Corporate responsibility report 2007/08 - Tata Steel

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Corporate responsibility report 2007/08 - Tata Steel

Corporate responsibility report 2007/08

Setting the pace

Creating value in steel


Corus Corporate Responsibility Report 2007/08

Contents

1 Corus at a glance

2 Our vision

4 Message from the Chief Executive

6 Our performance culture

8 What does sustainability mean for us?

12 • Sustainable construction solutions

14 • Sustainable transport solutions

16 • Sustainable packaging solutions

18 • Sustainable energy solutions

20 How do we care for our people?

21 • Health and safety

26 • Valuing our workforce

32 How are we protecting the environment

and responding to climate change?

33 • Protecting the environment

42 • Climate change

48 How do we support our communities?

49 • Communities

54 How do we safeguard our business?

55 • Business ethics

58 Progress against targets

60 Validation statement

61 Glossary

63 British Triathlon sponsorship

The Tata Steel Group is the world’s sixth

largest steel producer. With a combined

presence in nearly 50 countries, the Group,

which includes Corus and Tata Steel,

Tata Steel Thailand and NatSteel Asia,

has approximately 80,000 employees

across five continents with a crude steel

production capacity of over 27 million

tonnes. The Group’s main facilities were

historically concentrated around the

Indian city of Jamshedpur, where

Tata Steel operates a 5 million tonne

crude steel production plant and a variety

of finishing plants. The Group’s Indian

operations also include captive

iron ore and coking coal mines. With the

acquisition of Corus, the Group now has

steel production facilities in the UK and

the Netherlands, as well as in India and

South East Asia.

The Tata Steel Group believes that it is

well positioned to service a globalised

customer base, to enjoy economies of

scale in plant utilisation and research and

development, and to deliver its ambitious

vision with a motivated and highly skilled

workforce. The vision of the Group is to

be the world steel benchmark for value

creation and corporate citizenship.

Tata Steel Group

at a glance

One Group, two entities

Tata Steel Group

Tata Steel

Corus

Tata Steel

Thailand

NatSteel

Asia


Corus Corporate Responsibility Report 2007/08

Corus is Europe’s second largest steel

producer with annual revenues in 2007/08

of approximately £12bn and liquid steel

production of around 20 million tonnes

at steelmaking facilities in the UK and

the Netherlands.

Corus Group Plc was acquired by

Tata Steel UK Limited, a wholly-owned

subsidiary of Tata Steel Limited, on 2 April

2007. Tata Steel UK Limited continues to

trade under the name Corus, which is

used throughout this report rather than

Tata Steel UK Limited.

Corus comprises three Divisions: Strip

Products, Long Products and Distribution

& Building Systems, and has a global

network of sales offices and service

centres. At the end of March 2008,

Corus employed 41,900 people.

Corus is a leading supplier to many of

the most demanding markets around the

world including construction, automotive,

packaging, mechanical and electrical

engineering, metal goods, and oil &

gas. With innovation and continuous

improvement at the heart of its

performance culture, Corus aims to

create value by offering a differentiated

product range supported by unrivalled

customer service.

Further information is available at

www.corusgroup.com

This report covers Corus’ activities

during the period from 1 January 2007

to 31 March 2008, which is the financial

year end of Tata Steel UK Limited.

Corus

at a glance

The countries where Corus has a manufacturing

presence are shaded in red.

Key:

Corus manufacturing sites

Sites in USA, Turkey and Spain not shown.

1


The world steel benchmark

for value creation

and corporate citizenship.

Our vision

2


Corus Corporate Responsibility Report 2007/08

This is an

ambitious vision

which will be

delivered through

the commitment

and participation

of every employee

within the Group.

The Tata Steel Group vision is to be the

world steel benchmark for value creation

and corporate citizenship. This is an

ambitious vision which will be delivered

through the commitment and participation

of every employee within the Group.

The vision translates into a number

of ambitious five year goals which are

measurable and tangible.

A performance culture supports the

vision and goals, and this will be firmly

embedded across the Tata Steel Group,

and embraced by all employees.

Value creation

Value creation means becoming supplier

of choice, by offering premium products

and services, backed up with an

unrivalled service package. It also means

differentiating through innovation and

delivering leading edge solutions in

technology, processes and products.

Corporate citizenship

Corporate citizenship is about acting

with a sense of responsibility, integrity

and respect. It is about providing a safe

workplace, respecting the environment,

caring for communities and demonstrating

high ethical standards.

People

80,000 motivated employees are powerful

ambassadors for the Tata Steel Group,

and their involvement in delivering the

vision is key. The aim is to become

employer of choice and to build a

reputation which is globally respected

and admired.

Below: We have co-created a common vision

which builds on the legacy of both Tata Steel

and Corus. Pictured are the members of the

joint Tata Steel Group Executive Committee

(nb. some Committee members not shown).

3


Message from the

Chief Executive

Our vision, to be the world steel

benchmark for value creation and

corporate citizenship, translates

into a number of ambitious goals.

4


Corus Corporate Responsibility Report 2007/08

I have pleasure in presenting our latest

corporate responsibility report. Following

our acquisition by Tata Steel in 2007, we

have co-created a common vision, which

builds on the legacies of both Tata Steel

and Corus. Our ambition is to set the

world benchmark on value creation and

corporate citizenship.

The key elements of our corporate

citizenship aspirations are covered in this

report: the health, safety and wellbeing

of our workforce, protecting the

environment, upholding the highest

business ethics and making a positive

contribution to society.

In terms of health and safety, during

the 15 months since we last formally

reported, we have improved our lost time

injury frequency rate by around 30%.

Myself and my colleagues on the

Executive Committee continue to

conduct regular health and safety tours,

where we aim to create widespread

recognition of our standards and policies,

as well as taking the opportunity to meet

and engage with employees at all levels

across the Company.

It is deeply regrettable that despite

our efforts to create a safety first culture,

there were two fatal contractor accidents

on Corus sites in 2007. We continue

to strive for a safe work place and safety

remains our first priority. Our goal for

2012 is to achieve a lost time injury

frequency rate of 0.4 compared to the

current 1.8, which is a 25% year-onyear

reduction.

To assist in the achievement of our health

and safety targets we have developed

a new Corus health and safety 3-year

plan which was launched at a senior

management conference during February

2008. This covers the following key areas:

process safety, which is about preventing

serious incidents on high hazard facilities;

occupational safety, with a specific

emphasis on the prevention of fatal

accidents; and occupational health,

which is about preventing exposure

to health hazards and encouraging

a healthy lifestyle.

In terms of the environment, we recognise

that climate change is probably the biggest

single issue ever to confront our industry.

We are acutely aware that we in the steel

industry are perceived to be part of the

problem. In response to this challenge,

we are determined to be part of the

solution and to lead the way with best

practice. We have committed to a number

of projects and investments with the

overall aim of reducing our CO2 emissions

per tonne of liquid steel by at least 20%

by 2020 from where we were in 1990.

We will give priority to energy conservation

schemes, process improvements, and the

development of products which address

the threat of climate change. Our products

have inherent environmental advantages

as they are durable, adaptable, reusable

and recyclable. They are essential to

modern life and are part of the solution

to climate change. They are used, for

example, in affordable and energy-efficient

modular homes, as well as in lighter,

stronger and safer transport systems.

CO2 emissions in steel production can

be offset by reductions in emissions

through the life-cycle of steel products,

achieved through effective product

design and through recycling at end-oflife.

We will also continue to invest in

breakthrough technologies such as

ULCOS (Ultra-Low CO2 Steelmaking),

which is a steel industry research and

development project, aimed at

substantially reducing CO2 emissions

from the steelmaking process. In addition,

we are embarking on a major employee

involvement scheme, which will raise

awareness and encourage an energy

conscious workforce.

Our workforce is highly valued and we

continue to invest in nurturing talent and

enhancing skills, particularly technical

and leadership capabilities. We recognise

the importance of having a reputation

which is both respected and admired

and know that our people are our best

ambassadors. We are also determined to

win the global war for talent by focusing

our recruitment efforts and embarking on

a programme of global talent sourcing.

Our goal is to become an employer of

choice, and we will measure our success

by achieving a position in the top quartile

of all industries.

As you would expect, we work to high

ethical standards and abide by a clear

code of conduct which has integrity at

its core. The Tata Steel Group is further

enhancing its code of conduct which

we expect to roll-out during 2008/09.

We aim to make a significant contribution

to society in a variety of ways, through

the employment we provide both directly

and indirectly; as a result of the inherent

social and environmental advantages

of the products we supply; and also in

our positive interaction with the local

communities around our sites.

In summary, you will see from this

report that we have made progress

against the targets we set out last year.

Looking ahead, we have developed

some challenging new targets in order to

contribute to achieving the vision of the

Tata Steel Group. Together with Corus’

Board and Executive Committee as well

as our loyal and dedicated workforce,

I am confident that we will achieve our

targets and continue to further improve

our performance.

Philippe Varin

5


Our

performance

culture

Corporate responsibility

is integral to the way we

do business.

6


Corus Corporate Responsibility Report 2007/08

Performance culture

Corporate responsibility is integral to the

way we do business and our performance

culture underpins everything we do. It is

about the way we work together towards

achieving our business goals. There are

four pillars to our performance culture:

Aspirational targets are where we

challenge perceived boundaries, set

ambitious targets for value-added

growth, aim to delight our customers by

maximising value together and strive

to set the benchmark for world-class

performance.

Safety and social responsibility comprise

attributes based on respect and integrity.

We aim to provide a safe workplace,

prevent injuries and harm, respect our

environment, care for our communities

and demonstrate high ethical standards.

Continuous improvement is our uniform

management system which drives

business performance through teamwork.

It covers tools and training and core

principles include motivating and

coaching individuals, developing talent

and empowering employees.

Openness and transparency is about

a spirit of trust and cooperation which

runs throughout the Group, at all levels.

We adopt an approach that encourages

debate, respects decisions and each

other, allows clear and honest

communication, and inspires pride,

pace and passion among us all.

Accountability

Our Executive Committee, chaired by

the Chief Executive, sets health, safety,

social, ethical and environmental policies

and standards for Corus. It also monitors

their implementation. Each of our

Divisions is responsible for implementing

Corus’ health, safety, social, ethical and

environmental policies. They have the

responsibility of putting systems in

place that identify, assess, monitor and

control hazards and minimise all relevant

risks. Further review of our business

safeguards is carried out by our Board

Audit Committee.

The Corus Board Health, Safety &

Environment Committee provides

overall governance, and its members

are drawn from the directors of Corus.

This Committee reviews operational

performance, anticipates potential future

issues and provides support in setting

direction and considering strategic

options for improvement. Group Centre,

Joint Committees and Group Lead Roles

ensure commonality of approach in the

two entities, Corus and Tata Steel, with

a view to achieving common objectives.

In the end, no matter how effective our

systems may be, individual accountability

is critical if we are to achieve the very

high standards we set ourselves. It is

a key priority within the Company to

develop a positive attitude to health,

safety and the environment among all our

employees. We achieve this through our

recruitment policies, by ensuring that all

our employees receive appropriate levels

of training and by fostering a culture

where responsibilities are delegated to

the point in the organisation at which they

can be implemented most effectively.

Management systems

We have established management

systems to cover the quality, health,

safety and environmental aspects of

our operations. These systems allow

us to manage our operations effectively.

Our systems are largely certified in

accordance with international quality,

environmental and, increasingly, health

and safety, management standards.

Management and measurement

We manage our corporate responsibility

performance against clear and objective

criteria. We set targets for improvement

and then monitor, review and report

against these targets and other key

performance indicators.

Development of these indicators has

been informed by our policies, our

commercial, social and environmental

objectives, risk identification and

assessment, emerging best practice

and internal/external consultation.

An integrated approach

We believe that the integration of

environmental, social and economic

factors within our business processes

adds to the sustainability of our

operations. We aim to provide products

and services that contribute positively

to society and improve the quality of life

for our employees and the communities

in which we operate.

7


We aim to balance the needs of

our stakeholders by incorporating

the principles of sustainability into

all aspects of our business.

What does

sustainability

mean for us?

8


Corus Corporate Responsibility Report 2007/08

We work closely

with our

customers and

suppliers to

develop products

that are better for

consumers and

the environment.

Stakeholder engagement

As a major international business, we

maintain active dialogues with our main

stakeholders – customers and suppliers,

employees, trades unions, academic

institutions, local communities and the

general public. We engage with each

of these in a variety of ways, many

examples of which can be found

throughout this report.

Making a positive contribution to society

We make a significant contribution to

society in a variety of ways – through

the employment we provide; as a result

of the inherent social and environmental

advantages of the products we supply;

and in our positive interaction with the

communities around our sites.

Lighter, stronger, durable, reusable

and recyclable products

The intrinsic advantages of steel equip it

for a wide range of applications. Our

products are durable, adaptable, reusable

and recyclable. They are essential to

modern life and are part of the solution to

climate change – for example, they are

used in affordable and energy-efficient

modular homes, as well as in lighter,

stronger and safer transport systems.

Through our research and development

activities, we are continuing to develop

products which give additional social

and environmental benefits to our

customers and society as a whole.

The steel in use today will be reused and

recycled many times in the future.

More than 40% of the world’s production

of “new” steel is, in fact, made from

recycled steel without any loss of quality.

Steel is 100% recyclable.

Resource efficiency

We are committed to conserving all raw

materials, particularly those which are

non-renewable, such as iron ore, coal and

oil. Our processes have been refined over

many years to ensure that we optimise

the consumption of materials within them.

This makes good business sense as well

as being environmentally responsible.

At our integrated steelworks, we have

implemented and optimised systems

such as briquetting to enable us to

recirculate within our own processes any

residue materials that contain valuable

components such as iron and carbon.

We contribute to the wider goal of

sustainable consumption in a number

of ways, by utilising secondary materials

arising in other sectors of industry within

our processes, and by providing our

by-products and other secondary

materials arising in our processes

for use in other sectors.

Right: Our integrated steelworks at Teesside.

Opposite: Our structural sections were

used in the new stand at the Oval cricket

ground, London.

9


Corus Corporate Responsibility Report 2007/08

Sustainability

By using recovered fuel oil as a chemical

reductant in our blast furnace at Teesside

Cast Products we have achieved a

substantial reduction in our annual

consumption of coke, with an associated

CO2 saving equivalent to more than

25,000 tonnes per annum.

Thanks to improvements over recent years

in raw material selection and process

control, our by-products meet tight quality

control requirements that enable them

to be used as raw materials in sectors

such as concrete and chemicals.

Non-renewable primary raw materials

are thereby displaced and conserved.

For example, granulated slag from

our blast furnaces is used as a clinker

substitute in the concrete sector,

reducing the extraction of virgin raw

materials such as shales and limestone

and reducing CO2 emissions at the

same time. Similarly, steelmaking slags

are used in well-established civil

engineering and agricultural applications,

ferrous chloride solution is used in water

treatment, and tar and benzene are used

within the chemicals sector. The established

uses of these and other materials are

summarised in Table 1.

