Renishaw plc Corporate social responsibility section of annual report and accounts 2017 Strategic report Corporate social responsibility

At Renishaw, CSR means focusing on material impacts that affect us and relevant stakeholders, so that we concentrate on subjects we are Strategy update At Renishaw, we seek excellence in best placed to influence or control. every aspect of our business and are This enables us to support the committed to managing our business in a responsible manner. We have a sustainable growth of our business, duty of care to our people, and the communities in which we operate, whilst maintaining its longevity and and we seek to address the fact prosperity, in an ethical and socially that our operations, products and sourcing have both direct and indirect conscious manner. environmental impacts. We believe that by minimising these impacts, and operating in an ethical and sustainable manner, we can reduce risks in our Allen Roberts supply chain and have a positive Group Finance Director impact on society. Our sustainability efforts are focused on areas where we believe we are best placed to make improvements. These areas are resource and energy, education, community and innovation. We are proactively addressing issues such as rising energy costs, constraints on emissions, finite resources, increasing

2017 CSR targets and progress

Target: Target: Waste management: Energy consumption: 5% reduction of waste to landfill Decrease reliance on fossil fuel from global operations derived energy

For more information see page 63 For more information see pages 61–62

Progress: Progress: • Just over 2,330 tonnes 10% • We generated 2.98% 1,187,118 kWh of waste from our global reduction of waste to landfill of our global demand of electricity generated operations was diverted from our global operations. of electricity within this year. from landfill. this period. • We have added more 95% 2,126,237 kWh of all waste diverted low energy lighting from landfill. systems, reducing our of electricity generated to date. demand by a further 1.2m kWh.

Renishaw plc Annual report and accounts 2017 water scarcity, the need for greater Code requires that our employees To avoid any form of discrimination Strategic report transparency and skills shortages. have the right to non-discriminatory during the recruitment process, we We have assessed our CSR impacts treatment and equal opportunities, have strict guidelines to ensure proper and have identified those most material to work in a safe and secure working consideration is given to applications to our business; these include waste environment, and to receive a from all genders, ethnic backgrounds management, energy consumption, fair wage. and those with disabilities. We work GHG emissions and people. closely with employees who become During the year, we have also disabled to ensure they have every

developed a new bullying and Governance Human rights and slavery opportunity to continue in their harassment training course which A review of the Group Business Code employment with Renishaw. has been rolled out across the Group. (the Business Code) was performed It explains how to identify bullying and We continue to use the Business to ensure it still upholds the standards harassment in the workplace, and Code and other policies to set we and our stakeholders expect. how to manage any situations that expectations with potential suppliers. During this review, some parts of may arise. This course is the latest in a The full Business Code can be found at the Business Code were updated to series of modules aimed at developing www.renishaw.com. reflect our new approach to mitigating

our employees and empowering them Shareholder information Financial statements modern slavery within our supply to operate in accordance with the chains. To ensure all our people Business Code. are aware of the high standards we expect of them, the updated Business Code has been sent out to all 4,530 employees worldwide. Implementation of our modern slavery and human trafficking strategy is proceeding as planned. We have begun a process of engaging with our tier 1 suppliers to ascertain the extent of their efforts to mitigate modern slavery. This process is underway in our main UK purchasing group and our local purchasing teams in and China. Further details are contained within our modern slavery statement found at www.renishaw.com. A strict non-discrimination policy is embedded in the Business Code, which states the minimum standards expected within the Group and from D LED lighting has reduced energy demand for lighting in the UK by around 80% (image of our representatives. The Business assembly area at Miskin).

