We measure up well against
objectives described in last year's Report and Accounts. For example,
in line with our aims of setting reduction targets for aspects
of environmental performance by 2002, we expect to sign up to
the UK government's Making a Corporate Commitment Campaign by
the end of 2001. Also, we successfully introduced a system of
environmental metrics last year to enable us to measure performance
in many areas including environmental expenditure/cost
savings, greenhouse gas emissions, water, waste, energy, and hazardous
substances. We are now upgrading this for reissue at the end of
2001, and extending it to cover businesses acquired during the
year.
Our group Environmental Manager and an external consultancy completed
the site audits scheduled for the year starting with the
major European businesses and extending to North American facilities.
This brings the number of such audits to more than 70 over the
past two years. Action plans have been developed for each facility
audited and a database is maintained to track the implementation
of these actions. During this programme, we also piloted our new
company Environmental Standards to meet our objective of establishing
controls and best practice in environmental management in 2001.
Working towards our goal of improving environmental awareness
and knowledge of company staff, 21 environmental co-ordinators
completed a certified foundation course in environmental management,
and 12 product designers took part in a workshop examining the
implications on our business of European product take-back and
recycling legislation.
Sharing best practice and attaining ISO 14001
We continue to develop our
culture of sharing best practice through conferences, training
events, demonstration projects and site visits. At our Environment
Conference, directors, managers and other staff from UK businesses
generated ideas for shaping environmental management to meet the
demands of our global operations, and these will be explored further
in future events.
We also set up two, 18 month demonstration projects geared to
collective learning and developing common approaches to implementing
ISO 14001 and to minimising waste. Each involves five companies,
and the waste minimisation project includes two of our largest
consumers of energy in the UK, Smiths Aerospace at Cheltenham
and Smiths Medical (Portex) at Hythe. With
some 28% of our manufacturing sites certified under ISO 14001,
our enlarged organisation now has considerable experience and
materials to share across the group. This will help us to reach
our target of all our major manufacturing facilities achieving
certification to ISO 14001 by the end of 2003. To date, 36 businesses
worldwide have achieved ISO 14001 certification.
Product stewardship
We continue to integrate
environmental considerations with product development. For example,
we are working to reduce fugitive emissions in the process industries
through sealing solutions; we have developed fuel-saving on-board
systems for aircraft (such as the Queen's Award-winning Electrical
Load Management System) and energy-efficient fans from Vent-Axia
(Lo-Watt range). Within our Industrial activities, the Interconnect
businesses are researching options for phasing out the use of
lead (in solder and elsewhere) ahead of European Union Directives.
However, we recognise that these are merely first steps, and will
undertake further work to spread such initiatives more widely.
Future commitments
In addition to the on-going
programmes described above, we are taking
a number of important steps to improve environmental management
capability across the group and communicate our achievements.
One important aim is to have web-based resources for environmental
management in place by the end of 2001, after which we will continue
to develop and update the information in line with changes in
legislation, technology, and know-how. In the light of this year's
audit findings, we are also revising the company Environmental
Standards for the year ahead, and providing a package of ISO 14001
support measures for businesses including training, advice,
and the sharing of tools and approaches to implementing the standard.
By 2003 we will have sufficient consistent data to be able to
publish an environmental report for the group.
Positive force for success
We see our progress in each
of these areas human resources, H&S, and environmental
issues as a positive force for commercial success, and
the integration of best practice into everyday operations is gaining
momentum. In particular, we are meeting the challenge of our global
dimension with a strong focus on retaining and managing knowledge
and key skills. This includes the international succession-planning
programme through which we will benefit fully from developing
the talents and entrepreneurial outlook of high-calibre people
within the group.