Corporate responsibility report 2005 - Tata Steel

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Corporate responsibility report 2005 - Tata Steel

2005

Corporate responsibility report

Striving to make a difference

Value in steel


How are

we doing?

We take corporate responsibility seriously.

Our results are improving, but we recognise

that we still have further work to do.

Our objective is world-class performance.

Contents

1 Our performance in summary

2 Message from the Chief Executive

3 How do we manage corporate responsibility?

5 What does sustainable development mean

for us?

6 Sustainable solutions

Construction

Automotive

Packaging

Consumer products

12 How do we care for our people?

Health and safety

Valuing our workforce

20 How do we protect the environment?

Environment

30 How do we support our communities?

Communities

34 How do we safeguard our business?

Business ethics

38 Progress against targets

40 Validation statement

41 Glossary

Company profile

Corus is an international company that manufactures,

processes and distributes steel and aluminium products

and provides related services in design, technology

and consultancy.

The Group has manufacturing operations in many countries.

It has major plants in the UK, the Netherlands, Germany,

France, Canada, the USA, Norway and Belgium, as well as

sales offices and service centres all over the world. It serves

the construction, automotive, packaging, mechanical

engineering, metal goods and electrical engineering

sectors. With a clear focus on carbon steel, Corus

aims to deliver value to its stakeholders.

Corus is organised into four divisions (Strip Products,

Long Products, Distribution & Building Systems and

Aluminium*) and, at the end of 2005, employed 47,300

people. Turnover in 2005 was £10,140m (EUR14,796m)

and Group operating profit was £680m (EUR992m).

Further information is available at www.corusgroup.com

*On 16 March 2006, Corus announced that it had signed a letter of intent

with Aleris International Inc. for the proposed sale of its Aluminium rolled

products and extrusions businesses.

Feedback

If you have any comments on what we have done so far

or on how we can further improve, then please email us at

feedback@corusgroup.com


Our performance

in summary

What have we achieved?

• We have improved our health and safety performance –

our lost time injuries reduced by 24% in 2005.

• The high profile recognition of the importance of health

and safety was maintained in 2005 – 156 Executive

Committee safety tours were carried out.

• We developed and launched a further three mandatory

health and safety standards during 2005.

• 86% of our manufacturing operations have now been

certified to ISO 14001.

• Our compliance with emission limits improved during the

year to just under 99%.

Where do we need to improve?

• Despite the overall improvement in our health and safety

performance, we still had two fatalities in 2005 – our focus

on improving health and safety will continue in 2006.

• We will continue to improve our energy efficiency and

reduce our greenhouse gas emissions.

• We aim to further improve our level of compliance with

increasingly stringent emission limits and to further reduce

our production waste to landfill – we have set revised

improvement targets in these areas.

• We have a strong, established, compliance culture. This

year we will further embed our ethical business principles

with the delivery of a strengthened Code of Ethics.

• We are continuing to play a leading role in a major

European project to investigate and develop breakthrough

technologies for ultra-low CO 2

steelmaking.

• Our waste to landfill, excluding exceptional items, was

11.5% lower in 2005 compared to 2003.

• Life-cycle inventory environmental data is now available for

88% of our products.

Corus Corporate Responsibility Report 2005 1


Message from the

Chief Executive

We believe in the importance of meeting our

corporate responsibilities. We are developing

The Corus Way within a safe and sustainable

environment.

I have pleasure in presenting our second corporate

responsibility report, where in addition to health, safety,

environmental and social issues, we have extended reporting

on the ethical aspects of our business. Our Restoring

Success programme, launched in 2003, will be completed

by the end of 2006. Corus today is more robust as a result

of this programme and through The Corus Way we will

look to build on this positive momentum.

The Corus Way defines our longer term ambitions. We will

deliver value in steel, by further increasing our mix of

differentiated products, embedding a culture of continuous

improvements in all our processes and pursuing selective

growth opportunities. A Group-wide continuous improvement

programme, based on the principles of lean thinking, has

already been launched and 250 coaches have undergone

training to engage our employees in moving towards even

higher standards of performance. This involved, committed,

workforce of passionate people will deliver The Corus Way

in a safe and sustainable environment. Our commitment to

corporate responsibility is therefore an integral part of the

way we run our business.

During 2005, we have seen a further 24% reduction in the

frequency of lost time injuries and we have implemented a

Group-wide safety awareness programme. All members of

the Executive Committee, including myself, have personally

conducted health and safety tours – 156 were completed

in 2005. This emphasises the leadership and widespread

recognition of the importance of health and safety across the

Group. Regrettably, the year also brought two fatal accidents

to Corus employees. Safety therefore remains our first priority.

Within our production processes, we have continued to

improve our environmental performance, with 86% of our

sites now certified to ISO 14001. By the end of 2005, we

had achieved just under 99% compliance with our emission

limits. We are also reducing our greenhouse gas emissions

by improving our energy efficiency and by participating

in the EU Emissions Trading Scheme. In addition, we are

a significant partner in ULCOS (ultra-low CO 2

steelmaking),

a EUR44m (£30m) research project to investigate

technologies to substantially reduce CO 2

emissions from

the steelmaking process.

Our products have inherent environmental advantages,

as they are both durable and recyclable. In support of

The Corus Way, we are continuing to invest in our business

and to further develop our products, including, for example,

a £153m (EUR223m) investment at IJmuiden to expand the

Group’s product range for the construction and automotive

markets, including advanced high strength steels.

Our performance is underpinned by strong ethical standards

and conduct. A new competition compliance programme

has enhanced the integrity and consistency of our business

practices and we will look to build on this successful

approach. During 2006, we will also deliver a strengthened

Code of Ethics.

We have made good progress against the improvement

targets we set last year and as part of our drive for continuous

improvement have developed some challenging, new and

revised targets. Together with the Group’s Board and Executive

Committee, I am committed to ensuring their delivery.

2 Corus Corporate Responsibility Report 2005

Philippe Varin


How do we manage

corporate responsibility?

Corporate responsibility is integral

to the way we do business.

We take our corporate responsibilities seriously.

Sound governance and effective management

systems ensure that we deliver on our promises.

Below we outline some key principles which underpin

our business approach.

Accountability

Our Board provides overall direction for corporate

responsibility. Our Executive Committee, chaired by the

Chief Executive, sets health, safety, social and environmental

policies and standards for the Group. It also monitors

their implementation in each of our business units. Four

independent non-executive directors sit on a Board-level

Health, Safety and Environment Committee which reviews

operational performance, anticipates potential future issues

and provides support in setting direction and considering

strategic options for improvement. Further review of our

business safeguards is carried out by our Board Audit

Committee, which also comprises four independent

non-executive directors.

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

business to develop a positive attitude to safety, health and

the environment amongst 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.

Stakeholder engagement

As a large-scale, international business, we maintain active

dialogues with our main stakeholders – customers and

suppliers, investors, shareholders, employees, trade unions,

local communities and the general public. We engage with

each of these in a variety of ways. Many examples of this can

be found throughout this report.

Each of our divisions is responsible for implementing Corus’

health, safety, social, ethical and environmental policies. They

are charged with the responsibility of putting systems in place

that identify, assess, monitor and control hazards and

minimise all relevant risks. In addition, functional health,

safety, environmental and human resources teams provide

a co-ordinated and effective specialist advisory service,

supporting the Executive Committee divisions and business

units in meeting their responsibilities.

Corus Corporate Responsibility Report 2005 3


How do we manage corporate responsibility?

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, in the main, certified

in accordance with international quality, environmental and,

increasingly, health and safety, management standards.

Management and measurement

As we would for any critical business activity, 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 Group 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 which contribute positively to society and

improve the quality of life for our employees and the

communities in which we operate.

Our organisational structure

Board*

Executive Committee

Divisions

Business Units

Corporate Functions**

*Including Board Health, Safety and Environment; Audit; Remuneration;

and Nominations Committees.

**Including health and safety, environment, internal audit, human

resources and technology/RD&T.

4 Corus Corporate Responsibility Report 2005


What does sustainable

development mean for us?

We aim to balance the needs of our

stakeholders by incorporating sustainable

development principles into all aspects

of our business.

Making a positive contribution

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 both steel and aluminium equip

them for a wide range of applications. Steel’s excellent

mechanical properties, combined with its high strength,

contribute to improved safety performance. Aluminium offers

lightweight solutions to design problems, allowing for

products that use less raw material and energy.

Recycling is sometimes promoted by new product ‘minimum

recycled content’ criteria; the intention being to boost the

market for recycled materials. However, economic incentives

to recycle already exist for steel and aluminium and high

recycling rates are already achieved.

The steel and aluminium in use today will be reused and

recycled many times in the future. Around 40% of the world’s

production of ‘new’ steel is, in fact, made from recycled steel

without any loss of quality.

Sustainable solutions

Examples of how our products contribute to sustainable

development through improved quality of life and reduced

environmental impact are detailed in the following sections.

Our products are durable, adaptable, reusable and

recyclable. They are essential to modern life – 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.

Corus Corporate Responsibility Report 2005 5


Sustainable solutions

Construction

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.

Why steel is good for construction

Steel buildings are more adaptable than those made using

other materials. Steel’s strength provides large open floor

areas, giving flexibility of use throughout the building’s life.

Steel buildings are adaptable too, since they can be easily

extended, unbolted and reconnected, modified, repaired,

reused or recycled as necessary.

The environmental advantages of using steel in

construction are:

• 100% recyclability.

• Minimum use of materials.

• Minimum waste – both on-site and in the fabrication shop.

• Ability to fabricate off-site in a controlled environment.

