action: Partnerships and Collective Action: and utilising, where appropriate, the Global Reporting Initiative Developing and implementing partnership projects with Continue to develop and implement partnership projects with public or framework. public or private sector organisations on core business, social private sector organisation on core business, social investments and/ Integrating the COP within the financial report or publish them investments and/or advocacy. or advocacy. together after consultation with stakeholders. Joining industry peers, UN entities and/or other stakeholders Continue to join with industry peers, UN entities and/or the in initiatives that contribute to solving common challenges stakeholders in initiatives that contribute to solving common CEO Commitment and Leadership: CEO Commitment and Leadership: and dilemmas at the global and/or local levels with challenges and dilemmas at the global and/or local levels with CEO publicly delivering explicit statements and demonstrating Continue to publicly deliver explicit statements and demonstrate emphasis on initiatives that extend the company’s positive emphasis on initiatives that extend the company’s positive impact on personal leadership on sustainability and commitment to the UNGC. personal leadership on sustainability and commitment to the UNGC. impact on its value chain. its value chain. Board Adoptions and Oversight: Board Adoptions and Oversight: Local Networks & Subsidiary Engagement: Local Networks & Subsidiary Engagement: Board of Directors to approve formal reporting on corporate Board of Directors (or equivalent) assumes responsibility and Active participation in events and activities. Continue to actively participation in events and activities. sustainability. oversight for long term corporate sustainability strategy and Encouraging subsidiary to engage with UN Global Compact Continue to encourage subsidiary to engage with UNGC Local Networks Board establishes, where permissible, a committee or assigns performance. Local Networks and to participate actively in events and and to participate actively in events and initiatives. an individual Board member with responsibility for corporate Continue with this approach. initiatives. Continue to contribute to the building and operating of at least one sustainability. Actively participating in events and activities. local network and help elevate performance of other companies Board (or committee), where permissible, approves formal through training, mentoring, COP peer review, etc. reporting on corporate sustainability (Communication on Progress). 30 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 31

SUSTAINABLE DEVELOPMENT GOALS BUILDING THE POST-2015 BUSINESS AND HOW MARSHALLS IS CONTRIBUTING ENGAGEMENT ARCHITECTURE

On 1 January 2016, the 17 Sustainable income to promote prosperity while protecting and timely data collection. Regional follow- The Post-2015 Business Engagement To support this alignment, the Global Development Goals (SDGs) of the 2030 Agenda the planet. They recognize that ending poverty up and review will be based on national-level Architecture illustrates the main building Compact, the Global Reporting Initiative for Sustainable Development — adopted by must go hand-in-hand with strategies that analyses and contribute to follow-up and blocksP necessaryROGRESS to enhance corporate REVIEW (GRI), and the World Business Council for Global Platforms world leaders in September 2015 at an historic build economic growth and addresses a range review at the global level sustainability as an effective contribution Sustainable Development (WBCSD) have UN Summit — officially came into force. Over of social needs including education, health, The 17 Sustainable Development Goals with to sustainable development, creating joined forces to develop methodologies for the next fifteen years, with these new Goals social protection, and job opportunities, while & Partnerships: 169 targets are broader in scope and go value for both business and society. companies. The toolkit will offer approaches that universally apply to all countries will tackling climate change and environmental further than the MDGs by addressing the root to aligning business strategies with the mobilize efforts to end all forms of poverty, protection. Each of these building blocks must be How Marshalls is causes of poverty and the universal need for SDGs, assessing impact, setting forward- fight inequalities and tackle climate change, further strengthened and connected have an important role to play in sharing experiences While the SDGs are not legally binding, development that works for all people. The looking goals and communicating results while ensuring that no one is left behind. through a comprehensive and collective and contributing innovation and best practices in terms governments are expected to take ownership goals cover the three dimensions of sustainable in a credible manner. The toolkit is being Contributing to SDG effort if they are to help take corporate of motivating and facilitating corporate sustainability The SDGs build on the success of the and establish national frameworks for the development: economic growth, social developed in parallel to intergovernmental sustainability to scale and turn business into a action and partnerships. Millennium Development Goals (MDGs) and achievement of the 17 Goals. Countries have inclusion and environmental protection. discussions with a view to develop Implementation truly transformative force in the Post-2015 era. aim to go further to end all forms of poverty. the primary responsibility for follow-up and guidance consistent with the future SDGs Throughout 2016 Marshalls will map out how it Global corporate sustainability organizations like the The new Goals are unique in that they call for review of the progress made in implementing and associated targets. is already contributing to the SDG’s and where In 2015, to enhance the activity of UN Global Compact, the World Business Council for action by all countries, poor, rich and middle- the Goals, which will require quality, accessible By being a UNGC signatory it can seek to do more. sustainable business toward this agenda, Sustainable Development and the Global Reporting the Global Compact will further articulate Marshalls is already Initiative have a particularcontributing role to play in regularly to the tak- the building blocks of the Architecture, ing stock of the overall progress made by business in placing a special emphasis on issue advancing development andimplementation sustainability performance. of the SDGs. platforms, Local Networks and aligning To capture progress reportedThe by UN companies Global Compactand distil business strategies with the SDGs. insights from the business togetherengagement with platforms, UN partners ini- tiatives and networks, a newhosts annual a number review of of the global Post- To maximize the contribution of business to the Post- 2015 Business Engagementissue Architecture platforms is needed. many of 2015 Agenda, it will be important to periodically review Such a report could also generate recommendations for progress and reflect on past experiences and, on that the continuous strengtheningwhich of the Marshalls Architecture is involved and basis, adjust priorities and approaches. This reflexive dy- feed into the broader Post-2015in; the development CEO Water agenda Mandate, namic should be built into all levels of the Architecture. progress review likely to bethe adopted Women’s by Governments. Empowerment Issue platforms, sector initiatives and local networks all Principles, Children's Rights & Business Principles and Business for Peace.

ADVANCING GOALS FOR BUSINESS AND SOCIETy

Source: UNGC https://www.unglobalcompact. org/issues/partnerships/post_2015_ development_agenda.html Prosperity Inclusive & Equity Growth

Women’s human Needs Empowerment & Capabilities & Gender Education Equality health

Food & Water & Energy & The Resource Agriculture Sanitation Climate Triad

Enabling Peace & Infrastructure Good Governance Environment Stability & Technology & human Rights

Source: Global Compact LEAD consultations 14 POST-2015 ISSuE AREA PRIOIRITIES

In a globe-spanning series of consultations, thousands of UN Global Compact participants offered their views on global development priorities they consider central to any future development agenda. The illustration above reflects a series of highly focussed discussions within Global Compact LEAD which identified recommendations on issue prioritization and framed the themes into four over- arching categories: Inclusive Growth, human Needs and Capabilities, the Resource Triad and the Enabling Environment.₁

Another illustration of active business involvement to achieve global priorities is WBCSD’s Action2020.₂ Informed by science, Action2020 provides a framework for delivering business solutions at scale and outlines nine priority areas of natural and social capital: climate change, nutrient elements, ecosys- tems, harmful substances, water, basic needs and rights, skills and employment, sustainable lifestyles, and the 4Fs (food, feed, fiber and biofuels). The overlap between Action2020 and the Post-2015 Issue Priorities emphasizes the potential of business to bring about meaningful change.₂

₁ This set of issues was included as part of UN Global Compact’s Post-2015 Development Agenda submission to the United Nations Secretary-General in June 2013. ₂ http://www.wbcsd.org/action2020.aspx

5 32 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 33

® Marshalls Fairstone® is an ethically sourced range of Natural Stone that has been FAIRSTONE quarried and produced in line with a clear set of ethical values and commitments.

Marshalls & UNICEF Working to Improve the Fairstone® Fairstone® Fairstone® Situation for Children and their Families CHILDRen’S LIveS CAST In STOne Marshalls was the first to identify the issue of UNICEF research would define the ongoing INDIA Defined CHINA Defined VIETNAM Defined child labour in the Kota region of Rajasthan programme of work in support of children's and to bring this to the attention of the sector rights. Armed with the full facts we have back in 2005. Since then we have worked hard discussed with UNICEF how we can both best to take practical steps to ensure that we do work, utilising our unique strengths as a private not have child labour in our own supply chain. sector organisation and an IGO, to improve the Our engagement with UNICEF in 2012 on the situation for children and their families. pilot Children's Rights and Business Principles Whilst we will continue to collaborate closely programme deepened our understanding of with the UNICEF our focus will be upon children's rights and led to our partnership with working with ILO-IPEC to facilitate change Marshalls knows where its quarried stone comes Marshalls knows where its quarried stone comes Marshalls Fairstone® is an ethically sourced range UNICEF UK in January 2014. on the ground within the sector. It is wholly from. It knows how it is manufactured and that from. It knows how it is manufactured and that of Natural Stone. appropriate that UNICEF continues to works it has been produced in accordance with a it has been produced in accordance with a The recent UNICEF research, funded by with the government in India to bring about Fairstone® means that Marshalls knows where its clear and unequivocal set of ethical values and clear and unequivocal set of ethical values and CHILD LABOUR & THe SAnDSTOne InDUSTRy Marshalls, has confirmed, as we expected, the developments required to create the right quarried Vietnamese stone comes from, how it In KOTA & BUnDI, In RAjASTHAn, InDIA the presence of child labour in the sector conditions for child protection in the quarrying commitments . Specifically in the India supply commitments : Summary of key findings is manufactured and that it has been produced chain: and UNICEF has provided a clear set of region. We have a clear understanding of Specifically in the Chinese supply chain: in accordance with a clear and unequivocal set recommendations which address government how we will work in support of children's ✔ No child labour is used of ethical values and commitments based on the systems and practices; building a responsible rights and will continue to fund appropriate ✔ Chinese workers receive ETI Base Code and UNGC Principles: ✔ and transparent industry; & facilitating and activity which makes the implementation of Indian workers receive living wages for a normal sustaining individual change behaviour. The 'Marshalls Elimination of Child Labour Protocol' ✔ living wages working period Bonded labour is not used, partnership will come to an end in 2016 and a reality not only in our own supply chain but i.e. prison labour throughout the sector. ✔ Health & safety practices ✔ Working hours are not forced it was always the case that the findings and ✔ subsequent recommendations from the are in place economically or physically Living wages are paid for a normal working period Marshalls employs a full time, field-based, Social ✔ Health & Safety practices ✔ Auditor in India who works with quarry owners are in place Working hours are not forced and workers on a daily basis to ensure the economically or physically MARSHALLS RESPONSE TO UNICE’S RESEARCH FINDINGS ongoing implementation of the Ethical Trading Through its local office in Xiamen, Marshalls’ ✔ No child labour is used Initiative Base Code and to monitor progress. employees regularly visit quarries and factories ✔ Health & safety practices Daily contact, weekly reporting, annual third to work alongside workers and managers to Develop and embed 'Marshalls party auditing and regular quarry inspections by ensure that these three commitments are are in place Protocol Regarding the Elimination Company employees allow Marshalls to ensure implemented. In addition, a dedicated member of Child Labour' which is effectively that Fairstone commitments are upheld. The Fairstone® Manager takes the lead on of Marshalls’ Chinese team takes the lead on all a Standard Operating Procedure all ethical supply chain matters and the co- ethical supply chain matters. Quality Controllers for the organisation which sets out Marshalls is committed to working in partnership also play a critical role in improving worker ordination of the in-field Quality Controllers who Develop and embed its measures to ensure a child labour with its sole supplier Stone Shippers India to conditions. play a critical role in monitoring and improving human rights training free supply chain, and also what achieve continuous improvement in supply chain worker conditions. programme, including Marshalls is committed to working in partnership should be done if an instance of Work to establish a Living conditions and to help deliver tangible benefits children's rights, throughout with its suppliers in China to achieve continuous Marshalls works with a small number of suppliers child labour is identified. Wage Benchmark to all workers involved in stone production, their its supply chain. families and the wider community. improvement in supply chain conditions and in Vietnam and is committed to building to help deliver tangible benefits to all workers relationships which promote shared learning, Since early 2007, and following community involved in stone production, their families and best practice and the continuous improvement consultation, Marshalls has worked with local the wider community. of conditions throughout the supply chain for NGO Hadoti Hast Shilp Sansthan in partnership workers. - Marshalls ensures that every quarry and factory to: in its supply chain has an appropriate first aid kit. Marshalls has ensured that every quarry and production facility in its supply chain has an - Develop and fund 6 Free Schools giving the - Marshalls has also specifically funded the appropriate first aid kit and has specifically Work with its sole children of migrant workers and local workers training of a nominated worker at each quarry funded the training of a nominated worker in supplier and its UK- an education that they would not otherwise and production facility in first aid practices. first aid practices. have had. based procurement - Marshalls funds regular cultural community team in order to ensure Marshalls will continue to - Develop 6 free Health Centres and deliver events for workers, their families and the wider a high level of human undertake human rights monthly community health camps in the heart community. rights knowledge due diligence, including of the quarrying area in Bundhi. These services and to ensure that an an explicit focus on the offer consultation, treatment, free medicines increase in demand rights of children, using the and referral pathways all of which would not Continue to implement the to not have negative Children's Rights & Business Ensure a human rights lens otherwise be available. ETI Base Code on a daily basis effects on workers. Principles as a framework. in Due diligence process. 34 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 35

PROGRAMME TIMELINE & KEY EVENTS

Programme Key Events

Appointment of Hadoti as Marshalls on-the- ground NGO partner. First Marshalls funded school opened for All children from Hadoti NGO activities children of local Social security Specialist health Marshalls funded incorporated into quarry workers, programme started. camps introduced: Beneficiaries of schools gain places UNICEF programme. and the migrant Health camp Worker education malaria, women’s Maternal health programme total: in government run UNICEF interventions communities. programme started. camps started. health, TB. camps started. 75,000. schools. on the ground begin.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Development Consumer campaign Marshalls become Human Rights Impact HRIA China. HRIA Vietnam. HRIA India. Marshalls values UK Government of a community to raise awareness a UNGC signatory in Assessment Process Ruggie Framework Marshalls invited to Marshalls attend revised: Leadership, Modern Slavery Act engagement plan for of child labour in the January and a UK begins; India. Ratified. take part in CRBP pilot UNICEF CRBP Trust, Excellence & 2015 comes into force. Kota. Indian sandstone Network member later First COP published. programme. conference in New York. Sustainability. Marshalls take part in sector. the same year. Fairstone Vietnam Fairstone China brought to market. CRBP Launched. Marshalls announce Broad human Indian Government Marshalls join ETI and Fairstone India brought to market. global partnership with rights programme Consultation begin to implement brought to market. UNICEF. developed and regarding UNICEF ETI base code. implemented. research findings. Marshalls funded Human Rights in Action Bangor University Series published. Internal appointment Research Published; of Business & Human (1) Livelihood impacts Chris Harrop appointed Rights Specialist. of quarrying and at Chair of UNGC UK Network. Marshalls develops its the restoration of child-centred ‘Protocol Marshalls develops quarry sites in Kota Regarding the ‘Marshalls CRBP: and Bundhi Districts Elimination of Child Universal Code of of Rajasthan, India; Labour’. (2) Socio-Economic Conduct Regarding Study of Quarrying Marketing & Marshalls joins ILO- Community; (3) Advertising’ IPEC. Ecological Study of Marshalls funded Second CRBP report. Quarrying Region. UNICEF research begins. First CRBP report.

