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Corporate responsibility report 2005 - Tata Steel

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<strong>2005</strong><br />

<strong>Corporate</strong> <strong>responsibility</strong> <strong>report</strong><br />

Striving to make a difference<br />

Value in steel


How are<br />

we doing?<br />

We take corporate <strong>responsibility</strong> seriously.<br />

Our results are improving, but we recognise<br />

that we still have further work to do.<br />

Our objective is world-class performance.<br />

Contents<br />

1 Our performance in summary<br />

2 Message from the Chief Executive<br />

3 How do we manage corporate <strong>responsibility</strong>?<br />

5 What does sustainable development mean<br />

for us?<br />

6 Sustainable solutions<br />

Construction<br />

Automotive<br />

Packaging<br />

Consumer products<br />

12 How do we care for our people?<br />

Health and safety<br />

Valuing our workforce<br />

20 How do we protect the environment?<br />

Environment<br />

30 How do we support our communities?<br />

Communities<br />

34 How do we safeguard our business?<br />

Business ethics<br />

38 Progress against targets<br />

40 Validation statement<br />

41 Glossary<br />

Company profile<br />

Corus is an international company that manufactures,<br />

processes and distributes steel and aluminium products<br />

and provides related services in design, technology<br />

and consultancy.<br />

The Group has manufacturing operations in many countries.<br />

It has major plants in the UK, the Netherlands, Germany,<br />

France, Canada, the USA, Norway and Belgium, as well as<br />

sales offices and service centres all over the world. It serves<br />

the construction, automotive, packaging, mechanical<br />

engineering, metal goods and electrical engineering<br />

sectors. With a clear focus on carbon steel, Corus<br />

aims to deliver value to its stakeholders.<br />

Corus is organised into four divisions (Strip Products,<br />

Long Products, Distribution & Building Systems and<br />

Aluminium*) and, at the end of <strong>2005</strong>, employed 47,300<br />

people. Turnover in <strong>2005</strong> was £10,140m (EUR14,796m)<br />

and Group operating profit was £680m (EUR992m).<br />

Further information is available at www.corusgroup.com<br />

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

with Aleris International Inc. for the proposed sale of its Aluminium rolled<br />

products and extrusions businesses.<br />

Feedback<br />

If you have any comments on what we have done so far<br />

or on how we can further improve, then please email us at<br />

feedback@corusgroup.com


Our performance<br />

in summary<br />

What have we achieved?<br />

• We have improved our health and safety performance –<br />

our lost time injuries reduced by 24% in <strong>2005</strong>.<br />

• The high profile recognition of the importance of health<br />

and safety was maintained in <strong>2005</strong> – 156 Executive<br />

Committee safety tours were carried out.<br />

• We developed and launched a further three mandatory<br />

health and safety standards during <strong>2005</strong>.<br />

• 86% of our manufacturing operations have now been<br />

certified to ISO 14001.<br />

• Our compliance with emission limits improved during the<br />

year to just under 99%.<br />

Where do we need to improve?<br />

• Despite the overall improvement in our health and safety<br />

performance, we still had two fatalities in <strong>2005</strong> – our focus<br />

on improving health and safety will continue in 2006.<br />

• We will continue to improve our energy efficiency and<br />

reduce our greenhouse gas emissions.<br />

• We aim to further improve our level of compliance with<br />

increasingly stringent emission limits and to further reduce<br />

our production waste to landfill – we have set revised<br />

improvement targets in these areas.<br />

• We have a strong, established, compliance culture. This<br />

year we will further embed our ethical business principles<br />

with the delivery of a strengthened Code of Ethics.<br />

• We are continuing to play a leading role in a major<br />

European project to investigate and develop breakthrough<br />

technologies for ultra-low CO 2<br />

steelmaking.<br />

• Our waste to landfill, excluding exceptional items, was<br />

11.5% lower in <strong>2005</strong> compared to 2003.<br />

• Life-cycle inventory environmental data is now available for<br />

88% of our products.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 1


Message from the<br />

Chief Executive<br />

We believe in the importance of meeting our<br />

corporate responsibilities. We are developing<br />

The Corus Way within a safe and sustainable<br />

environment.<br />

I have pleasure in presenting our second corporate<br />

<strong>responsibility</strong> <strong>report</strong>, where in addition to health, safety,<br />

environmental and social issues, we have extended <strong>report</strong>ing<br />

on the ethical aspects of our business. Our Restoring<br />

Success programme, launched in 2003, will be completed<br />

by the end of 2006. Corus today is more robust as a result<br />

of this programme and through The Corus Way we will<br />

look to build on this positive momentum.<br />

The Corus Way defines our longer term ambitions. We will<br />

deliver value in steel, by further increasing our mix of<br />

differentiated products, embedding a culture of continuous<br />

improvements in all our processes and pursuing selective<br />

growth opportunities. A Group-wide continuous improvement<br />

programme, based on the principles of lean thinking, has<br />

already been launched and 250 coaches have undergone<br />

training to engage our employees in moving towards even<br />

higher standards of performance. This involved, committed,<br />

workforce of passionate people will deliver The Corus Way<br />

in a safe and sustainable environment. Our commitment to<br />

corporate <strong>responsibility</strong> is therefore an integral part of the<br />

way we run our business.<br />

During <strong>2005</strong>, we have seen a further 24% reduction in the<br />

frequency of lost time injuries and we have implemented a<br />

Group-wide safety awareness programme. All members of<br />

the Executive Committee, including myself, have personally<br />

conducted health and safety tours – 156 were completed<br />

in <strong>2005</strong>. This emphasises the leadership and widespread<br />

recognition of the importance of health and safety across the<br />

Group. Regrettably, the year also brought two fatal accidents<br />

to Corus employees. Safety therefore remains our first priority.<br />

Within our production processes, we have continued to<br />

improve our environmental performance, with 86% of our<br />

sites now certified to ISO 14001. By the end of <strong>2005</strong>, we<br />

had achieved just under 99% compliance with our emission<br />

limits. We are also reducing our greenhouse gas emissions<br />

by improving our energy efficiency and by participating<br />

in the EU Emissions Trading Scheme. In addition, we are<br />

a significant partner in ULCOS (ultra-low CO 2<br />

steelmaking),<br />

a EUR44m (£30m) research project to investigate<br />

technologies to substantially reduce CO 2<br />

emissions from<br />

the steelmaking process.<br />

Our products have inherent environmental advantages,<br />

as they are both durable and recyclable. In support of<br />

The Corus Way, we are continuing to invest in our business<br />

and to further develop our products, including, for example,<br />

a £153m (EUR223m) investment at IJmuiden to expand the<br />

Group’s product range for the construction and automotive<br />

markets, including advanced high strength steels.<br />

Our performance is underpinned by strong ethical standards<br />

and conduct. A new competition compliance programme<br />

has enhanced the integrity and consistency of our business<br />

practices and we will look to build on this successful<br />

approach. During 2006, we will also deliver a strengthened<br />

Code of Ethics.<br />

We have made good progress against the improvement<br />

targets we set last year and as part of our drive for continuous<br />

improvement have developed some challenging, new and<br />

revised targets. Together with the Group’s Board and Executive<br />

Committee, I am committed to ensuring their delivery.<br />

2 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong><br />

Philippe Varin


How do we manage<br />

corporate <strong>responsibility</strong>?<br />

<strong>Corporate</strong> <strong>responsibility</strong> is integral<br />

to the way we do business.<br />

We take our corporate responsibilities seriously.<br />

Sound governance and effective management<br />

systems ensure that we deliver on our promises.<br />

Below we outline some key principles which underpin<br />

our business approach.<br />

Accountability<br />

Our Board provides overall direction for corporate<br />

<strong>responsibility</strong>. Our Executive Committee, chaired by the<br />

Chief Executive, sets health, safety, social and environmental<br />

policies and standards for the Group. It also monitors<br />

their implementation in each of our business units. Four<br />

independent non-executive directors sit on a Board-level<br />

Health, Safety and Environment Committee which reviews<br />

operational performance, anticipates potential future issues<br />

and provides support in setting direction and considering<br />

strategic options for improvement. Further review of our<br />

business safeguards is carried out by our Board Audit<br />

Committee, which also comprises four independent<br />

non-executive directors.<br />

In the end, no matter how effective our systems may be,<br />

individual accountability is critical if we are to achieve the very<br />

high standards we set ourselves. It is a key priority within the<br />

business to develop a positive attitude to safety, health and<br />

the environment amongst all our employees. We achieve<br />

this through our recruitment policies, by ensuring that all<br />

our employees receive appropriate levels of training and<br />

by fostering a culture where responsibilities are delegated<br />

to the point in the organisation at which they can be<br />

implemented most effectively.<br />

Stakeholder engagement<br />

As a large-scale, international business, we maintain active<br />

dialogues with our main stakeholders – customers and<br />

suppliers, investors, shareholders, employees, trade unions,<br />

local communities and the general public. We engage with<br />

each of these in a variety of ways. Many examples of this can<br />

be found throughout this <strong>report</strong>.<br />

Each of our divisions is responsible for implementing Corus’<br />

health, safety, social, ethical and environmental policies. They<br />

are charged with the <strong>responsibility</strong> of putting systems in place<br />

that identify, assess, monitor and control hazards and<br />

minimise all relevant risks. In addition, functional health,<br />

safety, environmental and human resources teams provide<br />

a co-ordinated and effective specialist advisory service,<br />

supporting the Executive Committee divisions and business<br />

units in meeting their responsibilities.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 3


