Corporate Social Responsibility

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1.0 Work Place 2.0 Community 3.0 Environment Corporate Social Responsibility 4.0 Market Place

Contents Introduction 1.0 Work Place 2.0 Community 3.0 Environment 4.0 Market Place Introduction Direct Rail Services Corporate Social Responsibility (CSR) Policy The Direct Rail Services (DRS) Executives and staff are fully committed to managing our business in a way that enhances the positive impact and minimises the negative social and environmental impacts of our activities. Vision Our aim is to be recognised as a responsible company and employer that balances the social, environmental and ethical issues generated as a result of our activities. We will continue to employ best practises without compromising our ability to deliver Safe, Secure and Reliable rail freight services with commercial success. Strategy DRS Corporate Social Responsibility strategy is to be a good corporate citizen. We aim to conduct our business in a fair and open manner through a porgramme of continuous improvement. To achieve these goals our priorities are as follows Work Place * Equality and Diversity * Health and Safety * Training and Personal Development * Work/ Life Balance Community * Education * Community Enhancement * Well-Being * The Environment Direct Rail Services Kingmoor Depot Etterby Road Carlisle Cumbria CA3 9NZ www.directrailservices.com Environment * Environmental Policy * Sustainability of Supplies and Resource * Waste Minimisation/Managment Market Place * Stakeholder * Suppliy Chain Management * Customer Care

1.0 Work Place Our aim is to create a positive and rewarding culture at the work place. Equality and Diversity DRS is an equal opportunities employer and are fully committed to ensure that no employee or applicant receive less favourable treatment or is discriminated against in terms of age, sex, disability, sexual orientation, race or belief. Our recruitement policy is to employ personnel whose capability, experience and qualifications are appropriate to the positions available and to the duties and responsibilities expected of them. Health and Safety Safety is our number one priority. We are committed to achieving and maintaining standards of occupational health and safety - for all employees and contractors and also for members of the public who may be affected by our activities. We are certificated to OHSAS 18001 issued by BSI (British Standards Institution) which is an international health and safety management standards. All our operations and activities are undertaken in accordance with the current health and safety legislation, relevant codes of practice and our own Health and Saftey Policy. DRS heavily promote employee health and well being. We have themed healthy workforce campaigns which are on display on noticeboards in all our depots along with support from Human Resource department for staff returning to work after a period of illness. We also have a trained counsellor who can provide confidential advice to staff members. In addition, DRS has a generous private Health Care Scheme to assist staff with medical costs. Training and Personal Development Attracting, retaining and developing high calibre staff at all levels in the organisation is essential. New staff will start with an induction programme aimed at ensuring that all staff are equipped with the skills and knowledge to perform their primary duties effectively. We have an extensive competency management process in place to ensure our safety critical staff are assessed and maintain their high level of skill to undertake their duties. Office based staff have annual Personal Development Plans (PDP). The PDP is the individuals training and development plan that not only drive the individual s development and progression but also supports our business strategy and is indicative of DRS belief that the development of all employees is critical to the success of the business. Training opportunities are inclusive for all staff within the organisation. Work/Life Balance DRS recognises that the industry in which we work can at times be demanding and realises its responsibility to ensure staff manage their time in a sensible manner.to achieve this we offer a number of initiatives aimed at arriving a manageable balance between the demands of paid work and personal life. The issue of work lide balance is becoming increasingly important to employees. DRS recognises this and aim to facilitate a healthy balance for all our employees through arrangements such as special leave, maternity/paternity/asoption leave, healthy workforce iniatives etc. We also play an active part in community iniatives and support a number of charities and causes. Staff are encouraged to participate in such iniatives and often support these activities through independent participations and company donations.