Marshalls Key Events 36 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 37

THE TRUTH ABOUT CHILD LABOUR ® FAIRSTONE IN THE INDIAN SANDSTONE INDUSTRY RIGH AN TS M U Helping to ensure that the H UNICEF/MARSHALLS District is able to implement PARTNERSHIP special training to ensure Developing a Interventions on the Ground that children are prepared for health referral IN ACTIONS Already Making a Positive Impact mainstream schooling. system for children T and their families. H H U G MAN RI REACHING by 10,000 children EDUCATING KEY STAKEHOLDERS - teachers, community leaders, young people and around 50,000 about child protection, education and the members of the quarrying rights of children. population in 50 villages - raising awareness of the harms of child Working with the local labour and the advantages of school management WORKING WITH SENSITISING school education. committees in 50 CHILDCHILD LABOUR LABOUR TRAPS TRAPS villages to improve the 50 SCHOOLS DISTRICT and local CHILD LABOUR DOES CHILD LABOUR IS A CHILDRENCHILDREN INTO INTO A A ACTIVITY IN THE STONE officials on the issues 1. FACT 1. FACT 2. FACT 3. FACT enrolment and retention to develop and EXIST IN THE INDIAN GROSS INFRINGEMENT LIFELONGLIFELONG CYCLE CYCLE OF OF 4. FACT SECTOR TO HIDE & STRENGTHENING of children from the deliver child friendly which children in the SANDSTONE SECTOR OF CHILDREN’S RIGHTS POVERTYPOVERTY DENY CHILD LABOUR 20 CHILD quarrying community. schools. * quarrying region face. protection committees ALCOHOL SHROUDEDSHROUDED to ensure the protection of Identifying vulnerable children in the quarrying region. CHILDREN ININ SECRECY SECRECY families and children in the & DRUGS 50 villages and linking them to AS YOUNG AS WITH NON-TRANSPARENT Helping to ensure that Kota District has a ARE OFTEN USED TO OPERATIONS AND PROCESSES SOCIAL RIGH clear plan for child protection; including AN TS AN ESTIMATED EASE THE PHYSICAL PROTECTIVE MEASURES for children PROTECTION M 6 and 7 Ethical standards and reports U PAIN OF DOING SUCH on child labour have H among the quarrying community. SCHEMES. ARE WORKING AS GRUELLING WORK increased awareness among 200,000 CHILD LABOURERS quarry owners, processors S and exporters, it has IN ACTION children are employed in the T also had the H H sandstone industry in India unfortunate U IG which is classified as hazardous consequence M R Alcoholism, drug abuse and THE TRUTH ABOUT AN and one of the worst forms of of reducing A Clear Committment to Support associated problems of prostitution, Child Labour in the child labour. Working as a child labourer and transparency and Indian Sandstone trapped in a cycle of poverty HIV/AIDS and sexual violence Industry "By driving down adult wages led to greater RIGH all compound the situation and AN TS affects almost all of a child’s M secrecy in the U Childrens Rights H human rights. perpetuate the poverty cycle. IN ACTIONS and depriving children of education, industry. T H H U G MAN RI Building on our commitment to support children's rights child labour results in poverty towards the end of 2015 we published a further booklet passing down from generation in our Human Rights in Action series, "The Truth About to generation and depressed the Child Labour in the Indian Sandstone Sector". THE PHYSICAL IMPACT economy. The resulting vicious cycle UPON CHILDREN CHILDREN WORK TO CHILD LABOUR WORKING IN THE SUPPORT THEMSELVES, AVERAGE INCOME OF UNDERMINES LABOUR 5. FACT 5. FACT 7. FACT 8. FACT of poverty keeps these children and SANDSTONE INDUSTRY 6. FACT THEIR FAMILIES AND TO A CHILD LABOURER IN STANDARDS & HOLDS IS IMMENSE PAY OFF FAMILY DEBTS KOTA AND BUNDI THE INDUSTRY BACK Chris Harrop, Marshalls Group Marketing Our deeply embedded values their families trapped within what The average working hours of Director & Director of Sustainability, said, can only be described as an enclave Exposed to of leadership, excellence, trust children labourers is between with no opportunity of seeking a dust, fumes, "It is a confirmed fact that there is & sustainability ensure that we are fire and gas DRAWN TO better life." OF CHILDREN at work child labour in the Indian sandstone empowered to make the right choices 6-7 HOURS Elaine Mitchel-Hill, Marshalls Business & £35£35 WORK BY sector, despite constant denials from day-by-day. We take very seriously Exposed to Human Rights Specialist DEPRIVATION... various quarters within the industry. the moral responsibility which lies loud noise, AA MONTH MONTH vibration A DAY ...and hope of earning money for a Newly published UNICEF research, with us as a business to do the right and extreme AVERAGEAVERAGE INCOME INCOME living, children are sacrificing their thing. As signatories of the UNGC OF CHILDREN temperatures 75 per cent of children said they childhood and are ill-equipped to 'Forgotten Children: The Sandstone at work worked to supplement family income. prepare for the future. the UN Guiding Principles exemplify Industry in Kota & Bundi, Rajasthan', What began over 10 years ago as a goal to what our brand stands for where Children reported health (2) confirms that in the Kota & Bundi ensure the absence of child labour in our own problems including fever, extreme The majority of children fatigue, superficial injuries or confirmed that they received “By driving down adult wages and regions 38% of children are engaged human rights are concerned. All of supply chain and to eradicate child labour in depriving children of education, open wounds, body/back ache, payment for their work, some child labour results in poverty in child labour". these factors combine to allow us to the wider stone sector in India, has led to a burns, corrosions, scalds or said that payment for their work passing down from generation to frostbite, & stomach problems was given to parents or that they generation and depressing the lever sustainability for competitive deepening understanding of the wider issue such as diarrhoea. did not get any payment at all. economy.” ILO "The business case for improving advantage and create a robust of children’s rights. Our partnership with children's rights is an easy choice for business case for supporting children's UNICEF has given us greater knowledge and us. Our sustainability model puts rights wherever we work around the our extensive engagement programme means BE PART OF THE SOLUTION WITH FAIRSTONE. we are now seeking to support long-term children and families at the heart of globe." All facts and figures in the leaflet are taken from the UNICEF UK ‘Children’s Lives Cast in Stone: The Sandstone Industry in Kota & Bundi, meaningful systemic change for children. what we do. Rajasthan, India’ (September 2015). This important research was commissioned by UNICEF UK and funded by Marshalls plc as part of its strategic partnership with UNICEF which aims to eliminate child labour in the sandstone sector in Rajasthan. To access the report please go to the publications section at www.marshalls.co.uk/sustainability/publications. 38 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 39

FOCUS ON MODERN SLAVERY; FOCUS ON MODERN SLAVERY; TRANSPARENCY IN THE SUPPLY CHAIN TRANSPARENCY IN THE SUPPLY CHAIN

Modern slavery encompasses slavery, human impact assessments, children's rights & trafficking, forced labour and domestic business principles audits, and this year servitude. It is an international crime involving be completing our first audit against the Marshalls does not tolerate child a number of source and transit countries Women's Empowerment Principles. It was a labour, forced labour, including 21 MILLION 19 MILLION 4.5 MILLION Wherever we operates around the world natural evolution for us to engage with the UK prison labour, or any use of force Marshalls is committed to conducting Government via its consultation process and or other forms of coercion, fraud, business with honesty and integrity; the working group regarding the issues of deception, abuse of power or in treating all people with dignity and modern slavery during 2015. other means to achieve control EXPLOITED respect and in complying with applicable VICTIMS over another person for the PEOPLE laws, regulations and treaties. We're also Marshalls will publish its first Modern Slavery purpose of exploitation 21 million people are 19 million victims are Of those exploited by in- committed to protecting and promoting & Human Trafficking Disclosure Statement exploited by private human rights globally. We've clearly within the coming months and will be among victims of Forced labour dividuals or enterprise, 4.5 demonstrated this over the long term the first to do so. – 11.4m women and girls, individuals or enterprises million are victims of forced and have a well developed human rights 9.5m men and boys. and over 2 million by the sexual exploitation. programme which includes human rights state or rebel groups. Modern Slavery/ Transparency in the Supply Chain (TISC) and the application of the law in the UK & overseas. “A commercial organisation within subsection (2) must $150 BILLION VUNERABLE prepare a slavery and human WORKING trafficking statement for each financial year of the organisation.” ILLEGAL SECTORS MIGRANT PROFITS WORKERS “A slavery and human trafficking AFFECTED Domestic work, statement for a financial year is – Forced labour in the Migrant workers and agriculture, construction, (a) a statement of the steps the private economy indigenous people are manufacturing and organisation has taken during generates $150 billion in particularly vulnerable to the financial year to ensure that entertainment are the illegal profits per year. forced labour. slavery and human trafficking sectors most concerned. are not taking place - – (i) in any of its supply chains, and – (ii) in any part of its own business.

The Universal Declaration of Human Rights 1948 states that “No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.”

Modern Slavery is an international crime, affecting an estimated 29.8 million slaves around the world . It is a global problem that transcends age, gender and ethnicities, including here in the UK and it’s important that we bring this hidden crime into the open. (Source: https://modernslavery.co.uk/) 40 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 41

HUMAN RIGHTS

Piloting New Achieving Good Collaborating & Initiatives Results Sharing Best Practice 81%

Reviewing Feedback & Developing Our Delivering Best Legal Compliance Approach Practice

MARSHALLS’ CHILDREN’S RIGHTS POLICY MARSHALLS’ HUMAN RIGHTS POLICY Marshalls supports children’s rights consistent with the UN Convention on Marshalls supports human rights consistent with the Universal Declaration of the Rights of the Child (CRC). The CRC sets out the basic human rights that Human Rights. In conducting its business activities across the globe Marshalls children everywhere: have the right to survival; to develop to the fullest; respects these rights and seeks to uphold, preserve and promote them. to protection from harmful influences, abuse and exploitation; and to participate fully in family, cultural and social life.

Marshalls acknowledges its corporate Guidance material for all employees about to the standard that offers workers the highest responsibility to respect and support children’s avoiding violence, abuse and exploitation of level of protection. Marshalls therefore follows rights and actively seeks to implement the children, plus specific guidance regarding the ETI Code, and ILO standard, and will not Children’s Rights & Business Principles (CRBP) children working for company employees, is permit children under 18 to work in its supply thereby supporting children’s rights in the available on the Company intranet. chain. workplace, marketplace and community. The CRC states that children have the right to a In addition, the Company provides information As a signatory of the UNGC, Marshalls seeks voice in matters that concern them and to have regarding issues of child labour and human to uphold the ten guiding UNGC principles their opinions given due weight, based on their rights guidance for all of its stakeholders, which act in support of children’s rights. In capacity and level of maturity. To ensure that including its suppliers, which is available in the conducting its business activities across the any consultations with children follow ethical publications section at www.marshalls.co.uk/ globe Marshalls respects children’s rights and standards and are effective and meaningful sustainabilty. seeks to uphold, preserve and promote them for children, and useful for the organisation. The Company has a programme of wherever possible. Marshalls engages with in-country NGOs engagement with its suppliers regarding the and/or community-based organisations to Marshalls has a Children’s Rights Ambassador implementation of UNGC principles and the organise safe and respectful consultation with on the board who is responsible for ensuring CRBP. All suppliers have received a copy of children. The Company also consults with other that the company’s Children’s Rights Policy is this Children’s Rights Policy and the Children’s experts on children such as UNICEF, human implemented across the business. Rights & Business Principles. rights organisations, national authorities and Marshalls’ Human Resources Department independent experts. Where children’s rights are under threat, provides detailed information and guidance Marshalls works to uphold local laws, Marshalls has an established protocol regarding through the Company’s induction process promote international standards and strives Marshalls works to ensure that its presence Where human rights are under threat, Marshalls actively seeks to collaborate the use of children’s images which demands regarding the avoidance of violence, abuse to have international standards upheld by the cultivates fair and sustainable relationships. Marshalls works to uphold local laws, with appropriate organisations to promote that consent is given by a child parent/ and exploitation of children. Annual appropriate governments, institutions and promote international standards and respect for human rights in a manner guardian. Marshalls respects and values the dignity, training workshops on children’s rights agencies. Marshalls embraces opportunities to strives to have international standards which is consistent with the role of well-being and rights of employees, their and the implementation of CRBP also take As a member of the Ethical Trading Initiative promote a broader understanding of children’s upheld by the appropriate governments, business. families and the wider community. The place. Additional training and guidance is (ETI), Marshalls commits to the ETI Base rights working within its sphere of influence. institutions and agencies. Company actively works and collaborates given to those employees who have greater Code which states that interpretation of the Marshalls actively seeks to collaborate with with employees, communities, non- Marshalls embraces opportunities to involvement with or exposure to potential child labour clause of the Code should be appropriate organisations to promote children’s December 2015 governmental and other appropriate promote a broader understanding of children’s rights issues, e.g. procurement done bearing in mind International Labour rights in a manner which is consistent with the stakeholders to uphold and promote human rights values working within its personnel, those travelling overseas, etc. Organisation conventions. In addition, the ETI role of business. these rights. sphere of influence. Code states that where national law and the code differ, the correct procedure is to adhere December 2015 42 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 43

