Sustainability Report 2009 From the world’s first Responsible SourceTM

A member of the Holcim Group i Contents Sustainability Report 2009

Global Reporting Initiative (GRI) Chief Executive statement | 4-5 This report, with additional information on our website www.aggregate.com/sustainability, > Alain Bourguignon is aligned with the Global Reporting Initiative (GRI) G3 Sustainability Reporting Introduction | 6-13 Guidelines, at an application level of A+. GRI has pioneered the development of > What is material to Aggregate Industries? the world’s most widely used sustainability reporting framework. > Materiality and stakeholder engagement > Sustainability workshop attendees For a detailed explanation of the GRI indicators, visit www.globalreporting.org > Vision, strategy and corporate governance > Aggregate Industries corporate plans and steering groups > Operating with integrity Glossary of sustainability terms > Competition law and compliance On our website we have published a glossary of sustainability terms which may > Aggregate Industries brand model be helpful when reading this report. This can be viewed by going to > Managing sustainability www.aggregate.com/glossary-of-terms Workplace | 14-23 where we work 2002 + + + In Accordance CC BAB A > Employee benefits > People and diversity Self > Employee diversity policies and practices Declared > Recruitment and retention > Training and development > Skills and training winner – Constructing Excellence Third > Health and safety Party > Performance management Checked > Fatality Prevention Elements (FPE’s) > Safety events OptionalGRI Mandatory > Bardon Aggregates – site swap Checked Report Externally Assured Report Externally Assured > Safety award for Bardon Concrete at Drigg > Communicating to our employees

Aggregate Industries | Sustainability Report 2009 ii

Marketplace | 24-29 Environment | 38-48 where we do business the world around us > Production 2009 > Best Green Companies 2009 > Recycled and substitute resources > Biodiversity > China clay from Cornwall > Protected areas > Procurement policies > Habitats protected and restored > Changes in our business operations > Managing biodiversity at Hulland Ward with Derbyshire Wildlife Trust > Construction solutions > International partnerships > The Responsible SourceTM > Annual report against relevant biodiversity plan objectives > Product lifecycle assessment > Environmental prosecutions and incidents > Mystery shopper – evaluating Aggregate Industries’ customer service > Waste management > British Ready-mixed Concrete Association Award > Water management – launch of our plan > The Carbon Trust Standard > 2009 CO2 Performance > Carbon Reduction Commitment Energy Efficiency Scheme Community | 30-37 > Movement of our products the people around us > Improving data in 2010 > Roll-out of community plan Appendix | 49-71 > Glensanda, a Tier One site > GRI performance indicators > Bardon Hill – engaging with our community > Contacts > Quantum Leap > Acknowledgements > Community complaints > Assurance statement 4 Chief Executive Alain Bourguignon

In December 2009, I was delighted to have been appointed as CEO of Aggregate Industries UK Limited. The business, formed back in 1997, has grown in size, capability and maturity in its market position to be one of the leading construction materials and service providers.

I took up my position as CEO in April of 2010 at a A major highlight was in August 2009 when Being safe and looking out for the safety of very exciting time for the business. Now, more Aggregate Industries became the first company to others is paramount in the good running of any than ever, maintaining market share and growing have all product groups certificated to BES 6001 – organisation. That is why in 2009, Aggregate the business in traditional sectors has to be a new standard developed by BRE Global for the Industries signed a pledge to work with the Health balanced with our continued investments and responsible sourcing of construction products. and Safety Executive as its partners to ‘be part of commitment to sustainable construction solutions. This recognition focuses our various achievements the solution’. Our Lost Time Injury Frequency Rate and enables our customers to source with even (LTIFR) continued to fall in 2009, with the fewest The global economic downturn has affected greater confidence. We are extremely proud to number of lost time injuries on record. It was great businesses operating across many sectors. The have been the first to achieve this as we concentrate to see so many of Aggregate Industries’ employees construction sector was one of the first to see this our energies into improving our position further. collecting awards for health and safety at the annual in 2008. At Aggregate Industries the recession has awards held by the Mineral Products Association. provided an opportunity for us to look at the way The economic situation has had a negative effect we do things and change them for the better. My on volumes and profit compared with recent years These awards rely on the people at our sites predecessor, Bill Bolsover, along with his team has which is reflected in this report. Whilst these are wanting to tell others of their achievements, there worked hard to maintain and build upon the down it is noted that the use of secondary is no dictation from the head office – it is purely respected position of Aggregate Industries as a aggregates has increased, showing the demand down to the culture of wanting to participate in the market leader in sustainable construction. for more sustainable construction products in our journey to zero incidents and share best practice. market place. Each submission comes with an immense amount

Aggregate Industries | Sustainability Report 2009 5

of pride and I am delighted that so many of our Just as we are committed to our workforce, we employees have been recognised by the industry. are committed to our policies. This was However, none of these successes compensate demonstrated when Aggregate Industries joined for the loss of two lives at work during the year. the board of the UK Green Building Council, of This is simply unacceptable and we must improve. which we are a Gold Leaf Founding Member. This sits alongside the other committees and organisations which we work alongside to set our A major highlight was in August credentials as a sustainable supplier of materials 2009 when Aggregate Industries to the construction industry. became the first company to have all Our sustainability journey is becoming harder. We “product groups certificated to BES 6001 have to ask more questions about the fundamental – a new standard developed by elements of our business and challenge norms to BRE Global for the responsible find more effective ways to drive a triple bottom sourcing of construction products.” line. I look forward to taking this task head on. 6 Introduction Sustainability Report 2009

As a major supplier of materials to the construction industry, at Aggregate Industries we are conscious of both the impacts and benefits our products have on people, the environment and the economy.

Scope of the 2009 Sustainability Report How we report To assist our progress in meeting the requirements Aggregate Industries Europe is how we define the Aggregate Industries produces an annual of the GRI framework we have again been working business scope for this report. Bardon Hall in sustainability report. This is the second report from with two independent organisations. SGS United Leicestershire is the head office for all UK based Aggregate Industries to be written using the Global Kingdom Limited was chosen as our external operations and those that are outside the UK, Reporting Initiative (GRI) Sustainability Reporting verification body to audit this report and ensure which are Ronez in the Channel Islands, Halsvik Guidelines as our methodology. The traditional that it is accurate and covers relevant information, Aggregates in Norway, Yeoman Poland and means of reporting on an annual basis remains in accordance with GRI guidance. Yeoman Baumineralien in Germany. appropriate for our main indicators of performance. We made every attempt to continue with indicators The Environment Council (TEC) facilitated a The report covers the calendar year from from previous reports to allow trends to develop. discussion to determine what is material to our 1 January 2009 to 31 December 2009 and applies stakeholders which helped shape and influence to all our wholly owned business operations unless We are part of a major global business and that is Aggregate Industries’ decisions on the report’s stated. We neither include our joint ventures in this highly relevant in terms of our accountability and content and style of presentation. report nor acquisitions or divestment and closures disclosures and our report needs to be read in completed in the reporting period. conjunction with the Annual Report and Sustainable Development Report from Holcim Ltd, our parent company. These can be located at www.holcim.com/sustainability

Intelligent resourcefulness Pro-activeProP o active responsibilityb i All-round capabilityp bility TotalTo a l commitmentco i Best valueEasy accessibility

Aggregate Industries | Sustainability Report 2009 7

Right: Bardon Aggregates and Bardon Contracting working together

What we report on We report on issues that we and our stakeholders believe are material to our business. We have written this report in four sections:

• Workplace: where we work • Marketplace: where we do business • Community: the people around us • Environment: the world around us

Within these sections we attempt to bring issues to life by showing case studies, performance data with interpretation and commentary about the initiatives and objectives that we are implementing.

GRI has pioneered the development of the world’s most widely used sustainability reporting framework and is used by many of our peer companies in the construction resources sector. To relate the elements and information contained within this report to the guidelines, please use the GRI index in the Appendix (see pages 49-68). 8 Introduction Sustainability Report 2009

What is material to Aggregate Industries? We identified these stakeholders by asking three key questions: In assessing what is material to Aggregate 1. Is the stakeholder critical to the business? Industries we need to understand how far our 2. Is the stakeholder negatively affected by our business? responsibilities extend across our core activities, 3. Is the stakeholder of strategic importance to our business? products and services. For us, there are two broad Fig 1 below identifies the groups of stakeholders under each of the sections of this report. We have areas we need to consider; licence to operate and identified some examples of the key members of these groups where appropriate. identifying and meeting the expectations of a wide Fig 1. Stakeholders by type range of stakeholders. Marketplace

Customers: Our licence to operate sets many of our Those buying our products and the end users

boundaries and the rules we have to follow as a Workplace Trade Associations: business. For example, this applies to business UK Green Building Council, Mineral Products Association, Employees: Construction Products Association, Confederation of British Industry conduct, waste management and gaining planning Those working for us Research organisations: consent, amongst others. Our pensioners: BRE Global, University of Sheffield Retired employees Competitors: In identifying our stakeholders we considered Contractors: Those supplying a similar service in our marketplace Those undertaking work on our behalf and those carrying out work for us groups and individuals under each of the four Suppliers: areas for this report. The key groups identified Those who supply us with materials and services were customers, government, non-government Community organisations, government offices, local Local communities: Environment 78 site liaison groups, neighbours, local media, parish councils community, employees and industry bodies. Associations: Government and agencies: The Wildlife Trusts, Carbon Trust, The Environment Council, Planning departments, county ecologists, local councillors Friends of Paxton Pits, Friends of Charnwood Forest, Earthwatch

Non-governmental organisations: Government and agencies: Leicestershire Cares, Steve Prescott Foundation Environment Agency, Scottish Environmental Protection Agency

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Materiality and stakeholder engagement Phase II – Working with Stakeholders to Identify they believe the company should focus its strategy Aggregate Industries commissioned The and Prioritise Material Issues and activities. During the day, stakeholders Environment Council (TEC), a leading charity One of the shared recommendations from TEC commented on our activities, shared their dedicated to sustainable development, to help and SGS was for Aggregate Industries report on experiences as stakeholders, and offered their implement a thorough and transparent approach the work carried out with stakeholders as part of perspectives on where they would like Aggregate to stakeholder engagement for this report. its operations and to connect with stakeholders in Industries to focus its strategy and what they the preparation of this report. To accomplish this, would like to see in future Sustainability Reports. TEC’s work, stakeholder engagement for Global Aggregate Industries brought together Reporting Initiative (GRI) based reporting, was stakeholders at a workshop held in April 2010 at Fig 2. Stakeholders helping to shape reporting undertaken in two phases: the 2012 Olympics Site – one of Aggregate Industries major contracts. Academic Institutions Loughborough University Phase I – Review and Analysis of Needs Against Communities Cumbria Community GRI Requirements Employees from across the company were asked Consultancies Stephens Scown Contractors FP McCanns This phase comprised largely of a review and to identify stakeholders with whom they regularly Customers B&Q, British Precast, Buildbase, Kier Construction, analysis of the previous year’s stakeholder engaged as part of their day-to-day work. Travis Perkins PLC engagement for GRI reporting. Approximately 180 stakeholders were invited to Employees Aggregate Industries the workshop with some 40 senior level Government & Agencies Carbon Trust, Department for Environment, The outputs of Phase I were a series of stakeholders attending. Food and Rural Affairs Industry groups BRE Global, Industrial Trust, Mineral observations and recommendations to Aggregate Products Association Sustainability Workshop Attendees Industries about how the company might report its Non-governmental London Wildlife Trust, National Biodiversity approach to materiality and stakeholder The stated goals of the workshop were to enable Organisations Network, Royal Society for the Protection of Birds inclusiveness for this report. the closest stakeholders of Aggregate Industries Suppliers Lyreco, Network Rail, Petroplus Bitumen, to hear about progress on sustainability and RWE npower, Shell Gas Direct, World Fuel engagement, and to offer their thoughts on where Services

Right: Engaging with stakeholders 10 Introduction Sustainability Report 2009

Top three material issues in each focus areas as identified and prioritised by stakeholders: Many of the priority issues raised by stakeholders are included in this report and an initial response Workplace to the top three material issues in each category 1 Have bottom up responsibility for Aggregate Industries objectives (e.g. carbon targets) can be found at www.aggregate.com/sustainability 2 Sustainability as a competitive advantage (i.e. future threats and opportunities) Aggregate Industries has committed to hold 3 Training and development (e.g. to keep up with changes) another stakeholder workshop in November 2010 Marketplace to report on how the company has used the feedback of the April session and to keep Help customers understand the sustainable options 1 stakeholders involved in the future development of 2 Understand the whole life cycle analysis its sustainability agenda. 3 Influence regulators to lift the barriers to sustainable solutions and products Community 1 Get feedback from the community through surveys In 2009, Aggregate Industries 2 Publicise liaison group activities and meetings was for the second year running th 3 Encourage UK and global suppliers to have similar approaches to their communities awarded 28 place in The Sunday Environment “Times Best Green Companies. 1 Go above what is expected by law, policies and schemes 2 Determine how Aggregate Industries is going to set and meet its targets in the future

Work together with competitors to make improvements ” 3

Aggregate Industries | Sustainability Report 2009 11

Vision, strategy and corporate governance Operating with integrity information and training, double signatures and Holcim’s group strategy and approach to value The Holcim Code of Conduct is applied specific policies. creation integrates economic, environmental and throughout the Holcim Group. It establishes a social impacts – the three elements of the ‘triple common and consistent framework across the All employees are expected to adhere to the code bottom line’. See Fig 3. To achieve our business organisation, and provides direction and of conduct. We do not tolerate violations. Non- goals, in line with our parent, and maintain our clarification on the conduct of our daily business. compliance may be subject to disciplinary actions. licence to operate, we have established ambitious targets (see Environment page 38). The Holcim Fair Competition Directive sets the rules for compliance with external laws and A business risk management exercise is regulations as well as with groupwide internal Fig 3. Working within the triple bottom line undertaken on an annual basis focussing on the policies. To ensure that employees and managers topics of this strategy model. are aware of their responsibilities under the code of conduct, each group company implements its Aggregate Industries corporate plans and own appropriate measures. At Aggregate Creation of Value steering groups Industries we issue a separate code of conduct applicable for local law as well as the Geographic Local Management To ensure Aggregate Industries is able to deliver Product Focus Diversification Global Standards on its sustainability targets, management plans for implementation of a competition law programme the topics of water, biodiversity, carbon and for relevant staff. Corporate Sustainable Permanent Human Social community have been created. Each of these Environmental Better Cost Marketing Resources Responsibility Performance Management Innovation Excellence (CSR) plans is supported by a steering group comprising As well as covering all aspects of our operations, the code makes specific provisions on bribery and People employees and an external expert for each topic. Base Mindsets Strategy Goal corruption. Local management takes additional It is their role to ensure that the targets set by the Creating added value is Holcim’s paramount objective, an objective reinforcement measures as circumstances that is based on three strategic pillars and determines guidelines in plans are delivered. The plans are available on our the functional sectors. The most important foundation on which website www.aggregate.com/sustainability warrant, and this may include more detailed everything rests is a workforce that gives its best on a daily basis.

