AGI3709_SUSTAINABILITY_REPORT_2017 AW V3

RIGHT AT THE HEART OFS U S TA I N A B I L I T Y

IMAGE IS LOW RESCONTENTS Being at the heart of the construction industry means weMATERIALITY ................................................ X take our responsibility to theCLIMATE ............................................................... X environment and communities inWATER & NATURE .................................. X which we operate in very seriously.CIRCULAR ECONOMY ...................... XPEOPLE & COMMUNITIES ............ X FRANÇOIS PÉTRYSeptember 2017 CHIEF EXECUTIVE OFFICERWe would welcome your comments,suggestions and thoughts on this report For Aggregate Industries, sustainability is not only During the year, we also welcomed the new UKby emailing [email protected] about the continued success of our company, but Operational Excellence Team, which is tasked with also our impact on the environment and on our helping to further drive down energy consumption people and the communities in which we operate. and improve efficiencies across the business. As part of LafargeHolcim, it is our desire to make a positive contribution to the built environment now In addition, we are pleased to report positive progress and for future generations. on the Bardon Hill Extension project, which ensures this key site remains operational for another 40 years. As a major supplier of building materials it is always As part of this, we recently launched the first phase at the forefront of our minds how best to prevent of the Bardon Community Fund, which will provide a and mitigate any impact our products have on total of £400,000 to support local community people, the environment and the economy. This is initiatives over the next ten years. why we produce an annual Sustainability Report to externally share progress on our specific targets, For us, health and safety is our overarching Group which are fundamental to achieving and maintaining value. Therefore, it is at the heart of everything that our overall goals. we do. Nothing is more important to us than the wellbeing of our people, which is why 2016 saw the After two years in the newly merged LafargeHolcim launch of our three year health and safety Group, we have now successfully introduced cement Improvement Plan, which we are now delivering manufacturing into the UK product portfolio, this throughout the business. includes securing essential third party certification to ISO 14001, 9001 & OHSAS 18001 standards. Looking ahead, we will continue to look for innovative ways for Aggregate Industries to contribute to Another milestone to highlight is the completion of solving some of the UK’s sustainability challenges, as Lytag’s first full year as part of the business, and we believe we are equipped to effect a real change. achieving BES 6001 Excellent certification. As a product that prides itself on sustainable innovation, François Pétry we are excited to see its full potential realised within Chief Executive Officer the UK market in the decades to come.

SUSTAINABILITY AT IMAGE IS 03THE HEART OF OUR LOW RESBUSINESS I am particularly proud of a number of2015 was a year of achievements this year:change. Not only forme personally as I • A record low Total Injury Frequency Rate of 2.43joined AggregateIndustries mid-2015, Whilst this is encouraging, more can be done andbut for Aggregate we remain focussed on our vision for zero harm.Industries too, asHolcim completed • A record number of training hours delivered, threea successful mergerwith Lafarge, creating times as many as when we first set our target in 2012.LafargeHolcim; aglobal leader in • A record number of Graduates and Apprenticesbuilding materials. recruited, a 46% increase since 2012. DONNA HUNT • Our Contracting business achieved Gold Standard HEAD OF SUSTAINABILITY Investors in People accreditation. • A record amount of £130,000 worth of time, materials and funds donated to local communities and good causes. • Our transport emissions are at a record low of 3.02kgCO2e/tonne, a total reduction of 35% since 2012. • Our continuous development of new sustainable products and solutions, with an industry-leading number of Environmental Product Declarations published and an extensive library of over 230 products enabled for Building Information Modelling. • Awards for Environmental Innovation and Outstanding Contribution from the Rail Freight Group. • Industry recognition in the Mineral Products Association (MPA) Biodiversity and Restoration Awards for a number of projects at our Greystone, Newbold, Ripon and Callow Rock quarries.

Aggregate Industries are Climate Water & Circular People &investing in a sustainable Nature Economy Communitiesfuture for our business.Using the triple bottom line CLIMATE WATER & CIRCULAR PEOPLE &of Economic, Environment NATURE ECONOMY COMMUNITY& Social to help us manage Aliquaspe nam,our activities we have sum sa is exerfer Aliquaspe nam, Aliquaspe nam, Aliquaspe nam,adopted these focus areas: atiorem sequate sum sa is exerfer sum sa is exerfer sum sa is exerfer vellor repere atiorem sequate atiorem sequate atiorem sequate eum, consed vellor repere vellor repere vellor repere untin rerunti aut eum, consed eum, consed eum, consed officto mos cus, untin rerunti aut untin rerunti aut untin rerunti aut qui dolorem qui officto mos cus, officto mos cus, officto mos cus, temodit qui dolorem qui qui dolorem qui qui dolorem qui temodit temodit temodit

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MATERIALITYWe currently base the decisions about what is material In the UK until our panel is convened we will continue The LafargeHolcim stakeholders material issuesto us on the process carried out by our parent company to focus on health & safety, greenhouse gas emissions were spread across environment, social andLafargeHolcim. and energy management (including logistics) as we governance issues as well as the companies value believe these are of the highest importance to our chain, from supplier management to sustainableIt is our intention to establish our own external stakeholders. Recently we have not achieved the products. The LafargeHolcim external stakeholdersstakeholder panel to provide guidance on what performance targets we set ourselves and with the via the panel concluded that due to the size of theis material to the UK, but having reviewed the addition of the energy intensive cement business company and the impacts, a leadership positionLafargeHolcim materiality matrix, we believe that there we know that we must demonstrate that we are was required on most material issues to drive betterwill only be small differences between their global making improvements. performance in these areas.perspective and our UK focus.

07 Greenhouse gas emissions Health and safety and energy managementHIGH Water Business ethics management and compliance Renewable Corporate governanceSOCIETAL CONCERN energy sourcing Sustainable products and innovation Biodiversity and Local community engagment and MEDIUM ecosystems management management of local community impacts Materials, recycling and circular economy Air emissions management Waste management Human rights management Risk management Pricing integrity and Local economic value creation anti-trust compliance Supply chain management Employee training and development Employee diversity and inclusion Customer relations and customer satisfactionLOW Transport and logistics Employee relations and engagment Employee work-life balance and well-being LOW MEDIUM HIGH IMPORTANCE TO LAFARGEHOLCIM

2016 PERFORMANCE DATA 569 staff with 34 4,143 over 25 years employees service 197,590 graduates and apprentices recruited 300 training hours delivered operations in the UK, Channel Islands and 83% male 17% female Northern Europe 2,0ove0r 0 health surveillance checks carried out 2.70 5.40 1.90 million m3 million tonnes million tonnes READY-MIXED ASPHALT PRECAST CONCRETE CONCRETE AGGREGATES29.90 million tonnes

09 process emissions 6.18 0 environmental, kgCO2e/tonne 2015 14.31 health or safety prosecutions 6.31 2016 5.55 2014 2013 9 1,048 sites with a Wildlife Trust’s educational visits Biodiversity Benchmark 3.9 water 3.9 consumption 2013 2015 (million m3) 4.7 9.7 2014 2016 all transport emissions kgCO2e/tonne 2,721 3.13 3.07 3.02 3.57 hours of labour donated 2013 2014 2015 2016 £74,489 Lorry movements reduced by... worth of materials donated 97% 415,000 £43,286of all waste recycled ...by using rail and ship transport in financial donations waste to landfill (tonnes) 7,522 1,388 3,925 2013 2014 2,082 2016 2015



11 CLIMATECLIMATE At Aggregate Industries we’ll continue our mission to cut our net CO2 emissions of all products. With a strong portfolio of sustainable products and services, we will help our customers avoid CO2 emissions released from buildings and infrastructure over the whole life-cycle.