HUMAN RIGHTS HUMAN RIGHTS

Our Human Rights Programme of Human Rights Compliance Assessment activity is framed by the International During 2016 we will finally complete the detailed process of undertaking a Human Rights Marshalls’ Human Rights Programme Bill of Rights, consisting of the Compliance Assessment across our business. The Human Rights Compliance Assessment Universal Declaration of Human Rights; (HRCA) is a tool designed to help detect human rights risks in company operations. It covers "There is a cast iron business case for our business & human International Covenants on Civil & all internationally recognized human rights and their impact on all stakeholders, including rights programme. Whilst it clearly takes into account risk Political rights, and on economic, employees, local communities, customers & host governments. This diagnostic tool has been social and cultural rights. It is mitigation and legislative compliance, it is much more to do developed by the Human Rights & Business Project at the Danish Institute of Human Rights HUMAN RIGHTS COMPLIANCE informed by and draws upon existing with further driving and embedding sustainability specifically and is a joint venture between the Danish Institute for Human Rights, the Confederation of ASSESSMENT (HRCA) methodologies and frameworks QUICK CHECK Danish Industries, and the Danish Industrialization Fund for Developing Counties, with the regarding human rights, working effectively and creatively including; The Danish Institute support of the Danish government. within the UN system, selectively extending our area of of Human Rights - Human Rights The Danish Institute for Human Rights Human Rights & Business Project influence and ultimately creating competitive advantage for Compliance Assessment; Nogogaia, 1 · HUMAN RIGHTS & BUSINESS IFE, UNGC, IBLF 'Guide to Human our business." Rights' and also Children's Rights & Marshalls CEO, Martyn Coffey Business Principles, and Women's Empowerment Principles. Human Rights Impact Sustainable Procurement Assessment Programme Sustainable procurement is at the heart of Marshalls approach to supply chain management. During 2016 we will be reviewing and It’s essentially about effective procurement which makes good business sense while also developing our Human Rights Impact promoting positive outcomes for the economy, environment and society. Sustainable Assessment process procurement and a responsible approach to supply chain management are a further IPEC demonstration of our commitment to UNGC pillars and the positive impact of the UNGC Marshalls has committed to the ILO’s International Program on the Benjamin Smith, (title) ILO-IPEC The HRIA programme will now incorporate framework upon our business. quarterly Human Rights business briefings Elimination of Child Labour (IPEC) Child Labour Platform to further our commented, “We warmly welcome The supply chain team and I work closely with our human rights, labour rights and and face-to-face workshops and training to work regarding the elimination of child labour in the sandstone sector in Marshalls engagement in IPEC’s Child international sales colleagues to ensure that our due diligence processes include a human Rajasthan, India, and as a result of our commitments to Children’s Rights & Labour Platform. Our aims are ultimately to supplement the online training available via the rights, gender, child rights and labour standards lens. During 2016 the supply chain team will Business Principles. identify the obstacles to the implementation Marshalls Certificate in Sustainability. be focusing upon embedding, implementing & reporting on our Modern Slavery commitments. IPEC, created in 1992 with the overall goal of the progressive elimination of the ILO Conventions in supply chains and Richard Beale, Supply Chain Director. of child labour, is the largest program of its kind globally and the biggest surrounding communities. We are seeking single operational program of the ILO. to identify practical ways of overcoming these obstacles and catalyzing collective action. One of our areas of focus is child labour in quarrying &mining. This has not Children's Rights received as much attention as some other "We are delighted to engage We are focusing upon embedding our forms of child labour, perhaps because the & Business with IPEC’s Child Labour Platform newly developed ‘Marshalls Protocol Regarding number of children involved is relatively Principles and as UNGC signatories it is a the Elimination of Child Labour’ which is small – estimated roughly at one million natural progression for us. The effectively a Standard Operating Procedure globally – many countries having only a Our focus for 2016 will be Elimination of child labour in (SOP) for the organisation. This sets out yet few hundred scattered here and there. But implementing our top 10 India is an issue that we’ve been further measures to help ensure a child labour its extreme danger demands that this form CRBP priorities following engaged in for ten years, but not free supply chain, and also importantly details of child exploitation must –and can – be our second CRBP audit one that we can solve alone. As a what should be done in the best interests of a stopped now.” during 2015. result of (recent UNICEF research child if an instance of child labour is identified. and)our second audit against the However, for maximum, positive and lasting IPEC's work to eliminate child labour is an CRBP framework and our recent impact an industry-wide standard operating important facet of the ILO's Decent Work publication ‘The Truth About Child procedure is required in order to identify all Agenda. Child labour not only prevents Labour in the Sandstone Sector’ stakeholders and clarify their roles in ensuring children from acquiring the skills and (2)we have a clear programme of child labour becomes a thing of the past and education they need for a better future, work regarding our own actions that the rights of children currently caught up it also perpetuates poverty and affects and also our leadership role in in the sandstone industry are safeguarded. national economies through losses in engaging the wider sector.” We will be working with a range of actors and competitiveness, productivity and potential stakeholders on this issue and IPEC is of key income. Withdrawing children from child Chris Harrop, International Marketing importance to this process." labour, providing them with education Director, responsible for sustainability and assisting their families with training Elaine Mitchel-Hill, Marshalls' Business & Human and employment opportunities contribute Rights Specialist " directly to creating decent work for adults. 44 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 45

HUMAN RIGHTS HUMAN RIGHTS

Women's Empowerment Principles Modern Slavery Awareness Marshalls has already begun the process of mapping its Programme operations against the Women's Empowerment Principles I will work tirelessly to make the framework, a collaboration between UNGC and UN Women. During 2016 we will undertake a Modern Independent Anti-Slavery Commissioner UK a more hostile environment This work will continue during the first half of 2016 with a Slavery Awareness Programme throughout our Strategic Plan 2015–2017 for traffickers and slave masters to view to becoming a WEPS signatory. UK operations. It is important that everyone operate in and to develop strategies understands what modern slavery is and that to address demand that contributes they are empowered to act should they see to modern slavery. Ensuring that this either within a business context or within the new powers in the 2015 Modern My prioritiesthe community.as Commissioner As well as supporting the Slavery Act are fully utilised, such as My immediate aimshuman as Commissioner rights of are all twofold: individuals to see an weincrease also in needthe numbers of victims of modern slavery the use of enhanced tools to target that are identifiedto ensureand referred that for appropriatewe are not support; corporate and, in tandem, victims to see of an increase in the numbers of criminal finances, and trafficking prosecutions and convictions of traffickers and slave masters. criminality in this respect. PRIORITIES prevention and risk orders, will be My priorities, andWe the willactions work I will in be supporttaking to of paramount importance. I am achieve them, willof all the be framed Anti bySlavery a dedicated Victim Identification & Care adherence to the ‘4P’ paradigm that serves as also focused on improving efforts the fundamental Commissioner,international framework Kevin to To drive improved identification of victims of modern slavery and enhanced levels of immediate to prevent these crimes from ever combat modern slaveryHyland, (Prevention, and the Protection, aims of and sustained support for victims and survivors Prosecution and Partnerships), as well as a across the UK occurring in the first place, in the UK thorough understandinghis Strategic of the HM Plan Government 2015 and in other countries of origin. Modern Slavery Strategy’s- 2017. closely linked ‘4P’ framework (Pursue, Prevent, Protect and Prepare). Law Enforcement Evaluation Partnerships Government departments and agencies are now To promote an To identify, promote experienced in using this framework to counter improved law and facilitate best My immediate aims as enforcement and practice in modern slavery and other serious and organised criminal justice partnership working, Commissioner are twofold: to see an crimes. response across the and to encourage UK, to support development and improved data sharing and high increase in the numbers of victims adoption of effective training, quality research into key issues I will submit annual reports setting out the extent and to increase awareness of of modern slavery that are identified to which my objectives and priorities have been modern slavery across relevant statutory agencies met, which will be laid before Parliament. and referred for appropriate support; and, in tandem, to see an increase My first priority is to drive improved Private Sector Engagement International Collaboration identification of victims and enhanced levels To engage with the To encourage in the numbers of prosecutions and private sector to effective and of immediate and sustained support. promote policies to targeted international convictions of traffickers and slave ensure that supply collaboration to While the Home Office has estimated that there chains are free from combat modern slavery masters. slavery and to encourage are up to 13,000 potential victims of modern effectual transparency reporting My priorities, and the actions I will slavery in the UK, in 2014 just 2,340 potential victims were referred to the National Referral be taking to achieve them, will all be Mechanism1 (NRM). Whilst there has been a framed by a dedicated adherence consistent and sustained increase in the number of potential victims identified since the introduction of the NRM in 2009, significant numbers of victims are not to the ‘4P’ paradigm that serves being identified and therefore remain unprotected and in situations of abuse and exploitation. Improving efforts as the fundamental international to identify potential victims is therefore crucial. The identification of victims of modern slavery is a prerequisite for their access to assistance and protection. framework to combat modern slavery (Prevention, Protection, Once victims are identified, I am focused on ensuring they receive the support and care they need, including protecting them from the risk of further abuse. A victim and human rights-centred ethos is at the very core of Prosecution and Partnerships), as my outlook as Commissioner.Marshalls A constant Certificate and consistent focus on victimsin and their needs is absolutely vital. Every stage of the trafficking and enslavement process can involve physical, sexual and psychological abuse and violence, well as a thorough understanding deprivation, torture, manipulation, economic exploitation and abusive working and living conditions. As a result of the HM Government Modern many victims sufferSustainability from an array of physical and psychological health problems. I will also be concentrating on ensuring that the unique vulnerabilities of children to trafficking and enslavement are properly addressed. Slavery Strategy’s closely linked Sustainability is fundamental to Marshalls ‘4P’ framework (Pursue, Prevent, Our primary aim must be to help victims to recover. Evidence from across the globe also makesModule clear that 7: without effective supportand for affectsvictims it isall very parts difficult of the to increasebusiness. the numberTo helpof prosecutions. Victims must be made to Protect and Prepare). Government feel safe and confidentensure enough that toall come employees forward and areshare knowledgeable their accounts. I am certain that unlessResponsible appropriate Global departments and agencies are now support is providedand to engaged,victims, together we arewith aaiming parallel investigation to launch into the crime, vulnerableSupply people Chains will not BRS 6001 receive justice, offences will go unpunished and offenders will continue to view modern slavery as a low risk and experienced in using this framework high profit crime.the ‘Marshalls Certificate in Sustainability’, This is to certify that ...... to counter modern slavery and other developed in consultation with Global has achieved Module 7 of Marshalls Certificate in Sustainability ...... (date) serious and organised crimes. Compact Local Network UK. This online training programme harnesses core values of 1 The National Referral Mechanism is the framework for identifying victims of modern slavery and ensuringSigned they ...... receive the Kevin Hyland, Independent Anti Business & Human Rights Training appropriate support.leadership, excellence, trust and sustainability Chris Harrop, Marshalls Director of Marketing,3 Responsible for Sustainability & UNGC UK Network Chair Slavery Commissioner to address the UNGC principlesForeword - human rights, The business and human rights message is extremely important for Marshalls and https://www.gov.uk/government/ labour rights, environment & anti-corruption to ensure that all employees are up-to-date and understand why this matters to Certified by uploads/system/uploads/ - and also focuses upon responsible global UNGC Network UK us during 2015 we have developed a specific Business & Human Rights training attachment_data/ supply chains. course. This can be accessed by all employees on our online Marshalls Learning file/468729/IASC_ Zone. This will continue to be rolled our during 2016 and we look forward to StrategicPlan_2015.pdf employee feedback. 46 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 47

HUMAN RIGHTS HUMAN RIGHTS TARGETS

HUMAN RIGHTS INFORMATION AND EDUCATION ACHIEVEMENTS 2015 TARGETS 2016 RIGH AN TS Marshalls Response to... M RIGH U N T H A S M U S H IN ACTION The Ruggie T H H U G S M I IN ACTIONT A R N H H U G Framework MAN RI Worked continuously to uphold the ETI base code Continue to work to uphold the ETI base code throughout to help ensure that no child labour is used within our operations to help ensure that no child labour is used the supply chain. within the supply chain. BEHAVING THE TRUTH ETHICALLY ABOUT IMPORTED RIGH AN TS Marshalls M U

H Indian

S Development of the reporting process undertaken by social Further improve and develop the reporting process for in India IN ACTION T H H Sandstone U G MAN RI auditors in the supply chain, including the reporting social auditors and any associated corrective action plans. 1 and monitoring from the Indian supply chain.

N RIGHT N RIGH A S A TS Ongoing monitoring and evaluation of human Further develop our human rights monitoring and M M U U RIG H H H Human Rights Human Rights Human Rights AN TS M U S S rights in India, including HRIA. evaluation programme. H IN ACTIONT IN ACTION Impact Impact T Impact H H H H U G U G MAN RI MAN RI IN ACTIONS Assessment T Assessment Assessment H H U G Programme Programme Programme MAN RI India. Vietnam. China. Development of a human rights programme; including Further development of the human rights programme; human rights assessment check and human rights completion of the Human Rights Assessment Check and impact assessments. development and integration of the human rights impact assessment process and information.

Continuously worked on the process of embedding human Further work on the process of embedding human rights rights within the organisation; working closely with human within the organisation; working closely with human

RIGH resources and procurement teams. resources and procurement teams; and delivering the AN TS M U

H appropriate internal training regarding human rights & IN ACTIONS T H H U G MAN RI #2 THE TRUTH ABOUT IMPORTED business, especially in relation to modern slavery. RIGH AN TS M U Indian H Human IN ACTIONS Sandstone T H H U G Rights MAN RI Continue to implement our CRBP top 10 priorities. Guidance Marshalls Response to...

N RIGH A TS Children’s Rights M U

H and Business IN ACTIONS T H H Principles U G MAN RI 01 Finalise our WEPs audit and implement recommendations. Marshalls produced a comprehensive range of booklets regarding its human

THE TRUTH ABOUT rights approach and commitments to engage and inform its wide range of Child Labour in the stakeholders; including employees, customers, suppliers and NGO partners. Indian Sandstone Industry The latest addition to the suite is The Truth About Child Labour in the Indian N RIGH A TS Sandstone Sector. M U Deliver our first Modern Slavery Act Disclosure Statement H

IN ACTIONS T H H and work with ‘critical friends’ to develop and work on the U G All of these booklets are available in the publications section of the MAN RI sustainability website and can be accessed at www.marshalls.co.uk/ associated KPI’s. sustainability/publications 48 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 49

LABOUR 4/ 5/ 6/ CHILD LABOUR SHALL LIVING WAGES ARE PAID WORKING HOURS ARE NOT NOT BE USED 5.1 Wages and benefits paid for a standard EXCESSIVE Piloting New Achieving Good Collaborating & working week meet, at a minimum, national Initiatives Results Sharing Best 4.1 There shall be no new recruitment of child legal standards or industry benchmark 6.1 Working hours comply with national laws Practice labour. 74% standards, whichever is higher. In any event and benchmark industry standards, whichever 4.2 Companies shall develop or participate in wages should always be enough to meet affords greater protection. and contribute to policies and programmes basic needs and to provide some discretionary 6.2 In any event, workers shall not on a regular which provide for the transition of any child income. basis be required to work in excess of 48 hours found to be performing child labour to enable 5.2 All workers shall be provided with written per week and shall be provided with at least Reviewing Feedback her or him to attend and remain in quality and understandable information about their one day off for every 7 day period on average. & Developing Our Delivering Best education until no longer a child; “child” and Legal Compliance Approach Practice employment conditions in respect to wages Overtime shall be voluntary, shall not exceed “child labour” being defined in the appendices. before they enter employment and about the 12 hours per week, shall not be demanded on a 4.3 Children and young persons under 18 particulars of their wages for the pay period regular basis and shall always be compensated shall not be employed at night or in hazardous concerned each time that they are paid. at a premium rate. conditions. 5.3 Deductions from wages as a disciplinary Marshalls’ approach to labour rights continues to be driven by the 4.4 These policies and procedures shall measure shall not be permitted nor shall any conform to the provisions of the relevant ILO deductions from wages not provided for Ethical Trading Initiative Base Code, the UNGC Labour principles and the standards. by national law be permitted without the organisations’ commitment to sustainable business. expressed permission of the worker concerned. All disciplinary measures should be recorded.