Right: Stakeholder engagement 12 Introduction Sustainability Report 2009

Competition law and compliance monthly return is easily accessible for the vast We recognise that when customers purchase, Based on their seniority, commercial majority of employees as an electronic form on they are actually buying a series of elements, responsibilities and industry involvement, relevant Brains, the company intranet. some large, some small, some obvious and some staff are included in the company’s competition only in the subconscious. From our behaviours to law compliance programme. During 2009 over In 2009, no breaches were reported under this the performance of our products and from the 1,100 employees at Aggregate Industries were procedure. The compliance officer is available to consistency of our service to our commitment; within the programme which engages staff all staff to assist with any competition law or these are some of elements customers use to through training them on issues they may face and compliance queries that they have and we operate form a perception of us. how best to approach them. a confidential compliance hotline. In 2009, no issues were reported through the hotline. It is important to our customers and stakeholders In addition to being bound to behave only in that they have a consistent understanding of what accordance with the terms of the law and our All employees have a copy of our ‘business code we stand for. Our values help us create and competition law manual, employees are provided of conduct’ which covers our stance on a variety maintain this understanding. with initial and refresher training to ensure that of issues including dealing with confidential they are fully aware of their and the company’s information, fair competition, insider trading and What we do is summed up in the communication legal obligations. corruption. New starters are given a copy of this of our brand ‘Delivering value in construction when they join Aggregate Industries. The code of materials and services.’ During 2009, 336 people received training. All conduct is also available on the company relevant staff are also required to complete a six intranet, Brains. The six values shown in Fig 4 opposite, will be monthly return confirming that they are aware of embedded as a guide for how all employees can their obligations and either that they are not aware Aggregate Industries brand model help deliver the communication of the Aggregate Industries brand. of anything in that period that would amount to a A new brand proposition for Aggregate Industries breach of our compliance procedures or disclosing was developed in the latter half of 2009 with full any such breaches that they are aware of. The six roll out to employees planned for early 2010.

Aggregate Industries | Sustainability Report 2009 13

Fig 4. Brand values Managing sustainability A sub-committee of the Aggregate Industries Delivering board acts as a steering group for Corporate value in construction Social Responsibility (CSR). Two non-executive materials and services members of the board, Angela Yeoman OBE and Christopher Garnett sit on this sub-committee, along with three members of the executive committee. Angela Yeoman is the chairman of this sub-committee.

On the UK executive committee, Dr Miles Watkins has overall responsibility for sustainability in his role as Director of Sustainable Construction. This department manages all aspects of licence to Total commitment Intelligent resourcefulness Best value operate and stakeholder expectations. Areas of the business which fall under this department include: estates management and planning, health and safety, community and biodiversity engagement, research and development of new sustainable products and carbon management. Miles sits on the CSR sub-committee of the board. The executive committee is detailed at Pro-active responsibility Easy accessibility All-round capability www.aggregate.com 14 Workplace where we work

Turbulent economic conditions that took hold in 2008 continued throughout 2009. Once again it was difficult to promise job security or guarantee conditions and benefits that had previously been afforded.

Decisions taken during the year acted to limit the could secure around 60 jobs. An initial target to Measures such as these have seen job losses affect of job losses and to treat everyone fairly and save £8m was set and communicated to kept to a minimum. It is clear that the recession equally. For example operatives within our precast employees at a roadshow that visited employees will last into 2010 and beyond with extremely concrete businesses were put on variable hours in Glasgow, Leicester and Newbury. It was tough trading conditions. Government spending contracts to enable working according to demand. envisaged that through ‘Focus on our Future’ we cuts are also forecast after the May election. The majority of our workforce did not receive a could mitigate some of the effects of the recession. cost-of-living pay rise at the end of 2009 for the We closed a small number of sites in 2009 due to second year in a row. It was not possible to include all employees at the a downturn in orders and the requirement to roadshow, so those that did attend were given an reduce manufacturing capacity. Where possible The Aggregate Industries UK executive committee electronic condensed version containing the key we have redeployed employees. However, if we was restructured early in the year to give a clearer messages. They took this back to their sites and have been unable to do this, where appropriate, focus across our diverse product range and offices to cascade the message to others. By we have offered support to employees in a variety service offering. working in teams, employees across Aggregate of forms prior to them leaving the business such Industries submitted savings that they had made. as outplacement and careers advice. In February 2009, Group Chief Executive, Bill When these savings were added to those made Bolsover, launched ‘Focus on our Future’ an by process improvement throughout 2009, the internal initiative designed to both save money and total savings amounted to over £30m. increase revenue. We estimated that saving £2m

Intelligent resourcefulness Pro-activeProP o active responsibilityb i All-round capabilityp bility TotalTo a l commitmentco i Best valueEasy accessibility

Aggregate Industries | Sustainability Report 2009 15

Advice is offered to employees who are leaving the company; outplacement, careers and curriculum vitae advice as well as winding down periods for employees who are retiring, as outlined in our retirement and redundancy policies.

In teams, employees across Aggregate Industries submitted savings that they had made. When “these savings were added to those made by process improvement throughout 2009, the total savings amounted to over £30m.”

Left: Employee roadshow encouraged In February 2009 Group Chief Executive, Bill Bolsover, launched ‘Focus on our Future’ an internal staff to ‘Focus on our Future’ initiative designed to save money and increase revenue. We estimated that saving £2m could secure around 60 jobs, and an initial target to save £8m was set. 16 Workplace where we work

Employee benefits During the reporting period the programme was are reported in the Aggregate Industries Holdings Benefits are provided for both full time and part offered to over 5,000 members of staff on a range Limited Annual Report 2009 which is employees and are laid out in the employee of issues including child care, elder care, debt independently audited to IAS19. handbook which is available to all members of the management, legal advice and counselling. company. All employees are paid equal to or Contributions to the Aggregate Industries Pension above minimum wage. Benefits include a pension Aggregate Industries operates both defined benefit Plan (defined benefit) to fund future service scheme, additional holidays, company sick pay, and defined contribution voluntary pension benefits are: employer 16.9%, employee 7%. For private medical insurance and bonus schemes. arrangements. In total, there are 22 different the Stakeholder Plan, there is a sliding scale The only benefit which slightly differs between full schemes in the UK although the Aggregate dependent on grade of employee and employee and part time employees is the company car / Industries Pension Plan (defined benefit) and contribution rate. cash for car scheme whereby part time employees Aggregate Industries Stakeholder Plan (defined are offered an enhanced cash for car benefit. contribution) are the most significant sources of Over 31% of our full time equivalent (FTE) pension provision. employees are covered by formal collective pay Incentive arrangements for senior management agreements. Under these agreements, are covered under a scheme based on financial Defined benefit plans are trust based consultation concerning pay and hours is performance and individual key performance arrangements with the assets/liabilities being undertaken together with trade unions. indicators, one of which includes safety. managed through funds which are independent of For other operational changes, prior consultation is the company’s resources. completed where possible with one week minimum. There is also an Employee Assistance Programme (EAP) which is a free 24 hour service available to Defined contribution plans are either trust based People and diversity all employees where they can obtain professional arrangements, as described above, or contract In line with our parent company and GRI advice and counselling for themselves and their based arrangements whereby the assets are requirements we are using FTEs to measure our family for a variety of different reasons; Illness, managed on behalf of members by FSA regulated workforce profile. This measure allows us to depression, terminal illness, addiction or accident. insurance companies. The plan’s pension liabilities consider part time employees.

Aggregate Industries | Sustainability Report 2009 17

In December 2009, of around 5,350 FTEs, we Fig 5. Aggregate Industries Europe FTE Summary as of 31 December 2009 had 5,214 working with full time contracts of Aggregate Cementitious Shared Precast Overseas Grand total employment and 137 with part-time contracts. products service division Our FTE numbers fell by 590 during 2009 from Job Group division 5,940 to 5,350, due to redundancy and the continued restrictions on recruitment. Distribution 275.2 13.0 35.0 55.0 378.2

Our age profile is quite well balanced; approximately Production 2119.7 13.0 831.9 322.5 3287.1 16% being under 30 years old, 56% between Corporate logistics 45.6 1.6 1.9 3.0 52.1 30 and 50, and 27% over 50. The issue for the industry is attracting younger people to the trades Corporate manufacturing 192.4 37.8 27.8 9.0 266.9 available at our operational sites across the country. Finance and controlling 57.9 5.0 74.3 2.0 20.1 159.2 Our gender profile is not as well balanced; 85% male and 15% female. In 2009, 842.5 FTE left the General management 280.9 1.0 32.5 15.5 30.2 360.0 company, with the ratio of male to female leavers Human Resources 1.00 51.8 52.8 being almost the same as the underlying gender balance (82% male and 18% female). The ratios in Information services 1.00 79.2 80.2 the age categories of leavers were 24% being under 30, 45% in the range 30 to 50 and 31% Marketing and sales 377.2 10.0 67.6 242.5 7.0 704.3 over 50 years of age. With the economic downturn many of these were redundancies, and the key Purchasing 2.0 7.0 9.0 issue for management was to retain key skills in the business. Grand total 3352.7 30.6 363.2 1156.5 446.8 5349.8 18 Workplace where we work

Employee diversity policies and practices Recruitment and retention careers. Through this activity we are able to We have recognised that our employee profile in Even during periods of economic difficulty our promote our industry within schools and colleges terms of diversity presents us with many business still needs to identify, recruit and retain across the UK. challenges. All senior management in the the best people. During 2009, we recruited 13 company is regionally based, with none residing graduates, nine for summer placements, three into Before we make any offer of employment we outside of the UK. Only 1.6% of all employees substantive positions and one into a temporary ensure that we have received adequate have stated that they belong to an ethnic minority post. In addition to these a sponsored student identification from the individual; we ensure all group, 12.7% have not disclosed and 85.6% state completed a one year placement as part of her employees are legally entitled to work in the UK. that they are white. The Board is made up of eight university course. The human resources department has guidance individuals, seven are male accounting for 87.5% notes on the prevention of illegal working which with one female, all of whom are over 50 years of One challenge we face is encouraging younger are available to all managers. age and do not belong to an ethnic minority group. people into our industry. In order to try and attract school and college leavers we attend events such It is apparent that a growing number of customers as careers evenings and development days under Annual performance management appraisals for in the public sector pay attention to the diversity our ‘Futurepath’ initiative. all staff are conducted to promote continued and diversity policies of their suppliers. Since development. In 2009, we launched the Aggregate 2006, Aggregate Industries has had a diversity As well as Futurepath, involvement with ‘Young Industries ‘Dialogue’ scheme. This new online steering group which includes an external Enterprise’ has for many years been a regular appraisal system focuses on the Holcim leadership representative to develop our policies and activity for some of our managers. Three new competencies with an additional competency of practices in this field. business advisers and two area board members health and safety. Dialogue provides an were recruited during 2009 and in total six events opportunity to review work completed over the in Enterprise Week were attended by our staff, past 12 months, set objectives and targets for the providing help and guidance to young people in coming year and highlight training opportunities. the formulation of thoughts about their future During 2009 21% of employees received regular

Aggregate Industries | Sustainability Report 2009 19

reviews; this figure is low and it is expected that a In an aim to aid retention and welcome employees Our age profile is quite well higher percentage are completed but details are into our business we introduced a new induction balanced with 16% being under 30 not returned to the human resources department DVD. This has also been added to our intranet so years old, 56% between 30 and 50, for processing. A key business KPI has been that employees across the business can access it. established to monitor the use of Dialogue and we Work has also gone into development of a new “and 27% over 50. envisage this percentage to increase dramatically employee handbook which we will launch in 2010. in 2010. Fig 6. Aggregate Industries age” profile Fig 7. Aggregate Industries grade profile and gender – as of 31 December 2009

Over 50 years old Under 30 years old Grade profile Female Male Total

Top management 20.0 20.0

Senior management 4.0 99.0 103.0

Middle management 71.7 593.2 664.9

Other employees 707.4 3854.3 4561.7

Grand total 783.2 4566.5 5349.7 Between 30 and 50 years old % of Total FTE count 15% 85% 100%

Right: Aggregate Industries’ employees attending an ILM Diploma 20 Workplace where we work