Our total consumption of primary raw

materials is summarised in Table 2.

Table 1 By-product applications

By-product

Granulated BF slag

Air-cooled BF, EAF & BOS slag

Tar/benzene/toluene/xylene

Ammonium sulphate/sulphuric acid

Iron oxide

Ferrous chloride solution

Zinc and tin dross

Application

Concrete industry

Civil engineering and agricultural fertiliser industries

Chemical industry

Agricultural fertiliser industry

Electronics, cement industry and paint industry

Water treatment, effluent and dye industries

Non-ferrous metal recovery industries

We believe that our

responsibility for

the environment

goes beyond

manufacturing.

10


Corus Corporate Responsibility Report 2007/08

Table 2 Resource use

Million tonnes/year

2007

BF route steel production 19*

EAF route steel production 1*

Iron ore 27

Coal 12

Primary aluminium production 0.2

Alumina 0.4

* liquid steel

Data is approximate and is shown only to illustrate

typical usage

Responsible procurement

Interest in responsible procurement grew

during 2007 and Corus positioned itself

at the forefront of a number of multistakeholder

initiatives aimed at defining

what responsible procurement means,

both in a steel industry and a

construction sector context. Our main

collaboration has centred around a

project being coordinated by the Eden

Project, which has brought together

representatives from throughout the

constructional steel supply chain to

define the key environmental and societal

impacts throughout the life-cycle of a

steel product and to explore objective

criteria for assessing the sustainability

of each supply chain. We have also

contributed, through the Construction

Products Association, to the work of the

UK Building Research Establishment

(BRE), which is aimed at developing a

sustainability standard on responsible

procurement of construction products.

As a large company we can use our size

to influence our suppliers, and we expect

them to have a high level of commitment

to the environment. To support this

principle we use an internet-based supplier

assessment tool to help us to screen

prospective suppliers and to encourage

and monitor the improvement of

existing suppliers.

Product stewardship

We believe that our responsibility for

managing environmental impact goes

beyond manufacturing. Downstream, the

characteristics of our products, and the

information that we provide to customers,

can have a profound effect on the

environmental performance of our

products during their in-use and

end-of-life phases.

Life-cycle assessment

Life-cycle inventory data is now available

for 88% of our products. Using life-cycle

assessment, we have also quantified the

whole life performance of a number of

our products and have published 40

environmental product declarations for

construction products in partnership with

our customers.

Corus RD&T has developed CLEAR, an

extensive whole life-cycle assessment tool

capable of analysing the environmental

impact of a building. The tool has proven

valuable, for example, we have used it to

optimise the building envelope design of

a large distribution facility and to evaluate

the effect of different roofing options on

the building’s overall energy

requirements.

End-of-life guidance

We have produced a series of guidance

documents to inform the market on best

practice for the end-of-life of buildings

clad with steel. The sustainability of a

building in terms of its material usage,

construction, occupation and end-of-life

is becoming an ever more important

consideration. This is driven by the

desire to provide a better quality of life

for people, whilst protecting the needs

of future generations.

Sustainable solutions

The sustainable solutions pages in this

report provide some examples of the

environmental and societal advantages

of our products in the construction,

transport, packaging and energy markets,

and how they can be used to best effect.

Left: Our granulated blast furnace slag is

used as a valuable secondary material in the

concrete industry.

Right: We are working with the Eden Project to

better understand the environmental and societal

impacts of the entire steel supply chain.

11


Corus Corporate Responsibility Report 2007/08

Sustainable

construction

solutions

Above: Corus is a member the UK Green

Building Council.

Why steel is good for construction

Steel buildings have been shown to be

highly adaptable. Steel’s strength provides

large open floor areas, giving flexibility of

use throughout the building. Steel buildings

are energy efficient, can be easily extended,

unbolted and reconnected, modified,

repaired, reused and recycled.

Corus has joined the UK Green Building

Council (UK GBC), whose mission is to

dramatically improve the sustainability

of the built environment.

Efficient use of natural resources

Steel’s inherent strength and high strengthto-weight

ratio are exploited in resource

efficient structures and buildings.

The flexibility of steel construction

systems make them ideal for renovating

and refurbishing existing buildings.

Modern steel roofing and cladding

systems can be used to bring old

buildings up to today’s high standards

of performance by re-cladding or

over-cladding the existing building.

Steel itself is 100% recyclable and

can be recycled again and again,

without degradation of its properties or

performance. The current recycling and

reuse rate for steel construction products

in the UK is 94%.

Energy efficiency

90% of the CO2 emitted from a building

comes from the use phase. Steel cladding

systems produce thermally efficient

building envelopes. Twin-skin (built-up)

and composite steel systems are durable,

and they achieve high levels of thermal

insulation and air-tightness. By providing

products and technical guidance to

designers and decision makers such as

architects, we contribute to reducing

emissions of greenhouse gases throughout

the supply chain.

CarbonNeutral building envelope

Confidex Sustain® offers a cradle-tocradle

carbon neutral building envelope.

This means that for every 1kg of CO2

emitted by the pre-finished steel, cladding,

Steel from the demolition of the Lackenby open

hearth furnace steel plant, Teesside, was

recycled into new steel and, amongst other

applications, was used in Heathrow Terminal 5.

12


Corus Corporate Responsibility Report 2007/08

fixings and insulation, Corus will offset

1kg in climate-friendly projects overseas

through The CarbonNeutral Company.

These have a social as well as

environmental benefit and will see

Corus investing in renewable energy

and energy efficiency projects.

Sainsbury’s and ProLogis are setting

new benchmarks in sustainable design

for their 57,500m 2 distribution centre

in Pineham, Northampton. The building

envelope for the distribution depot

features 57,000m 2 of pre-finished steel

sheet to the roof, and 14,000m 2 of

pre-finished steel sheet to the walls.

This equates to approximately 2,000

tonnes of unavoidable CO2 emissions.

To date, 14 Confidex Sustain® projects

have been completed totalling 254,810m 2

of pre-finished steel sheet, which equates

to 5,819 tonnes of CO2 offset.

Low-energy housing

All new homes in the UK will have to be

carbon-neutral by 2016. Corus Colorcoat

Urban is a new roofing product designed

for sustainable urban buildings. Colorcoat

Urban has been incorporated into the

BASF Creative Energy House, a sustainable

housing project focusing on energy

efficiency and affordability at The University

of Nottingham. The use of Colorcoat

Urban gives the house an ultra-low carbon

The social and environmental

advantages of our products are

demonstrated in all forms of

construction, from multi-storey

buildings to light steel-framed

affordable housing.

roof and the occupants can safely utilise

the collected rain water. The Colorcoat

Urban roof facilitates effortless and

aesthetic integration of photovoltaic,

solar thermal, passive solar heat

collection and green roofs.

Construction site benefits

Steel construction generates very

little waste. Any steel waste generated

during off-site manufacture, or on-site,

is recycled.

Steel construction is dry, dust-free,

relatively quiet and requires relatively

few deliveries to site. Steel construction

products are manufactured off-site under

factory-controlled conditions that ensure

high quality. Factory working is safer,

faster and more efficient than site

working, which reduces site construction

times. As a result, steel construction

minimises the impact on communities

neighbouring construction sites.

Sustainable communities

Working with Aspire Defence, Corus Living

Solutions is constructing 155 junior

ranks single-living accommodation

units for Defence Estates at army

camps in Salisbury and Aldershot in the

UK. The technical and environmental

performance of the modular housing has

helped Aspire Defence to achieve a

BREEAM rating of excellent. The modules

are designed to minimise process waste.

We are leading ManuBuild, a EUR45m

(£33m) European research project to

develop advanced industrial construction

techniques that allow occupants to

re-configure and adapt their living

space through the life-cycle of the

building. More information is available

at www.manubuild.net

Below: Colorcoat Urban TM has been

incorporated into the BASF Creative

Energy House.

Below left: ManuBuild prototype at the

FutureBuild 2008 Exhibition.

13


Corus Corporate Responsibility Report 2007/08

Sustainable

transport

solutions

Our products help

our customers

build safer, fuelefficient

and more

environmentally

friendly cars; and

provide significant

benefits for railway

infrastructure.

Below: We are helping car manufacturers

to meet the 95% recyclability requirement

for end-of-life vehicles by 2015.

(Photograph courtesy of European Metal Recycling)

Below right: Corus Rail is developing

technologies to reduce noise caused

by rail transport.

Automotive

Stronger, safer, more competitive

By combining our know-how in automotive

engineering and materials science, we

have become a significant contributor to

the current thinking regarding modern

vehicle body structures. We are helping

to engineer strong and stable platforms

within which both passive and active safety

devices such as front-end crash structures,

air bags, knee bolsters and anti-submarining

seats function effectively.

We developed Forming to Crash to

optimise the crash behaviour of cars built

from our Advanced High Strength Steels.

Using Forming to Crash means that

the additional strength induced into

steel body structural panels during

metal-forming operations can be used

directly in the car’s functional design to

reduce weight, whilst still maintaining the

desired levels of crash performance.

Safer roads

We have been a vehicle-restraint

manufacturer for over 40 years, producing

and testing the safety fences and bridge

parapets that have become a familiar

sight on the UK’s major road network.

Corus Tubes’ range of Protect 365

highway bridge parapet systems offer

robust solutions for elevated roadways,

where re-direction of vehicles is

absolutely essential for keeping them

and their occupants on the bridge

and away from the motorway, railway

or other infrastructure below.

The Protect 365 product family

complements our existing award winning

Vetex safety fence system, which

reduces installation time and in turn

reduces the exposure of road workers

to the hazards of moving traffic.

Recyclability

Steel is the world’s most recyclable

engineering material, which is an

advantage to car makers. By using more

steel they can help meet the recycling

challenge posed by the EU End-of-Life

Vehicles Directive. When it comes to car

components, building sustainability

into a design involves finding innovative

ways to use easy-to-recycle metals

for parts, rather than plastics. A clutch

pedal engineering study we carried

out demonstrated that it is possible to

maintain component performance and

cost while improving recyclability.

Vehicle emissions challenge

There is a direct link between vehicle

weight and CO2 emissions. Corus

Advanced High Strength Steels (AHSS)

are a key material in the arsenal to reduce

vehicle weight and the average car

is already 60kg lighter than it would

have been had AHSS not been used.

The Corus VA/VE (Value Analysis/Value

Engineering) tool is a proven method

for evaluating and optimising the gauges,

grades and coatings of vehicle body and

chassis components in order to reduce

the weight and costs of prototype and

production vehicles. As AHSS use increases

14


Corus Corporate Responsibility Report 2007/08

and these weight savings approach 100kg,

this will equate to a 1 tonne CO2 saving

over the life of each car.

Corus Special Strip has commenced

a collaborative project with a car

manufacturer to develop high strength,

low cost steel plates that can withstand

aggressive atmospheres for use in fuel

cells. Fuel cells are like batteries, though

they do not require recharging and

provide energy in the form of electricity

and heat. As fuel cells rely on chemistry,

and not combustion, their CO2 emissions

are very low.

Use of technology

Our research and development activities

continue to generate new ways of

responding to the challenges the automotive

marketplace poses. For example, whilst

there is little doubt that steel will remain

the material of choice for main vehicle

body structures, our researchers have

been responding to industry interest in

finding ways to join steel to aluminium.

For specific applications, such as the

bonnet and roof, this offers potential

advantages beyond straightforward weight

reduction (such as optimising weight

distribution to improve ride and handling)

that are of interest to designers.

Where manufacturers need to rapidly bring

a new design into full production, we are

offering advanced tools, technologies and

services like In-Form to reduce risk

and wastage. In-Form is an innovative

computer aided engineering simulation

technique which is selectively offered to

customers. It is used to reduce the

number of practical iterations traditionally

needed in fine tuning blank and tooling

parameters at production start-up. Use of

this technique can significantly reduce

press shop set-up lead times, in turn

reducing material and energy wastage

and saving start-up costs.

Rail

Reducing noise impact

Corus Rail is a partner in SILENCE,

a European research project to develop

world-leading technologies for the efficient

control of noise caused by road and rail

transport. The patented Silent Track

system has been successfully developed

to provide significant reductions in

pass-by noise of up to 4dB(A).

Improving railway infrastructure

More than 40 million people pass through

King’s Cross station in London each year,

and the Department of Transport and

Network Rail are investing more than

£400m to transform it into a world-class

transport hub. Corus Railway Infrastructure

Services has won contracts to design

key aspects of this prestigious station

enhancement scheme, including the glass

roof that will incorporate photovoltaic

technology to harness sunlight and

convert it to electricity.

A team of our automotive experts conducting a

Value Analysis/Value Engineering session with

customers at our Product Application Centre,

Corus RD&T, IJmuiden.

15


Corus Corporate Responsibility Report 2007/08

Sustainable

packaging

solutions

Packaging lightweighting

Advances in high strength steels and

manufacturing technologies allow our

customers to produce increasingly lighter

steel packaging solutions, which require

less raw material and energy to produce,

thereby reducing their carbon-footprint.

The weight of a 33cl beverage can is 40%

less than it was 30 years ago and the

average 425ml food can is 35% lighter

than 20 years ago.

in an integrated waste management

system without separate collection

programmes.

A new Packaging Decree came into

force in the Netherlands in 2006 in

order to address extended producer

responsibility. The packaging industry

now has to compensate local authorities

for the costs of collecting and recycling

consumer packaging.

Packaging recycling in the Netherlands

In the Netherlands, steel packaging

recycling targets for 2007 were met with

more than 85% of all steel packaging

being recycled. Over the last few decades

the Dutch national association SKB

(Stichting Kringloop Blik) developed a

successful route for collection of metal

packaging scrap. For steel, the route

is based on very cost effective separation

by magnetic extraction. This has resulted

In addition, a packaging Ecotax was

introduced and became effective from

January 2008. It is linked to the embodied

CO2 emissions in the various packaging

materials. The Ecotax and the costs of

extended producer responsibility have

been combined in one levy on all

packaging materials.

Steel packaging has a relatively low levy

thanks to its high recycling rate.

16


Corus Corporate Responsibility Report 2007/08

Our products

are fully recyclable

and are highly

recycled.

Packaging recycling in the UK

Corus Steel Packaging Recycling (CSPR) is

responsible for managing our compliance

with packaging recycling regulations in the

UK, and has become the UK’s centre of

excellence for steel packaging recycling.

Corus is the UK’s largest issuer of steel

Packaging Recovery Notes (PRNs) and is

central to the success of steel packaging

recycling in the UK. In 2007, the business

recycling rate for steel was 69%, an

increase of 12% over 2006. We have also

surpassed the 2007 UK steel packaging

recycling target, achieving over 56%

against a target of 53%. Steel is therefore

well placed to meet or exceed the EU

metals target of 50% recycling by 2008.

CSPR recognises the importance of

recycling in the carbon economy, and

is committed to increasing the already

high recycling rate for steel in the UK.