• Adaptability and flexibility over the lifetime of a building.

• Effective end-of-life options such as refurbishment,

dismantling and reuse or recycling.

For the communities surrounding a construction site, steel

also offers:

Sustainable construction

Steel construction is inherently sustainable. Steel’s

environmental advantages are demonstrated in all forms

of construction, from traditional steel framed buildings used

for multi-storey offices or flats, to more recent developments

with modular systems developed by Corus Living Solutions.

With steel, sustainable construction is a reality with a proven

track record. For example, over 90% of all steel used in any

construction project is reused or recycled at the end of the

building’s useful life.

Recycling in practice

Corus Colors has completed a study of the recycling of

insulated panels, because although steel is inherently

recyclable, it can be used in applications that make it

less readily recyclable. The study highlighted opportunities

for the development of alternative insulation materials that

could combine with steel to make building components

easier to recycle. This ties in with a WRAP (Waste &

Resources Action Programme) sponsored project on the

use of recycled cellulose (newsprint) as an industrial

insulation material, which was completed last year.

• Off-site fabrication and pre-fabrication, which reduces site

construction time.

• Clean and dust-free fabrication and erection.

• Minimised disturbance from construction activities.

6 Corus Corporate Responsibility Report 2005


Sustainable solutions

Sustainability in action

The old Lackenby open hearth steelmaking

building at Teesside, which was built in 1953,

was demolished in 2004. Following demolition,

100% of the scrap was recovered for making

new steel products. The building contained

over 20,000 tonnes of structural steel and

cladding, which was then recycled at a rate

of about 1,000 tonnes each week over a

five-month period. In order to show how old

steel is recycled into new products and into

higher quality applications, the steel made

during this period was tracked through to end

use. The recycled steel has gone into many

applications. Specific products that were

made using the recycled steel include:

• Structural sections used in the construction of

Heathrow Terminal 5.

• Galvanised strip steel used to make light

steel framed houses.

• Strip steel, supplied to the Royal Mint to

make copper-plated 1p and 2p coins.

• Automotive parts for major car companies,

including body parts for the SAAB-93

Convertible and the new Ford Transit.

The recycling of steel from the Lackenby

building alone has saved enough energy to

supply over 3,700 households with their energy

requirements for one year.

Green on the outside

Kalzip ® Nature Roof, our aluminium roof system, provides

a safe and solid basis for landscaped roofs and garden

roof features. It looks good, provides habitats for insects

and birds, improves thermal and acoustic performance,

consumes CO 2

, reduces rainwater run-off and is recyclable.

We also offer energy-generating photovoltaic systems that

are fully compatible with Kalzip.

Informing construction decision-makers

We have launched a website to enable architects, engineers

and other specifiers to understand the benefits of using steel

in construction (www.sustainablesteelconstruction.com).

Reduced risk of on-site accidents and reduced

life-cycle environmental impact

Colorcoat HPS200 ® , a pre-finished steel product for roof

and wall cladding, reduces the risk of fall-related accidents

as it is maintenance free and eliminates the need for annual

inspections or regular maintenance. Furthermore, with

its unique paint formulation for corrosion resistance and

its 30-year Confidex ® guarantee, Colorcoat HPS200 has

superior durability compared to other pre-finished steels.

This minimises its environmental impact and reduces building

life-cycle costs. The environmental profile of Colorcoat

HPS200 has been published in an Environmental Product

Declaration (EPD), available at www.colorcoat-online.com.

Life-cycle assessment

Corus RD&T has developed a life-cycle assessment tool

that can help design sustainable buildings. The tool, known

as CLEAR, helps designers and decision-makers such as

architects to evaluate and minimise the environmental

impacts of buildings, from manufacture and construction to

use and demolition. A key feature of the tool is the facility

to compare options for a building’s design and materials.

Since a substantial proportion of CO 2

emissions in the UK

arise from the construction, maintenance and occupancy

of buildings, there is a clear need for such tools.

Corus Corporate Responsibility Report 2005 7


Sustainable solutions

Automotive

Our products help our customers build safer,

fuel efficient and more environmentally friendly cars.

In the global automotive industry, we are using our

technology leadership to help address key environmental

challenges such as cost-effective lightweighting for reduced

CO 2

emissions, passenger/pedestrian safety and the

EU End of Life Vehicles Directive (ELVD). We are also

collaborating with our customers at the implementation

level, to improve environmental performance with a longer

term, sustainable, approach.

Investing in advanced high strength

steel technology

In November 2005, we announced the investment of £153m

(EUR223m) at Corus Strip Products, IJmuiden, to further

expand and enhance the Group’s product range and

capabilities including the development of advanced high

strength steels for use in lightweight automotive applications.

Stronger, safer, affordable

By combining engineering and materials science know-how

with manufacturing innovations, we are helping the

automotive industry build cars that are not only safer for

drivers, passengers and pedestrians, but which are also

more affordable, fuel efficient and environmentally friendly.

One example is a new technique that has been developed

by our automotive engineers in conjunction with Corus RD&T,

to optimise the crash behaviour of cars built from Corus’

advanced high strength steels. Our ‘Forming to Crash’

technique pre-calculates the additional strength induced into

body panels during metal-forming operations and then feeds

the new, stronger behaviour of the formed metal part

back into a car’s design to assess its influence on crash

performance. As well as improving performance of the

finished car, this approach is helping car makers to minimise

the structural weight and cost of their products.

Another example is the ELVD recycling requirements that

come into force in January 2007. We have been working

closely with car makers, putting the case for using more of

the world’s most recyclable engineering material – steel –

to help them meet their ELVD challenge.

Recyclability

When it comes to car components, sustainability involves

finding more cost-effective ways to use recyclable metals

rather than plastics. A recent vehicle engineering study by

Corus on designs for a clutch pedal in aluminium, plastic

and steel demonstrates that recyclability does not have

to have an adverse effect on cost or performance (see table

on opposite page). Car makers will increasingly need this type

of support from materials suppliers as the ELVD legislation

bites and designers strive to meet 95% recyclability and

takeback requirements in 2015.

Where aluminium is the preferred material, Corus Aluminium

Rolled Products at Duffel, Belgium, has developed new

materials such as Ecolite. As well as being strong and

lightweight, Ecolite uses the same alloy as other panels on a

car – enabling it to be recycled more effectively and efficiently.

8 Corus Corporate Responsibility Report 2005


Sustainable solutions

Clutch pedal design – inter-material comparison

Design Advantages Disadvantages

Aluminium alloy casting Recyclable, low weight, robust, High cost.

good for complex shapes.

Plastic injection moulding Low weight, good for Poor recyclability, high cost, low

complex shapes.

stiffness, not robust.

Steel fabrication Recyclable, low cost, High weight.

strong, robust.

Steel pressing Recyclable, low cost, Not suited to complex shapes.

low weight, strong, robust.

Improving passenger and pedestrian safety

A further example of how we are helping automotive

sustainability is in the field of hydroforming. When Metalbages

(an automotive component manufacturer in Pamplona,

Spain) asked for simpler crash load-bearing parts, we

suggested making them from a Corus hydroformed tubular

blank. Instead of the conventional fabrication of such

components from 18 pieces, the Metalbages part will

be made from Corus material formed to final shape in

a single part, and then cut in two. This not only saves on

manufacturing and labour costs, but also reduces both

energy consumption and manufacturing waste.

We have also developed products that will help the highways

infrastructure industry meet new EN1317 European legislation

to improve containment and protection of car occupants in

the event of a crash, including roadside and bridge parapet

safety barriers.

Ending a sticky problem

Corus Colors, Firsteel, in Walsall, West Midlands, has

developed a unique hexavalent chromium-free adhesivecoated

metal, Envirobond. This can replace hexavalent

chromium-based adhesives in a wide range of automotive

applications, enabling car makers both to avoid using this

harmful material and to meet the requirements of the ELVD.

Envirobond will offer an alternative to manufacturers of

components that require pre-applied reactivatable adhesives,

such as weather strips used in, for example, door linings,

sunroofs, bonnets, boots and interior trim.

Components for greener engines

The increasingly stringent demands of Euro 4 and Euro 5

emissions regulations can only be met with the latest high

pressure diesel injection systems. The extreme pressures

and temperatures developed within these systems (2000

bar and 350°C respectively) put pipe, pump and injector

components under huge stress. In response, Corus

Engineering Steels has developed specialist alloys for use

in these latest generation systems – steels that have the

exceptional cleanness needed for accurate machinability,

whilst also giving them great inherent strength and durability.

Greener materials for component makers

Transmission system manufacturers want to improve

process efficiency and remove unnecessary processing.

Corus Engineering Steels is helping by developing new

grades of steel that enable carburising to be carried

out at higher temperatures and under a low pressure

atmosphere. This innovation reduces the total amount

of gas used in the carburising process, and consequently

reduces CO 2

emissions.

Corus Corporate Responsibility Report 2005 9


Sustainable solutions

Packaging

Our products are fully recyclable

and are highly recycled.

Taking a broad approach to recycling in

the Netherlands

A steel packaging recycling rate of 86% has been achieved

in the Netherlands through continuous improvement in the

recycling chain, resulting in an integrated waste management

system without separate collection programmes.

We are involved in a Dutch initiative to reduce litter.

Because we believe litter problems are more related to

people’s behaviour than the packaging itself, we support

national campaigns run by Nederland Schoon, an

organisation which aims to prevent and combat litter.

As steelmakers we are associated with beverage cans,

which, although they only represent about 2% of all litter,

are nevertheless a visible component of it. We have

increased our anti-litter promotional activities with, for

example, a ‘fishing for litter’ project which encourages fishing

vessels to bring ashore any litter they catch in their nets.