Training and development expanded to include level 5. In addition, we Health and safety During 2009, employees at Aggregate Industries researched and developed methods of learning via Health and safety is a key priority for Aggregate received an average of 20 hours training per FTE; technology including using Juniper Meeting and Industries. We aim to ensure all of our employees, delivering a total 108,537 hours. Top and senior Same Time web conferencing tools. contractors and visitors are protected and we management received 28 hours of training and promote a safe working culture throughout development per FTE, middle management 36 Our programme of training and NVQ accreditation our operations. hours and others about 18 hours FTE. This is a very of all operational staff has intensified following the conservative estimate of the total training delivered creation of a training and competency function Monthly reports demonstrate the health and safety as it excludes training organised and delivered within the HR department. This will drive our performance of different business functions. The without reference to the HR team. However, business target, in line with Health and Safety principal measure is Lost Time Injury (LTI’s) per reporting of training has improved since 2008. Executive (HSE) initiatives, to have a fully competent million hours worked giving us a frequency rate workforce at all levels of our operations. (LTIFR). In 2009 this measure continued to fall New development programmes commenced in from 4.1 in 2008 to 2.54 including employees and 2009 to ensure that we provide opportunities for Skills and training winner – Constructing subcontractors. This is better than the target of people to gain new experience and skills. Excellence 3.83 set for 2009. The biggest causes of LTI’s in Coaching has been used by several senior Our road surfacing and civil engineering business, 2009 for Aggregate Industries were slips, trip managers. The Leadership Development Bardon Contracting, was recognised at the and falls. Programme, which leads to a postgraduate Constructing Excellence East Midlands Regional qualification, was completed by 14 delegates and Awards in October 2009. The central region of this Any dangerous occurrence or serious near miss is a second programme of 25 delegates was business has been able to demonstrate significant fully investigated by the operational management launched in conjunction with Loughborough improvements in employee retention, reduction in team in conjunction with the Health, Safety, University to start in 2010. Six of the original group sickness absence and improved repeat custom Environment and Quality (HSEQ) department. A will progress to study for an MBA. Institute of due to high standards of ongoing training. ‘Why Tree’ investigation is completed which Learning Management programmes available were includes full details of the incident, including

Left: ‘What could we have done more safely today?’ End of shift wrap-up boards

Aggregate Industries | Sustainability Report 2009 21

contributory causes and any learning opportunities. Performance management The scorecards evaluate a number of aspects of In essence, this process asks ‘Why?’ to establish In 2009 the interactive audit process was updated, the operations and are used to encourage the root causes of what went wrong. it continues to improve self assessment for directors and senior managers to visit their sites, reducing health and safety risks and improve our assess the health and safety culture within their We are deeply saddened to report two fatalities on behavioural based health and safety. The process business and highlight any areas Aggregate Industries sites in 2009. One operative aims to develop a safer working culture by means of improvement. was a direct employee; the other was a third party of positive interactions between employees which contractor working at one of our operations. focuses attention on safety; it shows how well For reporting purposes we can state that over Investigations into these fatalities are still ongoing safety is understood and applied. 75% of the total workforce are actively involved in with the relevant authorities. Any work related health and safety development to facilitate a death is unacceptable and Aggregate Industries In 2009 we also implemented score cards for all positive health and safety culture. continues in striving to improve its health and operations from director level down to site manager. safety culture across all its businesses.

Fig 8. Lost time injury frequency rate 2004-2009 Fig 9. Lost time injuries 2004-2009 Before any corporate health and safety procedure is published, employees are invited to provide 15 200 input to their local HSEQ advisor at any time. 13.50 12 A blog style feature on the intranet is also available 150 161 10.38 where employees can take the opportunity to 9 131 8.80 comment. This has meant that new procedures 100 111 6.71 92 are read and considered prior to their launch. 6 4.39 50 59 3 2.54 30

0 0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009

Right: Over 2,000 days worked at Newark Express Asphalt without a lost time injury 22 Workplace where we work

Fatality Prevention Elements (FPE’s) Safety events ideas by having a different set of eyes looking at Aggregate Industries continued to implement Carrying on with the success of previous years, each operation. The programme also helped each Holcim’s Fatality Prevention Elements (FPE’s). the directors of each part of the business hosted a site to set improved objectives and targets. These are a series of standards developed by series of safety events around the country for all Holcim to address the common hazards employees early in 2009. The events take different Safety award for Bardon Concrete at Drigg associated with fatal incidents across the Holcim themes relevant to the individual businesses in The staff at the Bardon Concrete site batching Group. The standards define the outcomes reviewing their health and safety performance by plant based at the Low Level Waste Repository necessary to prevent a situation or condition demonstrating good and bad practice observed (LLWR) at Drigg, Cumbria, won the monthly health having the potential to cause fatal injuries. on sites through the year. and safety award for December 2009. The award, issued by LLWR’s health and safety team, In 2009, Aggregate Industries implemented the Bardon Aggregates – site swap recognised Bardon Concrete’s commitment to following FPE’s: In a more hands on approach to training, quarry ensuring a safe working environment. • Working near underground and over sites across our Bardon Aggregates business took head services (January 2009) part in a site exchange programme early in 2009. The plant has been in situ on the nuclear site for 12 months and the achievement of this award has • Workplace transport safety (February 2009) Selected sites had an appointed partner site from which a range of employees in different roles, resulted from continued auditing by the site • Working at height (March 2009) exchanged information about best practice owners (LLWR), focusing on COSHH, lock-out • Isolation and lock off (June 2009) through discussion and role swapping for a period. procedures, risk assessment, training standards and day to day management of health and safety Our absentee rate was 2.34% based on 28,563 Each exchange had a planned set of fields to issues. LLWR Project Manager, Bill Paul, praised absent days from approximately 1.2 million days investigate in advance which included health and the ongoing competence and attention to detail of available to work. Aggregate Industries recognises safety as a mandatory requirement on all visits. staff on site with regard to health and safety. that accidents can only be eliminated by including The exchange programme sought to improve the and involving the workforce in its programmes. sharing of information and help generate new

Left: Yeoman Glensanda was awarded the TUC Award for worker involvement at the MPA safety awards

Aggregate Industries | Sustainability Report 2009 23

Communicating to our employees The staff magazine, Agenda, is sent to all Every Friday an information bulletin is distributed We operate a number of communication tools to employees’ homes and contains stories relating to to staff by email and via notice boards. The bulletin assist in keeping our employees up to date with recent business activities, from big and unusual contains information about a range of current what is happening across Aggregate Industries. project wins and successes to how Aggregate topics from staff appointments, award wins and Industries is helping to promote biodiversity and event notification to legislative changes. To Our intranet, Brains, is accessible to all IT users in community engagement, as well as individual complement this single announcements are the business. It holds many documents, policies, successes, donations made to charities and local sometimes made during the working week in a plans and information announcements. To groups, competitions and a section about the similar manner. th complement this, ENVOY, our HSEQ management history of the company. It reached its 30 issue at system is regularly accessed by site managers the end of 2009. where they record non-financial business data. Fig 10. Direct economic value generated and distributed The system is used for tasks such as incident and audit reporting along with action plan tracking. Direct economic value generated 2009 Revenues 1,243,235

Economic value distributed

Operating costs 931,585

At Aggregate Industries the Employee wages and benefits 224,498 recession has provided an opportunity Payments to providers of capital 272,456 for us to look at the way we do things Payments to government 59,327 “and change them for the better. Community investments 175 1,488,043 ” Economic value retained -244,808

Right: Employee roadshows were held throughout 2009 24 Marketplace where we do business

During 2009 the demand for construction products dropped significantly as the recession began to bite hard. Our production and sales figures fell from those previously seen, mirroring the general market trends.

Production 2009 Our precast concrete products businesses also Recycled and substitute resources Sales volumes of aggregates (rock, sand and saw decreases in sales and production. In 2008 Virgin quarried aggregate (rock, sand and gravel) gravel) saw a drop from last year’s figures by 16%. we recorded sales of 3.9 million tonnes, 2009 saw remains the predominant source of raw materials Production figures record 29.37 million tonnes the production of 2.5 million tonnes. for the production of concrete and asphalt. produced in 2009. Asphalt production is recorded Recycled, substitute and secondary aggregates as 5.31 million tonnes for 2009. In 2008 the group Fig 11. Materials used are becoming increasingly important as the saw sales of 6.55 million tonnes, although the construction industry strives for sustainability. Material 2008 2009 2008 sales figure included merchanted volumes, not produced by Aggregate Industries. Bitumen 306,351 tonnes 257,604 tonnes Total sales of recycled material were recorded at Aggregates 12.8million tonnes 13.96 million tonnes 641,800 tonnes across the group in 2009. Production of ready-mixed concrete showed a Cement 1.05 million tonnes 766,491 tonnes Previously we had not reported on this figure, only 3 decline from 3.1 million m in 2008 to Pulverised Fly Ash (PFA) 138,005 tonnes 118,767 tonnes on the amount that we had purchased to use in 3 2.26 million m in 2009, despite the ongoing Ground Granulated Blast our products. A large volume of the recycled supply of large contracts such as the Olympics furnace Slag (GGBS) 111,988 tonnes 68,156 tonnes aggregate that we sell into the market place is

site in London. Reduced volumes in the ready- Packaging 16,181 tonnes 10,557 tonnes used via internal reprocessing. For example when mixed concrete business can largely be attributed resurfacing a road, the old surface is planed off to the fall off in new house builds during the year. Of our materials used, 4.2% came from a recycled source in 2009. and can be reprocessed and used as a sub-base for a new road.

Intelligent resourcefulness Pro-activeProP o active responsibilityb i All-round capabilityp bility TotalTo a l commitmentco i Best valueEasy accessibility

Aggregate Industries | Sustainability Report 2009 25

China clay from Cornwall Processing of secondary aggregates from Cornwall has grown to 1.38m tonnes in 2009 compared with 1.16m tonnes in 2008. Our secondary aggregates are materials arising from other industrial processes. In this example granite materials have been extracted by operators quarrying for china clay. Much of this granite material has been ‘tipped’ over the years as it was not required by the industry.

However the properties of the material make it an ideal aggregate product for use in ready-mixed concrete, precast concrete products and as a sub-base material. This secondary aggregate material, processed by Aggregate Industries, is used within Cornwall and Devon as well as being transported by rail to other counties including London and the South East for use in large construction projects.

Lee Moor is a small unit north of Plymouth which produces sand and aggregates from such china clay waste arisings. The product is widely used by

Virgin quarried aggregate (rock, sand and gravel) remains the predominant source of raw materials for the production of concrete and asphalt. However, recycled, substitute and secondary aggregates are becoming increasingly important as the construction industry strives for sustainability. 26 Marketplace where we do business

our bagging operations, but also travels further Procurement policies imported natural stone products from India and afield to Leicestershire, Kent, the Channel Islands Aggregate Industries’ procurement policy was China. In 2009, imports from these countries and to Northern Ireland for inclusion in concrete developed in line with Holcim’s procurement and accounted for an estimated less than 1% of our products, where its high mica content gives a accounting and reporting practices. total products sold. sparkling appearance in the finished product. We define a local supplier of goods or services to Aggregate Industries has a policy and process in In 2008, the china clay operation was closed. With be within the country of our operations. Currently place to assess this risk and it contains standards the source for the plant no longer available, 94% of our procurement budget is locally spent, which restrict trade if child or forced labour is Lee Moor faced closure. although our procurement policy does not specify found, worker health, safety and welfare is ignored the use of local suppliers. A full copy of the policy or pay is below the local legal limits. The policy is However the operation is surrounded by a historic is available on request from the national supported by a comprehensive procedure, held in tip comprising china clay waste arisings generated procurement team, who develop processes to our information management systems. In 2009, no over many years. Aggregate Industries negotiated maximise the value from relationships with our violations were reported against our policy. the purchase of the tip to allow processing of the largest suppliers. material. This purchase has helped to secure not Changes in our business operations only local jobs, but also a source of a sustainable All suppliers are evaluated using a method that is Despite the difficult trading conditions, through aggregate product. continuously evolving. The method includes a management and careful planning we have seen supplier self assessment which covers health and minimal disruption to our operations. The largest With the purchase of the tip comes some safety, environment, quality assurance and human change was the sale of our UK Bitumen business additional land with ancient oak woodland on it, to rights elements. during the reporting period. which public access will be permitted, and which is likely to have biodiversity management actions We have identified potential risks from existing and At the end of December 2009 we expanded the to ensure its future. potential and suppliers. Primarily these relate to fleet of our Bennett’s Barges business by entering child labour being used within our supply chain of

Left: England’s first PassivHaus starts to take shape with products supplied by Charcon Precast Solutions

Aggregate Industries | Sustainability Report 2009 27

the formerly 100% owned operation into a joint Other operations Construction Solutions venture. The business continues to operate under • Tiptree ready-mixed concrete plant in Aggregate Industries is proud to be a Gold Leaf the Bennett’s Barges name, with Aggregate Essex (closed) Founding Member of the UK Green Building Industries retaining the 75% controlling interest. Council. As part of this we support the • Ivonbrook asphalt plant in Derbyshire (closed) Membership Commitment which can be found at New sites • Croy asphalt in Scotland www.ukgbc.org/site/commitment Whilst we made no acquisitions during 2009, we (replaced by new plant at Chryston) did open three sites in Scotland. During 2009, Aggregate Industries was involved • Uffculme precast concrete factory in • Ready-mixed concrete plant at Bonnyrigg in several initiatives to provide energy-efficient Devon (mothballed) products to construction projects. Charcon • Ready-mixed concrete plant at Duntilland • Ashington precast concrete factory in provided materials for housing project RuralZed in (replacing an old plant on the same site) Northumberland (mothballed) Northamptonshire, which built six houses to Level • Asphalt plant at Chryston • Middleton precast concrete factory in 6 of the Code for Sustainable Homes. Charcon Derbyshire (closed) also supplied materiels to the first English Closures built PassivHaus. (Quarries mothballed during 2009) • Newark precast concrete factory in Nottinghamshire (closed) Developed throughout 2009, and due for launch in • Dumbuckhill Quarry in Scotland ™ • Baston Fen precast concrete factory in 2010, the pioneering Life process produces • Longhaughton Quarry in Northumberland Cambridgeshire (closed) asphalts with a 45% reduction in carbon • Whitworth Quarry in Lancashire emissions. Not only is less carbon used in the production of the material compared to standard • Little Paxton Quarry in Cambridgeshire asphalt, but the process provides enhanced Some of these sites were still selling material from durability and long term performance through stock piles in early 2010. reduced binder aging.

