ST IVES GROUP ENVIRONMENTAL REPORT 2017
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1 ST IVES GROUP ENVIRONMENTAL REPORT 2017 Current Position St Ives believes that socially responsible products and practices are not only good for the environment, but are also essential to long-term profitability and sustainability. St Ives is therefore committed to continuous improvement in its environmental performance and accepts that its responsibilities with regard to environmental protection rank equally in importance with other key business objectives. The Board is responsible for setting the Group s Environmental Policy. What we are doing We continually monitor and work to reduce the Group s carbon emissions, waste sent to landfill and water consumption. CO 2e (Greenhouse Gas) Emissions We report our CO2e emissions in line with the requirements of the Companies Act 2006 (Strategic Report and Directors Report) Regulations In doing so we have adopted the following methodology: a) An operational boundary approach has been applied on Scope 1 and Scope 2 emissions in the UK using DEFRA s Standard Set conversion factors for (b) Where actual energy consumption data cannot be obtained we have estimated emissions, prorata, based on the data recorded by similar sites in the Group. Using this methodology, the estimated emissions from these sites equate to 0.4% of the Group s total emissions. c) Scope 3 Emissions are not reported on as they are outside our operational control. The Board will, however, keep this under review. d) This reporting year s emissions from The App Business are included meaning all subsidiary business are now included in this report. Performance 2016/2017 Our Scope 1 and Scope 2 CO2e emissions and our CO2e intensity measure (which is grams of CO2e per of revenue) to 28 July 2017 are shown below: Scope 1 and Scope 2 Emissions: Scope 1 emissions from activities owned or controlled by the Group: 3.1 thousand tonnes ( ). Scope 2 emissions associated with our consumption of purchased electricity, heat, steam and cooling: 10.5 thousand tonnes ( ). CO2e intensity measure: Set at kilograms per of revenue: Group: 33.9 ( ) Strategic Marketing: 4.0 ( ) Marketing Activation: 26.9 ( ) Books: ( ) Climate Change Levy The Group s manufacturing sites participate in Climate Change Agreement (CCA) scheme. CCAs are voluntary agreements that allow eligible energy-intensive sectors to receive up to 90% reduction in the tax on energy delivered to non-domestic users in the United Kingdom, recorded as Climate Change Levy (CCL). To benefit from CCL, reduction eligible industries have to commit to specific energy efficiency targets agreed with government, which St Ives is successfully managing. 1
2 The Group s environmental KPIs Strategic Marketing The offices of businesses in the Group s Strategic Marketing segment, and the Group s London head office, have minimal effect on the environment. Nevertheless, we apply good house-keeping practices such as segregating waste for recycling; the use of timers and low voltage lighting where practicable; and managing the consumption of photocopying paper. The Group also has the same KPI s in place as for the manufacturing sites (with the exception of VOCs which is only used in the manufacturing process). At 28 July 2017 these sites were: Strategic Marketing Amaze Ltd Manchester; Liverpool and Digital marketing London Branded3 Search Ltd Leeds and London Online search and digital marketing Fripp, Sandeman and Buckinghamshire Retail and property consultancy Partners Ltd The Health Hive Group Ltd, London and New York Healthcare strategic consulting the Health Hive US LLC Incite Marketing Planning Ltd, Incite Marketing London; New York, Singapore and Shanghai Consumer insights and market research Planning Singapore Pte Ltd, Incite New York LLC and Incite Marketing Planning (Shanghai) Co. Ltd Occam DM Ltd Chilcompton, Bath Data & marketing solutions Pragma Consulting Ltd London Retail & consumer markets consultancy Realise Ltd Edinburgh and London Digital marketing Response One Ltd Bath Data-driven direct marketing Solstice Consulting LLC and Illinois; New York and Mobile first marketing & technology Solstice Mobile Argentina Srl Buenos Aires The App Business Ltd London Mobile services consultancy The charts below show that Energy usage and CO2e increased, year-on-year across these sites. This was due to the inclusion of The App Business for the first time. 2
3 By their nature, Marketing Activation and Books activities both impact the environment and the application of the Group s Environmental Policy is intended to minimise that impact. In addition to CO2e emissions, we measure and manage the following: Energy consumption Waste management Water consumption Use of volatile organic compounds (VOCs) A good environmental performance not only contributes to the long term sustainability of the Group, but it also makes good commercial sense to measure and seek to minimise the production of nonrecyclable waste and excessive use of water or energy all of which are costs which cannot be converted to sales revenue from our clients. In addition, the Group s reputation would be at risk if its environmental performance was not adequately and responsibly managed or the law or regulations breached. In order to achieve our aims and objectives, all St Ives manufacturing sites within the Marketing Activation and Books segments