Our Environment, Health and Safety credentials
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1 Our Environment, Health and Safety credentials electrocomponents.com Becoming first choice
2 Contents Messages from Lindsley Ruth & Debbie Lentz Environment, Health & Safety (EH&S) policy Target Zero EH&S team structure & support Meetings & forums Global standards Performance management Awards & certifications Near miss reporting Corporate responsibility Energy treasure hunts Earth week 2018 activities About Electrocomponents Electrocomponents is a FTSE 250 company listed on the London Stock Exchange that has been serving engineers and procurement specialists for over 80 years. Operating under the trading brands of RS Components in the EMEA and Asia Pacific regions and Allied Electronics & Automation in the Americas. With operations in over 32 countries we offer more than 500,000 products sourced from over 2,500 leading suppliers Over a million customers worldwide count on us to deliver the high-quality parts they need on time and on budget. 2
3 A message from Lindsley Ruth, CEO When we have so much focus on fundamentally transforming our business, it s easy to lose sight of what s really important the health and safety of our people and ensuring that we operate safely in our pursuit of our commercial targets. Our safety culture is very strong, and the number of accidents is low, but we absolutely have to deliver a year-on-year improvement. For me, any accident is one accident too many in our business. It is essential that we all fully engage in health and safety to drive this performance so we can achieve our Target Zero. A message from Debbie Lentz, President Global Supply Chain The health, safety and wellbeing of our employees is critically important. I m very proud of the strength of our safety programmes. We still have lots of opportunities to embed health and safety into the core of our culture where we look after each other to ensure a safe work environment for all. I am excited about our rebranding of Target Zero that will remind us every day to keep ourselves and others safe. 3
4 Environment, Health and Safety (EH&S) policy commitment At Electrocomponents Plc, EH&S management is an integral part of our day-to-day activities. Good EH&S management safeguards not only our employees and others who may be affected by our activities, but also our environment by actively striving to prevent emissions, other sources of pollution and resource depletion. At all times, operations throughout the world will be carried out in such a manner that ensures our workforce is kept safe, looks after each other and, at the same time, helps achieve our Target Zero goal. All Group Companies, contractors and joint ventures under our operational control will manage EH&S in line with this policy. 4
5 Policy All employees will support our commitment and policy. We will have a single Control Framework which includes Group standards, which is consistently deployed and referred to across the Group. Local operations will observe the Control Framework and have local processes in place to ensure that operations are completed in accordance with all compliance obligations. We will measure our performance and set annual milestones to continually improve both our safety and environmental performance. We will strive for zero accidents (Target Zero). We will measure the impact of our own energy usage and the fuel used by our delivery partners. We will manage safety through a framework of EH&S forums and meetings which will be led by senior leaders. Governance will be achieved via local management teams and will escalate up to and include the Board of Directors. We will include safety performance in appraisals, one to ones and general communication with all our employees, but especially the leadership community. We will take action to review our performance in appraisals, one to ones and general communication with all our employees, but especially the leadership community. We will review our commitment and policy on a regular basis. The Senior Management Team and all levels of management give full support to this policy, which will be reviewed on a regular basis. Lindsley Ruth CEO 5
6 Target Zero Target Zero is the programme Electrocomponents uses to drive first class environment, health and safety and wellbeing performance across the Group with the aim of: Zero accidents Zero impacts to the environment Zero health and wellbeing issues We want all employees to be safe at work and to be able to go home safe and well. We want employees to feel empowered to challenge any issues that affect their health, safety and wellness. We aim to use best practice in reducing energy from our operations, which will reduce our overall burden on the environment, and to use renewable energy where possible. We will continue to reduce waste from our operations and where waste is produced we will divert this from landfill and use current strategies to reduce, reuse and recycle all waste streams. As a key part of our business improvement strategy we use Target Zero as the vehicle to continuously improve environment, health and safety in our business. 6
