Seven Ages of Aggregate Industries Sustainability Report 2010

™ The Responsible Source A member of the group Refining, rethinking and redefining the next stage in our sustainability is an ongoing process at Aggregate Industries

Alain Bourguignon, Chief Executive Officer Sustainabilty Report 2010

Contents 4 – Introduction 5 – Sustainable commitment

• Our corporate targets 2008-2012 • Beyond 2012

7 – A year in our business 9 – Seven Ages of Aggregate Industries

9 – Birth 23 – Starting out • Our resources • Health and safety • Materials used • Graduate recruitment • What we use to make our products • Building relationships in the supply chain • In the beginning there was extraction • Welcoming new staff 25 – Middle Age • Our products in your life • Maturing business • On site • Setting the standard • What we use to make our products • Market breakthrough • Sharing our skills and understanding

13 – Growth and Learning with others

• Our products – what our customers want • Biodiversity know-how

• We are Very Good at Responsible • Having a voice

• Not all plain sailing? Sourcing • Dialogue • Training and development of our people • Do our neighbours know what we do? 27 – Old Age • Promoting biodiversity as a key • An aging workforce environmental challenge • Health check • Our educational product portfolio • Renovate and repair • Keeping the country moving 17 – Youth • Longevity • A leg-up into the world of work • The end of extraction • Where we work and how we get there

• Life cycle assessment – our choice, 29 – Retirement our promise • Far from the end of the line! • Our standards influencing choice • The way nature planned it • Providing substitutes • One man’s waste

33 – Aggregate Industries in figures 35 – Assurance statement

2 This report demonstrates our journey through seven stages of life as we consider the impact our business has on our stakeholders and their interests Sustainabilty Report 2010

Introduction Having been part of the sustainability reporting process for around 10 years, we know that a corporate sustainability report isn’t the sexiest of reads and yet here we are for another year. You have made it to the introduction and we would like you to keep reading. After all, we have so much that we want to share. Many a sleepless night has been spent devising a way of turning 34 pages of information into a story that we hope will both inform and entertain.

This report demonstrates our journey through seven stages of life as we consider the impact our business has on our stakeholders and their interests.

To accompany this short story we have published a Global Report Initiative Index on our website – which is available at www.aggregate.com/sustainability. Here you will find the technical references and data required under the GRI reporting framework. We are delighted to say, once again, that we have gained an application level of A+.

In short, welcome to the 2010 sustainability report from Aggregate Industries. We hope you enjoy the read. If you do – please pass this copy on to others who may enjoy it too. If you don’t – please tell us why and remember to file it carefully... in the bin marked recycling!

4 The Seven Ages of Aggregate Industries

Sustainable Commitment Alain Bourguignon, Chief Executive Officer

Our corporate targets 2008-2012 • All projects in excess of £1m To track our progress, our ISO 14001 Sustainability provides us with an to have biodiversity surveys carried out environmental management system and opportunity to differentiate ourselves during and necessary actions instigated ISO 9001 quality management system these challenging economic times. As a • 20% reduction in construction packaging continue to be maintained across all our materials producer we sit at the beginning waste compared to 2008 business operations. In addition we have of the supply chain for many construction made significant strides across all business projects and it is important that we can As an industry leader, Aggregate Industries operations during 2010 with 88 sites provide new and innovative ways for our has set targets that go beyond those set achieving OHSAS 18001. customers and their clients to operate out above. sustainably. In the UK, the Strategic Forum Our performance • Zero waste to landfill by 2012 Looking at the achievements up to 2010 for Construction set out the sector targets • Reduce CO per tonne of product by to 2012. 2 it is pleasing to see that on the whole 20% by 2012 from 2008 baseline we are making good progress with our • By 2012, a 50% reduction of – target is 8.09 sustainability targets. By the end of 2010 construction, demolition and excavation • Reduce potable water by 25% by 2012 we had hit our target to reduce packaging 3 waste to landfill compared to 2008 from 2008 baseline – target is 703,586m waste and had implemented community • By 2012, a 15% reduction in carbon • Reduce packing waste by 20% from plans at 100% of our sites. Our waste and emissions from construction process 2008 baseline – target is to be below water programmes are on track to deliver and associated transport compared to 12,945 tonnes in the agreed timescales and we continue 2008 levels • Rated Very Good for responsible sourcing to mature our approach to biodiversity • 25% of products used in construction by the end of 2010 – Achieved see page management. We need to ensure that this projects to be from schemes recognised 16 for more information standard continues. for responsible sourcing • Community engagement plans in place • Water usage in the manufacturing and at 80% of sites by the end of 2011 – construction phase reduced by 20% Achieved with 100% at all sites by the compared to 2008 usage end of 2010

Estimated Target

2009 2010 2011 2012 Commitment 2008 0 Waste to landfill (tonnes) 62,818 52,252 43,127 17,400 Reduce potable (mains) water by 25% 938,114 784,800 704,059 703,823 703,586 of product by 20%* 10.11 10.46 10.81 10.27 8.09 Reduce CO2 per tonne 16,181 10,557 10,742 10,742 10,742 Reduce packaging supplied by 20%

2006 2007 2008 2009 2010 Our carbon footprint (kgCO2/t)* 4.19 4.42 4.87 Transport emissions 5.91 6.04 5.93 Process emissions Total emissions 9.10 9.62 10.11 10.46 10.81

*To reflect the addition recent pre-combustion factors for fuels from Defra, figures from 2006 have been back calculated and 5 will not correlate to data shown in previous reports Sustainabilty Report 2010

When I arrived at Aggregate Industries Challenges and opportunities from the early in 2010, I set three clear priorities economic climate for the business: The Comprehensive Spending Review from the coalition government in October 1. Health and safety 2010 outlined extra funding for wind power 2. Delivering on the agreed budget development; more funding to protect 3. Determining our strategy for the mid-term our coastlines, for their rich and important biodiversity and for home owners whose Unfortunately we missed our most lives are threatened through flooding and important target in 2010; reducing our erosion all of which was very welcome. Lost Time Injury Frequency Rate to less than 2. Throughout the year we The past two years have been very Beyond 2012 injured too many people at work and challenging for the construction sector, with By the end of 2012 we will know whether despite it being our best LTIFR to date, current forecasts showing that things will we have hit, missed or exceeded the it was still too high. During the year we not get any easier for a number of years. targets we set to monitor our sustainable re-established our health and safety The Construction Products Association ommitments. But then what? Refining, standards looking at Personal Protective estimates that in the UK every £1 spent rethinking and redefining the next stage Equipment, housekeeping, cardinal rules, on construction delivers nearly £3 back in our sustainability journey is an ongoing incident investigation, communication, site into the economy. Considering that the UK process at Aggregate Industries. We inductions and interactive safety tours. spends less per on construction than are not doing this behind closed doors; Maintaining the good work on these areas many other countries in Europe, significant developing comprehensive construction is instrumental in reaching our goal of zero potential that can be generated by spending solutions requires us to work closely with harm to people. on construction schemes to help strengthen those who are close to our business. We our economy. With this in mind, it is want to hear what all our stakeholders Our CO2 performance in 2010 was also encouraging that the coalition government think and will work with them to create disappointing; we managed to bring has recognised the need to invest in the some tangible targets for the future. This process emissions down through better improvement of the UK’s infrastructure process began in January 2011 through demand side efficiencies but transport through regional rail investment and funding our second materiality workshop event. emissions have continued to rise. This has for road maintenance. However, substantial We will publish our ongoing sustainability resulted in the publication of a Transport longer term investment is required to commitments and post 2012 targets in our Plan and a steering group chaired by a achieve more than a ‘treading water’ effect. 2011 report. company director to address this upward The tough winter of 2010 showed us just trend. We believe that we will see a decline how fragile much of the UK’s road network is. I would like to take this opportunity to in our CO2 impacts in 2011 and beyond thank everyone at Aggregate Industries as we look to start some renewable energy Helping a struggling younger generation into and our stakeholders for their commitment and alternative fuel projects. work is another opportunity for our sector. to our sustainability journey. It is through Work experience and apprenticeships are both individual and group efforts that we incredibly effective in businesses such as can present our 2010 Sustainability Report. ours and they remain an important focus for Aggregate Industries following the launch Alain Bourguignon of our in-house apprenticeship programme Chief Executive Officer for laboratory technicians and road building, the first of its kind in the industry. 6 The Seven Ages of Aggregate Industries