How do we manage corporate <strong>responsibility</strong>?<br />

Management systems<br />

We have established management systems to cover<br />

the quality, health, safety and environmental aspects of<br />

our operations. These systems allow us to manage our<br />

operations effectively. Our systems are, in the main, certified<br />

in accordance with international quality, environmental and,<br />

increasingly, health and safety, management standards.<br />

Management and measurement<br />

As we would for any critical business activity, we manage<br />

our corporate <strong>responsibility</strong> performance against clear<br />

and objective criteria. We set targets for improvement and<br />

then monitor, review and <strong>report</strong> against these targets and<br />

other key performance indicators. Development of these<br />

indicators has been informed by our Group policies, our<br />

commercial, social and environmental objectives, risk<br />

identification and assessment, emerging best practice<br />

and internal/external consultation.<br />

An integrated approach<br />

We believe that the integration of environmental, social and<br />

economic factors within our business processes adds to the<br />

sustainability of our operations. We aim to provide products<br />

and services which contribute positively to society and<br />

improve the quality of life for our employees and the<br />

communities in which we operate.<br />

Our organisational structure<br />

Board*<br />

Executive Committee<br />

Divisions<br />

Business Units<br />

<strong>Corporate</strong> Functions**<br />

*Including Board Health, Safety and Environment; Audit; Remuneration;<br />

and Nominations Committees.<br />

**Including health and safety, environment, internal audit, human<br />

resources and technology/RD&T.<br />

4 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


What does sustainable<br />

development mean for us?<br />

We aim to balance the needs of our<br />

stakeholders by incorporating sustainable<br />

development principles into all aspects<br />

of our business.<br />

Making a positive contribution<br />

We make a significant contribution to society in a variety<br />

of ways – through the employment we provide; as a result<br />

of the inherent social and environmental advantages of the<br />

products we supply; and in our positive interaction with the<br />

communities around our sites.<br />

Lighter, stronger, durable, reusable<br />

and recyclable products<br />

The intrinsic advantages of both steel and aluminium equip<br />

them for a wide range of applications. <strong>Steel</strong>’s excellent<br />

mechanical properties, combined with its high strength,<br />

contribute to improved safety performance. Aluminium offers<br />

lightweight solutions to design problems, allowing for<br />

products that use less raw material and energy.<br />

Recycling is sometimes promoted by new product ‘minimum<br />

recycled content’ criteria; the intention being to boost the<br />

market for recycled materials. However, economic incentives<br />

to recycle already exist for steel and aluminium and high<br />

recycling rates are already achieved.<br />

The steel and aluminium in use today will be reused and<br />

recycled many times in the future. Around 40% of the world’s<br />

production of ‘new’ steel is, in fact, made from recycled steel<br />

without any loss of quality.<br />

Sustainable solutions<br />

Examples of how our products contribute to sustainable<br />

development through improved quality of life and reduced<br />

environmental impact are detailed in the following sections.<br />

Our products are durable, adaptable, reusable and<br />

recyclable. They are essential to modern life – for example<br />

they are used in affordable and energy-efficient modular<br />

homes, as well as in lighter, stronger and safer transport<br />

systems. Through our research and development activities,<br />

we are continuing to develop products which give additional<br />

social and environmental benefits to our customers and<br />

society as a whole.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 5


Sustainable solutions<br />

Construction<br />

The social and environmental advantages of<br />

our products are demonstrated in all forms<br />

of construction, from multi-storey buildings<br />

to light steel framed affordable housing.<br />

Why steel is good for construction<br />

<strong>Steel</strong> buildings are more adaptable than those made using<br />

other materials. <strong>Steel</strong>’s strength provides large open floor<br />

areas, giving flexibility of use throughout the building’s life.<br />

<strong>Steel</strong> buildings are adaptable too, since they can be easily<br />

extended, unbolted and reconnected, modified, repaired,<br />

reused or recycled as necessary.<br />

The environmental advantages of using steel in<br />

construction are:<br />

• 100% recyclability.<br />

• Minimum use of materials.<br />

• Minimum waste – both on-site and in the fabrication shop.<br />

• Ability to fabricate off-site in a controlled environment.<br />

• Adaptability and flexibility over the lifetime of a building.<br />

• Effective end-of-life options such as refurbishment,<br />

dismantling and reuse or recycling.<br />

For the communities surrounding a construction site, steel<br />

also offers:<br />

Sustainable construction<br />

<strong>Steel</strong> construction is inherently sustainable. <strong>Steel</strong>’s<br />

environmental advantages are demonstrated in all forms<br />

of construction, from traditional steel framed buildings used<br />

for multi-storey offices or flats, to more recent developments<br />

with modular systems developed by Corus Living Solutions.<br />

With steel, sustainable construction is a reality with a proven<br />

track record. For example, over 90% of all steel used in any<br />

construction project is reused or recycled at the end of the<br />

building’s useful life.<br />

Recycling in practice<br />

Corus Colors has completed a study of the recycling of<br />

insulated panels, because although steel is inherently<br />

recyclable, it can be used in applications that make it<br />

less readily recyclable. The study highlighted opportunities<br />

for the development of alternative insulation materials that<br />

could combine with steel to make building components<br />

easier to recycle. This ties in with a WRAP (Waste &<br />

Resources Action Programme) sponsored project on the<br />

use of recycled cellulose (newsprint) as an industrial<br />

insulation material, which was completed last year.<br />

• Off-site fabrication and pre-fabrication, which reduces site<br />

construction time.<br />

• Clean and dust-free fabrication and erection.<br />

• Minimised disturbance from construction activities.<br />

6 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Sustainable solutions<br />

Sustainability in action<br />

The old Lackenby open hearth steelmaking<br />

building at Teesside, which was built in 1953,<br />

was demolished in 2004. Following demolition,<br />

100% of the scrap was recovered for making<br />

new steel products. The building contained<br />

over 20,000 tonnes of structural steel and<br />

cladding, which was then recycled at a rate<br />

of about 1,000 tonnes each week over a<br />

five-month period. In order to show how old<br />

steel is recycled into new products and into<br />

higher quality applications, the steel made<br />

during this period was tracked through to end<br />

use. The recycled steel has gone into many<br />

applications. Specific products that were<br />

made using the recycled steel include:<br />

• Structural sections used in the construction of<br />

Heathrow Terminal 5.<br />

• Galvanised strip steel used to make light<br />

steel framed houses.<br />

• Strip steel, supplied to the Royal Mint to<br />

make copper-plated 1p and 2p coins.<br />

• Automotive parts for major car companies,<br />

including body parts for the SAAB-93<br />

Convertible and the new Ford Transit.<br />

The recycling of steel from the Lackenby<br />

building alone has saved enough energy to<br />

supply over 3,700 households with their energy<br />

requirements for one year.<br />

Green on the outside<br />

Kalzip ® Nature Roof, our aluminium roof system, provides<br />

a safe and solid basis for landscaped roofs and garden<br />

roof features. It looks good, provides habitats for insects<br />

and birds, improves thermal and acoustic performance,<br />

consumes CO 2<br />

, reduces rainwater run-off and is recyclable.<br />

We also offer energy-generating photovoltaic systems that<br />

are fully compatible with Kalzip.<br />

Informing construction decision-makers<br />

We have launched a website to enable architects, engineers<br />

and other specifiers to understand the benefits of using steel<br />

in construction (www.sustainablesteelconstruction.com).<br />

Reduced risk of on-site accidents and reduced<br />

life-cycle environmental impact<br />

Colorcoat HPS200 ® , a pre-finished steel product for roof<br />

and wall cladding, reduces the risk of fall-related accidents<br />

as it is maintenance free and eliminates the need for annual<br />

inspections or regular maintenance. Furthermore, with<br />

its unique paint formulation for corrosion resistance and<br />

its 30-year Confidex ® guarantee, Colorcoat HPS200 has<br />

superior durability compared to other pre-finished steels.<br />

This minimises its environmental impact and reduces building<br />

life-cycle costs. The environmental profile of Colorcoat<br />

HPS200 has been published in an Environmental Product<br />

Declaration (EPD), available at www.colorcoat-online.com.<br />

Life-cycle assessment<br />

Corus RD&T has developed a life-cycle assessment tool<br />

that can help design sustainable buildings. The tool, known<br />

as CLEAR, helps designers and decision-makers such as<br />

architects to evaluate and minimise the environmental<br />

impacts of buildings, from manufacture and construction to<br />

use and demolition. A key feature of the tool is the facility<br />

to compare options for a building’s design and materials.<br />

Since a substantial proportion of CO 2<br />

emissions in the UK<br />

arise from the construction, maintenance and occupancy<br />

of buildings, there is a clear need for such tools.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 7


Sustainable solutions<br />

Automotive<br />

Our products help our customers build safer,<br />

fuel efficient and more environmentally friendly cars.<br />

In the global automotive industry, we are using our<br />

technology leadership to help address key environmental<br />

challenges such as cost-effective lightweighting for reduced<br />

CO 2<br />

emissions, passenger/pedestrian safety and the<br />

EU End of Life Vehicles Directive (ELVD). We are also<br />

collaborating with our customers at the implementation<br />

level, to improve environmental performance with a longer<br />

term, sustainable, approach.<br />

Investing in advanced high strength<br />

steel technology<br />

In November <strong>2005</strong>, we announced the investment of £153m<br />

(EUR223m) at Corus Strip Products, IJmuiden, to further<br />

expand and enhance the Group’s product range and<br />

capabilities including the development of advanced high<br />

strength steels for use in lightweight automotive applications.<br />

Stronger, safer, affordable<br />

By combining engineering and materials science know-how<br />

with manufacturing innovations, we are helping the<br />

automotive industry build cars that are not only safer for<br />

drivers, passengers and pedestrians, but which are also<br />

more affordable, fuel efficient and environmentally friendly.<br />

One example is a new technique that has been developed<br />

by our automotive engineers in conjunction with Corus RD&T,<br />

to optimise the crash behaviour of cars built from Corus’<br />

advanced high strength steels. Our ‘Forming to Crash’<br />

technique pre-calculates the additional strength induced into<br />

body panels during metal-forming operations and then feeds<br />

the new, stronger behaviour of the formed metal part<br />

back into a car’s design to assess its influence on crash<br />

performance. As well as improving performance of the<br />

finished car, this approach is helping car makers to minimise<br />

the structural weight and cost of their products.<br />

Another example is the ELVD recycling requirements that<br />

come into force in January 2007. We have been working<br />

closely with car makers, putting the case for using more of<br />

the world’s most recyclable engineering material – steel –<br />

to help them meet their ELVD challenge.<br />

Recyclability<br />

When it comes to car components, sustainability involves<br />

finding more cost-effective ways to use recyclable metals<br />

rather than plastics. A recent vehicle engineering study by<br />

Corus on designs for a clutch pedal in aluminium, plastic<br />

and steel demonstrates that recyclability does not have<br />

to have an adverse effect on cost or performance (see table<br />

on opposite page). Car makers will increasingly need this type<br />

of support from materials suppliers as the ELVD legislation<br />

bites and designers strive to meet 95% recyclability and<br />

takeback requirements in 2015.<br />

Where aluminium is the preferred material, Corus Aluminium<br />

Rolled Products at Duffel, Belgium, has developed new<br />

materials such as Ecolite. As well as being strong and<br />

lightweight, Ecolite uses the same alloy as other panels on a<br />

car – enabling it to be recycled more effectively and efficiently.<br />

8 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Sustainable solutions<br />

