Erm annual report

Delivering sustainable solutions in a more competitive world

Annual Review 2011Environmental Resources Management

• Tobetheenvironmentalconsultancyofchoice,worldwide;

• Tobethecompanyforwhicheveryenvironmental

professionalwantstowork;and

• Tobethebest:mostinnovative,mostexciting,withthe

besttechnicalandfinancialperformance.

• Clientfocus:Wevalueentrepreneurial,innovativeand

client-orientedbehavior.

• Accountability:Weareeachpersonallyaccountableand

jointlyresponsibleforthesuccessofERMandforthe

deliveryofqualityworktoourclients.

• Transparency:Weexpectthehighestlevelofethical

behaviorandpersonalintegrityinallourtransactionsin

accordancewithourERMcodeofbusinessconduct

andethics.

• Empowerment:Wewillhelpallourpeopletorealize

theirpotential.

• Collaboration:Weareoneorganizationglobally:webelieve

intheprinciplesofpartnership,respectforeachandevery

individualandmutualsupportacrosstheworld.

Our Vision Our Values

Contents

01Welcome

02StrategicOverview

06SustainabilityatERM

14OilandGas

18MiningandMetals

22Power

26Manufacturing,ChemicalandPharmaceutical

30FinancialPerformance

34ERMFoundation

36OurClients

ERM Annual Review 2011 01

Welcome

ERM has been providing leading environmental, health, safety, risk and social consulting services for over 40 years.

01

The world has never had a greater need for the combination of

in-depth technical knowledge of sustainability challenges and

strategic business advice that ERM offers. With our leading reputation

and brand, we look forward to continuing to build on the strong

performance that is described in this Annual Review.

This Review covers all aspects of ERM’s business, as well as

detailing the company’s current strategy that has been instrumental in

providing the framework for the success that we have enjoyed since

launching the strategy. This strategy was devised with input from a

wide range of stakeholders and will guide our focus over the next

five years.

Sustainability is central to our business. The importance that we

place on it is demonstrated by the initiatives and objectives relating to

sustainability that we have set ourselves and which are described in

this Annual Review.

Every day we work with clients around the world and in diverse

industry sectors to help them to understand and manage their

environmental, health, safety, risk and social impacts. Examples

of these are given throughout this Review, along with insights and

observations relating to the key sectors that we service. These

sectors, which include Oil and Gas, Mining and Metals, Power, and

Manufacturing, Chemical and Pharmaceutical, are facing critical

sustainability challenges, and our ability to help them to operate more

sustainably has a positive impact on our planet.

Environmental Resources Management (ERM) isaleadingglobalproviderofenvironmental,health,safety,risk,andsocial consultingservices.

Sustainability is at the heart of both the services we provide and how we operate our business. We have over 140 offices in 40 countries and employ over 4,000 people committed to providing a service that is consistently of the highest quality.

02 ERM Annual Review 2011

The world is facing ever increasing challenges associated with the

demand for natural resources, population growth, energy demand, the

emergence of developing economies and continued globalization.

Our clients are increasingly recognizing the need to take action to

address these challenges to protect and improve the sustainability of

their businesses. They understand that they must be able to anticipate

and comply with new regulations, respond to society’s increasing

expectations for greater corporate social responsibility, and operate

successfully in increasingly remote and challenging physical and

social environments.

Nowhere are these issues more prevalent than in the resources

sector. In this field, competition is intense and the environmental and

social impacts associated with the exploration and development

of assets are particularly challenging. Elsewhere, the emergence of

new consumer classes in major growth economies and continued

globalization of production and supply chains are putting strains on

multinational companies worldwide.

At ERM we have been working with our clients to help them adapt

to changing needs for some 40 years. In that time, we have built

an enviable reputation for the quality of our people and the value of

the environmental, health, safety and social/community advice we

provide. Thanks to this reputation, many of our client relationships

span decades and we value our clients’ continuing support. Our

clients include some of the world’s leading companies in sectors that

demand the highest standards and we are committed to continuing to

provide them with the best possible advice.

Redefiningourstrategicgoals

To continue to provide this leading-edge advice, make a real difference

for our clients, and attract and retain the people who make the

delivery of this advice possible, we have reviewed and updated our

strategy. The refreshed strategy is based on input from our clients

worldwide, from our Partners and employees and from a review of

global trends and indicators.

Our new strategy is simple and has one clear goal: to be

recognized by our clients and employees as the pre-eminent global

sustainability consulting firm. We launched the new strategy in

2010 under the banner: One Planet. One Company. ERM. The title

acknowledges both the need for society to manage the earth and its

resources in a sustainable way and the importance of the consistently

high-quality advice and global support that ERM provides to its clients.

The main elements of the strategy are focused on three themes:

• MarketFocus:Understandingandrespondingtoour

clients’ needs

• Developingandleveragingourglobalresources:Todeliverthe

best outcomes for our clients worldwide

• Sustainability:Embeddingsustainabilityintoourserviceoffering

and building sustainability into the way we do business

Over the last year we have worked hard and invested heavily in

implementing our new strategy. Not only has this enabled us to deliver

greater value to our clients but it has also created new opportunities

for our people and for the growth of ERM.

MarketFocus:UnderstandingandRespondingtoour

Clients’Needs

We have made significant investment in building teams of Key Client

DirectorsandManagerswhodevelopasoundunderstandingof

the sectors in which our clients operate and the specific needs

and expectations of individual clients. We have strengthened the

industry expertise of our sector-based client teams and invested in

StrategicOverviewJohn Alexander, Chief Executive Officer

Our goal is to be recognized as the pre-eminent global sustainability consultancy.

02


innovative services and approaches to help our clients respond to their

challenges. This, we believe, improves our ability to anticipate and

meet expectations and deliver the best outcomes for our clients.

To build on and leverage our geographic breadth and enhance our

offerings, we continue to work with clients at both a corporate and

division/local level. This enables us to deliver services and outcomes in

the context of the full breadth of our clients’ operations and needs. We

aim to understand clients’ needs and, wherever practicable, establish

dedicated teams with relevant technical, program management and

regulatory/cultural skills and experience to deliver exceptional results.

The needs of many of our clients, and their engagements with

ERM, are heavily influenced by the events in the Gulf of Mexico in

2010. These and other incidents have increased the expectations of

companies worldwide and have highlighted the growing connection

Strategic Overview

ExecutiveCommittee

1 2 3

4 5 6 7

10

between risk and reputation. Governments, investors and society as

a whole are taking a deeper interest in the issues that could affect the

future welfare of the planet, its natural resources and the communities

in which we live and work. This interest will continue to intensify as

factors such as population growth, the rapid growth in energy

demand and the emergence of new consumer classes in growth

economies result in competition for finite resources be they oil and

gas, minerals, water or indeed human resources. This is driving the

development of resources into ever more difficult physical and social

settings, whether it is the high Arctic, remote continental or deepwater

environments or indeed areas with complex socio-economic and

community challenges.

Overlaid on this are the challenges of climate change. These require

society to re-assess the global impacts of national/regional policies

98

1. John Alexander Chief Executive Officer

2. Andrew Silverbeck GroupFinanceDirector

3. Barrett Cieutat DirectorofCorporatePrograms

4. John Simonson Regional CEO for EMEA

5. Julio Torti DirectorofAcquisitions

6. Keryn James Regional CEO for APAC

7. ShawnDoherty GlobalCommercialDirector

8. DavidMcArthur Regional CEO for The Americas

9. Steve McGrory GlobalHumanResourcesDirector

10. Roy Burrows Global General Counsel


and actions; while water, which is governed heavily by local factors,

presents challenges of quality, scarcity and flood risk, often

in close association.