A year in our business

2010 was declared the International Year of Biodiversity by the United Nations – a year in which to celebrate the diversity of life on earth. 1st Over 200 partners, of which Aggregate SUPPLIER TO IMPORT TO Industries was one, came together ESTONIAN to promote the understanding of MARKET biodiversity. Various activities including nature walks, the planting of 16,473 trees, dawn chorus events and school RECORD visits took place throughout the year at POUR AT our sites to promote the importance of THE SHARD, local conservation. LONDON

WORLD WETLAND DAY SEMINAR & VISIT TO LITTLE PAXTON

GOLD th STANDARD ‘EXCELLENT’ – INVESTORS SUNDAY24 TIMES IN PEOPLE RATING FOR PERRY BEST GREEN BARR CONCRETE PLANT COMPANIES

January February March April May June

Bardon Contracting, Following a World Perry Barr ready- London Concrete carried Aggregate Industries Aggregate Industries our surfacing and civil Wetland Day seminar mixed concrete plant out the UK’s biggest is ranked 24th in The Overseas secured a engineering business, in Peterborough, 60 achieves the industries ever concrete pour over Sunday Times Best contract as the first became the first in our attendees were treated first ‘Excellent’ rating 36 hours, delivering Green Companies. This supplier to import sector to be awarded to a visit to our Little under the BES 6001 5,500m3 ready-mixed is the third year we have materials to the Estonian Gold Standard by Paxton . Framework Standard concrete to The Shard, been included on the list. market. The contract Investors In People. for the Responsible London’s tallest building. saw us supply ballast to Sourcing of Construction the rail network. Products.

7 Sustainabilty Report 2010

2 AWARDS AT THE MPA HEALTH QICM AND SAFETY ACCREDITATION AWARDS TO CREDIT SERVICES DEPARTMENT SCOTTISH RECEIVE Employee BIODIVERSITY AWARDS training in health WESTLEIGH QUARRY and safety EXHIBITION SUSTAINABLE cardinal rules AND TOURS MANUFACTURER /SUPPLIER OF THE YEAR BUILDING MAGAZINE AWARDS

July August September October November December

All Aggregate Industries Our credit services Westleigh Quarry, Aggregate Industries At the Building Magazine Duntilland and Powmyre employees were given department becomes Devon, opened its gates won two awards at Sustainability Awards, quarries became the training in our five the first in the industry to to over 650 members the Mineral Products Aggregate Industries first sites in Scotland to cardinals rules of health gain QiCM accreditation; of the public who came Association health and won Sustainable be awarded Biodiversity and safety, clearly an award recognising to see our operations. safety best practice Manufacturer/ Supplier Benchmarks. We now putting heath and safety improvement, hard work Exhibitions and tours awards. Bardon of the Year at the Royal operate four quarries at the top of our list and motivation in their explained more about in the Midlands took the College of Physicians with the prestigious of priorities. service offering. our industrial heritage, RBA Trophy (Refined in London. recognition from the what our products are Bitumen Association) Wildlife Trusts. used for and the wildlife for their work in that is found in the developing a Bitumen quarry. Discharge Permit. 8 The Seven Ages of Aggregate Industries

Birth

We coo when a proud mother shows We are immensely proud of the way we her new baby off to the world and we have grown since the merger between enjoy getting on our hands and knees Bardon Group plc and Camas plc in 1997. to play with the neighbour’s new Through acquisitions and mergers, many puppy. At Aggregate Industries we are companies have joined the Aggregate delighted to say that we get the same Industries family. We really have grown sense of excitement and pride when stronger with the passage of time. we open a new site. Our resources Everything we do at Aggregate Industries Quarrying is the heart and soul of has to start somewhere. Aggregate Industries. Extracting aggregates from the ground is the starting • Submitting planning applications can lead point in the lifecycle of our products and to the opening of a new concrete plant services. Without stone, society as we • Breaking of soil leads to the life of a new know it would be a very different place. quarry There would be no buildings, no filtered • New recruits bring talent and skills to our water and no infrastructure. business Our business really does support life. • Great ideas lead to the development of a more sustainable product or practice.

Our business really does support life

9 Sustainabilty Report 2010

Production

2009 2010 Aggregates - million tonnes 29.37 30.2 Ready-mixed concrete - million m3 2.26 2.18 Asphalt - million tonnes 5.31 5.45 Precast - million tonnes 2.5 2.27 Secondary aggregates (processing) - million tonnes 1.38 1.13

Sales of recycled material - tonnes 2009 2010 641,800 644,781

Materials used in value added products

2008 2009 2010 Bitumen - tonnes 306,351 257,604 267,720 Aggregates - million tonnes 12.80 13.96 11.68 - tonnes 1,050,000 766,491 755,761 PFA* - tonnes 138,005 118,767 129,627 GGBS** - tonnes 111,988 68,156 69,252 Packaging - tonnes 16,181 10,557 10,742