Clutch pedal design – inter-material comparison<br />

Design Advantages Disadvantages<br />

Aluminium alloy casting Recyclable, low weight, robust, High cost.<br />

good for complex shapes.<br />

Plastic injection moulding Low weight, good for Poor recyclability, high cost, low<br />

complex shapes.<br />

stiffness, not robust.<br />

<strong>Steel</strong> fabrication Recyclable, low cost, High weight.<br />

strong, robust.<br />

<strong>Steel</strong> pressing Recyclable, low cost, Not suited to complex shapes.<br />

low weight, strong, robust.<br />

Improving passenger and pedestrian safety<br />

A further example of how we are helping automotive<br />

sustainability is in the field of hydroforming. When Metalbages<br />

(an automotive component manufacturer in Pamplona,<br />

Spain) asked for simpler crash load-bearing parts, we<br />

suggested making them from a Corus hydroformed tubular<br />

blank. Instead of the conventional fabrication of such<br />

components from 18 pieces, the Metalbages part will<br />

be made from Corus material formed to final shape in<br />

a single part, and then cut in two. This not only saves on<br />

manufacturing and labour costs, but also reduces both<br />

energy consumption and manufacturing waste.<br />

We have also developed products that will help the highways<br />

infrastructure industry meet new EN1317 European legislation<br />

to improve containment and protection of car occupants in<br />

the event of a crash, including roadside and bridge parapet<br />

safety barriers.<br />

Ending a sticky problem<br />

Corus Colors, Firsteel, in Walsall, West Midlands, has<br />

developed a unique hexavalent chromium-free adhesivecoated<br />

metal, Envirobond. This can replace hexavalent<br />

chromium-based adhesives in a wide range of automotive<br />

applications, enabling car makers both to avoid using this<br />

harmful material and to meet the requirements of the ELVD.<br />

Envirobond will offer an alternative to manufacturers of<br />

components that require pre-applied reactivatable adhesives,<br />

such as weather strips used in, for example, door linings,<br />

sunroofs, bonnets, boots and interior trim.<br />

Components for greener engines<br />

The increasingly stringent demands of Euro 4 and Euro 5<br />

emissions regulations can only be met with the latest high<br />

pressure diesel injection systems. The extreme pressures<br />

and temperatures developed within these systems (2000<br />

bar and 350°C respectively) put pipe, pump and injector<br />

components under huge stress. In response, Corus<br />

Engineering <strong>Steel</strong>s has developed specialist alloys for use<br />

in these latest generation systems – steels that have the<br />

exceptional cleanness needed for accurate machinability,<br />

whilst also giving them great inherent strength and durability.<br />

Greener materials for component makers<br />

Transmission system manufacturers want to improve<br />

process efficiency and remove unnecessary processing.<br />

Corus Engineering <strong>Steel</strong>s is helping by developing new<br />

grades of steel that enable carburising to be carried<br />

out at higher temperatures and under a low pressure<br />

atmosphere. This innovation reduces the total amount<br />

of gas used in the carburising process, and consequently<br />

reduces CO 2<br />

emissions.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 9


Sustainable solutions<br />

Packaging<br />

Our products are fully recyclable<br />

and are highly recycled.<br />

Taking a broad approach to recycling in<br />

the Netherlands<br />

A steel packaging recycling rate of 86% has been achieved<br />

in the Netherlands through continuous improvement in the<br />

recycling chain, resulting in an integrated waste management<br />

system without separate collection programmes.<br />

We are involved in a Dutch initiative to reduce litter.<br />

Because we believe litter problems are more related to<br />

people’s behaviour than the packaging itself, we support<br />

national campaigns run by Nederland Schoon, an<br />

organisation which aims to prevent and combat litter.<br />

As steelmakers we are associated with beverage cans,<br />

which, although they only represent about 2% of all litter,<br />

are nevertheless a visible component of it. We have<br />

increased our anti-litter promotional activities with, for<br />

example, a ‘fishing for litter’ project which encourages fishing<br />

vessels to bring ashore any litter they catch in their nets.<br />

Canned food proves to be a sustainable<br />

top performer<br />

A recent TNO study commissioned for the European steel<br />

packaging organisation (APEAL), has shown that food<br />

packaged in steel cans has a high sustainability performance<br />

compared to other packaging options. The study analysed<br />

the performance of packaged vegetables in terms of<br />

environmental impact, cost to the consumer and nutritional<br />

value. When combining economic and environmental<br />

aspects, vegetables sold in a steel can, frozen in a plastic<br />

bag or fresh-peeled, performed with above average<br />

eco-efficiency. Vegetables in a food pouch, laminate carton<br />

or frozen in a carton performed less well.<br />

Packaging recycling in the UK<br />

Our commitment to recycling, and the inherent recycling<br />

advantages of steel, are demonstrated by our leading role<br />

in increasing the recycling of steel packaging from UK<br />

households. Most metal cans or ‘tins’ used in the home<br />

are actually made of recyclable steel.<br />

Corus <strong>Steel</strong> Packaging Recycling launched a number<br />

of initiatives in <strong>2005</strong> to achieve ever higher recycling<br />

rates for steel packaging. During <strong>2005</strong> we worked with<br />

19 organisations in the UK from Glasgow to Devon, providing<br />

recycling equipment and participating in local events to<br />

improve recycling rates. Over 90% of local authorities now<br />

provide recycling schemes, most of them with infrastructure<br />

provided by Corus. We recycled 7% more packaging in<br />

<strong>2005</strong> compared to 2004, including over 1.5 billion steel cans.<br />

The Government’s recycling rate information for <strong>2005</strong> shows<br />

that 51.4% of all steel packaging in the UK was recycled –<br />

compared to 46% in 2004, and 25% in 1998.<br />

Sustainable and food safe<br />

product development<br />

Protact ® consists of a steel substrate and a VOC-free<br />

polymer coating. Protact is recyclable, meets or exceeds<br />

food-contact standards and is the best available food-contact<br />

packaging solution.<br />

10 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Sustainable solutions<br />

Consumer products<br />

We work closely with our customers and suppliers<br />

to develop products that are better for consumers<br />

and the environment.<br />

Improved environmental performance<br />

through use of pre-finished steel<br />

By manufacturing high-performance coated products in a<br />

controlled and continuous operation, we are better able<br />

to manage the environmental impact of the process.<br />

Not only do pre-finished steels provide a greater level of<br />

consistency and quality than batch-produced products,<br />

but the economies of scale we achieve by concentrating<br />

on the coating operation mean that we can employ the<br />

latest management systems and environmental<br />

protection technologies.<br />

Compliance with WEEE/RoHS Directives<br />

Our products comply with the requirements of the EU<br />

Restriction on Hazardous Substances (RoHS) Directive.<br />

We have worked extensively with both suppliers and<br />

customers to refine our production processes and eliminate<br />

the need for hexavalent chromium-based pre-treatment of<br />

pre-finished steels. For example, the supply of hot dipped<br />

galvanised steel is now available in a WEEE/RoHS compliant<br />

form, following the introduction of new passivation systems.<br />

Guaranteed performance with Assure ®<br />

Assure is a pre-finished steel with antibacterial protection.<br />

It has been developed to tackle the risk posed by<br />

cross-contamination in food processing and healthcare<br />

environments such as kitchens, cold stores, operating<br />

theatres, washrooms and hospital wards. Assure is effective<br />

against a broad range of potentially harmful organisms and<br />

hospital acquired infections, including MRSA, E-coli and<br />

salmonella.<br />

Reduced resource use<br />

We have developed innovative new coating systems that<br />

now meet the corrosion requirements of end users without<br />

the need for a protective zinc layer. This development<br />

reduces the overall level of natural resources utilised in<br />

the product, thereby reducing its environmental impact,<br />

as well as making it a commercially attractive option for<br />

more applications.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 11


How do we<br />

care for our<br />

people?<br />

We are proud of our international<br />

workforce and their well-being is<br />

a high priority. We are continuing<br />

to improve our health and safety<br />

performance, and in <strong>2005</strong> our<br />

lost time injuries reduced by 24%.<br />

12 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


People<br />

Health and safety<br />

Policy statement<br />

• We believe that all our activities can be undertaken safely<br />

and we will never compromise safety.<br />

• We will conduct our business in a way that ensures the<br />

health and well-being of our employees, contractors and<br />

any person affected by our activities.<br />

• We know that continuous improvement of our health and<br />

safety performance is essential for a successful Company.<br />

• Everyone in Corus has <strong>responsibility</strong> for their own and<br />

others’ health and safety, but overall accountability lies<br />

with management.<br />

• We encourage a health and safety culture in Corus.<br />

Policy principles<br />

The principles which demonstrate how we implement<br />

our policy are:<br />

(1) Leadership<br />

Lead by example<br />

People at all levels in Corus have <strong>responsibility</strong> for their own<br />