It is clear that both the opportunities and challenges that our clients

face are increasing in complexity, and sound advice that spans the full

range of issues is required to navigate these challenges successfully.

DevelopingandLeveragingourGlobalResources

ERM’s leading reputation and history, together with the quality of our

clients and projects, mean that at ERM we have many of the

best-qualified and experienced people in our industry. We endeavor to

leverage these and our global network of 140 offices in 40 countries

to deliver consistently the best possible outcomes for our clients.

To support this, we have invested in a world-class and award-

winning knowledge management system known as ‘Minerva’. This

enables all of our staff to access in real time, key information relating

to our clients, the sectors in which they operate and technical

resources and experience across ERM. It also helps to connect

colleagues with the local, regulatory and cultural/language skills and

knowledge to support projects worldwide.

Last year we extended our knowledge management capabilities

by investing in a new ERM Academy, our in-house learning and

development program. This is increasingly the primary vehicle for

delivering technical and client/sector training, consulting skills and

personal development and knowledge resources to our people around

the world. The ERM Academy offers classroom style training on a

wide range of subjects, including technical best practice, project

management, business conduct and ethics and safety programs,

as well as web-based tutorials on topics such as The ERM Way,

sustainability, safety and client relationship management. The ERM

Way is designed to ensure all employees are aware of and consistently

apply the highest standards to our client engagements and business

operations. The latter includes the values and principles that underpin

our business, as well as the approaches and tools that we employ to

deliver our services to clients on a global scale.

Over the last two years we have also made changes to our

incentive program to encourage and recognize the importance of

building the best possible teams to deliver seamlessly for our clients

around the world. This has been a tremendous success, with clients

increasingly recognizing this point of difference at ERM.

EmbeddingSustainability

Sustainability is at the heart of the services that we have been

delivering at ERM for many years. Embedding sustainability into our

service offering and building sustainability into the way we do business

is a key part of our strategy. We continue to offer a range of services

spanning health and safety, social and community issues as well as

the challenges associated with the environment, including energy and

climate change, life cycle management, biodiversity, integrated water

management and resource management and protection. These are all

components of the broader sustainability offering that our clients are

increasingly demanding.

Over the last five years, we have extended our strategic

sustainability service offering (Corporate Sustainability Services)

to respond to clients’ growing need to undertake both high level

reviews of what sustainability means for them and to build programs

of work that deal with specific challenges and opportunities arising

from such reviews. This has included for example helping clients to

identify emerging and growing markets for products that are likely to

experience increased demand as climate change and related local

variations in climate and associated conditions affect

customer choice.

We have also invested in building sustainability options and

approaches into the more traditional offerings on which our clients

have relied for some time. This has included for example:

• Providingclientswithinformationaboutthecarboncost

associated with different site remediation options to aid

decision-making;

• Adoptinganintegratedwatermanagementapproachtohelp

clients understand the risks and opportunities that they face

associated with their reliance upon or exposure to water;

• Undertakingsustainabilityperformanceassessmentsalongside

assurance audits to drive performance improvement and

ensuring the accuracy of data reported in EHS, CSR or

Sustainability Reports;

Strategic Overview

ERMaroundtheglobe:fastfactsaboutthecompany

• Over 4,000 employees

• 140 offices in 40 countries

• Partners own a 45% stake in the company

• 2,000clientsincluding50%oftheGlobalFortune500

• LatestrevenuefigureUS$681m(gross)


Strategic Overview

• Preparingandevaluatingcarbonfootprintdataforproducts

throughout their life cycle; and

• Developingamethodologytohelpclientsunderstand

and determine the financial value of sustainable development to

their organization.

Also, many of our clients have sought our support to help them

understand and improve their performance when it comes to safety

management and the financial performance of major capital projects.

Our strategic approach has enabled us to help clients improve their

safety culture and performance, and avoid delays and over-runs as a

result of unanticipated environmental or community issues.

SustainabilityandERM

In addition, we have embarked on our own journey at ERM; a

journey to better understand, improve and report on our own

sustainability performance. In 2010, we appointed an internal

Sustainability Advisory Committee and this, together with the

network of Green Teams around the ERM world, has helped us

establish our own Sustainability Policy and Approach to which we

hold ourselves accountable.

Building on our previous internal environmental performance

reports, we have now prepared our first internal Sustainability Report

for the financial year 2011. This report assesses our risks and impacts

in accordance with the Global Reporting Initiative (GRI) in the seven

areas covered by our approach to sustainability and sets out our goals

for the future. We intend to share this report with selected clients on

a mutual peer review basis this year and to publish the financial year

2012 report publicly.

AnewchapterforERM

In July 2011 ERM completed a refinancing, which saw Charterhouse

Capital Partners replace Bridgepoint Capital as our private equity

partner. At this transaction, the ERM employee Partners who lead and

manage the business around the world reinvested substantially in the

company. This demonstrated the confidence they have in the future

of ERM and our ability to continue to build our business and serve our

clients. ERM Partners own approximately 45% of the company.

As part of the above transaction, we also put in place financing

to enable the company to continue to invest in the growth and

development of our people and services. This will include selective

acquisitions and joint ventures in markets where bringing companies

with similar high standards and values into the ERM fold will allow

us to expand and strengthen our offerings. In accordance with this

ambition, in October 2011 we acquired OASIS Environmental, Inc.,

anenvironmentalservicescompanyheadquarteredinAlaska,USA,

with around 100 employees. This acquisition further strengthens

ERM’s leading position in the resources sector and in Alaska and

the Pacific Northwest. We welcome the OASIS team to ERM and

look forward to our collective success. This transaction follows the

acquisition in April 2010 of the Houston based risk consultancy, IRC.

The IRC team brought leading edge process safety and quantitative

risk assessment capabilities. They have successfully integrated into

ERM and are now working effectively with the rest of our global risk

team to deliver outstanding projects and outcomes to our oil and gas,

mining, power and major industrial clients worldwide.

Aspringboardforthefuture

ERM has an enviable record of strong growth and financial

performance; we apply the same discipline to the way in which we

run our business as we do to the projects that we deliver for our

clients day in, day out.

We managed the business successfully through the 2008/9 global

financial crisis and associated recession and have invested heavily

in strengthening our client focus, expanding and innovating within

the services we offer and improving the way in which we deliver for

our clients. We have grown significantly over the last two years and

although there remains significant economic uncertainty, we are

confident in our ability to continue to deliver great outcomes and

value for our clients around the world and hence further expand our

business. We have a great future and look forward to continuing to

deliver excellence in all that we do. And finally, we recognize the trust

that our clients place in us every day around the world and never

take this for granted. This trust is earned by the hard working, highly

skilled Partners and staff worldwide. On behalf of the Board and

management team, I would like to thank our clients for their continued

support and all ERMers around the world for their commitment,

energy and passion without which we could not do what we

do – thank you.

John Alexander

Chief Executive Officer


Sustainability is what we do, and has been central to our operations

and client offerings for many years.

