2003 Sustainability Objectives and Targets

To enable us to demonstrate to our businesses, clients, suppliers and other stakeholders that there is a real business benefit to implementing our sustainability strategy we have directly aligned our 2003 sustainability objectives and targets to our core business objectives. Thus ensuring that by delivering our business objectives we will be improving our sustainability performance and by delivering our sustainability objectives we will be improving our business performance.

We achieved this by reviewing the KPI strategy model and linking this to our four core business objectives. This cross linkage allowed us to identify 13 strategic KPIs. We then assessed the value in numerical terms of achieving each of the KPIs to determine the closest links between our core business and sustainability objectives. The findings of this assessment were used to determine our 2003 objectives and targets, which are detailed below:

Corporate Sustainability Objectives and Targets for 2003

Social Progress

Communicate and share Carillion's sustainability strategy, vision and policy with all and continually improve the way in which Carillion engages with its stakeholders

1

Create a community strategy for Carillion.

2

Contribute at least 1% of profits to community activities (cash and in-kind support).

3

Demonstrate competency improvement in chosen populations of Carillion people.

4

All Carillion employees to have an appraisal at least once a year. New employees to have appraisal within first 12 months of employment.

5

Raise awareness and improve our occupational health performance.

6

Ensure "Safety by Design" is applied to mitigate hazards at source where we have design input.

7

Use behavioural safety techniques to improve our health and safety culture.

Protection of the Environment

Minimise negative impacts of Carillion's services and activities on the environment

8

Create and measure positive media comments for environmental and community issues.

9

Create a "restricted list" of products that should not be used on our projects.

10

Enable all employees to incorporate sustainability into their area of work.

11

Investigate the feasibility of a biodiversity action plan for Carillion.

Prudent Use of Natural Resources

Reduce waste production across Carillion

12

Implement waste management plans and site specific transport plans developed in 2002

13

Investigate the feasibility of a zero waste policy for Carillion.

Reduce energy consumption across Carillion

14

Reduce energy consumption in Carillion's Head Office's, measured by kWh/m², by further 5% over baseline figures.

15

Reduce average unit CO₂ emission per litre of combusted fuel by 10% across the car fleet.

Economic Growth and Prosperity

Demonstrate the business case for sustainability

16

Communicate the business case for sustainability in Carillion.

17

Establish a process for assessing customer satisfaction for key customers and start to implement.

Engage Carillion's supply chain in the sustainability programme to improve supplier sustainable development performance and assist in achieving Carillion's targets.

18

Roll out new supply chain performance improvement tool across Carillion's managed categories.

We were pleased to be invited by Business in the Community to help its members develop similar processes to link business strategy to environmental strategy. This should help them identify the business case for adopting a more sustainable approach to delivering business success.

In order to ensure that the corporate objectives and targets are fully embedded into the culture of our businesses we consulted various groups within Carillion before the targets were accepted.

In addition to the corporate objectives and targets each business group sets specific ISO 14001 objectives and targets. These targets are designed to control and minimise the specific environmental issues associated with the activities of the individual business groups and are in line with the focus of the corporate objectives and targets. Examples of business group objectives and targets can be received by completing a feedback form.