* Pulverised Fuel Ash ** Ground Granulated Blast Furnace Slag

10 The Seven Ages of Aggregate Industries

Birth… continued

In the beginning there was extraction Welcoming new staff When we anticipate opening a new In an ever-changing market we have to operation, or extending an existing one, regularly review our skills base. The positive the communication process with stake- effects of this are reflected in us welcoming holders, particularly local communities, 551 new members of staff in 2010, all set- becomes the main focus of the long ting out on their careers with us in a range Vantstone planning application process. of roles including commercial, operational

and support functions. Monique At Bardon Hill Quarry in Leicestershire we are seeking to extend the life of the existing Our products in your life It’s twins, twice! site. Before submitting the planning appli- 2010 saw the birth of an innovative prod- Tony Pearson, Quarry Manager at Chard cation we entered a two year engagement uct from our Charcon Specialist Products Junction in Dorset, became a proud father process with stakeholders including coun- business. Rail-Pod® is a precast modular when a pair of Ringed Plovers nested and cillors, MPs, community neighbours and rail platform solution designed to speed raised four chicks at the site in May. These environmental groups. By discussing our up the construction process. Launched feathered friends have amber status as proposal we worked together to improve in response to increased demand for new birds of conservation concern and the scheme, accommodating expressed and extended rail platforms, Rail-Pod® is pits offer them the habitat they need to views and feedback where possible. manufactured off-site and transferred for survive. Congratulations Tony! installation by rail or road. The whole planning process for a site of this scale is costly and can take anything Having integral features such as drainage up to 15 years. Preparing the site before and furniture fixings, the installation time is extraction commences can take an ad- dramatically reduced resulting in minimised ditional five years. We really have to be disruption to rail services. A 50m platform thinking about the life of our sites and using section can be installed in one day using the mineral deposit to its full potential. Rail Pod® as opposed to three weeks using the traditional method. Now that has got to be good!

What we use to make our products

Energy Usage Gas Usage (MWh) Electricity Usage (MWh) Oil - All grades (MWh)

2007 260,042 199,537 790,133 2008 245,682 195,486 859,836 2009 224,421 169,033 708,540 2010 237,533 165,465 686,470

11 Sustainabilty Report 2010

Water consumption by type m3 Total

2007 8,094,000

2008 5,332,204 938,114 6,270,318

2009 4,545,705 784,788 5,330,493

2010 4,388,953 704,058 5,093,011

2012* 3,999,153 703,586 4,702,739

*(Target)

Abstracted water Mains water

Water discharge by type m3*

2008 103,905,346 216,992

2009 103,940,386 226,847

2010 107,099,460 258,610

Surface Sewer

* Calculated discharge capacity according to all discharge consents - it is likely that the actual discharge is significantly less, although this is not monitored across most sites

12 The Seven Ages of Aggregate Industries

Growth and learning

As the saying goes “you are We are Very Good at never too old to learn.” Responsible Sourcing The framework standard for the As youngsters we learn the basics. We CEEQUAL is the assessment and awards Responsible Sourcing of Construction start with the alphabet, then form words scheme for improving sustainability in civil Products, BES 6001, has been around followed by full sentences. As a business engineering and public realm projects. since 2008. Whilst we were very proud we learn too; through our experiences and It aims to deliver improved project to have been ahead of our industry peers from understanding how our products and specification, design and construction and by being the first materials supplier to services affect our supply chain and the to demonstrate the commitment of the have had all our products certificated built environment. Our letters and words civil engineering industry to environmental under the scheme, we understand also come together to form meaning. quality and social performance. that this is only the beginning. Responsible Sourcing is one step in a very By taking the time to work in partnership long journey towards a more sustainable with our stakeholders, we can better future; but as a step it is hugely important understand their needs and the long term BREEAM is the Building Research and influential on our supply chain. We implications of our activities. Sustainability Establishment Environmental Assessment continue to improve our commitment and is not a finite measure; it is continuously Method for non-domestic buildings. scoring under the framework which once evolving and we have to do the same. It has developed over the past few again led the way to the first Excellent years and now has specific schemes rating for our ready-mixed concrete plant Our products – what our for over 15 building types including at Perry Barr, Birmingham, in March customers want schools, hospitals, offices and prisons. 2010. This was followed up with the Standards and best practice schemes achievement of an Excellent rating across are helping the construction industry The Code for Sustainable Homes our entire ready-mixed concrete business improve its sustainability credentials. At is the national standard in England, Wales in December. Following assessments Aggregate Industries we aim to create the and Northern Ireland for the sustainable at further sites in 2010, Aggregate product and service solutions to enable our design and construction of new Industries is rated Very Good under customer’s projects to succeed. In doing homes. The Code aims to reduce carbon the scheme for our other products. this we don’t lose sight of our responsibility emissions and create homes that are for the effects of our processes and more sustainable. It assigns newly products on the environment. built homes a rating from 1 star to 6 stars to communicate the overall As part of this we have employees trained performance of the dwelling. to assess construction schemes under the CEEQUAL, BREEAM and Code for Sustainable Homes sustainability assessment frameworks.

13 Sustainabilty Report 2010

Training and development of our Do our neighbours know what we do? Within our communities we gave financial people We invest heavily on landscaping our support to projects to the value of By providing training and development sites to minimise their impact on our £294,694 during 2010 and donated opportunities for our staff, we are investing neighbours. Many of our operations are materials that we have produced to in the future of Aggregate Industries. not visible from the road. So what happens the value of £150,389. In line with In recognition of this we developed a behind the screens? It is no secret that the our community plan our efforts are postgraduate programme of management quarrying industry has traditionally received becoming more targeted towards in-kind and leadership for employees in bad press; would you want to live next donations; volunteering our man power partnership with Loughborough University. door to a quarry? If it was well run, we and expertise. Over the year we recorded The course covers seven units of study would. And we hope that you would too. 1,032 hours given to the communities in aimed at developing further knowledge which we work. and understanding of managing a In 2010, 3,513 visitors came to learn more modern business or department. The about our operations. Site tours, open first group of employees successfully days, exhibition stands at village fetes and completed the course in 2010 with individual community liaison groups are 6 of these continuing their studies at just some of the ways that we share with Loughborough to MBA level. A second our communities more about what we do. intake of 18 employees commenced More importantly, when our visitors on the programme in March 2010. leave, they take with them a greater appreciation of our work and In total we devoted 41,207 hours the professionalism of on staff learning and development in our colleagues. 2010 with courses covering health and safety, commercial training, operational performance, interpersonal and soft skills.

14 The Seven Ages of Aggregate Industries

Growth and learning continued

Donations

Cash value £78,303 Estimated cost of material, skills and labour 2008 £26,043

£175,498 2009 £37,000

£294,694 2010 £150,389

Figures are estimated based on what is recorded by sites, cash values are likely to be higher.