As part of the company’s strategy, we are placing even greater

emphasis on sustainability to ensure it is embedded in every part

ofourbusiness,fromthedecisionstakenbyourBoardofDirectors

and Executive Committee through to how we manage our global

operations and deliver client services.

ForERM,sustainabilityisacommitmenttosupport

socio-economic development that meets the requirements of the

present without compromising the ability of future generations to meet

their own needs.

In this section we outline our aims, achievements and approach to

sustainability for the financial year ended March 2011.

Through the implementation of our Sustainability Program, we will

be incorporating the lessons we learn and the approaches we develop

for the benefit of our clients through our market offerings. This will

not only help us protect our planet, its resources and communities,

but also help our clients create business value through meeting the

challenges of operating more sustainably.

The expertise of our people is vital in helping us meet our

sustainability objectives, and we actively use this expertise through

our Sustainability Advisory Committee, which has been established to

advise the Executive Committee on sustainability issues facing both

the company and the wider global community.

Oursustainabilityeffortsarefocusedonsevenkeyareas:

• People

• HealthandSafety

• BusinessConductandEthics

• Environment

• Community

• ThoughtLeadership

• Clients

We have created a network of Green Teams whose members support

environmental projects at ERM offices around the world. This cohesive

approach encourages innovation and accountability at every level,

from the individual and project teams to practices and countries.

As a leading sustainability consulting company, we are uniquely

positioned to contribute to the environment and to society through

the expertise and energy of our employees worldwide. This is why

we have set ourselves the challenge to become the best performing

company in our sector in terms of sustainability.

We have already achieved a number of sustainability successes,

which are summarized on the following pages.

SustainabilityatERM

By combining the expertise of our people with innovation and ambition, we are working hard to help to protect the planet and its resources.

06

Embeddingsustainabilityineverypartofourbusiness.


Sustainability

PeopleOur business is our people. With over 4,000 people working in

40 countries across the globe, we are committed to providing

opportunities and resources to help every individual achieve his or

her full potential and enjoy a long and rewarding career with ERM.

In line with our long-term strategy for people development, we

have invested in additional professional resources, training and

development programs for our employees. To lead these initiatives a

GroupHRDirectorhasjoinedthecompanyandissupportedbythe

GlobalDirectorofLearningandDevelopment.

To help our people grow and deliver to their fullest potential, we

haveestablishedTheERMAcademy,ourCorporateUniversity.Acting

as our main source of learning for training and development, the

Academy provides employees with learning material for topics as

diverseasanIntroductiontoSustainabilityinERMandDelegation

Skills to Successful Remediation and Change Management. We

will continuously expand and review our curriculum to ensure the

Academy remains responsive to our employees’ learning and

development needs.

We have also implemented a new global Partner Model to

define the essence of our leadership in terms of values, behaviors,

performance expectations, skills and competencies. The Model sets

out the consistent behaviors expected of every Partner irrespective of

his or her individual role or focus, and which distinguishes Partners as

ERM’s leaders.

We believe that this Partnership Model is unique in our sector and

will provide unparalleled opportunities for the very best of our people.

Our Partner-in-Training Program continues to identify employees who

display excellence in managing people, performance and clients.

More than 150 individuals are currently participating in the Partner-

in-Training Program. We had a 14% net increase in the number of

PartnersinFY11.

Engaging our

leadersindevelopingourapproachto

sustainability.

“We have established our ownCorporateUniversity:The ERM Academy.”


Sustainability

HealthandSafetyERM’s goal is to ensure that everyone who comes into our work

environment goes home safely at the end of each day. This means not

only ensuring compliance with industry standards and internal policies

but also fostering a culture that keeps safety at the forefront of the

thoughts and actions of our people.

Thecoreprincipleofthatcultureis:“YouSeeIt.YouOwnIt.And

Share It.” All ERM employees are empowered to be proactive when

dealing with health and safety issues and to share and learn from our

experiences around the globe.

The completion of the worldwide deployment of our Event

CommunicationSystem(ECS)inFY11supportedemployeesintheir

efforts to ‘see, own and share’ information about health and safety

events, and enables us to identify areas for improvement.

WealsoestablishedanObservation&FeedbackProgram(OFP),

which provides frameworks and practical skills for employees to share

their experiences and lessons learned so that our work environment

becomes safer.

ThecombinationofECSandOFPisdesignedtoenhanceour

healthandsafetyculturearound“YouSeeIt.YouOwnIt.And

Share It.” These initiatives are intended to help identify and mitigate

significant risks and strengthen our safety culture through leadership

accountability and employee empowerment.

Keepingsafetyattheforefrontofthethoughtsandactionsofourpeople.

“Everyone at ERM is empowered to: See It. Own It. And Share It.”


Sustainability

BusinessConductandEthicsERM adheres to the highest international standards for business

conduct and ethics, and has developed ethics and compliance

systems, policies, training and procedures to support

this commitment.

Our internal risk assessments recognize that we often provide services

to multinational clients in geographies and jurisdictions that are viewed

as high risk by international organizations. It is therefore imperative

that we ensure our staff are fully aware of the challenges and legal

obligations they face both at a personal and corporate level.

DuringFY11wecontinuedtosupportinternationaleffortsto

combat the risk of bribery and corruption by providing standards,

training and systems to all employees. We also revised our Code of

Conduct by expanding our policies on anti-bribery and corruption,

withaparticularfocusonnewUKlaws.

StaffwillbetrainedonthislegislationduringFY12,whichisin

addition to the mandatory ethics and compliance modules already

in place.

OtherFY12complianceandethicsinitiativeswillbedrivenbythe

responses to our latest Governance, Risk and Compliance survey

ERM'sleadersare

committedtothehighestinternationalstandardsforbusinessconduct

andethics.

that is completed by all ERM Partners. Conducted approximately

every two years, the survey helps raise awareness of responsibilities,

assess knowledge and compliance, and identify any issues that have

beenencountered.TheFY11surveyidentifiedthatERM'sPartners

have a high degree of understanding and competence regarding

governance, risk and compliance issues.

“We have rolled out compulsory training for all staff on business conduct and ethics.”


Sustainability

Environment We are committed to ensuring that our business decisions minimize

our environmental footprint and contribute to more sustainable

outcomes for ERM, our clients and society.

Accurate data collection and management of our environmental

footprint is essential to measuring our performance and identifying

where and how we can drive improvements most effectively.

We have made significant efforts to improve the collection and

aggregation of environmental performance data, and intend to use

thedatafromFY11asameaningfulbenchmarkagainstwhichwecan

measure our future achievements.

Our greenhouse gas emissions represent our most significant

material environmental issue. To reduce business travel and its

associated environmental impacts and costs, we are encouraging

employees to conduct meetings using teleconferencing, web-based

communications and videoconferencing, and are promoting this by

significantly increasing our global videoconferencing infrastructure.

BytheendofFY11,videoconferencingfacilitieswereavailablein

25 offices across all of our global regions, with nearly 4,000 hours of

uselogged.Atleast20moreinstallationsareplannedforFY12.We

expect these actions to have an impact on the carbon footprint of our

operations in the future.

Fromteamandclient

meetingstoleadershipdiscussionsandrecruitment

interviews,videoconferencinghastransformedinternalandexternalcollaborationwithin

ourbusiness.InFY11weexpandedournetworkto

25offices.

“Our network of Green Teams is driving better environmental performance at office level.”


