Environmental KPI 2013 - Marshalls · The Group’s Chief Operating Officer, David Sarti, is the Director responsible for the environmental performance of the Group. The Group’s

Environmental KPI 2013

www.marshalls.co.uk

INTERNAL STONE FLOORING AND TIL ING

Contents

Statement from David Sarti COO 3

Board Responsibility 3

Environmental Policy - Key Features 3-4

Environmental Management 4

Environmental Impact 4

Carbon 4-6

Water 6

Transport 7

Waste Reduction 7

Packaging 7-8

Suppliers and Contractors 8-9

Environmental Impact of Products 9

Sustainability 10-11

Land Management 11

Environmental Awareness and Training 11

Biodiversity 11

Legal Compliance 11

Verification 11

Marshalls plc group of specialist businesses

Environmental Report

Overall we consider that we have made goodprogress in reducing the intensity of the Group’senvironmental impact across a broad front.Virtually all measures show year-on-yearimprovements and indicate progress both in theshort term and towards the very long termobjectives set in accordance with UK Governmentand European targets.

A full review of the suite of environmentalmeasures and targets has been conducted in2012, with the next review now scheduled for2015. The long term nature of environmentalmanagement leads to targets which rollprogressively over a number of years and shortterm changes of direction would be inappropriatein any case.

It was intended to review and incorporatemeasures for Marshalls NV in 2012.Reprioritisation of resource during the year inresponse to general market conditions and otherchallenges resulted in this aspect of the planbeing deferred. Data for Marshalls NV, which wewould not expect to be material in the context ofthe Group as a whole, will be incorporated as soonas suitable resource can be allocated to the task.

There is a change to the basis of the emissionsdeclaration in this year’s report. We have adoptedCO2e as the unit of measure, in readiness for thatbecoming mandatory for FTSE listed companies.The change from CO2 to CO2e is just a conversion asother greenhouse gas (“GHG”) emissions fromMarshalls’ activities are insignificant and non-material.

Board ResponsibilityThe Group’s Chief Operating Officer, David Sarti, isthe Director responsible for the environmentalperformance of the Group. The Group’sEnvironmental Policy is approved by the Boardand is reviewed at least annually. The full text of

the Policy can be found on the Group’s websitewww.marshalls.co.uk/sustainability.

Environmental Policy - Key FeaturesTarget – To operate within the relevant legalframeworks and comply with appropriatelegislation.

• The Group has a commitment to achieving thehighest standards of environmentalperformance, preventing pollution andminimising the impact of its operations.

• All operations should meet or exceed therequirements of legislation and applicablebest practice. Where no legislation exists, bestpractice will remain an integral part ofMarshalls’ business strategy.

• The Group is committed to considering theenvironmental impacts associated with itsproducts throughout their life cycle.

• Policy is supported by monitoring andmeasuring environmental performance usingappropriate external guidelines whereverpracticable. Operating sites have assessed theenvironmental aspects of their activities, andobjectives and targets aimed at improving theoverall environmental impact of thoseactivities have been set. These are reviewedon at least an annual basis.

• Marshalls will continue to raise environmentalawareness within the Group through thedevelopment and training of its employeesand will communicate openly and consultwith customers, suppliers and otherstakeholders on relevant environmentalmatters.

• Marshalls strives to protect and enhancebiodiversity and natural habitats within itslandholdings where possible. The Group alsorecognises the need for sympatheticrestoration and after-use of quarry and otheroperational sites.

“Marshalls clearly understands the value to be derived from managing the business withdue regard for the environment. Notwithstanding the need to comply with relevantlegislation, there are benefits to be gained from reducing the use of scarce and costlyresources; maintaining good relations with the communities within which we operate and,increasingly, meeting our customers’ needs for environmentally sensitive solutions.“

This Environmental KPI report 2013 is an extract from the Marshalls plc Annual Report 2012 3

Environmental Report (continued)

• Marshalls considers the character of the localenvironment and the concerns of the localcommunity and other stakeholders in relationto its activities.

Environmental ManagementTarget – 90 per cent of Group productionmanufactured at sites operating an integratedmanagement system in accordance withPublicly Available Specification 99:2006 (“PAS99”) by 2012.