Open days - visitor numbers

2008 2009 2010 Events 3 5 4 Recorded visitors 950 2346 3513

Sites Bardon Hill Croft Croft Blackhill Hulands Greystone Croft Powmyre Moorcroft Moorcroft Ripon Westleigh

15 Sustainabilty Report 2010

Community complaint statistics Promoting biodiversity as a key environmental challenge 2007 2008 2009 2010 In partnering the International Year of Biodiversity, we held events to raise Water 3 5 3 5 awareness of the importance of biodiversity Visual 2 11 5 8 and to promote it as a key environmental Transport 9 8 14 18 challenge. Across the UK, residents Odour 1 4 2 4 from our local communities came along Blasting 29 41 35 34 to three Dawn Chorus events, pond Dust 27 17 24 21 dipping on Father’s Day and several Noise 20 25 26 31 nature days during the year. At each we demonstrated the positive effects Total 91 111 109 121 that quarrying can have on wildlife. We We have already said what our lives also offered our facilities to organisations would be without if we didn’t extract looking to train others, including a stone, but what about the history of That is not to say we always get it right. Biodiversity Benchmark workshop held the rock we extract? Is that important? by the Royal Society of Wildlife Trusts Well we think so. In May 2010, Bardon There has been an increase of 12 and a pond creation workshop at Croft. Aggregates, in partnership with the complaints during 2010, spread across Aggregate Levy Sustainability Funds of several of the categories. Information Our educational product portfolio Cumbria County Council and Natural regarding how we respond to specific In addition to the training and learning England, opened Millom Rock Park. complaints and the way in which we work experiences that we provide, of course with the community is included in the we also help to build the schools, colleges, The park, located at our Ghyll Scaur community section of our website. We universities and research institutions to Quarry in Cumbria, takes visitors through know that we are not perfect and when we allow learning to take place. Highlights the history of the region’s geodiversity get it wrong feedback is taken on board to from a number of diverse projects in first hand. From the volcanoes that help us understand how we can improve. 2010 include materials for Colworth formed the land to the quarrying process At some of our bigger sites, liaison groups Science Park in Bedfordshire, Sheffield and use of materials in today’s society. have been established to regularly review City College and Derby Eco Centre. it is a great educational resource and and help improve our operations. is used by community groups and schools from all over the country. But don’t just take our word for it, if you are in the area call in and see for yourself. More information can be found online at www.millomrockpark.org.uk

16 The Seven Ages of Aggregate Industries

Youth

William Shakespeare referred to this A leg up into the world of work phase in life as ‘lover’, which, although We face the challenge, as an industry, to sounding like an exciting prospect, attract younger recruits and more women dealt more with remorse and the into our sector. Through careers evenings loss of love and feelings which were and development days our Futurepath expressed through the creation of programme seeks to inform students of something cultural. the career choices we are able to offer. Through a bursary programme established Whilst we may not write songs or create in 2008, Aggregate Industries provides works of art, we certainly provide the financial support and work placements materials to help along the way. At during the summer months, to geology Powmyre Quarry in Scotland, we were students from The University of Leicester. We recognise that our employee profile, delighted to assist with the donation Three beneficiaries of the scheme have in terms of diversity, presents us with of boulders for a special project since come to work for Aggregate many challenges. It is apparent that a “Metamorphosis” involving the local schools. Industries as trainee quarry managers. growing number of customers in the Pupils and staff carved the boulders with Educational links are strengthened through public sector pay attention to diversity images of stars, river ripples and butterflies ongoing partnerships with schools and policies of their suppliers. Since 2006, – taken from the school badge. colleges across the UK. This sees us Aggregate Industries has had a diversity steering group which includes an external At Aggregate Industries we see youth as supplying expertise, advice and materials representative to develop our policies and a transitional phase in life, getting ready for for career days and building projects such practices in this field. life outside the family home and looking at as those provided through the Young options for the world of work. Youth is a time Enterprise scheme. for choices and setting out with a purpose.

Age profile

% Under 30 18 16 16 % 30-50 55 56 56 % over 50 27 27 28

17 Grade profile and Gender (FTE) 2009 2010

Female 2009 Female 2010

Top Management 0 Top Management 0 Senior Management 4 Senior Management 3 Middle Management 71.8 Middle Management 77.2 Other Employees 707.5 Other Employees 665.9 Total 783.2 Total 746.1

Male 2009 Male 2010

Top Management 20 Top Management 20 Senior Management 99 Senior Management 90.6 Middle Management 593.2 Middle Management 584.4 Other Employees 3854.3 Other Employees 3669.8 Total 4566.5 Total 4364.8

2009 -Totals 2010 -Totals Top Management 20 Top Management 20 Senior Management 103 Senior Management 93.6 Middle Management 665 Middle Management 661.6 Other Employees 4561.8 Other Employees 4335.7 Total 5349.8 Total 5110.9 Sustainabilty Report 2010

Ethnicity Number of employees - headcount

2000 3,738

2001 3,705

2002 4,514

2003 5,023

2004 5,356

2005 5,117 % 2008 2009 2010

Ethnic minority 1.5 1.6 1.5 2006 5,149 White 83.5 85.6 86.0 Not disclosed 15.0 12.7 12.4

2007 6,610 % of Total FTE Count

2008 5,766 2009 2010 15% 15% 2009 5,350

85% 85%

2010 5,266

Male Female The Seven Ages of Aggregate Industries

Leavers - FTE Leavers - age spread FTE

2008 1,186 24% 50% 26% 842.5 719 2009 24% 45% 31%

2010 26% 31% 29% 2008 2009 Under 30 2010 30 to 50 over 50 20 Job spread 2009 2010 Aggregate Products Division Aggregate Products Head Office 32.6 30.5 Aggregate Trading Operations 189.1 189.9 Bardon Aggregates Northern 685.6 632.6 Bardon Aggregates Southern 534.5 496.0 Bardon Asphalt 473.9 444.6 Bardon Concrete 418.2 388.7 Bardon Contracting 1,017.5 967.9 Paragon 30.6 29.6 UK Bitumen Ltd 1.0 0.0 Aggregate Products Division 3,383.0 3,179.8 Concrete Products Division Concrete Products 1,038.9 996.9 Bradstone Structural 117.9 136.0 Concrete Products Division 1,156.8 1,133.0 Overseas Division European Division 237.1 238.1 Ronez 209.2 208.4 Overseas Division 446.3 446.5 Shared Services Shared Services 363.7 351.8 Shared Services 363.7 351.8 Aggregate Industries UK & Europe 5,349.8 5,110.9 Youth… continued

Where we work and how we get there Industries in 2006) to preserve part of fleet emissions. These include mileage We operate across a large geographic Somerset’s heritage. On average our management and backhauling of material. spread and in some very contrasting employees who work at a fixed location live The 2010 limit for company cars is set locations. If you were to visit us in around 14 miles from their place of work. at 160g CO2/km. This will need to be Peterborough you would find an asphalt Looking at the sites mentioned above reviewed on an annual basis and a system plant, portakabins, a laboratory, storage 70% live within 10 miles of Peterborough, initiated to replace more polluting vehicles silos and a stock yard employing 10 with the average travelling distance at already in circulation. More information people. At Chryston, near to Glasgow, just over 9 miles. 61% live within 10 miles about our work in this area can be found 36 people work at one of our precast of Chryston, with the average employee in our transport plan available at concrete factories on the site of the former travelling just over 5 miles to get to work www.aggregate.com/sustainability. Auchengeich Colliery. In 1959 this became and 69% live within 10 miles of Marston the site of Scotland’s worst ever mining House travelling 13 miles on average. disaster in which 47 men lost their lives. The anniversary of the disaster is marked Due to the often remote locations of our each year by the laying of wreaths. sites, the option for using public transport In Somerset we have a regional office in is limited. Whilst we do not actively Marston Bigot. Here 99 people work at encourage our employees to reduce Marston House, a former stately home travel related emissions in their commute once home to the Earls of Cork and Orrey. to work, we do encourage the use of The house was purchased in an advanced phone and video conferencing rather state of decay by Limited than making journeys for meetings and (which became part of Aggregate we have in place initiatives to reduce our