Sustainability

CommunityERMprimarilysupportscommunitiesthroughtheERMFoundation

andtheLowCarbonEnterpriseFund(LCEF).Wealsosupport

employees who are involved in other organizations working with

communities on environmental and social projects.

Our support to communities is delivered through cash contributions,

allocation of pro-bono time for technical and business advice and

support for employee-driven initiatives.

InFY11,ERMcontributedatotalofUS$681,000totheERM

Foundation,theFoundation’sLowCarbonEnterpriseFund(LCEF)

and other organizations. This contribution included financial support,

pro-bonoconsultancytimeandmatchedfunds.FromFY12,ERMhas

made a commitment as part of our Sustainability Approach to donate

one per cent of pre-tax profits per year to support sustainability

initiativesthroughtheworkoftheFoundation.

YoucanreadmoreabouttheERMFoundationandLowCarbon

Enterprise fund on pages 34-35.

ERMisprovidingpro-bono

supporttotheMakulekecommunityinSouth

Africatoplanforamoresustainablefuturethroughbalancingsocial,economic

andenvironmentalchallenges.

“We have contributed US$681,000tosustainabilityinitiatives through the ERM FoundationinFY11.”


Sustainability

ThoughtLeadershipWe continuously demonstrate thought leadership through the depth,

breadth and quality of our services and our contribution to the broader

sustainability agenda.

Participating in conferences is key to our role in driving the

sustainabilityagenda.InFY11,ERMconsultantspresentedat182

conferences and workshops. ERM’s Chief Executive Officer John

Alexander as well as our Oil and Gas and Power Sector Leaders

attendedIHS'CERAWeek2011todebatekeyissuesintheenergy

sector including the role of carbon and water in the exploration and

production of energy. CERAWeek is the premier meeting of the

industryexecutivesandheldeachyearinHouston,US.

We are committed to increasing our profile in key organizations

that are striving to find solutions to current and future

sustainability challenges.

DuringFY11,ERMheldactivemembershipsfor264globaland

local associations.

MillenniumDevelopmentGoalsERMchairsUnitedNationssponsored event focused on accelerating implementation of the MillenniumDevelopmentGoals.

“We provide our clients and the broader marketplace with fresh, insightful information through collaboration, research and innovative thought.”


Sustainability

ClientsBy helping our clients achieve better outcomes, we not only contribute

to the sustainability of their businesses but also address broader

global challenges, such as access to natural resources and energy,

biodiversity and protecting local communities.

We are continually evaluating ways to increase the business value we

deliver to our clients by looking beyond regulatory requirements to

sustainability best practice and we bring our expertise to bear at all

stages of our clients’ business life cycle. This includes helping clients

across all sectors to understand the sustainability opportunities and

risks associated with their activities; enabling clients to understand

and manage the environmental, social and economic impacts of their

operations and products; and in the case of site remediation, finding

alternatives that minimize emissions as well as energy and

water consumption.

Formoredetailsabouthowweputtheseprinciplesintopractice

through our project work, please see the case studies featured

throughout this Annual Review and on www.erm.com.

CERAWeekERM CEO John Alexander leading discussions at the international Oil and Gas event CERAWeek.

“We make a significant contribution to global sustainability through our project work, which benefits the environments, communities and our clients.”


The search for unconventional resources and the growing investment

in renewable energy are redefining the oil and gas industry. These

factors, along with a scarcity of technical and management skills and

a renewed focus on risk management, are driving our work in

this sector.

With increasing social and political demands for carbon reduction

and hydrocarbon conservation, renewables offer attractive business

opportunities for companies in this sector. As a result, we assisted

our clients with a range of projects, including wind, solar and biofuels

duringFY11.

Exploitation of new extraction technologies, such as hydraulic

fracturing of horizontal wells, is also enabling the industry to tap into

reservoirs of gas and liquids that were historically uneconomic to

recover.IntheUS,asmuchas50%ofnaturalgasusedacrossthe

country is now sourced from unconventional gas formations, such as

the Barnett and Marcellus Shales, with reserves and new discoveries

expanding continuously.

Renewable and unconventional energy sources come with their

own unique environmental, health and social challenges, especially as

extraction sites are often located near heavily populated areas. These

are challenges that we have been helping our clients overcome.

At the same time as investing in new energy sources, our largest

clientshavebeendivestingtheirdownstreamassetsintheUS

and Europe in order to focus their efforts on exploration and

production efficiency. This has resulted in demand for ERM’s

Transaction Services.

Formanyofthesedownstreamassets,suchasoilrefineries,

terminals, pipelines and retail stations, clients need cost-effective

and consistent remediation solutions, and our Contaminated Site

Management Practice is working on global, regional and national

programs to meet this need.

OilandGas 14

ShellInternationalPetroleumLtdAddressing soil and ground water impacts from various downstream operations ranging from manufacturing to retail distribution in Asia Pacific and Africa.NeilDonaldson,AustraliaandDavidRonnei,US

Integrated risk management, safety culture, new IT systems and investment in renewables all help the oil and gas industry mitigate its impact on the environment and local communities, as it moves toward a more sustainable future.


thenewruleswillmirrorthemodelthatexistsinAustralia,theUK

and the Netherlands. This model requires operators to quantify - and

systematically assess - the risks and safeguards at their offshore

assets along with their emergency response plans, thereby making a

regulatory ‘case’ for the safety of their projects.

The industry’s renewed focus on major accident risk has prompted

our clients to accelerate their adoption of an integrated approach

for managing technical and non-technical risks, such as stakeholder

relationships, environmental sensitivity and community impacts.

To facilitate this unified approach to both risk management and

service delivery, we embarked on a strategic initiative which will

harness the integration and deployment of technically driven business

solutions. This enables us to provide our oil and gas clients with more

SafetyandRisk

The shift towards unconventional and renewable energy sources

comes at a time when oil and gas companies are adjusting to

increasedpressurefromstakeholderspromptedbytheDeepwater

Horizon incident. ERM calls this era the “New Operating Environment.”

New regulations, stricter enforcement, a more rigorous approach

to major accident risk potential, and heightened awareness of the link

between corporate reputation and environmental and safety incidents

all form part of this new operating landscape, and will influence the

sector for years to come.

There is a particularly sharp focus on the approach to managing

safety and risk for offshore drilling and other upstream activities, driven

bytheUSBureauofOceanEnergyManagement.Onceimplemented,

Oil and Gas

TullowGhanaLtdAssessing and managing the environmental and social impacts associated with developing Ghana’s first major offshore oilfieldtomeettherequirementsofregulators,jointventurepartnersandtheInternationalFinanceCorporation.MarkIrvineandAlbertdeJong,UKandHenryCamp,SouthAfrica


Oil and Gas

strategic advice that addresses technical and non-technical

risk and which influences both financial and reputational performance.

Applicable to individual capital projects or portfolios of projects, this

approach is appropriate for all segments of the oil and gas sector,

from exploration to refining, and draws on the skills of all of

ERM’s practices.

Diminishingreservesinmaturingfieldsmeansthatmanyofour

clients are exploring for oil and gas in increasingly remote locations,

including regions of high sensitivity in terms of the environment and

social impacts. Our Impact Assessment and Planning Practice is

working with these clients to help identify and minimize the impacts

of these major capital projects so that the developments can proceed

with the support of the local communities, governments and other

key stakeholders.