Marshalls exceeded its target, as during the year46 (2011: 32) sites were operated to the PAS 99specification, representing 97 per cent of theGroup’s manufacturing output. The Group’s newtarget is to maintain the 90 per cent measure until2020.

By the end of 2012 the Group had 54 operational*sites (2011: 54). Of these sites:• 51 (2011: 46) had BS EN ISO 9001:2008 Quality

Management Systems in place representing98 per cent of the Group’s manufacturingoutput;

• 48 (2011: 39) had BS EN ISO 14001:2004 forEnvironmental Management Systems in placerepresenting 97 per cent of the Group’smanufacturing output; and

• 50 (2011: 40) had BS OHSAS 18001:2007 forHealth and Safety Management Systems inplace representing 98 per cent of the Group’smanufacturing output.

In addition to these, the Group also had PAS 99-compliant management systems in place at itsGroup Laboratory and Marketing SupportDepartment.

* Operational is defined as a site in the UK with productionoutput.

Environmental ImpactThe business redefined its Key PerformanceIndicators in 2012 to increase the accuracy andmeasurability of its environmental initiativeswhile improving performance. These are referredto in the relevant section of this Report.

Explanatory notes have been included with thecharts.

Marshalls is a signatory to the SustainableConcrete Forum which published a new roadmap, with time-bound targets to 2020, inFebruary 2012. The Group reviewed its owntargets in line with its commitment as a signatory.

Carbon Target – to reduce our absolute CO2e

consumption in line with UK Governmenttargets (34 per cent by 2020 and 80 per cent by2050 from a 1990 baseline).

Marshalls’ Energy and Climate Change Policyapproved by the Board during the year confirmsthe Group’s commitment to reducing the Energyand Carbon impact of its business activities. Thecurrent reduction is in line with the 2020 and 2050targets.

The Group complied with its legal obligation inthe Government’s Carbon ReductionCommitment Energy Efficiency Scheme (“CRC”)by submitting both its Footprint and AnnualReports together with surrendered Carbonallowances for the period April 2011 to March2012 within the time limits imposed by thelegislation. The Group currently has the CarbonTrust Standard, which certifies its continuedcarbon reduction and forward commitment toreduce emissions. It is likely that the Group willrecertify in 2013, subject to changes in the CRCand mandatory GHG reporting.

The business energy and carbon KPIs are alignedto CRC through the measurement of energy atboth absolute and relative intensity levels and the

This Environmental KPI report 2013 is an extract from the Marshalls plc Annual Report 20124


The Group’s GHG emissions for 2012 havedropped by over 5,000 tonnes from its reportedemissions in 2011, representing an 11.8 per centfall. The net reduction in absolute emissions is theresult of energy savings which are within thecontrol of the business and other factors, such asproduct mix and weather, which are not.

All the Group’s operational sites and mainbuildings have an energy plan with monthlyreporting which highlights each site’s progresstowards its GHG emission reduction. This hasresulted in the reduction of 639 tonnes of GHGemissions during the year. In addition, thecompletion of a project to improve the efficiencyof the business’s internal and external lighting isestimated to save 1,050 tonnes of GHG emissionsper annum. During this project further potentialsavings have been identified. Other projectsinclude the introduction of reporting andawareness schemes to improve management ofkey production utilities such as compressed air.

The mix of products manufactured will impact onthe Group’s absolute carbon footprint. The Grouprecognises that if production of low carbonproducts increases its footprint will be reduced.

The Group acknowledges that the heating degreedays in 2012 increased over 2011 and thereforethe energy required by the business for comfortand process heat increased during the year. Anumber of best practice projects are beingconsidered in 2013 to improve the energyefficiency of its heating systems.

The business is continually improving thereliability of its energy data to enable betterforecasting and management of its energy andcarbon footprint. The business has a forecast of itsGHG emissions until 2020 and a measure of therequired investment to achieve its targets.