health and safety and should set an example for others.<br />

Management is accountable for health and safety, and<br />

managers will demonstrate leadership of health and safety<br />

through personal example.<br />

(2) Hazards, risks and control measures<br />

It’s worth not taking the risk<br />

We will identify the hazards and risk associated with<br />

our activities, starting with our major risks. We will put<br />

in place appropriate control measures and challenge<br />

them in the context of change, so that we aim for<br />

continuous improvement.<br />

(3) Health and well-being<br />

Working for a healthy future<br />

We will promote and improve the health and well-being<br />

of all Corus employees.<br />

(4) Competence and behaviour<br />

Understanding is the key to safe behaviour<br />

We will ensure that all our employees are trained so that<br />

they are professionally skilled and qualified for their jobs<br />

and thereby can contribute to an improved health and<br />

safety performance. We will select contractors who can<br />

demonstrate competence and effectiveness.<br />

(5) Incident analysis and prevention<br />

It could have been avoided… try telling the kids that<br />

We will ensure work-related incidents and near misses<br />

are <strong>report</strong>ed, investigated and analysed to prevent<br />

recurrence. Our investigations will focus on root causes<br />

and recommendations will be shared and implemented<br />

across the Company.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 13


How do we care for our people?<br />

Figure 1 Lost time injury frequency –<br />

Corus Group employees<br />

16<br />

12<br />

8<br />

4<br />

0<br />

Figure 2 Fatal accidents – Corus Group<br />

16<br />

12<br />

8<br />

4<br />

0<br />

2000 2001 2002 2003 2004 <strong>2005</strong><br />

2000<br />

2001 2002 2003 2004 <strong>2005</strong><br />

■ Corus employees ■ Contractors<br />

(6) Sharing and learning<br />

I wish I’d said something… I feel so responsible<br />

Everyone in Corus is responsible for sharing good practice<br />

as well as learning from near misses. Sharing experiences<br />

with others can help prevent incidents. We all have a duty<br />

to intervene.<br />

(7) Contractors and joint ventures<br />

A good relationship is based on trust<br />

Our health and safety standards apply equally to contractors<br />

and Corus employees. We believe our joint venture companies<br />

should aspire to the Corus health and safety standards.<br />

(8) Monitoring, audit and review<br />

There’s always room for improvement<br />

We will establish systems for tracking our performance.<br />

We will regularly conduct internal and external audits of<br />

our risk control measures and management systems.<br />

We will monitor behaviours at all levels to ensure we<br />

create a successful health and safety culture in Corus.<br />

Performance<br />

Our primary key performance indicator is lost time injury<br />

frequency (LTIF). Our performance data, presented in<br />

Figure 1, shows an improvement in LTIF from 3.8 in 2004 to<br />

2.9 in <strong>2005</strong>. This reflects the continued commitment of all our<br />

business units to improve their health and safety performance<br />

and reduce accident rates. It also demonstrates that we have<br />

been successful in maintaining recognition of the importance<br />

of health and safety across the Group in <strong>2005</strong>.<br />

14 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong><br />

Despite the improvement in LTIF, the number of fatalities at<br />

our sites, presented in Figure 2, is still unacceptable and we<br />

are continuing to take action to improve this.<br />

In <strong>2005</strong>, our sickness absence rate (the number of hours<br />

lost as a result of sickness or injury as a proportion of total<br />

work hours) was 4.2%, which was unchanged from 2004.<br />

The Executive Committee is actively considering how to<br />

further improve the focus on occupational health and hygiene.<br />

Key developments in <strong>2005</strong><br />

‘Time out for safety’<br />

This programme was developed in response to the two<br />

fatal accidents at our sites in <strong>2005</strong>. All employees and key<br />

contractors attended workshops to share lessons from<br />

the accidents, to identify the potential for serious accidents<br />

in their own departments and to agree actions they could<br />

take to avoid them.<br />

Executive Committee safety tours<br />

156 Executive Committee safety tours were carried out<br />

during <strong>2005</strong>, exceeding our target of 140. These tours<br />

demonstrate leadership, provide motivation, recommend<br />

priorities for improvement and help share good practice<br />

across the Group.<br />

Competence<br />

During <strong>2005</strong>, our 400 most senior managers completed a<br />

Safety & Health Excellence Programme developed by our<br />

internal experts and DuPont. During the two-day programme,<br />

each senior manager developed their own personal action<br />

plan, setting out their priorities for making Corus a safer,<br />

healthier, place to work.


How do we care for our people?<br />

Case study<br />

JAPAC Safety Representative of the Year<br />

The Joint Accident Prevention Advisory Committee (JAPAC) is<br />

a collaboration between Corus senior management and the<br />

main UK trade unions representing steel industry employees.<br />

Each year, JAPAC has an award for the Safety Representative<br />

of the Year.<br />

The <strong>2005</strong> winner was Geoff Waterfield, a Trade Union Safety<br />

Representative at Teesside Cast Products. He was nominated for<br />

his professional approach and excellent knowledge of health and<br />

safety matters. In his capacity as a JAPAC facilitator, he gave up<br />

his own time and personal commitments to facilitate training at<br />

Corus Tubes, Corby.<br />

Case study<br />

Chief Executive’s Health and Safety Award<br />

This year’s award was given to the Corus Distribution & Building<br />

Systems UK Strip Processing Centre at <strong>Steel</strong>park, Wednesfield,<br />

for two years’ performance with no lost time injury. The volume<br />

of steel movement on site is impressive – 15,000 wide coils<br />

arrive, and 240,000 slit coil items are dispatched, every year.<br />

Over 100 heavy goods vehicles pass through the site every day.<br />

Committed leadership, an effective Health & Safety Committee<br />

and the involvement of everyone on site, contributed to this<br />

achievement. Learning from their own incidents and from best<br />

practice throughout Corus, the team focused on preventing<br />

back injuries through posture training, ergonomic assessments<br />

and physiotherapy.<br />

Case study<br />

IJmuiden steel plant safe and sound<br />

The IJmuiden Basic Oxygen <strong>Steel</strong>making (BOS) Plant has clocked<br />

up over three million working hours over two years without having<br />

a lost time injury.<br />

‘I’m proud of our record,’ says Pieter Broersen, Works Manager.<br />

‘Everyone is responsible for each other’s safety. We say that our<br />

job here is making safe steel.’<br />

The safety culture is so heavily ingrained that people will <strong>report</strong><br />

their own mistakes. In a typical week, there are 15–25 different<br />

<strong>report</strong>s, covering issues such as comments on work permits for<br />

contractors, people not wearing safety glasses and the installation<br />

of machinery.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 15


How do we care for our people?<br />

Standards<br />

We launched a further three health and safety standards in<br />

<strong>2005</strong>: managing the health and safety of contractors; safe<br />

working procedures; and panels of enquiry for investigating<br />

serious incidents. Each is supported by a package of<br />

additional information and training. These standards are in<br />

addition to eight health and safety standards issued in 2004.<br />

Maturity tool<br />

In 2004 we developed a tool to help businesses assess<br />

the maturity of their health and safety performance against<br />

the eight principles of the Corus Health and Safety Policy.<br />

We used it again in <strong>2005</strong> to help businesses identify priorities<br />

for their 2006 health and safety improvement plans.<br />

Sharing good practice<br />

Bulletins are used to share learning points about incidents.<br />

We have also developed an intranet site dedicated to health<br />

and safety communication.<br />

Performance indicators<br />

In line with the target we set last year, employee total<br />

recordable incidents and contractor lost time injury frequency<br />

have been established as new key performance indicators.<br />

Data is available for all our sites from January <strong>2005</strong> and will<br />

be used as a baseline for future measures of performance.<br />

Case study<br />

Good practice in health<br />

Myriad, a Corus Colors plant in France, has taken a<br />

preventative approach to health and safety by integrating<br />

ergonomics into the development stage of projects.<br />

This approach has required close co-operation between<br />

engineers, operators and ergonomists.<br />

For example, in a recent initiative, the plant looked at a point<br />

in the continuous paint line where decoilers have to be<br />

manipulated. The team’s recommendations included lightening<br />

the load of mandrels from 45kg to 17kg, adapting the<br />

man-machine interface and initiating a change in working<br />

methods, giving operators greater scope to plan their work.<br />

16 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we care for our people?<br />

