Environmental KPI
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1 Environmental KPI
2 Marshalls plc group of specialist businesses CONTENTS Statement fromjack Clarke...3 Board Responsibility...4 Environmental Policy - Key Features...4 Environmental Management...5 Environmental Impact...5 Carbon Water...9 Transport Waste Reduction Packaging...11 Suppliers and Contractors...12 Environmental Impact of Products Sustainability...13 Land Management Environmental Awareness and Training Biodiversity Legal Compliance Verification... 15
3 Environmental Report I am pleased to introduce Marshalls Environmental KPI Report covering the Group s performance in Having joined Marshalls and been appointed to the Board in October 2014 it allows me the first opportunity to review the Group s environmental results. It is clear to me that sound environmental management and behaviours are increasingly important for a successful business, particularly in the construction sector. As a Group we have a responsibility to maintain legal compliance; however, we recognise that going beyond these requirements by reducing the environmental impact of our activities, managing our operations in a sustainable way, and seeking innovation in our use of energy and materials, improves our overall business efficiency, builds on positive customer and supplier relationships and reinforces the brand values connected with creating better spaces. The environmental targets are part of the business sustainability agenda, this being a core value of the Group. Jack Clarke Group Finance Director with board responsibility for Environmental Management Good progress has been made in reducing the intensity of the Group s environmental impacts with most KPIs achieving or exceeding our targets, albeit recognising that some targets have increased in the reporting period. It is of particular note that our Greenhouse Gas emissions in terms of absolute and intensity have decreased in the period, against a backdrop of increased production activity, and this result is the outcome of our actions and investments. As stated in our previous Environmental Report a full review of the Environmental KPIs is planned for During this review process we will need to consider the potential risks and opportunities from legislation, customers, other stakeholders, industry commitments and changes in management standards. The long term nature of environmental management leads to targets which roll progressively over a number of years and these are influenced by external factors outside the Group s control. It will be important that the KPIs are proportionate and timely and reflect the strategic objectives of the business. I look forward to working with the team to address the environmental challenges of the future by contunuing to reduce our environmental impact. La Linia, Various Colours, Brownfields 3
4 Board Responsibility The Group s Finance Director, Jack Clarke, is the Director responsible for the Environmental Performance of the Group. The Group s Environmental Policies are approved by the Board and reviewed at least annually. The full text of the Policies can be found on the Group s website Environmental Policy Key Features Target To operate within the relevant legal frameworks and comply with appropriate legislation. The Group has a commitment to achieving the highest standards of environmental performance, preventing pollution and minimising the impact of its operations. All operations should meet or exceed the requirements of legislation and applicable best practice. Where no legislation exists, best practice will remain an integral part of Marshalls business strategy. The Group is committed to considering the environmental impacts associated with its products throughout their life cycle. Policy is supported by monitoring and measuring environmental performance using appropriate external guidelines wherever practicable. Operating sites have assessed the environmental aspects of their activities, and objectives and targets aimed at improving the overall environmental impact of those activities have been set. These are reviewed on at least an annual basis. Marshalls will continue to raise environmental awareness within the Group through the development and training of its employees and will communicate openly and consult with customers, suppliers and other stakeholders on relevant environmental matters. Marshalls strives to protect and enhance biodiversity and natural habitats within its landholdings where possible. The Group also recognises the need for sympathetic restoration and after-use of quarry and other operational sites. Marshalls considers the character of the local environment and the concerns of the local community and other stakeholders in relation to its activities. Tegula, Pennant Grey & Harvest, Clay Farm, Cambridgeshire 4
