from to resource

FCC Environment Corporate Social Responsibility Report 2015 Contents Introduction Doing the right thing 04 Foreword 33 Integrated Management System 06 What we do 34 Contributing to communities 08 Who we are Forward thinking Highlights and challenges 39 Introduction 16 11 Contract wins and renewals 41 Industry opinion 08 People focus 13 Infrastructure investments Who we are Appendix People focus 42 Appendix 1: 17 Health and safety methods 20 Equality and diversity 43 Appendix 2: 22 Competence Carbon emissions Management System 23 ABCD Awards

Environmental commitment 25 Regulatory compliance 26 Reducing our energy use 32 28 Land restoration Doing the 30 Energy crops right thing

04 06 Foreword from What we do 10 24 Paul Taylor Highlights Environmental and challenges commitment

38 Forward thinking

2 — 3 FCC Corporate Social Responsibility Report Foreword Paul Taylor As one of the UK’s largest waste management Chief Executive Officer and businesses, our corporate social FCC Environment responsibility is a meaningful gauge of FCC Environment’s sustainability.

Over the last five years we have Will demand curtail, or will increased We look ahead to the future with transformed our safety culture, recycling to meet the demands of the enthusiasm, despite the uncertainties improved our standards of working, Circular Economy Package mean our we face: not least the British £20m made strategic investments in European neighbours need more fuel referendum on EU membership; infrastructure, supported local to keep their lights on? the possible adoption of the We are planting communities, developed new revenue Circular Economy package; and energy crops to turn In the meantime, we continue to look streams and significantly reduced its undetermined impacts on the our closed into ahead and provide leadership in the the environmental impacts of our marketplace. sector. We have a number of energy abundant sources of activities. from waste facilities in the pipeline With these factors compounding the renewable fuel, and in All of this reflects how our core in Buckinghamshire, Worcestershire effects of austerity, the coming years 2015 alone contributed values are driving change within our and an expansion at our Eastcroft will demand a solid and sustainable more than £20 million organisation, and it is rewarding to be plant in Nottingham, as well as a new business model. Corporate social part of a workforce that acts sincerely combined heat and power project responsibility is a good place to start. to local communities. on these values. in Edinburgh and Midlothian. We are So for now, let’s reflect on our planting energy crops to turn our Our successes have, in some cases, progress over recent years and closed landfills into abundant sources been in spite of a challenging continue to set the bar ever higher. of renewable fuel, and in 2015 alone economic and political backdrop, contributed more than £20 million to with commodity price volatility and local communities. light touch legislation leading to a lack of confidence in the market. Re-use continues to play a vital role The resulting shortage of inward in reducing waste and benefitting investment, certainty and direction, society. We have added to our re-use means we are likely to encounter more portfolio with new ventures in Hull challenges on the road ahead. and Ipswich, and are planning even more in 2016. Our pioneering work The debate about the adequacy of the in this area has been recognised with UK’s waste processing infrastructure a National Recycling Award, along capacity has become further with charity partner Abacus and HMP complicated by questions around Rochester. the export of refuse derived fuel.

4 — 5 FCC Corporate Social Responsibility Report Business waste solutions Green energy FCC What we do Business waste solutions We continue to invest in Environment FCC Environment is offers services for our and expand our range of — 2,449 business and industrial treatment technologies The business one of the leading customers to help them to recover as much clean in numbers FCC Environment employs 2,449 people waste management save money, waste less and energy as possible from across England, recycle more waste material Scotland and Wales at and recycling — — more than 200 sites businesses in Britain. Municipal services Waste processing Municipal services helps We process all our We reclaim the value in household and business waste local authorities serve their customers’ waste, including communities with long- chemical and hazardous 6000 through recycling, waste processing and green energy programmes. Our activities contribute to the UK’s resource and short-term contracts for waste, in a safe, secure and collecting, recycling and sustainable way avoiding We manage waste and energy security, and reduce the climate change for more than 6,000 impacts of managing waste. treating household waste where possible business customers We drive behavioural and technological change, helping — and 60 local society reduce waste and manage resources sustainably. Appendix 1 (see page 42) shows how authorities we are recovering more and more Recycling value from waste. Our recycling and composting technology extracts the maximum value from the waste we collect, 8.3m with the minimum effort In 2015 we managed 8,311,639 tonnes of waste for our customers

6 — 7 FCC Corporate Social Responsibility Report Our values — Delivering clarity and Who we are direction Our business values give clarity and direction to our strategic priorities and everyday working practices. Operating according to these values enables us to deliver on our corporate social responsibility commitments, maintaining high standards for our workforce, our customers, and the communities we work with.

Safety, Health, Environmental and People Environmental Doing the Forward Quality Policy Statement 2016 focus commitment right thing thinking Our corporate social responsibility Valuing and investing in Our focus on managing Delivering high quality We look ahead, prepare activities are underpinned by our Safety, the people who work for us resources sustainably services is the foundation for change, challenge the Health, Environmental and Quality Policy is vital if we are to provide means it is important that of a secure and successful status quo, and provide Statement 2016, approved by FCC’s Board our customers with the we lead by example with future, and we pursue leadership to drive a more of Directors. To view the policy in full best possible service activities that conserve and continual improvement resource-efficient future please visit www.fccenvironment.co.uk protect the environment in everything we do