By investing PRN funds in local authority

collection systems, waste management

companies and private can collectors,

we increased our steel can recycling

in 2007 by 15,000 tonnes (compared to

2006) to over 108,000 tonnes across the

UK. Infrastructure projects included the

provision of can balers, can flatteners and

sorters, can banks and conveying

systems. The priority for CSPR in 2008

and beyond is the collection of packaging

steels from centralised waste treatment

systems in the UK, which could yield over

150,000 tonnes of additional material

over the next five years.

CSPR has continued its active role in

education. In 2007/08 we undertook

25 schools visits to spread the recycling

message and www.scrib.org, our

recycling education website, is proving

both a popular and practical resource

for teachers and students alike.

Below: We have been central to the success of

steel packaging recycling in the UK.

Below left: Nicola Bennett, our Sustainability

Projects manager at CSPR, delivering a recycling

workshop

Opposite: More than 85% of all steel packaging

was recycled in the Netherlands in 2007.

17


Corus Corporate Responsibility Report 2007/08

Sustainable

energy

solutions

Electrical steels

Our electrical steels are supplied into

various markets where they are used

to generate, transmit or facilitate the use

of electrical power. The advantage of

electrical steels is that their application

reduces CO2 emissions by reducing

energy losses. Increasingly, electrical

steels are being incorporated into

renewable energy technologies, and

we are working with our customers

to develop more energy efficient

transformers and electrical steel grades

for traction motors of hybrid vehicles

and wave power generators.

Wind

Our steel plate is used by the world’s

leading wind turbine manufacturers for

many demanding applications, including

onshore and offshore wind towers and

their foundations. For example, our steel

was used in the manufacture of 80m high

towers for the Capricorn Ridge wind farm

project in the USA. With 65 turbines, the

wind farm produces enough electricity

to power 65,000 households. We also

continue to play a leading role in helping

to shape the future requirements of

the renewables industry through our

membership of the British Wind

Energy Association.

Wave

“Pelamis” is an innovative technology

generating electricity from wave power.

Our steel plate is used to fabricate the

wave energy device which will form the

world’s first wave farm off the coast of

northern Portugal. Each machine is

capable of producing 750kW of power.

Full commercialisation would typically

produce 22.5MW, sufficient to supply

electricity to 15,000 households.

Below: Our electrical steels contribute to

reducing energy losses throughout the electrical

supply infrastructure.

Below right: “Pelamis” is an innovative

renewable energy technology generating

electricity from wave power.

Opposite: Our specialist aluminium roofing

business, Kalzip, has developed AluPlusSolar.

18


Corus Corporate Responsibility Report 2007/08

Steel is making a

vital contribution

to delivering the

energy mix of

the future.

Photovoltaics

Corus’ specialist aluminium roofing

business, Kalzip, has developed

AluPlusSolar, an integrated roofing

sheet with a flexible thin film laminate

containing a highly efficient solar energy

technology known as triple junction

amorphous silicon photovoltaic.

AluPlusSolar projects contribute

1,500MWh to Europe’s energy needs.

More than 1.4 million m 2 of Kalzip roofing

has been installed on 780 school projects

since the millennium. A number of UK

schools are providing a blueprint for

sustainability by saving energy and even

selling it back to the National Grid

through the specification of AluPlusSolar

roofing system.

For example, at Sandbrook Community

Primary School, Rochdale, the 200m 2

assembly hall roof features an 8.7kW

AluPlusSolar PV system. It captures

solar energy to provide electricity as well

as heating water. A display panel in the

school’s entrance educates visitors

on the amount of electricity being

generated and CO2 savings.

Levenshulme High School, also

in Greater Manchester, features a 6.7kW

AluPlusSolar PV system that provides

around 4,500kWh of renewable

electricity per year. The roof of the

new leisure centre powers lighting

and electrical equipment.

19


How do we care

for our people?

We are proud of our international

workforce and their well-being is

a high priority. We are continuing

to improve our health and safety

performance and in 2007 our

employee lost time injury frequency

reduced by around 30%.

20


Corus Corporate Responsibility Report 2007/08

People:

Health and safety

Policy statement

We believe that all our activities can

be undertaken safely and we will never

compromise safety.

We will conduct our business in a way that

ensures the health and well-being of our

employees, contractors and any person

affected by our activities.

We know that continuous improvement

of our health and safety performance is

essential for a successful company.

Everyone in Corus has responsibility for

their own and others’ health and safety, but

overall accountability lies with management.

We encourage a health and safety

culture in Corus.

Policy principles

The principles which demonstrate how we implement our policy are:

1 Leadership

Lead by example

People at all levels in Corus have responsibility

for their own health and safety and should

set an example for others. Management

is accountable for health and safety, and

managers will demonstrate leadership of

health and safety through personal example.

2 Hazards, risks and control measures

It’s worth not taking the risk

We will identify the hazards and risk associated

with our activities, starting with our major

risks. We will put in place appropriate

control measures and challenge them

in the context of change, so that we aim

for continuous improvement.

3 Health and well-being

Working for a healthy future

We will promote and improve the health and

well-being of all Corus employees.

4 Competence and behaviour

Understanding is the key to safe

behaviour

We will ensure that all our employees are

trained so that they are professionally skilled

and qualified for their jobs and thereby

can contribute to an improved health and

safety performance. We will select contractors

who can demonstrate competence and

effectiveness.

5 Incident analysis and prevention

It could have been avoided...

try telling the kids that

We will ensure work-related incidents and

near misses are reported, investigated

and analysed to prevent recurrence.

Our investigations will focus on root causes

and recommendations will be shared and

implemented across the company.

6 Sharing and learning

I wish I’d said something…

I feel so responsible

Everyone in Corus is responsible for sharing

good practice as well as learning from near

misses. Sharing experiences with others can

help prevent incidents. We all have a duty

to intervene.

7 Contractors and joint ventures

A good relationship is based on trust

Our health and safety standards apply

equally to contractors and Corus employees.

We believe our joint venture companies

should aspire to the Corus health and

safety standards.

8 Monitoring, audit and review

There’s always room for improvement

We will establish systems for tracking our

performance. We will regularly conduct

internal and external audits of our risk

control measures and management systems.

We will monitor behaviours at all levels to

ensure we create a successful health and

safety culture in Corus.

21


Corus Corporate Responsibility Report 2007/08

People:

Health and safety

Continued

Scope

Data are provided for the 12 months

ending March 2008, which is the financial

year end. To allow comparison against

previous years, data are also provided

for calendar year 2007.

Performance

Our primary key performance indicator

is LTIF. Our performance data, presented

in Figure 1, shows an improvement in

LTIF from 2.5 in 2006 to 1.8 in 2007/08.

We also judge our performance on a

combined employee and contractor LTIF.

This indicator, presented in Figure 2,

shows an improvement in combined LTIF

from 2.8 in 2006 to 2.0 in 2007/08.

We also report employee and contractor

recordable case frequency, which has

improved from 10.8 in 2006 to 8.0 in

2007/08 as presented in Figure 3. This is

a 26% reduction in recordable cases.

These improvements demonstrate that

we remain committed to improving health

and safety performance and, therefore,

reducing accidents and incidents.

Although we have improved our LTIF

and recordable case frequency rates,

during the 15 months since we last

publically reported, we had two contractor

fatalities at our sites (Figure 4). This is

still unacceptable. Health and safety

remains our first priority and measures

have been taken to share and learn from

these experiences in the form of a Corus

training programme; Be clear, Stay clear.

For the 12 months ending March 2008,

our sickness absence rate was 3.9%.

In the following pages we describe the

health and hygiene programmes and

targets which will help to reduce this.

Figure 1 Lost time injury frequency

Corus employees

16

12

8

4

Figure 4 Fatal accidents

Corus employees and contractors

12

8

4

0

00 01 02 03 04 05 06 07/08

For calendar year 2007 the LTIF for employees was 1.8.

Figure 2 Lost time injury frequency

Corus employees and contractors

4

2

Figure 3 Recordable case frequency

Corus employees and contractors

15

10

5

0

00 01 02 03 04 05 06 07/08*

■ Corus employees ■ Contractors

In our 2006 report we stated that we had had two fatalities,

however, after a thorough investigation into a fatal road traffic

accident that occurred at the end of 2006, the incident was

classified as a company fatality and is now recorded in our

statistics for 2006.

*This includes all fatalities in the 15 months up to end-March 2008.

0

05 06 07/08

For calendar year 2007 the combined LTIF was 2.0.

22

0

05 06

For calendar year 2007 the combined recordable case

frequency was 8.0.

07/08


Corus Corporate Responsibility Report 2007/08

Partners in safety –

IJmuiden

At the start of 2006, the 1,150 strong HTD

Maintenance Services team at Corus Strip

Products, IJmuiden, experienced 16 lost

timed injuries (LTIs). The management

team agreed that a new systematic

and sustainable approach to safety was

necessary if they were to improve, and this

came in the form of the Partners in Safety

programme, a partnership between the

workforce and management. A study of

the safety culture led to the development

of nine key performance indicators linked

to safety behaviour such as respect,

involvement, monitoring and dialogue.

Specially developed training programmes

ensured that all employees had the correct

competencies, and behavioural indicators

were measured and monitored throughout

the year. The results showed that at the

end of 2007, the number of LTIs had

reduced to two.

One safety initiative that has proven to be

extremely successful is the STOP and GO

card, which asks the user a series of simple

questions such as “Do I have the right PPE?”.

If the answer to any is no, then the employee

must stop work and seek corrective action.

The programme has seen a change in

culture in the maintenance team and the

partnership helps people to be proactive

towards safety.

Key developments in 2007/08

Health and safety strategic plan

To develop the final aspect of the

strategic health and safety plan, initiated

by the Executive Committee, we provided

guidance on good practices for the

development of cardinal rules and

organised felt leadership training for all

managers in steelmaking, and Voorkant,

which is the front side, or raw material

processing area, at Corus Strip Products,

IJmuiden.

Standards

In 2007 we developed and launched

four new mandatory health and safety

standards covering auditing, cranes and

lifting, working at height, and on-site

traffic facilities including forklift trucks.

The standard for on-site traffic includes

a uniform working procedure which,

along with the standard, is mandatory

and will help to establish common traffic

procedures across the Company and

minimise traffic incidents.

In 2007, in support of our health and

safety standards, we released six

occupational hygiene guidance notes

to help develop risk awareness and

management across the Company.

Right: Positive safety behaviour by the

HTD Maintenance Services team at Corus

Strip Products, IJmuiden.

23


Corus Corporate Responsibility Report 2007/08

People:

Health and safety

Continued

We will promote and improve

the health and well-being of

all Corus employees.

Setting safety benchmarks

for construction – Scunthorpe

In 2007, the safe completion of the

Starsigns projects was a key priority for

Corus Construction & Industrial.

The three major construction projects

at Scunthorpe, including the Rod Mill

enhancement, the Medium Section Mill

and the fifth continuous caster, meant

having a large number of contractors

onsite with a range of attitudes to safe

working. A safety management system

was developed, including a series of key

performance indicators and targets for

health and safety performance that were

unprecedentedly challenging for the

construction sector. Their achievement

has set a new benchmark within the

construction industry. The LTIF for the

completed projects was 0.9.

One of the major benefits after Starsigns has

been the demonstration that construction

projects can be undertaken without risk to

the health and safety of those involved, an

achievement that was highly commended

in this year’s CEO Awards.

Internal health and safety audits

In 2007, wave two of the Corus health

and safety standards audit programme was

undertaken, focusing on risk assessment

and safe working procedures. To expand

the audit programme further, each of our

Business Units were asked to select a

third health and safety standard to be

audited against.

Under the programme, the managing

directors of each of our Business Units

lead an audit of another Business Unit to

assess compliance, identify improvement

opportunities, and encourage the sharing

of good practices. Altogether 15 out of

18 audits were completed by the end of

March 2008 and the remaining three will

be scheduled for later in 2008.

Health and hygiene

Throughout 2007, a series of integrated

working groups comprising Executive

Committee members, business senior

management, and occupational health and

hygiene professionals and technicians

met to decide how the Company can

further strengthen its approach to

occupational health. These working

groups shared good practice, discussed

individual business developments

and helped to develop the basis for a

Company-wide strategy on improving

health within the workforce.

Below: Identifying improvement opportunities

through health and safety audits.

Below right: Setting the new health and safety

benchmark in construction at Corus Construction

and Industrial.

24


Corus Corporate Responsibility Report 2007/08

A workforce with added

vitality – IJmuiden

Improving health – Corus

Packaging Plus

The result has been the establishment of

two key performance indicators and

targets to achieve:

In March 2008, Corus Strip Products,

IJmuiden, our largest site in the

Netherlands, opened a new facility called

the Vitality Project. The Vitality Project is a

lifestyle clinic, which has been established

to reintegrate people back into the

workplace after ill-health and to promote

healthier lifestyles.

The project gives guidance on diet and

exercise regimes and develops programmes

for people to follow to help reduce weight,

develop muscle strength, or just to stay

in shape. The programme has been

developed with a significant Corus

investment and will help to maintain and

develop a healthier workforce and reduce

sickness absence.

Arboned, the main health provider at

Corus Strip Products, IJmuiden, runs the

Vitality Project and works in collaboration

with Corus to ensure that the project will

provide a healthier future.

Occupational hygiene assessments have

always been an integral part of the risk

assessment process to identify health

hazards on Corus sites. A central group

of occupational health professionals

and hygienists helps to deliver these

assessments. In order to ensure that our

major health hazards are managed in the

best possible way, a health and hygiene

project in Corus Packaging Plus has

been set up to establish links across the

Business Unit’s two main manufacturing

sites; Trostre in South Wales and IJmuiden

in the Netherlands.

The project aims to establish best practice

techniques to minimise exposures,

achieve a synchronised health surveillance

approach and deliver a competent trained

workforce with clearly defined roles

and responsibilities.

This has resulted in a clearer business

vision for improving health at work in Corus

Packaging Plus.

• a 25% year-on-year reduction in potential

occupational health exposures; and

• a reduction in sickness absence

related to ergonomic and mental health

related disorders.

During 2008, systems will be established to

measure and report baseline data, against

which future performance will be assessed.

New health and safety 3-year plan

In February 2008 we launched our new

health and safety 3-year plan at a

conference of the 400 most senior

managers. The plan has four objectives:

• prevention of serious incidents on

high hazard facilities;

• prevention of fatal accidents;

• ongoing reduction of LTIF by 25% a year;

• prevention of ill-health.

To support these objectives a number

of new standards, tools and improvement

initiatives will be developed and we will

complete the development of the Corus

Safety Management System incorporating all

our existing and new standards and tools.

Below: The team at our Corus Construction

& Industrial sites at Dalzell and Clydebridge

won an award for their work in conjunction with

the Scottish Executive's Healthy Working Lives

Programme during 2007.

Below right: Improving health at work through

our occupational health teams.

25


Corus Corporate Responsibility Report 2007/08

People:

Valuing our

workforce

Our goal is

to become

an employer

of choice.

Our people and culture

In an ultra-competitive world, success

does not just depend on employees’

expertise and effort. It emerges from their

personal engagement with their company.

With this in mind, we are developing

leadership and working practices to

involve and engage all of our employees.