The Group has changed its reporting of relativecarbon intensity of production by using totaldirect GHG emissions rather than CO2. This relativeintensity measure, excluding transport, hasdecreased from 7.85 kg CO2e per tonne ofproduction to 7.63 kg CO2e per tonne of

business remains committed to reducing energyuse on both these measures. The Group haspreviously reported CO2 emissions from its energyuse which represents the vast majority of its GHGemissions. From this year the Group will reporttotal direct GHG emissions using the GHGProtocol and the latest available emission factorsfrom Defra as this is considered best practice andinline with the proposed mandatory carbonreporting which is anticipated will be arequirement from October 2013.

The Group continues to recognise that renewableenergy will be required to achieve the absolutereduction target. Options to develop the use ofwind, photovoltaic, anaerobic digestion andbiomass continue to be developed. Such optionswill be progressed if found to be economicallyviable.

During 2012 the business commenced a trial toreport automatically on the dispensing of liquidfuels, the findings of which are to be assessed inthe first half of 2013.

The chart below illustrates the Group’s absoluteCO2 emissions in tonnes, excluding transportactivities, between 2008 and 2012.

This chart illustrates previously reported figuresand the total direct GHG emissions as acomparison. The Group will continue to use thelatest published figures from Defra as theybecome available.

38.943.0

46.643.6 44.1

Absolute CO2 e emissions from operationsexcluding transport (k tonnes CO2 e)

Tonn

es k

-CO

2 e

2008 2009 2010 20122011Defra CO2 emission factors (previous reported figures)

Defra current GHG emission factors

52.155.1

40.8

44.0


Energy e�ciency measures - testing for compressed air leaks


production. The reduction is a combination ofproduct mix, energy efficiency measures and thedecision to manage its reduction of base loadenergy usage.

The chart below illustrates the Group’s CO2e

(measured as direct GHG from 2012) intensityemissions as a proportion of production output,excluding transport activities, between 2008 and2012.

While the Group must report its carbon footprintas part of CRC legislation, which excludestransport, it will continue to report voluntarily tothe “Carbon Disclosure Project”, which includes awider carbon management performance overtime and also provides an insight for shareholdersregarding the Group’s energy, carbon and climatechange impact management programme. TheGroup reported 65,109 tonnes of CO2 for the year2011 (2010: 66,037 tonnes). This data includesscope 1 and 2 emissions as defined in theGreenhouse Gas Protocol ("GHG Protocol"). Theproportion of the GHG emissions from transportdropped to 32 per cent.

WaterTarget – reduce use of water from mains andlicensed boreholes to 0.05m3 per tonne ofproduction by 2015.

The Group understands the future value of water.The business has demonstrated a commitment towater harvesting and recycling on numerous sitesand utilises quarry water where appropriate in itsoperations.

The chart below illustrates the Group’s waterperformance between 2008 and 2012.

The reduction in water intensity has been helpedby Marshalls’ previous and continued investmentin water management projects, particularly waterharvesting which has continued to be developedduring 2012. The UK rainfall in 2012 was thesecond wettest year on record at 1,330.7mm(Y2000: 1,337.3mm) and 115 per cent of the 1981-2010 average. Greater volumes of rainfall have apositive impact on the Group’s reported figures asthe business prioritises the use of harvestedrainwater or quarry water before mains orborehole water. During the year a rainwaterharvesting system was introduced at thebusiness’s Sittingbourne site. Management, staffawareness and product mix have also contributedto the reduction in water intensity.

7.6

10.311.2

10.4 10.6

Relative CO2 e per production tonnage,excluding transport (kg CO2 e per tonne)

KG C

O2

epe

r Ton

ne o

f pr

oduc

tion

outp

ut

2008 2009 2010 20122011Defra CO2 emission factors (previous reported figures)

Defra current GHG emission factors

9.29.8

7.37.9

0.043

0.067 0.063

Mains & licensed water used per tonne of production output

M3

Wat

er u

sed

per

prod

uctio

n to

nne

2008 2009

0.055

2010 2011

0.052

2012



TransportTarget – to meet the challenge of reducingemissions whilst striving to maintain andimprove upon customer service.

Fuel usage has a significant business impact.Marshalls undertakes one-on-one “green” drivertraining for its fleet drivers, which has the addedadvantage of gaining a broader understanding ofthe problems being faced by the drivers, allowingmanagement to address the issues. The fuelefficiency of the Marshalls Large Goods Vehiclefleet (“LGV”) improved by 0.1 mile per gallonduring 2012.