OUR TARGET COMPLETIONTARGETS DECEMBER 2020We’ve defined specific targets LOW CARBON MATERIALSwhich are fundamental toachieving and maintaining CO2 emissions per tonne of cementsustainable climate goals. and Global Warming Potential 20% below regional averageBy 2030 LafargeHolcim want to produce 40% less net CO2 pertonne of cement than they did in 1990. For our cement plants RESOURCE EFFICIENTthis represents a 20% reduction in CO2 per tonne, using 2016 asthe reference year. This will be achieved by optimising the use of Longer service life, less maintenance, lesssecondary materials in blended cements, replacing carbon based material to achieve the same performance.fuels and energy efficiency improvements. LIFECYCLE TRANSPARENCYThe addition of the cement operations to the UK business hasseen our energy profile and mix change significantly compared to Provide stakeholders with an unrivaledearly 2015. Our cement plants are utilising an increasing amount service for BIM objects, carbon calculationsof waste-derived fuels and sustainable biomass to provide up and Environmental Product Declarationsto 48% of the plants’ energy demand – making our plants net (EPD).importers of waste and avoiding waste going to landfill. UNDERSTANDING BUILDINGWe have seen a 5% decrease in electricity consumption ENERGY EFFICIENCYcompared to 2015. However, our use of natural gas and liquidfuels has seen our overall process emissions intensity increase Improving understanding of energy efficiencythis year. We continue to purchase 99% of our electricity from in buildings (heating and cooling) to providerenewable sources, as well as generating our own electricity better indoor comfort.from renewables.

FOCUS AREAS 13 CLIMATEOPERATIONAL EMBODIEDTARGETS CARBONWe are committed to tackling climate change. We carry out carbon calculations on our productsOur climate targets reflect that commitment. We to allow customers to make informed decisionshave set ourselves two distinct targets as a step about the products they require.towards our 2030 goals: We measure the embodied carbon in our• 5 % p.a. operational energy intensity products through the use of third party verified improvement measured in kWh for all fuel Environmental Product Declarations (EPD). and electricity sources utilised (18.5% total improvement by December 2020) During 2017 we will publish more EPD for our products and will continue to provide our• 5% p.a. operational GHG intensity improvement customers with carbon calculations for (18.5% total improvement by December 2020) our products. TRANSPORT IMPACTS The delivery of our products also produces carbon emissions from the fuel used by vehicles. We’re committed to removing as much transport from the road as possible through the use of rail and water transport. Our aim is to maximise the distribution of aggregates by rail and water, but due to the nature of asphalt and ready- mixed concrete (RMX) road transport is the only real option.

In 2015, Aggregate During 2016, we collaborated with our concrete BASF are proud to be working withIndustries were the admixture supplier BASF Construction Chemicals Aggregate Industries using our Life Cyclefirst UK heavyweight to produce EPD for three of our proprietary ready Analyser tool. By working together,construction company mix concrete products. The BASF LCA tool is unique we have released the first BS EN 15804to publish a suite of in that it allows two concrete mix designs to be compliant EPD for ready-mixedEnvironmental Product analysed simultaneously in order to allow immediate concrete. Over the next few years thereDeclarations (EPD) comparisons of Global Warming Potential (CO2) and will be an increasing focus on the LCAfor our paving and 23 other parameters. and EPD of construction products;construction products. this will create a step change in Aggregate Industries have chosen to limit the scope materials specification and lead to moreIn 2016 we added a new EPD for the of our EPD to the assessment of the production stage sustainable products and solutionslaunch of the innovative Eco Countryside only (cradle-to-gate) and they are based on single for the wider construction market.Cycle Kerb. production units. We believe that this gives a true picture of the environmental impacts of a product Dr Geoff Mackey, Corporate AffairsEPD are third party verified Life Cycle Assessments on the elements we control. However, we are able to and Sustainability Director, BASF.(LCA) of products carried out in accordance with produce EPD for the full life cycle of a structure orEuropean Standard BS EN 15804:2012 Sustainability building, which is based on information supplied byof construction works – Environmental product the client rather than generic data.declarations – Core rules for the product categoryof construction products. In addition to having EPD available, we also offer a CO2e calculation service for customers using Product Carbon Footprinting tools (PCF) developed for us by the Carbon Trust. This allows our Sales and Technical staff to calculate the embodied carbon within a matter of hours of receiving requests from customers. The PCF uses the mix design, transportation of raw materials, plant operations and delivery to site to calculate the CO2e of a concrete mix. As these calculations are based on each mix design the calculations are bespoke per project and not based on generic information. By using this calculation facility prior to a project starting, customers can be confident they are ordering a concrete mix that has the lowest possible embodied CO2e.

DEMAND SIDE 15 CLIMATERESPONSE (DSR)We are always looking for ways to reduce ourenergy consumption and costs, and at the sametime reduce our emissions. When we found outthat Demand Side Response (DSR) could help usdo all these things – we became very interested. Winners: Industrial Project of the YearWHAT WE DID The first equipment we included in the scheme was our Embracing this innovative technology has helped us bitumen tanks which heat bitumen for making asphalt. achieve 3.6MW per year of flexible demand for the grid.We teamed up with energy specialists Open We found that turning off our bitumen tank heaters In terms of emissions that is almost 50,000 tonnesEnergi to identify our activities that fit the in response to short-term fluctuations in supply and of CO2 avoided over five years – equivalent to savingdynamic frequency response management demand doesn’t affect the quality of our product at all. 390,000 flights between Paris and London!profile. In other words, activities where we Well-maintained and insulated bitumen tanks can becan safely automate the switching on or switched off for over an hour with only a one-degree And thanks to Open Energi’s metering and monitoringoff of power – without affecting quality change in temperature. The tanks’ temperature bands equipment, we have new data which can help us– in order to help balance the national act as control parameters; if the temperature is within identify where the bitumen tanks may be inefficient orelectricity grid. those bands switching can take place automatically. not running correctly, which in turn we can use to make adjustments to achieve even more energy savings. The average duration of a switch is less than five minutes. Essentially the intervention is invisible and has We’re really pleased to be part of the DSR scheme with no impact on our operations, yet we are providing a National Grid and Open Energi and we want to help valuable service to National Grid 24 hours a day, 365 get the message about how well it works. Through our days a year. partnership with the Living Grid network, we share our experience of this emerging technology and encourage Equipment was initially fitted to 133 of our bitumen others to take up the opportunity too. Together we tanks at 42 asphalt plants around the country. It has can create a positive change in the energy system that proved so successful that we’ve extended it to 11 quarry extends beyond our own organisation. pumps at two quarries, and we are also reviewing all our sites, operations and equipment to identify further activities to bring into the scheme.