8 — 9 FCC Corporate Social Responsibility Report Other new Contract wins and renewals contracts Highlights and investments Hull and East Riding South Ribble of Yorkshire Our new contract with South Ribble Suffolk County Council We have celebrated some Our new 10 year contracts Borough Council commenced in June Transfer station and haulage of residual waste commenced in April 2015, seeing 2015. During the seven year contract major successes in 2015, from investment in excess of £4.5m and we will help the Council save £4.2m. — the redevelopment of our Wilmington Meanwhile, the Council has pledged Luton Borough Council contract and award wins to waste transfer facilities. We are now to invest £1.5m in next year’s budget Integrated waste responsible for the management of for five new wagons, creating a fleet management service the opening of new re-use extension 13 household waste recycling centres of more environmentally friendly and waste processing centres and the onward treatment of domestic vehicles. — waste from East Ridings Council. Thurrock Council Treatment and disposal Oxfordshire — Falkirk Two waste transfer stations, at Conwy In May 2015, we launched a new seven Sutton Courtenay and Dix Pit are treatment year kerbside contract, collecting now operational, handling around the contents of residents’ recycling 45,000 tonnes of Oxfordshire County — boxes, textile sacks and food waste Council’s residual waste per year. Buckinghamshire containers. We have developed a new The 25 year contract will see the sites County Council depot to house the collection fleet at bulk up municipal waste for onward Biowaste Bonnybridge, with Falkirk Collections transport to an energy recovery — and Transport Manager Willie facility. Oxfordshire County Council North Yorkshire Patterson and his team transferred formally sent its thanks to FCC County Council from their previous location at Environment’s team for how smoothly Disposal and asbestos . the change to the new contract was disposal managed, in recognition of the on-site — Torfaen team’s hard work. Rushmoor Borough Council Our new contract with Torfaen Glass recycling County Borough Council includes the — operation and management of a new Norfolk County Council household waste recycling centre and Interim treatment, waste transfer station at Panteg Way, transfer and haulage New Inn, Pontypool. The seven year — contract commenced on 1 April and will see us help the Council to achieve Carlisle Council Collection of recyclables its ambitious recycling rates. During the first year of the contract a 75% — target has been set, increasing to Merseyside Recycling 80% in years two to four and 85% in and Waste Authority year five. Interim treatment

10 — 11 FCC Corporate Social Responsibility Report Highlights and investments

National Recycling Award Successes Infrastructure investments In 2015, FCC Environment’s In July 2015 our bike re-use scheme Service Recycler of the Year for with HMP Rochester and Abacus HMP and Young Offenders Institute re-use shops NEW NEW Furniture Project won a prestigious Rochester, and Best Energy from raised £484,227 National Recycling Award for Waste Initiative for FCC Environment’s for charity Best Partnership Project. Our bike Lincolnshire Energy from Waste Facility. Re-use shop Re-use shop restoration and reuse scheme not only These accomplishments are testament East Riding Ipswich sees bikes that would otherwise go to to our commitment to our core values: landfill brought back to life, but helps In July 2015, we opened a new re-use A new charity partnership between • Environmental commitment 2015 total prisoners gain new skills and improve shop in the East Riding of Yorkshire FCC Environment and The Benjamin their chances of gaining employment • People focus following a £400,000 investment. Foundation has resulted in the upon their release. • Doing the right thing Working with the local Hull City launch of another re-use shop £484k Council and East Riding of Yorkshire in Ipswich, Suffolk. FCC staff Alongside this success, we were also • Forward thinking Council, FCC is running the re-use salvage re-usable items from the 11 selected as Finalists for two other July 2015 shop which sells products that have Household Waste Recycling Centres National Recycling Awards: Public — been rescued from our recycling it runs in Suffolk. Local residents National centres across the region. are also invited to donate items Recycling they no longer want for resale. Award The shop is the first to be run entirely by FCC Environment in support of The goods are sold from the shop, local charities. run by The Benjamin Foundation, and the resulting profits will be used to support the charity’s work with families, children and the homeless.

“We’re delighted to have entered into this partnership with Suffolk County Council and The Benjamin Foundation. Our re-use stores have proven incredibly popular across the country and are providing residents with bargains as well as preventing items which are re-usable from being discarded.”

Steve Longdon South Region Director

12 — 13 FCC Corporate Social Responsibility Report Highlights and investments

Infrastructure investments Continued »

Greatmoor Energy from Waste Facility Millerhill Combined Heat and Power Facility Buckinghamshire 300,000 tonnes Midlothian 195,000 tonnes 300k of residual waste 195k of residual waste Greatmoor EfW will become fully operational in spring 2016 and will per year In September 2015, FCC Environment was granted planning per year treat up to 300,000 tonnes of residual waste per year. The facility permission for the Millerhill Recycling and Energy Recovery will generate 22MW of electricity, equivalent to the energy required Centre, which will treat mixed waste derived from City of to power 36,000 homes (the total population of Aylesbury and Edinburgh and Midlothian councils and commercial clients. Buckingham combined). Greatmoor EfW will receive waste via FCC The 195,000 tonnes per year facility will be constructed and Environment’s new waste transfer station at High Heavens. The facility will The facility will 22MW generate 22MW operated by FCC Environment under a 25 year contract. It 11MW generate 11MW FCC Group Development Director, Richard Belfield, said: “The of electricity will generate approximately 11MW of electricity, which will be of electricity construction of Greatmoor EfW marks an important step forward for exported to the National Grid – enough to meet the needs of FCC Environment as the business continues to develop, focusing on approximately 26,000 homes. In addition, the facility could its customers’ requirements for extracting value, in the form of energy, produce up to 20MW of heat, which is enough to meet the from the waste left over after recycling has taken place. Greatmoor average heating needs of approximately 10,000 homes. EfW represents an integrated service that the county can be proud of.” Enough energy Enough energy The Centre will mechanically extract recyclables from mixed to power to power The facility also recently achieved a big milestone – the completion of 36k waste and produce solid recovered fuel to be treated in the 26k 36,000 homes 26,000 homes more than 1 million working hours without a Lost Time accident during energy and heat recovery phase. its construction. Paul Stokes, Head of Safety, Health, Environment and Quality (SHEQ) at FCC, said: “This is a significant achievement and testament to the commitment of all involved to deliver a safe working environment. I am extremely proud of what has been achieved at Greatmoor EfW.”