Canned food proves to be a sustainable

top performer

A recent TNO study commissioned for the European steel

packaging organisation (APEAL), has shown that food

packaged in steel cans has a high sustainability performance

compared to other packaging options. The study analysed

the performance of packaged vegetables in terms of

environmental impact, cost to the consumer and nutritional

value. When combining economic and environmental

aspects, vegetables sold in a steel can, frozen in a plastic

bag or fresh-peeled, performed with above average

eco-efficiency. Vegetables in a food pouch, laminate carton

or frozen in a carton performed less well.

Packaging recycling in the UK

Our commitment to recycling, and the inherent recycling

advantages of steel, are demonstrated by our leading role

in increasing the recycling of steel packaging from UK

households. Most metal cans or ‘tins’ used in the home

are actually made of recyclable steel.

Corus Steel Packaging Recycling launched a number

of initiatives in 2005 to achieve ever higher recycling

rates for steel packaging. During 2005 we worked with

19 organisations in the UK from Glasgow to Devon, providing

recycling equipment and participating in local events to

improve recycling rates. Over 90% of local authorities now

provide recycling schemes, most of them with infrastructure

provided by Corus. We recycled 7% more packaging in

2005 compared to 2004, including over 1.5 billion steel cans.

The Government’s recycling rate information for 2005 shows

that 51.4% of all steel packaging in the UK was recycled –

compared to 46% in 2004, and 25% in 1998.

Sustainable and food safe

product development

Protact ® consists of a steel substrate and a VOC-free

polymer coating. Protact is recyclable, meets or exceeds

food-contact standards and is the best available food-contact

packaging solution.

10 Corus Corporate Responsibility Report 2005


Sustainable solutions

Consumer products

We work closely with our customers and suppliers

to develop products that are better for consumers

and the environment.

Improved environmental performance

through use of pre-finished steel

By manufacturing high-performance coated products in a

controlled and continuous operation, we are better able

to manage the environmental impact of the process.

Not only do pre-finished steels provide a greater level of

consistency and quality than batch-produced products,

but the economies of scale we achieve by concentrating

on the coating operation mean that we can employ the

latest management systems and environmental

protection technologies.

Compliance with WEEE/RoHS Directives

Our products comply with the requirements of the EU

Restriction on Hazardous Substances (RoHS) Directive.

We have worked extensively with both suppliers and

customers to refine our production processes and eliminate

the need for hexavalent chromium-based pre-treatment of

pre-finished steels. For example, the supply of hot dipped

galvanised steel is now available in a WEEE/RoHS compliant

form, following the introduction of new passivation systems.

Guaranteed performance with Assure ®

Assure is a pre-finished steel with antibacterial protection.

It has been developed to tackle the risk posed by

cross-contamination in food processing and healthcare

environments such as kitchens, cold stores, operating

theatres, washrooms and hospital wards. Assure is effective

against a broad range of potentially harmful organisms and

hospital acquired infections, including MRSA, E-coli and

salmonella.

Reduced resource use

We have developed innovative new coating systems that

now meet the corrosion requirements of end users without

the need for a protective zinc layer. This development

reduces the overall level of natural resources utilised in

the product, thereby reducing its environmental impact,

as well as making it a commercially attractive option for

more applications.

Corus Corporate Responsibility Report 2005 11


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 2005 our

lost time injuries reduced by 24%.

12 Corus Corporate Responsibility Report 2005


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.

Corus Corporate Responsibility Report 2005 13


How do we care for our people?

Figure 1 Lost time injury frequency –

Corus Group employees

16

12

8

4

0

Figure 2 Fatal accidents – Corus Group

16

12

8

4

0

2000 2001 2002 2003 2004 2005

2000

2001 2002 2003 2004 2005

■ Corus employees ■ Contractors

(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.

Performance

Our primary key performance indicator is lost time injury

frequency (LTIF). Our performance data, presented in

Figure 1, shows an improvement in LTIF from 3.8 in 2004 to

2.9 in 2005. This reflects the continued commitment of all our

business units to improve their health and safety performance

and reduce accident rates. It also demonstrates that we have

been successful in maintaining recognition of the importance

of health and safety across the Group in 2005.

14 Corus Corporate Responsibility Report 2005

Despite the improvement in LTIF, the number of fatalities at

our sites, presented in Figure 2, is still unacceptable and we

are continuing to take action to improve this.

In 2005, our sickness absence rate (the number of hours

lost as a result of sickness or injury as a proportion of total

work hours) was 4.2%, which was unchanged from 2004.

The Executive Committee is actively considering how to

further improve the focus on occupational health and hygiene.

Key developments in 2005

‘Time out for safety’

This programme was developed in response to the two

fatal accidents at our sites in 2005. All employees and key

contractors attended workshops to share lessons from

the accidents, to identify the potential for serious accidents

in their own departments and to agree actions they could

take to avoid them.

Executive Committee safety tours

156 Executive Committee safety tours were carried out

during 2005, exceeding our target of 140. These tours

demonstrate leadership, provide motivation, recommend

priorities for improvement and help share good practice

across the Group.

Competence

During 2005, our 400 most senior managers completed a

Safety & Health Excellence Programme developed by our

internal experts and DuPont. During the two-day programme,

each senior manager developed their own personal action

plan, setting out their priorities for making Corus a safer,

healthier, place to work.


How do we care for our people?

Case study

JAPAC Safety Representative of the Year

The Joint Accident Prevention Advisory Committee (JAPAC) is

a collaboration between Corus senior management and the

main UK trade unions representing steel industry employees.

Each year, JAPAC has an award for the Safety Representative

of the Year.

The 2005 winner was Geoff Waterfield, a Trade Union Safety

Representative at Teesside Cast Products. He was nominated for

his professional approach and excellent knowledge of health and

safety matters. In his capacity as a JAPAC facilitator, he gave up

his own time and personal commitments to facilitate training at

Corus Tubes, Corby.

Case study

Chief Executive’s Health and Safety Award

This year’s award was given to the Corus Distribution & Building

Systems UK Strip Processing Centre at Steelpark, Wednesfield,

for two years’ performance with no lost time injury. The volume

of steel movement on site is impressive – 15,000 wide coils

arrive, and 240,000 slit coil items are dispatched, every year.

Over 100 heavy goods vehicles pass through the site every day.

Committed leadership, an effective Health & Safety Committee

and the involvement of everyone on site, contributed to this

achievement. Learning from their own incidents and from best

practice throughout Corus, the team focused on preventing

back injuries through posture training, ergonomic assessments

and physiotherapy.

Case study

IJmuiden steel plant safe and sound

The IJmuiden Basic Oxygen Steelmaking (BOS) Plant has clocked

up over three million working hours over two years without having

a lost time injury.

‘I’m proud of our record,’ says Pieter Broersen, Works Manager.

‘Everyone is responsible for each other’s safety. We say that our

job here is making safe steel.’

The safety culture is so heavily ingrained that people will report

their own mistakes. In a typical week, there are 15–25 different

reports, covering issues such as comments on work permits for

contractors, people not wearing safety glasses and the installation

of machinery.

Corus Corporate Responsibility Report 2005 15


How do we care for our people?

Standards

We launched a further three health and safety standards in

2005: managing the health and safety of contractors; safe

working procedures; and panels of enquiry for investigating

serious incidents. Each is supported by a package of

additional information and training. These standards are in

addition to eight health and safety standards issued in 2004.

Maturity tool

In 2004 we developed a tool to help businesses assess

the maturity of their health and safety performance against

the eight principles of the Corus Health and Safety Policy.

We used it again in 2005 to help businesses identify priorities

for their 2006 health and safety improvement plans.

Sharing good practice

Bulletins are used to share learning points about incidents.

We have also developed an intranet site dedicated to health

and safety communication.

Performance indicators

In line with the target we set last year, employee total

recordable incidents and contractor lost time injury frequency

have been established as new key performance indicators.

Data is available for all our sites from January 2005 and will

be used as a baseline for future measures of performance.

Case study

Good practice in health

Myriad, a Corus Colors plant in France, has taken a

preventative approach to health and safety by integrating

ergonomics into the development stage of projects.

This approach has required close co-operation between

engineers, operators and ergonomists.

For example, in a recent initiative, the plant looked at a point

in the continuous paint line where decoilers have to be

manipulated. The team’s recommendations included lightening

the load of mandrels from 45kg to 17kg, adapting the

man-machine interface and initiating a change in working

methods, giving operators greater scope to plan their work.

16 Corus Corporate Responsibility Report 2005


How do we care for our people?

People

Valuing our workforce

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 the company’s goals and guiding

principles. With this in mind, we are developing leadership

and working practices that aim to involve and engage

all of our employees, and a culture in which continuous

improvement becomes a way of life. This involves nothing

short of changing the way we work. A Group-wide

continuous improvement programme, based on the principles

of lean thinking, has now been launched in support of

The Corus Way (see case study on this page). It is only by

developing our people, harnessing their talents and becoming

an employer of choice that we will be able to attract and

retain the best people, passionate people, to successfully

deliver our business goals.

Organisational responsibilities

In 2005, the Executive Committee reviewed the way we

operate, clarifying the responsibilities of divisions, business

units and functions. 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 Group.

Case study

Lean thinking at IJmuiden

In common with other Corus sites, a new continuous

improvement programme based on lean thinking has been

established at IJmuiden. This follows the successful World

Class IJmuiden project. The aim is to involve all employees in

continuous improvement activities by the end of 2007.