Target: Target: GHG emissions: People:

3% reduction in GHG tCO2e per million 5% of our employees as apprentices, pounds turnover compared to 2016. graduates or sponsored students on structured programmes. For more information see page 62 For more information see pages 56–58

Progress: Progress: • 11% reduction of 16% • 4,530 people employed, 5% GHG emissions from decrease in GHG tCO2e an increase of 5.7% of our employees are owned transport. emissions per £m turnover since last year. apprentices, graduates compared to 2016. or sponsored students on • 12% increase • Over 230 people across structured programmes. in Scope 3 the Group on structured GHG emissions. 7% apprenticeship and increase in absolute graduate programmes. GHG emissions. • Just under £1.9m invested in training this year. Strategic report People Diversity Our strategy in action – As a global company, Renishaw enjoys the advantages of a diverse People workforce. We benefit from the range of experience and cultural understanding that comes from diversity in the workplace. With over 20 different nationalities represented within our senior management group, we benefit from the variety of expertise they bring to the business. On 30th June 2017, we employed 4,530 people across the Group, an increase of 5% Tom Silvey, like many of our since last year. Of these, 3,496 (77%) apprentices, has gone on to study are male and 1,034 (23%) are female. There are nine directors on the Board, a part-time degree consisting of seven males and two alongside his work as a CNC females. The senior management group is made up of 58 people, of Applications Engineer at Renishaw. which 56 (97%) are male and two (3%) Tom completed his degree in 2016 are female. Renishaw regards its senior management group to be the Executive with first-class honours and has since Board, the heads of each product line, sales territory, and manufacturing received the Frederic Barnes Waldron organisation that report directly into the Award from the UK Institution of Executive Board, and the directors of Mechanical Engineers. Renishaw’s subsidiary undertakings. Communication and participation Operating out of 77 locations around the world has necessitated a culture of clear and open communication between sites, functions and management teams across the business. To facilitate this, we operate a flat structure that allows our people to openly voice their ideas and concerns. We are committed to conducting our business with honesty and integrity and promoting a culture of openness and accountability. To help with this a groupwide whistleblowing policy was introduced this year for our people to raise concerns about suspected wrongdoing. The policy covers all Renishaw employees, officers, consultants, contractors, casual workers, agency workers, suppliers, customers and third parties who provide services for or on behalf of Renishaw. People are reassured their concerns will be taken seriously and investigated as appropriate, and that their confidentiality will be respected without fear of reprisals. We hope that in many cases an employee will be able to raise any concerns internally. However, it is recognised there will be times when it is not appropriate, or a person will not be comfortable, raising a concern internally. An independent third-party provider, Safecall, has been appointed to operate a confidential reporting line enabling people to raise concerns in confidence and, if they wish, anonymously.

Renishaw plc Annual report and accounts 2017 We continue to use our suggestion Our continued investment in training Strategic report scheme, which we have recently is currently funding the development relaunched on a new online platform, of 131 apprentices, 57 graduates to encourage our people to share on our graduate training programme ideas that can improve business and further career development processes and their employment for employees right across the experience. The suitability of these business. We are also currently ideas is assessed by a committee of funding the further education of 103 employees, and then transferred to of our people across the Company in Governance the appropriate area of the business 4,530 engineering, software and commercial/ for detailed consideration. Ideas that people employed across business disciplines. are implemented and provide benefits the Group Our online training platform, MySkills, to the business can earn a financial was launched in May 2015 and reward for the originator. We also hold continues to be successful. Our people regular communication meetings, from around the world participate where a member of the Board presents

in the programmes it offers, which Shareholder information Financial statements updates on each area of the business are organised to give them control with an open-floor Q&A session. £1.9 m invested in training of their own development plans with The Board presents our annual and programmes the support of their line manager. half-yearly financial results to all It offers a broad range of courses (in employees in person at our larger various languages) focused on equal locations in the UK and via video- opportunities and diversity, technical conference to smaller sites. skills, leadership/management Training and development development, induction, soft skills, We recognise that our highly skilled 100 career development, health and people are the key to success within students joined Renishaw safety, anti-bribery and corporate for paid placements our organisation; ensuring that they are social responsibility. fully trained in their fields is critical to The Academy was launched in achieving that success. As such, we 2010 with the aim to develop future place a large emphasis on ensuring application engineers to meet the that our training programmes work growing demand of Renishaw’s effectively for our people and business increasingly diverse range of products. needs. This year, we invested a further Technical training is vital to maintain £1.9m in training. We firmly believe our ability to provide excellent technical that work experience, as well as support, and since the inception of studying, is essential to the success the Academy, it has provided a wide of our employees. To ensure this is range of training programmes from possible, we offer the opportunity for “Face-to-Face Communication” and our graduates and apprentices to “Fundamentals of Manufacturing” to take part in funded studies at HNC, using and programming the machines HND and degree levels alongside their and products we make. Access to the regular working lives. Tom Silvey, an Academy continues to be rolled out to award-winning apprentice and BEng more of our locations across the globe, graduate, said the following about his with our highly skilled trainers being experience “When Renishaw presented able to offer face-to-face and online me with the opportunity to work training. We also offer the experience alongside my studies, I knew this was gained from our internal training to the best fit for me. The Company not customers in several key markets, with only funded my degree, but also gave courses held at customer sites or our me all the time I needed to complete own locations. university projects.”