EnviRecover Energy from Waste Facility Eastcroft Energy from Waste Facility Worcestershire and Herefordshire 200,000 tonnes Nottingham Permission has been 200k of residual waste 140k granted to almost With some 300 people working on site, construction of per year Following a lengthy application process through 2015, FCC double capacity EnviRecover, the 200,000 tonnes per year residual waste Environment has been awarded permission to almost double the treatment plant is making great progress. Construction capacity of the 170,000 tonnes per year Eastcroft energy from commenced in May 2014 and handover is due to take place in waste plant in Nottingham. the spring of 2017. The first waste to be delivered into the plant The expansion will provide an additional 140,000 tonnes of as part of commissioning trials will be in the autumn of 2016. The facility will The expansion will 16MW generate 16MW throughput via a third boiler line, exporting around 10MW electricity 10MW generate 10MW Once operational, the facility will generate 16MW power for the of electricity to the grid. The Combined Heat and Power facility also recovers of electricity National Grid and employ around 50 people. hot water and steam for the Nottingham district heating scheme, contributing to space heating and power supply in the city.

14 — 15 FCC Corporate Social Responsibility Report Health and safety Wearable tech helps keep The health and safety of our colleagues is absolutely paramount and always everyone safe People focus will be. Following successful trials “We needed a system that Making FCC Environment a safe, Our three-year campaign “Don’t at the Bletchley site near would work from the front, gamble with your health and safety” Milton Keynes, the new rear and sides of mobile motivating and enjoyable place has been successful in reducing SiteZone Proximity Warning plant. CCTV reversing to work is essential to running a workplace accidents and injuries and System is being rolled out cameras are effective but improving the health and safety culture. across the business. their peripheral range is limited, so SiteZone’s sustainable business. Our people In 2015 we implemented: On sites where mobile plant 360-degree field of vision is operate, vehicles entering are central to everything we do. • Safeguard Incident Reporting a real advantage. System to encourage proactive the site are issued with a and timely reporting Site Zone limiter, while those “We want to make all of our working on foot are provided sites as safe as possible, so • Proximity Warning System to with a small transponder that at the end of every day, enhance site safety to wear on their hardhat or we can all go home to our • Director Incident Review sleeve which vibrates if they families. It’s that simple.” Panels and Director Health and enter the danger zone of a “Paul Stokes Safety Meetings vehicle. Head of Safety Health and • Behavioural Safety Programme pilots The system has also been Environment and Quality developed to make vehicles stop automatically if someone on foot enters the danger zone – this dramatically reduces the Be prepared! risk of human error. Always wear your proximity warning tag, every time.

Successful campaign Our three-year campaign “Don’t gamble with your health and safety” has been successful in reducing workplace accidents and injuries

16 — 17 FCC Corporate Social Responsibility Report People focus

Safety: Let’s keep it going FCC IMS Audit RIDDOR Continual League Table improvement The “Don’t Gamble With Your Health Site Supervisors and Managers to The Reporting of Injuries, Diseases and Dangerous Occurrences The famous FCC Regulations 2013 require us to keep a record of the number of “Reportable in health and and Safety” campaign encouraged pinpoint key health and safety issues IMS Audit League Accidents” in the workplace, for example a broken bone or an accident everyone to follow safe working to eliminate accidents. Table scores sites’ safety procedures, every day. Keen to performance and resulting in more than seven days off work. From this, we can calculate our Our plan is to spend 2016 engaging In order to maintain our maintain this momentum and safety positions them in “Incidence Rate”, which takes into account the size of our workforce and with our workforce to produce the positive progress in the culture, towards the end of 2015 the Premiership, enables us to benchmark our performance against others. next three year plan, designed by our health and safety of our we launched a new campaign, Championship and employees. We will review the success workforce, in 2016 we will “Safety: Let’s Keep It Going.” League 3. of that strategy in 2020, by which time deliver: We are now embarking on regional we hope to have a health and safety Reaching the top of the Premiership, • Regional & Divisional and divisional roadshows to record equivalent to 20/20 vision. of course, should be % Health and Safety canvass for grassroots ideas. We everyone’s goal. 72 Roadshows are asking Safety Representatives, Accident rates have been • A new 3 year Health cut by 72% since 2010 and Safety Plan • Leading Safety by Example Part 2 Achievements FCC Environment UK • IOSH Managing Safely HSE (RIDDOR) Reportable Accidents 2010 — 2015 (Enhanced) for Area Managers 46 39 • Safety – Let’s Keep It 35 32 Going campaign 27 28 24 25 • Additional Behavioural % 18 16 13 863 13 Safety Programmes • Further improvements

At the end of Q4 2015 our Lost Time During 2015 we lost 863 calendar 2010 2011 2012 2013 2014 2015 to Safeguard Incident Accident Frequency Rate stood at days to injury at work, against a Reporting System 8.08, a 13% improvement on last target of no more than 1,174 days. ■ Riddor’s YTD Actual ■ Riddor’s YTD Target ..... Log (Riddor’s YTD Actual) year (exceeding our 10% year-on- This was 26% ahead of target and year improvement target) a 34% improvement on last year FCC Environment UK HSE (RIDDOR) Incidence Rate 2010 — 2015

2081 % 1765 1589 1430 61 2015 1287 1148 1065 1037 Over the last 5 years, FCC We set ourselves the objective for 723 650 Environment has achieved a 61% 2015 of achieving zero overdue 560 reduction in Lost Time Accidents, major non-conformance reports, and a 63% reduction in our Lost which we achieved in the final 0 Time Accident Frequency Rate two months of the year 2010 2011 2012 2013 2014 2015

■ Riddor’s Incidence Rate Actual ■ Riddor Incident Rate Target ..... Log (Riddor’s Incident Rate Actual)

18 — 19 FCC Corporate Social Responsibility Report People focus

Equality and diversity Energy and Efficiency Industrial Partnership Greatmoor careers open day