THE ETI BASE CODE STATES THAT: 1/ 2/ 3/ EMPLOYMENT IS FREEDOM OF ASSOCIATION WORKING CONDITIONS ARE FREELY CHOSEN AND THE RIGHT TO SAFE AND HYGIENIC. 1.1 There is no forced, bonded or involuntary 3.1 A safe and hygienic working environment prison labour. COLLECTIVE BARGAINING ARE shall be provided, bearing in mind the 1.2 Workers are not required to lodge “deposits” RESPECTED. prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be or their identity papers with their employer and 2.1 Workers, without distinction, have the taken to prevent accidents and injury to health are free to leave their employer after reasonable right to join or form trade unions of their own arising out of, associated with, or occurring in notice. choosing and to bargain collectively. the course of work, by minimising, so far as is 7/ 8/ 9/ 2.2 The employer adopts an open attitude reasonably practicable, the causes of hazards towards the activities of trade unions and their inherent in the working environment. NO DISCRIMINATION IS REGULAR EMPLOYMENT IS NO HARSH OR INHUMANE organisational activities. 3.2 Workers shall receive regular and recorded PRACTICED PROVIDED TREATMENT IS ALLOWED 2.3 Workers’ representatives are not health and safety training, and such training 7.1 There is no discrimination in hiring, 8.1 To every extent possible work performed discriminated against and have access to shall be repeated for new or reassigned 9.1 Physical abuse or discipline, the threat of compensation, access to training, promotion, must be on the basis of recognised carry out their representative functions in the workers. physical abuse, sexual or other harassment and workplace. termination or retirement based on race, employment relationship established through verbal abuse or other forms of intimidation shall 3.3 Access to clean toilet facilities and to caste, national origin, religion, age, disability, national law and practice. 2.4 Where the right to freedom of association be prohibited. potable water, and, if appropriate, sanitary gender, marital status, sexual orientation, union and collective bargaining is restricted under 8.2 Obligations to employees under labour The provisions of this code constitute minimum facilities for food storage shall be provided. membership or political affiliation. law, the employer facilitates, and does not or social security laws and regulations arising and not maximum standards, and this code 3.4 Accommodation, where provided, shall be hinder, the development of parallel means from the regular employment relationship shall should not be used to prevent companies clean, safe, and meet the basic needs of the for independent and free association and not be avoided through the use of labour-only from exceeding these standards. Companies workers. bargaining. contracting, subcontracting, or home-working applying this code are expected to comply 3.5 The company observing the code shall arrangements, or through apprenticeship with national and other applicable law and, assign responsibility for health and safety to a schemes where there is no real intent to impart where the provisions of law and this Base senior management representative. skills or provide regular employment, nor shall Code address the same subject, to apply that any such obligations be avoided through provision which affords the greater protection. the excessive use of fixed-term contracts of employment. 50 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 51

LABOUR LABOUR

Implementing the Marshalls has been actively working to eliminate child labour ETI Base Code Head of Sustainability in the quarrying sector in Rajasthan for over 10 years All supply chains presents their own unique challenges wherever they are in the world. Implementing the ETI Base Code across all of Through a comprehensive research and risk based approach, including due diligence Providing free primary education, advocating The findings of the UNICEF research “Children’s our global supply chain operations is managed with distinct labour rights and human rights parameters, we assess our trading regarding children’s rights and offering Lives Cast in Stone 2015” will inform our and overseen by our Head of Sustainability, partners, not only at the beginning of any relationship but on an ongoing basis. We are practical support in terms of fair pay, social approach to working with our suppliers, David Morrell and (title) Rory Kendrick. Working ideally seeking long term relationships and often work with our suppliers utilising our insurance, health care, adult literacy and partners and the community in India. closely with our in-country social auditors, knowledge and resources to help ensure that workers’ rights are not only observed but workers’ rights education all of which are our independent auditors and our Head of actively promoted. factors involved in issues of child labour. Procurement, Richard Beal, the organisation works hard to ensure that customer demands As Head of Sustainability, and the key point of contact with the ETI, I work to ensure that do not impact negatively upon workers. all employees and stakeholders involved in our supply chains are aware of our adherence to the Base Code, our human rights and related policies, and of our wider commitments to the communities in the places that we do business. David Morrell

International

Natural Stone Number of health Dedicated maternal Specialists Door-to-door Children’s Responsible for sourcing new camp beneficiaries: health clinics: treatment needs: consultation and immunisation medicine distribution: and vaccination natural stone products worldwide at health camps: and identifying suitable trading 81,207 1,729 1,261 partners, a key part of my work - including special HIV/ ie. Paediatrician, skin 43,027 is due diligence and supplier AIDS screening support & specialists, cancer 1449 auditing. I'm specifically looking education, malaria & TB. specialist. to assess whether our suppliers, new and existing, meet the These info-graphics show ETI base code standards and the impact of Marshalls’ UNGC principles. Once a trading work on the ground in Kota. relationship is established I work We’ve worked tirelessly since with suppliers to guide them 2005 with local partners to understand, identify and on a journey of continuous support issues important to improvement in ethical standards. quarry workers in the region. Rory Kendrick Number of students Insurance pro- Number of labourers Women’s literacy Moving forward we will work with UNICEF, following attending schools vided to workers: claiming on insurance: pilot project the research phase of (annual student beneficiaries: our partnership, which places): included living and working 4000 342 conditions of workers & their 186 families across the region, to 1,793 implement programs on-the- ground. 52 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 53

LABOUR LABOUR

What We’re Doing Now The report’s key Creating a responsible Through a strategic partnership, which began This important research - recommendations and transparent industry in January 2014, Marshalls and UNICEF UK have 'Children’s Lives Cast in Stone’ been working together to help vulnerable - confirms our fears, observations and are set out across the ❖❖Ensure due diligence processes for children affected by exploitative child labour understanding regarding the extent of core worker rights and human rights in India’s sandstone quarrying sector. The child labour in the industry and finally following three areas: are embedded in the sector partnership set out to deliver child protection draws a line in the sand. It’s an issue ❖ ❖ projects in 50 villages in India’s Rajasthan State, ❖Creating a supportive policy and ❖Establish a living wage benchmark that we’ve been engaged in for ten regulatory framework to protect reaching approximately 10,000 children. This ❖❖ Establish Standard Operating years, but not one that we can solve children activity set out to develop a community-based Procedures for instances of child infrastructure which supports the protection of alone. ❖❖Creating a responsible and labour children and the elimination of child labour. In response to UNICEF’s report findings and transparent industry ❖❖ Establish a voluntary sustainability recommendations Marshalls has a clear ❖ plan of action regarding its own actions and ❖Creating improved communities standard within the sandstone sector. also its leadership role in engaging the wider for workers in the industry. sector. Creating better Creating a supportive Marshalls’ own activity will be focus upon communities for workers embedding its newly developed ‘Marshalls policy and regulatory Protocol Regarding the Elimination in the industry of Child Labour’ which is effectively a framework to protect ❖ Invest in public infrastructure Standard Operating Procedure (SOP) for ❖ Helping to ensure that systems – with a specific focus on UNICEF/MARSHALLS the organisation which sets out further children the District is able to measures to help ensure a child labour free improving education and health care ❖❖Review and strengthen child PARTNERSHIP implement special supply chain, and also importantly details systems Interventions on the Developing a health protection systems at state, district, training to ensure that what should be done in the best interests ❖❖Ensure the availability of safe and Ground Already Making referral system for children of a child if an instance of child labour is block and panchayat level children are prepared for potable water and improved provision a Positive Impact and their families. identified. However, for maximum, positive ❖ mainstream schooling. ❖Clarify and better define the for sanitation within communities and lasting impact an industry-wide jurisdictions and responsibilities of standard operating proceedure is required central and state government actors ❖❖Develop community mobilisation in order to identify all stakeholders and programmes around health, nutrition, EDUCATING KEY STAKEHOLDERS clarify their roles in ensuring child labour ❖❖Review industry structures to and early childhood development. REACHING - teachers, community leaders, young becomes a thing of the past and that the identify impacts on social welfare 10,000 children ❖❖The full recommendations can be people about child protection, education rights of children currently caught up in the and fair competition to ensure and around 50,000 sandstone industry are safeguarded. marginalised and vulnerable people found in the report www.marshalls. and the rights of children. co.uk/sustainability/Publications_ members of the quarrying We will also be working to establish are protected. population in 50 villages - raising Library/publication/7/Reports/ a Living Wage Benchmark for the awareness of the harms of child Working with the local labour and the advantages of school management WORKING WITH region using Living Wage Foundation school education. committees in 50 villages and OXFAM methodologies. Where to improve the enrolment 50 SCHOOLS appropriate Marshalls will include these and retention of children to develop and and other actions as a result of the research from the quarrying deliver child friendly recommendations into its ongoing Human STRENGTHENING community. schools. * Rights Impact Assessment programme, its Children’s Rights & Business Principles 20 CHILD process and the organisations targets set protection committees SENSITISING out in its annual UNGC Communication On to ensure the protection of Identifying vulnerable families Progress. children in the quarrying region. DISTRICT and children in the 50 villages AND LOCAL Scrutiny of a business’s human rights impact and linking them to OFFICIALS are at an all-time high and it’s now time Helping to ensure that Kota District has a for the sector to integrate Children’s Rights SOCIAL on the issues which and Business Principles into its thinking and clear plan for child protection; including children in the operations. PROTECTIVE MEASURES for children PROTECTION quarrying region face. among the quarrying community. Elaine Mitchel-Hill, Business SCHEMES. and Human Rights Specialist 54 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 55

LABOUR: LIVING WAGE LABOUR: LIVING WAGE

Marshalls was awarded the Living Wage Employers Accreditation in 2014. This is only available in the UK. In India, Marshalls works with NGOs and others to calculate a living wage which is paid to those working in its supply chain there. 1/ 2/ 3/ ACCREDITATION INTELLIGENCE INFLUENCE Offers accreditation to employers that pay the Provides advice and support to employers Provides a forum for leading employers and Living Wage, or those committed to an agreed and service providers implementing the service providers to publicly back the Living timetable of implementation, by awarding the Living Wage including best practice guides; Wage. Work with Principal Partners who bring Living Wage Employer Mark. case studies from leading employers; model financial and strategic support to our work. The procurement frameworks and access to Foundations coordinates Living Wage Week Offers a Service Provider Recognition Scheme specialist legal and HR advice. We coordinate each November, a UK wide celebration of the for third party contractors who pay their own the announcement of the new Living Wage Living Wage. staff the Living Wage and always offer a Living rates each November. Wage option when submitting tenders.

What are the benefits? > GOOD FOR BUSINESS > GOOD FOR FAMILIES > GOOD FOR SOCIETY WHAT IS IT? An independent study examining the business The Living Wage campaign was launched in The Living Wage affords people the benefits of implementing a Living Wage policy in opportunity to provide for themselves and their 2001 by parents in East London, who were London found that more than 80% of employers families. frustrated that working two minimum wage • An hourly rate set independently • The Living Wage enjoys cross believe that the Living Wage had enhanced jobs left no time for family life. and updated annually party support, with public the quality of the work of their staff, while 75% of employees reported increases in work backing from the Prime Minister absenteeism had fallen by approximately 25%. quality as a result of receiving the Living Wage. The causes of poverty are complex and in order • The Living Wage is calculated and the Leader of the Opposition to improve lives, there should be a package of according to the basic cost of Two thirds of employers reported a significant 50% of employees felt that the Living Wage solutions across policy areas. The Living Wage impact on recruitment and retention within had made them more willing to implement can be part of the solution. living in the UK • Paying the Living Wage is their organisation. 70% of employers felt that changes in their working practices; enabled good for business, good for the the Living Wage had increased consumer them to require fewer concessions to effect • The current UK Living Wage is individual and good for society awareness of their organisation’s commitment change; and made them more likely to adopt £7.85 an hour to be an ethical employer. changes more quickly. • The Living Wage Employer Mark Following the adoption of the Living Wage PwC • The current London Living Wage and Service Provider Recognition found turnover of contractors fell from 4% to 1%. 75% of employees

is £9.15 an hour Scheme provide an ethical badge reported increases in for responsible pay work quality as a result • Employers choose to pay the Living Wage on a voluntary basis of receiving the Living Wage. 50% of employees felt that the Living Wage had made them more willing to implement changes in their working practices 56 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 57

LABOUR LABOUR: TARGETS

Social Auditors

Central to ensuring that the ETI Base Code is implemented and embedded within its supply ACHIEVEMENTS 2015 TARGETS 2016 chain and operations are Marshalls’ social auditors in India, China & Vietnam. Social auditors works on a daily basis with Maintained accreditation to IMS. Maintain accreditation to IMS. quarry owners, factory owners, managers and workers to ensure the ongoing implementation of the ETI Base Code. Marshalls’ head office has daily contact with the social auditors who provide weekly reporting on all aspects of the Base Code; for example Continued to research, report and embed relevant Maintain information gathering regarding labour laws the amount workers are paid, the hours that they work, the conditions they work in, health information regarding labour laws and their throughout our supply chain. and safety, measures that no child labour is implications across the supply chain. used and that there is no harsh or inhumane treatment of workers. Satya and Hitesh in India, undertaking social audits. Further developed the social auditor reporting Work to further improve the social auditor reporting processes. process; and any associated correct action plan processes and procedures.

Worked in a strategic partnership with UNICEF Implement the recommendations resulting from the to end child labour in the sandstone sector. UNICEF research.

Stirling Smith, Just Solutions Ltd, auditing and Work with procurement team to review and revise verifying activity on the ground. supplier code of conduct as appropriate to reflect the Modern Slavery Act.