Continuous improvement based on lean thinking is helping us to:

• Look at ourselves through the customer's eyes.

• Optimise and streamline our business processes through the

elimination of waste.

• Get the whole organisation moving in the same direction.

• Further improve our safety record.

• Embed the concept of continuous improvement within the

organisational culture involving all employees.

• Speak one language.

Corus Corporate Responsibility Report 2005 17


How do we care for our people?

1

Figure 3 Employees by region

4 5 67 8 At end December 2005

5 1

Figure 4 Employees by division

At end December 2005

4

3

1 UK 24,000

2 The Netherlands 11,400

3 Germany 4,900

4 France 1,600

5 Belgium 1,700

6 Canada 800

7 USA 600

8 Other countries 2,300

Total 47,300

3

1 Strip Products 22,500

2 Long Products 11,800

3 Distribution & Building Systems 5,700

4 Aluminium 5,700

5 Central functions and others 1,600

Total 47,300

2

2

As mentioned later in the business ethics section, 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 implementing

The Corus Way.

Staffing

We employed some 47,300 people at the end of 2005.

While recruitment of people with relevant skills and expertise

remains a challenge, we are proud to have been included in

the 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. In the

Netherlands, graduates consider Corus to be the best

manufacturing employer, and the 15th best employer

overall (see case study on opposite page).

Training and development

We are continuing to invest in the training and development

of our employees. Most training is delivered locally,

supporting business unit strategies. Examples of local

training initiatives include:

• Training of operating staff to support business restructuring.

• Leadership training for shift controllers, to encourage a

continuous improvement culture.

• Training and education of apprentices to replace

future retirees.

At Group level, the commercial function delivered account

management training to sales managers and customer-facing

staff across the Company. Furthermore, the introduction of a

financial shared service centre in the UK led to over 100 staff

receiving specialised IT skills training.

The focus on continuous improvement based on lean

thinking has been supported by awareness workshops

for all management teams. To ensure a consistently high

standard of delivery across our business units, we are

also training continuous improvement coaches: around

150 coaches completed a six-week programme in 2005,

with 100 more being trained in 2006.

As described earlier, to improve our health and safety

performance, the Executive Committee sponsored

a two-day Safety and Health Excellence Programme

for 400 Group Senior Managers. The programme

focused on root-cause thinking, leadership behaviours

and contractor management.

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.

18 Corus Corporate Responsibility Report 2005


How do we care for our people?

Female

Male

Figure 5 Gender breakdown

At end December 2005

Male 43,000

Female 4,300

Estimated based on data from over 95% of

our operations

NL

D

BR

B

UK

F

Figure 6 Executive Committee

international breakdown

At end December 2005

Belgian (B) 1

Brazilian (BR) 1

British (UK) 4

Dutch (NL) 1

French (F) 1

German (D) 1

Total 9

In addition to day-to-day business communication, we make

efforts to increase formal, two-way communication. To obtain

employees’ views on a range of issues, we regularly run

focus groups. We work with around 300 employees from

all levels and functions, and aim to cover all businesses.

Extending the good practices with employee surveys in

some of our business units, we have established Group-wide

guidelines, with each business unit expected to run regular

employee surveys. In 2005, surveys were conducted in nine

business units and at head office, which, together with our

2004 surveys, covers the majority of our workforce.

Recognition

Our annual Chief Executive’s Awards were established to

recognise outstanding contribution to delivering The Corus

Way. There are three categories: health and safety; best

supplier to best customer; and world class processes.

The calibre of entries during 2005 was extremely high and

competition was tough. The winner of the health and safety

award in 2005 was Corus Distribution & Building Systems

UK, Strip Processing Centre at Steelpark, Wednesfield

(see case study on page 15). Judges were particularly

impressed at the enthusiasm and breadth of creativity of its

employees. The best supplier to best customer award was

won by Corus Packaging Plus for its collaboration with Heinz.

The world-class processes award went to Corus Rail at

Hayange, France.

Case study

Becoming an employer of choice

at target universities

Attracting suitably qualified graduates is a key priority

for us. We have been working to raise awareness of the

benefits of a career with Corus at our target universities and

there is evidence that this campaign is bearing fruit.

In 2005, Corus was ranked in The Times Top 100 preferred

employers for UK graduates. There is still some way to go

before we reach our target of being a top 20 preferred employer

at selected universities, but this is an important first step.

In the Netherlands, graduates consider Corus to be the best

manufacturing employer and the 15th best employer overall.

Corus Corporate Responsibility Report 2005 19


How do we

protect the

environment?

Concern for the environment

is one of our key business

principles. Our objectives are

to adopt sustainable practices

and to continuously improve

our performance.

20 Corus Corporate Responsibility Report 2005


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

Compliance – to meet the requirements of relevant

legislation in the countries and regions in which we operate.

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.

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.

Sustainable development – to contribute to sustainable

development by using energy, water and raw materials more

efficiently, thus optimising our use of natural resources.

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.

Monitoring and reporting – to monitor/audit environmental

performance and to report progress on policy objectives and

improvement targets on a regular basis.

Suppliers and contractors – to encourage suppliers

and contractors to behave in a responsible manner and to

maintain sound environmental practices.

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.

Performance

Scope

The emissions data presented in this section of the report

covers all Corus Group manufacturing sites with the

exception of a small number of facilities within Corus

Distribution & Building Systems, which only make

a minor contribution to our overall emissions inventory.

Compliance

Our operations are complex and varied, and our stakeholders

have ever-increasing expectations about our performance.

This has been reflected in a general tightening of emission

limits over recent years. Nevertheless, our compliance with

statutory limits on both air and water emissions improved

during 2005 and we only narrowly missed our target of

99% compliance at the end of the year. Two factors were

Corus Corporate Responsibility Report 2005 21


How do we protect the environment?

Figure 7 Compliance with emission limits

100%

99%

98%

97%

96%

95%

Figure 8 Energy consumption

(GJ/tonne steel)

21

20

19

18

17

16

2005

Q1

2005

Q2

■ Continuous measurements

(air and water combined)

■ Spot measurements

(air and water combined)

2005 target

2005

Q3

2005

Q4

1999

2000

2001 2002 2003 2004 2005

(i) 1999 data is estimated.

(ii) The small increase in 2005, compared to the

two previous years, was due to an increase in

the proportion of BF-route steel in our total

annual production mix.

significant in this: the establishment of high-level corrective

action plans at sites with an individual compliance rate

worse than 96%; and the continuing scrutiny of compliance

performance at Executive Committee and Board Health,

Safety and Environment Committee meetings. Figure 7

shows our improving compliance performance. We recognise

that we need to maintain and improve on this trend, which

is why we have retained our target of 99% compliance

for 2006.

There were no environmental prosecutions or fines in relation

to our activities during 2005. However, a small number

of incidents occurred during the year which resulted in

regulatory action being taken against us:

• The Environment Agency issued enforcement notices

relating to procedural breaches of the Pollution Prevention

and Control (PPC) permit at Corus Tubes, Corby, and to

maintenance arrangements for the steel melting shop fume

extraction system at Corus Engineering Steels, Rotherham.

• Following complaints from residents in the vicinity of

Teesside Cast Products, Redcar, the Environment Agency

varied the PPC permit to include improvements to the

unloading of iron ore cargoes at the wharf.

Climate change and energy use

The issue of climate change became increasingly prominent

during 2005, as a consensus developed among the scientific

community about the role of man-made CO 2

emissions

in global warming. Although typical CO 2

emissions per tonne

of steel are now around 50% lower than 40 years ago,

the steel industry is still a significant contributor to global

industrial CO 2

emissions, and is therefore contributing to

achieving a worldwide solution. Corus is a major partner

in ULCOS (ultra-low CO 2

steelmaking), a European research

project to investigate technologies that could substantially

reduce CO 2

emissions in the steelmaking process (see case

study on opposite page).

In the short to medium term, our emphasis is on reducing

emissions incrementally, wherever this can be achieved

in a cost-effective manner. Although more than 80% of

emissions from our integrated steelworks are irreducible

process emissions, our combustion-related CO 2

emissions

are closely linked with energy use, and over recent years, we

have been successful in significantly reducing the amount

of energy that we use to make each tonne of steel. This is

shown in Figure 8. The restructuring of UK operations, which

involved rationalising our steelmaking activities from six sites

in 2001 to four at the end of 2005, has played a substantial

part in this. The small increase in energy intensity in 2005

was attributable to a temporary reduction in production

levels in our electric arc furnace (EAF) plants which use

less energy per tonne of liquid steel produced. Production

via the EAF-route is projected to increase in 2006 following

the completion of the rationalisation programme.

22 Corus Corporate Responsibility Report 2005


How do we protect the environment?

Case study

ULCOS – ultra low CO 2

steelmaking

Corus is a major partner in the ULCOS project, which is

investigating a number of potential breakthrough technologies,

such as recycling blast furnace gas, CO 2

capture and

sequestration, electrolysis, use of hydrogen as a reductant

and utilisation of biomass.

During 2005, we have been actively involved through our

research and development expertise and project management

capabilities. Substantial progress has been made in the evaluation

and screening of potential combinations of new process

technologies and future energy scenarios.

Case study

Conserving resources through the use of

secondary raw materials

Blast furnace slag, a by-product from the production of pig iron in

a blast furnace, was once regarded as a waste and often ended

up being landfilled. However, across Corus, we have optimised

our ironmaking processes and invested in granulation facilities

in order to provide tightly-specified slag products which are now

used as a valuable secondary raw material in the cement industry.

This conserves non-renewable resources such as limestone,

reduces the amount of material that would otherwise have to be

landfilled, and significantly reduces emissions of CO 2

.

