Construct for Growth Zara Lamont OBE Performance Improvement Director Carillion Building 10 th September 2008

Carillion Plc – Who are we? Support services and Construction company Employ around 50,000 people Annual Revenue of approx £5bn Based: Britain, Europe, Canada, MENA, Caribbean Sectors: Health, education, regen.,road, rail, defence, and commercial property.

‘Wake up Call’ Twyford Down

Sustainability Planet Profit People Carillion provides sustainable solutions for the way we live

1994 our first steps were : Independent Advisory Panel Create an Environmental Policy Develop an Environmental Management system KPI’s World Wildlife Fund – Timber Group

1999 Princess Margaret Hospital The Natural Step Waste Management Energy Reduction Wildlife protection Community Liaison Last Environmental Prosecution

Sustainability Journey

Sustainability Committee (chaired by John McDonough, Chief Executive) MD’s Sustainability Group (chaired by David Hurcomb, Executive Director) Sustainability Operations Group (SOG) Building Sustainability Group Business Unit Groups Sustainability Management

Attract, develop, retain excellent people Margin Improvement Winning more work Risk Management and Reputation The business drivers

The true cost of waste is generally around 20 times the disposal cost: Purchase of materials Cost of storage, transport and disposal of waste Loss of income from selling salvaged materials Waste and Resource Management

Carbon Footprint Reduce energy consumption Understand energy profile Use preferred energy provider – Scottish and Southern – Green CCL exempt energy

If every company car driver in Carillion Building drove 1000 miles less per year (around 3 return journeys from Wolverhampton to London) this would save the business in the order of £50,000 and reduce the our carbon emissions by over 100 tonnes Every minute that somebody in Carillion is using a VC unit rather than driving to a meeting, the company is saving 95p Travel

2003 Oxford John Radcliffe Hospital Achievements and benefits: Waste management – 90% diverted from landfill Green transport plan – Carbon dioxide emissions reduced by more than 20% Linoleum used on 60% of floors – biodegradable and enhanced life cycle, £264k saving over life of project Ceiling tiles made from 30% post-industrial waste – £60k saving and tiles environmental friendly Paint delivered in 10ltr metal cans – cheaper to buy doesn’t result in plastic cans which can’t be recycled

2007 Asda Bridgend A Waste Neutral Construction Project

Developed by Waste and Resources Action Programme (WRAP) New method of measuring: The use of building materials made from recycled content and the reuse of waste materials The waste generated during a construction project The Net Waste Tool calculates value of materials wasted versus value of recycled or reused materials Net Waste

The Toolkit gave us this information: Predicted cost of waste: £118,241 Equals 1.53% of value of construction materials £300,000 more recycled content than a standard equivalent building to be used The Net Waste Tool - Asda Bridgend Estimated materials cost £7.7 million W Value of wasted materials & packaging £118,000 - R Value of recycled content & reused materials – £300,000 = Z Net Waste - £182,000

Key strategies for minimising the cost of materials wasted at Asda Bridgend Material Waste minimisation strategy adopted Stone, bricks, blocks, concrete, tiles  On site crushing and reuse Concrete lift well  Prefabricated off site manufactured in sections Steel frame  Standardised, off site manufactured Aluminium wall cladding  Panellised modular construction Aluminium roof sections  Rolled on site to exact lengths required Plasterboard  Take-back scheme  Off-cuts reused Timber Terrazzo tiles  Off-cuts reused

Design -More influence in Design and Build -Influenced reuse of demolition material on site Supply Chain -Made subcontractors responsible for waste, with particular focus on packaging -Influenced specification to increase recycled content On Site - 16,006 m 3 of 6F2 grade fill produced from site won rock and reused on site and 17,619 m 3 of site won general fill produced from excavation and reused on site As so much recycled content was used, the project was declared waste neutral Asda Bridgend

True cost of waste revealed allowing focussed actions Main sources of waste by value identified so focus can be given to reduce largest opportunities Allows a percentage recycled content to be targeted, which is becoming increasingly important to clients – BSF, Defence, Health Assists in the development of pan Carillion Site Waste Management Plans in obtaining value of estimated waste and setting waste reduction targets Allows cost reduction/increased profits through waste minimisation/waste management So what does this mean to us as a business? - Benefits of Good Waste Management

Strategic approach to waste minimisation and management Use of Net Waste Tool on further projects Site Waste Management Plans – already on all CB sites Waste targets (tonnes / £100k) Influence Design in choice of materials, waste minimisation and recycled content Influence Supply Chain in choice of materials, waste minimisation and recycled content What are we doing to make this happen across Carillion?

This is a journey - but you have to get started In Summary Needs commitment – can’t play at it Makes Business Sense – adds value to your bottomline It won’t go away – legislation / society demanding it