Right: Bennett’s Barges making the first commercial journey through Three Mills Lock in London 28 Marketplace where we do business

To bring our construction solutions together, specifiers and construction professionals to meet Product lifecycle assessment Aggregate Industries was delighted to appoint sustainability targets more easily. Despite the economic climate, sustainability Ian Cox as Director of Construction Solutions in continues to embed itself in the marketplace and March 2009. Ian joined the company from his role In March 2009, Aggregate Industries became the clients are setting out policies of how goods and as Chief Executive of The Concrete Centre. first company to be certificated to BES 6001 for services should be procured. In recognition of this, operations at Barton under Needwood in Aggregate Industries became the first company to Working with Ian is a Sustainability Advisor, Staffordshire, achieving ‘Very Good’. In August, offer technology to calculate the optimum Chartered Architect and Chartered Structural Aggregate Industries again became the industry sustainable mix for ready-mixed concrete. Engineer. The department has been focussing on leader in having all products at all sites certificated business development, working in partnership with to BES 6001. The overall grade gained was Enabling us to quickly and accurately advise clients, engineers and architects in order to ‘Good’, with five of the sample sites achieving customers on what products and mixes will explore and develop new construction products ‘Very Good’. provide the greenest solution for their project, the and services. new technology is set to revolutionise the way The achievement of this standard could not have ready-mixed concrete is procured. The Responsible SourceTM been reached without more than a decade of Launched in 2009, the BES 6001 framework investment into sustainability. We are now seeking Aggregate Industries supplied data to BRE Global standard ‘Responsible Sourcing of Construction to improve our practices and monitoring to better to create the software which is the first of its kind this achievement. Products’ is an independent certification scheme on the market and assesses Ecopoints and CO2 which assesses responsible sourcing policies and equivalent per m3, as well as providing indicative practices throughout the supply chain of Aggregate Industries became an Green Guide ratings for mixes. construction products. With one assessment industry leader in having all products at covering raw material, its manufacture and delivery, its use, re-use and recyclability, the all sites accredited to BES 6001. universal rating system enables architects, “ ”

Left: Bardon Concrete is awarded the BRMCA award for Excellence in Customer Service

Aggregate Industries | Sustainability Report 2009 29

Mystery shopper – evaluating Aggregate Every quarter, update tables appeared on the Steve Hamilton, Area Manager for Bardon Industries’ customer service company intranet, Brains, and the programme is a Concrete said “Customer service is at the heart of As part of Aggregate Industries’ ongoing feature at all company conferences where sample Bardon Concrete and that means doing what is commitment to customer service, a ‘Mystery calls are played out. Very importantly there is also required to get the job done, to the best possible shopper’ scheme was rolled out company wide in recognition for outstanding customer service, with standard. In this case that involved extensive 2009. One of the objectives was to ascertain that a trophy being awarded to the best sales office. technical trials as well as weekend, overnight and customers could get the service that they wanted unusually large pours.” from Aggregate Industries. There were 22 sales British Ready-mixed Concrete Association Award Gerrit Smit, project manager at Volker Stevin offices surveyed covering 15 product areas within Bardon Concrete won the Excellence in Customer Marine UK said “Bardon Concrete was positive the company. Each received mystery shopper Service Award for the third consecutive year, this from the start concentrating on how they could phone calls. Alternatively, as many offices have time for the outstanding level of engagement and work with us within such demanding and exacting automated call recording, a sample was taken service offered to Volker Stevin Marine UK at the requirements. for analysis. Tyne Tunnel project.

“We were particularly concerned about the roof Each quarter, over 300 calls were dissected to Totalling 34,000 tonnes, the contract consisted of and wall pours given the complexity of the mix and make sure that the customer was greeted concreting 16 floor and 16 wall / roof sections timings of the pours. Area Manager, Steve worked appropriately, given accurate information on within four main tunnel segments. products and pricing, and called back if they had a with our technical team on a strategy which saved time, cost and minimised risk.” query that couldn’t be dealt with immediately. The large volumes, difficult positioning requirements and shrinkage and cracking Bardon Concrete previously won the award for At the end of a cycle, update courses were held considerations meant that the concrete design Coniston Village water upgrade project for United across sales offices to play back sample calls, and performance criteria were complex. discuss what went well, and where there was Utilities in 2007 and in 2008 when working for room for improvement. Edmund Nuttall at Queen Street contract in Glasgow.

Right: Charcon supplied cable protection along the A55 to Holyhead 30 Community the people around us

Where 2008 was a transitional year, 2009 was a year of providing baselines for better reporting and communication within the business. A particular focus being the importance in recording the work we undertake.

In order to explain what we do, we often invite Stakeholders with an immediate interest in our The objectives of community liaison groups are to: local groups, schools and individuals to our sites activities are invited to form a community liaison for guided visits. We had more than 2,000 visitors group. Typically members include neighbours, 1. Facilitate open communication: creates a forum for discussion and exchange of information on topics related to across the UK during the reporting period. We local government officers, environmental the quarry and our neighbours hope such opportunities to see inside the quarries protection agency officers, community in a safe manner gives our communities an representatives, councillors and Aggregate 2. Create a forum to raise issue: acts as a structured communication link between operational managers, the appreciation of the role of our operations and an Industries representatives. community and other stakeholders understanding of the way we conduct our business. The liaison group at Croft Quarry in Leicestershire 3. Provide an opportunity to influence operation: assists in identifying and addressing local issues and concerns relating As well as visits, we also held exhibitions regarding has successfully formed sub-groups to deal to a quarry and our neighbours plans for operational changes involving more than specifically with the key issues of blasting and 300 individuals and open days involving more than dust. Operational management can release 4. Provide an effective vehicle to communicate: important information regarding quarry operations 220 members of our communities. We held information on phasing of works to inform local

approximately 90 community liaison meetings residents and councillors of changes in working 5. Identify opportunities to partner on community project: during the year where we discussed and arrived at and residents can learn when conditions may builds relationships between Aggregate Industries, the agreeable measures to resolve some of the incidents mean there is increased likelihood of disturbance. community and stakeholders to achieve mutually beneficial outcomes resulting in complaints noted later in this section.

Intelligent resourcefulness Pro-activeProP o active responsibilityb i All-round capabilityp bility TotalTo a l commitmentco i Best valueEasy accessibility

Aggregate Industries | Sustainability Report 2009 31

The liaison group has also gained the support of the business in improving a local play area. In turn the community supported a world record attempt for planting trees at the site.

Through the difficult economic period, operational sites have been trying to give more value to the community by donating materials to support local projects rather than direct financial sponsorship. The Kids Club of Great Britain division near our Croft site in Leicestershire benefited from a donation of asphalt to repair their car park. They were able to use the budgeted cash for further improvements around their meeting place. Another example is noted in the Quantum Leap case study later in this section.

In 2009, we donated materials, skills and labour to an estimated value of £37,000 out of the £175,498 total community investment donated to local groups and charities.

Left: The Leicestershire Access Forum visits the extension As well as visitors, we also held exhibitions regarding plans for operational changes involving area at Bardon Hill Quarry more than 300 individuals and open days involving more than 220 members of our communities. We held approximately 90 community liaison meetings during 2009 where we aim to discuss and find agreeable measures to resolve some of the incidents resulting in complaints. 32 Community the people around us

Improving data in 2010 Regional directors are expected to have their Glensanda, a Tier One site The environmental checklist used by the HSEQ regional achievements as an agenda item and As an example of how the template set out in the auditors is to be updated in January 2010. As part reports are sent to them periodically to ensure all community plan could work. Fig 12 shows of ISO14001 internal audits, sites will be asked to sites are implementing their plans during 2010. activities undertaken at our Glensanda site during demonstrate their compliance with our community Site managers are encouraged to keep their 2009. The five themes of the plan are designed to plan. Results of these are recorded in our HSEQ objectives on ENVOY and record their donations. focus our support where our communities ask and system, ENVOY, and reports covering these and to explain the effectiveness of what we do. The many other of our performance indicators are As part of this plan and the biodiversity plan, we methods of ‘how we can help’, Participation, circulated through the business monthly. have categorised our sites into one of three tiers to Investment and Engagement (PIE) ensure that we ensure resources are focussed on areas of are listening to our communities, know who they Quarterly requests will be scheduled in the Internal greatest need. Tier One sites are flagship, large are and what local concerns are. Weekly Bulletin to remind operational managers to and multiple operational sites. Those sites within a input this information into ENVOY, along with Tier Two include any with a statutory designation such as a Site of Special Scientific Interest (SSSI). details of their site visitors, donations and external Through the difficult economic communications. They also are those sites with significant urban developments nearby, have had a number of months, operational sites have been Roll-out of community plan incidents causing complaint or are of strategic trying to give more value to the importance to the business. All our other sites are Following the development of the community plan “community by donating materials to encompassed within Tier Three. covered in our 2008 report, a rollout map was support local projects rather than developed to communicate the plan across the direct financial sponsorship. business. This plan can be found at www.aggregate.com/sustainability ”

Left: ‘Quantum Leap’, Shrewsbury

Aggregate Industries | Sustainability Report 2009 33

Fig 12. Community plan applied to our Glensanda site

Industrial heritage Local cultural heritage Grass roots sports activities Nature conservation and Community security and We aim to support groups that We aim to assist groups or We aim to support sports clubs understanding well-being relate to our business or events which promote cultural and schools that provide We aim to raise awareness of We aim to help people in our geographical location and identity. In doing so, we opportunities for sporting the importance of biodiversity communities to feel and be educate the general public to recognise and support the achievement. On-going and engage with our safer. A fear of crime can the relevance of heavy industry cultural diversity which has development relies on the skills communities through a curtail social activities through in the modern world. By doing developed over time and of an individual that has come common interest. By doing this an unwillingness to leave their this, we will contribute to continues to shape the from grass-roots we aim to get participation in homes. We hope to allay fears keeping alive traditional communities around us managing the local within our communities methods, materials and skills environment for the benefit through the provision of of wildlife education and resources Participation Attendance at the Scottish Arranged for 141 school Assistance with design for new Advising on unblocking of the Fixing the Lismore Community Marine Bill consultation meeting. children to visit to understand indoor riding school for Riding River Coe to aid salmon Transport using skills and tools Talked to MSP's ref role of the necessity of quarrying – for the Disabled spawning on site Glensanda in area and followed sponsoring of Oban Scottish economy Environmental Fair in 2008

Investment Arranged for 141 school Donation to Oban Sea Cadets. Donation to Riding for the Using local ecologists to Donation to support the Oban children to visit to understand Donation to Lismore Heritage Disabled Association undertake baseline surveys for Lifeboat Fund the necessity of quarrying – Centre for development biodiversity plan followed sponsoring of Oban Environmental Fair in 2008

Engagement Sitting on the SSMEI Sound of Kentallen and Duror Community Primary schools were unable to Visit by local ramblers group to Developing formal community Mull Working Group Hall requested cash, but carry out sports days due to understand the management of liaison group on Lismore received more in donation for lack of transport. The services of the site materials and advice for flooring Lady Heather and crew enabled replacement schools to continue

Right: Ripon City Quarry open day helps raise money for Martin House Hospice in Boston Spa 34 Community the people around us

Bardon Hill – engaging with our community lives of the people living within this community. A lasting memorial inspired by Darwin’s life and Aggregate Industries has been consulting with the These commitments include the development of ideas, Quantum Leap, was opened in October in residents and groups around Bardon Hill Quarry an environmental study centre for the use of Mardol Quay Gardens, in the town. for over two years in advance of the submission of visitors and local groups, funding speed limit planning application to extend the life of the site by measures on one of the roads surrounding the Director of Geological Services, David Hopkins, 50 years. estate, open increased access points to the involved Aggregate Industries with the project at network of footpaths across the estate and the an early stage. We have made presentations to nine different creation of more heathland. organisations with an interest in or responsibility to “Geology was at the centre of a huge part of the area, taken over 70 people on quarry tours, Annual spring guided nature walks have taken Darwin’s life and work. What a wonderful held three series of public exhibitions which were place over Bardon Hill, to display some of the opportunity for us to be able to show our attended by 310 people, sent information and good land management and conservation which appreciation of Darwin and support this lasting updates on the proposal to over 6,000 homes and has taken place over the last 18 years. Our sculpture in his home town – a town where met with 42 local residents in their own homes. Bardon Aggregates business, which operates the Aggregate Industries is part of the community” quarry, has also been running a photographic Feedback from this exercise was sought to competition attracting nearly 800 entries in its first The brief from Shropshire Council for this exciting influence the details of the proposals and to year. This competition is now in its second year. project was to create a sculpture in the UK, accommodate expressed views wherever standing an impressive 12 metres tall and possible. Over 50 direct responses have been Quantum Leap weighing in excess of 100 tonnes. A joint effort from the Aggregate Industries businesses Charcon recorded with many of the suggestions being 2009 marked the bicentenary of Charles Darwin’s Precast Solutions, Bardon Aggregates and included in the final application. birth and Aggregate Industries has been a key Paragon Materials provided support and products player in making his home town of Shrewsbury at to the project as a charity donation. Our aim was Through local engagement we have committed to the heart of international celebrations. a number of projects designed to enhance the to invest in the town of Shrewsbury and offer an