Marshalls’ sole supplier in India is Stone Shippers Ltd. The long Work with human resources team to further develop term relationship has enabled Marshalls to share its knowledge systems and procedures which help to ensure that no with the organisation and to work closely to embed sustainable modern slavery takes place within our operations. practices, and to monitor these on an ongoing basis. Maintain Living Wage accreditation. STONE SHIPPERS UNDERTAKES SOCIAL RESPONSIBILITY ACTIVITY INCLUDING: Safety education workshops for employees and subcontractors. Awareness raising about issues of child labour and establishing crèche facilities. Building schools and donating computers. Provision of uniforms, books and mid-day meals for children at local schools. Work with ILO IPEC Child Labour Platform to contribute Free medial health checks and visits by the Doctor. further to the eradication of child labour. Supporting local hospitals by providing blankets, bed linen and air conditioning units. 58 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 59

ENVIRONMENT ENVIRONMENT

Piloting New Achieving Good Collaborating & Initiatives Results Sharing Best Practice 78% The key environmental issues for Marshalls are climate change, water and biodiversity.

Reviewing Feedback These are particularly significant because Biodiversity is also key because of the & Developing Our Delivering Best Legal Compliance Approach Practice Marshalls is aware of its contributions to activities Marshalls carries out – extracting man-made climate change (as detailed by material has an impact on the environment the Inter-Government Panel on Climate and it’s only by working with the land that Change) and as such is committed to we can manage our impact on the land. helping reduce it.

Due to Marshalls’ status the environmental Marshalls’ environmental targets relate to Water as a resource is becoming scarce key performance indicators will be published strategic plans which are driven by board and Marshalls has identified clean water alongside the annual report in April. This will executives and implemented by a large shortage as one of the biggest challenges be available online in due course. internal resource. Systems, which represent a of the future. significant investment, are in place throughout At the heart of Marshalls’ sustainable business the business and allow the real time monitoring model, shown earlier in this report, is an of energy consumption and how this relates to approach which combines key business issues carbon reduction measures. and KPIs with third party verification, legislation and industry standards including ISO14001 for Marshalls’ Environment & Climate Change environmental management. Policy documents the related key performance indicators. Key environmental targets and drivers for our business are determined by legislative requirement and also the Company’s commitment to sustainability, cost efficiency and shareholder value. Marshalls receives BRE Global’s latest Responsible Sourcing credential

Environmental Policy Statement Energy and Climate Change Policy Statement Marshalls is proud to announce that We continue to commit to the principles the newly revised Issue 3.0, and with a Marshalls is committed to achieving the highest standards of environmental performance, The use of energy is vital in the supply and manufacture of our products and represents a preventing pollution and minimising the impact of our operations. The Group’s aim is to minimise significant proportion of our operating costs. Rising energy costs for us and in our supply we are the first company in our sector of responsible sourcing, covering social, ‘Very Good’ rating, Marshalls has set a the environmental damage that occurs as a result of our activities and policies are being chain, growing concerns over the security of supply and of climate change mean that the implemented to ensure that all our operations meet or exceed the requirements of legislation and importance of controlling our energy use and reducing our reliance on fossil fuels has never applicable best practice. been so high. This policy document is consistent with our sustainability strategy and supports to be awarded BRE Global’s BES 6001 environmental and economic principles precedent for other companies to follow.” our vision by helping us to operate our business, as market leaders, in a sustainable and Marshalls regards compliance with relevant environmental laws, and the adoption of responsible responsible manner. Responsible Sourcing certificate, under of which this standard forms an important standards where no legislation exists, as an integral part of our business strategy and we are Sustainability is one of Marshalls’ four key core values, balancing our environmental, social committed to considering the environmental impacts associated with our products throughout and economic impacts. In essence, achieving our goal of sustainability involves judging the their life cycle. The Group aims to make most efficient use of raw materials and to maximise use long-term merits of our business against this triple bottom line. their new and more stringent standard part. David Morrell, Head of Sustainability at of recycled and secondary raw materials, and production residues, where appropriate. The Marshalls recognises that sound energy management is vital to the future of our business and environmental stewardship of our major raw material suppliers is reviewed as part of the Group’s it must be fully integrated into our management and operational procedures so that it is an and have received a ‘Very Good’ Marshalls said: ongoing commitment to Responsible Sourcing. every day part of what we all do. Marshalls commits to ensuring that appropriate energy management systems are developed and maintained, and that sufficient resources are made Marshalls is committed to monitoring and measuring our environmental performance, using available to achieve the objectives of this policy in a sustainable manner performance rating. Katie Livesey, Head of Responsible “Marshalls is proud to be leading the appropriate external guidelines wherever practicable. Each operational site has assessed the This policy applies to all Marshalls businesses and covers our direct and indirect emissions, environmental aspects and impacts of its activities with objectives and targets being set with a including our supply chain. The policy requires Marshalls to: Sourcing at BRE said: industry in responsible sourcing. We take view to improving the overall environmental impact of those activities particularly in relation to • Reduce our corporate Green House Gas (GHG) emissions by 34% by 2020 and 80% Group targets. by 2050. These reductions are measured against a 1990 baseline. • Our target for absolute GHG emissions until 2020 requires an annual reduction of The scope of the certificate (RS0008) is for “BRE Global works to ensure products this issue extremely seriously and we This policy applies to all Marshalls businesses and requires Marshalls to: 3.1% in GHG emissions. 3 • Achieve a relative GHG emission target (excluding transport) of 7kgCO2e/tonne of • Reduce the volume of mains and extracted borehole water to 0.05m per tonne of a range of concrete, UK quarried natural and services protect people, property and are constantly seeking ways to further production by 2015 and then reduce by 3% pa thereafter. production by 2015, this will be reviewed during the year with new targets being set • Develop renewable projects that ensure we use 20% renewable energy in our • Manage Biodiversity where appropriate against site specific Action Plans manufacturing operations by 2020. stone paving and masonry products the planet. Many companies say they are enhance our sustainable credentials. • Reduce the weight of packaging per tonne of production by 2% per annum over a 3 year • Develop an adaptation and mitigation strategy for Climate Change and fossil fuel rolling cycle to a level where pack and product safety is not compromised depletion. (Marshalls Stancliffe Stones). ‘green’, but these claims are not easily • Reduce the % of total waste to landfill per production output by 3% per annum on a 3 year • Extend the coverage of the Energy Management System to include product carbon rolling average footprints, supply chain emissions and GHG gasses other than CO2. • Review the Group’s targets and Policy annually against business objectives and substantiated and often the result of “Not only is this a fantastic achievement • Comply with our legal obligation in the UK Government’s mandatory GHG reporting for commitments given to industry initiatives and wider stakeholders. The review being publicly listed Companies undertaken by the Sustainability Team • Comply with our legal obligation within the Energy Savings Opportunity Scheme, by There are a number of key differences to common marketing tactics. for us, but it also offers our clients third Marshalls will continue to raise environmental awareness within the Group through the gaining ISO50001 standard in 2015. development and training of our employees and will communicate openly and consult with the revised certificate launched in May party assurance that they are working Marshalls’ Energy Strategy details group wide projects and investments; this includes a plan customers, suppliers and other stakeholders on relevant environmental matters. of actions, timescales and resources up to 2020 to help us achieve our goals. Every operational site has an energy action plan, which is maintained by the site and details a 2014 making the scheme a more robust “It is great to see companies like Marshalls with a responsible partner.” Marshalls strives to protect and enhance biodiversity and natural habitats within our landholdings where possible. We also recognise the need for sympathetic restoration and after-use of quarry practical schedule of actions and investments. test of a product’s responsible sourcing embedding sustainability into the heart and other operational sites and consider the character of the local environment and the concerns Signed by: of the local community and other stakeholders when planning such matters. characteristics. of its business. As the first company in its Signed by: sector to be awarded BES 6001 against

Martyn Coffey, Chief Executive January 2015 Martyn Coffey, Chief Executive January 2015 60 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 61

ENVIRONMENT ENVIRONMENT

Carbon Reduction Energy Marshalls is on track to reduce its water Marshalls has already demonstrated good Climate change is one of Marshalls’ KPIs carbon footprints for all its commercial consumption of 0.053m3 per tonne of energy management by achieving The Carbon from the sustainable business model. products, bringing the total carbon Trust Standard and is now well equipped product by 2012. Marshalls has made a commitment to labelled products to over 3288 commercial for the Government’s Carbon Reduction Marshalls has committed to The Commitment Energy Efficiency Scheme (CRC), reduce emission of greenhouse gases and domestic hard landscaping products CEO Water Mandate, an initiative by which was launched in April 2010. by 80% by 2050 by employing energy – the most of any company in the world management systems, reviewing processes at the time. Since then, Marshalls has business leaders in partnership with Marshalls already voluntarily discloses and keeping abreast of new technologies, continued to work to reduce those product the international community. Its information on its greenhouse gas emissions, reporting progress, and developing carbon footprints. structure, covers six key areas in a risks, opportunities and plans via the Carbon tools to allow our customers to measure comprehensive approach to water Disclosure Project and The Prince’s May Day their impact. In 2009, Marshalls announced management, which will develop Landscape House, Premier Way, Network. The company is also addressing Lowfields Business Park, Elland, West Yorkshire HX5 9HT Marshalls current water management T 01422 312000 alternatives such as renewables, as well as F 01422 312999 approach to flooding, water quality www.marshalls.co.uk committing to reducing consumption through Marshalls Mono Limited Registered Office: Birkby Grange, Birkby Hall Road and drought management. Huddersfield HD2 2YA a number of energy management programmes. Registered in England No. 509579 A subsidiary of Marshalls plc

Now in its fifth year, the Energy Management Steering Group promotes Marshalls’ 1. Direct Operations 31st December 2012 carbon reduction policy throughout the organisation. Chaired by the Board Director Dear UN Global Compact Office 2. Supply Chain THE CEO WATER MANDATE: MARSHALLS PLC

Marshalls plc has been a UNGC signatory since early 2009. During the last four years the who reports on sustainability, the group meets quarterly to: oganisation has very tangibly experienced the positive impact of UNGC engagement in a plethora of 3. Watershed Management ways. Of key importance has been the development of our business strategy regarding the environmental principles, and also the resulting product development as we seek to contribute positively to the issues regarding water; namely drainage particularly in relation to the challenges • Identify current inefficiencies 4. Collective Action posed by increasing urbanization. As a result I believe that the time is right for us to engage fully with The CEO Water Mandate. I recognize that the private sector has an important stake in helping to address the water challenges • Advise on setting of company and site specific targets faced by the globe. Both myself, Marshalls board and senior management team, as well a great 5. Public Policy number of our employees, recognise that water stress is set to worsen in many parts of the world as a result of numerous factors including; urbanization, population growth, increasing food production, • Oversee training practices relevant to energy changes in consumption patterns, continued industrialization, water pollution and climate change. 6. Community Engagement I understand that strategic frame work presented in The CEO Water Mandate is voluntary and • Summarise progress for annual report and investors aspirational and that it represents an excellent opportunity for Marshalls to engage, excel and make a & Transparency positive contribution to the water challenges which are very real and set to worsen. With my full backing and commitment Marshalls is ready to embrace The CEO Water Mandate and • Review energy management procedures to work in the six areas identified within the Mandate; Direct Operations; Supply Chain and Watershed management; Collective Action; Public Policy, Community Engagement; and Transparency.

I look forward to sharing our progress in this area in our 2013 Communication on Progress. From the group, ideas and projects get filtered through sites and corporate teams to Yours faithfully, a team of 60+ energy champions who are based on site. Graham Holden CEO Marshalls plc

MANAGEMENT BOARD CHIEF OPERATING OFFICER Biodiversity Board Members Marshalls has drafted a biodiversity strategy, in consultation with external stakeholders, documenting a systematic approach to our legal, protection ENERGY MANAGEMENT STEERING GROUP and enhancement commitment CHAIR to the biodiversity on its sites. Waste Reduction & Packaging Energy Management Coordinator This strategy includes a priority During 2014 Marshalls continued to measure the amount of waste leaving site and Site/Regional/Business Managers Corporate Team Members approach to defining appropriate is on track to achieve its aim of reducing waste by 3% per annum averaged over sites together with evaluation of a three year period. The target for packaging is to reduce by 2% per annum over the biodiversity ecosystem services a three year period. The Company continues to carefully monitor the sourcing delivered. of timber by pallet suppliers having worked with them to achieve Forestry SITES/REGIONS Stewardship Counsel accreditation at the end of 2009. SITE/REGIONAL ENERGY CHAMPIONS ENERGY WORKING GROUPS Site Staff 62 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 63

ENVIRONMENT ENVIRONMENT: TARGETS

Eaglescliffe

• 97 acre site incorporating 12 acres of Woodland which is used by Eaglescliffe Forest School. ACHIEVEMENTS 2015 TARGETS 2016 • 112 employees • 66 in Works. Carbon foot-printing of 3288 products. To reduce emissions of CO2 in line with Government targets; • 20 in Logistics. 80% by 2050 and 34% by 2020. • 14 in Customer Service. • 12 in the Yard & Dispatch • 2 in Premier Mortars Carbon foot-printing of 3288 products. Carbon foot-printing of 3288 products. • Manufacture of Concrete Block Paving, Flag, Kerb, Edgings, Shot blasted products, Croft Walling and Tumbled products, Mortars and Screed

Uphold the BITC May Day Uphold the BITC May Day Network pledges. Network pledges.

Marshalls Energy Savings Week. Marshalls Energy Savings Week.

Reduce use of water from mains and licensed boreholes to Reduce use of water from mains and licensed boreholes to 0.05m3 per tonne of production 0.05m3 per tonne of production by 2015. by 2015.

Develop biodiversity plans for all appropriate sites. Implement biodiversity plans at selected sites.

Reduce by 3% the total waste-to-landfill per production Reduce by 3% the total waste-to-landfill per production output per annum on 3 year rolling average. Reduce by 2% output per annum on 3 year rolling average. Reduce by per tonne of production output per annum over a 3 year 2% per tonne of production output per annum over a 3 cycle to a level where pack and product safety is not year cycle to a level where pack and product safety is not compromised. compromised. 64 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 65

ANTI-CORRUPTION

Piloting New Achieving Good Collaborating & Initiatives Results Sharing Best Practice 68%

Reviewing Feedback & Developing Our Delivering Best Legal Compliance Approach Practice

The UK Bribery Act 2010 came into force on 1st July 2011. It amends and reforms UK criminal law and provides a Throughout 2011 there was great focus by the UNGC UK Network modern legal framework to combat bribery in the UK and on Anti-Corruption with a number internationally. of events and speakers attending education events open to UK Network members. Marshalls took advantage of these opportunities with a range of individuals from THE BRIBERY ACT CREATES THE FOLLOWING OFFENCES: within the organisation attending and reporting back.