Corus Corporate Responsibility Report 2005 23


How do we protect the environment?

Table 1 Releases to air – Corus Group (tonnes/year unless otherwise stated)

Substance 1999 2005

CO 2

* 32,500,000 28,400,000

PFCs 12.3 9.3

Particulates 18,500 12,600

PM10s no data 5,800

Dioxins 45g 31g

PAHs 7.5 3.8

Benzene 130 64

NMVOCs 1,700 1,780

NO X

32,500 23,700

SO 2

40,000 26,600

Substance 1999 2005

CO 552,000 392,000

Fluorides 206 165

Arsenic 0.76 0.42

Cadmium** 1.03 1.08

Chromium 6.3 2.8

Copper 5.4 3.5

Lead 78.9 66.4

Mercury** 0.43 0.49

Zinc 93.9 31.7

*Not comparable to EU ETS allocations – different reporting scope.

**The apparent increase compared to 1999 for mercury and cadmium is due to improved monitoring

and extended reporting.

Table 2 Releases to water – Corus Group

(tonnes/year)

Substance 1999 2005

Suspended solids 3,500 1,660

Arsenic 1.27 0.23

Cadmium 0.14 0.10

Chromium 2.01 1.15

Copper 1.18 0.64

Lead 4.64 3.20

Mercury 0.06 0.01

Nickel 1.79 1.54

Zinc* 8.18 15.78

*The apparent increase compared to 1999

for zinc is due to improved monitoring and

extended reporting.

Linked with the restructuring programme, there was

significant investment at Corus Strip Products, Port Talbot,

where a new turbo alternator has increased our capacity to

generate electrical power from process-arising gases.

Although the scope to make further energy efficiency

improvements at our major sites is decreasing, our smaller

manufacturing facilities continue to provide us with

opportunities for improvements. For example:

• At Corus Colors, Yasan, Turkey, we have invested in a

system that recovers waste heat from paint-curing oven

exhaust gas and uses this to heat the alkaline detergent in

pre-treatment tanks.

• At Corus Special Strip, Düsseldorf, our EUR20m (£13.7m)

investment in a new annealing facility is projected to deliver

a 30% improvement in energy efficiency.

As stated earler, we are involved in the EU Emissions Trading

Scheme, which sets a cap on CO 2

emissions from various

industrial sectors and aims to establish a market in CO 2

allowances. Our targets are challenging but achievable

and we expect to meet our environmental obligations over

the course of the first phase of the scheme (2005–2007).

In 2005, there was a small surplus of allowances

(approximately 5% for the Group in total), arising

principally because of production cuts in the second

half of the year to alleviate high inventories in the steel

market. The likely outcome in 2006 and 2007 is still uncertain.

Primary aluminium production is a significant source of

perfluorocarbons (PFCs), which are potent greenhouse gases.

Our two aluminium smelting plants, in the Netherlands and

Germany, have reduced their PFC emissions by over

90% over the past 15 years through significant process

developments. Both our steelmaking and aluminium

smelting operations are now close to the point where

greenhouse gas emissions cannot be reduced further

using existing, proven, technology.

Emissions to air

We are committed to understanding the impact of our

emissions on the environment, and achieve this through a

programme of measurement and modelling. For example,

at Corus Construction & Industrial, Scunthorpe, we have

installed an Aloatech camera system to continuously monitor

and record emissions from the steel plant. This will enable us

to take corrective action more promptly when required.

Measurements have shown that our major production

facilities generally do not make a significant contribution to

airborne levels of pollutants compared to background levels.

European air quality objectives are currently being met in the

areas around all of our major facilities, with the exception

of PM10s in the Port Talbot and Scunthorpe areas, where we

are working closely with the respective local authorities to

improve our understanding of the extent of the problem,

and our contribution to it.

We are committed to reducing our impact whenever it is

practicable and cost-effective to do so. Of the £423m

(approximately EUR617m) capital investment across the

Group during 2005, we estimate that at least 10% was

related to schemes that improved our energy efficiency or

reduced our environmental impact in some other way.

24 Corus Corporate Responsibility Report 2005


How do we protect the environment?

Figure 9 Emissions to air relative to 1999

(per tonne of steel unless otherwise stated)

110

100

90

80

70

60

1999 2000 2001 2002 2003 2004 2005

■ CO 2

■ Particulates ■ Dioxins

■ SO 2

■ NO x

■ Fluorides/tonne aluminium

Figure 10 Emissions to water relative to 1999 (per tonne of steel)

100

80

60

40

20

0

1999 2000 2001 2002 2003 2004 2005

■ Suspended solids ■ Arsenic ■ Lead

The apparent increase in lead emissions compared to 2003 may be due to

improved monitoring programmes and is currently being investigated.

For example, we invested over £6m (EUR8.8m) during the

year to reduce atmospheric emissions by improving the sinter

plant waste gas cleaning system at Corus Strip Products,

Port Talbot. We also invested over £4m (EUR5.8m) at Corus

Strip Products, IJmuiden, in emissions control at the coke

ovens and at the hot strip mill.

Table 1 presents emissions data for 2005, compared to data

from 1999. Figure 9 shows normalised emissions data for our

most significant releases to air from 1999 to 2005.

Water

Steelmaking is relatively water-intensive, although most of

this is used for non-contact cooling and is returned directly to

the watercourse from which it was abstracted. A significant

proportion of the water that we use is taken from estuarine

sections of rivers, where its abstraction has very little impact

in terms of freshwater resource depletion. Our large sites

have complex water distribution systems, which use and

reuse water from multiple sources, including abstracted water

from wells, rivers, canals and reservoirs, stored rainwater and

potable water. For this reason, we cannot accurately estimate

the net consumption of freshwater in our processes.

Our water intensity varies, often in proportion to local supply

constraints. Our integrated steelworks at Corus Construction

& Industrial, Scunthorpe, is our least water-intensive, being

our only inland integrated works. Here, we estimate that

we consume approximately 3m 3 of water per tonne of

steel produced.

Conservation of freshwater and potable water is a key

objective, and one in which we have made considerable

improvements in recent years. For example, we have

instigated a water reuse and reduction project at Corus

Strip Products, IJmuiden. The aims of the project, which

began in 2004 and is still ongoing, include the reduction of

groundwater abstraction at the strip mills, and the application

of Europe-wide best available techniques for the use of water

in cooling systems.

To minimise the impact of our effluents and achieve effluent

quality limits consistently, we employ a complex range

of biological, chemical and physical effluent treatment

technologies at many of our plants. We also use a wide

range of pollution control measures to ensure that fluids

such as oils, acids and other chemicals are stored and

used properly in contained systems.

Table 2 presents water discharge data for 2005 and

compares this with data from 1999. Data for some of the

most important pollutants in our effluents is presented in

normalised form in Figure 10.

Measurement

We are committed to continuously improving the quality of

our emissions data and our impact assessments.

For example, the Environment Department at Corus RD&T,

Rotherham, has responded to a requirement for emission

compliance measurements at our sites in England and

Wales to be performed by personnel and organisations

accredited under the Environment Agency’s MCerts scheme.

Corus Corporate Responsibility Report 2005 25


How do we protect the environment?

Case study

Restoring contaminated land for future

generations at Thomas Steel Strip

We have substantial landholdings, which we regard as a valuable

resource for future generations. Where the condition of historically

degraded land constitutes a potential environmental risk, we take

steps to manage this.

Seven acres of effluent lagoons at Corus Special Strip, Warren,

Ohio, had remained open but inactive since the mid-1980s.

Working closely with the Ohio Environmental Protection Agency,

we agreed a way to remediate and close these lagoons,

permanently removing the environmental risk. The work was

completed in 2005. The restored areas now serve as habitats

for various types of wildlife.

Case study

Shotton rail-head

A new warehouse facility at Corus Colors, Shotton, will help

to increase the volume of material we ship by rail – a far more

efficient and sustainable transportation method when compared

with the emissions and local congestion associated with

road transport.

Coils of uncoated steel strip averaging 18 tonnes are delivered

by rail into the new warehouse up to three times each day, and

are automatically conveyed to the entry sections of the hot

dip galvanising lines for zinc coating. The warehouse, part of

Shotton’s regeneration programme to improve sustainability,

is one of the largest steel coil storage facilities in Europe.

26 Corus Corporate Responsibility Report 2005


How do we protect the environment?

Figure 11 Waste to landfill

(ktonnes per annum)

1,200

1,000

800

600

400

200

0

1999 2000 2001 2002 2003 2004 2005

■ Additional waste to landfill associated with

one-off events

■ Waste to landfill excluding one-off events

Table 3 Resource use

(million tonnes/year)

1999 2005

Steel production 21.0 18.9

Primary aluminium

production 0.2 0.2

Iron ore 29.0 26.0

Coal 12.0 11.0

Alumina 0.5 0.4

Data is approximate and is shown only to

illustrate typical usage.

During 2005, the department trained nine staff to achieve

MCerts personnel accreditation, acquired state-of-the-art

measurement equipment, and achieved accreditation

for ten key tests under the MCerts scheme.

The combination of these investments, together with a sound

working knowledge of steel industry processes, enables

experts within the department to interpret emissions data in

the context of prevailing conditions and to provide informed

advice on cost-effective improvement options.

Land resources

As a substantial landowner, we recognise our responsibility to

protect this valuable resource for future generations, and

have implemented a wide range of pollution prevention and

control measures at our operational sites. For example, as a

precautionary measure at Corus Strip Products, IJmuiden,

we replaced the main parts of an underground tar-products

transport pipe in 2005. We will replace the remaining sections

of the pipe in 2006.