2.0 Community DRS has an ongoing commitment to our corporate social responsibility, which is reflected in the extent of community work undertaken by the company. We recognise the challenges that the communities faces and our engagement programme holds a particular focus in tackling some of these challenges. Education We are a rail freight operator with specialised skills and expertise and we wish to give back to the community in which we do business by sharing some of the specialist skills we have through the sponsorship and donations requirement to support mentoring, apprenticeship schemes and school placements. Community Enhancement We aim at establishing effective relationships within the local community to facilitate mutual understanding. Our engagement criteria remains flexible to enable us to support different types of project across all the locations in which we operate. Our community enhancement projects funding focus on creating social diversity, reducing crime rates, sporting activities to encourage social inclusion and community participation. Well-Being We have a strong in-house focus on introducing healthy workforce and awareness campaigns. We extend this focus giving back to the community through participating in fundraising awareness events as well as supporting sporting activities to encourage healthy living through exercise, health awareness themed events etc. time to clean up litter in community parks. We also pay particular attention to avoidance of noise and air pollution by ensuring we operate in compliance of the regulations that are in placed. DRS also has a number of charities which we lend our support both through volunteering and financial donations. Through our Sponsorship and Donations Committee we aim to provide and manage the financial give back to the local communities around the sites where DRS operate in a consistent way through sponsorships, charitable giving and employee participation in local and national fundraising events. In addition to our community engagement programme, we hold an annual charity open day for members of the community and rail enthusiasts. The event is an opportunity for the local communities and supporters of our business to visit our depots and talk to staff members. Prior to any events at our depots, DRS is committed to being a good neighbour by informing local residents and businesses of our activities and making an effort to ensure we minimise any disruptions. DRS also supports other rail festivals and gala events throughout the country by providing locomotives for display. The Environment We intend to continue to focus upon how we Reduce, Re-use and Recycle. In addition we aimed to support projects that will generate positive impact on the environment for example DRS participated in a Big Clean Up Campaign through volunteering our

Environmental Policy Summary Waste Minimisation/Management 3.0 Environment DRS along with many other organsiations, acknowledges concern for the environment and we believe it should be an integral part of our business philosophy. The pursuit of economic growth and respect for the environment must be closely linked. Sustainable development is a responsibility that DRS takes very seriously and through collectively working with Governments, businesses, individuals and communities we can strive to fulfill this responsibility. Our stakeholders and customers are more aware of environmental issues and we want to demonstrate our commitment to these issues. As we enter into more partnering agreements we are being asked to show how we can contribute to their environmental objectives and demonstrate our own achievements. DRS has an environmental management system which is registered to ISO 14001. It demonstrates that our company-wide business management systems follow internationally recognised best practice methologies. Sustainability of Supplies and Resource Waste is a by-product of most business activities. DRS recognise the effects our waste can have on the environment and we acknowledge that our waste control and management procedures need to reflect this in a practical and achievable manner. Each capital project has to be assessed individually and strategy adapted to consider all environmental aspects. Reuse and Recycling - we have measures in place to reuse or recycle our used locomotive oils, office waste papers and cardboards, mobile phones, printer cartridges and scrap metals. We will continue to look at ways of reusing or recycling materials and to improve efficiencies on the consumption of these materials. Energy Saving Measures - DRS is fully committed to energy saving measures is all areas of our activities. We have enlisted the help of the Energy Savings Trust and Business in the Community to advise on energy efficiencies and has been working through a programme of implementation in different areas of the company. Rail Freight is recognised as a major benefit to the reduction of carbon dioxide emissions. The success of DRS in delivering rail services nationwide is clearly linked to the sucess of CO2 reduction to the environment. We are also working closely with the Rail Freight Group to apply best practice in fuel effieciency for our loco fleet. Our commitment to social and environmental responsibility is reflected in the way we manage our supply chain. Wherever possible, we make every effort to source materials that have the least detriment to the environment and are from renewable sources. Environmental protection forms an integral part of our company compliance procedure. Our locomotives are maintained to the highest order to minimise harmful emissions.

4.0 Market Place DRS runs our business with integrity and transparency, delivering value within clearly defined business principles. Stakeholders We conduct our operations in full compliance with standards approved by the Office for Civil Nuclear Security (OCNS) and other regulatory bodies such as Office for Rail Regulators (ORR). We understand how important it is to communicate with our stakeholders to understand their priorities and to discuss opportunities and challenges we face as a business, in order to make better decisions. feedbacks. Our first class customer care is further enhanced by our 24/7 control centre. DRS staff are on hand 24 hours a day to ensure that business operations are not interrupted and matters arising are dealt with promptly. We also have on-call staff who are available to assist when required. Supply Chain Management We seek to manage our supply chain through open and transparent communication with suppliers. We have sourcing initiatives in placed to ensure that suppliers where possible are selected locally to support local economy as well as reduced carbon footprints. Where this is not possible for specialist products, attempts are made to ensure control over specifications and standards. We understand and respect our trading partners and exercise fair terms of trading. Customer Care Our customers are our business and we pride ourselves in customer care. We have a team of dedicated account managers to ensure that customer requirements are met and service provisions are of the highest quality. We understand in all business operations, procedures are important to ensure that correct and appropriate actions are followed to ensure the smooth running of processes. In addition to operational processes, we have procedures in placed to handle enquiries and complaints ensuring staisfactory outcomes and measure positive