As part of the integration process with

Tata Steel, a group of senior managers

reviewed our current culture and redefined

the culture we need to create to become

a world-class benchmark steel company.

Our performance culture is described on

pages 6 and 7.

Leadership: is the key to delivering

our objectives. A joint Tata Steel and

Corus leadership programme for

the top 500 managers will develop

the capabilities needed to create this

cultural shift. Appraisals and individual

performance reviews will also be aligned

with the new requirements, to provide a

better tool to support our change effort.

Organisational responsibilities

Irrespective of the takeover, Corus

remains a distinct business entity in

which the responsibilities of Divisions,

Business Units and functions are clear.

In summary, Divisions and Business Units

are responsible for profit and loss; lead

Divisions co-ordinate our approach to

key markets; while some aspects of our

commercial operations are co-ordinated

from the centre. Some functional

activities are managed centrally in order

to capture the benefits of scale, expertise

and efficiencies for the whole of Corus.

Common rules are set through Group

Policy Documents (GPDs) and Group

Standards. GPDs address major corporate

matters, risk areas and processes, while

Group Standards set out what is expected

from Business Units. In addition, a

number of functions have been created

that have a remit across the Tata Steel

Group, including technology and

integration, finance, strategy, corporate

relations and communications, and global

minerals. Individuals from the two entities

will also take lead roles within Tata Steel

Group in health and safety, purchasing

and information technology.

Union Learning Representative

Agreement – Corby

In June 2007, Corus Tubes at Corby

signed a Union Learning Representative

Agreement. The local Member of

Parliament, together with the three site

trade union organisations and the

business, witnessed the Corus Tubes

commitment to deliver a vision of

providing its workforce with life long skills.

This builds on a long history of supporting

staff with essential skills development in

literacy and numeracy, and the general

high priority given to training and

development within the business.

Below: The Hon Phil Hope MP witnessing the

signing of a Union Learning Representative

Agreement at Corus Tubes, Corby, UK.

Below right: Training in action.

26


Corus Corporate Responsibility Report 2007/08

Staffing and succession

We employed some 41,900 people at the

end of March 2008, compared to 41,200

at the end of 2006. Within Corus, 4%

of our employees are based outside the

European Union and 86% are in the UK

and the Netherlands, as presented in

Figure 5. The distribution of our employees

by Division is presented in Figure 6 and

by gender in Figure 7.

Figure 5 Employees by region

At end March 2008

1 UK 24,300

2 The Netherlands 11,700

3 Germany 1,700

4 Other countries 4,200

Total 41,900

2

3

4

1

Recruitment of people with relevant skills

and expertise continues to be challenging,

but we are increasing our efforts in key

areas and, for the third year running,

we are listed in the Times Top 100 best

graduate employers in the UK. This is in

the face of stiff competition from global

companies in all business sectors, including

banks and consulting companies.

Figure 6 Employees by Division

At end March 2008

1 Strip Products 19,200

2 Long Products 14,200

3 Distribution & Building Systems 6,000

4 Other (including Aluminium) 2,500

Total 41,900

3

2

4

1

Internally, we will increase our efforts to

foster and develop our technical and

managerial talent into future leaders.

More focus and visibility for our talent

platforms, more involvement of our

most senior executives in defining and

driving development plans for potential

successors, dual career ladders,

and open job advertising are key

initiatives that will be developed in

the coming months.

Figure 7 Gender breakdown

At end March 2008

Male 38,100

Female 3,800

Female

Male

Overleaf, Figure 8 shows the international

breakdown of our Executive Committee

and Figure 9 shows the international

breakdown of the Joint Tata Steel Group

Executive Committee.

Below and below left: Recruitment of people

with relevant skills and expertise is important to

help us achieve our objectives.

27


Corus Corporate Responsibility Report 2007/08

People:

Valuing our

workforce

Continued

Capability: training, development

and learning

We are continuing to invest in the training

and development of our employees. Most

training and learning is focused locally,

supporting our Business Unit strategies.

Business initiatives include apprentice

schemes, induction programmes, graduate

development, use of further education, and

external and tailor-made internal training

courses. These may lead to qualifications

such as foundation degrees, Certificates

from the Institute of Occupational Safety

and Health (IOSH), ONCs and HNCs, or

graduate and post-graduate degrees.

Centrally, we continue to train continuous

improvement (CI) coaches due to the

demand from the businesses. In 2007, we

supported our CI philosophy by developing

our senior managers’ capabilities in

strategy deployment and engagement.

Divisional and Business Unit workshops

focus on strategic business priorities and

how they will be deployed and translated

into priorities at all levels of the organisation.

In addition, we piloted and started to roll

out a development programme for our Group

Senior Managers which uses structured

feedback from their direct reports to help

them assess and develop their capability

to engage and motivate their teams. This

programme has been completed in two

of the three Divisions, and some businesses

have started rolling it out to the next level

of managers. We also started auditing the

effectiveness of our strategy deployment.

In the second half of 2008 we will

establish “Development Gateways” for

technical and managerial staff at key

career stages to ensure they have the

capability we need to face the challenges

of the future. Continuous improvement

skills will feature prominently in

their development.

Employee relations and

communication

Our consultation processes continue

to follow our well established practices.

We meet regularly with our European

Works Council, and we have consultative

structures and processes at country

and Business Unit levels. In the UK, an

information and consultation agreement

with national unions provides a framework

for consultation on strategic issues and for

regular updates on business performance.

In addition to day-to-day business

communication, we make efforts to

increase formal, two-way communication.

Extending the good practices with

employee surveys in some of our Business

Units, we have established Company-wide

guidelines. These require each Business

Unit to conduct employee surveys at

least every other year and to include in

their survey some 20 core questions to

enable a comparison of responses

across businesses.

For 2008/09, we will use the Gallup Q12

survey which enables us to benchmark

our survey results externally.

Below: Listed as a Woman to Watch,

Marjan Oudeman is setting the example

for women in the steel industry.

28


Corus Corporate Responsibility Report 2007/08

Figure 8 Corus Executive Committee

International breakdown

At end March 2008

British (UK) 4

Dutch (NL) 2

French (F) 1

Total 7*

NL

F

UK

*Director Legal, Compliance & Secretariat

is to be appointed.

Figure 9 Joint Tata Steel Group

Executive Committee

International breakdown

At end March 2008

Indian (IN) 8

British (UK) 5

French (F) 2

Dutch (NL) 2

Singaporean (SN) 1

Total 18

F

NL

UK

SN

IN

Setting the example for

women in the steel industry

Marjan Oudeman, Divisional Director

of our Strip Products Division has been

named as one of Ten Women to Watch in

Europe by The Wall Street Journal and one

of Fifty Women to Watch globally. Cited as

one of only a few women who have made

it to the top ranks of the world’s booming

steel industry, Ms Oudeman is listed

among a new generation of women

leaders who are established within the

executive committees of some of the

world’s largest companies. A lawyer by

training, Ms Oudeman joined the company

in 1982 and is now responsible for the six

Business Units within the Strip Products

Division that employs over 19,200 people.

Lianne Deeming, Corus Strip Products

UK Director of Process Development has

been named Welsh Woman of the Year

2007. Ms Deeming, who is responsible for

managing technical innovation at sites in

Port Talbot, Llanwern and Pontardulais,

was announced the winner in the Science

and Technology category at the

prestigious national awards. Ms Deeming

joined the Company as a graduate in

1989, and her career has included various

prominent managerial positions including

Manufacturing Manager, Works Manager

and CI Manager at Port Talbot.

Attracting suitably qualified graduates

continues to be one of our key priorities.

Our on-campus campaigns to raise

awareness of the benefits of a career

with Corus are creating impact. Each year

more than 10,000 students or graduates

apply to work for Corus in the UK alone.

During the 2006/07 recruitment year,

of the 125 graduates recruited in the UK,

25% were women.

Fourth generation

steelworker – Scunthorpe

In 2007, 36 school-leavers in the UK

joined nearly 200 apprentices at Corus

Construction & Industrial for a combination

of college study and plant-based training

on the Business Unit’s apprenticeship

scheme. The programme offers first-class,

hands-on training in mechanical, electrical,

structural and specialist trades, giving

students the chance to experience a

realistic working environment – at the

same time as earning a wage.

Like many North Lincolnshire men and

women before them, 16-year-olds Tim

Martin and Andy Longmate followed in

their families’ footsteps when they

became apprentices at Corus Construction

& Industrial’s steelworks at Scunthorpe.

Tim became the fourth generation of

his family to work for Corus and its

predecessors in Scunthorpe when he

joined the scheme in September 2007.

Tim will be following on from his great

grandfather Charlie Martin, a loco driver;

his grandfather Colin Martin, a plant fitter;

and his father Ian Martin who is still

working for Corus after 29 years as a

senior process control engineer.

Andy is the third generation of a family

which has worked at Scunthorpe steelworks

for more than 100 years. Andy’s father,

Dave Longmate, is a team leader on the

continuous casting plant at Scunthorpe.

This apprenticeship programme is in

its sixth year, taking the total number

of apprenticeships to 320. Our trainees

have the opportunity to study for

professional qualifications at the same

time as gaining essential work experience

at the very beginning of their careers.

Left: Tim, the fourth generation of the Martin

family, joined the Company this year.

29


Corus Corporate Responsibility Report 2007/08

People:

Valuing our

workforce

Continued

The Corus CEO Awards

recognise excellence and

the outstanding contribution

of our employees.

CEO Awards

The annual CEO Awards are the most

prestigious awards in Corus. They recognise

excellence and the outstanding contribution

of employees to delivering our objectives.

There are three categories of CEO Awards:

health and safety; best supplier to best

customers; and world-class processes.

The judging panel looks for evidence

of strategy deployment, employee

engagement and commitment, as well

as examples of how continuous

improvement tools and techniques have

been used to secure outstanding results.

The high standard of entries during

2007 is a reflection of the considerable

progress that is being made across

Corus, and sets a new benchmark

for 2008. The 2007 winners and those

who were highly commended were

announced at our Group Senior Managers’

Conference in February 2008.

Health and safety

The winner of the health and safety

award for 2007 was the HTD Maintenance

Services team at Corus Strip Products,

IJmuiden (see the case study earlier

in this section). The judges agreed that

the Partners in Safety programme is

outstanding, a best in class example

for other Corus Business Units on how

to change the attitudes of employees

towards safety and achieve a significant

improvement in safety performance

as a result.

Below: Members of the HTD Maintenance Team

at Corus Strip Products, IJmuiden, receiving the

CEO Award for health and safety.

Below left: Corus International, New Zealand,

was highly commended in the 2007 CEO Awards

for health and safety.

30


Corus Corporate Responsibility Report 2007/08

Highly Commended awards were

presented to Corus International New

Zealand for its success in changing

its safety culture resulting in the

recordable case frequency significantly

reducing from 31 in 2003 to 2 in 2007;

and Corus Construction & Industrial and

Corus Northern Engineering Services

(see the case study earlier in this

section) for the management of

contractor health and safety over the

duration of the Starsigns construction

projects at Scunthorpe.

Best supplier to best customers

The winner of the best supplier to best

customers award for 2007 was the team

at Corus Packaging Plus, Trostre, for

delighting customers and improving their

competitive position by slashing lead

times from two months to two weeks

through the largest continuous

improvement project – Two Week

Lead – seen in the Company to date.

A Highly Commended award was

presented to Kalzip, a Corus Distribution

& Building Systems business, for its

Approved Installer Scheme. Kalzip

has created Teamkal, a worldwide

partnership with more than 5,000

installers of its aluminium standing seam

roofing, all of whom are committed

to best practice, high standards of

service, and improved quality.

World-class processes

The winner of the world-class processes

award for 2007 was Thrybergh

Combination Mill at Corus Engineering

Steels, Rotherham, for outstanding

improvements following the challenges

of a EUR18m (£24.5m) investment

to combine the hot processing of both

straight and coiled bar at one facility.

In addition, there was a reduction

in LTIF from 11.0 in 2006 to 2.7 at the

end of 2007.

A Highly Commended award was

presented to Corus Distribution

& Building Systems, Maastricht /Feijen

Service Centre for the relocation

of a cut-to-length line from Lackenby

in the UK, and the excellent cross-

Business Unit working to achieve

an improved competitive position.

Below: Members of the Corus Engineering

Steels team at Thrybergh Combination Mill

receiving the CEO Award for world-class

processes.

Below left: Members of the team at Corus

Packaging Plus, Trostre, receiving the CEO

Award for best supplier to best customers.

31


We are committed to reducing

our greenhouse gas emissions

and progressively reducing our

impact through the adoption

of sustainable practices.

How are we protecting the

environment and responding

to climate change?

32


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Policy statement

We are committed to minimising

the environmental impact of our

operations and our products through

the adoption of sustainable practices and

continuous improvement in environmental

performance.

Policy principles

The principles which demonstrate how we implement our policy are:

1 Compliance

To meet the requirements of relevant

legislation in the countries and regions in

which we operate.

2 Management systems

To implement effective environmental

management systems and to ensure the

environmental awareness of our workforce,

encouraging every employee to act in an

environmentally responsible manner.

5 Product stewardship

To promote the recovery, recycling and

reuse of our products, and to work with our

customers to understand the environmental

effects of our products throughout their

life-cycle.

6 Monitoring and reporting

To monitor/audit environmental performance

and to report progress on policy objectives

and improvement targets on a regular basis.

3 Continuous improvement

To improve the environmental performance

of our processes and products through

research and development of new

technologies, preventing and reducing

emissions and releases, minimising waste

and controlling noise.

4 Sustainable development

To contribute to sustainable development

by using energy, water and raw materials

more efficiently, thus optimising our use of

natural resources.

7 Suppliers and contractors

To encourage suppliers and contractors to

behave in a responsible manner and to

maintain sound environmental practices.

8 Local communities and biodiversity

To respond to the concerns of local

communities and other interested parties on

environmental issues and to respect the

general environment and wildlife habitats

in and around our sites.

Right: Mute swans are one of many species

of birds that breed at Coatham Marshes on

Corus-owned land on Teesside.

Opposite: Our steel is an essential ingredient

in delivering the energy mix of the future.

(Photograph courtesy of Henricks Industries)

33


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Continued

Performance

Scope

The data presented in this section cover

all Corus manufacturing sites with the

exception of a small number of facilities

within Corus Distribution & Building

Systems which make only a minor

contribution to our overall emissions

inventory. Excluded from the data are

any emissions from operations that were

closed or sold during 2007/08, such

as Corus Rail, Workington, in Cumbria,

UK. Where we have compared

performance against that in previous

years, we have used 2000 as a baseline

wherever possible. During 2000, we

produced just under 17.5 million tonnes

of liquid steel in our integrated steelworks,

compared to just over 19 million tonnes

of liquid steel in 2007 and 2007/08.

Environmental protection is integral

to the way we do business. We are

committed to progressively reducing

our impact through the adoption

of sustainable practices.

34


Corus Corporate Responsibility Report 2007/08

Data are provided for the 12 months

ending March 2008, which is the financial

year end. To allow comparison against

previous years, data are also provided

for calendar year 2007.