The case study on the opposite page provides an example of

how we proactively deal with land that has become degraded

as a result of historic activities.

Resource effectiveness

Our systems to improve resource efficiency are not limited to

water and energy. We are equally committed to conserving

other raw materials, many of which are non-renewable.

Our first priority is to optimise the consumption of materials

within our processes, by improving the conversion efficiency

of each process. Although we achieve a high level of control,

in most conditions it is neither technically possible nor cost

effective to achieve 100% conversion efficiency, and the

process itself generates some waste. Our priority then

shifts to ensuring that any by-products or wastes are either

reused, recycled or recovered.

Over a number of years, we have implemented and optimised

systems that enable us to recycle materials which contain

valuable components such as iron and carbon that are

unavoidably produced in our steelmaking processes.

For example, we have invested in plants to produce

briquettes from dust collected in our emissions control

systems that can then be recycled through our steelmaking

plants. In addition, in 2005 we invested in an electrolyte

recovery line at Corus Special Strip, Düsseldorf, which will

enable us to recycle 100% of our nickel electrolyte. This was

previously regarded as a hazardous waste for disposal.

In those cases where there is no cost-effective alternative,

we have to dispose of our waste. This is always done in a

manner that ensures environmental impacts are minimised.

Landfill is our dominant disposal option, particularly in the

UK, where our landfill sites are covered by the stringent

requirements of the EU Landfill Directive.

Overall resource efficiency can best be measured by

reference to raw material consumption and waste to landfill

data. Improvements at all stages of the resource

management hierarchy, from waste avoidance to disposal,

will lead to a reduction in raw material consumption and

waste to landfill.

Corus Corporate Responsibility Report 2005 27


How do we protect the environment?

Table 4 By-product applications

By-product

Granulated blast furnace slag

Air cooled blast furnace, EAF & BOS slag

Tar

Benzene/toluene/xylene

Ammonium sulphate

Sulphuric acid

Iron oxide

Ferrous chloride solution

Zinc and tin dross

Application

Cement industry

Civil engineering and agricultural

fertiliser industries

Chemical industry

Chemical industry

Artificial fertiliser industry

Artificial fertiliser industry

Electronics, cement industry and

paint industries

Water treatment, effluent and dye industries

Non-ferrous metal recovery industries

Figure 12 Reuse, recycling and recovery

of by-products (% by weight)

100%

95%

90%

85%

80%

75%

1999 2000 2001 2002 2003 2004 2005

The 2004 figure is not directly comparable

with other years as the calculation of recycling

rate was skewed by non-production waste

associated with our UK restructuring

programme. The 2005 figure has been

adjusted to take account of this.

Table 3, on page 27, shows our consumption of raw materials

(iron ore and coal for steel production, and alumina for primary

aluminium smelting) during 2005.

Although there has been an overall reduction in waste to

landfill since 1999, there was a significant increase in 2004

and 2005 compared to earlier years. There are a number of

reasons for this. The single greatest factor is the effect of the

restructuring programme in the UK. This has led to significant

building and land clearance, with an associated increase in

construction and demolition waste. The 2005 landfill figures

were also heavily skewed by the effect of a programme

to recover valuable iron units from a historic stockpile of

steelmaking waste at Corus Construction & Industrial,

Scunthorpe. Figure 11, on page 27, shows waste to landfill

performance between 1999 and 2005, including an adjusted

figure for 2005 that takes these atypical occurrences

into account. From the figures, it can be seen that Corus

achieved its target to reduce waste to landfill by 10% in

2005 compared to 2003, when one-off, non-production,

events are excluded.

By-products

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

alternative, or secondary, raw materials in sectors such as

cement and chemicals. Non-renewable primary raw materials

are thereby displaced and conserved (see case study on

page 23). Table 4 shows where our by-products are typically

used. Figure 12 shows our performance since 1999 in

the reuse, recycling and recovery of by-products from

steel production.

Nuisance

We operate large-scale, heavy industrial processes and many

of our production facilities are located close to residential

areas. It is therefore an ongoing challenge to ensure that we

do not cause nuisance or distress to local residents. We have

established a target to reduce public complaints by 10% by

2006 compared with 2003, and the statistics presented in

Figure 13 show that we are on course to achieve this, despite

an increase in 2005 compared with 2004.

We take a proactive approach to nuisance management.

Our complaint management systems ensure that any

complaint will be thoroughly investigated, and we always

aim to provide feedback to complainants on the outcome

of investigations.

Biodiversity

Our manufacturing facilities often sustain a surprisingly rich

tapestry of wildlife. This is due to combination of factors: our

ownership of relatively large tracts of undisturbed ground; the

application of site-greening strategies at many of our sites;

and the efforts of enthusiastic employees, wildlife groups,

schools and voluntary bodies.

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.

28 Corus Corporate Responsibility Report 2005


How do we protect the environment?

Figure 13 Public complaints

Table 5 IISI environmental performance indicators

1,000

800

600

400

200

0

2003 2004 2005

Performance Unit Indicator result Comments

indicator Corus World

2004 average

2003

Greenhouse gas Tonnes of CO 2

/tonne 1.49 1.6 Corus better than

emissions crude steel world average

Material efficiency % 94.6* 96.8 Corus slightly below

world average

Energy intensity GJ/tonne crude steel 17.9 19.0 Corus better than

world average

Environmental % of employees and 94.5** 85.0 Corus better than

management systems contractors working in world average

certified production units

*Our by-product reuse, recycling and recovery rate, reported in Figure 12, is calculated differently

from IISI’s material efficiency, and is not directly comparable.

**Based on steel-related operations in the UK and the Netherlands.

IISI also uses an indicator for steel recycling. Performance in this regard is mainly a function of

EAF/BF route production mix. We do not report this here.

Performance against sector benchmarks

In all aspects of our business we try to measure our

performance against that of our peers. The International Iron

& Steel Institute (IISI) has established a set of sustainability

related performance indicators. Our results for 2004 are

presented in Table 5, alongside the most recently published

world average figures for 2003.

It can be seen that we perform better than the world

average in the areas of CO 2

intensity, energy intensity

and management systems. Our performance in terms

of material efficiency was slightly below the world average

but we improved our performance in 2005. We have also

improved our management system coverage and energy

intensity since we last reported to IISI in 2004.

Supply chain

We believe that our responsibility for managing environmental

impact goes beyond our manufacturing facilities.

Downstream, the characteristics of our products, and the

information that we provide to customers, can both have

a profound effect on the environmental performance of

our products during their in-use and end-of-life phases.

The sustainable solutions pages earlier in this report provide

some examples of the environmental advantages of our

products, and how they can be used to best effect.

In the same way, we encourage our suppliers to minimise

upstream impacts. 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 have developed an internet-based supplier

assessment tool. This enables us to make informed decisions

about whether to reject prospective suppliers, or, as is usually

the case, to encourage them to improve.

Transport

The manufacture of steel and aluminium involves the global

transportation of many millions of tonnes of raw materials,

intermediate and finished products. We have implemented

a wide range of improvements in recent years to mitigate

transport-related impacts. These include redeveloping

wharf and rail-head facilities to facilitate the switch from

road to canal/rail transport, and using state-of-the-art

logistics software to optimise cargo size and the utilisation

of return journeys. The case study on page 26 shows

how Corus Colors, Shotton, has reduced its transport-related

impacts.

We also contribute to reducing transport-related impacts

through our product design. In addition to the examples

provided in the sustainable solutions pages of this report,

Corus Rail has developed products that bring significant

environmental benefits to railways. We developed Silent

Track in order to reduce noise impact. Silent Track has

already been installed at several locations in the Netherlands

where it plays a significant role in improving the quality of the

urban environment.

Corus Corporate Responsibility Report 2005 29


How do we

support our

communities?

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.

30 Corus Corporate Responsibility Report 2005


Communities

We recognise that our operations influence 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, economic development

and regeneration

At the end of 2005, we directly employed 47,300 people

and many thousands more indirectly through our contractors

and suppliers.

We are also active in stimulating regional employment.

For example, in the late 1990s we allocated 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.

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.

UK Steel Enterprise, a Corus subsidiary which was

established in 1975, has invested over £50m (EUR73m) in

new and expanding steel-related businesses and over £20m

(EUR29m) in managed workspaces. We have supported over

4,000 small businesses and helped create 65,000 new

jobs. The business has also been able to attract external

funding. To date, UK Steel Enterprise has leveraged an

additional £300m (EUR438m) of investment from the public

and private sectors.

A good example is the Ebbw Vale Innovation Centre in South

Wales. The centre is a catalyst for the growth of spin-off

companies with the accent on technology and innovation.

The centre has been designed with the regeneration plan

for the area in mind, and UK Steel Enterprise worked

closely with Blaenau Gwent County Borough and the

Welsh Development Agency throughout the project.

Steel supply has predominantly outstripped demand over the

past 20 years. 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.

Corus Corporate Responsibility Report 2005 31


How do we support our communities?

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. For example,

our IJmuiden site sponsors the world renowned Corus chess

tournament in Wijk-aan-Zee. In 2005, three grandmaster

events and many other amateur and youth competitions were

featured. IJmuiden also sponsors the premier-division football

club AZ and the local football club Stormvogels/Telstar.

We are the key supplier of building material for the new

AZ football stadium, which will be opened later in 2006.

In the UK, our Port Talbot site used its landfill tax credits to

release matching government funding for the Phoenix Centre

community initiative. It also sponsored the education

and learning zone at the Swansea Waterfront Museum and

re-created ironmaking from 100 years ago in Parc Tondu.