People<br />

Valuing our workforce<br />

Our people and culture<br />

In an ultra-competitive world, success does not just depend<br />

on employees’ expertise and effort. It emerges from their<br />

personal engagement with the company’s goals and guiding<br />

principles. With this in mind, we are developing leadership<br />

and working practices that aim to involve and engage<br />

all of our employees, and a culture in which continuous<br />

improvement becomes a way of life. This involves nothing<br />

short of changing the way we work. A Group-wide<br />

continuous improvement programme, based on the principles<br />

of lean thinking, has now been launched in support of<br />

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

developing our people, harnessing their talents and becoming<br />

an employer of choice that we will be able to attract and<br />

retain the best people, passionate people, to successfully<br />

deliver our business goals.<br />

Organisational responsibilities<br />

In <strong>2005</strong>, the Executive Committee reviewed the way we<br />

operate, clarifying the responsibilities of divisions, business<br />

units and functions. In summary, divisions and business<br />

units are responsible for profit and loss; lead divisions<br />

co-ordinate our approach to key markets; while some<br />

aspects of our commercial operations are co-ordinated from<br />

the centre. Some functional activities are managed centrally<br />

in order to capture the benefits of scale, expertise and<br />

efficiencies for the whole Group.<br />

Case study<br />

Lean thinking at IJmuiden<br />

In common with other Corus sites, a new continuous<br />

improvement programme based on lean thinking has been<br />

established at IJmuiden. This follows the successful World<br />

Class IJmuiden project. The aim is to involve all employees in<br />

continuous improvement activities by the end of 2007.<br />

Continuous improvement based on lean thinking is helping us to:<br />

• Look at ourselves through the customer's eyes.<br />

• Optimise and streamline our business processes through the<br />

elimination of waste.<br />

• Get the whole organisation moving in the same direction.<br />

• Further improve our safety record.<br />

• Embed the concept of continuous improvement within the<br />

organisational culture involving all employees.<br />

• Speak one language.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 17


How do we care for our people?<br />

1<br />

Figure 3 Employees by region<br />

4 5 67 8 At end December <strong>2005</strong><br />

5 1<br />

Figure 4 Employees by division<br />

At end December <strong>2005</strong><br />

4<br />

3<br />

1 UK 24,000<br />

2 The Netherlands 11,400<br />

3 Germany 4,900<br />

4 France 1,600<br />

5 Belgium 1,700<br />

6 Canada 800<br />

7 USA 600<br />

8 Other countries 2,300<br />

Total 47,300<br />

3<br />

1 Strip Products 22,500<br />

2 Long Products 11,800<br />

3 Distribution & Building Systems 5,700<br />

4 Aluminium 5,700<br />

5 Central functions and others 1,600<br />

Total 47,300<br />

2<br />

2<br />

As mentioned later in the business ethics section, common<br />

rules are set through Group Policy Documents (GPDs) and<br />

Group Standards. GPDs address major corporate matters,<br />

risk areas and processes; while Group Standards set out<br />

what is expected from business units in implementing<br />

The Corus Way.<br />

Staffing<br />

We employed some 47,300 people at the end of <strong>2005</strong>.<br />

While recruitment of people with relevant skills and expertise<br />

remains a challenge, we are proud to have been included in<br />

the top 100 best graduate employers in the UK. This is in the<br />

face of stiff competition from global companies in all business<br />

sectors, including banks and consulting companies. In the<br />

Netherlands, graduates consider Corus to be the best<br />

manufacturing employer, and the 15th best employer<br />

overall (see case study on opposite page).<br />

Training and development<br />

We are continuing to invest in the training and development<br />

of our employees. Most training is delivered locally,<br />

supporting business unit strategies. Examples of local<br />

training initiatives include:<br />

• Training of operating staff to support business restructuring.<br />

• Leadership training for shift controllers, to encourage a<br />

continuous improvement culture.<br />

• Training and education of apprentices to replace<br />

future retirees.<br />

At Group level, the commercial function delivered account<br />

management training to sales managers and customer-facing<br />

staff across the Company. Furthermore, the introduction of a<br />

financial shared service centre in the UK led to over 100 staff<br />

receiving specialised IT skills training.<br />

The focus on continuous improvement based on lean<br />

thinking has been supported by awareness workshops<br />

for all management teams. To ensure a consistently high<br />

standard of delivery across our business units, we are<br />

also training continuous improvement coaches: around<br />

150 coaches completed a six-week programme in <strong>2005</strong>,<br />

with 100 more being trained in 2006.<br />

As described earlier, to improve our health and safety<br />

performance, the Executive Committee sponsored<br />

a two-day Safety and Health Excellence Programme<br />

for 400 Group Senior Managers. The programme<br />

focused on root-cause thinking, leadership behaviours<br />

and contractor management.<br />

Employee relations and communication<br />

Our consultation processes continue to follow our well<br />

established practices. We meet regularly with our European<br />

Works Council, and we have consultative structures and<br />

processes at country and business unit levels. In the UK,<br />

an information and consultation agreement with national<br />

unions provides a framework for consultation on strategic<br />

issues, and for regular updates on business performance.<br />

18 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we care for our people?<br />

Female<br />

Male<br />

Figure 5 Gender breakdown<br />

At end December <strong>2005</strong><br />

Male 43,000<br />

Female 4,300<br />

Estimated based on data from over 95% of<br />

our operations<br />

NL<br />

D<br />

BR<br />

B<br />

UK<br />

F<br />

Figure 6 Executive Committee<br />

international breakdown<br />

At end December <strong>2005</strong><br />

Belgian (B) 1<br />

Brazilian (BR) 1<br />

British (UK) 4<br />

Dutch (NL) 1<br />

French (F) 1<br />

German (D) 1<br />

Total 9<br />

In addition to day-to-day business communication, we make<br />

efforts to increase formal, two-way communication. To obtain<br />

employees’ views on a range of issues, we regularly run<br />

focus groups. We work with around 300 employees from<br />

all levels and functions, and aim to cover all businesses.<br />

Extending the good practices with employee surveys in<br />

some of our business units, we have established Group-wide<br />

guidelines, with each business unit expected to run regular<br />

employee surveys. In <strong>2005</strong>, surveys were conducted in nine<br />

business units and at head office, which, together with our<br />

2004 surveys, covers the majority of our workforce.<br />

Recognition<br />

Our annual Chief Executive’s Awards were established to<br />

recognise outstanding contribution to delivering The Corus<br />

Way. There are three categories: health and safety; best<br />

supplier to best customer; and world class processes.<br />

The calibre of entries during <strong>2005</strong> was extremely high and<br />

competition was tough. The winner of the health and safety<br />

award in <strong>2005</strong> was Corus Distribution & Building Systems<br />

UK, Strip Processing Centre at <strong>Steel</strong>park, Wednesfield<br />

(see case study on page 15). Judges were particularly<br />

impressed at the enthusiasm and breadth of creativity of its<br />

employees. The best supplier to best customer award was<br />

won by Corus Packaging Plus for its collaboration with Heinz.<br />

The world-class processes award went to Corus Rail at<br />

Hayange, France.<br />

Case study<br />

Becoming an employer of choice<br />

at target universities<br />

Attracting suitably qualified graduates is a key priority<br />

for us. We have been working to raise awareness of the<br />

benefits of a career with Corus at our target universities and<br />

there is evidence that this campaign is bearing fruit.<br />

In <strong>2005</strong>, Corus was ranked in The Times Top 100 preferred<br />

employers for UK graduates. There is still some way to go<br />

before we reach our target of being a top 20 preferred employer<br />

at selected universities, but this is an important first step.<br />

In the Netherlands, graduates consider Corus to be the best<br />

manufacturing employer and the 15th best employer overall.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 19


How do we<br />

protect the<br />

environment?<br />

Concern for the environment<br />

is one of our key business<br />

principles. Our objectives are<br />

to adopt sustainable practices<br />

and to continuously improve<br />

our performance.<br />

20 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Environment<br />

Policy statement<br />

We are committed to minimising the environmental impact<br />

of our operations and our products through the adoption<br />

of sustainable practices and continuous improvement<br />

in environmental performance.<br />

Policy principles<br />

Compliance – to meet the requirements of relevant<br />

legislation in the countries and regions in which we operate.<br />

Management systems – to implement effective<br />

environmental management systems and to ensure<br />

the environmental awareness of our workforce,<br />

encouraging every employee to act in an environmentally<br />

responsible manner.<br />

Continuous improvement – to improve the environmental<br />

performance of our processes and products through research<br />

and development of new technologies, preventing and<br />

reducing emissions and releases, minimising waste and<br />

controlling noise.<br />

Sustainable development – to contribute to sustainable<br />

development by using energy, water and raw materials more<br />

efficiently, thus optimising our use of natural resources.<br />

Product stewardship – to promote the recovery, recycling<br />

and reuse of our products, and to work with our customers<br />

to understand the environmental effects of our products<br />

throughout their life-cycle.<br />

Monitoring and <strong>report</strong>ing – to monitor/audit environmental<br />

performance and to <strong>report</strong> progress on policy objectives and<br />

improvement targets on a regular basis.<br />

Suppliers and contractors – to encourage suppliers<br />

and contractors to behave in a responsible manner and to<br />

maintain sound environmental practices.<br />

Local communities and biodiversity – to respond to the<br />

concerns of local communities and other interested parties on<br />

environmental issues and to respect the general environment<br />

and wildlife habitats in and around our sites.<br />

Performance<br />

Scope<br />

The emissions data presented in this section of the <strong>report</strong><br />

covers all Corus Group manufacturing sites with the<br />

exception of a small number of facilities within Corus<br />

Distribution & Building Systems, which only make<br />

a minor contribution to our overall emissions inventory.<br />

Compliance<br />

Our operations are complex and varied, and our stakeholders<br />

have ever-increasing expectations about our performance.<br />

This has been reflected in a general tightening of emission<br />

limits over recent years. Nevertheless, our compliance with<br />

statutory limits on both air and water emissions improved<br />

during <strong>2005</strong> and we only narrowly missed our target of<br />

99% compliance at the end of the year. Two factors were<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 21


How do we protect the environment?<br />

Figure 7 Compliance with emission limits<br />

100%<br />

99%<br />

98%<br />

97%<br />

96%<br />

95%<br />

Figure 8 Energy consumption<br />

(GJ/tonne steel)<br />

21<br />

20<br />

19<br />

18<br />

17<br />

16<br />

<strong>2005</strong><br />

Q1<br />

<strong>2005</strong><br />

Q2<br />

■ Continuous measurements<br />

(air and water combined)<br />

■ Spot measurements<br />

(air and water combined)<br />

■ <strong>2005</strong> target<br />

<strong>2005</strong><br />

Q3<br />

<strong>2005</strong><br />

Q4<br />

1999<br />

2000<br />

2001 2002 2003 2004 <strong>2005</strong><br />

(i) 1999 data is estimated.<br />

(ii) The small increase in <strong>2005</strong>, compared to the<br />

two previous years, was due to an increase in<br />

the proportion of BF-route steel in our total<br />

annual production mix.<br />

significant in this: the establishment of high-level corrective<br />

action plans at sites with an individual compliance rate<br />

worse than 96%; and the continuing scrutiny of compliance<br />

performance at Executive Committee and Board Health,<br />

Safety and Environment Committee meetings. Figure 7<br />

shows our improving compliance performance. We recognise<br />

that we need to maintain and improve on this trend, which<br />

is why we have retained our target of 99% compliance<br />

for 2006.<br />

There were no environmental prosecutions or fines in relation<br />

to our activities during <strong>2005</strong>. However, a small number<br />

of incidents occurred during the year which resulted in<br />

regulatory action being taken against us:<br />

• The Environment Agency issued enforcement notices<br />

relating to procedural breaches of the Pollution Prevention<br />

and Control (PPC) permit at Corus Tubes, Corby, and to<br />

maintenance arrangements for the steel melting shop fume<br />

extraction system at Corus Engineering <strong>Steel</strong>s, Rotherham.<br />

• Following complaints from residents in the vicinity of<br />

Teesside Cast Products, Redcar, the Environment Agency<br />

varied the PPC permit to include improvements to the<br />

unloading of iron ore cargoes at the wharf.<br />

Climate change and energy use<br />

The issue of climate change became increasingly prominent<br />

during <strong>2005</strong>, as a consensus developed among the scientific<br />