MAJOR IMPROVEMENTS SITEBATCHMADE TO A556 BOWDON TECHNOLOGYTO KNUTSFORD The composite CBGM design was able to encapsulateCollaborative relationships are at the heart of our hazardous planings. We were able to use surplus stocksuccess, especially when it comes to innovative from our Sheffield PFI contract. Since road emissionssolutions. present a core part of our carbon footprint, we wanted to ensure the environmental benefit of recycledOur early involvement in the A556 project allowed materials wasn’t undone by the transport logistics.us to plan both an environmentally friendly materials Our solution was to move the recycled planings usingsolution, whilst keeping logistical carbon emissions as vehicles returning to our Millom quarry in Cumbria.low as possible. Establishing a mobile batching plant using SiteBatch Technologies® allowed us to save an additional 20% ofThe perfect example of this is our work WHAT WE DID CO2e emissions.improving a 4.5 mile stretch of the A556 byde-trunking the old A556 and constructing The idea was a composite paving solution, an IMAGE ISa new dual carriageway section of road approach which offered two key advantages. LOW RESbetween north Cheshire and south Combining Cement Bound Granular Mixture (CBGM)Manchester. sub-base with a flexible asphalt pavement would provide both the reduced depth necessary toBefore the formal tender process began we were deal with a challenging subgrade, alongside theinvited by Highways England to join competitors opportunity to recycle materials.and designers for a unique industry workshop withthe shared goal of uncovering the optimum scheme We used a Vogele Super 1803-3i paver, with tier-solution that would provide significant efficiencies to 4 diesel with AdBlue® to minimise harmful dieselHighways England. emissions with no compromise on performance or quality of the finished pavement. In addition, theThis early involvement allowed us to fine tune paver worked at 108db which reduced the noisethose ideas when we eventually won the contract, impact on the local community.developing an innovative, environmentally friendlyconcept using a circular economic model.

HOT-ON-HOT 17 CLIMATEPAVING WHAT WE DIDHighways England Pavement Efficiency BuildSub-Group identified pavement construction joints We worked with Kier Highways to identify the ‘Hot-as the leading cause of pavement failure. Working on-Hot’ inline paving process. This solution reducesalongside Kier Highways, we collectively developed joints in pavement construction and improvesan innovative solution to assist Highways England in pavement performance and longevity, ultimatelyachieving £1.2bn of efficiency savings to support delivering value for money to the taxpayer.its Road Investment Strategy. Inline paving is the process whereby both asphalt layers are applied directly on top of one another hot-on-hot; without using a bond coat, in a single pass. The idea is that the material layers (Binder and Surface course) will interlock and form a tighter bond because they are being laid directly over one another whilst hot. The process is robust and enables changes to be made to pavement design thicknesses, while maintaining and enhancing its performance. Although specialist training was required for Supervisors and Operatives relating directly to the new process and equipment. We used core resources, coupled with revised scheme-specific method statements, training and pre-shift induction processes. RESULTS During the trial stage, we collected positive data: • A stronger interlocking bond between hot Binder and Surface course layers • Material savings (reduced surface course volumes and bond coat) • A joint-free homogeneous pavement, resistant to water ingress damage • Higher shift output • M ore than 700 tonnes of pavement was laid in just over four hours!

SUSTAINABLE WHAT WE'RESOLUTIONS DOINGIt is important for Aggregate Industries to support As part of her Engineering Doctorate thesis,construction techniques and systems that use concrete researcher Eirini Mantesi is undertaking a majoras their main structural medium, while providing evaluation of the energy consumption of Twigaexceptional thermal and air-tightness properties for new Lodge in Surrey, newly built using Insulatedhouse-building projects. Concrete Formwork (ICF) and constructed to high levels of thermal efficiency and air-tightness.Houses constructed using these methods give the occupants high levels of thermal comfort together This will form part of a unique research projectwith low energy bills, attractive benefits for all home owners but particularly important for low income providing invaluable data to allow comparisons tooccupants and social housing clients. be evaluated between software predicted performance and “as-built” performance and is the first research project of this type in the UK. Twiga Lodge is designed to achieve near to Passivhaus levels, it is a two-storey, three-bedroom home, with a floor area of approximately 250m2. The research data provides an invaluable and accessible snapshot of how a building actually performs over an extended period of time and the comparisons made with simulation software can then be made and analysed accordingly. The monitoring study is designed to provide information on performance of ICF construction in the UK climatic context. The monitoring period is planned to last for 18 months, to investigate the thermal performance of ICF under all climatic conditions representative of a UK year, including at least two summers.

MORE EFFICIENT 19 CLIMATETRANSPORTATION WHAT WE DIDWe wanted to reduce our CO2e emissions,which meant driving down the number of lorries In order to achieve this goal we moved as much ofdelivering materials without limiting growth. our logistics from road to rail and sea as we could. Over the year we transported over 10 million tonnes of3 quarries with on site rail sidings aggregates by ship and a further 4 million by rail.3 aggregates import wharfs4 rail linked aggregates depots Along with our major aggregate import terminals in4 wharf side concrete plants Kent, Essex and Liverpool and their associated concrete6 rail linked asphalt plants plants we also have two smaller delivery wharfs with14 rail linked concrete plants concrete plants both using aggregates delivered by ship from our Glensanda quarry, these are our new plants at Leith Docks serving the Edinburgh market and our newest plant at Barrow in Furness in Cumbria. The plant at Barrow has been built specifically to supply the BAE Systems project to upgrade the submarine construction yard located in the heart of Barrow. This large project includes an extension to the main production building (269m long x 51m wide x 59m high) along with engineering workshops and a range of other buildings and facilities. The concrete for the project will be supplied from our new wharf side plant which uses aggregates delivered by ship directly to the wharf. The location of the plant has allowed us to reduce our impact on the environment by eliminating road deliveries of aggregates, the location of the plant also means concrete deliveries do not use the local road network alleviating congestion on the roads in Barrow town centre. RESULTS Several of our plants achieved production milestones in 2016. Our plants at Heathrow and Sheffield - both less than three years old - produced over 1 million tonnes of asphalt, while our London Concrete plants produced over 1.25 million m3 of concrete – all of them using aggregates delivered by ship and rail.



21 WAWTAETREARN&DNNATATUURREEWATER& NATURE As water scarcity and flooding are increasingly important issues for society generally, our concern for water goes beyond our operational boundaries. We are committed to showing a positive impact, this can be by using current and former quarries as flood relief areas or by reducing our water consumption.

OURTARGETSWe’ve defined specific targetswhich are fundamental to achievingand maintaining the sustainabilityof water in our business. TARGET COMPLETION DECEMBER 2020 5% P.A. WATER INTENSITY REDUCTION 100% ACTIVE QUARRIES WITH BIRS IN PLACE (BIODIVERSITY INFORMATION RECORDING SYSTEM) YEAR ON YEAR IMPROVEMENT (REDUCTION) IN NUMBER OF VALIDATED COMPLAINTS

FOCUS AREAS 23 WATER & NATUREWATER PLACES FORMANAGEMENT NATURETo help us reduce our water consumption we are We will implement biodiversity management plansguided by the LafargeHolcim Water Directive.This sets rules and regulations for managing for all extraction sites and work to protect, restorewater in a responsible manner, it also sets theframework for appropriate actions to manage and enhance habitats and species on and aroundrisks and make a positive contribution to waterresources and ecosystems. The reduction in water our sites. The restoration plans for extraction sitesconsumption will be achieved by increased useof recycled or grey water, the promotion of water will take into account the needs and expectationsefficient practices and responsible managementof water discharges. of our stakeholders. At smaller production sites (for example concrete and asphalt sites) we will create a “place for nature” to create habitats to BIODIVERSITY encourage wildlife, examples include bird boxes, INDICATOR REPORTING 9bug hotels or small areas of planting. SYSTEM (BIRS) We have nine extraction sites certified to The Wildlife Trusts Our positive contribution to ecosystems is Biodiversity Benchmark, we driven by the LafargeHolcim Biodiversity will increase the number of Indicator Reporting System (BIRS), this was sites certified and continue developed over 3 years with a panel of experts from the International Union for the SITES to work with partners on Conservation of Nature (IUCN). CERTIFIED Living Landscape projects in the South Mendips in The BIRS methodology requires annual surveys of site habitats that generates a numerical Somerset and the Charnwood biodiversity score per site. Over time we expect each site score to increase, while extraction Forest in Leicestershire. is taking place scores may be reduced before increasing as restoration takes place to create an enhanced landscape.