The Group is a member of the voluntary freighttransport led Logistic Carbon Reduction Scheme(“LCRS”) which has a collective commitment toreduce the carbon dioxide emissions by eight percent by 2015 (compared to 2010 levels). Thebusiness drafted an internal Transport PolicyStatement during the year to provide focus on thekey metrics to improve vehicle efficiency. Thebusiness also continues to investigate LGV speedrestriction and alternative fuel trials.

The Group uses rail for stock movement to reducecarbon emissions and will continue to look atdifferent modes of transport wheneverpracticable.

The Group’s company car fleet has an averageemission of 130 carbon dioxide grams perkilometre reduced from 140 in the last 18 months.An in-house automated report using acombination of total mileage travelled and theachieved efficiency (miles per gallon) is beingdeveloped with a view to providing each driverwith a ‘green’ driving score during 2013.

Waste ReductionTarget – to reduce by 3 per cent the total wasteto landfill per tonne of production output perannum over a three year rolling average.

The Group has continued to measure the amountof waste, including material for recycling, leaving

sites as a percentage of total production output.The business aims to eliminate waste and where itis generated it investigates the opportunity forreuse or recycling within the business. The Groupis currently ahead of its target.

The chart below illustrates the Group’s off-sitewaste performance between 2008 and 2012.

This chart does not differentiate between wasteleaving site for reuse / recycling and waste leavingsite for landfill. The absolute waste total for theyear has decreased by 11,465 tonnes (2011:46,312 tonnes) to 123,482 tonnes. The introductionof waste recovery as a trial and other effortsaround recycling has meant that the Group hasincreased its recycling/recovery rate to 92.3 percent (2011: 91.8 per cent) and reduced its wastesent to landfill to 7.7 per cent (2011:8.2 per cent).

The Group continues to improve the accuracy ofits data. Product mix is a factor in measuring wastegeneration across the Group, with certain productlines being associated with higher levels of wastegeneration than others.

PackagingTarget - reduce by 2 per cent per annum, over a3 year cycle, while ensuring that the pack andproduct safety is not compromised.

The Group reports packaging used which alignswith the duty to report under the ProducerResponsibility Obligations (Packaging Waste)Regulations.

1.65%1.97%

2.35%

Waste taken off site as a percentage of total production output

Was

te ta

ken

off s

ite (t

onne

s)as

% o

f pro

duct

ion

outp

ut

2008 2009 2011

2.18%

2010

1.49%

2012



The chart below illustrates the Group’s packagingperformance between 2008 and 2012.

The Group used 10,461 tonnes of packaging in thereporting year which was a reduction on previousyears and nearly one per cent more than thereduction in production output. The intensity ofpackaging used to production output remains at0.22 per cent which is ahead of our target.

This measure is affected by product mix, so areduction can be achieved by selling a highervolume of those products that have lesspackaging. The Group uses packaging only to theextent appropriate, for example, to ensure safehandling, storage and transport of its productsand to minimise damage to the product andhence waste. In addition, packaging may be usedto provide health and safety information toprospective users of the products and instructionson installation. Packaging principally comprisestimber pallets and polythene.

The Group continues to concentrate on thereduction of timber and plastic which represent86 per cent and 12 per cent respectively of thereported packaging tonnage.

The Group’s Timber and Paper policy continues tosupport its commitment to obtain pallets fromFSC accredited suppliers where available. Duringthe year the Group has extended a trial of palletrepatriation which has the potential to reduce itstimber impact. A limited trial on 3 pallet designsat two sites reduced the number of new pallets byapproximately 2.5 per cent.

Work continues on the reduction of polythenefilm thickness to deliver material savings, with anestimated full year saving of 29 per cent at theinitial trial site. If successful, the benefit will berolled out to other Group operating sites.