community about the role of man-made CO 2<br />

emissions<br />

in global warming. Although typical CO 2<br />

emissions per tonne<br />

of steel are now around 50% lower than 40 years ago,<br />

the steel industry is still a significant contributor to global<br />

industrial CO 2<br />

emissions, and is therefore contributing to<br />

achieving a worldwide solution. Corus is a major partner<br />

in ULCOS (ultra-low CO 2<br />

steelmaking), a European research<br />

project to investigate technologies that could substantially<br />

reduce CO 2<br />

emissions in the steelmaking process (see case<br />

study on opposite page).<br />

In the short to medium term, our emphasis is on reducing<br />

emissions incrementally, wherever this can be achieved<br />

in a cost-effective manner. Although more than 80% of<br />

emissions from our integrated steelworks are irreducible<br />

process emissions, our combustion-related CO 2<br />

emissions<br />

are closely linked with energy use, and over recent years, we<br />

have been successful in significantly reducing the amount<br />

of energy that we use to make each tonne of steel. This is<br />

shown in Figure 8. The restructuring of UK operations, which<br />

involved rationalising our steelmaking activities from six sites<br />

in 2001 to four at the end of <strong>2005</strong>, has played a substantial<br />

part in this. The small increase in energy intensity in <strong>2005</strong><br />

was attributable to a temporary reduction in production<br />

levels in our electric arc furnace (EAF) plants which use<br />

less energy per tonne of liquid steel produced. Production<br />

via the EAF-route is projected to increase in 2006 following<br />

the completion of the rationalisation programme.<br />

22 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we protect the environment?<br />

Case study<br />

ULCOS – ultra low CO 2<br />

steelmaking<br />

Corus is a major partner in the ULCOS project, which is<br />

investigating a number of potential breakthrough technologies,<br />

such as recycling blast furnace gas, CO 2<br />

capture and<br />

sequestration, electrolysis, use of hydrogen as a reductant<br />

and utilisation of biomass.<br />

During <strong>2005</strong>, we have been actively involved through our<br />

research and development expertise and project management<br />

capabilities. Substantial progress has been made in the evaluation<br />

and screening of potential combinations of new process<br />

technologies and future energy scenarios.<br />

Case study<br />

Conserving resources through the use of<br />

secondary raw materials<br />

Blast furnace slag, a by-product from the production of pig iron in<br />

a blast furnace, was once regarded as a waste and often ended<br />

up being landfilled. However, across Corus, we have optimised<br />

our ironmaking processes and invested in granulation facilities<br />

in order to provide tightly-specified slag products which are now<br />

used as a valuable secondary raw material in the cement industry.<br />

This conserves non-renewable resources such as limestone,<br />

reduces the amount of material that would otherwise have to be<br />

landfilled, and significantly reduces emissions of CO 2<br />

.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 23


How do we protect the environment?<br />

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

Substance 1999 <strong>2005</strong><br />

CO 2<br />

* 32,500,000 28,400,000<br />

PFCs 12.3 9.3<br />

Particulates 18,500 12,600<br />

PM10s no data 5,800<br />

Dioxins 45g 31g<br />

PAHs 7.5 3.8<br />

Benzene 130 64<br />

NMVOCs 1,700 1,780<br />

NO X<br />

32,500 23,700<br />

SO 2<br />

40,000 26,600<br />

Substance 1999 <strong>2005</strong><br />

CO 552,000 392,000<br />

Fluorides 206 165<br />

Arsenic 0.76 0.42<br />

Cadmium** 1.03 1.08<br />

Chromium 6.3 2.8<br />

Copper 5.4 3.5<br />

Lead 78.9 66.4<br />

Mercury** 0.43 0.49<br />

Zinc 93.9 31.7<br />

*Not comparable to EU ETS allocations – different <strong>report</strong>ing scope.<br />

**The apparent increase compared to 1999 for mercury and cadmium is due to improved monitoring<br />

and extended <strong>report</strong>ing.<br />

Table 2 Releases to water – Corus Group<br />

(tonnes/year)<br />

Substance 1999 <strong>2005</strong><br />

Suspended solids 3,500 1,660<br />

Arsenic 1.27 0.23<br />

Cadmium 0.14 0.10<br />

Chromium 2.01 1.15<br />

Copper 1.18 0.64<br />

Lead 4.64 3.20<br />

Mercury 0.06 0.01<br />

Nickel 1.79 1.54<br />

Zinc* 8.18 15.78<br />

*The apparent increase compared to 1999<br />

for zinc is due to improved monitoring and<br />

extended <strong>report</strong>ing.<br />

Linked with the restructuring programme, there was<br />

significant investment at Corus Strip Products, Port Talbot,<br />

where a new turbo alternator has increased our capacity to<br />

generate electrical power from process-arising gases.<br />

Although the scope to make further energy efficiency<br />

improvements at our major sites is decreasing, our smaller<br />

manufacturing facilities continue to provide us with<br />

opportunities for improvements. For example:<br />

• At Corus Colors, Yasan, Turkey, we have invested in a<br />

system that recovers waste heat from paint-curing oven<br />

exhaust gas and uses this to heat the alkaline detergent in<br />

pre-treatment tanks.<br />

• At Corus Special Strip, Düsseldorf, our EUR20m (£13.7m)<br />

investment in a new annealing facility is projected to deliver<br />

a 30% improvement in energy efficiency.<br />

As stated earler, we are involved in the EU Emissions Trading<br />

Scheme, which sets a cap on CO 2<br />

emissions from various<br />

industrial sectors and aims to establish a market in CO 2<br />

allowances. Our targets are challenging but achievable<br />

and we expect to meet our environmental obligations over<br />

the course of the first phase of the scheme (<strong>2005</strong>–2007).<br />

In <strong>2005</strong>, there was a small surplus of allowances<br />

(approximately 5% for the Group in total), arising<br />

principally because of production cuts in the second<br />

half of the year to alleviate high inventories in the steel<br />

market. The likely outcome in 2006 and 2007 is still uncertain.<br />

Primary aluminium production is a significant source of<br />

perfluorocarbons (PFCs), which are potent greenhouse gases.<br />

Our two aluminium smelting plants, in the Netherlands and<br />

Germany, have reduced their PFC emissions by over<br />

90% over the past 15 years through significant process<br />

developments. Both our steelmaking and aluminium<br />

smelting operations are now close to the point where<br />

greenhouse gas emissions cannot be reduced further<br />

using existing, proven, technology.<br />

Emissions to air<br />

We are committed to understanding the impact of our<br />

emissions on the environment, and achieve this through a<br />

programme of measurement and modelling. For example,<br />

at Corus Construction & Industrial, Scunthorpe, we have<br />

installed an Aloatech camera system to continuously monitor<br />

and record emissions from the steel plant. This will enable us<br />

to take corrective action more promptly when required.<br />

Measurements have shown that our major production<br />

facilities generally do not make a significant contribution to<br />

airborne levels of pollutants compared to background levels.<br />

European air quality objectives are currently being met in the<br />

areas around all of our major facilities, with the exception<br />

of PM10s in the Port Talbot and Scunthorpe areas, where we<br />

are working closely with the respective local authorities to<br />

improve our understanding of the extent of the problem,<br />

and our contribution to it.<br />

We are committed to reducing our impact whenever it is<br />

practicable and cost-effective to do so. Of the £423m<br />

(approximately EUR617m) capital investment across the<br />

Group during <strong>2005</strong>, we estimate that at least 10% was<br />

related to schemes that improved our energy efficiency or<br />

reduced our environmental impact in some other way.<br />

24 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we protect the environment?<br />

Figure 9 Emissions to air relative to 1999<br />

(per tonne of steel unless otherwise stated)<br />

110<br />

100<br />

90<br />

80<br />

70<br />

60<br />

1999 2000 2001 2002 2003 2004 <strong>2005</strong><br />

■ CO 2<br />

■ Particulates ■ Dioxins<br />

■ SO 2<br />

■ NO x<br />

■ Fluorides/tonne aluminium<br />

Figure 10 Emissions to water relative to 1999 (per tonne of steel)<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