On average our employees live around 14 miles from their place of work

21 Sustainabilty Report 2010

Our standards influencing choice Providing substitutes Completed in early 2010, Aggregate Recycled and substitute materials can Industries supplied asphalt and precast offer a more sustainable option on products to a £3m park and ride scheme some construction schemes. During for Taunton. Park and ride schemes are 2010, Bardon Composite Pavements not new, but are becoming more common sourced and trialled Incinerator Bottom place as local authorities recognise the Ash Aggregate (IBAA) as an alternative sustainable benefits that they offer. aggregate to resolve a technical issue during pavement construction at the port This park and ride was assessed under of Felixstowe. CEEQUAL and received an Excellent rating following the extra measures that The ash was used as a percentage Aggregate Industries put in place during replacement for traditional sea dredged the build. These included: and . Its use provided Life cycle assessment – our choice, improved mechanical stability, enabled our promise • Reusing 48,000m3 of inert material on speedier rolling and finishing and helped to To better understand the environmental site, rather than sending to landfill give a superior surface finish. The finished impacts that our products have, both • Protection of badger setts pavement is also fully recyclable at the end from an embodied and a whole life • Installation of bat boxes in nearby trees of its serviceable life. cycle aspect, we are developing our • Reuse of site water for dust suppression life cycle assessment capability. This • Consideration of neighbours with work forms part of a wider sustainability reduced operating times of noisy assessment methodology looking at social, equipment environmental and economic aspects of • Provision of materials to resurface the the production, use and ultimate end of life entrance to a local retirement home. of our products.

Due to be completed in 2013, this assessment will allow us to focus on the development of products with particular sustainability attributes for our customers who share our increasing aspirations of sustainability.

22 The Seven Ages of Aggregate Industries

Starting out

Having passed through Lost Time Injury Frequency Rate school and partied our way through university it’s 2004 2005 2006 2007 2008 2009 2010 time to get that first job and 13.5 10.38 8.80 6.71 4.39 2.54 2.12 try to fly the nest - if we can get onto the elusive housing market! Yet another chapter in life has begun.

Health and safety Entering the world of work in 2010 is a very Lost time injuries and fatalities 2008 2009 2010 different experience than that of only five years ago. For those joining our business Fatalities (employees, sub contractors 0 2 0 today and for those who have been with and third party workers) us for many years, there is no doubt that Lost Time Injuries (employees and 59 30 25 health and safety is placed quite firmly subcontractors) as Aggregate Industries’ number one Lost Time Injuries (third party workers) 22 7 5 workplace priority.

Our employees, subcontractors and third party workers work with heavy equipment We want to keep everyone safe. with over 21,000 students known to be and vehicles daily. We are exposed to a Health and safety is our number one looking for work. The last time graduate variety of risks which can endanger health priority and we are pleased to report in unemployment hit this level was back in or life. We understand that our health and 2010 we achieved our best Lost Time 1993, however, we have some very safety culture needs a stronger commitment Injury Frequency Rate (LTIFR) on record. positive news to report. Four graduates from everyone to work safely, an absolute The chart above shows the progress since joined our business in 2010 and we will ban on shortcuts and unnecessary risk 2004 in our LTIFR. However, we recorded be looking to recruit new talent for our taking, a strict willingness to correct unsafe a total of 25 Lost Time Injuries, although graduate programme in 2011. acts and conditions immediately and a that is better than the 30 recorded in 2009, This year’s recruits have successfully firm belief that all injuries and occupational sadly it resulted in us missing our LTIFR graduated in the disciplines of geology, illnesses can be prevented. To help deliver target of 2.00 by 2010. mechanical engineering and environmental this we revised and trained all employees in assessment and management. They our Cardinal Rules during 2010. In addition Graduate recruitment are now working across our business to this, all our managers have received Reports in the media do not make in commercial and operational roles. incident and investigation training, designed encouraging reading for newly qualified In addition, 10 undergraduates have to ensure we can fully understand why graduates. The latest trends have revealed completed placements with us, mainly over incidents occur and seek to ensure they do that unemployment amongst graduates the summer period, before returning not happen again. has risen to its highest level for 17 years, to complete their final year at university.

23 Sustainabilty Report 2010

Building relationships in the included together with quarried aggregate supply chain from a number of major quarries in both In summer 2012, London will come alive the aggregates and ready-mix tender as athletes and sports fans from across submissions. One element was the the world descend on the capital for the requirement for a minimum of 50% of Olympic and Paralympic Games. the construction materials, by weight, to be supplied into the Olympic Park by rail Aggregate Industries successfully secured or water transport. We ensured this was the tenders for ready-mixed concrete exceeded with over 90% of the aggregates and aggregates supply to the Games. supplied by either rail or barge. Rail Amongst other products and services we transport has been the main method of also provided precast concrete terracing supply with up to 24 trains a week, each for the velodrome and filter material for the carrying 1,350 tonnes. Aquatics Centre. Since the aggregates contract was London Concrete, a subsidiary of awarded to Aggregate Industries over The Olympic Delivery Authority, responsible Aggregate Industries, built a twin 4.5m3 800,000 tonnes of material has been for the construction of the venues and twin-shaft mixer batching plant adjacent supplied to venue contractors, the majority infrastructure for the London 2012 to our railhead at Bow. The facility has by rail from Torr Works Quarry in Somerset. Olympic and Paralympic Games, identified supplied well in excess of 300,000m3 sustainable construction as one of the with daily production peaking at 2,000m3 key criteria for the procurement and per day. Utilising a base fleet of twelve construction of the Games venues. 8m3 trucks, we supplied all the venue contractors. The use of secondary aggregates from our assets in the South West, recycled glass and recycled concrete derived from demolition sites in London were

...24 trains a week, each carrying 1,350 tonnes 800,000 tonnes has been supplied to venue contractors... 24 The Seven Ages of Aggregate Industries