Suppliers and ContractorsThe Group has an effective Procurement Policy inplace. The policy provides a framework which allemployees engaged in procurement activities areexpected to operate. It contains a clear statementwith regard to Marshalls’ commitment toresponsible sourcing. The Group will continue to

0.22%0.23%0.21%

Packaging bought/used as a percentageof production output

Pack

agin

g bo

ught

/use

d (t

onne

s)as

% p

rodu

ctio

n ou

tput

2008 2009 2010Packaging bought

Packaging used

2012

0.22% 0.22%

2011

0.22%

0.27%

Argent Walling and Water Feature


work with our key suppliers to ensure they haveappropriate management systems to minimiserisk and environmental impacts in place. Wheresignificant risk is identified with a supplier, arigorous audit will be carried out.

Marshalls’ Anti-Bribery Code reinforces policiesand procedures already in place and iscommunicated to external suppliers andcontractors as well as within the organisation.

Environmental Impact of ProductsThe Group maintains its policy of producingproducts intended for a long life with lowmaintenance. Marshalls is a world leader in termsof the number of its products (over 2,000) havinga measured carbon footprint (using the PubliclyAvailable Specification 2050:2008, “Specificationfor the assessment of the life cycle greenhousegas emissions of goods and services”), all of whichhave been verified by the Carbon Trust. It isexpected that the data obtained through thisprocess will enable the business to focus onenergy savings throughout its supply chain. The

Biodiverse Permeable Paving

results are available online for our customers touse in their selection of most suitable product fortheir project.

During 2012 the Group completed its annualaudit for its Responsible Sourcing Certification tothe Building Research Establishment StandardBES6001 for its concrete paving and wallingproducts. The products have been rated as “VeryGood.”

The Group’s products are considered to have lowenvironmental risk and in the majority of cases arereadily re-usable and recyclable at the end of theirlife.

SustainabilityThe Group has a sustainable business plan andhas set KPIs for the key areas of this plan. Itaddresses economic, social and environmentalaspects of Marshalls’ operations underpinned bydevelopment of management systemsrecognised by an independent third party (BSI).



Athletes Village - Olympics 2012


The Group’s publishes targets, progress and dataon its website at www.marshalls.co.uk/sustainability to communicate its agenda on thetriple bottom line of environmental, social andeconomic issues. The aim is to have a platformwhich allows interested stakeholders access to thelatest information on our activities.

Marshalls is an active member of the BritishPrecast Concrete Federation SustainabilityCommittee and a signatory of the Precast SectorSustainability Charter. The business is also asignatory to, and an active member of, theSustainable Concrete Forum.

Land ManagementDuring 2012 all development projects were eitherlocated on brownfield land, within Marshalls’ sites,or acquired on-going operations.

Environmental Awareness and TrainingThe Group recognises the need to raise theenvironmental awareness and competencies of itsemployees and has targeted energy managementwith a poster campaign aimed at improving theenergy culture across the Group.

The Contractor Handbook includes more detailedenvironmental information and has beendelivered to those working on behalf of the

Group. Operational employees received ToolboxTalk training on a range of environmental topicsincluding waste, environmental permits andbiodiversity.

BiodiversityTarget – to have biodiversity action plans inplace at all appropriate sites by the end of2012.

The Groups’ biodiversity strategy was written inconsultation with external stakeholders and itdocuments a systematic approach to our legal,protection and enhancement commitment to thebiodiversity on our sites. This strategy includes apriority approach to defining appropriate sitestogether with evaluation of the biodiversityecosystem services delivered. During the year, inview of the operational changes within thebusiness, this target was adjusted to focus onmaintaining legal compliance.

Marshalls continues to maintain its accreditationto the Wildlife Trusts’ Biodiversity Benchmark atthree sites.

Legal ComplianceThere were no environmental prosecutions at anyof Marshalls’ operating sites during 2012.

VerificationThis section of the Annual Report has beenaudited by a qualified verifier on behalf of BSI. Onthe basis of the work undertaken, theEnvironmental Report is considered to be a fairreflection of the environmental performance ofthe organisation during 2012 and contains nomisleading information.


DM

D_3

3175Landscape House, Premier Way, Lowfields Business Park, Elland HX5 9HT

Telephone: 0870 600 2425www.marshalls.co.uk

Documents

Environmental KPI 2013 - Marshalls · The Group’s Chief Operating Officer, David Sarti, is the Director responsible for the environmental performance of the Group. The Group’s