2015 workforce demographics FCC Environment is an In October 2015 we held an “People who came along active member of the open day at our Greatmoor to the open day had the FCC Environment employs 2,449 people across England, Scotland Energy from waste (EfW) chance to see first-hand and Wales at more than 200 different sites. Energy and Efficiency facility for students and how an Energy from Waste Industrial Partnership. young professionals plant works and gained an This large and diverse workforce is the foundation on which the interested in job opportunities insight into how to enter success of the company is built. Our workforce encompasses a Developed by employers Gender in the waste, energy and three industries that offer broad range of occupations from the manual roles in our recycling and supported by ■ 86.82% male construction industries. a wide range of career facilities to contract management and ecological protection. ■ 13.18% female the Government, the The open day included a opportunities. We work hard to make sure the company is a great place to work. Partnership drives guided tour of the site, as Our human resources team runs proactive absence management improvements to well as an exhibition featuring “The Greatmoor EfW uses some of the most programmes, and at 1.95% our employee sickness and absence rate recruitment, skills and a number of companies is less than the national average. During 2015 our staff turnover rate involved in its construction. advanced energy was 16.9% (17.6% including TUPE transfers). workforce development. conversion technology It means that employers in the world, playing its Training and development remains a priority within our can set the skills part in developing the organisation, and in 2015 we delivered 931 training courses across UK’s Energy from Waste the business and implemented a wide range of initiatives to attract agenda and develop infrastructure and providing and retain talent, enhance employee motivation and develop a new approaches to Buckinghamshire residents sense of employee belonging. training, monitoring and with jobs as well as power.” Disability compliance. “Gillian Sinclair ■ 3.01% registered disabled Project Director October 2015 — Greatmoor open day

Ethnicity Our 200 facilities ■ White European 86.05% All our 200 facilities ■ Not specified 11.4% across the UK are ■ Asian 1.03% operated to ISO ■ Black 0.79% 50001 environmental standards. ■ Other 0.68%

20 — 21 FCC Corporate Social Responsibility Report People focus

2015 — First Long Competence Valuing Service Management System our people 2015 winners Awards

In January 2015, FCC Environment launched a new (ABCD awards) Competence Management System (CMS). The new CMS provides an additional approved route to demonstrate Following a review and People focus Doing the right thing In 2015 we announced competence. Where the Certificate of Technical Competence consideration of employee the introduction of a Long Emma Perkins and Nigel Wellsbury, (CoTC) recognises the competence of the individual, the feedback, we have redesigned Paula Axtell, Calvert: Service Award scheme to Thorney Mill Yard and CMS recognises the competence of the company as a whole. our ABCD (Above and Beyond High standard of support to the business, recognising West Drayton Plan: the Call of Duty) Awards, making colleagues, site inspectors and rewarding the Energy and Utility Skills prepared a private standard with Solutions, action and the nomination process simpler and senior managers contribution made by which the CMS must comply. The specifications enable FCC management of the projects Environment to demonstrate the technical competence and motivating employees to Wayne Downham and our loyal workforce. required to satisfy regulatory requirements and comply with want to win. The awards are now Jodie Mugridge, Collections: Ruben Martin and Andy Driver, The awards are granted environmental permits. presented every three months, Working well together and Harborough: following landmark with new categories that reflect supporting other crews Tackled a fire whilst waiting for achievements at 25, The first stage of the CMS commenced in January 2015. our own brand values. the Emergency Services, ensuring 35 and 45 years of Teams of line managers and specialists assessed Operational Dan Pepper, Bury St it didn’t reach the surrounding continuous service. Managers at a number of our waste management facilities, Edmunds HWRC: bushes and local homes In 2015, the long service producing Competence Records with which managers can People focus Mentoring new recruits with now demonstrate their skills. learning difficulties Robert Harris, Sutton awards went to 18 Valuing our people, Courtenay landfill: people for 25 years’ We ran a series of Internal Assessor courses through 2015, recognising great work, Team leadership, improving welfare, service, 5 people for and will complete the Operational Managers’ assessments in motivating each other almost eliminating customer 35 years’ service and 3 Q1 of 2016. Once complete, we will be externally audited by and enjoying what we do complaints, and scoring 99.6% of our longest-serving BSi, and use the experience gained and lessons learned to with an IMS audit. employees at 45 years’ prepare for the introduction of Stage 2. Environmental continuous service. Environmental commitment The second stage is scheduled to commence in Q3 2016, and commitment Embracing change and “I am delighted to be will see the assessment of supervisors by their line managers Craig Steel, Gordon Appleby preparing for the future able to recognise the and subject matter experts to determine their competence and Mark Pailing, Greengairs: achievements and long against set criteria as defined in their Competence Records. Making remarkable improvements Forward thinking term commitment made in the SEPA performance rating Peter Sanderson, Alfreton MRF: The CMS has been received exceptionally well; the by these dedicated Doing the right thing Improving plant performance assessments carried out by line managers and subject matter Securing our future by Stephen Tilley and Zsusy Kovacs, colleagues. In the modern experts has been robust and has highlighted skills gaps of being customer-focused Welland Park, Harborough: Sarah Riley and colleagues, workforce, it is rare to managers which in turn have created learning opportunities. and delivering quality Efforts and socially responsible Wilmington Transfer Station: find such long service It has been a magnificent effort by all concerned. services work tending to the park Refurbishment project within a job. To have so many says a lot about the Anthony Porter and Andy Kirk, Garry Smith and the Operations camaraderie within our North Hykenham closed landfill: Team, Wrexham PFI Phase II teams.” Forward thinking Proactively designing an engineering Mechanical Biological Treatment: Being environmentally solution with long-term sustainability Improving plant performance Paul Taylor and socially responsible Chief Executive Officer FCC Environment

22 — 23 FCC Corporate Social Responsibility Report Regulatory compliance

We work closely with the Environment Agency and other regulatory bodies, ensuring we Environmental commitment comply with all relevant environmental and waste management legislation.