5 Environmental Management Target 95 per cent of Group production to be manufactured at sites operating an integrated management system in accordance with Publicly Available Specification 99:2006 ( PAS 99 ) to be maintained to Marshalls reviewed its Group target in 2013 and revised this up to 95 per cent from 90 per cent. During the year 43 (2013: 46) sites, were operating Integrated Management Systems to PAS 99 Specification which represents 99 per cent of the Group s manufacturing output. The target was achieved in the year and the Group aims to maintain this target to In 2013 the number of operational sites reduced on the sale of he aggregate business, and we recognise that continued achievement of the targets may be affected by the corporate activity in the future. During 2014 the Group had 49 operational* sites (2012: 55). Of these sites: 47 (2013: 50) had BS EN ISO 9001:2008 Quality Management Systems in place representing 99 per cent of the Group s manufacturing output. 45 (2013: 48) had BS EN ISO 14001:2004 for Environmental Management Systems in place representing 99 per cent of the Group s manufacturing output. 46 (2013: 50) had BS OHSAS 18001:2007 for Health and Safety Management Systems in place representing 99 per cent of the Group s manufacturing output. In addition to these, the Group also had PAS 99 compliant management systems in place at its Group Laboratory, Marketing Support Department, Landscape House and a distribution site in the Midlands. * Operational is defined as a site in the UK with production output. IMR FM EMS OHS Environmental Impact The business redefined its Key Performance Indicators ( KPI ) in 2012 to increase the accuracy and measurability of its environmental initiatives while improving performance. These are referred to in the relevant section of this Report. Explanatory notes have been included with the charts. Marshalls is a signatory to the Sustainable Concrete Forum, an industry initiative, which published a new road map, with time-bound targets to The latest report is the 6th Report on Progress published in October The Group has reviewed its own targets in line with its commitment as a signatory to this initiative. Fairstone Natural Slate 5
6 Carbon Target to reduce our absolute CO 2 e consumption in line with UK Government targets (34 per cent by 2020 and 80 per cent by 2050 from a 1990 baseline). Marshalls Energy and Climate Change Policy approved by the Board during the year confirms the Group s commitment to reducing the Energy and Carbon impact of its business activities. The current reduction is in line with the 2020 and 2050 targets. The Group complied with its legal obligation in the Government s Carbon Reduction Commitment Energy Efficiency Scheme ( CRC ) by submitting its Annual Report and surrender of Carbon allowances for the period April 2013 to March 2014 within the time limit imposed by the legislation. The Group is certified to the Carbon Trust Standard and is currently recertifying showing ongoing commitment to carbon reductions. Marshalls has a mandatory duty to report its annual Greenhouse Gas Emissions ( GHG ) under the Companies Act 2006 (Strategic and Directors Reports) Regulations Marshalls uses the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and the latest Defra published CO 2 e conversion factors to measure its GHG emissions. The Group reports its scope 1 and 2 GHG emissions for its UK operation and ots CO 2 emissions for Marshalls NV, its Belgium site for which CO 2 e conversion factors are not available. The Group audited its UK fugitive emissions during 2013 and reassessed any changes during 2014, as these were less than half of one per cent of the Group total emissions, they are excluded from this report. Marshalls does not currently report its scope 3 emissions, although in 2013 it completed an exercise to understand the impact of its scope 3 emissions. These are included in the product footprints certified to PAS2050 programme. The business energy and carbon KPIs are aligned to Mandatory Carbon Reporting and CRC through the measurement of energy at both absolute and relative intensity levels and the business remains committed to reducing energy use on both these measures. The Group continues to report voluntarily to the Carbon Disclosure Project ( CDP ). It received a 98B rating for its 2014 report which includes a wider carbon management performance over time and also provides an insight for shareholders regarding the Group s energy, carbon and climate change impact management programme. The Group reported 55,996 tonnes of CO 2 e for the year 2013 (2012: 60,298 tonnes). This data includes scope 1 and 2 emissions as defined in the Greenhouse Gas Protocol ( GHG Protocol ), although the emission factors for CDP differ from those of Mandatory Carbon Reporting. The Group recognises that renewable energy will be required to achieve its absolute reduction target. In 2015 it intends to install a 250kW solar array at its operating site at Sandy. The Group is exploring further options to develop the use of renewable energy such as anaerobic digestion, solar and wind where these are economically viable. Highlighted in yellow: South facing roof for PV panel installation Carbon continued overleaf 6
