Environmental Management in Severn Trent

1. Environmental Management in Severn Trent Sue Painting Severn Trent Plc

2. Environmental Management in Severn Trent • Agenda • 1.The Severn Trent Group • 2. Positioning • 3. Background to EMS • 4. EMS framework • 5. How it works in practice • 6. Conclusion

3. Environmental Management in Severn Trent SEVERN TRENT PROPERTY

4. Environmental Management in Severn Trent Severn Trent Positioning Our corporate vision is to be at the forefront of the environmental services industry. Our corporate values of Environmental Leadership, Service and Quality, enshrined in our Code of Conduct, define our business culture and guide our strategies.

5. Environmental Management in Severn Trent Background 1992 Group CEO appointed as Board member responsible for environmental matters and Environmental Directorate created 1993 First environmental report following review of performance. EMS developed to BS 7750 standard 1999 Group EMS revised and awarded ISO 14001 certification

6. Environmental Management in Severn Trent Severn Trent Board Corporate Responsibility Advisory Committee Corporate Affairs Director Commitment Biffa Policy Review Protocols Severn Trent Water Aspects Audits Severn Trent Laboratories Environmental Management System Objectives Targets Group Corporate Responsibility Team Corporate Responsibility Forum Other Group Companies

7. Environmental Management in Severn Trent Board Corporate Responsibility Committee – Terms of Reference • Provide policy guidance in relation to the following key corporate responsibility issues facing the Company: • - The development, review and promulgation of environmental policies particularly those that relate to the activities where the Group has its most significant environmental impacts in respect of energy management and climate change, waste and resource productivity and biodiversity and land use; • - The maintenance and continuing effectiveness of the Group’s ISO14001 certified environmental management system and review of the annual cycle of environmental audits to ensure compliance with Group protocols;

8. Environmental Management in Severn Trent Severn Trent Board Corporate Responsibility Advisory Committee Corporate Affairs Director Commitment Biffa Policy Review Protocols Severn Trent Water Aspects Audits Severn Trent Laboratories Environmental Management System Objectives Targets Group Corporate Responsibility Team Corporate Responsibility Forum Other Group Companies

9. Environmental Management in Severn Trent Corporate Responsibility Policy

10. Environmental Management in Severn Trent Our EMS • Simple • Minimal documentation and bureaucracy • Integral part of ‘the business’ • Transparency • Encourages innovation

11. Environmental Management in Severn Trent Severn Trent Board Corporate Responsibility Advisory Committee Corporate Affairs Director Commitment Biffa Policy Review Protocols Severn Trent Water Aspects Audits Severn Trent Laboratories Environmental Management System Objectives Targets Group Corporate Responsibility Team Corporate Responsibility Forum Other Group Companies

12. Environmental Management in Severn Trent • Environmental Management Protocols • Establish the standard to which the business units should operate • Allows flexibility to meet the needs of the businesses • Implementation of the protocols are audited on a regular basis

13. Environmental Management in Severn Trent • Protocols • 1.Roles and responsibilities • 2. Environmental aspects, objectives and targets • 3. Legal and other requirements • 4. Corporate reporting • 5. Audit of operating companies • 6. Staff awareness • 7. Operations • 8. Acquisitions and divestitures • 9. Document control • 10. Environmental claims • 11. Emergency preparedness • 12. Reporting of environmental incidents • 13. Supply Chain Management

14. Environmental Management in Severn Trent Severn Trent Group – Significant Aspects

15. Environmental Management in Severn Trent Reporting Performance - Stewardship 2004 • 12th yearofreporting environmental performance • Group-wide data and targets • Key performance indicators covering: • Environment • Workplace • Community • Marketplace and Economic

16. Environmental Management in Severn Trent • Climate change • Objective • To pursue a group-wide carbon management strategy that tackles climate change in the longer term • Adaptation - adapting to threats and opportunities • Mitigation - minimising our impacts Energy management Transport

17. Environmental Management in Severn Trent Climate Change – Managing Greenhouse Gas Emissions • Biffa • Increase energy generation capacity to 100 MW by 2005/06 • Continue the programme to reduce fuel consumption compared to business activity • Laboratories • Stabilise travel by air and road-based transport at current levels relative to business activity • STW • Generate at least 7% of total energy use from renewable sources by 2005

18. Environmental Management in Severn Trent Climate change We generate from renewable sources the equivalent of over 40% of our total electricity needs

19. Environmental Management in Severn Trent EMS Audit Process • Annual self-assessment questionnaire to all business units. • - Trends in performance monitored • Independent audit by Severn Trent Plc • Frequency defined by environmental significance of activities and previous performance • Sites audited on a sample basis • Auditors from other business units support Plc Auditor • Reported to Board Corporate Responsibility Committee

20. Environmental Management in Severn Trent • Benefits of Group EMS • Provides a framework for environmental management across the group • Ensures designation of responsibility and accountability for management of environmental matters • Requires measurement of environmental impacts, hence management information • Establishes commitment to continual improvement • Management of environmental risk