Our stewardship extends Key Performance Indicators 2011 2012 2013 2014 2015 beyond collecting and CCS Scores 2421 1849 2615 2164 1970 processing materials, Average number of breaches per environmental permit 6 4 5 5 5 bringing additional benefits Leachate compliance 63.1% 65.2% 69% 69.2% 70.4% to the environment and compliance 92% 90% 90% 92% 95.5% local communities. Complaints by stakeholders - 991 497 683 383 Enforcement notices (EA/SEPA/NRW) 6 2 0 2 1

Prosecutions (EA/SEPA/NRW) 1 1 0 0 0

Fines for offences (EA/SEPA/NRW) £20,000 £10,500 0 0 0

Sites in OPRA band D, E, F - - 34 32 30

How have we done this year? Environment objective 2016 • Achieved our corporate target to enforcement notice at Fiskerton 5% reduction reduce permit breach notifications which was complied with by 10% in permit • Continued our National • Further reduced OPRA band Environment Improvement Plan breaches from D, E and F sites (now 30) and with the Environment Agency the previous improved performance for leachate • Developed and delivered training in year’s target compliance and reduction in legacy monitoring and permit compliance • Increased landfill gas compliance across the business to 95.5% • Prepared courses on energy • Made significant reductions in management and environmental the number of notifications at our awareness to be rolled out in 2016 Allington EfW facility in Kent • Achieved ISO 50001 and ESOS • Received no prosecutions or fines compliant status for offences for the third year running, although there was one

24 — 25 FCC Corporate Social Responsibility Report Environmental commitment

Reducing our energy use How have we done this year? Scope 1 • We have reduced our Scope 1 • A major factor in the reduction — The new Energy Savings Opportunity We are now certified to ISO 50001 which landfill emissions by diverting waste of our Scope 2 emissions has Landfill Scheme (ESOS) led us to revise our approach will ensure long-term ESOS compliance. away from landfill. Landfill capping been due to the outstanding to carbon and energy management. and restoration projects continue to performance of our Allington emissions As part of our Energy Management increase as landfills are closed facility in 2015 reduced In order to comply with ESOS, we decided to System certification process to ISO move from the Carbon Trust Standard which 50001 we developed a policy for more • We have reduced our Scope 2 • Our target under the Carbon Trust focuses on carbon emissions, to the ISO efficient use of energy, with fixed targets emissions by 14% since 2014, due Standard was a 2% reduction in 50001 energy management standard. The and objectives to meet the policy. Our to significant efforts made across carbon emissions from the previous deadline for ESOS compliance was December data collection means we can better the business to drive down our year’s target, which we exceeded Scope 2 2015, so while we were busy implementing understand and make decisions about energy use in 2015 — ISO 50001 we invited external advisors to our energy use, and make continual • The reduction in Scope 2 emissions • We were proud to be one of the carry out the ESOS audits for us, ensuring improvements in this important area. Emissions is particularly notable considering first organisations to be audited by ESOS compliance by the deadline date. reduced our move into a more energy the Environment Agency on by 14% intensive waste processing ESOS compliance – passing with since 2014 environment (materials recovery flying colours and recycling)

Environment Tonnes C02 equivalent Agency — Scope 1 2014 2015 ESOS Landfill emissions 3,341,338 3,168,657 compliance pass Energy from Waste 383,840 414,311

Fuel use 54,480 50,188 Environment objective 2016 Scope 2 2014 2015 1% overall reduction in energy usage per tonne Electricity 15,191 13,103 of waste processed within FCC. Scope 3 2014 2015 This objective uses a new metric (kW/tonne waste Fuel 14,896 13,448 processed) in order to normalise the data. This metric is affected by our move away from landfill Gross Carbon Footprint 3,809,745 3,659,707 towards energy intensive waste recycling and processing technologies, which may increase our Biogenic Out of Scope Emissions 1,838,582 1,759,347 energy demand. The challenge is to do this as Net Carbon Footprint 1,971,163 1,900,360 energy efficiently as possible.

Appendix 2 (see page 43) provides our emissions data according to the GHG protocol approach.

26 — 27 FCC Corporate Social Responsibility Report Environmental commitment

Restoration projects Greengairs beauty spot The majority of soils used for land Land restoration restoration are waste products from the Opened in 1990, Greengairs Landfill is construction and quarrying industries. During 2015, FCC Environment restored based in the central belt of Scotland We also recycle inert from the over 48 hectares of land for a wide range in between Glasgow and Edinburgh. construction and demolition sector to Skelbrooke Landfill of end uses: It enjoys views of Cumbernauld and the produce soils and hardcore suitable for Recycling of 50,000t of soil to produce topsoil for the maintaining roads and building footpaths, • Woodland for nature conservation Campsie Fells which contrast with the site restoration enabling its return to agriculture. The soils further reducing the need recycling project also generated 10,000t of re-usable • Commercial energy crop production twinkling lights of Glasgow city at night. for raw materials. aggregates to replaced quarried stone • Wildflower meadows We have re-established a natural We use several thousand tonnes a year of — • Grazing or other agricultural land ecosystem on the once barren coal site, green waste as soil conditioner. In 2015 we ran successful trials using soil Thurcroft Landfill • Parkland for public open space with natural peat moss populated with conditioner derived from the separation Import of 500t of recycled waste clays to create pond including tree planting, grassed areas heather, wildflowers and rushes. The site and composting of municipal waste and liners in the newly constructed mitigation ponds for and footpaths supports an array of wildlife from wild we are now extending the programme translocated great crested newts. Water from an adjacent • Wetland restoration, ponds, lagoons hares, deer and foxes to peregrine falcons across the group. quarry lagoon was also imported to infill the ponds as it and streams and red kites. Swans, Canada geese and With the approval of the Environment was required to be certified prior to use Restoration schemes are designed to mallard ducks also make seasonal visits. Agency, we are also now using different — provide a landscape in sympathy with Greengairs’ diverse insect population recycled materials in our land restoration surrounding areas, whether for nature projects. These include and clean Bootham Lane Landfill conservation or public use, or to grow includes dragon flies and an array of water sludges for soil conditioning and Import of 30,000t of a mixture of recycled soils, waste sustainable energy crops. butterflies which seem to like the ambient cement kiln dust for neutralising acid water treatment sludges and compost in support of heat and salt from the leachate treatment soils. We will use these on our biomass restoration of the site to biomass planting Most landfill restoration schemes are crop land bank to create better soil designed to reflect and attract local facility on site. structure and improve yields. — biodiversity while functioning as both sustainable landscapes and Welbeck Landfill Import of 80,000t of a mixture of recycled soils, water an environmental control on the Planting and fencing landfill itself. clarification sludges and green waste in Replanting sites is an important part of support of returning the site to woodland and public Our large team of professional Greengairs the land restoration process, and our soil open space ecologists are skilled in habitat creation, — improvement strategies have successfully management and mitigation, landscape A natural improved soil fertility without the use of — management and aftercare. As landfill ecosystem fertilisers. This in turn reduces the amount restoration schemes closely integrate Greengairs Landfill restored of grass seed needed. with their surroundings the impact on Import of 20,000t of peat and soils to assist in the biodiversity can be very positive, with the Where possible we use locally produced restoration of the site to heathland and woodland occurrence of protected species or local or harvested seed from adjacent or — Biodiversity Action Plan target species nearby land, allowing the matching of in restored areas. We also engage the species and soil types while removing the Oatslie Landfill support and expertise of local groups need for commercially grown seed. The Import of over 100,000t of soils to complete restoration (Butterfly Conservation at Greatmoor, majority of grass seed, trees and shrubs works and return the site to agriculture for example), statutory bodies (e.g. we do purchase is from sustainable UK Natural Resources Wales), site managers provenance stock, which ensures its and restoration managers. quality and disease resistance.