have established Environmental Management Systems to ISO 14001:2004 standards. All St Ives businesses holding the ISO14001:2004 certification are currently working towards transition to the new ISO14001:2015. This will be completed within the given timescales. Our Books division has completed this transition during FY Marketing Activation St Ives Marketing Activation segment comprises: our Exhibitions and Events business, Service Graphics; our Point-of-Sale specialist, SP Group; our Print Management business, St Ives Management Services (SIMS); and our Field Marketing business, Tactical Solutions. At 28 July 2017, the Marketing Activation manufacturing sites were: Subsidiary Service Graphics Ltd Chessington, Surrey Exhibition and events displays Service Graphics Ltd Govan, Glasgow Exhibition and events displays Service Graphics Ltd Skelmersdale, W. Lancashire Exhibition and events displays Service Graphics Ltd Nottingham Exhibition and events displays SP Group Ltd Redditch, Worcestershire Point-of-Sale materials Tactical Solutions Ltd Ewloe, Wales Field sales & marketing (St Ives Management Services Ltd is a non-manufacturing print and process management company based in offices in London EC4.) The charts below, show improvements that these sites have made, year on year, in reducing CO2e emissions, Energy Usage, Water consumption and Waste to Landfill. 3
4 Books The Clays book printing business forms a standalone Books segment, separate to Strategic Marketing and Marketing Activation. At 28 July 2017, the books manufacturing sites were: Subsidiary Site Address Production Activity Clays Ltd Bungay, Suffolk Book production services The charts below show the Energy Usage, CO2e emissions and water consumption for the Books segment. Energy usage has increased from last year as Clays uses more energy hungry machinery and it is expected this will continue to increase year on year due to the installation of the new digital printing presses. The CO2e chart shows a decrease from the previous year due to a reduction in the Environment Agencies conversion factors which calculate the CO2e emissions from the total electrical energy consumed within the given process. Water consumption has decreased year on year. A chart displaying the waste sent to send to landfill has not been included as Clays Ltd sent no waste to landfill during the year. 4
5 The Group The Group s expansion into strategic marketing services has opened up, by collaboration between SIMS and our newly-acquired businesses, opportunities to reduce print, postal drops and print waste by offering multi-media alternatives in addition to the more traditional data capture; data analysis and data cleansing services. St Ives Management Services will continue to seek to work with new clients to reduce print volumes by avoiding duplication and re-engineering products to use greener material, where the client agrees. The Group is using its centralised procurement function to leverage St Ives purchasing power to, amongst other aims, seek to achieve improved environmental standards from its suppliers, whether nominated by clients themselves, or selected by St Ives. St Ives is committed to continuous improvements in all its reported environmental KPIs during 2017/2018. There has been a slight increase in the Group s energy usage due to an increase seen in both the Books and Strategic Marketing segments, as explained above. The Group chart below shows an improvement in the emissions to atmosphere year on year, which is driven by an improved performance in the Marketing Activation and Books segments and a change to the Environment Agencies conversation factors. The rise in Strategic Marketing s emissions follows the inclusion of The App Business for the first time. Two further charts show that the Group s waste sent to landfill has continued to fall and the Group s water consumption continues to follow a downward trend. 5
6 This year s report shows only water consumption from our Marketing Activations and Books segments as the consumption from our Strategic Marketing segment reached a level of immateriality and as stated in last year s report is now excluded from this report. The Group s manufacturing sites adopt the principles of the Carbon Trust Carbon Management Programme and continue to implement site-specific carbon reduction programmes, including: Improved process energy control; Improved waste stream management; During refits, the replacement of conventional fluorescent light fittings with high efficiency, low energy fittings; Improved compressed air management; and Replacement of fixed speed electric motors with variable speed drives. All manufacturing sites that use paper or board as the primary printing substrate have Forest Stewardship Council (FSC) certification. FSC certification enables these sites to: Identify and control their wood sources, including FSC certified, reclaimed/recycled material and non-fsc certified wood; Communicate business-to-business about the content of their wood and wood fibre products; and Use the FSC logos to promote their products in the marketplace. We set out below the Group s overall performance against its environmental KPIs: 6