Corus Engineering Steels in Rotherham donated several

thousand pounds for the benefit of local schools, hospitals

and charities. In addition, Corus Packaging Plus in Trostre

has been running its community award scheme for over four

decades. In 2005, the scheme helped 48 local organisations,

ranging from amateur sporting groups to local branches

of national charities.

In London, we donated £50,000 in support of the families

who were affected by the terrorist attacks on 7 July 2005.

Supporting local education

We recognise that we have a positive role to play in

supporting the educational development of the communities

of which we are a part. In both the Netherlands and the UK,

we work in partnership with education providers, bridging the

link between industry and education. 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.

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. Our support can vary from helping young children

with literacy and numeracy, to explaining forces and motion

to college students.

In the UK, we sponsor teachers as well as student prizes in

material science subject areas in association with, among

others, the Armourers and Brasiers Livery Company, the

Institute of Physics and the University of York’s Science

Education and Research Department. We have also

sponsored the regional finals of the highly successful

Formula 1, a schools’ competition that challenges

11 to 16 year old students to design, produce and race their

own Formula 1 racing car. In addition to our involvement in

national industry/education initiatives, we have extensive

connections with our local schools and communities.

32 Corus Corporate Responsibility Report 2005


How do we support our communities?

Our people in action

• A team of graduates and placement students

transformed an old pub in Rotherham into

the new home of the ‘Get Sorted Music

Academy’, a charity providing music and

education for children. Money raised by

the group from an earlier sponsored walk

covered material and equipment costs.

• Employee volunteers at Stocksbridge took

part in the Monmouth Raft Race for the 13th

consecutive year, raising just over £5,000 for

Weston Park Hospital, Sheffield.

• Corus’ businesses in Wales, including those

in Port Talbot, Llanwern in Newport and

Trostre near Llanelli, are helping in the fight

against Cystic Fibrosis by sponsoring and

participating in the Great Welsh Run.

• Staff in Trostre used the community award

scheme to match funds raised for charity

by their own employees, including teams in

the Mumbles raft race and Swansea Bay

10k race.

• We provided sponsorship and our employees

took part in a Sports Award Conference, to

help recognise, reward and promote sporting

achievement among the youth of Corby.

• Employees from Workington participated

in a charity walk to help raise money for

organisations in the West Cumbria area.

Many of our sites have educational liaison programmes.

At Corus Colors, Shotton, UK, this covers local primary and

senior schools and includes work experience, workshops,

interviewing skills courses, industry days and the Engineering

Education and Young Enterprise schemes.

A successful Engineering Doctorate scheme has been

running in Wales for over 10 years. The scheme forms a

unique partnership between the University of Wales, the

Engineering and Physical Sciences Research Council and

Corus. Leading graduates, who aspire to key positions in

industry, get the opportunity to gain experience in technical

and engineering disciplines at Corus while pursuing doctorate

research studies.

In the Netherlands, we liaise with schools offering preparatory

intermediate vocational education (VMBO). To encourage

interest in technology, and to enable technical pupils and

apprentices to find out about us, we have started 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 schoolchildren have been given the

opportunity to form a ‘Cadette Industrie’ (Junior Company)

for a year. Pupils visit our Corus Colors, Myriad, plant,

meeting and talking with operators to find out about our

Company and the workers’ roles. The pupils can then

produce items that are presented as prototypes and later

sold to Myriad.

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. Our employees volunteer to assist in local

initiatives and we are grateful for their continuing efforts.

There are many examples of this, only a few of which are

shown above.

Corus Corporate Responsibility Report 2005 33


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.

34 Corus Corporate Responsibility Report 2005


Business ethics

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 ethics and anti-fraud/anti-corruption

programme

This year, we are working on improving our Code of Ethics.

This will be developed and delivered during the course of

2006. It will build on the existing framework which focuses on

the core principles of sound business decisions, compliance

with laws and regulations, protection of company property,

engaging in responsible trading practices, proactive

communication with our stakeholders, valuing our employees

and working in a sustainable environment. As part of the

development of this improved Code of Ethics, we will

introduce an augmented programme for combating fraud

and corruption. This programme will use our successful

competition law compliance programme (see case study

on page 37) as a model and will include business-specific

guidance notes and on-line training. The programme will

incorporate our policy and procedures for combating bribery

and corruption, dealing with agents and contractors,

facilitating payments, gifts and entertainment.

Suppliers and contractors

We encourage our suppliers and contractors to operate to

the same standards as Corus.

Independent financial audit

All business transactions on behalf of Corus are reflected

accurately and honestly in our accounts in accordance with

established practices and these are subject to independent

audit and review.

Operating model

During 2005, we conducted a thorough review of our Group

Policy Documents – the policies that underpin our operating

model. These cover the essential elements of our operating

procedures and the way we wish to conduct our business –

including financial policies, processes for committing to sales

and purchases, compliance with laws and regulations, the

development of our employees, our identity as a Company,

and the security of our operations. Each policy document has

been rewritten in clear, concise language to allow easier and

more consistent deployment throughout the Group.

Corus Corporate Responsibility Report 2005 35


How do we safeguard our business?

‘Whistleblowing’ system

In 2005 we also improved the management of our

confidential reporting (‘whistleblowing’) procedure. We have

raised employees’ awareness of its availability and have a

programme to refresh awareness, through articles in the

company magazine for employees and other communication

methods, as well as to improve ease of access to this

confidential system.

The underlying matters identified through the whistleblowing

line, and reports received through other confidential channels,

are regularly reviewed so that the lessons learned can be

incorporated into improved working practices. In response

to some of the confidential matters reported, our internal

audit and asset protection units carry out investigations

as required.

An independent review is assured through a quarterly report

to our Board Audit Committee, which comprises four

independent non-executive directors.

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 which

we believe will become even stronger as they become further

integrated into our working practices.

Policy and guidance

For each potential risk that we have identified as material,

we are working to ensure that we have a clear policy

and strategy in place and that we understand its relevance

to our business.

Assurance

Internal assurance is built into our approach 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,

PricewaterhouseCoopers, through accredited external

verification bodies in relation to standards such as ISO 9001,

ISO 14001, OHSAS 18001 and ISRS and through the

validation of this report by Enviros (see page 40).

36 Corus Corporate Responsibility Report 2005


How do we safeguard our business?

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.

3. Protection of Company property

Employees are expected to respect and

protect Corus’ property from damage, theft

and misuse.

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.

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.

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.

7. Concern for the environment

Corus will adopt sustainable practices and

continuously improve its environmental

performance.

Case study

A model for compliance

During 2005 we developed and implemented an improved Groupwide

compliance system to further raise awareness of competition

laws and regulatory practice. An initial phase of internal stakeholder

engagement identified the particular areas of risk for each of the

diverse businesses in the Group. These stakeholders reviewed and

contributed to the package of compliance materials, which included

the overall policy document, guidance notes for conduct in various

business situations, case studies relevant to the businesses, and

procedures for response to an investigation. These written materials

are supported by presentations made to employees relating to law,

practice and personal conduct.

Employees are also required to complete an on-line training

programme. The on-line programme, available in the main

languages in which the Company operates, focuses on

realistic scenarios and ends with a series of test questions.

Successful completion of the on-line training programme is

followed by certification of compliance with the policy.

The methodology used in the development of the new programme

allowed a variety of people from a broad range of activities to

contribute and participate. The successful deployment of this

compliance programme will be used as a model for other systems

of training and compliance, in subjects such as the combating of

fraud and corruption and other areas of legal risk.

Corus Corporate Responsibility Report 2005 37


Progress against targets

Category

People

Health and safety

People

Valuing our workforce

Environment

Target

Further substantially improve mean lost time injury frequency in 2005

compared to 2004

Measure employee commitment by regularly conducting employee

surveys and focus groups.

Achieve at least 99% compliance with formal regulatory emission limits for

both emissions to air and releases to water by the end of 2005

Achieve 100% certification to ISO 14001 for all Corus European manufacturing

sites (excluding interim mergers and acquisitions and sites with fewer than

50 employees) by the middle of 2006

Reduce total energy consumption in the UK by 11.5% compared to 1997,

by 2010 and become one of the world's top steelmakers and primary aluminium

producers (in the comparable technology class) in terms of energy use in

the Netherlands by 2012

Reduce emissions of perfluorocarbons (PFCs) from the primary aluminium

production process by 50% compared to 1990, by the end of 2005

Identify and assess our contribution to ambient air concentrations of fine and

ultrafine dust particles (PM2.5s and PM0.1s) and evaluate options for

improvement where necessary by the end of 2006

Reduce the number of complaints from the public related to our activities by 10%

compared to 2003 by the end of 2006

Reduce waste to landfill by 10% from 2003 levels by the end of 2005

Carry out life-cycle studies to ensure that LCI (life-cycle inventory) data to the

factory gate is available for at least 70% of Corus products by the end of 2006

Increase the steel packaging recycling rate in the UK to 54% by 2008 (compared

with 46% in 2004) and continue to work with organisations such

as Nederland Schoon to reduce litter from packaging in the Netherlands

Launch an intranet site to improve the dissemination of environmental good

practices across Corus business units and manufacturing sites

Community

Business ethics

Establish additional key performance indicators related to social and ethical

issues during 2005

Deliver a strengthened Code of Ethics in 2006

38 Corus Corporate Responsibility Report 2005


Status Comments Forward action

Achieved

Our lost time injury frequency improved to 2.9 per

million hours worked in 2005 (compared to 3.8 in 2004)