7 Carbon continued... The chart below illustrates the Group s absolute CO 2 e emissions in tonnes, including transport activities, between 2010 and The Group s UK GHG emissions for 2014 at 52,917 tonnes CO 2 e showed a reduction of 1092 tonnes CO 2 e compared to its 2013 emissions of 54,027 tonnes CO 2 e, representing a decrease of two per cent. The net reduction in absolute emissions is the result of energy saving initiatives which are within the control of the business and other factors, such as business churn, product mix and climate, which are not. The Group reports that it is responsible for the GHG emissions of Marshalls NV. The absolute CO 2 emission from this operation in 2014 was 961 tonnes; this is a reduction of 156 tonnes of CO 2 compared to its 2013 emissions of 1117 tonnes. The business is continually improving the reliability of its energy data to enable better forecasting and management of its energy and carbon footprint. The business has a forecast of its GHG emissions until 2020 and a measure of the required investment to achieve its targets. Saxon & Steps, Natural, Salford University Carbon continued overleaf 7
8 Carbon continued... The mix of products manufactured will impact on the Group s absolute and intensity carbon footprint. The Group recognises that if production of low carbon products increases its footprint will reduce accordingly. The Group has identified that warm winters have a positive impact on its reported energy use as it requires less fuel to provide comfort and process heating. The business consumed less energy in 2014 compared to 2013 noting an increase in the mean average winter temperature. During 2014, a new heating management system was piloted together with improvement projects to recover and conserve heat. The success of these pilots has enabled a larger scale project to be planned in The chart below illustrates the Group s CO 2 e intensity emissions as a proportion of production output, including transport activities, between 2010 and The Group reports that it is responsible for the GHG emissions of Marshalls NV. The intensity CO 2 emission from this operation in 2014 was 5.73 kg CO 2 per tonne production. The significant decrease in intensity, from the kg CO 2 per tonne production reported for 2013, is mainly due to product mix. The business manufactured a product that substantially increased the tonnage but with minimal impact on the consumption of energy. Each of the Group s operational sites and main buildings has an energy plan with monitoring and monthly reporting. These reports highlight the site s progress towards its GHG emission reduction with a total reported measureable reduction of 503 tonnes of GHG emissions during the year. Although lower than in previous years this is due to more complex projects being considered with longer monitoring and lead in times. 8
9 Water Target reduce use of water from mains and licensed boreholes to 0.05m3 per tonne of production by The Group understands the future value of water. The business has demonstrated a commitment to water harvesting and recycling on numerous sites and utilises quarry water where appropriate in its operations. It is also a signatory of the United Nations Global Compact CEO Water Mandate. The chart below illustrates the Group s water performance between 2010 and This chart shows an increase in water use, m3 per tonne of production in 2014 (0.41 m3 in 2013). Whilst the 2014 target of 0.05 m3 of licensed water per tonne of production was met. There was an increase in concrete production 2,320,940 tonnes (2013:1,868,787 tonnes), and product mix was responsible for the increase. Marshalls efforts to reduce water intensity are helped by Marshalls previous and continued investment in water management projects, particularly water harvesting. The UK rainfall, taken from Met Office data, in 2014 was mm (2013: mm) and 12.0 per cent above the ten year average. Increased volumes of rainfall have a positive impact on the Group s reported water figures, as the business prioritises the use of harvested rainwater or quarry water before mains or borehole water. Marshalls has undertaken a water management exercise at one of its key manufacturing sites involving the introduction of automatic meter reading ( AMR ). This allows Marshalls to improve the data accuracy and frequency of monitoring of its mains water use at the site. This exercise has demonstrated that significant reductions in use can be made. Due to the success of this trial, additional AMR use will be extended to a further four manufacturing sites in Drivesett Argent Priora 9
10 Transport Target to meet the challenge of reducing emissions whilst striving to maintain and improve customer service. Marshalls operates its own fleet of Large Goods Vehicles ( LGV ) for the majority of its deliveries to customers. As a consequence diesel fuel usage has a significant business impact on the Group s GHG emissions reporting. The Group is a voluntary member of the Freight Transport Association led Logistic Carbon Reduction Scheme ( LCRS ) which has a collective commitment to reduce carbon dioxide emissions by eight per cent by 2015 (compared to 2010 levels). This initiative also demonstrates our commitment to recording, reporting and reducing carbon emissions while sharing best practice with like minded companies. During the last two years the Group has invested in a new LGV fleet. This investment was partially justified by the fuel efficiency that might be achieved with the latest vehicles; initial results indicate an improvement in fuel usage of over eight per cent. Marshalls undertakes one-on-one driver training for its LGV fleet drivers, focusing on the safety and fuel