The focus of ABSTRACTED WATER M3 MAINS (POTABLE) WATERactivities in 2016 hasbeen targeted on 2015 2016 2015 +2% 2016meter installation 8,210,031 628,413 638,187and telemetry 2,499,924 +70%development.We improved our data collection and interpretationwith phases one and two of the water meteringproject. The system and data reporting have beenfurther developed and tested during 2016. Staff atall sites have been given access to the water meteringplatform. We envisage the system will go live forformal reporting in 2017.Phase two of the water metering project wascompleted during 2016, with an additional 20 quarrysites having been metered for abstraction, processwater used and discharges. The project seesreal-time data being collated centrally andanalysed and reported throughout the businessvia a single point.2016 saw significant increases in Aggregate Industries’water consumption. This is a resultof the addition of the two cement plants andtheir associated quarries, improvements to waterrecords at quarries as a result of the meteringproject and our new Lytag and Charcon factories.

WATER, A VITAL 25 WATER & NATURERESOURCEAggregate Industries are committed to the sustainableuse of water in all its operations. Some are morechallenging than others, however they all managed toprotect water and biodiversity. Glensanda quarry showsthe effort we will go through to achieve this.Understanding how water flows through We have used this research to further enhance our This research at Glensanda illustrates Aggregateour sites is an important element of understanding of the sites 6 distinct water catchments. Industries commitment to managing our futuremanaging a modern quarry and can be Each has unique values and uses, including supplying investment and ensuring our activities are in linecomplex. In 2016, Aggregate Industries the sites accommodation blocks and offices with with our industry wide commitments. This is toconducted in-depth research into the water clean safe potable water, for utilisation in production prioritise our use of the most sustainable waterbalance of our quarry at Glensanda. processes, the creation of biodiversity rich habitats all sources and protect the water environment by while maintaining an ecological system that supports managing water being used and passing throughLocated on the Morvern peninsula in Scotland, the existing wildlife. The top catchment area our sites.Glensanda covers over 9 square kilometres and is 600 meters above sea level and there is a networkreceives an annual average rainfall of 7.5mm per of water channels and bodies that have to beday (2.73 metres per year). maintained to support the existing wildlife.This rain water is critical not only to the biodiversity In the future having this understanding of the nature,and people living and working on the site, but also to quality and flows of the site water resources and whatour overall operation. Rain water is the only source of impacts our activities are having on it will continuewater available for use on the site and ensuring our to have a direct impact on how we manage the wateruse of it is sustainable over time is of vital importance. resources at this important site. Coupled with ourTo aid this we have installed water monitoring extensive metering project it allows us to activelyequipment at eight key locations, which has been protect and enhance water quality and thechallenging as the equipment has to withstand biodiversity value of the sites water features bothextreme weather and the occasional deer with a liking now and for the future.for cables, which means all installation have to bereinforced to withstand both of these forces of nature.

CHARNWOOD FOREST,LEICESTERSHIREBiodiversity is an important aspect of our whole business.Aggregate Industries is a member of LafargeHolcim Group and biodiversity is a keycomponent of the Group 2030 sustainable development ambitions. We take ourresponsibilities very seriously where our operations can impact on local areas, especiallywhere habitats are fragmented or where infrastructure have impacted habitats.A great example of our care and attention in this area is the Charnwood Forest in Leicestershire. TheCharnwood Forest is split by the M1 motorway. It’s also where we have extensive land holdings at Bardon,a working quarry producing 3 million tonnes of aggregates a year and where we are currently spending£80 million on a major extension of the quarry.WHAT WE'RE RESULTSDOING We are linking a substantial landholdingBardon Hill Site of Special Scientific Interest via wildlife corridors to enable wildlife(SSSI) comprises a remnant of the once extensive to flourish in an area containing severalCharnwood Forest heaths, including both sites of special scientific interest (SSSI)heathland and woodland, possessing an interesting including Bardon Hill. We are creatinginvertebrate fauna. Our SSSI is lowland heathland a healthy environment, rich in geology,and is a priority habitat in Leicestershire. wildlife and wild placesSince 2003 we have been managing the site withthe Leicestershire and Rutland Willdlife Trust andThe Conservation Volunteers. The managementworks involve grazing with rare breed sheep andcattle between March and September, then awinter programme of clearance of birch scrubwithin the heathland.

MILTON MATOR 27 WATER & NATURECOMMONAs well as large-scale initiatives, we workwith various local and national conservationgroups at a number of our sites. One suchexample is the Kingskerswell Natural HistorySociety who hold work parties at ourStoneycombe quarry in Devon.WHAT WE'RE RESULTSDOING The population of the Grizzled Skipper has beenThe area is threatened by scrub encroachment, monitored and the results are encouraging. Movingso we have joined together with the Society and forward we are liaising with Butterfly ConservationButterfly Conservation to create favourable in planning the restoration of an area of the quarryhabitats for the Grizzled Skipper by holding to limestone grassland which it is hoped willwork parties to clear scrub. become another grizzled skipper habitat. By tailoring our management of the site, we have also managed to create a diverse habitat that will support many other species of flora and fauna.



29 CIRCULAR ECONOMYCIRCULARECONOMY At Aggregate Industries, we take a whole life approach when considering our impacts and opportunities. In addition to considering the extraction, production and transport impacts of our products, we consider reusing and recycling products at end of use.

OUR OUR AMBITION IS TO SENDTARGETS ZERO WASTE TO LANDFILLThere are a number of ways in • Tracking metric: Year on year reductionwhich we will improve resource to hazardous and non-hazardous waste toefficiency through reuse, recovery landfill intensity (kg/tonne)and/or recycling of waste materialsin our own production processes. • Tracking metric: Year on year reduction to inert waste to landfill intensity (kg/tonne)We take a whole life approach when considering our impacts andopportunities, in addition to considering the extraction, production IMPROVED PERCENTAGE OFand transport impacts of our products, we consider in-use impacts RECYCLED MATERIALS USEDand the opportunities for reuse or recycling at the end of use. IN OUR PRODUCTSWe improve resource efficiency through reuse, recovery and/or • Tracking metric: total of 2.1 millionrecycling of waste materials in our own production processes. tonnes reclaimed material used by With this, we aim to minimise the generation of hazardous and December 2020other waste and only dispose of waste using responsible contractors.