1999 2000 2001 2002 2003 2004 <strong>2005</strong><br />

■ Suspended solids ■ Arsenic ■ Lead<br />

The apparent increase in lead emissions compared to 2003 may be due to<br />

improved monitoring programmes and is currently being investigated.<br />

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

year to reduce atmospheric emissions by improving the sinter<br />

plant waste gas cleaning system at Corus Strip Products,<br />

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

Strip Products, IJmuiden, in emissions control at the coke<br />

ovens and at the hot strip mill.<br />

Table 1 presents emissions data for <strong>2005</strong>, compared to data<br />

from 1999. Figure 9 shows normalised emissions data for our<br />

most significant releases to air from 1999 to <strong>2005</strong>.<br />

Water<br />

<strong>Steel</strong>making is relatively water-intensive, although most of<br />

this is used for non-contact cooling and is returned directly to<br />

the watercourse from which it was abstracted. A significant<br />

proportion of the water that we use is taken from estuarine<br />

sections of rivers, where its abstraction has very little impact<br />

in terms of freshwater resource depletion. Our large sites<br />

have complex water distribution systems, which use and<br />

reuse water from multiple sources, including abstracted water<br />

from wells, rivers, canals and reservoirs, stored rainwater and<br />

potable water. For this reason, we cannot accurately estimate<br />

the net consumption of freshwater in our processes.<br />

Our water intensity varies, often in proportion to local supply<br />

constraints. Our integrated steelworks at Corus Construction<br />

& Industrial, Scunthorpe, is our least water-intensive, being<br />

our only inland integrated works. Here, we estimate that<br />

we consume approximately 3m 3 of water per tonne of<br />

steel produced.<br />

Conservation of freshwater and potable water is a key<br />

objective, and one in which we have made considerable<br />

improvements in recent years. For example, we have<br />

instigated a water reuse and reduction project at Corus<br />

Strip Products, IJmuiden. The aims of the project, which<br />

began in 2004 and is still ongoing, include the reduction of<br />

groundwater abstraction at the strip mills, and the application<br />

of Europe-wide best available techniques for the use of water<br />

in cooling systems.<br />

To minimise the impact of our effluents and achieve effluent<br />

quality limits consistently, we employ a complex range<br />

of biological, chemical and physical effluent treatment<br />

technologies at many of our plants. We also use a wide<br />

range of pollution control measures to ensure that fluids<br />

such as oils, acids and other chemicals are stored and<br />

used properly in contained systems.<br />

Table 2 presents water discharge data for <strong>2005</strong> and<br />

compares this with data from 1999. Data for some of the<br />

most important pollutants in our effluents is presented in<br />

normalised form in Figure 10.<br />

Measurement<br />

We are committed to continuously improving the quality of<br />

our emissions data and our impact assessments.<br />

For example, the Environment Department at Corus RD&T,<br />

Rotherham, has responded to a requirement for emission<br />

compliance measurements at our sites in England and<br />

Wales to be performed by personnel and organisations<br />

accredited under the Environment Agency’s MCerts scheme.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 25


How do we protect the environment?<br />

Case study<br />

Restoring contaminated land for future<br />

generations at Thomas <strong>Steel</strong> Strip<br />

We have substantial landholdings, which we regard as a valuable<br />

resource for future generations. Where the condition of historically<br />

degraded land constitutes a potential environmental risk, we take<br />

steps to manage this.<br />

Seven acres of effluent lagoons at Corus Special Strip, Warren,<br />

Ohio, had remained open but inactive since the mid-1980s.<br />

Working closely with the Ohio Environmental Protection Agency,<br />

we agreed a way to remediate and close these lagoons,<br />

permanently removing the environmental risk. The work was<br />

completed in <strong>2005</strong>. The restored areas now serve as habitats<br />

for various types of wildlife.<br />

Case study<br />

Shotton rail-head<br />

A new warehouse facility at Corus Colors, Shotton, will help<br />

to increase the volume of material we ship by rail – a far more<br />

efficient and sustainable transportation method when compared<br />

with the emissions and local congestion associated with<br />

road transport.<br />

Coils of uncoated steel strip averaging 18 tonnes are delivered<br />

by rail into the new warehouse up to three times each day, and<br />

are automatically conveyed to the entry sections of the hot<br />

dip galvanising lines for zinc coating. The warehouse, part of<br />

Shotton’s regeneration programme to improve sustainability,<br />

is one of the largest steel coil storage facilities in Europe.<br />

26 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we protect the environment?<br />

Figure 11 Waste to landfill<br />

(ktonnes per annum)<br />

1,200<br />

1,000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

1999 2000 2001 2002 2003 2004 <strong>2005</strong><br />

■ Additional waste to landfill associated with<br />

one-off events<br />

■ Waste to landfill excluding one-off events<br />

Table 3 Resource use<br />

(million tonnes/year)<br />

1999 <strong>2005</strong><br />

<strong>Steel</strong> production 21.0 18.9<br />

Primary aluminium<br />

production 0.2 0.2<br />

Iron ore 29.0 26.0<br />

Coal 12.0 11.0<br />

Alumina 0.5 0.4<br />

Data is approximate and is shown only to<br />

illustrate typical usage.<br />

During <strong>2005</strong>, the department trained nine staff to achieve<br />

MCerts personnel accreditation, acquired state-of-the-art<br />

measurement equipment, and achieved accreditation<br />

for ten key tests under the MCerts scheme.<br />

The combination of these investments, together with a sound<br />

working knowledge of steel industry processes, enables<br />

experts within the department to interpret emissions data in<br />

the context of prevailing conditions and to provide informed<br />

advice on cost-effective improvement options.<br />

Land resources<br />

As a substantial landowner, we recognise our <strong>responsibility</strong> to<br />

protect this valuable resource for future generations, and<br />

have implemented a wide range of pollution prevention and<br />

control measures at our operational sites. For example, as a<br />

precautionary measure at Corus Strip Products, IJmuiden,<br />

we replaced the main parts of an underground tar-products<br />

transport pipe in <strong>2005</strong>. We will replace the remaining sections<br />

of the pipe in 2006.<br />

The case study on the opposite page provides an example of<br />

how we proactively deal with land that has become degraded<br />

as a result of historic activities.<br />

Resource effectiveness<br />

Our systems to improve resource efficiency are not limited to<br />

water and energy. We are equally committed to conserving<br />

other raw materials, many of which are non-renewable.<br />

Our first priority is to optimise the consumption of materials<br />

within our processes, by improving the conversion efficiency<br />

of each process. Although we achieve a high level of control,<br />

in most conditions it is neither technically possible nor cost<br />

effective to achieve 100% conversion efficiency, and the<br />

process itself generates some waste. Our priority then<br />

shifts to ensuring that any by-products or wastes are either<br />

reused, recycled or recovered.<br />

Over a number of years, we have implemented and optimised<br />

systems that enable us to recycle materials which contain<br />

valuable components such as iron and carbon that are<br />

unavoidably produced in our steelmaking processes.<br />

For example, we have invested in plants to produce<br />

briquettes from dust collected in our emissions control<br />

systems that can then be recycled through our steelmaking<br />

plants. In addition, in <strong>2005</strong> we invested in an electrolyte<br />

recovery line at Corus Special Strip, Düsseldorf, which will<br />

enable us to recycle 100% of our nickel electrolyte. This was<br />

previously regarded as a hazardous waste for disposal.<br />

In those cases where there is no cost-effective alternative,<br />

we have to dispose of our waste. This is always done in a<br />

manner that ensures environmental impacts are minimised.<br />

Landfill is our dominant disposal option, particularly in the<br />

UK, where our landfill sites are covered by the stringent<br />

requirements of the EU Landfill Directive.<br />

Overall resource efficiency can best be measured by<br />

reference to raw material consumption and waste to landfill<br />

data. Improvements at all stages of the resource<br />

management hierarchy, from waste avoidance to disposal,<br />

will lead to a reduction in raw material consumption and<br />

waste to landfill.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 27


How do we protect the environment?<br />

Table 4 By-product applications<br />

By-product<br />

Granulated blast furnace slag<br />

Air cooled blast furnace, EAF & BOS slag<br />

Tar<br />

Benzene/toluene/xylene<br />

Ammonium sulphate<br />

Sulphuric acid<br />

Iron oxide<br />

Ferrous chloride solution<br />

Zinc and tin dross<br />

Application<br />

Cement industry<br />

Civil engineering and agricultural<br />

fertiliser industries<br />

Chemical industry<br />

Chemical industry<br />

Artificial fertiliser industry<br />

Artificial fertiliser industry<br />

Electronics, cement industry and<br />

paint industries<br />

Water treatment, effluent and dye industries<br />

Non-ferrous metal recovery industries<br />

Figure 12 Reuse, recycling and recovery<br />

of by-products (% by weight)<br />

100%<br />

95%<br />

90%<br />

85%<br />

80%<br />

75%<br />

1999 2000 2001 2002 2003 2004 <strong>2005</strong><br />

The 2004 figure is not directly comparable<br />

with other years as the calculation of recycling<br />

rate was skewed by non-production waste<br />

associated with our UK restructuring<br />

programme. The <strong>2005</strong> figure has been<br />

adjusted to take account of this.<br />

Table 3, on page 27, shows our consumption of raw materials<br />

(iron ore and coal for steel production, and alumina for primary<br />

aluminium smelting) during <strong>2005</strong>.<br />

Although there has been an overall reduction in waste to<br />

landfill since 1999, there was a significant increase in 2004<br />

and <strong>2005</strong> compared to earlier years. There are a number of<br />

reasons for this. The single greatest factor is the effect of the<br />

restructuring programme in the UK. This has led to significant<br />

building and land clearance, with an associated increase in<br />

construction and demolition waste. The <strong>2005</strong> landfill figures<br />

were also heavily skewed by the effect of a programme<br />

to recover valuable iron units from a historic stockpile of<br />

steelmaking waste at Corus Construction & Industrial,<br />

Scunthorpe. Figure 11, on page 27, shows waste to landfill<br />

performance between 1999 and <strong>2005</strong>, including an adjusted<br />

figure for <strong>2005</strong> that takes these atypical occurrences<br />

into account. From the figures, it can be seen that Corus<br />

achieved its target to reduce waste to landfill by 10% in<br />

<strong>2005</strong> compared to 2003, when one-off, non-production,<br />

events are excluded.<br />

By-products<br />

Thanks to improvements over recent years in raw material<br />

selection and process control, our by-products meet tight<br />

quality control requirements that enable them to be used as<br />

alternative, or secondary, raw materials in sectors such as<br />

cement and chemicals. Non-renewable primary raw materials<br />

are thereby displaced and conserved (see case study on<br />

page 23). Table 4 shows where our by-products are typically<br />

used. Figure 12 shows our performance since 1999 in<br />

the reuse, recycling and recovery of by-products from<br />

steel production.<br />

Nuisance<br />

We operate large-scale, heavy industrial processes and many<br />

of our production facilities are located close to residential<br />

areas. It is therefore an ongoing challenge to ensure that we<br />

do not cause nuisance or distress to local residents. We have<br />

established a target to reduce public complaints by 10% by<br />

2006 compared with 2003, and the statistics presented in<br />

Figure 13 show that we are on course to achieve this, despite<br />

an increase in <strong>2005</strong> compared with 2004.<br />

We take a proactive approach to nuisance management.<br />

Our complaint management systems ensure that any<br />

complaint will be thoroughly investigated, and we always<br />

aim to provide feedback to complainants on the outcome<br />

of investigations.<br />

Biodiversity<br />

Our manufacturing facilities often sustain a surprisingly rich<br />

tapestry of wildlife. This is due to combination of factors: our<br />

ownership of relatively large tracts of undisturbed ground; the<br />

application of site-greening strategies at many of our sites;<br />

and the efforts of enthusiastic employees, wildlife groups,<br />

schools and voluntary bodies.<br />

We respect the habitats that have grown up beside our<br />

operations and view these as something to be proud of.<br />

Consequently, ecological factors are increasingly being<br />

taken into consideration as part of the planning phase of<br />

maintenance and development works at our sites.<br />

28 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we protect the environment?<br />