The UNGC tenth principle 1# 2# commits signatories not only to actively avoid bribery, extortion ACTIVE BRIBERY: ACTIVE BRIBERY: and other forms of corruption but to develop policies and concrete promising or giving Passive bribery: agreeing programmes to address corruption a financial or other to receive or accepting and related risks. advantage. a financial or other advantage. Marshalls understands that bribery is not a victimless crime and that it discourages developmentally effective trade and siphons off funds away from projects designed to help the most disadvantaged. It tarnishes reputations, drains 3# 4# corporate motivation and distorts ACTIVE BRIBERY: ACTIVE BRIBERY: competition. Marshalls’ procurement Bribery of foreign public The failure of commercial policy can be viewed at: officials. organisations to prevent www.marshalls.co.uk/ bribery by an associated sustainability person (corporate offence). 66 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 67

ANTI BRIBERY CODE ANTI-CORRUPTION: TARGETS

1. In this Code, “Marshalls” means Marshalls plc employee that is unlawful or prohibited by 6. Monitoring and Compliance and its subsidiary companies. this Code will constitute gross misconduct • The Board of Marshalls plc has approved this and may result in dismissal. Employees may be 2. Marshalls is committed to conducting its Anti-Bribery Code and will set standards in suspended while investigations are carried out. business with the utmost integrity and in relation to its principles and their application accordance with the principles set out in the • Employees who engage or do business with across the Marshalls Group. ACHIEVEMENTS 2015 TARGETS 2016 UK Bribery Act 2010. third parties who act on behalf of Marshalls • The Audit Committee of the Board will review or represent Marshalls should ensure that this Marshalls plc is a signatory of the UN Global procedures across the Group and will monitor Code is drawn to their attention. Marshalls Compact, which informs and governs the way their effectiveness. expects such third parties to comply with this Continue to develop procurement for sustainability strategy in which we do business. Marshalls expects its Develop procurement for sustainability strategy Code and with the applicable law relating to • Designated individuals within each business employees and business partners to respect which has anti-corruption measures woven which has anti-corruption measures woven throughout. bribery. area, together with the Company Secretary and support our core values of trust, honesty (who oversees day to day compliance) have throughout. and integrity and to recognise and implement • Marshalls reserves the right to terminate responsibility for the implementation and this Code. immediately any contract or business development of such procedures. relationship with any agent, consultant, or 3. Marshalls does not tolerate the offering, other business intermediary where bribery has • All employees have an obligation to comply giving, requesting, receiving or acceptance of Develop and publish sustainable procurement Continue to develop and publish sustainable procurement occurred. with this Code and support and promote its guidance. bribes in any form. principles in their business function. guidance. A bribe is a financial payment or other form of 7. Any employee having a question or concern reward that is intended to induce or influence 4. Our Policies and Procedures in relation to this Code, the administration of an individual, company or public body to Marshalls has adopted policies and procedures Marshalls policies and procedures designed to perform their functions improperly. This may intended to address the potential risk of bribery prevent bribery, or any issue where guidance Ensure that this guidance is circulated to all Continue to ensure that this guidance is circulated to all include showing partiality, acting in bad faith and corruption. These include:- is sought on a particular set of circumstances or acting in a way that is inconsistent with a may raise it with their line manager or the suppliers. suppliers. • The Group Procurement Policy Statement; position of trust. Company Secretary (Cathy Baxandall, Birkby Bribes, for the purpose of this Policy, include • The Code of Ethics; Grange, Birkby Hall Road, Huddersfield HD2 facilitation payments, kickbacks and any other • Guidance on hospitality and gifts, and the 2YA: Tel: 01484 438930: email cathy.baxandall@ reward, favour or payment designed to induce maintenance of a hospitality and gifts register; marshalls.co.uk) or influence the recipient to perform his or her Ensure that this guidance is made publicly available Continue to ensure that this guidance is made publicly • The Serious Concerns Policy. 8. Any employee who suspects that bribery functions improperly. has occurred or that there has been any for all stakeholders. available for all stakeholders. These are regularly reviewed and updated, and In the case of a foreign public official, it is not other breach of this Code should report it in should be read together with this Code. This permitted to offer a payment or other reward to accordance with the procedure in the Serious Code and these policies can be accessed via a foreign public official that may influence that Concerns Policy so that it can be formally the Marshalls intranet. The hospitality and gifts official to give an advantage to our business, investigated. register is maintained at Birkby Grange (contact whether or not intended to induce improper Undertake a series of face-to-face briefing and Continue to undertake a series of face-to-face briefing and Gillian Harley/Jill Bedford). Adopted by the Board on 5 October 2011. performance. Graham Holden workshops with key suppliers. workshops with key suppliers. Among our procedures to mitigate risk are the Hospitality designed to improve business following:- Chief Executive Chairman relations which is proportionate to the circumstances and which is not for an • Supplier and customer risk assessments; improper purpose is not usually regarded as • Training for employees and those working Continue to communicate Marshalls Anti-Bribery policy a bribe. Further guidance can be found in for Marshalls or representing Marshalls in a Communicate Marshalls Anti-Bribery policy the Procurement Policy Statement and the business capacity ; internally and externally. internally and externally. Hospitality Guidelines. • Written commitments from those we work No employee, agent, consultant or business with to engage with the principles in this Code. intermediary acting for Marshalls may offer, give, request, receive or accept any bribes, 5. Marshalls will work with its business partners whether directly or indirectly. worldwide to develop and improve good Review and develop anti-bribery processes and Continue to review and develop anti-bribery processes and practice and to seek to eliminate bribery and corruption. It will select business partners who procedures. procedures. What does this mean for me? have adopted similar policies and objectives and will avoid doing business with those who • Any alleged or suspected incident of bribery act unlawfully or in a way that is not consistent will result in a formal investigation, and may with ethical business principles. result in disciplinary action for any employee involved. Any activity or behaviour by an 68 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 69

BUSINESS IN THE COMMUNITY BUSINESS IN THE COMMUNITY BUSINESS CLASS PROGRAMME

Business in the Community is the Prince's Responsible What is Business Class?

Business Network. Many young people struggle to learn about employment opportunities available to BITC members work together to tackle a wide The BITC are a business-led charity with them and develop the necessary skills range of issues that are essential to creating a more than 30 years' experience of mobilising and behaviour to access them. 30% of UK fairer society and a more sustainable future. business. It engages thousands of businesses employers say a lack of skills contributes to through our programmes driven through unfilled vacancies. a core membership of more than 800 organisations from small enterprises to global Without good role models, high quality corporations. work experience and encouragement there is a huge risk that an ever increasing group of young people in the UK will fail to build successful working lives.

Working together to take action.

BITC offers a range of practical ways for businesses to work together and take action to Students from Park Lane High School in Halifax help tackle some of the key issues facing society. So why are we doing this? So who is getting involved?

Environment Employment For Marshalls, contributing to our local There are currently 10 sites/teams Adrian Briggs, Sales Office Using our natural resources more Helping people overcome disadvantage communities is an element of our involved in the programme from Manager – Marshalls Street Furniture, sustainably. by creating access to sustainable, good commitment to our corporate social Falkirk down to Sittingbourne. Business Class Mentor employment. responsibility agenda. Externally, our brand is very much positioned Employees “Over the last three years I have around families including children Ensuring that age, gender, health and race Enterprise What kinds of things are been involved with the mentoring so our involvement in the Business do not limit an employee's engagement Creating jobs and vibrant communities by programme and also ran a careers day in the Community Business Class volunteers doing? and success in the workplace. supporting small, local businesses. at Park Lane High School, Halifax. programme enables team members to • Mentoring young people to help Education connect with this agenda. support career aspirations “Before the first meeting at the Ensuring a young person's success at For employees, it’s not just about • Bringing the curriculum to life such school I was apprehensive with how school and beyond is not determined by giving something back outside of the as learning about innovation from the programme would work and their social background. company, but there is the opportunity our marketing team and seeing our what it could achieve. I thought it for volunteers to share their expertise commercial products at West Lane may be difficult to gain the trust and and equally develop new skills to bring enthusiasm of the children involved. back into their team. Many volunteers • Delivering talks on what employers However the initial meeting changed find this both personally fulfilling and are looking for such as good my views entirely. I find the enthusiasm it also enhances the skills and talents attendance and a positive attitude and confidence in the children of our teams to continue to perform at • Preparing students for the world infectious and it has assisted me in the their best. of work to take them through direction required. It’s interesting to recruitment and practice interviews understand the children’s ambitions and try to nurture those ambitions to • Supported work experience become a realistic plan. opportunities “The programme has improved • Run enterprise/engineering each year with further sessions and competitions such as designing a structure and I’m sure this year will be bollard very successful for both the children and the mentors.” 70 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 71

BUSINESS IN THE COMMUNITY BUSINESS IN THE COMMUNITY

Enterprise Business Challenge helps young people to become future business leaders

A team of students from Halifax mentored by employees from Clare Chapman a mentor from Marshalls said: “After receiving an email about the mentoring scheme I knew that it was Marshalls were invited to compete in the regional finals of the something I wanted to be part of. For me taking part in the Business in the Community (BITC) Mosaic Enterprise Business mentoring scheme was not just about my own personal Challenge in March, after being placed among the top five development, but about the opportunity to be involved in the growth and development of a young adult. highest scoring schools in the West Yorkshire region. “Since starting the programme I have found the mentoring scheme rewarding and challenging. Working so closely with The Mosaic Enterprise Challenge is a national competition for a student enables you to develop a valuable relationship secondary school students across the UK, designed to develop with them and I feel very privileged to have been given the and encourage their entrepreneurial skills. opportunity to do so. It’s amazing to know that sharing your experience and knowledge could help change someone’s The competition began in January 2015 and involved four teams perspective on the decisions they make and how this might of five students from both Park Lane Learning Trust and Crossley affect their future. Heath School in Halifax. The year 10 students from the local schools were led by mentors from Marshalls - Donna Garside, “Over the course of a number of weeks I have watched as the Adrian Briggs, Clare Chapman and Andy Ackroyd. students have made decisions (good and bad) and worked together as a team to achieve a common goal. I challenged The mentoring scheme allows the students to learn about them to do better and was rewarded by the fact my team have becoming future business leaders, play a simulation game and made it through to the Regional Finals! I am incredibly proud of come up with fantastic business ideas. their achievement.” For the enterprise challenge they had to create and present a Watch out next year, we intend to bring home the trophy! business idea in the style of Dragon’s Den in front of five judges. This included financial reports, sales and marketing budgets and ethical trading. The team from Crossley Heath performed extremely well and managed to obtain second place.

Newport works helps local students with employability skills

The team at Newport have signed up to a Business in the The successful candidate, Katie, shone in her interview. She now has the opportunity to carry out a week’s work Community (BITC) partnership, working closely with and experience placement at the site where she will gain supporting their local school, Llanwern High. invaluable experience. The applicants, teachers, headteacher and the business manager from the school commented on the benefits of Through the scheme, representatives from the site attended the process. All candidates have received full and honest the school to deliver a presentation on Marshalls and offered feedback from their CVs and the interviews, which will a Year 12 class of Business Studies students the opportunity enable them to make the relevant improvements to their to apply for a theoretical position within Marshalls, either in application process in the future. Shop Floor Control and Planning, or as an Operative. Many thanks to the site’s management team for their Job specifications were issued for the two roles, with a involvement and dedication to the process. further follow up training session on employability, CV writing and good interview techniques. All students were asked to submit a CV and covering letter. The students then attended the site for mock interviews with the management team, including Production Team Leaders Steve Matthews, Matthew Cooper and John Jarvis, Process Improvements Co-coordinator, David Shefford, and Technology and Performance Manager, Paul Edwards. 72 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 73

BEST COMPANIES SURVEY - BEST COMPANIES UPDATE AND OUR EMPLOYEE A FANTASTIC RESPONSE AND A GREAT RESULT ENGAGEMENT PRIORITIES FOR 2014