FOCUS AREAS 31 CIRCULAR ECONOMYZERO WASTE FUEL FROMTO LANDFILL WASTEAt our manufacturing sites and offices we have At Aggregate Industries we are committed torestructured our collection and recycling facilities sustainable and environmentally sound methodsto better reflect the nature of wastes being of disposal for all our waste including the wastesgenerated from these sites. We are continuing we use as fuel. We are actively sourcing waste asto strive towards our target of zero waste to fuels from sources which have undergone effectivelandfill and we are working closely with our waste material recovery prior to sending this materialmanagement service providers to increase our to our cement sites, where it is used as fuel formaterial recovery and to identify the sources and cement production. These fuels consist of a widenature of our non recoverable waste materials. In range of materials from wood and domestic wastethis way we plan to reduce the volumes of non to sewage sludges and tyres. Europe producesrecyclable materials entering our waste stream. 350 million waste tyres each year, with only a limited market for their disposal. Working with CONSTRUCTION GeoCycle, we are committed to identifying more & DEMOLITION sustainable and carbon efficient fuels. WASTE We will take construction and demolition waste (CDW) from redundant buildings and infrastructure to produce a recycled aggregate that can be used to replace virgin aggregates. Our aim is to produce a material that can be used in the whole construction chain, not just as low grade fill material. At our asphalt plants we will take worn out roads and reuse the aggregates and bitumen to produce new roads, reducing the embodied carbon of the new road.

BARDON HILLWASTE MANAGEMENTAshley Farmer, one of our Higher Apprentices, wasresponsible for a project to improve Bardon Hillquarry’s waste management.The site had 75 individual general waste WHAT WE DID RESULTScontainers kept in 13 different locationson the site. Ashley Farmer managed the whole project 10% REDUCTION including developing toolbox talks andThe problems this created were: communicating the project to staff across the in site total non hazardous waste Bardon operation. generated and 100% of this material now• Unnecessary cost of waste containers and being recovered or recycled. frequent uncoordinated collections. The new system is much improved with clear collection points, fewer containers and where 30% REDUCTION• Prolonged visits of waste collection vehicles, needed larger containers. The waste system is and associated safety risks now supporting sites operations, reducing risk in container locations and saving us money.• Waste containers missed and left un-emptied 35% REDUCTION• Overflowing containers when the more in waste containers on site, replacements remote ones were not emptied are of the appropriate size and type.• Poor segregation of waste due to lack of CLEANER, SMARTER, business unit ownership CENTRALISED STORAGE BAYS with clear ownership and robust policing BETTER SIGNAGE to reduce mixed waste disposal

CEMENT KILNS 33 CICIRRCCUULLAARREECCOONNOOMMYYFIRED BY WASTE Whilst we would all like to see our waste resourcesThe use of waste to fuel cement kilns is not being recovered for direct reuse this is not currentlynew, but until 2016 Cookstown plant relied practical and burning of fuels derived from wasteon traditional fuels, since becoming part of has some distinct advantages over other methodsAggregate Industries that has now changed. of disposal. The high temperatures completely destroys the waste materials, which avoids theAfter signing an agreement with Northern Ireland’s These early trials used plastic waste derived from formation of dioxins and furans. It leaves no residueEnvironment Minister Mark. H. Durkan in 2015 old cars and domestic non recyclable waste, both that needs to be landfilled, as the ash reacts withour Cookstown Cement site has invested in the were previously sent to landfill. Other non fossil fuels other components to form the manufacturedinfrastructure to start utilising alternative fuels as will be trialled and if successful used in due course. product. Co-processing of wastes is an ideala replacement for traditional fossil fuels. Trials of The alternative fuels produce up to 60% less carbon solution to the waste problem that involves no risksalternative fuels started in 2016. They demonstrated emissions compared to coal. During an average year to the environment.that the concept was viable and it would allow we expect to save approximately 10,000 tonnes ofCookstown to reduce carbon emissions by burning carbon emissions at Cookstown plant and divert aless fossil fuel in the kiln. The fuel is used to heat the similar tonnage of waste away from landfill.limestone up to 1450°C to produce clinker, the maincomponent of cement.



35 PEOPLE & COMMUNITIES Our people and the communities in & which we operate are very important to us at Aggregate Industries. Therefore, we’re committed to ensuring that everything from health and safety and team development to business ethics and community engagement are communicated clearly.PEOPLECOMMUNITIES

OUR ZERO HARM TO PEOPLETARGETS TARGETS FOR 2017:Nothing is more important to usthan the health and wellbeing • Lost Time Injury Frequency Rateof our people, and 2016 saw the (LTIFR) 1.37 or lesslaunch of our new 3 year Healthand Safety Improvement Plan. • Total Injury Frequency Rate (TIFR) 2.93 or lessLacestibus nobit, ut litasped quid quis molorestiur, qui dis aut doluptinperibusapita verrovid maximo consequid magnam, sae venitas suntiur SOCIAL PROGRAMMESernatem voluptatur, volecum, odi sunt vent, ut ium cum is sitemreptatem et ratio cus rem eumquis essum, ut od que nus ero voluptiae 260,000 BENEFICIARIES FROMcore si aut volorum quam res porrovidis iscil ipsa dolorib ererovit eos OUR SOCIAL PROGRAMMESutam quosto earistis sincto evel incta volupta sita quate sum suntiaerepariaer feriaepro mi, con ne dolore pa is saerum quod qui conem.. Number of people benefiting from: • Labour hours volunteered during workingXerchil molupta tioruntio iscid et il molorror sum rem eum autvolorempore venda cumquae dolo eumquias es duciae con re serio. hoursNam facid qui comniatia et quis am int et et ut aut imusam quaturem • Donations of products or financees ex est is autem quod magnimpello occae pro ommolores nonsequuntesti umquam, nos dicid earchil igentor saperch icabor aut unt dit 20% GENDER DIVERSITYprovid quiatendebit idis quatem invera nessin pliquo evelis sum quatur, AT MANAGEMENT LEVELSquias rerum aut hitam

FOCUS AREAS 37 PEOPLE & COMMUNITIESHEALTH STAKEHOLDER DIVERSITY& SAFETY & COMMUNITY & INCLUSION ENGAGEMENTHealth and safety is LafargeHolcim’s overarching Aggregate Industries values diversity andvalue. Therefore, it is as the heart of everything Aggregate Industries recognises the value of promotes a workplace that is inclusive, fairthat both Aggregate Industries and Lafarge engaging with the communities in which we and which fosters respect for all employees.Cement do. operate. By 2020 our extraction sites and cement plants will have formal Stakeholder Engagement We promote equal opportunities in recruitment,Continual improvement in health and safety plans (SEP). Typically, a SEP is developed in employment, promotion, development,practices and process help us strive towards collaboration with local stakeholders which compensation and retention.achieving our goal of ‘zero harm’ and ensuring includes representatives from local government,a safe and healthy workplace. associations, schools, and local NGOs. These We treat employees at all times with dignity stakeholders normally also participate in our and respect - this includes direct andCARING Community Advisory Panel (CAPs) where contracted employees.ABOUT HEALTH community project ideas can be discussed as well as resolving any complaints about traffic, noise or BUSINESS ETHICSWe attach as much importance to health as we blasting or any other issues that have impacted & SUPPLY CHAINdo to safety, with a focus on controlling workplace the community.health risks, ensuring fitness to perform work tasks We have introduced the LafageHolcim Codesafely and promoting the health and wellbeing of NURTURING of Business Conduct that is provided to allour employees and contractors. TALENT employees. We have risk profiled all job functions within the company, depending onAs well as having forty five mental heath first Our focus remains on developing people the risk associated with a role either face toaiders throughout the business, we have an and their capabilities, including identifying our face training or e-learning is provided annually.Employee Assistance Programme dedicated to talent pipeline and succession planning.providing resources to help employees overcome All our suppliers were sent a copy of ourlife's many challenges Suppliers Code of Conduct and our terms and conditions have been updated to reflect these requirements.