Middle age – time to look again

By thinking about issues that will not arise The project consisted of 100kt of rail for another two or three years, or even ballast to repair the rail network and build further ahead, we are able to set out a new tracks. The biggest challenge that strategic roadmap not only for Aggregate we faced was producing rail-ballast to the Industries, but also our sector as a whole. Eastern European standard, which differs from the European norm. Capability at Setting the standard our Norway based Halsvik Quarry saw a In August, Aggregate Industries became change in the production set up to achieve the first company in our sector to gain this technical compliance. the Quality in Credit Management (QiCM) accreditation; an award recognising Sharing our skills and understanding Fifty is the new forty and forty is improvement, hard work and motivation of with others the new thirty. Or so they say. We our credit services department. Employing 5,110.9 FTE’s (and eight are in the prime of our lives as Credit management is one of the key sheep*), we have a great wealth of things often take on a new meaning points of contact with our customers and knowledge and skills within our business or understanding. At Aggregate can be the voice and ears of our business. and are keen to share this with other Industries we like to see this period The QiCM programme was developed to organisations and groups. One example as one where we can look back on raise the profile and recognition of credit of this in practice is the package of our learning to date and use that teams and has helped to promote a better in-kind benefit provided to the London knowledge to help to influence the understanding between commercial teams Wildlife Trust. future. and the order to cash function. In the longer term we envisage QiCM being a To date this has included: Maturing business prerequisite of many larger organisations in • HR consultancy Our strong links with industry bodies give their choice of supplier. • Practical health and safety guidance us an early indication of changes in policy • Design advice for a planned new building and emerging guidance and legislation. As Market breakthrough • Advice with planning applications and a Gold Leaf Founding Member of the UK Aggregate Industries secured the first land management Green Building Council (UKGBC) we have Estonian state contract for aggregates • 18 volunteers helped with The London been involved with many initiatives and to be won by a coastal stone producer Wildlife Trust work on the Greenway programmes. This relationship and those outside of Estonia or Finland in June. adjacent to the Olympic Park site. with other industry trade associations Historically, the fiercely state protected provide a robust platform for effective Estonian market has been supplied by lobbying of UK government and the wider local limestone and sand and gravel * at Bardon Hill to help keep the bramble down in EU and global agendas. producers or by Finnish importers. preserving the SSSI acid heath land

25 Sustainabilty Report 2010

This approach has also been used with Biodiversity know-how other organisations throughout the UK We aim to lead biodiversity enhancement providing them with valuable skills and in our sector, but we can only achieve this expertise they would probably not be able by working with a number of national and to access from within their business. This local partners to help and advise us. In type of community support compliments February, a World Wetland Day conference the more traditional methods of donating in Peterborough concluded with a field cash and materials. trip to our Little Paxton Quarry. This visit demonstrated how our relationship with A road by any other name is still a road the Friends of Paxton Pits has benefitted By looking again at what we have always local biodiversity. In addition a number of done, we have set out to revolutionise the invited specialists came to our Warmwell nation’s road network. In July we launched Quarry in Dorset for a Nature After Minerals an innovative, low energy and carbon workshop, a project led by the RSPB Not all plain sailing? saving asphalt production process that and Natural England to enhance quarry Nobody said that life would be easy. There also enhances durability. restoration for biodiversity benefit. At Croft may come a time when a bit of extra help Quarry in Leicestershire we hosted a Million wouldn’t go amiss. Through a third party Ponds project training day to design ponds provider we offer an employee assistance for wildlife. programme, designed to offer professional help in difficult times. Whether suffering Having a voice bereavement, debt worries, illness, In 2010, Defra gave the UK public an depression, addictions or accidents, the 24 opportunity to give their opinion on hour service is available for all employees Life™ is 100% recyclable and offers the future of the natural environment. and their families. the construction industry a number of Aggregate Industries joined almost environmental and performance benefits 13,000 others in submitting a response to Dialogue including dramatically reducing energy advise the government on protecting the Annual appraisals, with mid-year support, consumption during manufacture. Up to environment and enhancing biodiversity. is a key feature for employees at Aggregate an impressive 45% reduction per tonne The White Paper is scheduled to be Industries. Implemented in 2009, an online in carbon emissions at the manufacturing published by spring 2011. system captures the appraisal process and stage can be achieved. Underpinning is instrumental in our succession planning. its sustainability credentials, Life™ is With regular appraisals we can ensure that manufactured in the UK in accordance we get the best out of our employees, by with ISO 9001 and Highway Sector giving them the best support. Scheme 14.

26 The Seven Ages of Aggregate Industries

Old age

Fashions date. Tastes change. Over the past 50 years the European People age. It is the way things go. population has crashed on two occasions Our succession planning through as a result of drought in the bird’s African investment in new talent, equipment, wintering grounds. This makes it extremely product innovation and management important to ensure we protect and create of landholdings all mean that habitat for them whilst they are in the UK. Aggregate Industries will live on for many years to come. Keeping the country moving The Asphalt Industry Alliance (AIA) reported An aging workforce an £802 million shortfall in the structural Working for us for a long period of time is budget for road building across England something we celebrate. Milestones are and Wales in their 2010 annual report, so it Renovate and repair marked on achieving both 25 and 40 years is no wonder that pot holes are appearing As we get older, bits don’t always work service and 2010 saw 66 people reaching in our streets. At time of print the AIA put as well as they used to. The Scottish a period of long service. Those reaching this at over 2 million across Great Britain. Wildlife Trust knows this only too well at 40 years plant a tree at one of our sites of the Montrose Basin Nature Reserve. Their their choice, as a lasting marker of their In September, we launched the ‘Fill that well used sand martin bank was in need dedication and hard work. Hole’ campaign with Cycling Touring of repair after yet another busy breeding Club (CTC), the UK’s national cycling Health check season. Aggregate Industries employees organisation, to get people reporting We all need a health check every now were only too happy to volunteer a day of potholes. Part of the campaign is an and again – no matter what our age. Our their time to help out with the renovations. iPhone application which combines Bradstone Structural business has helped We also provided concreting sand to make a photograph of a pothole with GPS to make the provision of first class health the repairs possible. The Wildlife Trusts are technology to pinpoint the exact location services a reality in Cornwall. Post war now trialling an updated design of a sand of the hazard – all in less than two minutes. prefab outbuildings on Infirmary Hill, Truro, martin wall at our Duntilland Quarry as part Once a report is logged, by the app or via were replaced when a new health park of the site biodiversity plan. the website, the relevant local authority is was opened in September, using our informed, so they can quickly inspect and building products. Sand martins are mainly seen between fix it. Report potholes near you now www. March and October in the UK. They are ctc.org.uk agile fliers and feed mainly over water.

27 Sustainabilty Report 2010

Longevity The end of extraction Of course repair and restoration is only part Extraction is only part of a quarry’s life. of how Aggregate Industries can contribute Closing a quarry site can signal rebirth as towards the built environment in old age. the land takes on a new lease of life. Some Our work must be able to stand the test of of our former quarries have become leisure time in the first place and our objective is to spots, such as the Cotswold Water Park create hard wearing and robust infrastruc- or managed nature reserves, such as ture that lasts in line with, and beyond our at Forfar in Scotland. Our knowledge at customer’s expectations. After all no one transforming these former sites allows us wants a road or a patio that will wear out to contribute on a global scale. We have also assisted our parent company after a few years. Holcim in the development of their global At the Convention on Biological Diversity in biodiversity plan and guidelines. From Our Superflex surface course materials for Japan in November, 193 countries signed what we have already developed in the roads are now guaranteed under a 10-year to agree new worldwide biodiversity targets UK, we were in a strong place to advise warranty, offering a measured level of skid for 2020. This includes the conservation on prioritisation of sites along with the resistance during that period. Terms of community working closer with businesses. IUCN expert panel. When the papers are warranty must be agreed prior to works Aggregate Industries submitted supporting released in 2011, we should already have being carried out; however customers documentation in the form of the corporate achieved the operational objective to have are given assurance that the product will ecosystem valuation undertaken at our biodiversity action plans in place at sites perform well offering high fatigue resistance Ripon City Quarry. This work showcases which are high risk to impact on biological under all weather conditions during those new methods of reporting on biodiversity diversity. 10 years. and formed part of The Economics of Ecosystems and Biodiversity (TEEB) for business report.