D Graduates from the 2016 intake D A key focus is ensuring that our employees have the necessary skills to offer a high level undergoing practical training. of training and support to customers. Strategic report To give potential future employees the established for many years and is ability to receive practical training and ongoing. Health support for employees Corporate social experience alongside their academic is offered in the form of subsidised studies, we offer paid placements health monitoring (blood pressure, responsibility each year for a broad range of diabetes, cholesterol and BMI). continued students. This year we have given 100 To support the physical and mental (2016: 100) students the opportunity welfare of our people we have regular to work at Renishaw, 40 of whom on-site visits from two occupational stay for a full year-long placement. physicians who are available for our There are 131 manufacturing, technical employees as required. These doctors and software apprentices currently in also act as senior advisors to our training (2016: 120), with four (2016: 4) Group Health and Safety and HR in our German subsidiary, and the rest functions to ensure that best practice at various UK locations. We have a in occupational health is observed. further 48 new apprentices joining us A total of 122 (2016: 113) near- in September 2017 (2016: 46) and 45 misses were recorded for the period. new graduates starting this summer No significant repeating common (2016: 76). causes have been established. Health and safety Community We continue to develop our health With an increasing global footprint, we D Renishaw sponsors the TransFIORmers and safety management system and recognise the positive contribution that Moto2™ GP team. we are bringing more sites online can be made to our local communities with our health and safety strategy. through varied interactions with local Our management system has been residents, businesses, schools and designed to be in line with best not-for-profit organisations. This is practice and the requirements of the especially true in the west of England ISO18001 standard. We recognise and South Wales, where we are a the importance of dealing with all significant employer. injuries, as many have the potential to have been more serious. All injuries In many of our markets, we communicate are recorded, enabling us to manage a positive story about the role played by treatment and investigate all incidents science, engineering and manufacturing effectively with the aim of implementing to enhance the lives of the general D Wales international Samson Lee (right) appropriate control measures to populace and the attractive nature of a visits Miskin. prevent reoccurrence. career within these sectors. We see this as vital to overcome perceptions about The total number of accidents for the career options in these areas and period was 234 (2016: 296) against to ensure a strong pipeline of future a year-end headcount of 4,530 talent, not just for our own needs, (2016: 4,286). This equates to an but also for our wider supply chain accident frequency rate of 30.79 per and customer base. million hours worked (2016: 40.99). Across the Group we continue to Our online incident reporting system host tour groups and have given continues to be used effectively, talks to a range of organisations encouraging employees to report all including primary and secondary incidents regardless of severity, and schools, universities and colleges, enables us to record trends more business clubs and societies. effectively. We currently do not see any We actively support the business overall trends with the data we capture, community regionally, nationally and except that most of our incidents are internationally, through membership minor cuts. of trade and lobbying associations There were two reportable accidents such as the Additive Manufacturing under the UK RIDDOR reporting Users Group (USA), the European requirements: one severe cut to a Society for Precision Engineering & finger and one head injury leading Nanotechnology, SAE International, the to concussion. These resulted in a Confederation of British Industry (CBI), total lost time of 244 hours, or 42.5 the Dental Laboratories Association days. This equates to a frequency (UK), the Association of British rate of 0.25 per million hours worked Healthcare Industries, Verein Deutscher compared with a UK manufacturing Werkzeugmaschinenfabriken average for RIDDOR reportable e.V. (Germany), UCIMU-SISTEMI accidents of 1.94. PER PRODURRE (Italy) and the UK’s Manufacturing Technologies No work-related ill health or disease Association (MTA) where two senior was reported, but health monitoring managers are Board members. in the form of lung function testing, Rhydian Pountney, a member of the hearing testing and eye testing, where International Sales and Marketing appropriate for a job role, has been Board (see page 71) is also co-chair