Marshalls continues to focus closely on the established values Reminder of this year’s Best of leadership, excellence, trust and sustainability and to build Employee engagement In 2015 we are actively encouraged to take part these into all of its activities, involving employees. We are firmly participated, for the fifth successive during the planning stages, which will Companies scores focused on encouraging all staff, no matter where they are based, year, in the Best Companies Workplace establish agreed actions to improve to collaborate in all aspects, whether on work issues or as part of Engagement Survey, with over 85 our employee engagement during the the Group’s “Giving Back” programme, which continues to be a per cent of employees taking part (an year ahead. Communication with our growing activity. The Group has raised a substantial amount for increase from 75 per cent in 2014). The employees on matters of concern to good causes during 2015. In 2016 our focus will be to support Group also saw a positive increase in them is done in face-to-face briefings, via Prostate Cancer UK. For the second year Marshalls is proud to its Best Companies Index Engagement monthly newsletters, site notice boards be a “Living Wage Employer”, underscoring its commitment Score and we maintained our “One and our Group intranet. We operate to employees. In September 2015 we launched our employee to Watch” status. We are working on a structured consultation process in Sharesave scheme, which enabled employees to save a fixed detailed implementation plans that relation to pay and employment terms. amount for a period of 3 years in order to buy discounted shares at will address key focus areas that have Employee development We have a set price. The Sharesave offer was well received, with more than arisen from the survey. These include identified a number of priorities across 900 employees (representing 46 per cent of the eligible workforce) “Fair Deal,” “Giving Something Back,” all aspects of the employee life cycle, applying to participate. This demonstrates a significant level of “Wellbeing,” “Communications” and from attraction and recruitment to confidence on the part of our employees in Marshalls’ future. We “Personal Growth.” During 2016 we personal growth and career progression. Susie Fehr welcome and give full and fair consideration to applications from have a scheduled plan of monthly The introduction of a new centralised Group HR Director individuals with recognised disabilities to ensure they have equal activities, covering “Wellbeing” and HR information system during 2015 has opportunity for employment and development in our business. “Giving Something Back,” which will improved the quality of the Group’s Wherever practicable we offer training and make adjustments enable employees both to improve employee data metrics, which will be to ensure disabled employees are not disadvantaged in the their personal health and contribute used to improve medium to long- workplace. We also remain committed to employing a diverse to both our corporate charity partner, term talent recognition and people workforce and, in particular, encouraging more women to enter Prostate Cancer UK, and local causes. development, the wider adoption of Engaged organisations have strong and what has traditionally been a highly male-dominated workplace. Company-sponsored social activities shared best practice across our business Janet Ashdown joined Marshalls plc during 2015 as a Non- range from encouraging employees to and the introduction of new cohesive authentic values and stand by them. They Marshalls Continuing Mission is to Executive Director. take part in Sport Relief to a national initiatives. “Walk This Way” campaign. The survey demonstrate clear evidence of trust and Deliver Sustainable Growth through At the end of 2015 our workforce comprised 2,292 results are cascaded throughout all levels fairness based on mutual respect, where two- employees with the following gender balance: of the organisation, ensuring everybody a Brand that Drives Customer understands the feedback. Employees way promises and commitments – between Specification of Innovative Product employees and managers - are understood and acted upon. They may also have lower accident Solutions for the Built Environment levels, higher productivity, few conflicts, lower turnover and reduced sickness levels. 2015 Wellbeing Campaigns What does this mean? It’s about unlocking people’s potential 55,000 at work. It’s about retaining and building on the commitment, OVER THE LAST 12 MONTHS MARSHALLS EMPLOYEES HAVE RAISED AN IMPRESSIVE energy and desire to do a good job that the majority of people £55,000 FOR A RANGE OF CHARITIES 10 10 SCHOOL PARTNERSHIPS February: Heart Disease ACROSS THE UK THROUGH want to do. It’s both about the environment in which we work BUSINESS IN THE COMMUNITIES and the way people talk to each other. It’s about how people Awareness month connect, and how connected they feel to each other and the May: National Walking Month company. It’s the company’s responsibility to put in place the June: Men’s Health Week 2000 OVER 2000 FLU JAB conditions in which employees can thrive and to listen when VOUCHERSWERE July/August: Sun Awareness ISSUED TO EMPLOYEES things aren’t working out as they should. It’s the employees’ ACROSS THE BUSINESS responsibility to speak up and suggest solutions….a two-way September: Know your numbers, OVER100 100 OF OUR street….a place where responsibility is shared. Blood pressure TEAM LEADERS HAVE COMPLETED THE TEAM Above all, it’s a place in which we are proud to work, in which October: Leukaemia LEADER DEVELOPMENT PROGRAMME we feel that we are involved, have influence over our futures, have a stake in shared future success and truly believe in our 900 organisation’s mission. Where we belong. In November everyone will have the opportunity to OVER 900 EMPLOYEES HAVE SIGNED UP TO THE choose our new corporate charity. A shortlist will be SHARESAVE PLAN list available in the October TalkBack and a voting card 149 149 EMPLOYEES HAVE will be sent out with November payslips so you can vote TAKEN ADVANTAGE OF THE HALFORDS for which charity, from the shortlist, is your preference. CYCLE SCHEME £1 for every Best Companies survey completed will be donated to this new partner charity. 74 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 75

LONG SERVICE SPECIAL GARDEN MAKEOVER

The 31 employees have accumulated Chief Executive Martyn Coffey said: Celebrating long service 775 years of service between them “It’s so important for us to celebrate and were presented with a gift of their long service as these individuals have This year’s long service awards choice and certificate by Chief Executive contributed so much to the success presentation took place at Oulton Hall, Martyn Coffey. of this business over the last quarter Leeds to celebrate the commitment and of a Century, their experience is Three employees generously decided truly invaluable. I’d like to take this hard work of employees who have been to give something back and donate opportunity to thank them for all their Ramsbottom out in full force for their gifted money to charity. Michael with the company for 25 years. hard work and dedication, and I hope Moscrop, from Ramsbottom donated his they remain with the business for many special garden makeover money to Marie Curie Cancer Care, Paul more years to come.” Gardner from Ramsbottom gave his to Ramsbottom works helped The Forces Support MIND mental health, and Alexander Charity with materials for a special garden makeover Brown from Falkirk donated his to the Children’s Hospice Association Scotland. for the family of fallen hero Marine Paul Warren.

The garden makeover for the family near Preston, was organised by the charity which provides general maintenance around the home and garden for families who have lost their loved ones in conflict. The site kindly donated and delivered materials including Indian sandstone, Plum Slate chippings and Yorkstone stepping stones to make the garden build possible. Special thanks to Colin Hunter and Ian Counsell for their help at short notice, ensuring the products were delivered on time. Thecharity has since thanked Marshalls on Facebook for our support. 76 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 77

TRAINING & DEVELOPMENT HEALTH & SAFETY

Marshalls is committed to Investors in People and to OurStrategic internal Report Safety, HealthCorporate & Incident Governance PreventionFinancial (SHIP) Statements teams Shareholder Information supporting employees through NVQ accreditation. consist of employee representatives and managers and are the cornerstone of the safety management system at site level.

Modern Apprentice The SHIP teams meet regularly to the end of 2014 all but one site held this support and develop our safety accreditation. The organisation’s Health Alan Sugar’s apprentices may currently be Cameron has one more year of studying left programme. Marshalls’ operating sites & Safety Policy sets out the principles before he gains his Level 3 qualification this have been progressively implementing regarding the health and safety of the stars of the silver screen, but here at time next year, but after he finishes his studies Integrated Management Registration employees and performance is monitored Marshalls we have our very own! he would like to further his career at Marshalls. systems accredited by the British by the Board on a monthly basis. Standard Institution incorporating Cameron Atwal for the past year has been He said: “It’s been a great experience and I’ve the Occupational Health and Safety certainly learned a lot, and after I finish I’d Marshalls remains committed to meeting the highest safety undertaking a full-time apprenticeship at MSU Accreditation Standard 18001-2007; at whilst simultaneously studying for his Business like to stay on and continue to learn more. standards for all its employees, reinforcing and developing its safety and Admin NVQ in association with Barnsley Everyone here is great.” College. Paula Hird, Admin team Leader, said: “It’s a processes, and developing a competent workforce. Cameron is the first apprentice that Marshalls pleasure having Cameron here with us; he’s has taken on, and his colleagues at MSU worked really hard and gets on well with couldn’t sing his praises more. everyone. Apprenticeships are such a great way for young people to study whilst also Kath Lawton, Admin Assistant, said: “Cameron gaining real-world experience in a working really gets on well with everyone here, and environment. has been spending time working across lots of The headline target for 2015 was a 10 per cent reduction in days Sustainability website different areas, such as samples and purchase “Hopefully Cameron can lead an example, lost resulting from workplace incidents against 2014. The actual and Marshalls can continue to take on more www.marshalls.co.uk/sustainability ordering, as well as managing his own Marshalls remains committed to meeting the Duringreductions 2015, achieved the Group were: has invested additional resources in health and accounts. apprentices.” highest safety standards for all its employees, safety— 43.2 awareness per cent trainingreduction through in days lostits "Visibleresulting Felt from Leadership" workplace incidents;initiative, “He’s done a brilliant job, as well as working Congratulations on completing your first year Environmental reporting which has now been delivered to all managers and supervisory staff. Cameron, and good luck with your further reinforcing and developing its safety processes, and The— industry17.4 per leading cent reduction fleet safety in allstandards incident were frequency recognised rate; at the 2015 hard to fit in his coursework alongside being Marshalls publishes its environmental KPI performance for the here full time.” studies! developing a competent workforce with a view to Chartered Institute of Logistics and Transport Awards for Excellence with financial year in a separate document, the Marshalls Environmental Marshalls— 29.2 winningper cent thereduction prestigious in lost "Safety" time incident category. (“LTI”) Marshalls was also achievingKPI 2016 Report. long-term This covers improvement our energy performance gains, in andmore thisdetail, the winnerfrequency rate; and in both the "Engineering Initiatives" and the "Behavioural remainstogether witha key the priority reporting forof our the environmental business. governance, Safety, Safety Culture and Leadership" categories at the Mineral Products — 51.5 per cent reduction in rate of incidents reportable to the policies, management and key environmental impact areas such as Association's 2015 Health and Safety Awards. HSE under the Reporting of Injuries, Diseases and Dangerous Achievementwaste, water of and annual packaging. health and The safety Environmental improvement KPI 2016 targets Report is also directly linked to the remuneration of the Executive Directors and senior Occurrences Regulations (“RIDDOR”). details our work with internationally recognised expert bodies such management, as explained in the Remuneration Report. Brian Tait named best candidate in NEBOSH National Diploma as the Carbon Trust and the RSPB. The table below shows the KPIs used by the Group to monitor Our Safety, Health and Incident Prevention (“SHIP”) teams, consisting performance, and progress against those KPIs over the last 5 years. This section of the Annual Report has been audited by a qualified After achieving a distinction in his NEBOSH regarded within the industry.” of employee representatives and managers, are the cornerstone of Accident frequency and National Diploma in Occupational Health and theverifier safety managementon behalf of BSI. system On the at sitebasis level of theand meetwork undertaken regularly to this Dr. Michael Deary, who is responsible for severity rates (per 1 million Safety, Brian Tait, SHEQ Compliance Manager supportcarbon and statement develop isour considered safety programme to be a fair and reflection objectives. of theThe Group’sGroup’s hours worked)* 2011 2012 2013 2014 2015 NEBOSH programmes in the Department of at Marshalls North Shields was invited to his operatingperformance sites have during been 2015 progressively and contains implementing no misleading integrated information. Geography, said: “All of the teaching team graduation ceremony as a VIP where he was management registration systems accredited by BSI, incorporating All accidents 83.2 69.5 65.6 59.1 48.8 are absolutely delighted that Brian has been presented with the Best Overall Candidate accreditationHealth and to OHSAS safety (Occupational Health and Safety Accreditation given these two awards. Marshalls remains committed to meeting the highest safety standards All lost time award. Standard) 18001:2007. At the end of 2015 all UK operational sites within accidents 15.5 14.0 12.2 7.2 5.1 “To achieve the top overall mark from thefor Group all its heldemployees, a BS OHSAS reinforcing (18001:2007) and developing registration. its safety processes, Brian’s achievement was recognised at the over 400 candidates is an outstanding and developing a competent workforce with a view to achieving All RIDDORs 8.1 6.1 3.6 3.3 1.6 annual graduation and awards ceremony, achievement and reflects the enormous Thelong-term headline improvement target for 2015 gains, was anda 10 thisper remainscent reduction a key priority in days for lost held at the University of Warwick on 22nd All days lost 204.4 134.5 114.6 80.7 45.8 amount of hard work and dedication that resultingthe business. from workplace incidents against 2014. The actual reductions June. achieved were: — 43.2 per cent reduction in days lost resulting from Brian has put into his studies.“ Average UK Brian said: “The diploma has provided me workplaceAchievement incidents; of annual — 17.4 health per cent and reductionsafety improvement in all incident targets frequency is The NEBOSH National Diploma is the flagship headcount 2,456 2,252 2,055 2,132 2,237 with the tools and framework to drive rate;directly — 29.2 linked per centto the reduction remuneration in lost oftime the incident Executive (“LTI”) Directors frequency and NEBOSH award and is the first UK vocational change within Marshalls and has been a real rate;senior and management,— 51.5 per cent as reduction explained in in rate the ofRemuneration incidents reportable Report. * To align our accident statistics with those of the Mineral Products Association our base unit of qualification to be developed specifically for to the HSE under the Reporting of Injuries, Diseases and Dangerous measurement has changed to 1 million hours worked. Previous years' results have been amended assistance in my role. to reflect this change. health and safety professionals. OccurrencesOur Safety, Regulations Health and (“RIDDOR”).Incident Prevention (“SHIP”) teams, consisting “To receive this award is a great personal Many congratulations to Brian. of employee representatives and managers, are the cornerstone During 2015, the Group has invested additional resources in health achievement as the qualification is highly of the safety management system at site level and meet regularly and safety awareness training through its "Visible Felt Leadership" to support and develop our safety programme and objectives. initiative, which has now been delivered to all managers and The Group’s operating sites have been progressively implementing supervisory staff. integrated management registration systems accredited by The industry leading fleet safety standards were recognised at the BSI, incorporating accreditation to OHSAS (Occupational Health 2015 Chartered Institute of Logistics and Transport Awards for and Safety Accreditation Standard) 18001:2007. At the end of Excellence with Marshalls winning the prestigious "Safety" category. 2015 all UK operational sites within the Group held a BS OHSAS (18001:2007) registration. Marshalls was also the winner in both the "Engineering Initiatives" and the "Behavioural Safety, Safety Culture and Leadership" categories at the Mineral Products Association's 2015 Health and Safety Awards.

Marshalls plc Annual Report and Accounts 2015 27 78 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 79

CELEBRATING RESPONSIBLE AWARD SUCCESS BUSINESS EXCELLENCE

Demonstrating a commitment to We received two accolades at the Yorkshire and David Morrell, Head of Sustainability said: “Receiving the Global Humber Responsible Business Awards for our global Development award was a testament to many years of hard sustainability at St Ives works work by the whole team and we picked up the employee development and sustainability activities and for volunteering award on behalf of all our Halifax employees making a difference in the local community. who put their best foot forward for a local charity close to their hearts. The awards ceremony was hosted by Business in the Community (BITC) “The event offered an opportunity for us to see all the which is celebrating the 30th anniversary of Prince Charles’ presidency. fantastic things Yorkshire businesses are doing in their At the packed event at Bradford’s Cedar Court Hotel, we received the communities which has motivated us to do more in the shortlisted award for Unilever Global Development, supported by future.” Business Fights Poverty for our work with the supply chain programme in India. The programme has made a positive impact on its suppliers Speaking via a video message at the dinner, HRH The Prince of Wales, Pictured above from left to right; Mark Chapman, Paul Gibson, Steve and improved the lives of quarry workers and their families in Rajasthan, President of BITC, said: “The Responsible Business Awards are Gaylor, Richard Payne, Colin Chapman, Ian Payne and Chris Annis. India. always such a personal highlight for me each year, because Marshalls was also recognised for making a difference in the local they provide an important opportunity to celebrate business Congratulations to Paul Gibson, Steve Gaylor, Richard Payne, Colin community, receiving a highly commended award for outstanding Chapman and Ian Payne having received their certification from Chris at its best and to showcase practical examples of how it is contribution to employee volunteering. Halifax employees raised a Annis Business Unit Manager Marshalls Sandy & St Ives and Mark helping to build a more harmonious society and a more fantastic £17,000 for Overgate Hospice in Elland last year through a Chapman Operations Manager Marshalls Sandy Works. sustainable future. sponsored walk to remember their dear colleague Martin Lewis. This was matched pound-for-pound by the company. “These awards are therefore vital as a way of inspiring other From Left to Right - Andrew Minson, Executive Director of BPCF, Bob businesses to follow this lead.” Macdonald, Engineering Manager St Ives, Andrew Grinrod, Works Engineer and Briston Spencer, Operations Manager St Ives Liz Needleman, Area Director England East, BITC, said: “The annual Responsible Business Awards celebrate those companies making a difference in communities, schools and within their Marshalls St Ives works has received a highly own organisations. Many have created their own fantastic commended award for sustainability at the 2015 initiatives which have a positive impact on the employees British Precast Annual awards. who deliver them, and the people or project they are helping.”