Left: The propellor shaped blades built by Aggregate Industries that form ‘Quantum Leap’

Aggregate Industries | Sustainability Report 2009 35

impressive reminder of Charles Darwin. Fig 13. Community plan applied to our Glensanda site The stone for the project was quarried from Croft Tier Biodiversity plan Community plan and the cement was provided by Paragon Materials. Charcon Precast Solutions painstakingly One Sites shall enter a program to work towards Undertake targets which encompass participation, supported the design, developed moulding achieving certification to The Wildlife Trusts investment and engagement against all five themes Biodiversity Benchmark solutions, produced very specific concrete mix designs and developed complex reinforcement designs. The end result being the manufacture Two Sites shall develop a biodiversity management plan Sites will develop a plan which will encompass and hand finishing of 31 propeller shaped blades, in conjunction with community partners for identified participation, investment and engagement within parts of the land under our control one of the themes weighing three and half tonnes each, supported through the site erection stage by a complex web of 62 chain hoists and associated support frame work. Three Sites shall develop and implement simple and low- These smaller, often standalone sites will undertake Quantum Leap is the only major piece of public art cost means to raise awareness of nature and to targets either participation, investment or make a contribution to enhancing the amenity of engagement within one theme commemorating the bicentenary. The formal their area. dedication of Shrewsbury’s newest and largest piece of public art ‘Quantum Leap’ took place in This may include but not be limited to; October 2009 by Charles Darwin’s great great • Landscaping using native plant species grandson, Randal Keynes. • Erecting nesting facilities for bats or birds

• Using local resources for landscaping

• Allowing natural regeneration

Right: Visiting Newbold Quarry in Staffordshire 36 Community the people around us

Community complaints Fig 14. Community complaints during 2009 The number of incidents which resulted in a Blasting is still the cause behind Water (3) community complaint is at an overall improved Visual (5) level. A complaint can come from an individual or the majority of our complaints. Noise (26) groups within our communities. Where a site has a Over 31% of the total number falls Transport (14) Community Advisory Panel (or liaison group), “into this category although we must these complaints are discussed and reviewed. We Odour (2) Total (109) evaluate the cause and corrective actions required keep this in perspective when 85% of to resolve issues. Members of the panel our hard rock sites do not receive any communicate these findings back to the blasting complaints at all. Dust (24)

community and the complainant. Blasting (35)

A good community complaints mechanism will consistency and reduce human error, we are now serve several ends. First, it assists with counting the number of complaints which have ” Fig 15. Hard rock blasting complaints to sites transparency by creating a channel for local been recorded in each category. There will be community to raise concerns. Secondly it helps to occurrences where the same complaint is counted build trust once operational managers are seen to in more than one category but we hope this will be proactive in providing information or resolving give a clearer picture of the incidents on our sites. concerns raised. Third, it provides unique and invaluable sources of information to be used for Blasting is still the cause behind the majority of our better day-to-day management and outcomes complaints. Over 31% of the total number falls into this category although we must keep this in No complaints (85%) We have slightly amended the manner in which we perspective when 85% of our hard rock sites do report our complaints this year. In order to ensure not receive any blasting complaints at all. Complaints

Left: Farmers from Goosnargh pay an evening visit to Holme Park Quarry

Aggregate Industries | Sustainability Report 2009 37

Fig 16. Community complaints 2000-2009

Total (247)

Total (172) Total (158) Total (144) Total (147)

Blasting (112) Total (124) Total (111) Total (109) Total (101) Total (91) Blasting (63) Blasting (54) Blasting (46) Blasting (43) Blasting (41) Dust (37) Noise (37) Noise (38) Blasting (35) Transport (34) Transport (30) Blasting (30) Blasting (29) Dust (29) Blasting (29) Dust (27) Transport (26) Noise (26) Noise (26) Odour (25) Dust (25) Noise (25) Noise (25) Dust (24) Dust (24) Transport (23) Dust (22) Odour (22) Visual (21) Noise (20) Transport (20) Noise (20) Dust (19) Odour (18) Dust (18) Dust (17) Transport (16) Noise (16) Dust (15) Odour (14) Transport (14) Transport (14) Odour (13) Odour (11) Water (11) Visual (11) Visual (10) Transport (9) Transport (8) Water (7) Visual (7) Odour (7) Visual (7) Water (5) Water (5) Water (5) Visual (5) Water (4) Visual (4) Odour (4) Visual (3) Visual (3) Water (3) Water (3) Water (3) Water (2) Visual (2) Odour (2) Odour (1)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Right: Offering work experience opportunities helps to inform our local communities of our activities 38 Environment the world around us

This section covers our impacts on the environment. The world around us provides our raw materials, energy and the routes for the disposal of our solid and liquid waste materials.

Early in 2008, we set a series of targets based the North of England and our merchanted This interactive evaluation has again proved around the resources that we use in the aggregates operation Yeoman Aggregates serving valuable in the way that we communicate to production and distribution of our materials. In this the South East marketplace. employees on environmental matters. section we will report our progress towards these targets: Best Green Companies 2009 Our last sustainability report was put on display in • Zero waste to landfill by 2012 Aggregate Industries was again awarded 28th receptions across the business, with the full report place in The Sunday Times Best Green available on both our website • Reduce potable water by 25% by 2012 Companies listing. This year the listing highlighted www.aggregate.com/sustainability and in hard from 2008 the top 60 companies, having shown 50 in 2008. copy format on request.

• Reduce CO2 per tonne of product by 20% by Once again we entered in the category of more 2012 from 2008 baseline than 250 employees operating in high We see participating in this annual listing as an environmental impact sector. important way of demonstrating best practice • Reduce packing waste by 20% from 2008 towards of environmental commitments; we intend Our ISO14001 environmental management system Part of the assessment included an on-line survey to continue this participation again in 2010. continues to be maintained with the scope of of attitudes within our workforce, of which 459 registration increased to include 16 ready-mixed employees took the opportunity to complete. For concrete plants in the South West of England, our application to qualify we had to achieve seven in the London, as well as an asphalt plant in 385 responses.

Intelligent resourcefulness Pro-activeProP o active responsibilityb i All-round capabilityp bility TotalTo a l commitmentco i Best valueEasy accessibility

Aggregate Industries | Sustainability Report 2009 39

Right: In December, Aggregate Industries employees and the community around Croft Quarry planted 403 trees in one hour to celebrate “Tree O’ Clock” – national tree week

Biodiversity Biodiversity is the active conservation of not only a huge variety of plants and animals, but also the interaction of all the elements of nature (an ecosystem) and is fundamental to our future existence. Many companies have a direct impact on biodiversity through their landholdings. Those which do not will have indirect impacts through processes, supply chain, products and investment policies. At Aggregate Industries we aim to enhance the positive effects we bring to our landholdings through conservation and habitat creation, thus minimising the negative effect on wildlife as a result of our operations.

Although we are obligated by the planning process to take final consideration of restoration and after- use into all planning applications, we have a best practice guide for planning applications and make any consultants aware of our biodiversity policy at the Environmental Impact Assessment (EIA) stage. Within operations, impacts on the environment are identified in ENVOY.

Left: Pond dipping on the nature reserve at Croft Quarry At Aggregate Industries we aim to enhance the positive effects we bring to our landholdings through conservation and habitat creation, thus minimising the negative effect on wildlife as a result of our operations. 40 Environment the world around us

We work at international, national and local levels favourable and recovering status. Our objective is Of these, one is listed as vulnerable by level of alongside partners to strengthen our contribution for 80% and we may already have reached this extinction risk; three near threatened, 43 least to landscape scale conservation. During 2009, the due to up to date information not being readily concern and two data deficient. International Union for Conservation of Nature available from Scottish Natural Heritage and (IUCN) visited three of our UK sites to better Countryside Council for Wales regarding 7 sites. Initially published in 1994, as the UK government’s understand our biodiversity processes and response to the Convention on Biological Diversity, practices. We also are represented on regional The 44 Sites of Special Scientific Interest (SSSI) the UK Biodiversity Action Plan (UKBAP) sets out biodiversity steering groups where we can tie in are areas selected for protection by law due to specific plans to protect the 1150 species and 65 with local partners on projects and objectives to one or more special scientific qualities. There are habitats were identified as being priority species in contribute to the UK Biodiversity Action Plan two categories: biological and geological where the UK. Of these, 65 species and 17 habitats can (UKBAP). the former may be a specific taxonomic group of be found on Aggregate Industries’ sites. species or habitat of high conservation value such Protected areas as ancient woodland at Bardon Hill, intertidal Habitats protected and restored muds at Lee-on-the-Solent or the bog moss at Across our UK sites, we have 66 significant Habitats are restored following years of work. Warmwell. In geological cases, a quarry may be designations; 23 biological Sites of Special Success of this restoration can only be measured designated for its special rock forms or mineralogy, Scientific Interest (SSSI), 21 geological SSSI’s, 1 through the successful migration of indicator such as Bardon Hill Quarry (Leicestershire), National Nature Reserve (NNR), 2 RAMSAR species for particular habitats. In 2009, we planted Lea Quarry (a non-operational site in Shropshire), wetland areas of conservation, 10 Special Areas of over 18,000 trees, 390 metres of hedgerow and Meldon (Devon) and Croft Quarry (Leicestershire). Conservation (SAC), 5 Special Protection Areas extended traditional drystone walling by nearly 10 (SPA), 3 within Areas of Outstanding Natural metres. At Bardon Hill we created 8.5 hectares of In the baseline surveys and Biodiversity Action Beauty and 1 Historic Garden. These designations broad-leaf woodland, 4.75 hectares of heathland Plans we have identified at least 49 species which cover 1,788 hectares of Aggregate Industries land and improved 2 hectares of ancient woodland by are included on the International Union for the and are identified on our Geographical Information the removal of non-native species over the last 17 Conservation of Nature (IUCN) Red List. System (GIS). Of our SSSI’s, a total of 78% are at years. These actions contribute towards the local

Left: The BBC programme ‘Country Tracks’ visits Bardon Hill Quarry to learn more about industry working with nature conservation

Aggregate Industries | Sustainability Report 2009 41

Biodiversity Action Plan targets of 100 hectares of Biodiversity Action Plan with the help of both International partnerships heathland and restoration of 100 hectares of Derbyshire Wildlife Trust and Groundwork UK. In May, European Minerals Day promoted the role ancient woodland. of our industry in developing biodiversity Work started in October 2009 in clearing an area management and working in partnership with our Managing biodiversity at Hulland Ward with of woodland, known as Birch Wood, creating neighbours to create high quality spaces for Derbyshire Wildlife Trust habitats for invertebrates. Through engaging with nature. Quarry open days, newt hunts and nature Derbyshire Wildlife Trust, this high nature Our Hulland Ward site started working with trails were held at our quarries across England conservation value area is being included in the Derbyshire Wildlife Trust (DWT) during the national and Scotland. Wild About Nature project which aims to provide support of the BBC’s Breathing Places campaign educational and training opportunities for schools, between 2006 and 2009. What started as an In June, an expert panel from the IUCN youth groups and the wider public. aspiration to support DWT local events has moved (International Union for the Conservation of Nature) to enhancement of the land outside the visited Aggregate Industries as a part of their work Jane Proctor, Marketing and Resource operational area for the benefit of local biodiversity to steer Holcim’s biodiversity strategy. The panel is Development Manager for Derbyshire Wildlife and local education. made up of independent experts from across the Trust, says: “Getting local businesses involved and world and has a programme of visits to Holcim aware of the importance of preserving and Hulland Ward had its first survey completed in Group companies to look at the way that enhancing biodiversity is a critical part of our work. 2008 to provide information towards the current biodiversity is managed. We try to inspire as many people as possible to biodiversity action plan. Two key areas were consider their natural environment as part of their identified where land management could be Many people still believe that our industry simply day to day consideration.” effective, one beyond the car park, the other degrades the landscape. However what is now further to the west of the landholdings. Objectives clear is that many experts have recognised the were drawn up to see the land being managed to huge potential we have to provide first class contribute to the woodland, grassland, wetland habitats for wildlife from the way we can manage and species elements of the Derbyshire our landholdings.

Right: The IUCN visit Aggregate Industries 42 Environment the world around us

Dr Christoph Imboden, the chairman of the Expert Annual report against relevant biodiversity Objective 3: Establish, maintain and report Panel from IUCN, was very positive about what he plan objectives publicly our progress at Tier One sites (link to and his colleagues had seen at Bardon Hill in Objective 1) annually from 2008. Objective 1: Integrating our site plans with Leicestershire, Holme Park in Cumbria and at landscape scale conservation programmes by the Progress: We sadly did not achieve this during Ripon in North Yorkshire. During the closing end of 2008. 2009 but the information will go live onto the meeting he said: “It is clear to anyone that there is sustainability section of our website during 2010. genuine commitment and hard work being shown, Progress: We have worked with The Wildlife Trusts both in the way you work with the people around to overlay their map of Living Landscapes over our Objective 4: Establish, maintain and report you and in what we have seen on the ground at GIS map. At the 15 sites which lie within, and the publicly a set of criteria for Tier One classification these three quarries. There is much to take back 26 close to these areas, we will engage with by the end of 2008. and consider how others can learn from this coordinators to set land management guidance to across the Holcim Group.” support projects. Progress: These have been agreed by the internal biodiversity steering group and will be put on our Biodiversity and Community Engagement Manager, Objective 2: Achieve a measurable positive website during 2010. Delia Shannon said “We must take every opportunity contribution to relevant large scale conservation to show-off to others what we have done and what programmes annually from the end of 2009 to the Objective 5: Achieve certification to Biodiversity we intend to do in the future. We have learnt a lot end of 2012. Benchmark at all Tier One sites by the end from the Wildlife Trusts and other UK partners, but it of 2009. Progress: We are working with our partners and is extremely rare to have the opportunity to get using our biodiversity steering group to develop Progress: Two sites currently hold the Wildlife feedback from international experts.” new methods of capturing information which can Trusts’ Biodiversity Benchmark but all operational support this objective. Our geographical Tier One sites are working towards completing the information system (GIS) is now holding more requirements for the Biodiversity Benchmark. survey data and we hope to be able to use this (See objective 3) information to run reports.

