Construct for Growth

Zara Lamont OBE Performance Improvement Director

Carillion Building

10th September 2008

Carillion Plc – Who are we?

• Support services and Construction company• Employ around 50,000 people• Annual Revenue of approx £5bn• Based: Britain, Europe, Canada, MENA, Caribbean• Sectors: Health, education, regen.,road, rail, defence, and commercial property.

‘Wake up Call’

Twyford Down

Sustainability

Planet

Profit

People

Carillion provides sustainable solutions for the way we live

1994 our first steps were : • Independent Advisory Panel

• Create an Environmental Policy

• Develop an Environmental Management system

• KPI’s

• World Wildlife Fund – Timber Group

1999 Princess Margaret Hospital

The Natural Step

• Waste Management

• Energy Reduction

• Wildlife protection

• Community Liaison

Last Environmental Prosecution

SustainabilityJourney

• Sustainability Committee (chaired by John McDonough, Chief Executive)

• MD’s Sustainability Group (chaired by David Hurcomb, Executive Director)

• Sustainability Operations Group (SOG)

• Building Sustainability Group

• Business Unit Groups

Sustainability Management

• Attract, develop, retain excellent people

• Margin Improvement

• Winning more work

• Risk Management and Reputation

The business drivers

• The true cost of waste is generally around 20 times the disposal

cost:

• Purchase of materials

• Cost of storage, transport and disposal of waste

• Loss of income from selling salvaged materials

Waste and Resource Management

Concrete / Brickwork15%

Timber22%

Metal8%Pallets

2%

Packaging18%

Plasterboard15%

M & E2%

Other18%

Concrete / Brickwork

Timber

Metal

Pallets

Packaging

Plasterboard

M & E

Other

Waste and Resource Management

Carbon Footprint

• Reduce energy consumption

• Understand energy profile

• Use preferred energy provider – Scottish and Southern – Green CCL exempt energy

If every company car driver in Carillion Building

drove 1000 miles less per year (around 3 return

journeys from Wolverhampton to London) this

would save the business in the order of £50,000

and reduce the our carbon emissions by over 100

tonnes

Every minute that somebody in Carillion is using a VC

unit rather than driving to a meeting, the company

is saving 95p

Travel

2003 Oxford John Radcliffe Hospital

Achievements and benefits:

• Waste management – 90% diverted from landfill• Green transport plan – Carbon dioxide emissions reduced by more than 20%• Linoleum used on 60% of floors – biodegradable and enhanced life cycle, £264k saving over life of project• Ceiling tiles made from 30% post-industrial waste – £60k saving and tiles environmental friendly• Paint delivered in 10ltr metal cans – cheaper to buy doesn’t result in plastic cans which can’t be recycled

2007 Asda Bridgend A Waste Neutral Construction Project

• Developed by Waste and Resources Action

Programme (WRAP)

• New method of measuring:• The use of building materials made from recycled content and

the reuse of waste materials

• The waste generated during a construction project

• The Net Waste Tool calculates value of materials

wasted versus value of recycled or reused

materials

Net Waste

The Toolkit gave us this

information:

• Predicted cost of waste:

£118,241

• Equals 1.53% of value of

construction materials

• £300,000 more recycled

content than a standard

equivalent building to be

used

The Net Waste Tool - Asda Bridgend

Estimated materials cost £7.7 million

WValue of

wasted materials& packaging

£118,000

- RValue of

recycled content &reused materials

– £300,000

= Z Net Waste - £182,000

Key strategies for minimising the cost of materials wasted at Asda Bridgend

Material Waste minimisation strategy adopted

Stone, bricks, blocks, concrete, tiles

On site crushing and reuse

Concrete lift well Prefabricated off site manufactured in sections

Steel frame Standardised, off site manufactured

Aluminium wall cladding Panellised modular construction

Aluminium roof sections Rolled on site to exact lengths required

Plasterboard Take-back schemeOff-cuts reused

TimberTerrazzo tiles

Off-cuts reused

• Design

- More influence in Design and Build

- Influenced reuse of demolition material on site

• Supply Chain

- Made subcontractors responsible for waste, with particular focus on

packaging

- Influenced specification to increase recycled content

• On Site

- 16,006 m3 of 6F2 grade fill produced from site won rock and reused

on site and 17,619 m3 of site won general fill produced from

excavation and reused on site

As so much recycled content was used, the project was

declared waste neutral

Asda Bridgend

• True cost of waste revealed allowing focussed actions

• Main sources of waste by value identified so focus can be given to

reduce largest opportunities

• Allows a percentage recycled content to be targeted, which is

becoming increasingly important to clients – BSF, Defence, Health

• Assists in the development of pan Carillion Site Waste Management

Plans in obtaining value of estimated waste and setting waste

reduction targets

• Allows cost reduction/increased profits through waste

minimisation/waste management

So what does this mean to us as a business? - Benefits of Good Waste Management

• Strategic approach to waste minimisation and management

• Use of Net Waste Tool on further projects

• Site Waste Management Plans – already on all CB sites

• Waste targets (tonnes / £100k)

• Influence Design in choice of materials, waste minimisation and

recycled content

• Influence Supply Chain in choice of materials, waste minimisation

and recycled content

What are we doing to make this happen across Carillion?

• This is a journey - but you have to get started

In Summary

• Needs commitment – can’t play at it

• Makes Business Sense – adds value to your bottomline• It won’t go away – legislation / society demanding it