7 Group carbon emissions were reduced by 1,114 tonnes of CO2 (7.5%) year-on year in 2016/2017, compared with a 10.4% (1,711 tonnes) reduction in 2015/2016. Total Energy usage increased in 2016/2017, by 4.7% from 32.06MkWh to 33.58MkWh. Waste sent to landfill decreased by 7% (11.47 tonnes) year-on year in 2016/2017 to tonnes compared with tonnes in 2015/2016. This reduction is due to a better understanding of the end waste stream processes utilised by the Group s waste collection and management contractors. Water consumption fell 18.7%, year on year, from 57,866 to 47,021 cubic meters, compared with a 1.8% (1,048 cubic meters) reduction in 2015/2016. The Group s Environmental Policy Statement is reviewed on an annual basis and circulated throughout the business. The Policy Statement includes the following environmental objectives: To ensure that its products and their manufacture by member companies will not be harmful to people or the environment; To strive continually to improve the efficiency of the Group s operations so as to minimise the use of materials, the generation of waste and to prevent pollution of the environment; To comply with all relevant environmental regulations and legislation; and To operate the Group s facilities in a responsible and cooperative fashion in the communities in which it resides. Key Environmental Issues With reference to the requirements of environmental legislation and the desire to minimise the impact of the Group s operations on the environment, the following have been identified as significant environmental issues for the Group and guide the Board s decision on which KPIs to set: The control of emissions to atmosphere at all manufacturing sites with particular emphasis on heat set web off-set processes. Where appropriate and in accordance with the requirements of the Pollution, Prevention and Control Regulations 2000 (PPC), the control of emissions to air, land and water from all qualifying UK manufacturing sites. Improvement in the energy efficiency of all aspects of the Group s businesses, with particular emphasis on the manufacturing process at UK Climate Change Agreement (CCA) sites, with the ultimate objective of minimising the Group s carbon emissions. Compliance with all relevant legislation with respect to the storage, transportation and disposal of hazardous waste with specific reference, in the UK, to the Hazardous Waste and WEEE (waste electrical and electronic equipment) Regulations. Minimisation of the quantity waste generated by all sites and the maximisation of the recycling or recovery of such waste. Organisation This report covers all subsidiaries of the Group and their businesses carried out within the Strategic Marketing, Marketing Activation and Books segments. Each subsidiary s CEO or Managing Director is responsible to his or her local board of directors and is answerable to the St Ives plc parent Board for environmental matters. Environmental advice and support to all of the sites is provided by the Group Health, Safety and Environmental Adviser who reports to the Group s Chief Executive. Environmental Management Systems The Group s Health, Safety and Environmental Adviser has overall responsibility for overseeing the development and maintenance of Group and site environmental procedures and for reporting to the Board. Subsidiary company CEOs and Managing Directors are responsible, with assistance from site-specific Health, Safety and Environmental Advisers and the Group Health, Safety and Environmental Adviser, for ensuring that their sites comply with the Group s standards and legislation. Other Group procedures are developed and defined as and when appropriate. 7
8 Key environmental impacts The Group defines environmental impact as: any change to the environment, whether adverse or beneficial, wholly or partially resulting from the Group s activities, products or services. The significant environmental impacts for the Group are as follows: Emissions to air Volatile Organic Compounds (VOCs). All solvents are monitored in line with the Part B permits held at the manufacturing sites. Solvent based inks are used at all of the manufacturing sites. All of the cold set web presses, use only petroleum based inks. The sheet fed presses are capable of running with vegetable oil based inks. Solvents are also used for cleaning plates, blankets and rollers. Due to the changes in customer requirements and the general improvements in the printing processes the volume of VOC s used in the manufacturing sectors has seen a year on year reduction.. Solvent management of press room chemicals has been instigated at all sites including the use of non-voc solvents wherever practicable, lidded solvent cans and lidded bins for rags. Manufacturing sites all operate under part B permits where applicable and are confined to operating conditions defined in their authorisation/permit. Carbon dioxide The use of energy either directly (e.g. burning fuel in ovens or in vehicle engines) or indirectly (e.g. use of electricity) produces carbon dioxide. The Group is committed to reducing its carbon emissions as far as is practicable by implementing low carbon projects throughout the Group. The Group consistently monitors its carbon emissions from all sites and reports in compliance with all current carbon management legislation. Dust Dust collected by waste extraction plants within the Group s manufacturing sites is captured by filtration of the exhaust air. Emissions to water Wash water from the plate making process and from various other washing activities in the Group s manufacturing businesses is disposed of