InresponsetonewUSEnvironmentalProtectionAgency

mandates, such as Subpart W for upstream oil and gas, our Air

Quality Practice has been helping clients generate inventories and

data management systems for their greenhouse gas emissions.

ShellInternationalPetroleumLtdProviding due diligence advisory services for sustainability and Health, Safety and Environment (HSE) relatedissuesofaproposedUS$12bbiofuels joint venture.VickyCopemanandCraigCarson,UK

SATORPPerforming hazard identification, preliminary and detailed risk assessments, HAZOP and Building Risk Assessment and ESIA of a complete grassroots export refinery in SaudiArabiaatFEEDstage.ChristianRoche,France

ChevronSimplifying compliance and enabling cost savings which centralized HES Information Management SystemChadMorris,USandVijayGudivaka,Singapore

InformationSolutions

ERM'soptimizeddatacollectionandreportingsystemsplayakey

role in enabling clients to improve their management of environmental

and health and safety risks, and to support robust governance and

assurance frameworks. Investment in EHS management systems

and services remains a priority among our oil and gas clients, with the

sector now accounting for the majority of client engagements with our

Information Solutions practice.

By teaming up professionals from our Information Solutions

Practice with regulatory compliance experts across multiple locations,

ERM has been able to provide oil and gas clients with fully integrated

environmental management information system (EMIS) solutions.

These help clients track and meet their complex EHS regulatory

obligations across their global footprints and produce performance

metrics used for internal and external reporting. Some of these large-

scale multi-year program engagements have involved hundreds of

professional staff in more than 20 countries.

CaseStudies ShellInternationalPetroleumLtdStrengthening management of non-technical performance to address US$multimilliondelaysinmajorcapital projects.LindaBrewer,RyanMcKeemanandLizLunsford,NorthAmerica

Pictured are fellow team members Melissa Savcic, Tony Bellomo, Carla Castillo, Lester Engel


OilandGas:Trendstowatch

Continued focus on major accident risk, with companies engaging in all aspects of EHS risk management and, more specifically, emergency response planning and transformational safety training.

More partnerships between international and national oil companies resulting in the greater adoption of global standards, such as the Equator Principles.

Greater investment in renewables and unconventional gas projects to increase supply to the natural gas consumer markets, conversion of power plants to lower emitting natural gas, and development of gas-to-liquids technologies.

DivestitureofrefiningcapacityintheUSandEuropebythemajors.

Increased implementation of greenhouse gas emission reduction projects and creation of carbon credits such as vent and flare reduction, energy efficiency and leak detection andrepair(LDAR)programsfocusedon reducing fugitive emissions.

Increased marine-based activities, including deepwater development and floating LNG.

PERULNGPreparing Ecological Management Plans for the first natural gas liquefactionproject(thePERULNGproject) in South America.FranciscoPinillaandGerardoLeunda,Peru

Oil and Gas


Most commodities have rebounded strongly after a relatively short-

termdisruptionthroughtheglobalfinancialcrisis.Fromcoaland

iron ore to gold and copper, we are helping our clients in this sector

evaluate and establish new sites across the globe while also improving

the efficiency and safety of existing operations.

This resurgence has led to increased demand for our Impact

Assessment and Planning services as part of our clients’ preparation

for developing new sites or expanding current operations.

Resettlement issues are particularly high on the agenda in parts of

Africa where an international race is on to find and extract natural

resources, such as aluminum, iron ore and gold.

Managing water

Integrated water management is a major sustainability challenge

for the mining sector. This applies not only to arid regions, where

competition for scarce water supplies can be a major risk to existing

or new operations, but also to high rainfall regions, where the

management of water discharges can pose a risk to the viability of

mining developments.

We are delivering innovative ground, surface and waste water

modeling and management solutions, including water footprinting,

that enable clients, together with local stakeholders, to assess water-

related risks and develop effective management strategies.

MiningandMetals 18

TexasCustodialTrust(FormerAsarcoSmelter)Facilitatingthecost-effectiveandsafedecontamination, decommissioning and demolition of a former smelting and refining plant in El Paso, Texas ready for redevelopment.JeffBaugussandRobertKlotzbach,NorthAmerica

Clients maximize post-recession revival and minimize risk with safety training, impact assessments and compliance assurance.


EnergyResourcesDeliveringaworldclassESIAthatmetthechallengesofdevelopingthemostadvanced coking coal operation in Mongolia.CalebWall,NorthAmerica

Transforming safety performance

Despiterecentpositivechangesaffectingthishistoricallycyclical

industry, one challenge remains constant for all our clients: safety.

ERM’s Performance and Assurance Practice has been

helping our mining and metals clients deliver transformational

improvements in their safety performance through the adoption of

culturalandbehavioralchangetraining.Foundedonhigh-impact

engagement techniques, the training helps leaders understand

the case for change – before serious accidents occur – and

encourages behavioral change on the front line.

As well as helping clients improve their safety record through

better risk management, the training also supports their efforts in

delivering greater sustainability and environmental performance.

The desire to minimize risk and improve safety performance

means that our clients are tending to work with ERM on a program

basis rather than on individual projects. This enables them to take

an integrated and strategic approach that encompasses non-

technical risks, long-term liability management and sustainability

aspirations, while highlighting the potential business impact in

terms of reputation and profitability.

The re-emergence of acquisitions and merger activity across

the industry is stimulating renewed demand for ERM’s Transaction

Mining and Metals


Mining and Metals

NewcrestMiningLimitedIndependent Assurance of the 2010 Sustainability Report. ClaireStevens,Australia

Services. As companies consolidate and seek to enhance the value

of their operations, we have been involved in the environmental

remediation, decontamination, decommissioning and demolition

of facilities in locations as diverse as Central Europe, Australia, the

USandCanada.Wehavealsoassistedclientswiththelong-term

management of liabilities by developing and reviewing their closure

plans and updating their financial provisions in line with evolving

accounting rules.

The restoration of mining sites needs to be carefully managed

taking into account stakeholder concerns about the future use

of the land, balancing different interests to arrive at sustainable

solutions. Off-site restoration of contaminated sediments also

needs to be addressed at many sites.

AngloAmericanIntegrating safety and sustainable development into operational reviews to improve business performance.AndyChurr,UK

CaseStudies

Like other major industry sectors, mining and metals operations

generate vast amounts of EHS information that must be

managed efficiently to derive lasting business value. At ERM, our

specialists in environmental management information systems

(EMIS) are providing innovative and cost-effective solutions to

data management that help our clients communicate and use

information to improve performance across the full spectrum of

their operations.


Greater focus on building a ‘safety culture’ at new and existing sites.

Significant expansion of existing profitable operations globally.

Increased M&A activity and Initial Public Offerings (IPOs) as the industry grounds around strong commodity price trends.

MiningandMetals:Trendstowatch

Emergence of Chinese and Indian investment in strategic mining and metals sector operations.

AngloAmericanQuantifying the safety and sustainable development components of vendor due diligence to support the client’s multiple divestment processes.RossListon,SouthAfrica

Mining and Metals

Clients striving to meet international financing standards (eg Equator Principles) for new projects in developing economies in Latin America and Sub-Saharan Africa.

Increasing pressure from stakeholders on social and water management issues associated with siting new mines.