28 — 29 FCC Corporate Social Responsibility Report Environmental commitment

Sustainable biomass — 13 sites Energy crops harvested + in 2015 Over the last few years, we have been eastern and southern England. planting energy crops (Willow coppice We are now in discussions with buyers 200 and Miscanthus grasses) on closed following the successful harvest landfill sites. In addition to supporting of over 200 tonnes of biomass We are now in leachate treatment, the sale of which is expected to steadily rise discussions with buyers these crops helps offset the costs over the coming years to around following the successful harvest of over 200 associated with the long-term upkeep 2,000 tonnes of saleable product. tonnes of biomass of otherwise unproductive land. Although government support for We are now planting new sites with the planting of energy crops has cuttings from coppiced Willow been removed we are continuing plants on our existing sites, and have with our long-term commitment established a number of temporary to produce sustainable biomass plantations to act as nurseries for on our sites, planting an additional 350 Miscanthus, harvesting the seed for 7 sites this year. We harvested An additional 50 use in the planting of new areas. 13 sites in 2015 and intend to hectares were planted increase this to 16 during 2016. An additional 50 hectares were during 2015, taking planted during 2015, taking the total the total estate to 350 hectares spread across estate to 350 hectares spread across eastern and southern England

“In 2016 we will concentrate on consolidating our existing crops to maximise yields as well as reviewing the most viable end use of the biomass product whether it be fuel in the form of biomass pellets, straw, or the lucrative animal bedding market. There are opportunities for further planting and this will likely be rolled out once a market has been secured.”

Paul Brightwell Restoration Manager North

30 — 31 FCC Corporate Social Responsibility Report Integrated Management System

Our Integrated Management System (IMS) is certified to ISO 14001, ISO 9001 and BS OHSAS 18001, and from 2015 also to the energy Doing the right thing management standard ISO 50001. All of our certifications are externally FCC Environment is building a successful audited by The British Standards Institution. and secure future by being customer Number of sites certified focused and delivering quality services. 2011 2012 2013 2014 2015

We also support improvement schemes Environmental management systems standard ISO 14001 170 170 139 176 136* in the communities in which we work Quality management systems standard ISO 9001 27 27 18 55 43* through the Landfill Communities Fund. Health and safety management systems standard BS OHSAS 18001 26 26 19 45 37* Energy management systems standard ISO 50001 187

*These numbers have decreased due to site closures

How have we done this year? % • Gained accreditation to ISO 50001 Group departments, Engineering, 100 Energy Management Standard, Procurement, Training and following internal audits and BSI Commercial Management and 100% of sites certified external audits Lillyhall Landfill to ISO 50001 • Added 11 sites to our ISO 14001 • During 2015 the Buckinghamshire Environmental Management HWRC contract, Staffordshire System contract and Suffolk contract were % added to the scope of registration 73 • Added 4 new sites to our for our Quality Management system BS OHSAS 18001 Health and 73% of operational Safety Management System • During 2015 the system was activities certified further developed with simplified • Added 4 new sites to our ISO 9001 to ISO 14001 procedures and a further Quality Management System rationalisation of documents, • The percentage of operational and the internal audit scope activities certified to ISO 9001 was expanded to include legal % during 2015 was 40%, and compliance to the relevant 95 includes: Municipal collections, legislation that affects FCC In 2015 we achieved our Quarries, Allington EfW and operations target of a minimum score of 95% for our Integrated Management System Internal Audit