HEALTH & SAFETY STAKEHOLDER DIVERSITY & COMMUNITY & INCLUSIONDuring 2016 LafargeHolcim launched a three year ENGAGEMENTHealth and Safety Improvement Plan (HSIP). The HSIP We will champion diversity and want to promotefocusses on five key aspects: We are involved in community liaison meetings, equality and diversity, we want to achieve a we hold open days for the general public, we visit minimum 30% gender diversity at all management• Leadership and accountability schools and we provide materials, resources and grades around our business by 2030.• Health and Safety Management System voluntary labour to benefit the communities in• People capability which we operate. To achieve this, now and over the next few years we• Effective execution are investing heavily in our business diversity and• Transport and Road Safety NURTURING inclusion programmes in order to ensure we have a TALENT more balanced workforce – with a particular focusThe Executive Committee of Aggregate Industries on attracting more women.developed an improvement plan using this process to Our talent management focus is learning andreduce the key health and safety risks in the business development, we want to enhance the skills of our Remaining a male-centred business is not sustainable;and improve safety performance across operations. people, offering them growth opportunities and if we are to plug the skills shortage then we can’t improving performance. afford to dismiss half of the working population, thereCARING ABOUT is a lot of work to be done if we are to achieve thisHEALTH BUSINESS ETHICS but the wheels of change are in motion. Our research & SUPPLY CHAIN shows that more female students are taking up tradeDuring 2017 we will be implementing the apprenticeships and we are seeing more femaleLafargeHolcim health plan which looks at the We were the first company to be certified to BES 6001 graduates every year.wellbeing of the individual from both a physical and (Responsible Sourcing of Construction Products) andmental perspective. This approach is already well have certified new sites and businesses as they joined We have actively tried to increase the female intake fordeveloped in Aggregate Industries with all employees Aggregate Industries, the latest being Lytag which is our graduate and higher apprenticeships schemes overhaving regular health checks. certified as Excellent. recent years. As a result 25% of all graduates recruited in 2015 and 2016 were female and 33% of higherNum is site volorit abore maxim esto bla conet odiate BES 6001 requires us to know our supply chains, so apprentices employed were female.natatur mod eiur minctem olorundi volorecta eos over the last five years we have built up a picture ofmolupta temporum est, et quas ut miliqui doluptat our suppliers to ensure that we know who is supplying Recent research conducted by LafargeHolcim, showspedis utem ea audita ilitis eatis utem qui commolo us and where raw materials are sourced from. In that women are slowly closing the gender gap whenribus. collaboration with the Sustainability Supply Chain it comes to studying the trade-centred topics of School we carried out an industry first by mapping science and engineering. In 2008, this figure stoodOptat eos min nonserc hillaut qui deliquos nobit the full supply chain for the ubiquitous high visibility at 32% and rose to 40% in 2015. It also found havingaut fugiatem quia nem dolupta sperit, odio. Ita dent vests worn throughout the construction industry. a more diverse and inclusive workforce can helpquam nos debiscimi, officatem rempore senditatquae achieve a higher return on equity and better financialconsequi aligenimust, expliam qui in performance. This is because it can strengthen an organization’s intellectual capacity, providing the conditions to innovate and adapt in a fast-changing environment.

39 PEOPLE & COMMUNITIESA healthy workforce means less absences, reducedincidents, improved production, staff morale, employeeengagement and overall business performance.OCCUPATIONAL FUND RAISING FORHEALTH MEDICAL CANCER RESEARCHSCREENING Raising money to help fund cancer research is a topicAll employees receive mandatory health medicals close to the heart of the business. To raise the profilewhen they join the company. This is then repeated of the issue, in conjunction with Volvo Constructionevery two years for higher risk colleagues, including Equipment we have a Pink Paver to remind people ofsite and nightshift workers, and every three years the issue. The machine has been so well received wefor all other employees. In 2016 three colleagues have commissioned a second pink paver.were diagnosed with prostate cancer, following theircompany medical. All have had surgery and are now Increasing numbers of offices and sites take part inon the road to recovery. the Macmillan \"World Biggest Coffee Morning\" while individual initiatives include a sponsored sky dive and MENTAL HEALTH pink hair dying. Louise Clerk from the Contracting Accounts Office is training to run the Brighton We acknowledge that mental health is just as Marathon in aid of breast cancer. (shown below next important as physical health. We run workshops to our first Pink Paver). and mental health first aid courses in partnership with the charity Mind. In 2016 300 employees attended awareness workshops and we now have 45 trained mental health first aiders in the business. These individuals can now provide help on a first aid basis and offer guidance to their colleagues about where to go for support. Just like our traditional safety first aiders, posters are placed at sites so our colleagues know who their site Mental Health First Aiders are and how to reach them for support.

BUSINESS ETHICS 70% OF OUR ANNUAL& SUPPLY CHAIN TURNOVER IS SPENT WITH OUR SUPPLY CHAINWe care about the environment and communities around our sites and we expect OUR SUPPLY CHAIN PROFILE:that our suppliers products and services do the same. We collaborate with oursuppliers to share best practice and develop their policies and procedures so they • Based within 20 miles of an AI sitemeet our requirements. In late 2016 all suppliers were issued with our very first • Have less than 50 full timesupplier code of conduct which is based on the standards enshrined in the UnitedNations Global Compact. employees (FTE’s) • Predominantly maleMODERN SLAVERY SUPPLIER • Aged 31-40 ASSESSMENT • 97% of high risk suppliers wereTo meet the requirements of the Modern SlaveryAct 2015 (MSA) we will publish our transparency Since 2012 to help us understand our supply chain assessed through Avettastatement by June 2017. for natural stone, we have partnered with The • 122 key suppliers attended Supply Chain Forestry Trust (TFT) Responsible Stone ProgrammeIn September 2016 we published an interim to audit suppliers based outside the EU. This enables Sustainability School eventsstatement on our website to enable stakeholders to us to source natural stone that is produced bysee progress. We formed a company wide working operators who respect the environment and ensures SUPPLIERgroup who have worked together to train, educate they meet all their legal requirements including for DEVELOPMENTand support our colleagues and our supply chain in pay and conditions, this in turn helps us meet thetackling modern slavery. requirements of the MSA. As a founding partner of the Supply Chain Sustainability School and a Gold member, we use the We use the Avetta (previously PICS) online tool to school to help us engage with our supply chain, as assess our high risk suppliers against safety, health, they represent a common approach to addressing equal opportunities and environmental requirements sustainability within construction, facilities set by the MPA and ourselves. The tool allows sites management, homes and infrastructure sector to review supplier performance to ensure that covering topics from circular economy to modern standards are maintained and if standards begin to slavery and apprenticeships. slip for us to provide support. In June we partnered with Morgan Sindall and Highways England at an Infrastructure Supplier Day in Derby to present and facilitate discussions on sustainable materials. In December Brian Downes, Major Projects Director, presented alongside Peel Ports in Manchester on sustainable logistics for the Liverpool 2 project. In 2016 all members of the Procurement team engaged with the School either through e-learning, supplier days or workshops.