Renishaw plc Annual report and accounts 2017 of the Advanced Engineering Working manufactured wheel carriers for the offering machining, fabrication and Strategic report Group of the annual India-UK Joint Formula Student GreenTeam. maintenance and repair services Economic and Trade Committee to industry through a highly-trained Our sponsorship of the French (JETCO). veteran and wounded warrior work Moto2™ GP motorcycle team force. It provides profits and resources We are also a member of various TransFIORmers also includes to Workshop for Warriors, a non- industry research centres across the supply of unique additively profit school that prepares veterans the globe, some of these include manufactured titanium wishbone and and wounded warriors for advanced

Canada Makes (Canada), PräziGen steering column components. Governance manufacturing careers through training, (Germany), Light Alliance (Germany), certification and job placement. BazMod (Germany), The Manufacturing Charity Technology Centre (UK) and the In the UK, the Renishaw Charities Renishaw, Inc. has donated machine Advanced Manufacturing Research Committee (RCC) was formed in the tool calibration equipment to Centre (UK). 1980s to distribute funds to charitable VetPowered and runs free-of-charge and voluntary organisations and training to enable them to increase We continue to sponsor and help support the individual fundraising their machine maintenance and judge a range of regional and national efforts of all UK employees. The RCC repair portfolio. Following successful Shareholder information Financial statements business award programmes that is made up of representatives from completion, the aim is to then train the help encourage and recognise Renishaw’s main Gloucestershire sites veterans in machine tool retrofits to business and individual excellence. and has a particular focus on assisting enable them to earn further revenue to Rainer Lotz, Managing Director organisations that help enrich the lives support their very important cause. of Renishaw GmbH is a Board of children and adults, from toddler Member of Germany’s MX Awards, During the year, our subsidiary in India groups and sports clubs, through to whilst Head of Communications, supported Gurukulam, a school of 350 organisations that support the disabled Chris Pockett, helps judge the main disadvantaged students in Pune. and the bereaved. Donations are also apprenticeship, education and The children are often from travelling made to organisations located close business awards programmes in Bristol families who do not have the stability to other UK sites. A separate fund and Gloucestershire. or financial means to send them to is administered by the RCC, which mainstream schools and the school To further our aim of establishing donates monies to aid the victims of provides education integrated with awareness of Renishaw as a significant global disasters. vocational training, as well as shelter regional employer, we continue to During the year, the RCC received and three meals per day, which is free sponsor a wide range of festivals, fewer funding requests but still made of charge to the children and their sports clubs and organisations in donations to 230 diverse organisations families. Gurukulam faces many the west of England and South totalling £98,000 (2016: £102,000). financial challenges, one of which is Wales. During the year this included Beneficiaries included medical research the cost of fuel (wood and LPG) used sponsorship of new music at the groups, junior sports clubs, cubs for cooking. Renishaw therefore gave Colston Hall’s Lantern venue in Bristol, and brownies groups, sea cadets, a significant donation for the installation Young Photographer of the Year hospice care organisations, disability of a concentrated solar thermal and Gloucester Tall Ships Festival. sports and support groups, primary, technology based steam cooking The sport of rugby has an especially secondary and special needs schools, system, which harnesses the power high profile in South Wales and the counselling and carers support groups, of the sun to generate steam and hot west of England, and we currently animal sanctuaries and senior citizen water, providing an efficient and sponsor Samson Lee (Scarlets and groups. The RCC also fully matches environmentally friendly system with Wales) and Ben Morgan (Gloucester), funds raised by employees for UK no fuel costs. and for season 2017-2018, we have national fundraising events such as agreed sponsorship with Cardiff Children in Need and Red Nose Day Blues, including on-ground signage and also supports individual employee and sponsorship of Tomos Williams, fundraising activities. a promising young scrum-half who During the year, significant donations was named in the Wales squad in of £2,000 or more were made by the June 2017. We sponsor Swansea RCC to support seven organisations City footballer Ki Sung-Yeung, who in Gloucestershire, including a new plays internationally for South Korea, memorial garden for St Mary’s Church plus Gloucestershire County Cricket’s in Kingswood, a community library D A charitable donation was given to the Tom Smith. Severn Area Rescue Association. in Berkeley, further development of We are a technical sponsor to the Wotton-under-Edge community numerous student racing teams, where swimming pool, a new launch we utilise our additive manufacturing vehicle for the Severn Area Rescue expertise to supply key components. Association’s