7 EH&S team structure & support Having a global team that drives and supports EH&S is an important element of Target Zero. Working with senior management and site leaders not only shows commitment to the EH&S programme but it also demonstrates that Target Zero is a significant business initiative. Good EH&S management safeguards not only our employees and others who may be affected by our activities, but also our environment by actively striving to prevent emissions, other sources of pollution and resource depletion. At all times, operations throughout the world will be carried out in such a manner that ensures our workforce is kept safe, looks after each other and, at the same time, helps achieve our Target Zero goal. The EH&S team is led by the Vice President Global EH&S, reporting to the President Global Supply Chain who acts as the executive member for EH&S. There is a team of trained EH&S professionals working in all global markets. The overall team consists of nineteen employees covering varying roles, for example: Environmental Manager Global Safety Standards Manager EH&S Manager Occupational Health Advisor H&S Advisor H&S Coordinator Facilities Safety & Compliance Manager Training & Health and Safety Manager To further supplement these nineteen full-time roles, each location across the Group has at least one EH&S delegate that deals with the day-to-day activities associated with EH&S, from reporting and training to driving the Target Zero programme. In the larger locations there are EH&S delegates in each department or floor. Locally these EH&S delegates are further supported by nominated fire wardens and first aiders. This overall structure and support network continues to drive a consistent message and continually increases the focus and improvements on EH&S. 7
8 Meetings & forums Leadership from our operational leaders is a further significant part of Target Zero. Whereas EH&S is driven centrally by the VP Global EH&S, the local delivery of the programme is ultimately the responsibility of the regional leaders and their management teams in conjunction with the local EH&S delegates. In order to ensure our EH&S performance and consistency a simple programme of forums is linked together on a quarterly schedule. These forums are held during the first month of each financial quarter (January, April, July and October). These forums review performance for the prior three months and year to date. Each forum is chaired by the regional senior management and supported by the local EH&S manager or delegate. Further to these, location specific EH&S committee meetings are held each month which feed into the quarterly regional forums. The Global Framework requirement is for a review of Group performance on a quarterly basis. This is chaired by the President Global Supply Chain with the VP Global EH&S acting as secretary. Further attendees to this forum are operational leaders and regional EH&S managers. The information from the Global EH&S Forum is submitted to the Senior Management Team and onto the Board of Directors as required. Monthly EH&S Committee Meetings Regional Quarterly Forums Global Leaders Quarterly Forum Senior Management Team & Board of Directors 8
9 Global EH&S standards There are no internationally recognised EH&S standards that apply to all countries, therefore, to ensure risks are managed effectively and consistently all Group locations work to Electrocomponents Global EH&S standards as a minimum. The overall objective of these standards is to drive consistency within all of our operations in order to reduce risk to our employees and our activities. Each standard includes a common requirement for the local operation and then states the minimum requirement expected by Electrocomponents. Where local legal requirements and Global EH&S standards conflict the more stringent requirement is applied. A key part of adherence to the standards is held within the annual verification and assessment process. Every local operation makes a submission to confirm that we are achieving compliance to the Global EH&S standards. This process is further supplemented by our Group audit team reviewing adherence to local EH&S requirements and the standards during their regular business process audits. This overall structure and support network continues to drive a consistent message and continually increases the focus and improvements on EH&S. Global EH&S standards cover subject areas such as the following: Fire Safety First Aid Risk Management Electrical Safety Waste & Energy 9
10 Performance management Objectives and annual milestones help to underpin the vision of Target Zero. While we have the ultimate aim of Target Zero, we are conscious that to achieve this we need to have regular performance milestones. Our Key Performance Indicators (KPI) are All Accidents and CO 2 Emissions from our building energy use and employee travel. These are reported on a monthly basis and milestones are set against these each year based on prior year performance. These KPIs are underpinned by further Performance Indicators (PI) of Lost Time Accidents, Reported Near Misses and Waste to Landfill. The KPI milestones are region specific and contribute to the overall Group milestones. Monthly dashboards are created showing progress towards our Group and regional milestones. These dashboards are shared with our business leaders and colleagues around