efficiency this has the added advantage of gaining a broader understanding of the problems being faced by the drivers, allowing management to address the issues. The Group uses rail for stock movement to reduce carbon emissions and will continue to look at different modes of transport whenever practicable. The Group includes energy efficient cars within its car fleet including hybrid and electric. The average emission from its car fleet was 120 CO 2 grams per kilometre, a reduction from 125 since Company car drivers may review their achieved efficiency (miles per gallon) via an automated online system. Waste Reduction Target to reduce by 3 per cent the total waste to landfill per tonne of production output per annum over a three year rolling average. The Group has continued to measure the amount of waste, including material for recycling, leaving sites as a percentage of total production output. The business aims to eliminate waste and where it is generated it investigates the opportunity for reuse or recycling within the business. The Group is currently ahead of its target. The chart below illustrates the Group s off-site waste performance between 2010 and This chart does not differentiate between waste leaving site for reuse / recycling and waste leaving site for landfill. The absolute waste total for the year has increased by 36,269 tonnes to 134,517 tonnes. The Group has increased its recycling/recovery rate to 95.6 per cent (2013: 93.7 per cent) and reduced its waste sent to landfill to 4.4 per cent (2013: 6.3 per cent). The increase in absolute waste reflects the increase in production of concrete production to 2,320,940 tonnes (2013: 1,855,031 tonnes) and an increase in natural stone walling production to 91,730 tonnes (2013: 86,727 tonnes) is also reflected in the overall increase in absolute waste generation. The Group continues to improve the accuracy of its data. Product mix is a factor in measuring waste generation across the Group, with certain product lines being associated with higher levels of waste generation than others. 10
11 Packaging Target - reduce by 2 per cent per annum, over a 3 year rolling cycle, while ensuring that the pack and product safety is not compromised The Group reports packaging used which aligns with the duty to report under the Producer Responsibility Obligations (Packaging Waste) Regulations. The chart below illustrates the Group s packaging performance between 2010 and The Group used 12,877 tonnes of packaging in the reporting year, a six per cent increase on the previous years. The intensity of packaging used to production output was 0.32 per cent which is 13.6 per cent behind the Group s target. The Group uses packaging only to the extent appropriate, for example, to ensure safe handling, storage and transport of its products and to minimise damage to the product and hence waste. In addition, packaging may be used to provide health and safety information to prospective users of the products and instructions on installation. Packaging principally comprises timber pallets and polythene. The Group continues to concentrate on the reduction of timber and plastic which represent 88 per cent and 11 per cent respectively of the reported packaging tonnage. During the year the Group s KPI was affected by the sale of a substantial part of its aggregate division in This had the effect of reducing the production output with no associated reduction in packaging, resulting in an overall increase of the Group Packaging intensity in A significant increase in the timber packaging usage was associated with the importation of natural stone products. The Group s Timber and Paper policy is to obtain pallets from FSC accredited suppliers where available. During the year the Group has extended a trial of pallet repatriation which has the potential to reduce its timber impact. The number of pallets being repatriated in 2014 represented a saving of nearly two per cent of the Group s UK timber packaging. Work continues on a trial to reduce the film thickness of polythene shrink-wrap which it is envisaged will reduce material usage and energy because it can be applied at lower temperatures. This KPI is affected by product mix, as the Group offers a wide range of landscaping products each of which have their own unique packaging requirements. 11
12 Suppliers and Contractors The Group has an effective Procurement Policy in place. The policy provides a framework which all employees engaged in procurement activities are expected to operate. It contains a clear statement with regard to Marshalls commitment to responsible sourcing. The Group will continue to work with our key suppliers to ensure they have appropriate management systems to minimise risk and environmental impacts in place. Where significant risk is identified with a supplier, a rigorous audit will be carried out. Marshalls Anti-Bribery Code reinforces policies and procedures already in place and communicated to external suppliers and contractors as well as within the organisation. Environmental Impact of Products The Group maintains its policy of producing products intended for a long life with low maintenance. Marshalls is a world leader in terms of the number of its products (over 2,000) having a measured carbon