1. Presentation to: Ayrshire Occupational Health and Safety Group Presented by: Michael Lynch, Serco Energy and Sustainability Team, mlynch@serco.com Environment and Sustainability

2. Presentation overview My background and experience Serco’s approach to environment and sustainability Energy and Sustainability team activities and services Case Study : GCC contract Case study: Coke contract General approach to improving ES performance Forthcoming impacts Links Q & A People | Partnership | Public Service

3. Experience and Background Education and experience: BSC Environmental Management and Technology @ Glasgow Caledonian until 2001 Shell Technology Enterprise Programme 3 rd & 4 th year with Caledonian Alloys Volunteered with BTCV – kerbside recycling / beach clean ups / rhoddy bashing etc Energy Saving Trust – Energy Efficiency Advice Centre, supporting LAs The Wise Group – social enterprise Serco - public and private sector Integrated Services clients 10 years experience covering public, private and third sector organisations My background and impact: Interest in natural heritage and biodiversity Hillwalking, fishing and golf Green tariff, insulation, timers, my local farm, offset car emissions Travel footprint large – work from home, webinars to offset 2 kids! People | Partnership | Public Service

4. A Unique Company… Serco is a FTSE100 international service company which combines commercial know-how with a deep public service ethos People | Partnership | Public Service

5. Serco’s approach to Environment and Sustainability Operating in UK since 1929 and now delivering sustainability across the public sector Corporate Assurance Group Divisional Environmental Management System 2005 Divisional Carbon Management Strategy 2006 Recognition for CSR achievements via Business In the Community (BITC) Serco Strategy Director sits on the UK government’s Sustainable Development Commission Serco CEO appointed as BITC National Ambassador in 2009 Energy and Sustainability business unit since 2008 People | Partnership | Public Service Did you know ? “Serco are committed to delivering sustainability both globally and locally, for example we contribute to the Intergovernmental Panel on Climate Change via our work at the National Physics Laboratory and are involved in operating the London Bike Scheme”

6. Energy & Sustainability Business unit services Targeted Service Outcomes Cost savings Carbon reductions Legal compliance Enhanced reputation Engaged employees Cutting edge technology Smart commercials

7. E&S Team Selected Experience Energy and Sustainability audits State Street Bank EMEA offices Technical energy audit campaigns Deloitte / Glasgow City Council / Microsoft Tariff analysis and bill validation Glasgow City Council Utility procurement and energy bureau services Coke / State Street Bank EMEA offices Utility monitoring and measurement software Coke / UK government Shared savings initiatives / technical solutions Range of public and private sector clients

8. E&S Team Selected Experience EMS development / implementation / support Coke / State Street Bank / Deloitte Ireland / Access Landfill avoidance / Waste minimisation Selected health sector clients Carbon Offset advice Deloitte Ireland Greenhouse Gas Measurement and Reporting Coke / Deloitte Ireland Organisational culture / behavioural change Coke / Glasgow City Council Sustainability Strategy Ofsted

9. Case study: GCC – Savings delivered 2009 Service ElementAnnual Savings Retrofit technology programme£50,000 Voltage optimisation£120,000 PC Shutdown£50,000 Boiler controls£15,000 Wrong tariff correction£65,000 Control strategies£15,000 May – Dec 2009£265,000 Resource Cost Annual Savings 9

10. Case Study: Coke Green team formalised with Senior Management Implemented ISO 14001 in corporate HQ Sustainability services embedded within Serco FM services Building operation improvements CapEx - Plant / waste / lighting Supply chain improvements Best Green Companies Awards Communication – engaged employees Pushing improvement through ISO People | Partnership | Public Service

11. Improving Performance – EMS model Understand impacts and compliance Set targets Commit resources Allocate responsibilities Communicate Formalise documentation Monitor and measure Review performance Continual improvement Ongoing Senior management commitment vital People | Partnership | Public Service

12. Improving Performance – Focus areas Environmental legislation – waste, oil management, refrigerants, COSSH etc Monitoring and measurement Utility use Waste hierarchy Resource efficiency Supply chain Business travel Communications and training – staff engaged and informed Corporate image People | Partnership | Public Service

13. Improving performance – sustainability roadmap 13 Establish ‘Greenprint’ Big picture 3-5 year roadmap Clear overarching targets Priority based actions Waste and Recycling GHG measurement Supply chain Behavioural change Deliver Projects Develop Strategy Realise Benefits Carbon reduction Compliance Engaged workforce Best Practice Critical Success Factors Budget Requirements Delivery Timescales Cost savings Continual improvement Utility Management

14. Forthcoming Impacts – CRC Energy Efficiency Scheme People | Partnership | Public Service The CRC Energy Efficiency Scheme is a mandatory “Cap & Trade” climate change and energy saving scheme. It will affect organisations in the private and public sector including the NHS, Schools & Local Authorities. Registration due 31 st September 2010. Information needs to gathered from year 2008 to verify qualification. On an annual basis organisations will be required to report all their UK-based CO2 emissions from all their fixed point energy sources electricity, gas, oil and LPG. Inclusion Assessment required if not already undertaken Early action metrics Compliance strategy (cash flow impact, OpEx, CapEx, Growth, property portfolio, competitor analysis, financial and brand risk) Government spending review will affect CRC EES

15. Forthcoming Impacts – GHG Measurement and reporting People | Partnership | Public Service Climate Change Act 2012 mandatory GHG Scope unclear as yet Accurate picture of CC impact Regulatory schemes in place Medium – low impact Non energy intensive

16. Forthcoming Impacts – GHG Measurement and reporting People | Partnership | Public Service Internationally recognised Greenhouse Gas Protocol 3 scopes

17. Forthcoming Impacts – GHG Measurement and reporting People | Partnership | Public Service Defra / DECC guidance Refined, more precise CO2e Conversion factors Comprehensive guidance - Calculating - Tracking emissions - Reporting

18. Forthcoming Impacts – GHG Measurement and reporting People | Partnership | Public Service

19. Links Wrap – resource efficiency Netregs – SME env legislation Carbon Trust – low carbon economy Energy Saving Trust – assist with domestic sector / employees Act on CO2 – climate change SEPA – regulation issues Defra / DECC - guidance

20. Discussion & Clarifications 20