the globe to communicate the importance of Target Zero and where we are on our journey. GROUP MONTHLY HEALTH AND SAFETY REPORT JANUARY 2018 Performance for month Regional performance hub Global performance Jan-18 Month FY18 Target FY18 All Accidents < <11.00 Lost Time < Lost Calendar Days 1.05 <1.89 Accident FY18 YTD Rate per 200K Supply Chain Operations Accident Rate per 200K 17% 13% 1% 2.17 < % Jan-17 Mar-17 LTA/Month May-17 All Accidents Jul-17 Sep-17 Nov-17 Jan-18 Northern Hub Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Central Hub Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Southern Hub Fire safety Northern Hub Central Hub Southern Hub Emerging Markets APAC Allied Group (specialised 100% 100% role) training 100% 100% Manual Handling 100% 100% Training 100% 100% Safety Management Training 100% 100% 100% 100% Driver Safety Training 100% Near Misses Reported % Accidents by type January % Slip trip or fall 4 Handling carrying or lifting injury 1 Cuts 1 15% 1% 3% 1% 14% Near miss by type January % 11% Slip trip or fall 4 Manual handling Cuts Walking into objects Unising machinery Head/Electrical/Chemical burn Fork Lift Truck Other Struck by objects Fall from height Jan-17 Mar-17 LTA/Month May-17 All Accidents Jul-17 Sep-17 Nov-17 Jan-18 Emerging markets Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 APAC Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Allied Jan-18 Open LFE Actions Safety critical maintenance 100% 100% 100% 100% 100% Road Traffic Incidents on company business Third party involved - no injury Good Adequate Not Acceptable DID YOU KNOW Most common LTI and near miss Example monthly EH&S dashboard WHAT S COMING HIGHLIGHTS 10
11 Awards & certifications Across the Group we hold a number of certifications to: ISO14001 Environmental Management OHSAS18001 Occupational Health & Safety Management Our locations that have been successfully accredited to these standards are shown below. Location Accreditation Accreditation Body Austria ISO14001 Quality Austria France ISO14001 BSI France OHSAS18001 BSI Germany ISO14001 BSI Germany OHSAS18001 BSI Italy OHSAS18001 BSI Spain ISO14001 BSI UK (excluding London) ISO14001 BSI UK (excluding London) OHSAS18001 BSI In addition to these accreditations Electrocomponents, trading as RS Components, holds a number of other awards and honours which are shown below. 11
12 Near miss reporting A positive safety culture is underpinned by good reporting of all incidents that occur, however minor. While we have reporting of actual incidents covered in our KPIs, it is important that our employees understand the importance of near misses and how they can affect our overall performance. Near miss reporting was introduced a number of years ago, as the culture has grown so has the number of near misses. We do not have a specific target around the number of near misses, but we do ask for all employees to report near misses as they find them, so corrective actions can take place. Following the common theme of See it, Sort it and Report It all regions have seen growth in near miss reporting and a reduction in accidents. Analysis of type and number of near misses is reported each month on the EH&S dashboards. This data is communicated to our employees and positively reinforced as a significant part of our EH&S programme. By making the reporting of near misses a normal part of our culture, we are helping to reduce the number of accidents and this is in turn accelerating our journey to Target Zero. 12
13 Corporate responsibility Being a responsible organisation is not only good business but also aligns to our vision of Target Zero. In order to demonstrate our responsibilities we undertake a number of activities each year to ensure this. Electrocomponents has participated in the annual Carbon Disclosure Project (CDP) for 10 years. As an extension to CDP the Group has recently undertaken a project to offset carbon emissions. Earth Day (22nd April) is a key date in the calendar of Electrocomponents. In 2017 the Group was the top company out of 44 in the FTSE 350 Information Technology sector with A- This was enabled by purchasing trees to be planted in local communities such as schools ancient woodlands public parks Employees from around the Group celebrate Earth Day to raise the awareness of the environment with local activities and fundraising. 13
14 Energy treasure hunts In a continuing drive for lower CO 2 emissions and to retain our place at the top of our sector with CDP, we have instigated a programme of energy treasure hunts across our larger facilities. The treasure is defined as the money we could save by implementing better programmes in order to further reduce our energy consumption. Treasure hunts have led to the following measures being implemented: LED lights being installed in our larger facilities with a further programme funded for more LED lights to be installed in the future Energy monitoring devices being installed in our distribution centres and our RS Local branches Heating & lighting management increased to ensure unoccupied areas are not using unnecessary energy 14
15 Earth week 2018 activities 15
16 Electrocomponents Fifth Floor, Two Pancras Square London, N1C 4AG electrocomponents.com
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