Despitethegrowingexploitationofrenewableenergysources,many

countries will remain dependent on conventional power for years to

come. This reliance is driving demand for our services in a number of

key areas, including Performance and Assurance, Sustainability and

Climate Change and Contaminated Site Management.

Forclientsoperatinginthefieldofconventionalpower,compliance

with environmental legislation, such as Europe’s Large Combustion

PlantDirective(LCPD),hasbeenofmajorconcernprompting

numerous engagements for our Performance and Assurance Practice.

Thislegislativefocuswillcontinue,particularlyintheUSwherethe

Environmental Protection Agency (EPA) is phasing in a raft of new

regulations on greenhouse gas reporting and air quality.

Forconventionalpowerplants,wearealsoconstantlyassessing

air, water and biological impacts to help ensure compliance with local

regulations and the adoption of safety and environmental

best practices.

Legislation is also prompting clients to address historic

contamination and this is resulting in increased demand for our site

investigation and remediation services as well as decontamination,

decommissioning and demolition. The remediation of legacy

manufacturedgasplantsinEuropeandtheUSwillremainakeyfocus,

particularly at challenging and complex sites where clean-up programs

have been underway for some time.

Power

The demand for the delivery of clean energy is accelerating the development of renewable energy projects and pushing utilities to improve the sustainability of conventional thermal electricity generation.

22

AmprionProviding environmental documentation for spatial planning and final approval of a 160km long 380kV transmission line.KlausKaiserandMartinGundert,Germany


Reducing the impact

The retirement, remediation and redevelopment of fossil fuel

power stations are also being driven by the growing emphasis on

renewables.FromhydropowerplantsinAfricaandwindfarmsin

ChinatowoodchippowerplantsintheUKandsolarinstallationsin

theUS,thedemandforcleanerenergyischanginghowtheworld

generates its power.

In line with this growth, we have been assisting numerous clients

with site selection and permitting for their renewable projects. We

have also provided advice on how to minimize the impact of new

facilities on local ecosystems and communities. This demand has

been driven primarily by a rise in renewable projects in offshore

locations, as well as hydropower projects in the developing world.

In addition to helping clients address social issues, our Impact

Assessment and Planning Practice has extended its service portfolio

to include sustainability. Although Sustainability Impact Assessments

are currently only a legal necessity for European public sector

organizations, these evaluations enable all power companies to take a

broader view of the impacts and benefits of their business initiatives.

This holistic approach is being supported by our Sustainability and

Climate Change Practice, which will continue to help clients address

both their contribution and exposure to climate change issues.

Assessing and mitigating the carbon footprint of new power plants

during the design phase is just one example of how we help

Power

E.ONKraftwerkeAGPreparing a Sustainability Impact Assessment to consider the contribution a coal fired power plant could make to the local area.PietSnoeckandMarianneFernagut,Belgium


Power

clients achieve their sustainability goals for existing, proposed and

new facilities.

The need for more extensive and better connected transmission

lines to help meet demand for renewable energy has fueled

investment in grid upgrades, with clients calling on ERM for help with

planning, site permits and stakeholder engagement.

Globalization

The trend towards globalization also played a part in driving our

work in this sector, leading to a steady demand for our Transaction

ScotiaGasNetworksHelping to assess and mitigate potential environmental risks at over 250sitesacrosstheUKthroughsoiland groundwater site investigations, regulatory liaison and development of sustainable remediation solutions.AndrewMcCusker,UK

CaseStudies

Services as clients continue to expand and merge both their

conventional and renewable activities to drive growth and

shareholder value.

Never before has there been such a high turnover of assets in this

sector, with both renewable and conventional facilities being targeted

for prospective mergers, acquisitions and divestitures.

Fromgasandcoaltosolar,hydropowerandtransmissiongrids,

we have unified the services and resources we offer to the sector to

improve the way we meet the global needs of our client base and

provide end-to-end consultancy for all types of power generation.

PhotographbyLibbySchroennwhileworkingwithcolleaguesfromJapanandSouthAfricatoassessthepotentialimpactofproposedpowerlinesintheLimpopoProvinceofSouthAfrica.


Power:Trendstowatch

Growth of renewables worldwide, withindividualSatesintheUSstrivingto meet their targets for ‘clean energy’ renewable portfolio standards.

Increased hydropower developments, particularly in South America, Asia and Africa.

Greater emphasis on effective water management especially in relation to electric generators.

Phasing out or re-configuration of fossil fuel power stations that exceed emissions limits.

Continuing drive to ‘decarbonize’ the power sector by providing economic incentives.

UncertaintyoverthevalidityofcertainCleanDevelopmentMechanism(CDM)carboncreditsintheEUEmissionsTrading Scheme.

Power

FountainIntertradeCorp/SNPowerEnvironmental and social due diligencefortheBajoFrioHydroelectric Project in the Chirirqui Viejo River Basin, Western Panama.DaveBlaha,AlbertoVegaandVinioFloris,USandEduardoCedeno,Panama


Economics and consumer demand have compelled many clients in

the manufacturing, chemical and pharmaceutical (MCP) sectors to

relocate, consolidate or expand their operations in emerging markets.

With new geographies come new challenges; for example cleaning

up a contaminated plant operated by an acquired company; carrying

out impact assessments for developing a greenfield site; safeguarding

corporate reputation through compliance and assurance activities; or

bringing together dispersed EHS teams post-merger. Whether clients

are acquiring new businesses or expanding their own facilities, they

need to ensure their activities are underpinned by good

Manufacturing,ChemicalandPharmaceutical(MCP)Geographic shift, product sustainability and a new program-based approach to environmental risks generate increased demand for site decontamination, performance assurance and life cycle assessments.

26

governance, assurance and transparency to safeguard their

investment and reputation.

Impacts throughout life cycle

With both acquisition and organic growth back on the rise, clients

increasingly need our help to identify their environmental liabilities and

maximize the sustainability of current and future production sites in

terms of energy consumption, emissions and end use of products.

With consumer buying behavior and competitive advantage

affected by the sustainability record of a company and its

BurrupNitratesPtyLtd(BNPL)

Assessing the environmental, heritage, social and potential risk aspects of a proposed Technical

Ammonium Nitrate Production FacilityintheBurrupPeninsulaof

Western Australia.BrentCarter,Australia


NALCODevelopingandimplementingaPractical Safety Training Program for company employees in Asia, Europe, North America and South America incorporating on-site, hands-on field exercises.GaryWilliamsandGregorySmith,NorthAmerica

merchandise, our clients also want to understand the

environmental, social and health impacts of individual products

throughout their life cycle.

With assistance from our Sustainability and Climate Change

Practice, we have been helping clients undertake Life Cycle

Assessments and establish Life Cycle Management frameworks,

which in Europe aid compliance with the European Chemical

Regulation, REACH. As part of these assessments, we evaluate

the resources, emissions and waste associated with production,

distribution, consumption and disposal to help clients understand –

and minimize - the carbon footprint of their products.

Supply Chain

MCP companies have taken the lead in focusing on Product

Sustainability and Corporate Social Responsibility. Our clients expect

the suppliers that build and deliver their products to conduct their own

operations in a socially and environmentally responsible manner. To

support this, we work with clients to assess their product

supply chain to ensure suppliers and vendors comply with national

and other applicable laws and regulations. We also help to integrate

strong management programs that embed responsible environmental,

health and safety, human rights and labor practices and ethical

business conduct into core and support business processes

and decision-making.