CONCRETE 41 PEOPLE & COMMUNITIESRUGBY RESULTS2016 marked the launchof our new programme The Concrete Rugby programme has taken place inConcrete Rugby in 13 schools this year alone, with over 1,000 childrenpartnership with Leicester benefiting. Three schools took part in the ConcreteTigers RFC. The programme Rugby Festival at Bardon Hill Sports Club. Aggregateis aimed at introducing Industries staff have had the opportunity to takechildren to the challenge, part in the sessions, bringing the expertise that theydiscipline and fun of rugby, have gained through their work to the life coachingas well as teaching them sessions - and learning a bit of rugby too!valuable life skills.WHAT WE DIDWe’re proud to have a long history with LeicesterTigers, and Concrete Rugby is a great way to engagewith the community, investing in people and helpingthem realise their full potential. From social mediaawareness and healthy eating to road and quarrysafety, the programme covers a wide range of lifecoaching skills. Most importantly, it is the joy ofdiscovering a new sport and competing with friends.

DEVELOPINGAND SUPPORTINGOUR PEOPLEWe are driven to invest in our people, ensuring they are Adam Wheeler and Isabel Keetontrained to the highest standard of safety and to theirvery best ability. This includes recruiting and developingyoung talent to fill skills gaps in our business andencourage a more sustainable future for us.WHAT WE'RE THE HIGHEST RESULTSDOING QUALITY TRAINING Our coaching has been so successful in SalesOur Learning and Development team develop and When it comes to training our people, we look at that during 2016 we started to roll this outreview courses to improve and change their offering the best option for our employees – not the across the Operational divisions.over the years. We have collaborated with people best price! The Government have introduced an In 2016, 15 Engineering apprentices completedfrom different divisions to tailor training courses and Apprenticeship Levy of 0.5% of payroll costs to be their apprenticeship.apprenticeships that are relevant to our industry. paid by any company with a payroll of over £3 Million to encourage organisations to train their IN 2016 WE RECRUITED:APPRENTICESHIPS workforce. We attended a number of ApprenticeshipAND COACHING Levy events in 2016 to understand what the levy 3 Business & Finance apprentices would mean to our business and how we could use it 21 Engineering apprenticesOur high standard apprenticeship scheme attracts to invest in the development of our employees. 5 Higher apprenticesand retains the very best young people. Along the 5 Graduate traineesway we are still learning, diversifying and improving As a business, we don’t want to compromise 9 Industrial Placement Studentsthe schemes that we offer. on quality and therefore we will not just be offering who will work in the business apprenticeships to reclaim the levy paid, instead for a year before returning to we will ensure that there is a requirement for the university. apprentices recruited and there is support for them in the business. We currently offer nearly all our graduates and apprentices continued employment and expect this to continue in the future.

43 PEOPLE & COMMUNITIESWe joined the Aggregate Industries IMAGE ISHigher Apprenticeship Scheme as we LOW RESare both practical learners and felt thatgaining hands-on experience in a I joined Aggregate Industries in 1989 as a I have thoroughly enjoyed the 28 years I havecompany that has operations in over 70 temporary operative working at a concrete block had at Aggregate Industries and the diversity thecountries means that the opportunities manufacturing facility; in 1990 I was transferred business has to offer makes every day a challengingfor progression are endless. to work at a quarry and became full-time. I learnt but exciting one. The teams I have worked with all aspects of drilling and blasting and shortly throughout my time at the company have alwaysOur apprenticeship has proved to be challenging controlled all blasting activities. Aggregate been extremely close knit, meaning that support isbut fulfilling, the reason for this is that we get to Industries has provided me with countless always there when I need it.experience a little bit of everything and this has opportunities to develop and has supported meallowed us to have a better understanding of what since joining the business to become Operations Aggregate Industries has provided me with a job forcareer path we want to follow. Manager of the super quarry, Torr, which life and has supported my development from the produces in excess of 5 million tonnes per annum. very start, with training ranging from soft skills toWe are now training to be Quantity Surveyors gaining certifications and diplomas in managementand are both heavily involved in measuring and My main responsibilities as Operations Manager which were all sponsored by Aggregate Industries,managing our own zones. We have also both had are to ensure the safety of everyone on site, that proving the fact that the company are an investor inthe opportunity to embark on placements in different we operate to the highest of standards in all their people.areas of the business including; Asphalt, Technical departments, we deliver to customer expectations,and the Aggregates division, these placements have strive for innovation whilst safe guarding for Scott Ford,allowed us to gain a good understanding of the the future generations and obviously delivering Operations Managerbusiness and how diverse it really is. maximum returns.Aggregate Industries offers numerous opportunitiesfor development and is especially good when itcomes to developing apprentices. We both haveour own tailored training plan and this allows us to‘unearth our potential’ and drive our personal andprofessional development forward.At Aggregate Industries, everyone works togetherand we have both built fantastic relationships witha variety of people, and it is the focus on peoplethat Aggregate Industries has that makes our jobmore enjoyable and rewarding.Isabel Keeton and Adam WheelerHigher Apprentice scheme

PEOPLE & Christmas lunch for the COMMUNITIES Duntilland community Plymouth city centre vehicle safety demonstration Cauldon school calendars Uffculme school project before...

45 PEOPLE & COMMUNITIES The Queen's jubilee celebration, lighting the beacon on top of Bardon Hill...and after Defibrillator donation to Cauldon's community

2013 - 2016 PERFORMANCE DATAENERGY & CARBON WASTEGas usage (MWh) 2013 2014 2015 2016 Total waste to landfill - tonnes 2013 2014 2015 2016 Total waste recovered - tonnesElectricity usage (MWh) 217,067 281,295 256,695 287,366 Total waste recycled including 7,522 1,388 2,082 3925 159,659 156,022 158,653 316,051 inert waste recycled - tonnes 8,964 1,322 1,716 2008Liquid fuel - all grades (MWh) 606,616 579,652 587,117 558,005 Total waste produced - tonnes 124677 456580 125,838 104,832 104683 130610Waste derived fuels (MWh) - - - 638237 - - - 142,324 107,542 108,481 2016 14.31Solid fuels (MWh) 5.55 6.31 6.18 11.35 3.57 874,777Process Emissions kgCO2e/ 3.13 3.07 3.02 32,650tonne 17.88 431,347 8.68 9.38 9.2 RAW MATERIALS USE 596,075Transport Emissions kgCO2e/ 2013 2014 2015tonne Aggregates - million tonnes 15178 Cement - tonnes 10.06 10.59 11.43Total Emissions kgCO2e/tonne Pulverised Fly Ash (PFA) - 761,856 766,582 796,055 2016 tonnes 162,035 159,043 75,754WATER Ground Granulated Blast 29.90 Furnace Slag (GGBS) - tonnes 197,596 300,752 388,469 2.70 2013 2014 2015 2016 Recycled asphalt - tonnes 455,893 545,152 609,700 5.40 Packaging - tonnes 12,822 1.90Discharge - surface m3* 106,692,584 106,665,939 100,040,459 110,342,228 13,771 15783 0.20 0.80Discharge - sewer m3* 258,611 230,506 230,506 258,611Quarry dewatering m3 16,843,623 19,648,688 16,943,259 19,876,604Abstracted water m3 2,474,760 3,406,072 2,499,924 8,210,031Grey water m3 808,390 725,178 761,202 611,845 PRODUCTION FIGURES†(recycled process water) 2013 2014 2015Mains (potable) water m3 584,628 612,699 628,413 638,187 Aggregates - million tonnes 28.4 30.8 30.65Consumption - total m3 3,867,778 4,743,949 3,889,539 9,760,844 2.4 2.61 Ready-mixed concrete - 5.4 5.66*Based on maximum licensed discharge million m3 2.1 1.8 1.88 0.4 0.26 Asphalt - million tonnes 4.7 0.7 0.70 Precast - million tonnes 2 Secondary aggregates 0.9 (processing) - million tonnes Sales of recycled material - 0.5 million tonnes2013 - 2015: Aggregate Industries data †Cement production cannot be reported due to the Cement Market Order restrictions2016: Aggregate Industries & Lafarge Cement data