The ceremony was held on 24th June at the Leicester Marriott Hotel. Supported by CEMEX, the dinner brought the industry together for an evening of entertainment and the presentation of the prestigious Best Practice Awards. Pictured above from left to right; Mark Chapman, Paul Gibson, Steve Gaylor, Richard Payne, Colin Chapman, Ian Payne and Chris Annis. The award recognised a project which had resulted in compressed air energy reduction across the St Ives site. The project helped improve measurement of air and the site Congratulations to Andrew Grindrod, Richard Wilkinson and Darren replaced several systems and continued to improve leaks. This Humphreys having received their certification from Briston Spencer allowed the site to replace old compressors with smaller new Operations Manager Marshalls St Ives and Chris Annis Business Unit efficient ones and reduce pressure in the system by 50%. Manager Sandy & St Ives.

Award success at Sandy & St Ives

Team leaders and shift managers at Sandy and St Ives works have received their Institute of Leadership & Management (ILM) Level 3 award certificates this month. Picture from Left to right:- Lee Rippon, Briston Spencer and Erwin Hope Above: Kath Myers, MD at Barclays presents the Responsible Business Above: David Morrell accepts the Congratulations to Lee Rippon and Erwin Hope having received their award for ‘Global Development’ to Chris Frankland, Marshalls’ International ‘Employee Volunteering’ award. certification from Briston Spencer Operations Manager Marshalls St Ives. Marketing Manager and David Morrell, Head of Sustainability at Marshalls. 80 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 81

THIRD PARTY RECOGNITION THIRD PARTY RECOGNITION AND AWARDS AND AWARDS

Recognition as a responsible business

Marshalls has been shortlisted in develop skills, or supporting small The shortlisted businesses publically businesses to grow. 145 companies have demonstrate that business has a greater the 2015 Business in the Community been shortlisted in total across the UK, in purpose then simply generating profit and Responsible Business awards, recognised 13 award categories. are a great example to others.” in the Unilever Global Development Chris Harrop, Group Marketing Director All shortlisted companies will be category for our programme of work with said: “We are immensely proud to have celebrated through a series of Responsible Celebrating our ‘One to Watch’ been shortlisted for the Unilever Global Business Gala events taking place across our supply chain in India. Development Award. We have been the UK in June. Best Companies status working hard in India for nearly eight The Responsible Business awards is the years to ensure an ethical supply chain, Best Companies has accredited Marshalls most prestigious and respected awards focussing on health and safety and human championing responsible business in the rights, with a particular focus on children’s as a ‘One to Watch’ company. Here’s UK and abroad. It celebrates inspirational rights. It is also our mission to educate CEO Martyn Coffey and our Employee customers and other stakeholders about companies that are taking action to Engagement Manager, Samantha Munkley address social and environmental issues the need to eradicate child labour from and transform their communities. supply chains.” with our Best Companies plaque. The awards celebrate the variety of ways Stephen Howard, Chief Executive, Business in the Community said: “We congratulate that businesses are making a difference The accreditation standard has been – from investing in the wellbeing of Marshalls for playing its part in creating a fairer society and more sustainable future. running since 2006 to acknowledge employees, to helping young people excellence in the workplace. Accreditation is a focus on workplace engagement as an integral component of an organisation’s success and growth.

Left: Martyn Coffey, CEO and Employee Engagement Manager, Samantha Munkley

Fair Tax

Marshalls has been announced as the latest company to be awarded the Fair Tax Mark.

This accreditation is awarded to businesses, big or small, who display a transparency in their tax affairs, and who are proud to state the fact they are good tax payers. We are the latest FTSE250 business to be awarded the mark, along with being the first company in our sector. Meesha Nehru, Programme Director of the Fair Tax Mark says: Jack Clarke, Group Finance Director of Marshalls Group, said: “We “We are delighted to have worked with Marshalls on the viewed the Fair Tax scheme as a natural step for Marshalls, as the award of their Fair Tax Mark. To achieve accreditation Marshalls Group’s tax philosophy has long been closely aligned with the demonstrated that it pays the right amount of tax at the right Fair Tax Mark’s objectives. We aim to achieve transparency and time in the right place, does not use tax havens and is willing we hope the Group’s formalisation of a tax policy will reassure all to go above and beyond to make itself more transparent and our stakeholders that we are a responsible company.” accountable to the UK public. He added: “As a socially responsible organisation we are pleased “It's refreshing when a FTSE250 listed company chooses a that Marshalls’ tax policy, together with our tax disclosures, have responsible approach to tax. We congratulate Marshalls and call led to the Group being awarded the Fair Tax Mark.” on others to follow their lead.” 82 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 83

THIRD PARTY RECOGNITION AND AWARDS COP FEEDBACK

Independent third party scrutiny and verification is a key component to Auditing Accreditation In the past, Marshalls has worked with Marshalls only works with reputable and Marshalls’ approach to business, as is award recognition from external generally recognised auditors for its work reliable suppliers in terms of accreditation. bodies. It is of great importance to Marshalls that the awards entered in India. Whilst working in India however, Marshalls found it really needed to work both showcase and challenge the company’s pioneering approach. with auditors with specialist knowledge of trade unions and ILO (International Ongoing Stakeholder Labour Organisation) standards. The auditing process for Marshalls is not just Consultation about hitting the baseline and doing the Marshalls would like to thank all of its minimum, it’s about going the extra mile stakeholders who had input into this third and ensuring the process is as thorough UNGC Communication on Progress, namely CERTIFICATE OF ACHIEVEMENT and rigorous as possible. Marshalls’ supply Marshalls’ employees, customers, suppliers, chain strategy follows the ETI Base Code, partners and NGOs. Marshalls Plc Landscape House which is based on the International Labour This is to certify that: Premier Way Organisation’s Conventions. In embedding Lowfields Business Park Marshalls Mono Ltd the Base Code in the supply chain Achilles ID: 300778 Elland

have successfully achieved the BuildingConfidence accreditation has achieved Carbon Trust Standard certification for: Marshalls has implemented processes to standard, having completed an online pre-qualification 2016 COP Feedback Survey questionnaire and been subject to an onsite audit. All UK and European operations ensure compliance and improvement. As a valued stakeholder Marshalls would

Signed: for and on behalf of Carbon Trust Certification Ltd very much appreciate your feedback and Marshalls employs full time social auditors comments on its 2015 Communication Dale Turner Tom Grand in both India and China. Working on the BuildingConfidence Steering Group Director, UK & I on Progress (COP.) You may be aware that Chairman Achilles Information Ltd Skanska ground alongside quarry & factory owners, Marshalls became a signatory of the UNGC Morgan Jones, Associate Director - Certification Issue Date: 18/02/2015 Expiry Date:† 06/11/2015 managers, workers, unions and non- Certificate Number: 300778/5940 in January 2009. Our commitment to the Awarded 01 January 2015 Valid until 31 December 2016 governmental organisations, the auditor UNGC requires that we submit an annual † This is not a legal document and cannot be used as such. This certificate is only valid when both subscription and Licence No. CERT-12034 Certified since 2011 PQQ are also valid. To check validity of this supplier please visit www.achilles.com/buildingconfidence. ensures all areas of the ETI Base Code are COP to the UN office in New York.This and upheld. all other COPs can be found in at www.marshalls.co.uk/sustainability/ www.carbontrust.com Marshalls works with Just Solutions in publications Carbon Trust Certification Ltd is registered in England and Wales under Company number 06547658 with its Registered Office at 4th Floor, Dorset House, 27-45 Stamford Street, London SE1 9NT order to gain a consistent approach to Building Confidence Accreditation Carbon Trust Certificate of Achievement auditing its supplier network and ensure Our 2009 COP received a ‘notable’ status supply chains remain ethical and best from the UNGC, an acknowledgement practice is shared where possible. Led by made to only a small percentage of expert supply chain auditing specialist signatories. We will make this 2014 COP’s

Stirling Smith, Just Solutions is an SAI available for UNGC UK Network peer listed consultant who works to develop review again this year. We are particularly and extend the SA8000 standard and the keen to gain frank feedback from a range SUSTAINABILITY ETI Base Code. The company relies upon of our stakeholders as we further engage the hard core of convinced companies to in a drive for corporate sustainability CHARTER engage stakeholders and professionals leadership throughout 2016 and beyond. together in an agreed programme.

If you wish to take part in our COP

Audits are carried out at least annually, feedback survey please email:

by a two-person team over two days. A [email protected] qualified Marshalls assessor goes to India

and China five to six times a year to audit

Valid until June 2016 informally. If non-compliance is found, an

action plan is agreed to ensure rectification

takes place and this is followed up by an

external audit.

bsi Certificate of Registration Precast Sustainability Charter Certificate 84 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 85

GRI PERFORMANCE GRI PERFORMANCE INDICATORS INDICATORS

UNGC COP Element GRI Indicator Indicator Description GRI 3.1 Disclosure Addressed EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other Governance, Profile Disclosure 4.1 – Governance structure of the organization, including committees under the Actions Taken to Implement community investments, retained earnings, and payments to capital providers and governments. Commitments highest governance body responsible for specific tasks, such as setting strategy or organisational Principles 1-10 and Engagement oversight EC3 Coverage of the organisations defined benefits plan obligations. Profile Disclosure 4.2 – Indicate whether the Chair of the highest governance body is also an executive officer EN8 Total water withdrawal by source. Profile Disclosure 4.3 – For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Profile Disclosure 4.4 – Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body EN22 Total weight of waste by type and disposal method.

LA1 Total workforce by employment type, employment contract, and region, broken down by gender. Governance, Profile Disclosure 4.14 – List of stakeholder groups engaged by the organization Sharing the COP with the Company’s Commitments Profile Disclosure 4.15 – Basis for identification and selection of stakeholders with whom to engage Stakeholders LA4 Percentage of employees covered by collective bargaining agreements. and Engagement

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the Economic Disclosure on Management Approach – Economic Actions Taken to Implement Principles effective abolition of child labour. Provide a concise disclosure on the following Management Approach items: goals and 1, 4, 6 and 7 performance; policy; additional contextual information. HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour. EC1 – Direct economic value generated and distributed, including revenues, operating costs, No Specific COP Requirement employee compensation, donations and other community investments, retained earnings, and HR10 Percentage and total number of operations that have been subjected to human rights reviews and/or impact assessments. payments to capital providers and governments.

EC3 – Coverage of the organization’s defined benefit plan obligations No Specific COP Requirement

UNGC Commitment Indicators Environmental Disclosure on Management Approach – Environmental Actions Taken to Implement Principles Provide a concise disclosure on the following Management Approach items: goals and 7, 8 and 9 performance; policy; organisational responsibility; training and awareness; monitoring and follow- UNGC COP Element GRI 3.1 Disclosure up; additional contextual information. Addressed EN8 – Total water withdrawal by source Outcomes from Implementing Strategy and Profile Disclosure 1.1 – Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or Statement of Continuing Principle 8 Analysis equivalent senior position) about the relevance of sustainability to the organization and its strategy Support

EN18 – Initiatives to reduce greenhouse gas emissions and reductions achieved Actions Taken and Outcomes from Organisational Profile Disclosure 2.1 – Name of the organization No Specific COP Requirement Implementing Principles 7, 8 and 9 Profile Profile Disclosure 2.2 – Primary brands, products, and/or services EN22 – Total weight of waste by type and disposal method Outcomes from Implementing Profile Disclosure 2.3 – Operational structure of the organization, including main divisions, operating companies, Principle 8 subsidiaries, and joint ventures Profile Disclosure 2.4 – Location of organization’s headquarters Profile Disclosure 2.5 – Number of countries where the organization operates, and names of countries with Labor Practices and Disclosure on Management Approach – Labour Practices and Decent Work Actions Taken to Implement Principles either major operations or that are specifically relevant to the sustainability issues covered in the report Decent Work Provide a concise disclosure on the following Management Approach items: goals and 1, 3 and 6 Profile Disclosure 2.6 – Nature of ownership and legal form performance; policy; organisational responsibility; training and awareness; monitoring and follow- Profile Disclosure 2.7 – Markets served (including geographic breakdown, sectors served, and types of up; additional contextual information. customers/beneficiaries) Profile Disclosure 2.8 – Scale of the reporting organization LA1 – Total workforce by employment type, employment contract, and region No Specific COP Requirement Profile Disclosure 2.9 – Significant changes during the reporting period regarding size, structure, or ownership Profile Disclosure 2.10 – Awards received in the reporting period LA4 – Percentage of employees covered by collective bargaining agreements Outcomes from Implementing Principles 1 and 3 No Specific COP Requirement Profile Disclosure 3.1 – Reporting period (e.g., fiscal/calendar year) for information provided Human Rights Disclosure on Management Approach – Human Rights Actions Taken to Implement Profile Disclosure 3.2 – Date of most recent previous report (if any) Provide a concise disclosure on the following Management Approach items: goals and Principles 1, 2, 3, 4, 5 and 6 Profile Disclosure 3.3 – Reporting cycle (annual, biennial, etc.) performance; policy; organisational responsibility; training and awareness; monitoring and follow- Profile Disclosure 3.4 – Contact point for questions regarding the report or its contents up; additional contextual information. Profile Disclosure 3.5 – Process for defining report content Profile Disclosure 3.6 – Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers) HR6 – Operations identified as having significant risk for incidents of child labour and measures to Actions Taken to Implement Profile Disclosure 3.7 – State any specific limitations on the scope or boundary of the report contribute to eliminate child labour Principles 1, 2 and 5 Profile Disclosure 3.8 – Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between HR7 – Operations identified as having significant risk for incidents of forced or compulsory labour Actions Taken to Implement organizations and measures to contribute to the elimination of forced or compulsory labour Principles 1, 2 and 4 Profile Disclosure 3.10 – Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement HR10 - Percentage and total number of operations that have been subjected to human rights Actions Taken to Implement Principles Profile Disclosure 3.11 – Significant changes from previous reporting periods in the scope, boundary, or reviews and/or impact assessments. 1, 2, 4 and 5. measurement methods applied in the report Marshalls has endeavoured to ensure that all images contained within this publication adhere to its CRBP Universal Marketing & Advertising Policy and Code of Conduct. For more information on Marshalls, visit www.marshalls.co.uk/sustainability

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