Left: Kestrels make their nest on the asphalt plant at Astley, Manchester

Aggregate Industries | Sustainability Report 2009 43

Objective 6: On sites without formal plans, identify Objective 8: Use our Geographical Information Objective 9: Working with key partners, support key local BAP species suitable for conservation or System capability to record and show our status and promote biodiversity as a key protection by the end of 2009. and work with the National Biodiversity Network on environmental challenge. appropriate reporting methods by the end of 2009. Progress: All sites are gathering information Progress: regarding local species of interest and these are Progress: Bardon Hill surveys are on the NBN National: BBC programme, Country Tracks, being recorded. We are developing our GIS and Gateway and plans are underway to investigate visited Bardon Hill to look into the challenges of internal Estates Management systems to be able use of a new, simpler recording system hosted by running a quarry alongside a SSSI. We have also to capture survey results. NBN. Our GIS system now holds phase one signed up to be partners of the 2010 International survey information for 26 sites. Year of Biodiversity and plans are in place to hold Objective 7: Obtain 80% in favourable status on a number of events across the country. Aggregate all legally designated sites by the end of 2012. Industries is also involved in the launch of the Mineral Products Association (MPA) biodiversity Progress: We have requested information from steering group. Scottish Natural Heritage (SNH) and Countryside At Aggregate Industries we aim Council for Wales (CCW) about some of our Regional: We have representatives on regional designated sites but have not received feedback. to enhance the positive effects we biodiversity forums, e.g. East of England and The Mineral Products Association is going to use bring to our landholdings through Cumbria Biodiversity Partnership. its greater sway to encourage a more free-flowing “conservation and habitat creation. exchange of information. Although only 78% of all Local: Biodiversity is a routine topic at site open our SSSI’s are at favourable or recovering status, days, planning application exhibitions and other 91% of our Tier One site designations have community activities, such as the exhibitions held already achieved this target. ” around Bardon Hill in advance of the submission of the planning application.

Right: An Oystercatcher chick hatches at Back Lane Quarry, Carnforth 44 Environment the world around us

Environmental prosecutions and incidents Fig 17. Waste generated

GRI classes an incident as a spill which is of Landfill Recovered Recycled sufficient scale to be included in the financial statement. Although Aggregate Industries has not 2009 2008 2009 2008 2009 2008

reported any under this classification, 173 minor Inert 26,187 14,965 0 0 46,158 55,703 incidents have been reported in ENVOY and investigated internally. In 2009, Aggregate Non Hazardous 25,617 45,550 2,065 7,520 39,995 33,513

Industries was not prosecuted or convicted of any Hazardous 448 2,303 45 0 487 431 environmental incidents. Total 52,252 62,818 2,110 7,520 86,640 89,647 Waste management The Government’s Strategy for Sustainable waste, of this 52,252 tonnes was sent to landfill. Where possible, inert material including crushed Construction, set targets for reducing waste in the This is a decrease from 62,818 tonnes disposed concrete, construction or demolition waste and construction industry. As a major supplier to the to landfill in 2008. asphalt planings are recycled and used as an construction industry, Aggregate Industries alternative to primary aggregates in our valued recognises the responsibility to support its In 2009, a total of 86,640 tonnes of waste was added ready-mix, building materials and asphalt customers in achieving these targets. recycled, helping to reduce the total volume of production businesses. During 2009 46,158 waste sent to landfill. This decrease of 3,007 tonnes of inert material was recycled with the To this end we have set a challenging target of tonnes from 2008 has been achieved through remaining sent to landfill. zero waste to landfill by 2012. Sending waste to segregating waste on site to assist with reuse or landfill not only has a significant impact on the recycling, raising awareness through our The nature of our production process generates environment, but is also costly and a waste of a workforce and partnering with suppliers and our an element of hazardous waste which can include potentially valuable resource. In 2009, Aggregate waste management contractors to seek an engine oil, gasoline and hydraulic oil. In 2009, Industries generated some 141,000 tonnes of alternative to landfill. 2,110 tonnes of hazardous waste was recovered.

Left: A robin makes its nest in machinery at Chard Junction Quarry, Somerset

Aggregate Industries | Sustainability Report 2009 45

It has been identified that waste data at some Water management – launch of our plan extraction process. Therefore we recognise our operational sites was omitted from ENVOY in In 2009 Aggregate Industries launched a four year key responsibilities as a custodian of the water 2009. As a consequence, the corporate waste water management plan. This plan is an integral environment and endeavour to manage our reports generated by the management system element in delivering some of the aims outlined in operations effectively. failed to include this local waste data. As a result our environment policy. It is set around five the figures published in this report show a smaller key themes. In producing the plan we engaged with experts in amount of waste than was actually produced in this field, both internally and externally, to ensure the reporting period. Each of these themes provides us with a that we are well positioned to manage our framework within which to set objectives which will activities in the future. The introduction of the EU To address this situation the waste reporting be delivered over the next four years. The themes, Water Framework Directive is also expected to function of ENVOY was reviewed and amended at however, will carry over into future company plans. bring a significant change in the use and the end of 2009 to allow operational sites to input management of water in our operations. their waste data more efficiently. This allows data As a business we utilise water in a number of integrity reports to be published allowing a better ways; to wash aggregates, for onsite dust We have identified that there are no significant understanding of any omitted waste data from sites. suppression and use within production. We also negative impacts on water bodies. We monitor our move significant quantities of water during discharge points with the support of the Looking ahead for 2010, it is our intention to dewatering as an integral part of the mineral Environment Agency / SEPA. produce a waste management plan, which will set our aims in reducing waste into a series of Fig 18. Total water usage 2007-2009 (m3) Fig 19. Water usage by type 2008-2009 (m3) objectives to be met. This will help us fulfil our commitment to reduce our waste to landfill.

10000000 6000000

5000000 8000000

4000000 6000000 3000000 4000000 2000000

2000000 1000000

0 0 2007 2008 2009 2008 2009

Abstracted water Mains water 46 Environment the world around us

Fig 20. Themes from the water management plan The Carbon Trust Standard the Mineral Products Association with a view to creating new standards across all asphalt plants in Theme 1: Minimise impact and contribute to the conservation One of the steps towards preparing for the Carbon of the local environment Reduction Commitment Energy Efficiency Scheme the UK. A similar mechanism is currently being (CRCEES) was the achievement of the Carbon developed for implementation across the ready- Theme 2: Maintain legal compliance now and in the future Trust Standard (CTS) across all our UK operations mixed concrete business for both energy and in August 2009. Aggregate Industries UK became water use. Theme 3: Prioritised site based management plans the first company in our sector to be accredited with this achievement. Combined with the ongoing project of installing Theme 4: Raise awareness of the importance of effective half hourly meters at all sites in the UK and water management within the businesss The Carbon Trust Standard is the world’s first automatic inputting of meter readings, we are Theme 5: Establish and maintain best practice for water carbon award that requires an organisation to working towards achieving a full early adoption management of core company operations measure, manage and reduce its carbon footprint metric bonus in the first year of the CRCEES. and make reductions year-on-year. Unlike other These metrics allow companies to gain bonuses Fig 18 shows a year on year reduction in water award schemes, organisations are rewarded for based on the work they have already put into consumption. It should be noted that due to the actions they’ve taken to cut carbon across their monitoring and reducing their CO2 emissions economic climate, as already discussed, own operations. ahead of the schemes official start date. production during 2009 was down. This has a direct impact on the amount of water we As part of the work towards the CTS, an Energy 2009 CO Performance consumed in our production process. 2 Performance Certificate system has been As the effects of the recession began to become developed for Aggregate Industries’ asphalt Recycled water is collected and used within our more apparent in 2009, a 21% fall in material plants. Grading each plant from A-G, the system operations where practical, for example vehicle volumes occurred across all areas of the business. ensures all units are moving towards an A grade washing. There is no current monitoring system This corresponded to an 18.5% year on year fall in with individual improvement plans in place. An established to record accurate data on how much absolute emissions equating to a reduction of industry first, the scheme is being considered by is used. 103,000 tonnes of CO2.

Left: Geese cross the haul road at Little Paxton Quarry, Cambridgeshire

Aggregate Industries | Sustainability Report 2009 47

Overall, the KPI has increased by 3.10% per transport emissions leading to a 2,000 tonne Carbon Reduction Commitment Energy tonne. In part this can be put down to the fixed reduction in CO2. Efficiency Scheme CO2 load being spread over a reduced activity As detailed in our 2008 report, from April 2010, we base. The following measures that have been Our process emissions have increased since 2008 will be in the CRCEES, which forms part of the implemented during 2009, have limited the impact by 1.44% from 5.01kg/CO2/T to 5.08 kg/CO2/T government’s approach towards meeting its of this. while our rail and road transport emissions have targets for energy related carbon emissions • Increased level of fuel switching to biofuels in increased by 5.41% from 3.58 kg/CO2/T to 3.77 reduction. These targets are to achieve 80% the asphalt business kg/CO2/T. This equates to an overall carbon reduction on a 1990 baseline by 2050, but with an footprint of 8.86 kg/CO2/T which means we still interim target of 26% by 2020. These reductions • Investment activity in sub – 1 year energy have a reduction of 1.99 kg/CO2/T if we are to hit relate to a basket of greenhouse gases (GHG) or efficiency technologies our 20% reduction of CO2 per tonne by 2012 target. sometimes described as carbon dioxide

• Implementing company wide initiatives equivalents (CO2 e). At this time CRCEES, through Focus on our Future however, only relates to carbon dioxide emissions Without these underlying activities, we would have but will nevertheless contribute to progress towards seen a rise closer to 6%. Demonstrating this is the lower overall impacts in terms of climate change. asphalt CO2 intensity. This fell from 27.10 to 26.6 † kg/CO2/tonne or 2%. Fig 21. CO2 per tonne of production (Kg) Fig 22. Energy usage 2007-2009

Although we are able to influence our direct 12 process emissions, transport represents a 10 significant part of our footprint and is much harder 900000 800000 to manage. However, through the outsourcing of 8 700000 appropriate transport operations to logistics 600000 6 specialist TDG, we have been able to influence 500000

4 400000 300000 2 200000 100000 0 0 2007 2008 2009 2002 2004 2005 2003 2006 2007 2008 2009 Gas usage (MWh) † From 2006 the CO2 per tonne has been split by production and transport. Scope has been extended Elect usage (MWh) to include marine transport from 2007 Oil – all grades (MWh) 48 Environment the world around us

The carbon dioxide emissions which are covered positioned to manage the environmental impact of relate to those from electricity, gas and other this activity in the future. This is likely to be energy sources but not for transport related developed through the implementation of a emissions. Although CRCEES will not come into transport plan and steering group in 2010. force until April 2010, we have been working on our strategy since early 2008 as the details of the regulations started to emerge through the consultation phase.

Movement of our products It is important to our customers On-time delivery of our products to our customer’s sites is critical for the continued success of our and stakeholders that they have a business. However, we recognise that the consistent understanding of what we transport of our products and services can have “stand for. Our values help us create adverse social and environmental impacts such as: and maintain this understanding. • Use of fossil fuels

• CO2 emissions [3.58 tonnes CO2e in 2008] • Increased road vehicle movements • Nuisance to local residents ” At the end of 2009 the company considered its transport provision and recognised a requirement to engage with key stakeholders, internally and externally ensuring that the business is well

Left: Bardon Vectis supplying concrete to Bembridge lifeboat station on the Isle of Wight

Aggregate Industries | Sustainability Report 2009 Appendix 50 Appendix GRI Performance Indicators

Sustainability Environment and Customer Aggregate Industries Holcim website report community policy service policy UK website

Economic Disclosure on Management Approach Economic Aspects: Economic performance market presence and indirect economic impacts X X X Goals and Performance Organisation-wide goals regarding performance relevant to economic aspects. Use indicators to demonstrate results X of performance against goals. Available in the Investor Relations Section of Holcim website Policy Organisation-wide policy that defines overall commitment relating to economic aspects. Strategy House, X documented in Holcim Investor Relations Additional Contextual Information Additional relevant information required to understand organisational performance, such as key successes and shortcomings major organisational risks and opportunities major changes to systems and structures to improve X X performance and key strategies for implementing policies or achieving performance

Aggregate Industries | Sustainability Report 2009 51

Sustainability Environment and Customer Aggregate Industries Holcim website report community policy service policy UK website

Environmental Disclosure on Management Approach Environmental Aspects: Materials; energy; water; biodiversity; emissions, effluents and waste; products and services; X compliance; transport Goals and Performance Goals and performance for biodiversity and community engagement are set out in the environment and community X policy – available on-line – and in the new Biodiversity plan (included in text, pages 22/23) Policy Our policy that defines overall commitment relating to environmental aspects is available on-line at X X www.aggregate.com/sustainability Organisational Responsibility The most senior position with operational responsibility for environmental aspects, or explain how responsibility is X X divided at senior level Training and Awareness Procedures relating to training and raising awareness in relation to environmental aspects. Certified to ISO14001 X Monitoring and Follow-up Procedures relating to monitoring and corrective and preventive actions including those related to the supply chain. X Certified to ISO14001 List of certifications for environment-related performance or certification systems or other approaches to X auditing/verification for the reporting organisation or its supply chain. Certified to ISO14001 Additional Contextual Information Additional relevant information required to understand organisational performance, such as key successes and shortcomings; major organisational environmental risks and opportunities; major changes to systems and structures X to improve performance; and key strategies for implementing policies or achieving goals 52 Appendix GRI Performance Indicators