New target – Further substantially improve

mean lost time injury frequency in 2006

compared to 2005

– –

New target

Substantially

achieved

On target

At the end of 2005, our results were: spot measurements

98.85%; continuous measurements 99.98%

86% of our sites are currently certified. Our operations

at Voerde (Germany), Delfzijl (the Netherlands)

and Durango (Spain) are on schedule to be certified

New target - Achieve at least 99%

compliance with formal regulatory emission

limits by the end of 2006

Target carried forward

On target

In the UK we achieved our 2004 Climate Change Agreement

milestone target to reduce energy and we are on target to

achieve the target for 2010. In the Netherlands we currently

outperform the best international standard in energy use

Achieved PFC emissions have been reduced by more than 90%

(from 170 tonnes in 1990 to less than 10 tonnes in 2005)

Target carried forward


On target

We have established a strategic R&D project to identify

and assess our fine and ultrafine dust emissions

Target carried forward

On target

Substantially

achieved

2005 complaints were 26% below 2003 levels, well ahead

of target

Our waste to landfill, excluding exceptional items was

11.5% lower in 2005, compared to 2003

Target carried forward

New target - Reduce production waste to

landfill by 10% from 2005 levels by the end

of 2007

On target Life-cycle inventory data is now available for 88%

of our products

Target carried forward

On target 51.4% of steel packaging in the UK was recycled in 2005 Target carried forward

On target This will be launched later in 2006 Target carried forward

Achieved

We will report in more detail on corporate giving

from 2006


– – New target

Corus Corporate Responsibility Report 2005 39


Validation statement

Enviros has conducted an independent validation of

the Corus Corporate Responsibility (CR) Report 2005

to provide assurance on the completeness, transparency

and accuracy of the report and to review systems for data

collection. The validation process was conducted through

interviews with staff responsible for the data collection and

reporting at a central corporate level and from a selection

of representative sites.

Opinion

We consider that the text and data in the report represent an

accurate and materially complete account of Corus’ health,

safety, environmental and social performance during 2005.

There has been a structured framework for collating and

reporting health and safety data for a number of years and

the environmental data and employee related data collection

processes now provide transparency throughout the reporting

process. Consistency in presentation facilitates easy year on

year comparison and in particular the environmental data is clear

concerning thresholds of materiality.

It is noted that the CR report has more visible ownership at

the Corus executive level. Corus is currently identifying the

future material issues to be reported in respect of employees,

community and ethical business practices to further

strengthen the report in these areas. There is as yet no

formalised mechanism for engagement with stakeholders to

help identify material issues to be reported.

Corus has started to address the need to provide written

guidance for the data collection and reporting processes in

respect of the CR Report requirements. To date this has been

developed for some of the environmental parameters and is

now being extended.

The environment and health and safety targets set last

year have been largely achieved. Corus has acknowledged

the need to further consider appropriate targets in the

consideration of presenting employee and community

data and data around ethical business practices.

Recommendations for future reports

We recommend that Corus develops further internal

guidelines which clearly set out the methodology and

responsibilities for all areas of CR data collection.

Corus needs to set out a framework for developing targets

in the social and community impacts of its business activities.

It is recommended that consideration is given to the

appropriate level for setting these targets which may be at a

business unit or site level rather than for Corus as a whole.

Corus needs to continue to evolve its CR reporting strategy

and needs to consider the role of its stakeholders in helping

to define material issues to report on, and appropriate future

improvement targets and indicators.

It is encouraging that Corus considers the impact of its

suppliers, contractors and customers within the scope of

Corus’ corporate responsibility although it is acknowledged

that it is difficult to report quantitative data on these impacts.

Peter J Young

Strategy Director

40 Corus Corporate Responsibility Report 2005


Validation statement

Enviros has conducted an independent validation of

the Corus Corporate Responsibility (CR) Report 2005

to provide assurance on the completeness, transparency

and accuracy of the report and to review systems for data

collection. The validation process was conducted through

interviews with staff responsible for the data collection and

reporting at a central corporate level and from a selection

of representative sites.

Opinion

We consider that the text and data in the report represent an

accurate and materially complete account of Corus’ health,

safety, environmental and social performance during 2005.

There has been a structured framework for collating and

reporting health and safety data for a number of years and

the environmental data and employee related data collection

processes now provide transparency throughout the reporting

process. Consistency in presentation facilitates easy year on

year comparison and in particular the environmental data is clear

concerning thresholds of materiality.

It is noted that the CR report has more visible ownership at

the Corus executive level. Corus is currently identifying the

future material issues to be reported in respect of employees,

community and ethical business practices to further

strengthen the report in these areas. There is as yet no

formalised mechanism for engagement with stakeholders to

help identify material issues to be reported.

Corus has started to address the need to provide written

guidance for the data collection and reporting processes in

respect of the CR Report requirements. To date this has been

developed for some of the environmental parameters and is

now being extended.

The environment and health and safety targets set last

year have been largely achieved. Corus has acknowledged

the need to further consider appropriate targets in the

consideration of presenting employee and community

data and data around ethical business practices.

Recommendations for future reports

We recommend that Corus develops further internal

guidelines which clearly set out the methodology and

responsibilities for all areas of CR data collection.

Corus needs to set out a framework for developing targets

in the social and community impacts of its business activities.

It is recommended that consideration is given to the

appropriate level for setting these targets which may be at a

business unit or site level rather than for Corus as a whole.

Corus needs to continue to evolve its CR reporting strategy

and needs to consider the role of its stakeholders in helping

to define material issues to report on, and appropriate future

improvement targets and indicators.

It is encouraging that Corus considers the impact of its

suppliers, contractors and customers within the scope of

Corus’ corporate responsibility although it is acknowledged

that it is difficult to report quantitative data on these impacts.

Peter J Young

Strategy Director

40 Corus Corporate Responsibility Report 2005


Glossary

APEAL The European steel packaging trade association

Assure A pre-finished steel with antibacterial protection

BOS Basic oxygen steelmaking

Benzene, toluene and xylene By-products from cokemaking

BF Blast furnace

CO Carbon monoxide

CO 2

Carbon dioxide, a gas released in combustion and

other industrial processes, which contributes to the enhanced

greenhouse effect

Colorcoat HPS200 A pre-finished steel product for roof and

wall cladding

Corus Steel Packaging Recycling A Corus department

dedicated to promoting recycling of steel packaging in the UK

CR Corporate responsibility

CSR Corporate social responsibility

Dioxins A group of organic compounds formed in industrial

and combustion processes

Dross Secondary products from galvanising and other metal

coating processes

EAF Electric arc furnace

Ecolite A strong, lightweight aluminium product for the

automobile sector

EMS Environmental management system

EU European Union

Ferrous chloride solution Residual material from the steel

acid-pickling process

Fluorides Fluorine-containing compounds

Fugitive Releases from non-stack sources

Greenhouse gases Gases which contribute to global warming

GSM Group senior manager

Heavy metals Metals such as cadmium, copper, mercury,

nickel, chromium, lead and zinc

IISI International Iron and Steel Institute

IMDS International material database system

ISO 14001 International environmental management

system standard

ISO 9001 International quality management system standard

ISRS International safety rating system

JAPAC Joint Accident Prevention Advisory Committee

Key performance indicators Parameters which are important

indicators of how well we perform

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. More detailed financial data

is available separately in our Annual Report. This report and a

full checklist against the GRI core elements are available on

our website (www.corusgroup.com).

Landfill Tax A UK tax on materials which are landfilled

LCA Life cycle assessment, a method of identifying the

environmental impact of a product. The whole life cycle of a

product is considered

LCI Life cycle inventory, a part of LCA

LTIF Lost time injury frequency, the number of lost time

incidents per million hours worked

NMVOCs VOCs excluding methane

NO x

Oxides of nitrogen, compounds that contribute

to acidification

NO 2

Nitrogen dioxide, one of the oxides of nitrogen

OHSAS 18001 International occupational health and safety

management system standard

PAHs Polycyclic aromatic hydrocarbons, a collective term

for tar-like compounds

PFCs Perfluorocarbons, a family of greenhouse gases

PM10 Particulate matter less than 10 microns in diameter

PM2.5 Fine particulate matter less than 2.5 microns

in diameter

PM0.1 Ultrafine particulate matter less than 0.1 microns

in diameter

RD&T Corus Research, Development and Technology

REACH Proposal for a European regulation on the

registration, evaluation and authorisation of chemicals

Sickness absence rate 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

Slags Secondary products from ironmaking and steelmaking

SO 2

Sulphur dioxide, a compound that contributes

to acidification

SSSI Site of special scientific interest

TNO A Netherlands organisation for applied

scientific research

ULCOS Ultra-low CO 2

steelmaking

ULSAB-AVC Ultra light steel auto body – advanced

vehicle concept

Urea An ammonia-based compound, which is often used

in fertilisers

VOCs Volatile organic compounds, such as solvents.

WEEE Waste Electrical and Electronic Equipment – an

EU Directive

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

Corus Corporate Responsibility Report 2005 41


www.corusgroup.com

Care has been taken to ensure that this information

is accurate, but Corus Group plc, and its subsidiaries,

does not accept responsibility or liability for errors or

information which is found to be misleading.

Copyright 2006

Corus

This report is printed on Revive Special Silk which is produced

from pulp containing a minimum of 30% post-consumer and

10% pre-consumer recovered fibre. A further 30% of the fibre

comes from well-managed forests independently verified

according to the rules of the Forest Stewardship Council.

Designed and produced by Radley Yeldar (London)

Corus

30 Millbank

London

SW1P 4WY

United Kingdom

T +44 (0) 20 7717 4444

T +44 (0) 20 7717 4455

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