lifeboat, and a new In Italy, the Unibo Motorsport team, centre at the Milestone special school based at Università di Bologna, in Gloucester that, when opened, will competes in the Formula Student offer state-of-the-art facilities including single-seater car competition, whilst a large hydrotherapy pool with therapy at Politecnico di Torino we sponsor and sensory equipment, plus an all the 2 Wheels Polito team, which has ability play and sports area. built a motorcycle that competes in the Globally, Renishaw is highly supportive MotoStudent competition. In Germany, D Mr Girish Prabhune (2nd from right), of its local communities. In the USA we have also supplied additively founder of Gurukulam School, with we have started a partnership with Renishaw staff. VetPowered LLC, an organisation Strategic report Education To allow us to support education Renishaw’s UK-based education outreach activities across our key Corporate social outreach team continues to work with regions, we offer STEM ambassador responsibility primary and secondary schools, and training to all our new graduates and higher educational establishments, second-year apprentices. We now have continued to encourage young people of all over 130 ambassadors in the Company genders, ethnicity and backgrounds and each must carry out one STEM to learn about engineering, discover activity per year, which helps to sustain what engineers do every day and to and grow our multiple initiatives with encourage them to choose engineering schools and universities, including talks as a career. The team has designed and lectures, career fairs, after school more workshops to be delivered either clubs and STEM projects. One of our at schools, or at Renishaw’s sites in STEM ambassadors recently received Gloucestershire and South Wales, a letter from a parent whose daughter that are curriculum-linked to add value had attended a talk on working as an and context to learning in maths, engineer at Renishaw. “My daughter physics, computer science, and design had never been committed to school, and technology. but after the Renishaw engineer’s talk she amazed us! She suddenly knew Renishaw believes that making things, that she wanted to be developing new and understanding how products are technology with Renishaw, and the designed and made, is important in last parent’s evening was a delight to D Southville Primary School, winner of the Super Science competition. influencing young people to consider experience.” Such feedback validates a career in engineering. We have our continuing commitment to therefore developed (with support from schools engagement. the Welsh Government) a Fabrication Development Centre (FDC) on our We are continuing to develop manufacturing site at Miskin in South relationships with key universities Wales, which we believe is unique in that have been identified as having the UK. relevant courses for our business needs. This includes the sponsorship Our aim is to become a key of engineering societies and educational resource for hands-on Formula Student teams. We have learning of design, fabrication, ongoing research projects, PhD and manufacturing and engineering skills, undergraduate projects with several through which we will raise the profile universities, and often give lectures, of engineering and encourage more employability talks and attend career D Renishaw, Inc. staff at a ‘girls into students, especially girls, to choose fairs to raise our profile. automotive engineering’ event. science, technology, engineering and maths (STEM) subjects. This will The task of developing more engineers encourage more young people to take is not something that we can do alone up apprenticeships, jobs or further and therefore we continue to work education career pathways in high- with leading industry organisations value engineering. and engineering peers to advise government on national policy that Since it opened last May, we have will benefit the sector. For example, welcomed over 600 pupils and we are members of the Royal Academy students to the FDC where they of Engineering’s Diversity and Inclusion have participated in design and build Leadership Group that has been set up projects, and Renishaw workshops to help remove barriers and encourage in a state-of-the-art facility that more women and other under- inspires them to think about an represented groups into engineering. engineering career. We are also a key contributor, both in We continue to build relationships and time and money, to Festomane (Festival raise our profile in the regions where of Manufacturing and Engineering), we have the highest recruitment needs. which is held each year in Stroud In Bristol, we again partnered with the district, where our Gloucestershire sites Bristol Post newspaper to run a ‘Super are located. The festival has grown Science’ competition that offers one in popularity and Renishaw hosted Bristol region school the chance to an ‘Engineer your Future’ event this win £10,000 towards anything in the year where both students and parents name of science education. The 2016 attended workshops and talks to find winning school was Southville Primary, out the opportunities for young people which intended to buy key science in engineering and manufacturing. equipment such as magnets, circuits, Influencers such as teachers and microscopes and thermometers, and parents are key groups that we focus hold workshops with local scientists. on to change perceptions.