Sustainability Environment and Customer Aggregate Industries Holcim website report community policy service policy UK website

Social: Labour Practices and Decent Work Disclosure on Management Approach Labour Aspects: Employment; Labour / Management Relations; Occupational Health & Safety; Training and X Education; and Diversity and Equal Opportunity Goals and Performance Organisation-wide goals regarding performance relevant to Labour Aspects, indicating linkage to internationally X recognised universal standards. Use of indicators to demonstrate results of performance against goals Policy Organisation-wide policy that defines overall commitment relating to labour aspects. Employment practices section X X as defined by Holcim Organisational Responsibility The most senior position with operational responsibility for labour aspects, or explain how responsibility is divided at X senior level Training and Awareness Procedures relating to training and raising awareness in relation to labour aspects X Monitoring and Follow-up Procedures relating to monitoring and corrective and preventive actions including those related to the supply chain. X As defined by Holcim under employment practices List of certifications for labour-related performance or certification systems or other approaches to auditing/verification for the reporting organisation or its supply chain. Investors in People awarded to X Bardon Contracting Additional Contextual Information Additional relevant information required to understand organisational performance, such as key successes and shortcomings; major organisational risks and opportunities; major changes to systems and structures to improve X X X performance; and key strategies for implementing policies or achieving goals

Aggregate Industries | Sustainability Report 2009 53

Sustainability Environment and Customer Aggregate Industries Holcim website report community policy service policy UK website

Social: Human Rights Disclosure on Management Approach Human Rights Aspects: Investment and Procurement Practices; Non-discrimination; Freedom of Association and Collective Bargaining; Abolition of Child Labour; Prevention of Forced and Compulsory Labour; Complaints and X Grievance Practices; Security Practices; and Indigenous Rights. As defined by Holcim Goals and Performance Organisation-wide goals regarding performance relevant to Human Rights Aspects, indicating linkage to international declarations and standards. Use of indicators to demonstrate results of performance against goals. As defined X by Holcim Policy Organisation-wide policy that defines overall commitment relating to human rights aspects. As defined by Holcim X Organisational Responsibility The most senior position with operational responsibility for human rights aspects, or explain how responsibility is X divided at senior level. As defined by Holcim Training and Awareness Procedures relating to training and raising awareness in relation to human rights aspects. As defined by Holcim X Monitoring and Follow-up Procedures relating to monitoring and corrective and preventive actions including those related to the supply chain. X As defined by Holcim List of certifications for human rights-related performance or certification systems or other approaches to X auditing/verification for the reporting organisation or its supply chain. As defined by Holcim Additional Contextual Information Additional relevant information required to understand organisational performance, such as key successes and shortcomings; major organisational risks and opportunities; major changes to systems and structures to improve X X performance; and key strategies for implementing policies or achieving goals 54 Appendix GRI Performance Indicators

Sustainability Environment and Customer Aggregate Industries Holcim website report community policy service policy UK website

Social: Society Disclosure on Management Approach

Society Aspects: Community; Corruption; Public Policy; Anti-competitive Behaviour; and Compliance X

Goals and Performance Organisation-wide goals regarding performance relevant to Society Aspects, indicating linkage to international declarations and standards. Use of indicators to demonstrate results of performance against goals. Set out in X Aggregate Industries' Community Plan Policy Our 'Business Code of Conduct' covers our approach towards corruption, anti-competitive behaviour and X compliance. Our separate policy 'environment and community' covers our commitment towards communities Organisational Responsibility The most senior position with operational responsibility for society aspects, or explain how responsibility is divided at X senior level Training and Awareness Procedures relating to training and raising awareness in relation to society aspects. Set out in Aggregate Industries' X Community plan Monitoring and Follow-up Procedures relating to monitoring and corrective and preventive actions including those related to the supply chain X List of certifications for society-related performance or certification systems or other approaches to X auditing/verification for the reporting organisation or its supply chain. Not disclosed Additional Contextual Information Additional relevant information required to understand organisational performance, such as key successes and shortcomings; major organisational risks and opportunities; major changes to systems and structures to improve X performance; and key strategies for implementing policies or achieving goals

Aggregate Industries | Sustainability Report 2009 55

Sustainability Environment and Customer Aggregate Industries Holcim website report community policy service policy UK website

Social: Product Responsibility Disclosure on Management Approach Product Responsibility Aspects: Customer Health & Safety; Product and Service Labeling; Marketing X Communications; Customer Privacy; and Compliance Goals and Performance Organisation-wide goals regarding performance relevant to Product Responsibility Aspects. Use of indicators to X demonstrate results of performance against goals Policy Organisation-wide policy that defines overall commitment relating to Product Responsibility aspects X X Organisational Responsibility The most senior position with operational responsibility for Product Responsibility aspects, or explain how X responsibility is divided at senior level Training and Awareness Procedures relating to training and raising awareness in relation to Product Responsibility aspects. Certified to ISO 9001 X Monitoring and Follow-up Procedures relating to monitoring and corrective and preventive actions including those related to the supply chain. X Certified to ISO 9001 List of certifications for Product Responsibility-related performance or certification systems or other approaches to X auditing/verification for the reporting organisation or its supply chain. Certified to ISO 9001 Additional Contextual Information Additional relevant information required to understand organisational performance, such as key successes and shortcomings; major organisational risks and opportunities; major changes to systems and structures to improve X performance; and key strategies for implementing policies or achieving goals 56 Appendix GRI Performance Indicators

Standard Disclosures Description 2009 answer 1.1 Statement from the most senior decision-maker of CEO statement the organisation 1.2 Description of key impacts, risks and opportunities CEO statement and main report text Organisational Profile 2.1 Name of the organisation Cover of this report 2.2 Primary brands, products and / or service See www.aggregate.com 2.3 Operational structure of the organisation, including See www.aggregate.com main divisions, operating companies, subsidiaries and joint ventures 2.4 Location of organisation's headquarters See www.aggregate.com 2.5 Number of countries where the organisation operates See www.aggregate.com and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form Private limited company by shares 2.7 Markets served (including geographic breakdown, See www.aggregate.com sectors served and types of customers / beneficiaries) 2.8 Scale of the reporting organisation See Introduction, scope of the 2009 sustainability report on page 6 2.9 Significant changes during the reporting period See Marketplace section, changes in our business regarding size, structure or ownership operations on page 26 2.10 Awards received in the reporting period See www.aggregate.com Report Parameters 3.1 Reporting period for information provided See Introduction, scope of the 2009 sustainability report on page 6 3.2 Date of most recent previous report October 2009, Sustainability Report (based on year ending 31 Dec 2008) 3.3 Reporting cycle See Introduction, scope of the 2009 sustainability report on page 6

Aggregate Industries | Sustainability Report 2009 57

Description 2009 answer 3.4 Contact point for questions regarding the report or See back inside cover of this report its contents 3.5 Process for defining report content Written using GRI reporting principle. www.globalreporting.org 3.6 Boundary of the report (e.g. countries, divisions, See Introduction, scope of the 2009 sustainability subsidiaries, leased facilities, joint ventures, suppliers) report on page 6 3.7 State any specific limitations on the scope or Defined where deviation from scope occurs boundary of the report 3.8 Basis for reporting on joint ventures, subsidiaries, See Introduction, scope of the 2009 sustainability leased facilities, outsourced operations and other report on page 6 entities that can significantly affect comparability from period to period an / or between organisations 3.9 Data measurement techniques and the bases of Within the GRI G3 Protocols. www.globalreporting.org calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols 3.10 Explanation of the effect of any re-statements of Defined in the report where applicable information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years / periods, nature of business, measurement methods) 3.11 Significant changes from previous reporting periods in Not applicable to this report the scope, boundary or measurement methods applied in the report 3.12 Table identifying the location of the Standard See Introduction, GRI on page (i) Disclosures in the report 3.13 Policy and current practice with regard to seeking The report assurance followed standard procurement external assurance for the report practice through a tendering process 58 Appendix GRI Performance Indicators

Description 2009 answer Governance, commitments and engagement 4.1 Governance structure of the organisation, including See www.aggregate.com committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight 4.2 Indicate whether the Chair of the highest governance In 2009 the Chairman on the Aggregate Industries UK body is also an executive officer board was not an executive officer of the business 4.3 For organisations that have a unitary board structure, See www.aggregate.com state the number of members of the highest governance body that are independent and / or no executive members 4.4 Mechanisms for shareholders and employees to See www.aggregate.com provide recommendations or direction to the highest governance body 4.5 Linkage between compensation for members of the See Workplace, employee benefits on page 16 of highest governance body, senior managers and this report executives (including departure arrangements) and the organisations performance (including social and environmental performance) 4.6 Processes in place for the highest governance body to See Introduction, competition law and compliance on ensure conflicts of interest are avoided page 12 4.7 Process for determining the qualifications and Reviewed by executive / board expertise of the members of the highest governing body for guiding the organisations strategy on economic, environmental and social topics 4.8 Internally developed statements of mission or values, See www.aggregate.com and Workplace. See also codes of conduct, and principles relevant to Introduction vision strategy and corporate governance economic, environmental and social performance and on page 11 the status of their implementation

Aggregate Industries | Sustainability Report 2009 59

Description 2009 answer 4.9 Procedures of the highest governance body for See Introduction, operating with integrity and overseeing the organisation's identification and managing sustainability management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles 4.10 Processes for evaluating the highest governance See Introduction, operating with integrity body's own performance, particularly with respect to economic, environmental and social performance 4.11 Explanation of whether and how the precautionary The precautionary approach is taken with respect to approach or principle is addressed by the organisation environmental and social risks and is detailed in our environment and community policy 4.12 Externally developed economic, environmental and Covered in this report social charters, principles or other initiatives to which the organisation subscribes or endorses 4.13 Memberships in association (such as industry See www.aggregate.com associations) and /or national / international advocacy organisations in which the organisation has positions in governance bodies, participates in projects or committees, provides substantive funding beyond routine membership dues or views membership as strategic 4.14 List of stakeholder groups engaged by the organisation See Introduction, identifying our stakeholders on page 8 4.15 Basis for identification and selection of stakeholders See Introduction, identifying our stakeholders on page 8 with whom to engage 4.16 Approaches to stakeholder engagement, including Stakeholder engagement surveys have been undertaken frequency of engagement by type and by stake- with The Environment Council. Findings from the most holder group recent is disclosed in the introduction to this report. For further details and case studies relating to stakeholder engagement see the environment and community policy / community plan or www.aggregate.com 4.17 Key topics and concerns that have been raised See introduction pages 9 & 10 of this report through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting 60 Appendix GRI Performance Indicators

Description 2009 answer Economic EC1 Core Direct economic value generated and distributed, See Workplace section page 14 including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments EC2 Core Financial implications and other risks and opportunities See CEO introduction for the organization’s activities due to climate change EC3 Core Coverage of the organization’s defined benefit See Workplace section, employee benefits page 16 plan obligations EC4 Core Significant financial assistance received from government The qualifying level of assistance received by government in terms of grants and tax relief varies slightly from year to year. For the reporting period the level was around £70,000, which do not consider to be significant EC5 Add Range of ratios of standard entry level See Marketplace section, procurement policies page 26 wage compared to local minimum wage at significant locations of operation EC6 Core Procedures for local hiring and proportion of senior See Workplace sections, employee diversity, policies management hired from the local community at and practices page 16 locations of significant operation EC7 Core Procedures for local hiring and proportion of senior See Workplace sections, employee diversity, policies management hired from the local community at and practices page 16 locations of significant operation EC8 Core Development and impact of infrastructure See Community section, page 30 investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement EC9 Add Understanding and describing significant See Community section, case study Bardon Hill – indirect economic impacts, including the engaging with our community, page 34 extent of impacts

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Description 2009 answer Environmental EN1 Core Materials used by weight or volume See Marketplace section, materials used on page 24 EN2 Core Percentage of materials used that are recycled See Marketplace section, materials used on page 24 input materials EN3 Core Direct energy consumption by primary energy source 224,421 Mwh (gas) 708,540 (liquid fuels) EN4 Core Indirect energy consumption by primary source 169,003 Mwh EN6 Add Initiatives to provide energy-efficient or renewable See Marketplace section, construction solutions on energy based products and services, and reductions page 27 in energy requirements as a result of these initiatives EN8 Core Total water withdrawal by source See chart Environment section, water management on page 45 EN10 Add Percentage and total volume of water recycled See Environment section, water management on page 45 and reused EN11 Core Location and size of land owned, leased, managed in, See Environment section, protected areas on page 40 or adjacent to, protected areas and areas of high biodiversity value outside protected areas EN12 Core Description of significant impacts of activities, See Environment section, page 39 products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas EN13 Add Habitats protected and restored See Environment section, habitats protected and restored on page 40 EN14 Add Strategies, current actions, and future plans for See Environment section, Annual report against managing impacts on biodiversity relevant biodiversity plan objectives on page 42 EN15 Add Number of IUCN Red List species and national See Environment section, protected areas on page 40 conservation list species with habitats in areas affected by operations, by level of extinction risk

EN16 Core Total direct and indirect greenhouse gas emissions Direct emissions = 175,187 tonnes CO2e by weight Indirect emissions = 89,475 tonnes CO2e 62 Appendix GRI Performance Indicators

Description 2009 answer Environmental EN17 Core Other relevant indirect greenhouse gas emissions Not reported due to indirect greenhouse gas emissions by weight being insignificant for our business at this time EN18 Add Initiatives to reduce greenhouse gas emissions and Variable Speed Drive installation on 14 asphalt plants

reductions achieved has resulted in a saving of 1086 tonnes of CO2 equivalent EN19 Core Emissions of ozone-depleting substances by weight We have identified that we do not have processes, products or services that use ozone depleting substances EN20 Core NO, SO, and other significant air emissions by Dust emissions from stacks = 582.4 tonnes calculated type and weight based on maximum permissions limits and average operating hours. The calculation provides an over estimation a the majority of plants operate well below the maximum permitted emission level. Nox = 3,575