47HEALTH & SAFETY EMPLOYEES, RECRUITMENT & TRAININGFatalities (Employees, sub 2013 2014 2015 2016 2013 2014 2015 2016contractors and third partyworkers) 0 1 0 0 % of employees receiving a 96 94 93 96Total Injury Frequency Rate regular review(TIFR) 3.83 3.26 2.43 2.82 4042 4143Lost Time Injury Frequency 0.65 1.26 0.97 1.69 Full time equivalent employees 3,543 3,441(LTIFR) 12 14 (FTE) 10.43 10.31Lost Time Injuries (Employees 7 10 10and subcontractors) 7 5 11 Training hours per FTE Top and 10.39 10.6 25.04 25.19Lost Time Injuries Senior management 52.17 53.41(Third Party workers) 46.6 47.69 Training hours per FTE middle 25.32 26 188340 197590 management 457 541 21% 17% Training hours per FTE others 53.36 55.1 46% 47% 32% 36% Total hours of training per FTE 47.8 50.53 4 5 Total hours of training 169,380 173,886 31 29 - 9PEOPLE & COMMUNITIES Leavers - total FTE 814 560 2.5% 2.7% 75.5% 80.1% Leavers aged under 30 14% 20% 22.0% 17.2% - 83 % / 17% 2013 2014 2015 2016 Leavers aged 30 to 50 54% 53%Water complaints 1 0 4 3 Leavers aged over 50 32% 27% 0 0 0Visual complaints 3 2 11 14 Graduates recruited 09 3 1 1Transport complaints 6 4 3 9 Apprentices recruited 28 23 8 8 3Odour complaints 3 5 4 9 Industrial placements ( 1 year) - - 3 2 0 new for 2016Blasting complaints 17 2,076 1,898 1,048 38,393 83462 43286 Ethnic minority FTEDust complaints 11 9,529 57,275 74,489 1.80% 2.30%Noise complaints 2 1,035 814 2,721 White FTE 79.00% 82.20%Open days 2 Not disclosed FTE 19.20% 15.50%Number of visitors 1,614 Gender Split Male/Female - -Recorded cash donations (£) 76,436Value of materials donated (£) 32,473Number of hours labour 2,686volunteered to communityprojects2013 - 2015: Aggregate Industries data2016: Aggregate Industries & Lafarge Cement data

BES 6001VERIFICATIONSTATEMENTResponsible Sourcing has become an increasingly significant part of thestandards landscape in the construction industry. As a result, a number ofconstruction product manufacturers have achieved certification to the BES6001 standard for responsible sourcing. BES 6001 requires constructionproduct manufacturers to demonstrate levels of achievement against aseries of specific requirements. Within these requirements, some clausescontain compulsory requirements, with many also offering additionalcredits for achieving additional progress beyond the compulsory level.Depending upon the score achieved by the organisation, it is possibleto gain a Pass, Good, Very Good or Excellent rating. Higher rating levelsoften require that the environmental and social data communicated tostakeholders is externally verified.This is Responsible Solutions Ltd statement on BES 6001 environmentaland social activities (qualitative and quantitative) based on AggregateIndustries Ltd 2016 sustainability report.

49NATURE AND SCOPE RESPONSIBLE • T he information presented in the sustainabilityOF VERIFICATION SOURCING ISSUES report is materially accurate;Responsible Solutions was commissioned by The specific clauses of BES 6001 relevant to this • A reasonable level of assurance is given to theAggregate Industries to verify a number of verification are Greenhouse Gases (3.4.1); Resource greenhouse gas calculations meaning that theenvironmental and social issues which are Use (3.4.3); Waste (3.4.4); Water (3.4.5); Employment GHG assertion is:communicated to stakeholders through the & Skills (3.4.9) and Community (3.4.10). The majoritysustainability report. The scope of the data of the verification process focused on the metrics • M aterially correct and a fair representationverified included all Aggregate Industries sites communicated to stakeholders; however, part of the of the GHG data and information; andlisted on the main certificate, as well as the Lytag process examined existing policy as per theand Lafarge cement sites. requirements of the BES 6001 framework standard. • Is prepared in accordance with the requirements of the EU ETS.The scope of the verification focused on specific The exercise was conducted to ensure that theclauses in the BES 6001 V3.1 Framework Standard for information communicated to stakeholders was: • There was a process by which primary informationthe Responsible Sourcing of Construction Products. was collated (i.e. bills, invoices, meters) and used a) Materially accurate; for reporting purposes; primarily for clauses 3.4.1,Responsible Solutions has not been involved in the 3.4.4 and 3.4.5;preparation of the report in any circumstances. b) Supported by appropriate documentation and evidence. • C onstituent materials were able to demonstrateSTATEMENT ON environmental stewardship at source, primarily forRESPONSIBLE SOLUTIONS VERIFICATION STANDARD clause 3.4.3 with a significant percentage of theAND INDEPENDENCE supply chain having certification to ISO 14001; There is no specific verification standard forResponsible Solutions has been supporting clients BES 6001, although greenhouse gas emissions are • S tatements are materially accurate andin demonstrating their sustainability credentials for required to be calculated to the principles of ISO supported by a range of documents from withinover 10 years. Our team has, between them, over 120 14064-1. Many organisations often fall into a number of the management systems and from reports, minutes,years’ experience in supporting companies in a range carbon measurement schemes such as EU ETS, company publications and other sources; primarilyof services including; Environmental Management CRCEES and CCA; therefore, direct emissions data are for clauses 3.4.9 and 3.4.10.Systems (including ISO 14001 and BS 8555); often already verified as part of legal compliance to aResponsible Sourcing (including BES 6001); Corporate scheme. In such instances the existing verification can Ian NicholsonResponsibility Strategies; Performance reporting/ be accepted and other indirect energy streams verified 16 June 2017verification and other services. Responsible Solutions to meet the principles of ISO 14064-1. Managing Directoris completely independent from Aggregate Industries Responsible Solutions Ltdwithout any bias or conflict of interest. VERIFICATION OPINION Building One, 30 Mountsorrel Road, Mountsorrel, Leics. LE12 7ATThe verification exercise was conducted by Dr James Based on the information and data contained withinUpstill-Goddard who has experience of Responsible the sustainability report we are satisfied that itSourcing in both commercial and academic capacities. provides a fair and balanced representation ofDr Upstill-Goddard has supported a number of Aggregate Industries’ sustainability activities in 2016different product manufacturers to certification to with respect to the requirements for BES 6001 clausesBES 6001 since 2011, and has also been involved in as described above. This verification opinion relates tocollaborative research on the topic in this time. Aggregate Industries’ operations based on a representative sample set. Based on our work we conclude that:

Aggregate IndustriesBardon Hall, Copt Oak RoadMarkfield, Leicestershire LE67 9PJTel: +44(0) 1530 816600Fax: +44(0) 1530 816666Email: [email protected]© Aggregate Industries UK Ltd 2017. Registered address: Bardon Hall, Copt Oak Road, Markfield, Leicestershire LE67 9PJ. No: 00245717