28 The Seven Ages of Aggregate Industries

Retirement

Not necessarily pipe and slippers. life, but are more than happy to concentrate At Bardon Hill in Leicestershire, the older We are living through difficult economic on their interests and hobbies. parts of the active quarry have been times. Public sector cuts, rising costs and Stereotypically, retirement can conjure restored to heathland and broadleaf taxation is affecting everyone. Recruitment images of sitting by the fireside drinking woodland covering some 12 hectares in is not at the levels previously enjoyed and tea whilst listening to the wireless with a total. In Staffordshire, exhausted parts of it is always sad to see colleagues leave our blanket over your knees. We don’t really do Newbold Quarry have found a new life for business before they reach retirement. In stereotypical here, in fact when Bill Bolsover use in agriculture and as wetland habitat. fact through restructuring and realigning retired from the position of Group Chief The long term restoration plan contributes our offering to the declining demand in Executive in March, one of the first things more than 100% of the reedbed creation the market, 2010 saw us say goodbye to he did was climb Mount Kilimanjaro for the target for the local biodiversity action plan. 786 colleagues. To help with this dramatic charity Help for Heroes. change in circumstance we do offer At Pode Hole in Cambridgeshire we outplacement, career and CV advice to We do however make fireplaces. Our quarry operated a borrow pit, a small site set those affected by redundancy. at Waddington Fell in Lancashire gets aside from the reserve of the main quarry involved in many bespoke and dressed which is opened close to a specific project Far from the end of the line! stone products including house signs and reducing transport and processing costs. Retirement can be a daunting prospect memorials (for the post retirement event!). This has now been restored to fishing, for some. We understand that having Whatever your need for stone, Aggregate conservation and irrigation lakes to ease worked for the best part of 50 years or Industries can help. local flooding. more (sometimes for the same company) means that retirement can be a big wrench The way nature planned it Our next project is at Mill Farm Quarry to routine. All employees retiring are offered Nature soon takes over when any piece in Scotland which begins its restoration support and a winding down period, of land is no longer an everyday part of to lakes, wet woodland and habitat for others of course are always glad to be able human activity. Our quarries up and down rich grassland. to reflect on a busy and enjoyable working the UK eventually come to the end of their extractive life and we play our part in ensuring that they contribute to the rich biodiversity of their landscape.

retirement can be a daunting prospect 29 Sustainabilty Report 2010

One man’s waste Waste generated (tonnes) In the UK we generate what is said to be over 434 million tonnes of waste each Landfill year, some 500kg for each man, woman and child. At Aggregate Industries we 2008 62,818 Inert don’t like waste, for one thing it costs 2009 52,252 Non hazardous us money. For another we understand that resources are finite. In our targets of 2010 43,127 Hazardous zero waste to landfill and in cutting our packaging waste by 20% to be below Recovered 12,945 tonnes, we are doing our bit to 2008 7,520 reduce this colossal amount of waste. 2009 2,110 When waste is collected from our sites 2010 4,801 there are currently limited opportunities to obtain a weight for the waste removed. Recycled As a result, figures for waste generated at the majority of our operations are 2008 89,647 estimated based on the number of 2009 86,640 collections. We realise that the accurate reporting of waste figures is a concern 2010 99,242 and during 2010 we developed a waste minimisation plan and steering group to help address this issue. Implementation Total waste (tonnes) of the waste plan in 2011 should help to improve the accuracy of these figures. 2008 2009 2010

147,170 159,985 141,001

To landfill

2008 2009 2010

39.3% 37.1% 29.3%

30 The Seven Ages of Aggregate Industries

Retirement… continued

Code for Sustainable Homes Rail Ballast Recycling at Acton in Woking Each year, Network Rail replaces September saw the completion of 12 approximately 1.2 million tonnes of railway sustainable homes at Brookwood Farm ballast from their tracks across the country. in Woking to the standard of Code Level This stone, although not suitable for reuse 5. These buildings were constructed using as ballast, can be processed and used in Insulating Concrete Formwork (ICF). a number of products from and The process uses a hollow insulation block , to fill material and pipe bedding. filled with concrete to create an airtight, At Acton in West London, ballast is railed highly insulated structure. This method is directly into the site from track re-laying Products don’t retire ideal for a building with low heat loss and sites around the country and unloaded on Unlike our staff, products do not enjoy the a subsequently small carbon footprint. In the railway sidings. The material is then benefits of retirement. order to increase the sustainability of the sorted before being bagged up for sale to product, London Concrete produced the builders’ merchants or transported directly Where possible, inert material including poured concrete using 100% secondary to concrete and asphalt plants around crushed concrete, construction or aggregates for the coarse element and a London for use in their products. In 2010, demolition waste and asphalt planings 30% cement replacement. The secondary 60,000 tonnes of material was recycled at are recycled and used as an alternative aggregate is a by-product from china clay Acton for resale. to primary aggregates. In February, extraction in Cornwall which removes the Bardon Contracting completed one of need for primary extraction of material the UK’s first 100% recycled footpaths while the cement replacement is Pulverised on the A600 in Bedford. The existing Fuel Ash (PFA) a waste product of coal footway was excavated and the material fired power stations. was reused following re-processing in a mobile recycling plant based permanently at the site. This significantly reduced the volume of waste produced, as well as reducing the use of virgin aggregates. This gave a significant cost saving as well as environmental benefits for the client, Bedfordshire Highways.

31 Sustainabilty Report 2010

Well if you have read this far we have been able to keep you interested, which is really what we set out to achieve. For the team writing this story it has been an interesting way of gathering our case studies and information together and we hope that the end product is useful to you. Perhaps we have shown our business in a different light to what you may have expected, hopefully we have confirmed the total commitment we offer to all stakeholders of Aggregate Industries.

The end...