Decommissioningredundantsites

As part of the shift to low-cost production centers and emerging

consumer markets, we have been helping clients with the

decommissioning, decontaminating and demolishing of redundant

facilities, particularly in North America and Europe.

This demand for our Contaminated Site Management (CSM)

services continued throughout the recession, as many companies

were obliged to continue with site clean-up activities due to regulatory

requirements. Sustainable remediation is also of increasing

importance in these sectors and ERM is at the forefront of supporting

clients to deliver solutions that balance economic, social and

environmental issues.

Rather than address issues on an ad hoc basis, MCP firms are

Manufacturing, Chemical and Pharmaceutical


UnileverConducting sustainability audits to drive performance improvement and ensure data accuracy for reporting.JamesArcherandLarryCahill,NorthAmerica


increasingly taking a more program-based approach to contaminated

sites. As a result, we can help clients prioritize their investments

based on both current and future risks and adopt a consistent

approach across multiple geographies. A programmatic approach

also makes it easier for clients to manage reputation and

risk consistently.

In addition, we have been dealing with highly challenging soil and

groundwater contamination issues that can pose a threat to local

communities or habitats. Sediments in industrial watersheds fall into

this category and are attracting increased pressure from regulators

intheUStoacceleratetheirclean-up.Successfulresolutionofsuch

problems demands innovative approaches for biological, chemical

and thermal treatments that are based on sustainable and cost-

effective technologies.

FordMotorCompanyEnvironmental due diligence of 185 operating sites in 37 countries for planned divestiture.GregMerritt,NorthAmerica

EvonikIndustriesPerforming EHS due diligence at 150 sites across eight countries.WernerSchulte,Germany

CaseStudies

Due Diligence

The need to minimize risk and reassure investors and regulators also

prompted clients to ramp up their post-acquisition due diligence

efforts to ensure uniform environmental, health and safety standards

as well as rapid integration. With consolidation in the MCP sectors set

to continue, we expect to see a continuing strong demand for both

our CSM and Transaction Services.

ERM’s Transaction Services team has been advising both private

equity buyers and publically listed corporates on potential risks and

financialliabilitieswhenacquiringnewcompanies.Formultinationals

with a longer-term interest, we also provided advice on forward-

looking integration and sustainability challenges. This includes using

a business outcomes focus on how environmental liabilities affect the

business in the future, in addition to the cost implications of legacy

remediations and the provision of financial reserves for

such issues.

PhotographtakenbyBernlyBresslerduring

projectincludingfulltimeoversightofcontractorsforworkincludingbuildingdemolition,debris

classification,sortinganddisposal,airmonitoringandimplementingofERMbehavioralbased

safetyprogram.


Manufacturing,ChemicalandPharmaceutical:Trendstowatch

Ongoing need for compliance auditing and performance assurance throughout the product life cycle.

Inclusion of product safety management issues in the due diligence process for mergers and acquisitions.

Licensing of greenhouse gas emissions from industrial facilities inNorthAmericatomeettheUSEnvironmental Protection Agency’s Subpart W.

Increased demand for site decontamination in emerging markets as global players acquire local companies and facilities.

Growing adoption of Leadership in EnergyandEnvironmentalDesign(LEED)greenbuildingstandardsfornew facilities being developed in Korea, Japan and China.

Greater focus on solving the root cause of contamination issues to remove the liability from the corporate balance sheet.

PhotographbyBenoit

Vanweldewhilecarryingoutpermittingworkforproposedcommunicationscablesystem

inWestAfrica.



FinancialPerformance 30Strong financial performance and ongoing investment in the future growth of the business as we continue to thrive.

Strongprofitablegrowth

The financial year ended 31 March 2011 represented another

successful 12 months for ERM. At constant exchange rates, we

increased our net consulting revenue by 12% and our trading profit

by 18%. In total, trading profit grew faster than net revenues, and the

impact of this positive operational gearing raised our operating margin.

Once again we maintained a strong operating cash flow, which

was just below 100% of trading profit. Since the year end we have

completely refinanced the business to provide us with the financial

ability to continue to grow both organically and by acquisition.

On 1 April 2010, ERM acquired the trade and certain assets of IRC

Risk and Safety LLC, a Texas-based limited liability company providing

process safety and risk management consulting services. We have

integrated IRC with our core operations and trading for that part of

"The financial year ended 31 March 2011 was a highly successful year for ERM both in terms of strong financial performance and ongoing investment in the future growth of the business."

AndrewSilverbeck,GroupFinanceDirector

the business has been above expectations, with post-acquisition net

revenue in this business growing by over 30%.

Our “niche” global business areas – Information Solutions, which

delivers systems for gathering and using Environmental, Health and

Safety information, and Certification & Verification Services (CVS) –

continued to grow rapidly, with trading profit up 20%. We increased

our ownership stake in Information Solutions by 5% to 95% during

2011, and completed the purchase of the remaining shares shortly

after the year end to attain full ownership.


FinancialPerformance

[1] CAGR: Compound Annual Growth Rate[2] EBITA: Earnings Before Interest, Tax and Amortization

Historical Financial Performance

US$(millions)

AtactualFXrate

FY2007 FY2008 FY2009 FY2010 FY2011 CAGR (1)

FY07-FY11

GrossRevenues 533 639 695 607 681 6.3%

NetRevenue

EMEA 107 142 130 106 112

Asia Pacific 52 64 80 84 98

LAC 21 28 28 24 28

North America 175 203 222 192 219

Niche Businesses 7 10 11 14 20

TotalNetRevenue 362 446 471 420 477

% Growth - Constant Currency 14.4% 23.0% 5.6% (10.8%) 13.5% 7.1%

% Growth – Actual 14.3% 18.6% 8.9% (10.5%) 12.0%

TotalTradingEBITA(2) 47 59 60 58 69 10.2%

% Growth - Constant Currency 8.1% 25.7% 1.5% (3.4%) 19.6%

% Growth - Actual 5.6% 24.5% 5.8% (5.7%) 18.2%



Sales by Region FY11

Niche Business4%

North America42%

LAC6%

APAC21%

EMEA27%

Sales by Industry Sector FY11

Mining / Metals9%

Manufacturing / Retail21%

Other5%

Financial/Legal5%

Oil & Gas30%

Government4%

Power6%

Transportation & Construction6%

High Tech & Telecommunications2% Chemical &

Pharmaceutical12%

Ourpeopleandstrategy

During2011weexpandedourPartnerbaseby14%,whichwillhelp

enhance offerings and outcomes for our clients. This expansion

included the promotion of ERM employees as well as external

recruitment of experienced professionals.

WealsoappointedaGlobalHumanResourcesDirectorwhowill

deliver our people strategy and ensure that ERM continues to provide

a great working environment, with suitable career challenges and

opportunities for our people. We ended the financial year with 3,880

employees, an increase of 17%.

We combined our North America and Latin America & Caribbean

(LAC) regions into a single entity. Creating a combined Americas

region will help accelerate our strategic goals and improve

collaboration across the company’s practices.

A key element of all aspects of our strategy is sustainability.

ERM aims to create long-term shareholder value by balancing the

necessary financial performance of the company with how we affect

and contribute to the world’s environment and communities.