32 — 33 FCC Corporate Social Responsibility Report Doing the right thing

New funding — £20m donated via WREN Chapterhouse Certified Success Contributing Our Materials Recycling Facility at to communities Chapterhouse Close in Ellesmere Port was recommended for In addition to the money raised for Further major awards were made to The restoration of saltmarsh is charity through our network of re-use the National Army Museum towards important for wildlife, as well as sea several certifications by the shops, FCC Environment’s involvement building renovation and exhibition defences, helping reduce the risk of British Standards Institution in in the Landfill Communities Fund areas and to the Design Museum, flooding to over 100 neighbouring 2015: Quality Management continued to deliver lasting benefits to fund access and exhibition space properties and farmland. to communities and the environment as part of the works to transform the System (ISO 9001), Environmental The FCC Biodiversity Action Fund, throughout 2015. old Commonwealth Institute into their now in its 7th year, continued to Management System (ISO 14001), new home. Health and Safety Management In 2015 a total of 340 projects received fund projects which help restore and funding of over £20m. As part of WREN’s ongoing support improve priority habitats across the System (OHSAS 18001) and was of UK biodiversity over £3.6m was UK. Habitats as diverse as upland bog, By voluntarily taking part in the Landfill one of the sites audited for Energy awarded to 14 projects to help field margins, lowland meadows and Communities Fund, FCC Environment conservation charities purchase land sand dunes will all benefit along with Management System (ISO 50001). can divert a proportion of the tax to safeguard and restore some of the the hundreds of species which make collected on each tonne of waste Opened in October 2014, the UK’s most precious habitats. these habitats their home. deposited in landfills to WREN, an team worked hard to implement independent not-for-profit funding Of this, £900,000 was used by the Funding of over £2.79m was shared relevant policies and procedures organisation which, in turn uses the RSPB to complete the purchase of by 16 projects working on 85 sites from the FCC Environment IMS and money to fund important projects land at Hesketh Out Marsh East in encompassing more than 2,500ha work to them. All four standards within 10 miles of a landfill site. Lancashire. The purchase of this land, of land. Over 800,000 people visit along with the previous tranche also these sites annually and more than WREN continued to fund the National Memorial were audited with no non- funded by WREN, allows the RSPB 300 volunteers and training development of the National Memorial Arboretum compliances found, meaning the and the Environment Agency to opportunities will be created to help WREN continued to fund the Arboretum in Staffordshire with funding complete their work in restoring vital deliver the projects. development of the National site was then recommended for of £450,000 towards Heroes Square saltmarsh habitat across 170ha of the Memorial Arboretum in certification. and improved visitor facilities across Staffordshire with funding of Ribble Estuary which was drained for the site. The Arboretum is the UK’s year £450,000 towards Heroes agricultural use during the 1980s. round centre for remembrance of both Square and improved visitor facilities across the site. military and civilian forces and receives over 300,000 visitors each year.

34 — 35 FCC Corporate Social Responsibility Report Doing the right thing

Contributing to communities £1.35m WREN funding by type 2015 Listed building preservation, funded sports pitch in Wakefield to larger 1 Community 6 Priority habitats Listed building through the FCC Heritage Fund, amounts, such as the grant of buildings at risk 1 preservation, funded benefitted from more than £1.35m £75,000 towards the creation of a through the FCC £4,189,119 £2,795,718 9 awarded to projects which help new BMX Skate Park in Chatteris, Heritage Fund, restore buildings and structures at Cambridgeshire, all the projects WREN benefitted from more 2 Community 7 Restoration of risk. Most notable was funding of funded in 2015 make a real difference than £1.35m awarded outdoor spaces listed building 8 £73k awarded to Coventry Cathedral to local communities. to projects which help and parks and churches ruins to restore and make watertight restore buildings and 130 halls and community centres will £1,245,430 £1,352,965 medieval crypts so they are safe for structures at risk. 2 be better equipped, easier to access public access. 7 or more efficient to run thanks to 3 FCC building 8 Sport and Providing funds for community funding of more than £4.1m. communities recreation 3 projects remains at the heart of WREN. £1,226,985 £1,222,591 65 play areas, skate parks and games Through the FCC Community Action areas will benefit from funding of over Fund and FCC Building Communities 4 Land purchase 9 Children and £2.8m to help children and young 4 Programme over £10.6m was shared for UK biodiversity youth facilities people keep fitter. by nearly 300 projects all of which £3,664,680 £2,783,721 6 Coventry Cathedral £1.2m will help 39 parks, nature enhance and improve local facilities Most notable was funding of 5 for the communities around FCC reserves and green open spaces be £73k awarded to Coventry 5 Major grants Environment landfill sites. easier to access and more enjoyable Cathedral ruins to restore £1,528,000 to visit. and make watertight From small grants of £5,360 to help medieval crypts so they are drain Crofton Community Centre safe for public access

Important changes to FCC Biodiversity Action Fund and FCC Heritage Fund The Government’s announcement in November 2015 to reform the Landfill Communities Fund included measures to reduce the level of the fund itself by £20m. The impact of this, along with the reduction in landfill tonnages, will see WREN’s income reduce significantly in 2016/17. As a result of this reduction the WREN Board have had to make difficult decisions regarding WREN’s funding programmes and has reluctantly concluded that WREN is unable to support separate programmes for Biodiversity and Heritage. The WREN Board still wish to support UK biodiversity and heritage however this will be done through a single LCF programme, which will encompass all WREN funding themes.

36 — 37 FCC Corporate Social Responsibility Report Introduction 2,449 FCC Environment remains one of If passed, this piece of European Forward thinking the UK’s leading recycling and waste legislation could set new, heightened We employ 2,449 management companies. We employ recycling targets and other people across a range It’s been a fast moving and 2,449 people across a range of environmental policies, an issue that of facilities including facilities including materials recycling divides opinion and triggers concern materials recycling fascinating year for FCC facilities, energy from waste plants, and enthusiasm for change in equal facilities, energy from Environment and the waste and landfill sites and household waste measure. waste plants, landfill recycling centres. sites and household That will only apply, of course, if waste recycling centres resource management industry Every day we minimise the amount Britain remains in the EU – another of waste that ends up in landfill by uncertain factor given the upcoming as a whole with debate about transforming it into a worthwhile referendum. resource. Put simply, we collect waste the future taking centre stage. There is also substantive discussion from businesses, local authorities and taking place about recycling and households and process it to ensure materials recovery, particularly given we fully realise its potential. the collapse in prices across the globe. Our mission is simple: we want to be Steel and plastics in particular have known as the company that looks after fallen in value significantly, creating the needs of its customers and the a huge challenge for the secondary environment. materials market to which there is no We do so in a dynamic and easy answer. challenging environment with global For FCC’s part we continue to strive to commodity prices, domestic and tailor our operations and technology continent wide policy and technical to extract maximum value, both issues having a significant effect on fiscally and environmentally, from the our operations and future planning. waste we process. Uncertainty about the waste and In Britain specifically, we’ve seen resource landscape across a number positive signs, in particular from of key areas presents significant new DEFRA Minister, Rory Stewart challenges but ones that, thanks to the MP, who has backed new legislative company’s wealth of experience and amendments designed to tackle technical expertise, we are well placed waste crime; a significant problem for to overcome. companies across the industry to the Among the issues affecting the tune of an estimated £568m a year. landscape in which we operate was Those measures include speeding the publication of the European up the process of prosecuting Circular Economy Package.