footprint (using the Publicly Available Specification 2050:2008, Specification for the assessment of the life cycle greenhouse gas emissions of goods and services ), all of which have been verified by the Carbon Trust. It is expected that the data obtained through this process will enable the business to focus on energy savings throughout its supply chain. The results are available online for our customers to use in their selection of most suitable product for their project. Revised data has been used with PAS2050:2011 and the results should be available early in to also include United Kingdom quarried natural stone paving and masonry. The products have all been rated as Very Good. The Group s products are considered to have low environmental risk and in the majority of cases are readily re-usable and recyclable at the end of their life. The Group is working on initiatives, within its industry, whose aim is to reduce the environmental impact of its products. Through its membership of the Mineral Products Association British Precast it is funding work on Environmental Product Declaration to BS EN and a Resource Efficiency Action Plan in association with WRAP. During 2014 the Group completed a re-certification of its products to the Building Research Establishment Responsible Sourcing Standard BES6001 extending the scope from its concrete paving and walling products 12
13 Sustainability OH SAS Social Ethical sourcing Community responsibility BS EN ISO PUBLIC AVAILABLE SPECIFICATION 99 UNITED NATIONS GLOBAL COMPACT MARSHALLS SUSTAINABLE BUSINESS MODEL Environmental BLUEPRINT FOR CORPORATE SUSTAINABILITY LEADERSHIP Water use CO2 and CO2e Biodiversity Legal Safety Waste to landfill FTSE4 GOOD MEMBERSHIP Economic Total shareholder return Customer service index BS EN ISO 9001 The Group has a sustainable business plan and has set KPIs for the key areas of this plan. It addresses economic, social and environmental aspects of Marshalls operations underpinned by the development of management systems recognised by an independent third party ( BSI ). The Group publishes targets, progress and data on its website at to communicate its agenda on the triple bottom line of environmental, social and economic issues. The aim is to have a platform which allows interested stakeholders access to the latest information on our activities. Marshalls is an active member of the Mineral Products Association British Precast ( MPA British Precast ) Sustainability Committee and a signatory of the Precast Sector Sustainability Charter. The business is also a signatory to, and an active member of, the Sustainable Concrete Forum. Land Management During 2014 all development projects were either located on brownfield land, within Marshalls sites, or acquired on-going operations. Environmental Awareness and Training The Group recognises the need to raise the environmental awareness and competencies of its employees and has continued with an energy management poster campaign aimed at improving the energy culture across the Group together with Toolbox Talk presentations. Regular shared practice meetings, involvingsafety, Health and Environmental administrators from sites are undertaken. These meetings promotes and communicate best practice in relation to environmental management across the Group. Drivesys Riven Stone 13
14 Biodiversity Target to maintain legal compliance The Groups biodiversity target is to focus on maintaining legal compliance and be receptive to opportunities that arise to work collaboratively on projects within our ownership. The Group has partnered voluntarily with the Yorkshire Wildlife Trust s Loving Your Local Limestone Project, to improve an area of magnesium limestone grassland in South Yorkshire. During 2013 the land was fenced, water drinking points provided and species rich green hay spread to improve a more diverse sward and flowers. On ten acres of quarry restoration land in Halifax, the business baled hay from adjoining fields and spread the hay over the restored land to encourage local seeds to grow. During the summer of 2013 patches of yellow hay rattle had appeared, indicating the success of the project. With lessons learnt, a similar technique may be used on other areas of restoration. Marshalls is a corporate member of The Royal Society for the Protection of Birds ( RSPB ) and has been working with the RSPB and Natural England to improve the habitat for the Twite (a small brown finch closely related to the Linnet) on land adjacent to one of its quarries in the south Pennines as part of its planning conditions. The RSPB officer advised the team on drainage which was carried out in 2013 with further improvements being undertaken in Feeding ground for the Twite 14
15 Legal compliance There were no environmental prosecutions at any of Marshalls operating sites during Verification This Environmental KPI Report has been audited by a qualified verifier on behalf of BSI. On the basis of the work undertaken, it is considered to be a fair reflection of the environmental performance of the organisation during 2014 and contains no misleading information. by 15
16 Landscape House, Premier Way, Lowfields Business Park, Elland HX5 9HT Telephone: DMD_35638
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