To reflect the importance of, and public

interest in, climate change, we have

reported on greenhouse gas emissions

separately from other areas of

environmental performance in this

year’s report. This can be found at

pages 42–47.

Compliance

In 2006 we achieved our target of 99.0%

compliance over a full year. Unfortunately,

our compliance with statutory limits on

both air and water emissions deteriorated

to 98.6% in 2007 and 98.2% for the

12 months ending March 2008. This is

largely attributable, not to an increase in

emissions, but to the stringency of new

emission limits in the revised permit for

Corus Strip Products, IJmuiden, which

became effective in March 2007.

We have established a target to restore

and improve upon our compliance rate

by continuing to develop high-level

corrective action plans at sites with an

individual compliance rate worse than

96%, and through the continuing scrutiny

of compliance performance by our

Executive Committee. Figure 12 shows

our compliance performance, quarter

by quarter, from Q1 2006 onwards.

There were no environmental prosecutions

or fines in relation to our activities during

the 15 months covered by this report.

Management systems

All of our European manufacturing sites

have established and maintained systems

certified as conforming to the international

environmental management system

standard, ISO 14001. We are proud of this

accomplishment: management systems

provide us with a clear framework for

managing compliance and environmental

improvement in a structured and

co-ordinated manner. A number of our

smaller non-manufacturing sites in the

Distribution & Building Systems Division

are also now working to formalise

their environmental and sustainability

practices through certified environmental

management systems.

Investment in environmental protection

We are committed to reducing our

environmental impact whenever it is

practicable and cost-effective to do so.

During 2007/08, a significant proportion

of the capital investment across the

Company related to schemes that

improved our energy efficiency or

reduced our environmental impact in some

other way. Some of this investment is

described later in this section of the report.

Figure 12 Compliance with emission limits

99%

98%

97%

96%

2006 2007

2008

95%

Q1 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4

year

■ Quarterly average ■ Yearly average — Performance target

Spot measurement results only (air and water combined).

The compliance rate for continuous measurements in 2007 exceeded 99.9%.

Full

year

Q1 07/08

Right: A view of our integrated steelworks

at Teesside.

Opposite: One of our employees, an accredited

agent, carefully translocating a great crested

newt at Scunthorpe.

35


Corus Corporate Responsibility Report 2007/08

Emissions to air

Our most significant releases to air, in

addition to the greenhouse gases described

later in this section, are particulate

material (including fine particulate such

as PM10), sulphur dioxide (SO2), nitrogen

oxides (NOx), metals and dioxin.

A combination of direct measurements

and complex modelling work have

demonstrated that our contribution to

airborne levels of pollutants in the vicinity

of our production facilities is generally

not significant compared to background

levels. Indeed, European air quality

objectives are currently being met in the

areas around all of our major facilities,

with the exception of PM10 near some

integrated steelworks where we continue

to work closely with the relevant local

authorities to improve our understanding

of local air quality and our contribution

to background levels.

We are committed to minimising the

impact of our emissions on the

environment, for example, we have

recently announced a £9m (EUR12m)

investment in particulate emissions

controls at the Basic Oxygen Steelmaking

(BOS) plant at Corus Construction and

Industrial, Scunthorpe. This is described

in more detail in the case study opposite.

At Corus Engineering Steels, Brinsworth

Strip Mill, we invested £189k (EUR 255k)

in the commissioning of a new pickling

plant fume scrubber in March 2008 to

reduce our releases of chloride into the

atmosphere. Furthermore, at Corus Tubes

20” Pipe Mill in Hartlepool, an abatement

system was installed in October 2007 to

dramatically reduce releases to air of

volatile organic compounds (VOCs) from

a pipe coating process. The technology

utilises the adsorbtive capacity of the

naturally occurring mineral zeolite to

concentrate the VOCs, which are then

vaporised in a thermal oxidiser.

We are committed

to minimising the

impact of our

emissions on

the environment.

Figure 13 Emissions to air relative to 2000

Per tonne of steel

100

90

80

70

60

00 01 02 03 04 05 06 07/08

■ Particulate ■ Dioxin ■ NO x ■ SO 2 ■ Lead

36


Corus Corporate Responsibility Report 2007/08

Table 4 Emissions to air

Tonnes/year unless otherwise stated

Substance 2000 2007 2007/08*

PFCs 8.2 10.3 9.3

Particulate 14,600 13,610 13,580

PM10 no data 7,910 7,890

Dioxin 42.4g 29.2g 28.1g

PAHs 15.2 9.5 10.1

Benzene 96 71 72

NMVOCs 1,350 1,010 1,030

NOx 30,100 24,460 24,500

SO2 32,400 31,520 31,460

CO 452,500 409,320 436,770

Fluoride 200 155 151

Arsenic 0.58 0.56 0.54

Cadmium 0.87 1.32 1.33

Chromium 4.5 2.9 2.9

Copper 5.0 3.3 3.4

Lead 65.6 66.5 68.0

Mercury 0.44 0.50 0.52

Zinc 65.5 33.7 33.6

*Calculated as 0.75 x 2007 emission plus actual

Q1 2008 emission.

Following a release of coke oven gas

at Corus Construction & Industrial,

Scunthorpe, in 2006, we have worked

closely with the environmental

and health protection authorities to

improve our process controls and

have invested £2.2m (EUR3m) in

ignition systems, one of which was

commissioned in March 2008.

Table 4 presents mass emissions to air

data for 2007 and 2007/08, compared to

data from 2000. This shows our absolute

emissions have fallen since 2000 for 13

out of the 17 pollutants most relevant to

our operations and for which comparable

data exist. This improvement has been

delivered in spite of steel production

having increased since the baseline

period and despite the improvements in

monitoring techniques since 2000 that

have enabled us to include emissions

from sources that were once excluded

from our emissions inventory. This

improving trend is further illustrated in

Figure 13 which shows normalised

emissions data for our most significant

non-greenhouse gas emissions to air

from 2000 to 2007/08.

Improving local air quality –

Scunthorpe

In October 2007, Corus Construction &

Industrial, Scunthorpe, announced plans

to invest £9m (EUR12m) in new

environmental abatement technology

to reduce dust emissions associated

with the BOS plant.

In addition to those used in the existing,

larger, primary and secondary extraction

systems in the BOS plant, powerful new

fans will extract up to 1 million cubic metres

of air each hour – enough to fill Wembley

Stadium. The extracted air will pass

through new bag filters which will remove

almost all of the dust generated at the iron

pouring and desulphurisation stations.

Inside the BOS plant, new fume collection

hoods and enclosures will create a better

working environment for employees.

Meanwhile, a new injection system linked

to the environmental improvements will

help speed up the steelmaking process

and improve the site’s overall productivity.

Right: We are investing £9m in emissions

reduction equipment at the BOS plant at Corus

Construction and Industrial, Scunthorpe.

Opposite: Teesside Cast Products won the

Tees Valley Business Award for Corporate Social

Responsibility in 2007. The award sponsors

described our work as “inspirational.”

37


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Continued

Salmon return to the River

Don – Rotherham

Corus Engineering Steels has installed a

£1m (EUR1.3m) water treatment facility at

its steelworks in Rotherham to help

protect the aquatic environment and

improve the water quality in the River Don.

The new water treatment facility can treat

up to 280,000 litres of water per hour

before discharging it back into the River

Don. As well as treating cooling water

used in the steelmaking process, the

facility also treats rainwater from across

the site. It incorporates a large collection

tank and separator to remove suspended

solids, and sand filters to remove oils and

other contaminants.

In December 2007, a local angler caught

a salmon in the River Don near Mexborough,

four miles downstream of Rotherham

works. It is believed to be only the second

salmon to be caught on the river in the

last 150 years, with the first being in 2001.

Salmon only live in very clean waters, and

the catch is therefore indicative that water

quality has improved significantly, due in

part to Corus’ commitment to improving

the environment.

Emissions to water

Most of the water we abstract is used for

non-contact cooling and is returned directly

to the watercourses from which it is

taken, with no deterioration in quality.

To minimise the impact of our process

effluents, and to achieve high levels of

compliance with emission limits (and with

environmental quality standards in the

watercourses into which we discharge),

we employ a complex range of biological,

chemical and physical effluent treatment

technologies at many of our plants. We are

continuously improving our treatment

capability. In addition to effluent treatment,

we also deploy a wide range of pollution

prevention measures across all of our

sites to ensure that potential pollutants

such as oils, acids, raw materials and

water treatment chemicals are stored and

used in contained systems. The adjacent

case study describes some of the

tangible improvements that have arisen

as a result of the water quality schemes

that we have recently installed.

Table 5 presents data on emissions to water

for 2007 and 2007/08 and compares

these with data from 2000. These figures

show that there has been a reduction in

absolute emissions to water, since 2000,

for seven out of the nine parameters that

we believe are most relevant to our

processes. Emission data trends for

certain pollutants are also presented

in normalised form in Figure 14.

Water consumption

Relatively large volumes of water are used

to make steel, although the amount of

freshwater that we use is difficult to quantify

accurately. To reduce our overall water

consumption we employ a wide range of

techniques, such as recirculating cooling

systems and effluent recycling.

Corus Tubes’ operations at Hartlepool

use large volumes of water in contact

cooling systems. These generate oil

contaminated water that requires

treatment and disposal. Through

collaboration with the technical experts

at Hartlepool Water, Corus Tubes invested

during 2007/08 in a new state-of-the-art

water treatment plant. This investment

has allowed a significant proportion

of the cooling water to be treated and

recirculated, thereby reducing our usage

of valuable local water resources.

Table 5 Emissions to water

Tonnes/year

Substance 2000 2007 2007/08*

Suspended solids 2,950 1,410 1,470

Arsenic 1.00 0.29 0.26

Cadmium 0.08 0.22 0.21

Chromium 2.06 1.22 1.21

Copper 1.89 1.02 0.98

Lead 4.06 2.93 2.82

Mercury 0.02 0.01 0.01

Nickel 3.53 0.93 0.92

Zinc 15.54 22.42 22.86

*Calculated as 0.75 x 2007 emission plus actual

Q1 2008 emission.

Below : Salmon are returning to the

River Don after an absence of 150 years.

Figure 14 Emissions to water relative to 2000

Per tonne of steel

80

60

40

20

0

00 01 02 03 04 05 06 07/08

■ Suspended solids ■ Arsenic ■ Lead

38


Corus Corporate Responsibility Report 2007/08

Figure 15 Waste to landfill

Thousand tonnes/year

1,000

800

600

400

200

0

00 01 02 03 04 05 06 07*

■ Additional waste to landfill associated with one-off events

■ Production waste to landfill excluding one-off events

* We have only presented calendar year data for 2007 as

this is the period to which our improvement target relates.

Waste

Our processes have been refined over

many years to ensure that we optimise the

consumption of materials within them.

Although we achieve a high level of

conversion efficiency, some of our processes

inevitably generate waste. The focus then

shifts to ensuring that waste materials

are either reused, recycled or otherwise

recovered. We have found uses for many

of our wastes in other sectors of industry.

In certain cases, disposal is the only

cost-effective alternative for our wastes.

This is always done in a manner that ensures

environmental impacts are minimised.

Landfill is the dominant disposal option,

particularly in the UK, where our landfill

sites are covered by the stringent

requirements of the EU Landfill Directive.

Figure 15 shows waste to landfill

performance between 2000 and 2007.

Despite significant efforts made by the

businesses to increase the segregation

of wastes, thereby improving the

opportunities to reuse and recover

materials, the trend is still of concern to

us and we missed our target of a 10%

reduction in production waste to landfill

between 2005 and 2007. Consequently,

we have set a new target relating to

waste reduction which will focus on BOS

plant waste streams which account for a

substantial proportion of our total

landfilled waste.

Corus Construction & Industrial has

launched a new waste segregation centre

at Scunthorpe to allow waste streams

from across the numerous plants and

departments to be centrally segregated

and despatched for recycling. On a site

the size of Scunthorpe, the centre is

fundamental to achieving our business

objective of reducing waste to landfill.

An eight-foot giant sculpture, known as

Mr Rhys I Kling, made entirely of recyclable

materials stands at the entrance to the

centre to promote awareness.

Waste Quality Protocols –

working in partnership with

the Environment Agency

and WRAP

Uncertainty over the point at which

“waste” is fully recovered has meant that

some materials have continued to be

controlled as wastes even when they no

longer present a significant risk to the

environment. This has tended to constrain

the development of markets for valuable

secondary raw materials arising in certain

industrial processes.

In response to this threat to resource

optimisation in the UK, the Environment

Agency (EA) and the Waste & Resources

Action Programme (WRAP) launched the

Waste Protocols Project. During 2007 and

the first part of 2008, our experts have

worked in partnership with the EA and

WRAP in two technical advisory groups

(TAGs) tasked with better defining the

status of blast furnace slag (BFS) and

steelmaking slags.

The BFS TAG reached a conclusion in

2007 that BFS is a by-product of

ironmaking, and never a waste, thus

securing the well established markets for

the more than three million tonnes of BFS

we produce annually. We estimate that the

use of BFS in concrete alone saved

approximately 2.6 Mt of CO2 emissions

from the UK construction sector in 2007.

The steel slag TAG is still completing its

work, with Corus continuing to play a

leading role.

Below: Mr Rhys I Kling, the themed sculpture

at the entrance to the new waste facility at our

Scunthorpe site.

Below right: Members of our team at Corus

Colors, Tafarnaubach, where a wide range

of recycling facilities were commissioned

in 2007/08.

39


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Continued

We recognise our

obligations to the

communities in

which we operate.

Nuisance

Our processes are large and complex

and many of our production facilities

are located close to residential areas.

We recognise our obligations to the

communities in which we operate, and

we face an ongoing challenge to ensure

that we do not cause nuisance or distress

to local residents.

In our Corporate Responsibility Report

2006, we reported that we had surpassed

our target to reduce public complaints

by 10% compared with 2003, achieving

a 50% reduction in the number of

complaints. Figure 16 shows that we

have maintained this level of performance

relative to 2003. Our complaint

management systems ensure that all

complaints are thoroughly investigated,

so that we can learn from our mistakes,

implement corrective action and then

provide feedback to complainants.

We have closely monitored the

development of REACH since it was first

proposed some four years ago and we

have played an active role in developing

the implementation structure for the

European steel sector. We have carefully

and systematically identified our

obligations under REACH and developed

a strategy for ensuring that we fulfil them

in a timely and efficient manner. Part of our

strategy involves engaging with players

on both sides of the material supply

chains within which we act. In the first

instance we are doing this in a relatively

informal manner, with the primary

emphasis being to achieve a common

understanding of how responsibilities

will be shared.

To oversee our REACH implementation

plans, we have established a dedicated

team of experts led by a senior

REACH Manager.

Hazardous substances

REACH

The European Union’s new chemicals

policy, REACH, came into force in June

2007. REACH requires producers and

importers of substances to conduct

extensive risk assessments for each

substance and this affects Corus as

both a manufacturer of substances such

as iron and slags and as an importer

of substances such as some of our

alloying additions.