Corporategovernance

The over-arching governance framework has remained similar to

last year’s. The Board met a total of seven times on approximately

abimonthlybasis.Day-to-day,thecompanyremainsunderthe

management of the Executive Committee, which is supported by

the Senior Leadership Team and a broader group of senior Partners.

These groups consist of the senior executives heading up our

geographic, practice and sector business divisions as well as business

development, people development and other support functions.


Our Executive Committee meets monthly, typically by video

conference, in order to maintain focus on the strategic initiatives of the

company. The Senior Leadership Team meets two to four times a year

in locations around the world, which enables us to meet with clients

and our people and to share knowledge across a variety of markets.

Every day ERM is engaged in working on challenging projects for

our clients around the globe. We recognize the trust that our clients

place in us and are committed to the highest ethical behavior and

personal integrity in all our transactions. We continue to develop our

risk management procedures and take every reasonable measure to

ensure that everyone working for the company adheres to our global

values and our Code of Business Conduct and Ethics.

Summary

The financial year ended 31 March 2011 was a highly successful year

for ERM both in terms of strong financial performance and ongoing

investment in the future growth of the business.

Thanks to the diversity of ERM’s expertise across geographies,

practices and sectors, our business continues to thrive and we are

excited about our ongoing prospects.


Andrew Silverbeck

GroupFinanceDirector

Sales by Practice FY11

Contaminated Site Management36%

Performance & Assurance30%

Transaction Services8%

Impact Assessment & Planning19%

Sustainability & Climate Change7%

Chevron

Simplifying compliance and enabling cost savings which centralized HES Information

Management System.PiersTouzel,China


ERMFoundation

Supporting environmental causes around the world via pro-bono work and matching funds.

34

TheERMFoundationharnessestheenthusiasmandexpertise

of ERM staff to support environmental initiatives around the

world. Employees raise funds and volunteer their time to provide

technical and practical support for projects relating to carbon

reduction, biodiversity and conservation, clean water and

sanitation and environmental education. ERM provides pro-bono

time and matching funds to support these activities.

TheNorthAmericaFoundationawardsgrantsannuallyto

organizations committed to improving quality of life, preserving

the environment and inspiring environmental responsibility. Recent

funding has helped to provide clean drinking water in developing

countries, protect ecosystems and teach environmental

stewardship to young people worldwide.

TheFoundationhasestablishedaLowCarbonEnterpriseFund

(see box right) to provide finance for low carbon enterprises in the

developing world. We consider this Low Carbon Initiative to be a

more sustainable alternative to carbon off-setting.

Formoreinformationvisit:

TheERMFoundationatwww.erm.com/foundation

TheLCEFatwww.ermfoundation-lcef.com

North American Grants at: http://www.erm.com/About-Us/ERM-

Foundation/Regional-Foundations/The-Foundation-/

“WorkingwiththeFoundationhas

benefitted me personally because

of the tremendous pride I have in

being able to give back. It makes

me feel that ERM has a strong

sense of community and a real

commitment to sustainability.“

DebbieLind,NorthAmerica

TheLowCarbonEnterpriseFund(LCEF)

TheLCEFisakeyprogramoftheERMFoundation.Itwas

established to support social entrepreneurs in the developing

world to develop low carbon businesses.

TheLCEFprovidesfinancialassistanceintheformofloans

and equity and also utilizes the expertise of ERM consultants to

provide pro-bono technical and management support for a wide

range of low carbon ventures. ERM covers all the support costs of

theFundensuringthatallmoniesraisedgodirectlytotheventures

we support.


CarbonReduction

SolarPoweredmobile

phonechargingstationsin

BurkinaFaso

We have invested in this

innovative venture that brings

mobile communications and

employment opportunities to

rural communities, reducing their

reliance on polluting

diesel generators.

BiodiversityandConservation

ConservingNaturalHabitatofWinteringBirdsinTexas,NorthAmerica

VolunteersfromtheNorthAmericaFoundationcarriedouthands-on

conservation work restoring wild prairie land, used as a refuge for thousands

of wintering birds.

CleanWaterandSanitation

ProvidingaccesstocleanwaterforTibetanvillages

This project has helped bring a clean source of drinking water within

easy reach of three remote villages whose inhabitants previously

needed to travel long distances to obtain potable water.

EnvironmentalEducation

EnvironmentalEducationinAsia,EuropeandAmerica

VariousinitiativeshavebeenstartedbyFoundationvolunteersaroundtheworld

to improve environmental education and drive forward the sustainability agenda

in local schools.

ERMFoundation


Ourclientsinclude:

AkzoNobel

Alcatel-Lucent

Amprion

Anglo American

AustralianDepartmentofDefence

BASF

Bayer

BectonDickinson

BNPL

BNSFRailwayCompany

Boehringer Ingelheim

Boeing

ChevronUSAInc.

Danaher

Dell

DuPont

Energy Resources

E.ON Kraftwerke

Evonik Industries

FordMotorCompany

General Electric

Ingersoll-Rand

Janssen Pharmaceutical Companies of Johnson & Johnson

Nalco

Newcrest Mining Limited

Novartis

Oracle

Panasonic

Peru LNG

Plains All American Pipeline

Procter & Gamble

Rio Tinto

Sanofi-Aventis

SATORP

Schlumberger

Scotia Gas Network

Scottish & Southern Energy Renewables

Shell International Petroleum Ltd

Siemens

Statoil

Suez Environment

Syngenta

Texas Custodial Trust

Total

Tullow Ghana Ltd

Unilever

PhotographbyGrace

Barassowhilecarrying

out social consulting

workintheArctic.

Credits

ProducedbySamanthaBouzanwiththecollaborationof

colleaguesaroundtheworld.

ThephotographsfeaturedinthisReviewhavebeentakenby

ERMemployeesorprovidedbyclients.

FrontcoverphotographtakenbyBernlyBressler.

VisionandValuesphotographtakenbyLindenEdgell.

Design:SolidBlockwww.solidblockdesign.co.uk

Published:October2011

ERM'sAnnualReviewispublishedonpaperthatis

100%recycled.

Global

John Alexander

CEO

[email protected]

Shawn Doherty

GlobalCommercialDirector

[email protected]

Andrew Silverbeck

GroupFinanceDirector

[email protected]

Barrett Cieutat

DirectorofCorporatePrograms

[email protected]

www.erm.com

The Americas

David McArthur

Regional CEO

[email protected]

EMEA

John Simonson

Regional CEO

[email protected]

Asia Pacific

Keryn James

Regional CEO

[email protected]

Global Practice Leads

Air Quality and Climate Change

Ken Weiss - [email protected]

Contaminated Site Management

Andrew Huggins - [email protected]

Impact Assessment and Planning

Steve Laking - [email protected]

Performance and Assurance

Brian Kraus - [email protected]

Risk Management

Malcolm Hutton - [email protected]

Sustainability Strategy

Shawn Doherty - [email protected]

Transaction Services

Mark Errington - [email protected]

Global Sector Leads

Oil and Gas

Maximo Hernandez - [email protected]

Power

Leah Bissonnette (Americas) - [email protected]

Malcolm Hutton (EMEA) - [email protected]

Mining

Geoff Byrne - [email protected]

Manufacturing, Chemicals and Pharmaceuticals

Mike Smylie (Americas) - [email protected]

John Waters (EMEA) - [email protected]

David Snashall (APAC) - [email protected]

Find all office contact details by visiting erm.com

Documents

Erm annual report