to drain and is routinely monitored to ensure that the concentration of any contaminants present is within the statutory limits. All sites which discharge waste process water have been issued with a trade effluent licence and are confined to the conditions defined in their consent to discharge. Wherever practicable, recycling of water is designed into all new processes. All sites on which hazardous liquids are handled or stored have established procedures for the containment of leaks and spillages in order to prevent contamination of ground water and water courses. All waste liquids classified as hazardous waste are collected for treatment and disposal by a licensed waste management company. Waste disposal to landfill sites The printing and finishing process generates waste material. The manufacturing sites quality and environmental management systems include waste minimisation programmes designed to reduce the amount of waste generated at source. All sites operate recycling procedures for all principal waste streams including plastic, wood, paper, cardboard waste and aluminium printing plates. Hazardous chemical waste is collected for specialist recovery and disposal which includes, where practicable, the recycling of non-water miscible organic liquids and the recovery of silver from photographic waste streams. Use of Energy use of natural resources All sites have established energy management policies and programmes as part of their site Environmental Management Systems. Energy consumption is monitored and recorded on a monthly basis. Noise and Vibration The design of any new factory or alteration or extension to an existing factory includes consideration of the potential noise emission in consultation with the appropriate regulatory authority. Noise emissions from new equipment are evaluated prior to purchase and appropriate measures taken to either minimise excessive noise emission at source or to contain it. Goods vehicle movements at the majority of the Group s sites are normally restricted between hrs and hrs. The use of 8
9 rapid-action roller shutter doors is intended to ensure that doorways are normally kept closed in areas when there is a potential for nuisance noise. The use of such doors also reduces heat loss from buildings. Use of water Wherever practicable the recycling of water is designed into all new processes. Use of raw materials The use of raw materials within the manufacturing process has an impact on the environment in that it uses up natural resources. The most significant such impact arises from the use of paper. All sites have adopted measures to monitor and minimise the use of raw materials consistent with changing customer specifications. Wherever practicable, paper used is manufactured from pulp which is derived either from managed, sustainable, forests or from post consumer waste (recycled paper). Environmental Performance Indicators All sites record against the Group s KPIs of the usage of electricity and gas. Applicable sites report against water and the quantities of waste generated. Energy Efficiency The qualification criteria for Phase 2 of the Carbon Reduction Commitment (CRC) was 6GWh of electricity from settled half-hourly meters. St Ives evaluated the consumption within the Company during the qualification period (April 2012 to March 2013) and once exempt supplies, covered by a valid Climate Change Agreement (CCA) had been removed, the total fell below the qualifying threshold. St Ives will not be required to participant for the duration of CRC Phase 2, which runs until March Currently, the St Ives Group has two CCAs in place. One at the SP Redditch facility and one at the Clays book production facility. An operator that has a CCA will measure and report its energy usage and carbon emissions against agreed targets over four, two-year target periods. If the operator meets its targets at the end of each reporting period, it continues in the scheme and is eligible for the discount on the Climate Change Levy (CCL). The CCA targets in place are voluntary agreements made by UK industry sectors and the Environment Agency to reduce energy usage and CO 2 emissions. In return, operators receive a discount on the CCL, a tax added to electricity and fuel bills. The Environment Agency administers the CCA scheme on behalf of the whole of the UK. For operators who hold a CCA, the CCL will be reduced by: 90% on electricity bills 65% on other fuels At the SP and Books (Clays) sites the targets are currently being met. The Books site at Bungay has now entered into a NOVEM agreement with the Environment Agency which allows for two separate Specific Energy Consumption (SEC) targets to be set for the two different printing processes namely its Lithographic printing process and its digital printing process. This change in agreement was due to the changes in the manufacturing process from lithographic printing to digital printing. This change allows the business to meet publishers requests for lower volume press runs and a virtual print on demand service. Packaging usage Under the requirements of the Producer Responsibility (Packaging Waste) Regulations 1997, the Group manufacturing sites record the use of packaging material and the Group is a member of a compliance scheme which ensures compliance with the recycling targets set by the Regulations. October
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