Producer responsibility

We have continued to work closely with a

variety of partners to develop chromiumfree

passivation coatings for our tinplate and

hot-dip galvanised material in response to

the requirements of the Restriction of

Hazardous Substances Directive. During

2007 we phased out chromium passivation

for all our products destined for electrical

and electronic goods. Whilst not specifically

required under product legislation, at

Cogent, Orb Works, near Newport, we

have completely phased out chromium

passivation on our entire product range.

Below: We have carefully and systematically

identified our obligations under REACH.

Opposite: At our site in Scunthorpe we have

constructed two ponds as a habitat for great

crested newts.

Figure 16 Public complaints

800

600

400

200

0

03 04 05 06 07/08

For calendar year 2007, 494 complaints were received.

40


Corus Corporate Responsibility Report 2007/08

Biodiversity

Due to a combination of factors, from

our ownership of large tracts of relatively

undisturbed ground, to the application

of site-greening strategies at many of

our sites and the efforts of enthusiastic

employees, wildlife groups, schools

and voluntary bodies, our sites provide

a haven for a surprisingly rich variety of

wildlife. For example, we have the largest

colony of common terns in Wales at our

site at Corus Colors, Shotton, and a large

colony of sand martins at our site at Corus

Construction & Industrial, Scunthorpe.

We respect the habitats that have grown

up beside our operations and view these

as something to be proud of. Consequently,

ecological factors are increasingly being

taken into consideration as part of the

planning phase of maintenance and

development works at our sites.

Supporting biodiversity – Teesside and Scunthorpe

We were a founder member of both the

Teesside and Humber branches of

the Industry and Nature Conservation

Association (INCA). Since 1989 we have

worked closely with other industries,

volunteers and experts from INCA to

improve our understanding of the biodiversity

in and around our Teesside and Scunthorpe

integrated steelworks.

In March 2008, Corus employees from

Scunthorpe joined representatives from

Humber INCA to maintain two regular

nesting areas for the annual arrival of sand

martins from their African wintering grounds.

Over the past 50 years, the European

population has crashed on two occasions

as a result of droughts in Africa. Sand martins

have nested in various locations on the

steelworks for the past seven years, and

in 2003 Corus and contractor Multiserv

created an artificial nesting bank in the olivine

stocking area to provide additional habitat.

For the original creation of this habitat, we

were awarded the 2004 Lincolnshire

Environmental Award.

During 2007, various ecological surveys

have been commissioned at Teesside

and Scunthorpe to identify, and

subsequently protect, the wildlife that

cohabits land upon which we operate.

Great crested newts, brown hare, roe deer,

foxes, little ringed plover and a number of

species of orchids, including bee and

pyramidal, are just some of the species

known to be present. Both sites are also

host to populations of grayling butterfly,

a priority species on the UK’s biodiversity

action plan. Our environmental officers

have also undergone specialist training

to obtain the various licences required to

handle protected species, further assisting

their role as custodians.

The adjacent case study provides an

example of some of the important

biodiversity work that has been supported

by Corus’ financial contributions.

41


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Climate change

Climate change is in the news on an

almost daily basis, and there is now a

high profile global political ambition,

with Europe taking a lead, to limit global

temperature increases by reducing

greenhouse gas emissions.

Although typical carbon dioxide (CO2)

emissions from steelmaking are now

around 50% lower, per tonne of steel,

than 40 years ago, we recognise that our

industry is still a significant contributor

to global CO2 emissions. For this reason,

we are contributing actively towards

achieving a worldwide solution.

In February 2007 we established a highlevel

Corus Climate Change Task Force

(CCCTF) in order to define our forward

strategy in response to the issues that

might arise through climate change.

We have now embarked upon the task of

implementing all of the recommendations

of the CCCTF and a Climate Change

Programme Office has been established

to help to implement, and monitor

progress against, our strategy.

Our climate change strategy

Emissions reduction: we will continue to

improve our current processes to increase

our energy efficiency and to reduce our

carbon footprint, with a target of reducing

CO2 emissions per tonne of liquid steel

(t/tls) by at least 20% (to


Corus Corporate Responsibility Report 2007/08

campaign at all of our sites to improve

awareness, inspire action and challenge

behaviour in our “Small actions, big

results” initiative.

Emissions reduction

Why is CO2 emitted during steelmaking?

Iron is the main component of steel and

CO2 is an unavoidable by-product of its

production. Carbon, in the form of coke

and coal, is used in the blast furnace

ironmaking process as a chemical

reductant where it also serves to generate

the high temperatures needed for the

process to operate. It combines with

the oxygen in the ore to form carbon

monoxide and CO2, allowing the hot

molten iron to be extracted.

Direct and indirect emissions

The CO2 emissions from our activities can

be split into direct and indirect emissions.

Direct emissions are those that physically

arise at our sites, for example from the

combustion of gases produced in the

blast furnaces during the ironmaking

process. Indirect emissions are those

that arise at other locations, but are

associated with Corus’ activities, for

example, emissions related to the

generation of our purchased electricity.

Reporting boundaries

During 2007, our RD&T experts defined

the boundary for calculating our CO2

emissions and this formed the basis for

the work of the CCCTF. This boundary

includes all direct CO2 emissions and

indirect CO2 emissions related to the import

and export of electricity, gas, coke and iron

ore pellets.

The IISI has launched a new global steel

sector approach for the collection and

reporting of CO2 emissions data, which

may be used in the future for the setting

of commitments during the post-Kyoto

period. Corus is collaborating with IISI on

this initiative, and the scope and boundaries

for CO2 emission reporting may change

as a result of this in future reports.

Performance

Table 3 presents Corus’ total direct CO2

emissions for 2006, 2007 and 2007/08

compared to 2000.

Figure 10 shows the specific CO2

emissions of our integrated steelworks

from 1990 to 2007/08 and identifies the

improvement needed for us to achieve our

emissions reduction targets of


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Climate change

Continued

Energy saving measures

There is a close link between energy

intensity and emissions performance

and energy optimisation is therefore

an important element of our emissions

reduction strategy. Figure 11 shows

the improvement in energy intensity

at our integrated steelworks since 2000.

This improving trend is particularly

important as these sites account for

over 85% of all the energy we use.

Initiatives for optimising energy use are in

place at our integrated sites and at other

sites across the Company. Some examples

are listed below and in the adjoining

case study.

• Corus Strip Products, IJmuiden,

launched its YmGreen programme

to achieve CO2 emissions reductions

from in and around the site. The

operational feasibility of High Efficiency

Combustion burners for furnaces is

being tested for use across the site,

with a projected increase in burner

energy efficiency of 20%.

• Corus Special Strip, Trier, has assessed

routes to optimise waste heat from the

process and analysed the heat loss

from the manufacturing building itself.

• At Corus Engineering Steels, Rotherham,

a major programme of restructuring

has resulted in a number of significant

energy efficiencies. The commissioning

of a new small bloom continuous caster

that eliminates the requirement for

primary rolling, and the more efficient

use of carbon and oxygen additions

in the arc furnaces has achieved a

28% reduction in direct and indirect

CO2 emissions per tonne since 2005.

• At Corus Rail, Hayange, we have invested

in new automation and optimisation

computer systems to improve control

on the reheating furnaces and reduce

our energy consumption by 11%.

• Corus Colors, Tafarnaubach, will realise

substantial CO2 emissions reductions from

lighting improvements alone. Initiatives

to date include light intensity sensors

in the production bays and motion

detection sensors in storage areas.

• Teesside Cast Products has been

working with the Carbon Trust to audit

the energy efficiency of its operations

as part of a regional project with

OneNorth East.

Our energy performance is on an improving

trend and we expect this to accelerate in

2008 with the assistance of our newly

established Energy Efficiency Task Team,

which will work with the Divisions to

identify and facilitate energy optimisation

schemes across all our sites. An Energy

Optimisation Platform has also been

established to exchange best practices

between our sites.

Energy saving schemes –

Port Talbot

In 2005, Corus Strip Products UK (CSP

UK) set up an Energy Optimisation Team,

which brought together energy specialists

from across various process areas within

the business. During 2006, work began to

evaluate a large number of potential energy

optimisation schemes, and a programme

of implementation was developed.

During 2007 alone, a wide-range of

schemes were implemented including:

• modifying the coke oven heating system

to allow more blast furnace gas to be

used, thereby releasing coke oven gas

for other uses such as in the hot strip mill

furnaces. This reduces the requirement

to import natural gas;

• improvements in the gas supply to

the blast heating stoves on No. 4 Blast

Furnace, thereby also releasing coke

oven gas for use at the hot strip mill;

• installation of variable speed drives at

the coke ovens, hot strip mill and cold

mill to reduce energy consumption; and

• various high efficiency lighting schemes

across the entire business.

The combined effect of the energy saving

schemes in 2007 was a 3.3% improvement

in CSP UK’s energy intensity compared

to 2005.

In January 2008, Corus approved a £60m

(EUR 81m) capital investment scheme at

CSP UK, Port Talbot, for the installation

of a BOS gas recovery system, including

ancillary schemes associated with on-site

power generation and gas distribution

infrastructure. The overall scheme is due

to be commissioned in July 2009 and will

deliver a 60% reduction in natural gas

usage across the site and a 20% reduction

in electricity purchased from

the National Grid.

Figure 11 Integrated steelworks energy intensity

GJ/tonne steel

21

In all, this significant investment will reduce

CO2 emissions by 297,000 tonnes per

annum at Port Talbot steelworks, of which

240,000 tonnes/year will be direct CO2

emissions and 57,000 tonnes/year will be

indirect CO2 emissions.

20

19

18

17

16

00 01 02 03 04 05 06

In 2007, integrated steelworks accounted for approximately 95% of our total

steel production and over 85% of our total energy use.

07/08

For calendar year 2007, energy intensity was 18.20 GJ/tonne.

44


Corus Corporate Responsibility Report 2007/08

We are making

significant

progress in

reducing our

transport

emissions.

“Less miles, More smiles” with TDG and EST

Logistics expert TDG, in collaboration with

Corus, has provided an innovative solution

to our road distribution network: a 4th party

logistics (4PL) Transport Platform based in

Scunthorpe and operated by a skilled TDG

management team. The platform links

multiple Corus sites, customers and third

party hauliers, allowing the TDG team to

optimise transport plans. By linking outbound

journeys with return legs, TDG has reduced

the running empty rate to 18% – an impressive

17% lower than the industry average.

Since the Corus 4PL Transport Platform

went live in August 2006, 38 Corus sites

have been brought on-line equating to

1,300 loads a day. Through a reduction in

empty mileage and an increase in planning

efficiencies, the initiative will save over

1 million miles and 0.5 million litres of fuel

a year. This equates to an annual CO2

emission reduction of 1,315 tonnes, with

further indirect savings realised from the

emissions associated with fuel production.

In addition, we are working with the Energy

Savings Trust and Lloyds TSB Autolease to

reduce the carbon footprint associated with

our company car and commercial vehicle

fleets and our general car hire agreements.

The results of this in-depth review will

inform future policy changes and will be

used to set targets for specific emissions

reductions from our vehicles.

A number of our sites also provide a

dedicated bus service for employees.

For example, around 2,800 employees at

Corus Strip Products IJmuiden, utilise such

a service to travel to work each day.

Below: Through our collaboration with TDG,

we are set to save 0.5 million litres of fuel a year.

45


Corus Corporate Responsibility Report 2007/08

Protecting the

environment

Climate change

Continued

Regulatory framework

Along with the rest of the European steel

industry, we are involved in the EU Emissions

Trading Scheme (EU ETS), which requires

EU Member States to establish national

CO2 emissions caps, to allocate emissions

allowances to installations within industrial

sectors and to encourage the development

of a Europe-wide market in emissions

allowances. 2007 was the last year of the

first phase of the scheme. As in 2006,

we experienced an overall surplus in

allowances (that is, we emitted fewer

tonnes of CO2 than our total number

of allowances), principally as a result of

our production plans not being realised.

The second phase began on 1 January

2008, and although our targets are

challenging, we expect to meet our

environmental obligations.

The European Commission is consulting

on a revised emissions trading directive

to be applied post 2012. Through the

European Confederation of Iron and Steel

Industries (Eurofer), we are actively

engaged in lobbying the Commission

to oppose auctioning as the allocation

methodology since this would leave

energy intensive sectors, such as steel,

hugely disadvantaged compared to

international competitors. We are

continuing to work closely with our

international colleagues to advocate

a global steel sector approach

to climate change through the IISI.

Investing in research, development

and technology

Corus has committed an additional £1.2m

(EUR 1.6m) annually to fund an internal

climate change research programme.

A series of workshops has been held with

process, energy, environment and product

development experts to develop the

programme. The largest work stream will

focus on process efficiency to achieve

our emissions reduction target of at least

20% by 2020, compared to 1990.

As described earlier, there is an

insurmountable scientific barrier to

further significant reductions of CO2

emissions from the conventional iron

and steelmaking process. As a result,

the production of hot metal via the blast

Left: Our integrated steelworks at IJmuiden

where we have launched the YmGreen

programme to achieve CO2 emissions reductions.

Opposite: Members of the Energy Optimisation

Team at Corus Strip Products UK, Port Talbot,

surveying the site where we are investing £60m

in a BOS gas recovery scheme.

46


Corus Corporate Responsibility Report 2007/08

We offer our

customers

solutions to

reducing

greenhouse gas

emissions across

the complete

life-cycle of our

products.

furnace route needs to be placed on a

completely new technological path if

a step change in emissions is to be

realised. Corus is a major partner in

ULCOS (Ultra-Low CO2 Steelmaking),

a EUR59m (£43m) European research

project to investigate technologies that

could bring about this step-change

reduction in CO2 emissions by 2050.

Corus RD&T is contributing significant

expertise to the ULCOS project, and

manages three of the five sub-projects.

To date, four breakthrough technologies

have been identified: blast furnace top

gas recycling; ISARNA (a new smelting

reduction process with very high

efficiency); advance direct reduction;

and electrolysis. Additional supporting

technologies include carbon capture

and storage and use of carbon from

sustainable biomass. For more

information visit www.ULCOS.org

The ULCOS partners, including Corus

and the European Commission, are

working towards ULCOS II; large scale

demonstrator projects of one or two of

the breakthrough technologies from 2010

to 2015. This will involve considerable

additional R&D investment by the ULCOS

partners and the European Commission.

If ULCOS II is successful, the technology

could potentially be rolled out some

15 to 20 years from now.

Steel is part of the solution

Through product innovation, we offer our

customers solutions to reducing greenhouse

gas emissions across the complete lifecycle

of the product. Additionally, when

our products reach the end of their useful

life they can be recycled without any loss

of quality, saving the CO2 emissions

associated with primary steel production.

Examples of how our products are part

of the solution to climate change are

provided in the sustainable solutions

section earlier in this report.

47


We are major employers in many of

the areas where we operate, and we are

actively involved in a broad range of

community initiatives. Our involvement

can take the form of financial support,

the provision of materials or the time,

skills and enthusiasm of our employees.