32 The Seven Ages of Aggregate Industries

Aggregate Industries in figures

Environmental indicators

2008 2009 2010 Waste Total waste to landfill (tonnes) 62,818 52,252 43,127 Total waste recovered (tonnes) 7,520 2,110 4,801 Total waste recycled (tonnes) 89,647 86,640 99,242 Total waste produced (tonnes) 159,985 141,002 147,170

Water Discharge - surface m3 103,905,347 103,940,387 107,099,461 Discharge - sewer m3 216,993 226,848 258,611 Abstracted water m3 5,332,204 4,545,705 4,388,953 Mains (potable) water 938,114 784,788 704,059 Consumption - total m3 6,270,318 5,330,493 5,093,012

Energy usage Gas Usage (MWh) 245,682 224,421 237,533 Elect Usage (MWh) 195,486 169,003 165,465 Oil - All Grades (MWh) 859,836 708,540 686,470

Our carbon footprint (kgCO2 /t) Transport emissions 4.19 4.42 4.87 Process emissions 5.91 6.04 5.93 Total emissions 10.11 10.46 10.81

Economic indicators

Materials used Bitumen - tonnes 306,351 257,604 267,720 Aggregates - million tonnes 12.8 13.96 11.68 Cement -tonnes 1,050,000 766,491 755,761 Pulverised (PFA) - tonnes 138,005 118,767 129,627 Ground Granulated Blast furnace Slag (GGBS) - tonnes 111,988 68,156 69,252 Packaging - tonnes 16,181 10,557 10,742

Production figures Aggregates - million tonnes 45.3* 29.37 30.2 Ready-mixed concrete - million m3 3.1* 2.26 2.18 Asphalt - million tonnes 6.55* 5.31 5.45 Precast - million tonnes 3.3* 2.5 2.27 Secondary aggregates (processing) - million tonnes 1.16* 1.38 1.13

*Figures pre 2009 were registerd as quantity sold rather than quantity produced Sustainabilty Report 2010

Social indicators

2008 2009 2010 Community complaints Water 5 3 5 Visual 11 5 8 Transport 8 14 18 Odour 4 2 4 Blasting 41 35 34 Dust 17 24 21 Noise 25 26 31 Open Days 3 5 4 Number of visitors 950 2,346 3,513 Recorded cash donations £ 78,303 175,498 86,868 Estimated value of materials, skills and labour £ 26,043 37,000 150,389

Health and safety Lost Time Injury Frequency Rate 3.90 2.54 2.12 Fatalities (Employees, sub contractors and third party workers) 0 2 0 Lost Time Injuries (Employees and subcontractors) 59 30 25 Lost Time Injuries (Third party workers) 22 7 5

Employees, recruitment and training % of employees receiving a regular review 8.06 21 31 Training hours per FTE & senior management 19 28 14 Training hours per FTE management 9 36 19 Training hours per FTE 6 18 6 Total hours of training per FTE 7 20 8 Headcount 5,766 5,350 5,266 Leavers - total FTE 1,186 842.5 719 under 30 % 24 24 23 30 to 50 % 50 45 48 over 50 % 26 31 29 Ethnic minority % 1.5 1.6 1.5 White % 83.5 85.6 86.0 Not disclosed % 15.0 12.7 12.4 The Seven Ages of Aggregate Industries

Assurance Statement

SGS UNITED KINGDOM LTD’S STATEMENT ON SUSTAINABILITY ACTIVITIES IN THE AGGREGATE INDUSTRIES LTD SUSTAINABILITY REPORT FOR 2010

Nature and Scope of the Assurance Assurance Opinion SGS United Kingdom Ltd was commissioned by Aggregate Industries Ltd On the basis of the methodology described and the verification work performed, to conduct an independent assurance of the Sustainability Report 2010. The we are satisfied that the information and data contained within the 2010 scope of the assurance, based on the SGS Sustainability Report Assurance Sustainability Report verified is reliable and provides a fair and balanced methodology, included the text, and 2010 data in accompanying tables, representation of Aggregate Industries Ltd sustainability activities in 2010. contained in this report and additional information and data included in the following web pages: The assurance team is of the opinion that the Report can be used by the • Management approach: www.aggregate.com/sustainability/sustainability- Reporting Organisation’s Stakeholders. We believe that the organisation has reports/management-approach/ chosen an appropriate level of assurance for this stage in their reporting. • GRI Index: www.aggregate.com/sustainability/sustainability-reports/ gri/ • Materiality: http://www.aggregate.com/sustainability/sustainability-reports/ Global Reporting Initiative Reporting Guidelines (2006) Conclusions, materiality/ Findings And Recommendations In our opinion, the Aggregate Industries Ltd Sustainability Report 2010 meets The information in the Sustainability Report 2010 of Aggregate Industries Ltd the content and quality requirements of the Global Reporting Initiative G3 and its presentation are the responsibility of the directors and the management Version 3.0 Application Level A+. of Aggregate Industries Ltd. SGS United Kingdom Ltd has not been involved in the preparation of any of the material included in the Sustainability Report GRI Principles 2010. Our responsibility is to express an opinion on the text, data, graphs and We are satisfied that the GRI Principles have been adhered to in the statements within the scope of verification set out above with the intention to development of the report and have noted that improvement opportunities inform all Aggregate Industries Ltd’s stakeholders. identified in previous reporting cycles have been implemented. We have summarised below the areas which should be considered for improvement in This report has been assured at a moderate level of scrutiny using our future reporting cycles. protocols for: Accuracy – In general systems have been implemented to improve accuracy • Evaluation of the report against the Global Reporting Initiative Sustainability of reported data and evaluation of data integrity. Some general waste data Reporting Guidelines (2006); and remains estimated, but this tends to be low volume non-production waste so is • Evaluation of content veracity with focus on the following data and information: reasonable. Packaging waste data submitted to Valpak has not been audited for - Greenhouse Gases 2009 or 2010. It is recommended that packaging data and process of collation - Waste for the Valpak submissions is audited in 2011. - Water - Transport of Product - Employment and Skills Standard Disclosures - Local Communities We are satisfied that the standard disclosures required by GRI have been fully reported upon. The assurance comprised a combination of pre-assurance research, interviews with relevant employees located at offices in Leicestershire and operating sites Indicators in Stornaway and Birmingham; documentation and record review and validation We are satisfied that this report includes all core indicators as required for GRI with external bodies and/or stakeholders where relevant. Financial data drawn Application level A+ and also includes information on some of the additional directly from independently audited financial accounts has not been checked indicators. back to source as part of this assurance process.

Statement of Independence and Competence Signed: The SGS Group of companies is the world leader in inspection, testing and For and on behalf of SGS United Kingdom Ltd verification, operating in more than 140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance. SGS United Kingdom Ltd affirm our independence from Aggregate Industries Ltd, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders. Jan Saunders The assurance team was assembled based on their knowledge, experience UK Systems and Services Certification Business Manager and qualifications for this assignment, and comprised auditors registered with March 2011 Institute of Environmental Management and Assessment (IEMA), International Register of Certificated Auditors (IRCA) and EMAS verifier. www.sgs.com Tell us what you think

In this story we have shown what we are doing, what we have achieved and what we are setting out to do – but we know there is always room for improvement.

Is there something you think we can do better, or bet- ter still, something we are not doing at all?

If so please contact us for further discussion:

Dr Miles Watkins Aggregate Industries UK Limited Bardon Hall, Copt Oak Road Markfield, Leicestershire LE67 9PJ t: 01530 816600 e: [email protected]