Renishaw plc Annual report and accounts 2017 We also have strong partnerships with Environment the fuel efficiencies and overall impact Strategic report other STEM-focused organisations We recognise that improving the of the vehicles. At our new building in including the Greenpower Education operational efficiencies of our locations the USA we have installed two electric Trust, Aerospace Bristol, Bristol Music across the world contributes to the vehicle charging points. Trust and the SS Great Britain Trust. sustainable growth of our business. We have also investigated energy in The new Aerospace Bristol museum, We continue to work hard to ensure production and developed a project which features a hangar for the that the impact of our business to analyse downtime on our machine Concorde aircraft to be built, opens activities is as low as practical.

tools, which significantly contributes to Governance in Autumn 2017 and a key aim is to By analysing our GHG emissions we our energy demands. Machine tools advance learning, skills and training can see that our greatest impact is are designed to always be left in particularly in science, technology, from the purchase of electricity and standby mode, which uses only slightly engineering and design. A Renishaw its associated Scope 3 emissions, less energy. This project has enabled Equator gauging system will form part which is responsible for just over 50% us to reduce the power required when of the museum’s exhibits focused on of our global GHG emissions. This is the machines are not in use, and from current aerospace technology, and followed by our product distribution the work we have carried out to date, we will use the dedicated education and business travel, at around 25%

