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Resource usage

Goals

We increasingly focus on the sourcing of materials, usage of non-renewable resources and our supply chain. We set the following goals for resource usage for the first time in 2005 and continue to work towards them.

• To develop further our approach to sustainable construction, including usage of resources
• To encourage environmental engagement among our suppliers
• To reduce the use of non renewable resources through design and specification of materials
• To source timber increasingly from certified sources
• To encourage the sourcing of local materials

As an overall indicator of environmental engagement in our supply chain, we measure in each operating company the number of top twenty suppliers by spend that are certified to ISO 14001.

In 2006 in the UK, at least 29% of the top twenty suppliers are certified to ISO 14001 (26% in 2005). In other parts of Europe the figure is 24%, and 25% in all other international businesses combined.

Timber

Procuring timber from well-managed and sustainable sources is important to all of our businesses and in 2006 our operating companies have improved their policies and procurement procedures to support this aim.

A number of Operating companies have approached their customers and timber supply chain to develop “Joint Procurement Initiatives” aimed at purchasing of timber from sustainable sources.

In 2006 we succeeded once again in increasing our sourcing of certified timber (FSC or PEFC) to 78% (64% in 2005) of UK timber spend. 66% was purchased from a purely FSC managed source.

Aggregates

Our civil engineering road construction projects and utilities businesses generate large quantities of inert material and require aggregates of various types. We adopt creative approaches to the sourcing of aggregates and disposing of surplus materials.

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