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38 — 39 FCC Corporate Social Responsibility Report Forward thinking

rogue waste site operators and the Our focus, however, remains introduction of fixed penalty notices unchanged. We will strive to continue Industry opinion for small scale fly tipping. to provide sustainable solutions Jacob Hayler £10bn that help our customers meet their A review of collection methodologies legislative, corporate responsibility has also been ordered; a welcome Almost £10 billion and commercial needs by keeping While our European partners focus on recyclates and for Refuse Derived step forward to end the huge variety industry investment recycling and green energy at the the European Commission’s Circular Fuels) to meet our environmental has delivered landfill of different collection policies across heart of our business, along with a Economy Package and its potential objectives to date. diversion on a scale virtually every local authority area in strong focus on waste management to set the framework for our sector no-one thought possible the country. To move forward we now need to solutions for our commercial, for the next 15 years and beyond, we 20 years ago capture more value in the UK from Looking to the future the outcomes of industrial and municipal customers. here in the UK’s waste and recycling a circular economy model. We this and the other issues listed could industry are left wondering whether it should encourage the next wave of all, in their own way, have significant will have any impact on us at all. investment in domestic sorting and effects on the business and the The referendum scheduled for 23rd reprocessing capacity for recyclates markets in which we operate. Every day we June – during the height of the and in energy production for that 2020 minimise the amount negotiations on the package – waste which cannot be recycled. is throwing an extra layer of We should use stronger policy levers, We met our 2020 targets of waste that ends uncertainty over the future outlook such as producer responsibility, for diversion six years up in landfill by for our sector. Whatever the outcome to reconfigure supply chains and early and have boosted household recycling transforming it into a of the referendum, one thing is design a system which delivers more rates six-fold worthwhile resource. absolutely certain: the UK’s resources recycling in terms of both quantity industry needs a strategy. and quality. And we should put in place measures to incentivise the The existing policy framework set use of secondary raw materials in by Brussels and the corresponding production. In this way we could pull domestic instruments – primarily quality materials through the supply landfill tax coupled with support chain and close the loop domestically. through the waste PFI Programme – have transformed our industry beyond The Government has a great Jacob Hayler all recognition. Almost £10 billion opportunity to put in place a long-term Executive Director industry investment has delivered resource strategy that would deliver Environmental landfill diversion on a scale no-one the jobs and growth of the future for Services Association thought possible 20 years ago. We met our sector. This strategy would set the our 2020 targets for diversion six years vision for more and better recycling early and have boosted household with more value added for the UK. recycling rates six-fold. It would encourage more recovery of heat and power for that waste which But we are now at a crossroads. cannot be recycled, thereby meeting Landfill tax has successfully pushed our domestic energy objectives of material out of landfill. But we haven’t security of supply, value for money given a huge amount of thought and low carbon energy. And it would as to where that material should at least meet European goals and so subsequently go. This has left us to would be deliverable regardless of the a significant degree dependent on June referendum’s outcome. thriving export markets (for both

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40 — 41 FCC Corporate Social Responsibility Report Forward thinking

Industry opinion Appendix 1 Appendix 2 Continued » Waste management methods Carbon emissions

Tonnes C02 equivalent A new settlement for regulation Waste management methods 2009 Scope 1 2009 2010 2011 2012 2013 2014 2015 would clamp down on waste crime while allowing legitimate operators Landfill emissions 4,801,362 3,682,643 3,843,867 3,763,158 3,533,361 3,341,338 3,168,657 to flourish. Higher standards of Total landfilled professionalism would become 91% Energy from Waste 0 0 200,528 201,664 208,173 383,840 414,311 entrenched across the industry as Fuel use (liquid & gas) 39,389 59,577 52,785 52,887 48,646 54,480 50,188 all players would know that the rules Total energy recovery would be enforced. 6% Scope 2 2009 2010 2011 2012 2013 2014 2015

A great future exists for our industry. Total recycled Electricity 41,027 38,765 40,134 41,145 41,081 46,223 - It has been five years now since the 3% The way our Scope 2 emissions are calculated has been revised and redefined in accordance Government last reviewed a Waste with the GHG Protocol, and does not now include our self-generated and supplied electricity 15,191 13,103 Strategy for England (and nine years Scope 3 2009 2010 2011 2012 2013 2014 2015 since we actually had a full Strategy introduced). It is time for politicians Fuel 0 0 0 0 13,528 14,896 13,448 to take notice of the positive story we have to tell and put in place a domestic long-term framework that Gross Carbon Footprint 4,881,778 3,780,985 4,137,320 4,069,545 3,845,211 3,809,745 3,659,707 delivers both for the economy and for the environment. Waste management methods 2015 Biogenic Out of Scope Emissions 1,857,822 1,526,910 1,638,378 1,685,533 1,469,160 1,838,582 1,759,347

Jacob Hayler Net Carbon Footprint 3,023,956 2,254,075 2,498,942 2,384,012 2,376,051 1,971,163 1,900,360 Executive Director Total landfilled Environmental Services Association 58%

Total energy recovery Scope 1 Scope 3 waste emissions (accounting for 10% Direct greenhouse gas emissions Emissions from business travel approximately 70% of total EfW (carbon dioxide, methane, CFCs and using public transport, well-to-tank inputs) in addition to an extremely Total recycled HFCs) from landfill activities under emissions from liquid & gaseous small element within our diesel and 32% full operational control, modelled fuels, electricity generation, petrol use. using Gassim and the combustion of transmission and distribution and waste, liquid fuels and gaseous fuels. the transmission and distribution of purchased electricity. Scope 2 Indirect greenhouse gas emissions Biogenic out of Scope from purchased grid electricity. In Our outside of scopes figures excess of 90% of this is based on predominately account for our accurate data. biogenic landfill and energy from

All emissions factors and GWPs have been taken from the 2015 Government Greenhouse Gas (GHG) Conversion Factors for Company Reporting (2015 update). This follows the GHG Protocol approach.

42 — 43 FCC Corporate Social Responsibility Report To find out more call 0844 736 9992 fccenvironment.co.uk

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