we have reduced our energy demand Shareholder information Financial statements facilities to deliver some of our and 17% respectively. from these machines by just over outreach programmes. To combat this, we have in previous 806,000 kWh per annum. Our Spanish subsidiary continues to years invested in solar arrays. We continue to look at ways to support the SpainSkills entry in the During this year, we have generated reduce our reliance on business travel global WorldSkills competition through 2.98% (2016: 3.45%) of our global and to install state-of-the art video- sponsorship, the loan of equipment energy needs, and are looking for more conferencing facilities at our locations. and supplying engineers to assist the ways to invest effectively in reducing Our people are encouraged to use entrants in the successful completion our future energy demands. As well these facilities and other technologies of the engineering sections of as our investment in solar arrays, we rather than travel if possible. We are this challenge. have invested just under £1m this also working with our logistics partners In the USA, we are also developing year in energy-saving technologies to measure the GHG emissions of the a new programme that creates to increase the efficiency and lower work they perform on our behalf and partnerships with educational the energy demand of our building will work with them to manage this as establishments such as technical stock. These projects have included effectively as possible. colleges and universities. the installation of triple glazing, LED This year our total GHG emissions These partnerships create regional light fixtures and insulation in several of have increased by 7% but our statutory Renishaw bases to support our our buildings. emissions have increased by just 2%. customers whilst helping to develop We have installed new LED lighting in We continue to increase coverage of training and curriculum for the the UK which has reduced our energy our scope 3 emissions data and expect next generation of engineers and demand for lighting by around 80%, to show increases in the data reported manufacturing staff. A pilot partnership and aim to continue to apply these as this progresses. We have continued with Greenville Technical College technologies at new locations where to increase our business over this Center for Manufacturing Innovation, appropriate. In the USA, we have period and have importantly seen our South Carolina, is up and running recently constructed a new building statutory GHG emissions normalised covering a variety of our product lines for Renishaw, Inc. where carpets by revenue fall by 19% and our total with two Renishaw staff based at the with a 43% pre-consumer recycled GHG emissions normalized by revenue facility to support the partnership. content were used. We also reduced fall by 16%. As part of this pilot, staff from the amount of parking enabling us to At our sites across the globe we Renishaw, Inc. attended an event at increase the amount of green space house 4,530 people, with sites the college to encourage girls into on the site to around 3,200 m2, thus ranging in size from two people, to automotive engineering, organised by removing the need to transport and our UK headquarters, which houses the Southern Automotive Women’s lay around 1,600 m3 of tarmac and 1,411 in eight buildings. Our buildings Forum. Around 150 middle-school and 1,500 tonnes of stone. The roof was range from a 19th century Grade II high-school girls attended from the also upgraded to white thermoplastic listed cotton mill, to state-of-the-art, Greenville area who took part in hands- polyolefin (TPO) offering two advantages. purpose-built modern buildings, and on STEM-based activities, toured Firstly, it is a lighter roofing system offices in large and small multipurpose the facilities and heard Renishaw UK which allows for the building structure properties around the world. STEM ambassador, Lucy Ackland, to utilise less steel, and secondly, a talk about her career journey and white TPO roof provides a reduction In the UK, Renishaw continues to the many opportunities within the to the roof heat island effect, as participate in the Carbon Reduction engineering sector. recognised by the LEED® energy Commitment (CRC) Energy Efficiency and environmental design standard. Scheme and the Carbon Disclosure LED lighting has been installed Project (CDP). We use the CDP as a throughout the building which reduces benchmarking tool and are working our annual energy demand around extensively to ensure that our efforts in 100,000 kWh compared to traditional GHG emission management are fully ballast tube lighting. disclosed and are as transparent as is In Germany and the UK we are looking expected by our people, customers, at ways we can reduce the impact of and investors. our pool car fleets, and are looking at fuel types and car sizes to increase Strategic report Renishaw is legally obliged to report on was 24,232.49 (2016: 21,638.21;

Scope 1 and 2 emissions (as defined 2015: 22,403.09) tCO2e. by the Greenhouse Gas Protocol). Corporate social To calculate our GHG emissions, we However, through analysis, it is evident have used the GHG Protocol Corporate responsibility that our Scope 3 emissions amount to Accounting and Reporting Standard a significant proportion of our carbon continued (revised addition), data gathered for footprint. We will continue to disclose our CRC submission, and the UK our Scope 1, 2, and significant Scope Government’s GHG reporting guidance 3 emissions, and to put efforts into as the basis of our methodology improving data quality, and expanding and the source of emissions factors. our Scope 3 data capture to present Our GHG emissions are based on a more complete picture of our GHG actual data taken from bills, invoices, emissions. During the year, our total meter readings and expense claims GHG emissions for Scope 1 and 2 wherever possible. For our Scope (statutory disclosure) was 21,245.15 1 and 2 emissions, less than 1% of (2016: 21,192.39; 2015: 20,659.07) the data is based on estimates from tCO e. Our significant Scope 3 2 averaged data sets. emissions (voluntary disclosure)

2015 20161 20173 Scope 1 Gas Consumption 962.30 771.82 1,003.62 Owned Transport 2,293.66 2,492.30 2,230.50 Generator Diesel 124.31 26.38 28.03 Heating Oil 41.09 234.00 244.67 Fugitive Emissions 262.79 305.73 266.00

Total Scope 1 (tCO2e) 3,684.15 3,830.23 3,772.82

Scope 2 Location Based Purchased Heat 5.44 19.88 4.59 Electricity 16,963.50 17,003.42 17,467.75

Total Scope 2 (tCO2e) 16,968.94 17,023.30 17,472.34

2 Total Statutory GHG emissions (tCO2e) 20,653.09 20,853.53 21,245.16 Normalised Statutory GHG emissions2

by revenue (tCO2e/£m) 41.75 48.81 39.58

Scope 3 Business travel 4,030.00 4,717.04 5,397.60 Product distribution 11,482.33 9,534.18 11,048.65 Raw material purchase 1,088.41 1,260.40 1,517.53 Post and communications 598.66 774.00 773.11 WTT and T&D total6 5,203.68 5,352.59 5,495.61