(tonnes / C02e, Sulphur) = 472 tonnes, POP = not recorded, VOC = not recorded, HAP = not recorded, PM = not recorded EN21 Core Total water discharge by quality and destination Surface = 103,940,386.8m and sewer = 226,847.5m. These figures are based on maximum permitted emissions limits and average operating hours. The calculation provides an overestimation as the majority of plants operate well below the maximum permitted emissions levels EN22 Core Total weight of waste by type and disposal method See Environment section, waste management on page 44 EN23 Core Total number and volume of significant spills See Environment section, environmental prosecutions and incidents on page 44 EN24 Add Weight of transported, imported, exported, or treated Zero waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

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Description 2009 answer Environmental EN25 Add Identity, size, protected status, and biodiversity value See Environment section, water management plan on of water bodies and related habitats significantly page 45 affected by the reporting organization’s discharges of water and runoff EN26 Core Initiatives to mitigate environmental impacts of See Environment section, Aggregate Industries targets products and services, and extent of impact mitigation on page 38 EN27 Core Percentage of products sold and their packaging The majority of products and services provided by the materials that are reclaimed by category business do not require packaging. Where packaging is used, no formal reclaim system is in operation EN28 Core Monetary value of significant fines and total number of See Environment section, Environmental prosecutions non-monetary sanctions for noncompliance with and incidents on page 44 environmental laws and regulations EN29 Add Significant environmental impacts of transporting See Environment section, How we move our products products and other goods and materials used for the on page 48 organization’s operations, and transporting members of the workforce Labour Practices LA1 Core Total workforce by employment type, employment See Workplace section, people and diversity on page 16 contract, and region LA2 Core Total number and rate of employee turnover by age See Workplace section, people and diversity on page 16 group, gender, and region LA3 Add Benefits provided to full-time employees that are not See Workplace section, employee benefits on page 16 provided to temporary or part-time employees, by major operations LA4 Core Percentage of employees covered by collective See Workplace section, employee benefits on page 16 bargaining agreements LA5 Core Minimum notice period(s) regarding operational See Workplace section, employee benefits on page 16 changes, including whether it is specified in collective agreements 64 Appendix GRI Performance Indicators

Description 2009 answer Labour Practices LA6 Add Percentage of total workforce represented in formal See Workplace section, health and safety on page 20 joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs LA7 Core Rates of injury, occupational diseases, lost days, and See Workplace section, health and safety on page 20 absenteeism, and number of work-related fatalities by region LA8 Core Education, training, counseling, prevention, and risk- See Workplace on page 16 under employee benefits control programs in place to assist workforce members, their families, or community members regarding serious diseases LA9 Add Health and safety topics covered in formal agreements No formal agreements covering health and safety with trade unions LA10 Core Average hours of training per year per employee by See Workplace section, training and development on employee category page 20. We do not currently record training for our Yeoman Aggregates or Spadeoak businesses LA11 Add Programs for skills management and lifelong learning See Workplace section recruitment and retention and that support the continued employability of employees training and development on page 18 and assist them in managing career endings LA12 Add Percentage of employees receiving regular See Workplace section recruitment and retention on performance and career development reviews page 18 LA13 Core Composition of governance bodies and breakdown of See Workplace section people and diversity on pages 16 employees per category according to gender, age group, minority group membership, and other indicators of diversity LA14 Core Ratio of basic salary of men to women by Top and senior grades 1.01:0.68 middle management employee category 1.01:0.95 Other employees 1.02:0.92. This has been calculated by using an average salary, based on 39 hours, for each level of management. Ratio shown is as a ratio of the total average salary for that particular group

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Description 2009 answer Product Responsibility PR1 Core Life cycle stages in which health and safety impacts of Aggregate Industries has a new product development products and services are assessed for improvement, lifecycle; this does not indicate specifically where and percentage of significant products and services health and safety impacts are assessed. However categories subject to such procedures Safety data sheets for products are available at www.aggregate.com/about-us/health-and-safety These detail information to ensure the safe use of products supplied by Aggregate Industries. In addition bagged aggregate products carry labelling to alert consumers that care needs to be taken when lifting, and where a product is likely to have a health and safety or environmental impact, these are outlined on the packaging PR2 Add Total number of incidents of non-compliance with None reported in 2009. Details of such occurrences regulations and voluntary codes concerning health and would be recorded in our HSEQ management system safety impacts of products and services during their life cycle, by type of outcomes PR3 Core Type of product and service information required by The majority of products supplied by Aggregate procedures, and percentage of significant products Industries are not packaged. Within our landscaping and services subject to such information requirements range three paving products are labelled as part of the Carbon Reduction Label scheme. Milldale 20-26kg per m2, Driveway 18-20kg per m2 and Peak Smooth 12-14kg per m2. Due to the nature and longevity 'in situ' positioning of the products, there is no written procedure for their disposal. Aggregate Industries does however consume recycled products within its manufacturing process – see Marketplace, recycled and substitute resources on page 24 PR4 Add Total number of incidents of non-compliance with Zero regulations and voluntary codes concerning product and service information and labeling, by type of outcomes 66 Appendix GRI Performance Indicators

Description 2009 answer Product Responsibility PR5 Add Practices related to customer satisfaction, including See Marketplace, Mystery Shopper – evaluating results of surveys measuring customer satisfaction Aggregate Industries’ customer service on page 29 PR6 Core Programs for adherence to laws, standards, and Design and media agencies are accountable for the voluntary codes related to marketing communications, compliance and reporting of all marketing including advertising, promotion, and sponsorship communications across the organisation in line with ICC and ASA. Documentation of these standards is held centrally. There are no products in the portfolio to date which are banned in certain markets or subject to question PR7 Add Total number of incidents of non-compliance with Zero regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes PR8 Add Total number of substantiated complaints regarding Zero. During 2009 Aggregate Industries added an breaches of customer privacy and losses of option for recipients of email communications to customer data 'unsubscribe' from mailing lists PR9 Core Monetary value of significant fines for noncompliance Nil with laws and regulations concerning the provision and use of products and services Human Rights

HR1 Core Percentage and total number of significant investment Zero. This is controlled by UK law agreements that include human rights clauses or that have undergone human rights screening HR2 Core Percentage of significant suppliers and contractors See Marketplace section, procurement policies on that have undergone screening on human rights and page 26 actions taken HR3 Add Total hours of employee training on policies and Zero hours. We do not offer a general human rights procedures concerning aspects of human rights that training course are relevant to operations, including the percentage of employees trained

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Description 2009 answer Human Rights HR4 Core Total number of incidents of discrimination and 0 incidents actions taken HR5 Core Operations identified in which the right to exercise Under current legislation freedom of association and freedom of association and collective bargaining may collective bargaining can not be withdrawn be at significant risk, and actions taken to support these rights HR6 Core Operations identified as having significant risk for See Marketplace section, procurement policies on incidents of child labor, and measures taken to page 26 contribute to the elimination of child labor HR7 Core Operations identified as having significant risk for See Workplace section, recruitment and retention on incidents of forced or compulsory labor, and measures page 18 to contribute to the elimination of forced or compulsory labor HR8 Add Percentage of security personnel trained in the Zero organization’s policies or procedures concerning aspects of human rights that are relevant to operations HR9 Add Total number of incidents of violations involving rights Zero of indigenous people and actions taken Society

SO1 Core Nature, scope, and effectiveness of any programs and See Community section, roll out of community plan on practices that assess and manage the impacts of page 32 and Environment section, biodiversity plan on operations on communities, including entering, page 42 operating, and exiting SO2 Core Percentage and total number of business units See Introduction section, competition law and analysed for risks related to corruption compliance on page 12 SO3 Core Percentage of employees trained in organization’s anti- See Marketplace section, competition law and corruption policies and procedures compliance on page 12 SO4 Core Actions taken in response to incidents of corruption None 68 Appendix GRI Performance Indicators

Description 2009 answer Society SO5 Core Public policy positions and participation in public See www.aggregate.com policy development and lobbying SO7 Add Total number of legal actions for anticompetitive None behaviour, anti-trust, and monopoly practices and their outcomes SO8 Core Monetary value of significant fines and total number of None non-monetary sanctions for noncompliance with laws and regulations

Aggregate Industries | Sustainability Report 2009 Contacts 69

Contact Dr Miles Watkins Director of Sustainable Construction

Acknowledgements Aggregate Industries would like to thank the following people for their contribution in gathering information for this report: Marian Garfield Stephanie Kendrick Delia Shannon James Formosa Chris Higgs David Forder Paul Mackernan Paul Taylor Fraser Higgins Jane White Ian Martin

Designed by: www.robinsonandassociates.co.uk

Now, more than ever, maintaining market share and growing the business in traditional sectors has to be balanced with our continued investments and commitment to sustainable construction solutions. 70 Assurance Statement SGS United Kingdom Ltd

SGS UNITED KINGDOM LTD’S This report has been assured at a moderate level ethical auditing and training; environmental, social STATEMENT ON SUSTAINABILITY of scrutiny using our protocols for: and sustainability report assurance. SGS United ACTIVITIES IN THE AGGREGATE • evaluation of content veracity; and Kingdom Ltd affirm our independence from Aggregate Industries Ltd, being free from bias and INDUSTRIES LTD SUSTAINABILITY • evaluation of the report against the Global REPORT FOR 2009. conflicts of interest with the organisation, its Reporting Initiative Sustainability Reporting subsidiaries and stakeholders. Guidelines (2006). Nature and scope of the assurance The assurance team was assembled based on SGS United Kingdom Ltd was commissioned by The assurance comprised a combination of pre- their knowledge, experience and qualifications for Aggregate Industries Ltd to conduct an assurance research, interviews with relevant this assignment, and comprised auditors independent assurance of the Sustainability employees located at offices in Leicestershire and registered with Institute of Environmental Report 2009. The scope of the assurance, based operating sites in Leicestershire (2 sites), Management and Assessment (IEMA), on the SGS Sustainability Report Assurance Derbyshire (1 site), Cambridgeshire (1 site); International Register of Certificated Auditors methodology, included the text, and 2009 data in documentation and record review and validation (IRCA), EMAS verifier and Assurance Practitioner accompanying tables, contained in this report. with external bodies and/or stakeholders where registered with IRCA under their CSAP scheme. relevant, including a review of stakeholder The information in the Sustainability Report 2009 engagement process undertaken by The Assurance opinion of Aggregate Industries Ltd and its presentation Environment Council. Financial data drawn directly On the basis of the methodology described and are the responsibility of the directors and the from independently audited financial accounts has the verification work performed, we are satisfied management of Aggregate Industries Ltd. SGS not been checked back to source as part of this that the information and data contained within the United Kingdom Ltd has not been involved in the assurance process. 2009 Sustainability Report verified is reliable and preparation of any of the material included in the provides a fair and balanced representation of Sustainability Report 2009. Statement of independence and Aggregate Industries Ltd sustainability activities competence in 2009. Our responsibility is to express an opinion on the The SGS Group of companies is the world leader text, data, graphs and statements within the in inspection, testing and verification, operating in The assurance team is of the opinion that the scope of verification set out above with the more than 140 countries and providing services Report can be used by the Reporting intention to inform all Aggregate Industries Ltd’s including management systems and service Organisation’s Stakeholders. We believe that the stakeholders. certification; quality, environmental, social and organisation has chosen an appropriate level of assurance for this stage in their reporting.

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GLOBAL REPORTING INITIATIVE Timeliness – Although the report has been Indicators REPORTING GUIDELINES (2006) published earlier in the year than in the previous We are satisfied that this report includes all core CONCLUSIONS, FINDINGS AND reporting cycle there is scope to publish closer to indicators as required for GRI Application level A+ RECOMMENDATIONS the end of the relevant reporting cycle and thereby and also includes information on most of the have more time to implement improvements in the In our opinion, the Aggregate Industries Ltd additional indicators. following reporting cycle. Sustainability Report 2009 meets the content and quality requirements of the Global Reporting Signed: Reliability – Improvements have been made to Initiative G3 Version 3.0 Application Level A+. For and on behalf of SGS United Kingdom Ltd address issues raised previously enabling much better tracking of data integrity at site level, GRI Principles however the impact of personnel changes on the We are satisfied that the GRI Principles have been reliability of reported information has not always adhered to in the development of the report and been considered leading to gaps in data reporting. have summarised below the areas which should be considered for improvement in future Standard Disclosures reporting cycles. We are satisfied that the standard disclosures Jim Weaver Sustainability Context – The report would benefit required by GRI have been reported upon and UK Systems and Services Certification from improved communication of the magnitude of have made recommendations for improvements of Business Manager its impact and contribution. future reporting by inclusion of increased detail in June 2010 some areas, namely the description of key www.sgs.com Comparability – The report could be supported by impacts, risks and opportunities would be an overall summary table of performance in improved by better defined goals and targets in key areas. relation to economic and social aspects. This could be supported by improved reporting of the Accuracy – Improvements have been made to management approach for these aspects. simplify some data reporting and implement data Reporting on goals and targets in relation to integrity checks but this will only be fully environmental aspects was noted to be much implemented in the next reporting cycle. better established. Aggregate Industries UK Ltd Bardon Hall, Copt Oak Road, Markfield, Leicestershire, LE67 9PJ Tel: +44 (0)1530 816600 Fax: +44 (0)1530 816666 www.aggregate.com

© Aggregate Industries | Sustainability Report 2009 A member of the Holcim Group AIBRO-CSR1