How do we support

our communities?

48


Corus Corporate Responsibility Report 2007/08

Communities

We recognise that our operations can

affect the communities and societies within

which we operate and we aim to play a

positive role. We promote and encourage

economic, environmental, social and

educational development where possible

and we support our employees’ involvement

in local initiatives.

Employment

At the end of March 2008, we directly

employed 41,900 people and many

thousands more indirectly through our

contractors and suppliers.

Economic development

We are active in stimulating regional

employment. For example, in the late

1990s we started to allocate around

100 hectares of our site in IJmuiden to

boost regional economic development and

several dozen small and medium sized

companies are now established in the

IJmond Business Park. We are active

members of a number of local working

groups, employers’ associations and

advisory boards. Amongst these bodies

is the Enterprising IJmond Federation, a

co-operative network set up to share the

economic interests of its local members.

Regeneration

Steel supply has often exceeded demand

over the past 25 years and this remains

the case in certain market sectors.

To remain competitive, established

companies in the steel industry, like

Corus, have had to become more

productive. This has resulted in the

rationalisation and closure of some

facilities. Where redundancies

or plant closures are unavoidable, we

work hard to minimise the impact on

our employees and the communities in

which we operate. We offer retraining,

help with finding alternative employment

and outplacement services.

Through UK Steel Enterprise, a wholly

owned subsidiary, we try to support the

economic regeneration of communities

affected by changes in the steel industry.

Since its establishment in 1975, UK Steel

Enterprise has invested almost £68m

(EUR92m) in new and expanding

businesses and £29m (EUR43m) in

managed workspaces. We have

supported over 4,440 small businesses

and helped create over 67,300 new jobs.

In addition the business has provided

over £5m (EUR7.7m) to assist numerous

community initiatives and organisations

assisting regeneration in steel areas.

Over the years, the business has been

able to attract additional external funding

for its clients of over £307m. The case

study on page 51 provides two examples

of how UK Steel Enterprise is supporting

regeneration in steel areas.

Right: We have helped local students to

transform their ideas about recycling onto

billboard posters at Corus Engineering Steels,

Rotherham.

Opposite: A participant enjoying one

of our Kids of Steel events.

49


Corus Corporate Responsibility Report 2007/08

Communities

Continued

Working in the community

Corus Strip Products UK, South Wales,

has joined forces with the Gwent Alcohol

Project and West Glamorgan Council

on Alcohol and Drugs Abuse, the

Community Union and key contractors

to face the drugs and alcohol misuse

challenge. This visionary initiative is

supported by the Minister for Social

Justice & Local Government in the Welsh

Assembly Government and aims to

address this significant challenge currently

faced in all parts of society. Corus has

employed three locally based drugs and

alcohol misuse counsellors, who divide

their time equally between working within

the Company and in the community.

Sponsorships and charitable donations

Many of our businesses have strong links

to their neighbouring towns and surrounding

regions. We support cultural, social,

educational and sporting activities that

contribute to the well-being of residents,

both in the immediate vicinity of our

plants and elsewhere.

Our IJmuiden site in the Netherlands fulfils

its ambition to become the best neighbour

to the surrounding communities through a

number of sponsorships in the areas of

art/culture and sport/recreation. Apart from

the long standing sponsorship of the world

renowned Corus chess tournament in

Wijk-aan-Zee, we also sponsor the Eredivisie

(premier division) football club AZ and the

local football club Stormvogels/ Telstar.

Corus Packaging Plus’ Safety Incentive

Scheme at Trostre establishes a link

between good health and safety

performance on site, with charitable

donations by the business to local causes

nominated by employees. In 2007, to

celebrate 12 months without an LTI,

a further £5,000 (£8,000 total) was

awarded to local organisations ranging

from amateur sporting groups to local

branches of national charities. To date

the scheme has donated over £35,000.

In 2007/08, over 20 organisations benefited

from the Community Awards of Corus Strip

Products UK, South Wales. These included

All Souls Church Community Youth Club,

the Lymphoma Cancer Unit, Morriston

Hospital, Neath and District Sea Cadets,

Swan Rescue Wales and the Victims of

Chernobyl Trust Fund.

Teesside Cast Products donated £10,000

as a founder member of the Corporate

Partnership scheme set-up by Nature’s

World, the Middlesbrough-based charity

that runs a 25-acre environmental park.

Below: Safety Representatives from Corus

Packaging Plus, Trostre, with children from

the Penllergaer Primary School LPD unit.

Below right: Through UK Steel Enterprise,

we have supported the expansion plans of

Heacham Ltd.

50


Corus Corporate Responsibility Report 2007/08

Corus Engineering Steels, Corus

Construction & Industrial, Teesside Cast

Products and Corus Tubes donated

several thousand pounds for the benefit

of local schools, hospitals and charities.

Beneficiaries of their donations included:

• Billingham Dance Festival (which brought

a Mexican dance troupe to Dormanstown)

• Adrenaline Alley (we contributed

towards a community skate park

programme in Corby)

• Corby Town and Hartlepool United

(through our sponsorship of the clubs’

youth policies)

• Grange Lane Junior School,

Scunthorpe (where we supported the

library refurbishment)

• Wingfield Comprehensive School,

Rotherham (which we assisted in

achieving Business and Enterprise

Specialist School status)

Supporting local education

In addition to monetary donations, we also

support the educational development of

the communities of which we are a part.

Our primary purpose is to encourage

interest in, and enthusiasm for, the study

of materials science and its application

in engineering, manufacturing and

technology-based industries.

In the Netherlands, we have established

an Adopt a School project. Schools are

invited to visit our IJmuiden plant, where

they receive materials, overalls and

toolboxes. We have also joined JetNet

(Jongeren en Techniek – Young People

and Technology), a government initiative

aimed at encouraging young people to

choose a career in technology.

In France, local school children have been

given the opportunity to form a Cadette

Industrie (Junior Company) for a year.

Pupils visit our plant at Corus Colors,

Myriad, to find out about our Company

and the roles of our employees.

In November 2007, Corus Construction

& Industrial kick-started the Royal Society

of Chemistry’s National Chemistry Week

when 100 chemistry A-level students

from John Leggott College in Scunthorpe

visited Scunthorpe steelworks. The biannual

event aims to promote a positive image

of chemistry and to enthuse the next

generation of chemists.

UK Steel Enterprise

One of the ways UK Steel Enterprise

supports economic regeneration is through

investing directly in small businesses.

Both cases below demonstrate our

commitment to job creation in and around

our steel communities.

Super Rod

This company, based in South Wales,

benefited in January 2007 from an

investment of £0.2m (EUR 0.27m) which

supported a management buy-in and

helped to safeguard 15 jobs and create a

further five. The company has a unique

cable routing product, which helps

electricians install cabling into existing

buildings in half the time of traditional

methods. The product won the title

“Best Product in the Last 50 Years”

at the prestigious Electrical Industry

Awards and has also recently won the

Queen’s Award for Innovation. The funding

from UK Steel Enterprise has also assisted

Super Rod to enhance their product

development and expand their marketing

and sales activities.

Heacham Limited

UK Steel Enterprise concluded its second

round of funding for Heacham Limited in

August 2007 to help with the company’s

expansion plans. Demand from the

growing international telecommunications

market has brought new business for the

company and as an existing shareholder

we were happy to help. The company

has been successful in creating new jobs

at its manufacturing site in the West

Midlands, and this currently includes

several former Corus employees as part

of the 26 strong workforce.

Below: We sponsor the Dutch Eredivisie

football club AZ and were the key supplier

of building material for their new stadium.

Below right: Corus supports the Special

Needs Activity Centre (SNAC) in Port Talbot.

51


Corus Corporate Responsibility Report 2007/08

Communities

Continued

We develop learning materials, provide

sponsorship and scholarships, award

prizes and grants, and utilise the imagery

and usage of steel to explain key

concepts and learning points. In 2007,

Corus Distribution & Building Systems

launched the very first European Kalzip

Student Award, inviting architecture and

engineering students to develop concepts

for the building envelope of the future

using metal materials. Of the166 entries,

the distinguished panel of judges awarded

first prise to Mergen Annick and Johannes

Mitterdorfer from the University of Innsbruck.

With such success, the 2009 award

scheme will be open to entries from across

the world.

Corus Distribution & Building Systems UK

and Ireland, based in the West Midlands,

supports the Young Enterprise Awards,

by taking part in the judging, hosting the

awards dinner and through the creation

of the Corus Award for the Most

Innovative Product.

Through a unique partnership between

the University of Wales, the Engineering

and Physical Sciences Research Council

and Corus, a successful Engineering

Doctorate Scheme gives leading graduates

the opportunity to gain experience in

technical and engineering disciplines

at Corus while pursuing doctorate

research studies.

In the UK, we sponsor teachers as well as

student prizes in material science subject

areas in association with various institutes

and universities.

Many of our sites have educational liaison

programmes. Corus employees and

Multiserv contractors at Teesside Cast

Products lent their support to Banksfield

School, Middlesbrough, to provide education

on good environmental practices. The visit

included a nature field trip to Coatham

Marsh Site of Special Scientific Interest,

which neighbours our steelworks.

We support

educational

programmes

in areas where

we operate.

Below: Metal Composer, the winning design

in the first European Kalzip Student Awards.

Below right: Corus Strip Products, IJmuiden,

sponsors a local vitality centre.

52


Corus Corporate Responsibility Report 2007/08

Our people in action

Our people are our ambassadors and

it is their individual and collective efforts

that continue to build and maintain our

reputation. They volunteer to assist in local

initiatives and we are grateful for their

continuing efforts, a few of which are

listed below:

• A group of 30 graduates, placement

students and young apprentices from

Corus Engineering Steels renovated

Gawber Community Hall in Barnsley.

The volunteers were given four days of

paid leave to complete the project and

a £500 donation from the business

towards the cost of materials. They also

raised a further £1,500 to donate to the

cause from sponsorships to complete

the Sheffield half Marathon.

• Volunteers from Corus Colors, Shotton,

joined other Flintshire businesses,

voluntary and community groups,

together with renowned environmentalist

David Bellamy in the Big Dee Day; an

initiative to clean up litter along a 30 mile

stretch of the River Dee in the UK.

• Employees at Corus Tubes, Hartlepool,

raised £10,000 for a local cancer research

charity in support of a colleague.

• Eight volunteers from Corus Engineering

Steels, Rotherham, developed a

sensory garden at Robert Ogden

School, Thurnscoe, to create an

enjoyable environment for pupils

with autistic spectrum disorder. The

business also donated outdoor seating

from the new Sheffield branch of the

Emmaus charity for their garden.

In recognition of our employees’ personal

contributions, a number of businesses

run Ambassador Award schemes that

offer employees up to £250 for a broad

range of community initiatives. In 2007:

• Patrick Holder, Production Planner

at Corus Engineering Steels,

Stocksbridge, received an award for

Oughtibridge Cricket Club to repair

the green after the 2007 floods.

• Victoria Evans, Environmental Engineer

at Corus Construction & Industrial,

Scunthorpe, received an award for

Worlaby County Primary School to

help secure outdoor play equipment.

• Stephen Craig, Furnace Operator

at Corus Construction & Industrial,

received an award for the Deaf Child

Youth Project to help towards the cost

of activities and transport for children

across the Tees Valley area.

Triathlon sponsorship

Corus Kids of Steel is a UK wide initiative

to bring Corus’ sponsorship of triathlon

to the communities in which we operate.

More details on our sponsorship of the

British Triathlon are provided at the end

of this report. Corus Kids of Steel is a

series of events designed to give children

the chance to have a go at a triathlon

in a safe, fun and non-competitive

environment whilst encouraging activity

and learning about healthy lifestyles.

Corus employees have been getting

involved in the series by volunteering for

events, getting local schools involved and

helping to set up local children’s triathlon

clubs where they don’t exist already.

Over 5,000 children have taken part in

the series, with this number set to grow.

In 2007, Teesside Cast Products brought

the event to Eston Sports Academy,

Teesside. The event encouraged local

children to become active in sport and

matched them with local running,

swimming and cycling clubs. Planning

on a repeat of the event in 2008 has

already started.

Below: Corus Big Dee Day.

(Photograph courtesy of Trinity Mirror Group)

Below right: Corus Kids of Steel.

53


How do we safeguard

our business?

Business ethics are integral to the

way we operate. We are strengthening

our compliance culture and further

embedding our business principles

in everything we do.

54


Corus Corporate Responsibility Report 2007/08

Business ethics

The framework for our business

principles

1 General conduct

Business decisions should be made

objectively, based on facts, and free from

any bias or conflict of interest.

2 Compliance with legal and

financial regulations

Corus expects its managers and

employees to comply with all applicable

government laws, rules and regulations in

each jurisdiction in which it does business.

3 Protection of company property

Employees are expected to respect and

protect Corus’ property from damage,

theft and misuse.

4 Responsible trading practices

Corus will not tolerate unlawful or unethical

business practices.

5 Proactive employment practices

Corus will communicate in a clear,

consistent and timely manner with all

its stakeholders.

6 Good employment practices

Every manager is responsible for creating a

work environment in which employees are

safe, feel valued and are able to contribute.

7 Concern for the environment

Corus will adopt sustainable practices

and continuously improve its environmental

performance.

A framework for business integrity

Integrity and honesty are at the heart of our

business dealings. We are constructing

an improved framework for the conduct

of our business generally and the

strengthening of our business integrity

processes in particular.

We do not tolerate corrupt or fraudulent

practices and expect transparency,

integrity and honesty in all aspects of our

business, from our employees, contractors

and other business counterparts. The tone

is set through the commitment made by our

most senior management and is integrated

into the induction of new employees.

Code of Conduct and Anti-Fraud

Programme

Our work on producing a new Company

wide Code of Ethics for Corus in 2007

was refocused following the acquisition

of Corus by Tata Steel UK Ltd. We are

now, in partnership with our new parent

company, supporting the development

of, and implementation plans for the

roll-out of a new Tata Steel Group Code

of Conduct.

Below: We work with our customers so that

together we understand the environmental

effects of our products.

Below right: We encourage our suppliers and

contractors to operate to the same standards

as ourselves.

Opposite: Corus Bi-Steel blast resistant

protection outside the Houses of Parliament.

55


Corus Corporate Responsibility Report 2007/08

Business ethics

Continued

We have also updated our Anti Fraud

and Prevention of Corruption policies and

worked on developing on-line training

modules, customised to the practical

needs of our businesses, in support of

communication. Integration of our Anti-

Fraud and Prevention of Corruption policies

with the values and principles of our new

Code is key to the foundation of our

business principles and we plan to align

communication to the new Tata Steel

Group Code of Conduct 2008 as soon

as it is finalised.

Competition Compliance programme

Corus’ first competition compliance

programme was launched in 2005 and

was fully implemented in 2006. During

2007/08, we continued to ensure induction

of all new employees and those who

moved post to areas where this training

was relevant to the fundamentals of the

programme, and also worked to create

new refresher competition compliance

programmes for roll-out to employees in

2008/09. Our development work included

updating all of our policy documents and

on-line training programmes.