Total significant Scope 3 (tCO2e) 22,403.08 21,638.21 24,232.49

Total GHG emissions (tCO2e) 43,056.17 42,491.74 45,477.66 Normalised total GHG emissions4

by revenue (tCO2e/£m) 87.03 99.47 83.63

Further information Scope 1 Out of scope (biofuel blend) 59.58 60.85 59.13

Scope 2 Market Based Electricity 16,963.50 21,375.05 21,659.34 5 Total Scope 2 (tCO2e) 16,968.94 21,394.93 21,663.93

Scope 3 Out of scope (biofuel blend) 38.97 29.49 31.72

1 2016 figures have been restated due to improvements in our methodology, updated GHG conversion factors and replacing the calculation used for the June 2016 data last year – see footnote 3. 2 Statutory emissions are Scope 1 and 2 as required by the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013. 3 To facilitate the timely capture of information, this disclosure uses internally reported data from July to May and the June data is given as an average of the previous three months. This will be restated next year if a significant difference is seen. 4 Total GHG emissions include Scope 1 and 2 (statutory) and significant Scope 3 (voluntarily reported) emissions. 5 Market Based electricity is used where it is available to us. This is currently only within the UK and Europe. Where Market Based factors are not available Location Based factors are used in their place. Currently 87% of electricity consumed is covered by Market Based factors. 6 Well to Tank and Transmission and Distribution losses total, use Location Based conversion factors for calculations. Renishaw plc Annual report and accounts 2017 Waste management Product compliance Strategic report Our waste strategy, which was We have prepared for the Restriction started in February 2014 and proved of the use of Hazardous Substances to be effective, has continued to Regulations (RoHS), which requires drive our efforts throughout the year, most of our products to be compliant resulting in a further 2,330 tonnes in July 2017. We continue to monitor of waste being diverted from landfill. substances against those identified Approximately 64% of all waste as ‘substances of very high concern’ Governance generated this year originated from under the Registration, Evaluation, our UK sites where we sent less than Authorisation and Restriction of 0.5% of waste to landfill, these sites Chemicals Directive. Whilst we do continue to maintain their certification not fall within the remit of the USA’s to the Waste Standard. Dodd-Frank Wall Street Reform These sites have been recognised and Consumer Protection Act, we by the Carbon Trust for their efforts recognise that compliance with the in moving waste away from landfill as conflict minerals assessment and iaca ttmnsShareholder information Financial statements a disposal option, towards recovery, disclosure aspects of such legislation recycling and reuse. is important to many of our customers. We also recognise we should have a Last year, we set a target of 5% for supply chain with minimum risk, that is the reduction of waste to landfill in free of unethical practices. As such, we our global operations. We have had a have worked to mitigate against conflict decrease from our global operations of minerals within our supply chain. 10%. We are still reusing, recycling or Continual investigations in our supply recovering around 95% of our waste chain are carried out to help ensure around the world. conflict minerals are not present. Any issues we consider to be against the spirit of the Business Code are monitored, and we work with suppliers where issues are identified.

D Electric car charging point at the new headquarters building for Renishaw, Inc.

Global waste totals (tonnes)

2015 20161 2017 Landfilled 2,818.04 Re-used Landfilled 82.15 146.07 132.24 Composted 2,463.10 Incinerated Re-used 12.96 0.96 0.00 Recycled Composted 2.64 23.28 2.80

2,328.42 Incinerated 394.71 431.02 330.11 Recycled 1,835.96 2,216.71 1,997.94 Total non-landfilled 2,246.27 2,671.97 2,330.86 Percentage of waste sent to landfill 3.53% 5.18% 5.37% Total waste 2,328.42 2,818.04 2,463.10

1 Includes US data for the first time which accounts for 87.2 tonnes of landfill waste in 2016.

2017

2016 This Strategic report was approved by the Board on 27th July 2017 and signed on its behalf by 2015

Sir David McMurtry Chairman and Chief Executive Annual report and accounts 2017

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