The on-line training programmes are

updated versions of the original competition

compliance programme and will continue

to be made available in the major European

languages: English, Dutch, French and

German. Each programme contains real

business situations in practical case

studies to ensure that they are truly

meaningful for individuals and for the

Company’s operations as a whole.

In 2008/09, two new, shorter on-line

training programmes will be made

available to Corus employees; “General

Competition Compliance” and “Audit and

Refresher”, and participants will have a

choice of which programme to undertake.

Participants are required to complete a

certification page as a measure of

compliance and to ensure that they have

understood the importance of competition

compliance.

Our on-line programme is simple to use,

effective and with the ability to reach a

diverse employee base. It allows monitoring

of compliance awareness and knowledge,

and is an effective instrument in auditing

the overall programme.

Seminars and workshops on competition

compliance continue to be offered to all

our businesses, as a support and follow

up to the overall programme and on-line

training. In addition, throughout 2007 we

continued to provide training sessions

within Corus to personnel who may

have responsibility for dealing with

regulatory investigations. This training

included “mock” exercises.

56


Corus Corporate Responsibility Report 2007/08

Export compliance programme

In 2007, we reviewed and strengthened

our export compliance policy and

guidance. We developed an intranet

based resource centre and relevant

training. We also began development of

an on-line training package customised

to our Company’s particular needs, to

support our network of export control

co-ordinators and their teams within

our businesses.

Suppliers and contractors

We encourage our suppliers and contractors

to operate to the same standards as Corus.

Whistleblowing system.

Corus wants to hear employee concerns

(including issues relating to contractors)

and we are committed to addressing

them fairly, properly and with integrity.

Therefore our confidential reporting line

(whistleblowing) still continues to be

used as an effective tool for employees

to report any concerns.

We continue to raise employee

awareness of the whistleblowing line

through publications in internal magazines

and on our intranet. New initiatives

planned for this year include launching

a question & answer document on the

whistleblowing line, issuing every Corus

employee with a personalised wallet card

giving details of our confidential reporting

line and a poster communication for

raising awareness at all Corus sites.

We have further advanced the confidential

reporting line this year by introducing a

confidential web-based reporting system

where employees can report concerns

in confidence by email. Like the phone

system, using the email service is extremely

easy and anonymity is guaranteed.

Employees do not need to leave their

name and emails cannot be traced.

Whistleblowing matters continue to be

investigated by the Asset Protection units

or Internal Audit. Matters are reported

quarterly at our cross functional asset

protection meetings, to the Corus

Executive Committee and to our Board

Audit Committee. All matters reported

are reviewed to ensure we adopt key

lessons and recommendations arising

from any incidents.

Political activities and contributions

We do not contribute to political parties or

funds, nor do we take part in party politics.

Risk management

We take an integrated approach to the

management of the diverse risks which

might affect our business. Potential risks

are identified through techniques such

as auditing, near-miss reporting and risk

assessments. The process of minimising

and managing risks is built into our

management and reporting systems.

Our internal audit programme, our policies

and our standards provide a framework for

a healthy compliance culture.

Assurance

Internal assurance is achieved through

an audit process aimed at strengthening

our controls and ensuring the completeness

and accuracy of information. External

assurance is obtained through our financial

auditors, through accredited certifiers in

relation to standards such as ISO 9001

and ISO 14001 and through the

validation of this report by Enviros

Consulting Limited.

Integrity and

honesty are

at the heart of

our business

dealings.

Left: We want to hear our employees’ concerns.

Right: Every manager is responsible

for creating a safe work environment.

57


Corus Corporate Responsibility Report 2007/08

Progress against targets

Category

People

Health and safety

Target

Further substantially improve employee LTIF in 2007 compared to 2006.

Substantially improve combined employee and contractor LTIF in 2007 compared to 2006 .

Substantially improve sickness absence rate in 2007 compared to 2006.

Category

People

Valuing our workforce

Target

2012 Vision Target to become an employer of choice, by achieving a position in the top quartile of all industries

by 2012.

Category

Environment

Target

2012 Vision Target to reduce CO2 emissions to


Corus Corporate Responsibility Report 2007/08

Status

Achieved

Comments

Our employee LTIF improved to 1.8 in 2007/08 (compared to 2.5

in 2006 and 2.9 in 2005).

Forward action

2012 Vision Target: To reduce LTIF to 0.4 compared

to 1.8 in 2007/08.

Achieved Our combined employee and contractor LTIF improved to 2.0

in 2007/08 (compared to 2.8 in 2006 and 3.4 in 2005).

Not Achieved Our sickness absence rate did not significantly improve in 2007/08.

In response we have developed a Company-wide strategy on

improving health within our workforce.


Future target: To achieve a 25% year-on-year

reduction in potential occupational health exposures.

Future target: To achieve a reduction in sickness

absence related to ergonomic and mental health

related disorders.

Status


Comments


Forward action

New target

Status


Comments


Forward action

New target



New target

Not Achieved

On target

Not Achieved

Our level of compliance deteriorated to 98.6% in 2007 and 98.2% for

the 12 months ending March 2008 (compared to 99.0% in 2006). This is

largely attributable, not to an increase in emissions, but to the stringency

of new emission limits in the revised permit for one of our European sites.

In the UK we achieved our 2006 Climate Change Agreement

milestone target to reduce energy and we are on target to achieve the

targets for 2008 and 2010. In the Netherlands we currently outperform

the best international standard in energy use.

Despite a 22% improvement in 2007 compared to 2006, our

production waste to landfill was 15% higher than 2005 levels.

New target: To improve to at least 2006 levels

of compliance during 2008/09.

Target carried forward

New target: To establish a multi-disciplinary task team

in 2007/08 to identify opportunities for reducing BOS

plant waste to landfill and to define a clear and

challenging reduction target for 2009/10.

On target

56% of steel packaging in the UK was recycled in 2007. Target carried forward

Status

Refocused

Comments

Following the acquisition of the company by Tata Steel UK Ltd in 2007,

a new operating model has changed the requirements of this target.

Forward action

New target: To deliver a Tata Steel Group Code

of Ethics in 2008/09.

59


Corus Corporate Responsibility Report 2007/08

Validation

statement

Enviros has conducted an independent

validation of the 2007/2008 Corus

Corporate Responsibility (CR) Report to

provide assurance on the completeness,

transparency and accuracy of the

report, and to review systems for data

collection. The validation process

involved interviews with staff responsible

for data collection and reporting at both

the central corporate level and from a

selection of representative sites.

Opinion

It is acknowledged that the change in

ownership at the beginning of 2007, and

shift to an April to March reporting year

(this report covers a 15 month period), has

constrained progress towards some of the

CR targets and the recommendations made

by Enviros last year. For example those

relating to CR stakeholder engagement, and

identification of additional material issues

in respect of employees, communities and

performance under a strengthened code

of ethics. Despite this, we are encouraged

by Corus’ commitment to identify key CR

material issues and to the Tata Steel Group’s

vision to be the world steel benchmark for

both value creation and corporate citizenship

by 2012. This vision is attainable through

planning already in place for the monitoring

of new targets, increased employee

engagement and the development of a

combined code of ethics with the Tata

Steel Group for 2008/09.

This first CR report to address directly

Corus’ response to climate change is

welcomed. Underpinning Corus’ dedicated

climate change vision is clear information

on impacts and challenging targets to

be met through technical, employee and

communication programmes.

This CR report is rich in reported data and

specific examples, and the care taken to

build up long term trends by reporting

comparable data is applauded. We note

that the 15 month reporting period has

however caused difficulties in data

collation and led to environmental data

being presented in estimated as well as

absolute terms.

We consider that the text and data in

the report represent an accurate and

materially complete account of Corus’ CR

performance during the reported period.

Recommendations for future reports

We recommend that Corus develops

internal guidelines which clearly set out

the methodology and responsibilities for

the collation of all community, employee

and social aspects to be reported.

Corus may also benefit from undertaking

a review of the current internal guidelines

for the reporting of environment and

health and safety data following the change

in the reporting period.

Further support and attention to data

collation from the smaller sites is needed,

particularly from those low impact sites, to

ensure data accuracy and transparency.

Consideration should be given to

presenting the baselines for emissions

data as absolute data values against

which the reader can clearly understand

performance against baseline data and

which will remove any effects of changes

to the portfolio of company sites.

During 2008/09 it will be important for Corus

to closely monitor the evolving scope

and direction of its reporting process,

following the change in ownership and

the new Tata Steel Group CR vision and

targets. Further stakeholder engagement,

including continued engagement with

Tata Steel, could help in the development

of appropriate future improvement targets

and material issues covering environmental,

health and safety and social aspects.

Peter J Young

Strategy Director

60


Corus is the premier sponsor of British

Triathlon. Triathlon is a young but rapidly

growing sport and the sponsorship

will invest in medal winning success

at major worldwide events and will

help address the competition needs

of emerging elite triathletes.

At a grassroots level, Corus is supporting

a number of community-based initiatives,

including a nationwide programme to

develop triathlon for school age children

through Corus Kids of Steel. 12 events

will take place throughout the UK during

the summer, encouraging children

to be active and giving them the

opportunity to experience and access

an Olympic sport.

The sponsorship includes a series of

televised elite events – known as the

Corus Elite Series. This series will

provide triathletes with an opportunity

to compete against some of the

world’s best competitors and will help

raise the profile of triathlon.

Corus sees triathlon as an opportunity

to demonstrate its commitment to

the health, safety and well-being of its

employees and their local communities

by getting involved in sport and

encouraging participation in triathlon.

www.corustriathlon.com

Corus’ sponsorship will go towards

helping all aspects of the sport, with

the aim of developing strong future

athletes at all levels including children,

disabled and elite.

British Triathlon

sponsorship


Corus Corporate Responsibility Report 2007/08

Glossary

AHSS

Advanced High Strength Steels, a family

of steels produced by Corus and used

in automotive solutions

Environmental A declaration provided with a product

Product Declaration including information such as the

product’s LCI

AluPlusSolar

BOS

An integrated roofing sheet incorporating

PV technology developed by Kalzip

Basic oxygen steelmaking

EU

Eurofer

European Union

Confederation of European Iron and Steel

Industries

Benzene, toluene,

By-products from cokemaking

Ferrous chloride

Residual material from the steel

xylene and tar

solution

acid-pickling process

BF

Blast furnace

Fluorides

Fluorine-containing compounds

BRE

UK Building Research Establishment

GPD

Group Policy Document

BREEAM

Carbon offsetting

CI

BRE’s Environmental Assessment

Methodology for rating the environmental

performance of buildings

The process of investing elsewhere in

initiatives that either reduce emissions

of greenhouse gases or sequester

atmospheric carbon, thereby

compensating for one’s own emissions

Continuous improvement

Greenhouse

gases

Heavy metals

IOSH

IISI

INCA

Gases which contribute to global

warming, such as CO2

Metals such as cadmium, copper,

mercury, nickel, chromium, lead and zinc

Institute of Occupational Safety and Health

International Iron and Steel Institute

Industry and Nature Conservation

Association

CO

CO2

Carbon monoxide

Carbon dioxide, a gas released in

combustion and other industrial

processes, which contributes to

the enhanced greenhouse effect

ISO 14001

ISO 9001

Kalzip

International environmental management

system standard

International quality management system

standard

Corus’ specialist aluminium roofing business

Construction

An association of manufacturers of

Key performance

Parameters which are important

Products

construction materials and products

indicators

indicators of how well we perform

Association

Corus Steel

Packaging

Recycling

in the UK

A Corus department dedicated to

promoting recycling of steel packaging

in the UK

LCA

Life-cycle assessment, a method of

identifying the environmental impact

of a product. The whole life-cycle of

a product is considered

CR

Corporate responsibility

LCI

Life-cycle inventory, a part of LCA

Dioxins

Dross

A group of organic compounds formed in

industrial and combustion processes

Secondary products from galvanising and

other metal coating processes

LTI

LTIF

NMVOCs

Lost time injury

Lost time injury frequency, the number of

lost time incidents per million hours worked

VOCs excluding methane

EAF

EMS

Electric arc furnace

Environmental management system

NOx

Oxides of nitrogen, compounds that

contribute to acidification

Energy intensity

In this report, the amount of energy

consumed in order to produce a unit

of production output

NO2

OHSAS 18001

Nitrogen dioxide, one of the oxides

of nitrogen

International occupational health and

safety management system standard

61


Corus Corporate Responsibility Report 2007/08

ONCs and HNCs

PAHs

Pelamis

PFCs

Photovoltaics

PM10

Product

stewardship

PV

RD&T

REACH

Recordable case

Recordable case

frequency

Responsible

procurement

Sickness absence

rate

Slags

SO2

SSSI

ULCOS

VOCs

Vocational qualifications in the UK

Polycyclic aromatic hydrocarbons,

a collective term for tar-like compounds

An innovative technology generating

electricity from wave power

Perfluorocarbons, a family

of greenhouse gases

The technology used to generate

electricity from solar energy

Particulate matter less than 10 microns

in diameter

The process of taking responsibility for the

impact a product has; for example, on the

environment, after it has left the factory gate

An abbreviation for photovoltaics

Corus Research, Development and

Technology

New European Union policy on

chemical substances

A fatality, days away from work case,

restricted workday case or medical

treatment case

The number of recordable cases per

million hours worked

The process of taking responsibility

for the sustainability of a supply chain

The number of hours lost as a result of

sickness or injury, reported as the number

of hours sickness absence as a % of the

number of hours scheduled to be worked

Secondary products from ironmaking and

steelmaking

Sulphur dioxide, a compound that

contributes to acidification

Site of special scientific interest

Ultra-low CO2 steelmaking

Volatile organic compounds, such

as solvents

GRI (Global Reporting Initiative)

performance indicators

This report includes data for performance indicators

in line with the GRI core elements for the mining

and metals sectors where available and appropriate.

A full checklist against the GRI core elements are

available on our website (www.corusgroup.com).

What do you think?

This report has been designed to meet the

anticipated needs of our stakeholders and we

encourage feedback on the report, including

suggestions on where and how we can make

improvements. Please contact us by email at

feedback@corusgroup.com

WRAP Waste & Resources Action Programme –

a UK Government-sponsored organisation

seeking to promote resource efficiency

62


www.corusgroup.com

Care has been taken to ensure that information

is accurate, but Tata Steel UK Limited, and its

subsidiaries, does not accept responsibility or

liability for errors or information which is found

to be misleading.

Copyright 2008

Corus

CarbonNeutral is a registered trademark of

The CarbonNeutral Company.

This publication was printed by a Corus

approved supplier that complies with ISO 9001,

ISO 14001 and OHSAS 18001 accreditation.

Paper used is Regency Satin, which is

manufactured from ECF (Elemental Chlorine Free)

pulp sourced from certified or well managed

forests and plantations. Inks used

are vegetable based.

Designed and produced by Radley Yeldar.

www.ry.com

Corus

30 Millbank

London

SW1P 4WY

United Kingdom

T +44 (0) 20 7717 4444

T +44 (0) 20 7717 4455

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