Figure 13 Public complaints<br />

Table 5 IISI environmental performance indicators<br />

1,000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

2003 2004 <strong>2005</strong><br />

Performance Unit Indicator result Comments<br />

indicator Corus World<br />

2004 average<br />

2003<br />

Greenhouse gas Tonnes of CO 2<br />

/tonne 1.49 1.6 Corus better than<br />

emissions crude steel world average<br />

Material efficiency % 94.6* 96.8 Corus slightly below<br />

world average<br />

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

world average<br />

Environmental % of employees and 94.5** 85.0 Corus better than<br />

management systems contractors working in world average<br />

certified production units<br />

*Our by-product reuse, recycling and recovery rate, <strong>report</strong>ed in Figure 12, is calculated differently<br />

from IISI’s material efficiency, and is not directly comparable.<br />

**Based on steel-related operations in the UK and the Netherlands.<br />

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

EAF/BF route production mix. We do not <strong>report</strong> this here.<br />

Performance against sector benchmarks<br />

In all aspects of our business we try to measure our<br />

performance against that of our peers. The International Iron<br />

& <strong>Steel</strong> Institute (IISI) has established a set of sustainability<br />

related performance indicators. Our results for 2004 are<br />

presented in Table 5, alongside the most recently published<br />

world average figures for 2003.<br />

It can be seen that we perform better than the world<br />

average in the areas of CO 2<br />

intensity, energy intensity<br />

and management systems. Our performance in terms<br />

of material efficiency was slightly below the world average<br />

but we improved our performance in <strong>2005</strong>. We have also<br />

improved our management system coverage and energy<br />

intensity since we last <strong>report</strong>ed to IISI in 2004.<br />

Supply chain<br />

We believe that our <strong>responsibility</strong> for managing environmental<br />

impact goes beyond our manufacturing facilities.<br />

Downstream, the characteristics of our products, and the<br />

information that we provide to customers, can both have<br />

a profound effect on the environmental performance of<br />

our products during their in-use and end-of-life phases.<br />

The sustainable solutions pages earlier in this <strong>report</strong> provide<br />

some examples of the environmental advantages of our<br />

products, and how they can be used to best effect.<br />

In the same way, we encourage our suppliers to minimise<br />

upstream impacts. As a large company we can use our size<br />

to influence our suppliers, and we expect them to have a<br />

high level of commitment to the environment. To support<br />

this principle we have developed an internet-based supplier<br />

assessment tool. This enables us to make informed decisions<br />

about whether to reject prospective suppliers, or, as is usually<br />

the case, to encourage them to improve.<br />

Transport<br />

The manufacture of steel and aluminium involves the global<br />

transportation of many millions of tonnes of raw materials,<br />

intermediate and finished products. We have implemented<br />

a wide range of improvements in recent years to mitigate<br />

transport-related impacts. These include redeveloping<br />

wharf and rail-head facilities to facilitate the switch from<br />

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

logistics software to optimise cargo size and the utilisation<br />

of return journeys. The case study on page 26 shows<br />

how Corus Colors, Shotton, has reduced its transport-related<br />

impacts.<br />

We also contribute to reducing transport-related impacts<br />

through our product design. In addition to the examples<br />

provided in the sustainable solutions pages of this <strong>report</strong>,<br />

Corus Rail has developed products that bring significant<br />

environmental benefits to railways. We developed Silent<br />

Track in order to reduce noise impact. Silent Track has<br />

already been installed at several locations in the Netherlands<br />

where it plays a significant role in improving the quality of the<br />

urban environment.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 29


How do we<br />

support our<br />

communities?<br />

We are major employers in many<br />

of the areas where we operate,<br />

and we are actively involved<br />

in a broad range of community<br />

initiatives. Our involvement can<br />

take the form of financial support,<br />

the provision of materials or<br />

the time, skills and enthusiasm<br />

of our employees.<br />

30 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Communities<br />

We recognise that our operations influence the communities<br />

and societies within which we operate and we aim to play<br />

a positive role. We promote and encourage economic,<br />

environmental, social and educational development where<br />

possible and we support our employees’ involvement in<br />

local initiatives.<br />

Employment, economic development<br />

and regeneration<br />

At the end of <strong>2005</strong>, we directly employed 47,300 people<br />

and many thousands more indirectly through our contractors<br />

and suppliers.<br />

We are also active in stimulating regional employment.<br />

For example, in the late 1990s we allocated around<br />

100 hectares of our site in IJmuiden to boost regional<br />

economic development and several dozen small and medium<br />

sized companies are now established in the IJmond Business<br />

Park. We are active members of a number of local working<br />

groups, employers’ associations and advisory boards.<br />

Amongst these bodies is the Enterprising IJmond Federation,<br />

a co-operative network set up to share the economic<br />

interests of its local members.<br />

Where redundancies or plant closures are unavoidable,<br />

we work hard to minimise the impact on our employees<br />

and the communities in which we operate. We offer<br />

retraining, help with finding alternative employment and<br />

outplacement services.<br />

UK <strong>Steel</strong> Enterprise, a Corus subsidiary which was<br />

established in 1975, has invested over £50m (EUR73m) in<br />

new and expanding steel-related businesses and over £20m<br />

(EUR29m) in managed workspaces. We have supported over<br />

4,000 small businesses and helped create 65,000 new<br />

jobs. The business has also been able to attract external<br />

funding. To date, UK <strong>Steel</strong> Enterprise has leveraged an<br />

additional £300m (EUR438m) of investment from the public<br />

and private sectors.<br />

A good example is the Ebbw Vale Innovation Centre in South<br />

Wales. The centre is a catalyst for the growth of spin-off<br />

companies with the accent on technology and innovation.<br />

The centre has been designed with the regeneration plan<br />

for the area in mind, and UK <strong>Steel</strong> Enterprise worked<br />

closely with Blaenau Gwent County Borough and the<br />

Welsh Development Agency throughout the project.<br />

<strong>Steel</strong> supply has predominantly outstripped demand over the<br />

past 20 years. To remain competitive, established companies<br />

in the steel industry, like Corus, have had to become more<br />

productive. This has resulted in the rationalisation and closure<br />

of some facilities.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 31


How do we support our communities?<br />

Sponsorships and charitable donations<br />

Many of our businesses have strong links to their<br />

neighbouring towns and surrounding regions. We support<br />

cultural, social, educational and sporting activities that<br />

contribute to the well-being of residents, both in the<br />

immediate vicinity of our plants and elsewhere. For example,<br />

our IJmuiden site sponsors the world renowned Corus chess<br />

tournament in Wijk-aan-Zee. In <strong>2005</strong>, three grandmaster<br />

events and many other amateur and youth competitions were<br />

featured. IJmuiden also sponsors the premier-division football<br />

club AZ and the local football club Stormvogels/Telstar.<br />

We are the key supplier of building material for the new<br />

AZ football stadium, which will be opened later in 2006.<br />

In the UK, our Port Talbot site used its landfill tax credits to<br />

release matching government funding for the Phoenix Centre<br />

community initiative. It also sponsored the education<br />

and learning zone at the Swansea Waterfront Museum and<br />

re-created ironmaking from 100 years ago in Parc Tondu.<br />

Corus Engineering <strong>Steel</strong>s in Rotherham donated several<br />

thousand pounds for the benefit of local schools, hospitals<br />

and charities. In addition, Corus Packaging Plus in Trostre<br />

has been running its community award scheme for over four<br />

decades. In <strong>2005</strong>, the scheme helped 48 local organisations,<br />

ranging from amateur sporting groups to local branches<br />

of national charities.<br />

In London, we donated £50,000 in support of the families<br />

who were affected by the terrorist attacks on 7 July <strong>2005</strong>.<br />

Supporting local education<br />

We recognise that we have a positive role to play in<br />

supporting the educational development of the communities<br />

of which we are a part. In both the Netherlands and the UK,<br />

we work in partnership with education providers, bridging the<br />

link between industry and education. Our primary purpose<br />

is to encourage interest in, and enthusiasm for, the study<br />

of materials science and its application in engineering,<br />

manufacturing and technology-based industries.<br />

We develop learning materials, provide sponsorship and<br />

scholarships, award prizes and grants, and utilise the imagery<br />

and usage of steel to explain key concepts and learning<br />

points. Our support can vary from helping young children<br />

with literacy and numeracy, to explaining forces and motion<br />

to college students.<br />

In the UK, we sponsor teachers as well as student prizes in<br />

material science subject areas in association with, among<br />

others, the Armourers and Brasiers Livery Company, the<br />

Institute of Physics and the University of York’s Science<br />

Education and Research Department. We have also<br />

sponsored the regional finals of the highly successful<br />

Formula 1, a schools’ competition that challenges<br />

11 to 16 year old students to design, produce and race their<br />

own Formula 1 racing car. In addition to our involvement in<br />

national industry/education initiatives, we have extensive<br />

connections with our local schools and communities.<br />

32 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we support our communities?<br />

Our people in action<br />

• A team of graduates and placement students<br />

transformed an old pub in Rotherham into<br />

the new home of the ‘Get Sorted Music<br />

Academy’, a charity providing music and<br />

education for children. Money raised by<br />

the group from an earlier sponsored walk<br />

covered material and equipment costs.<br />

• Employee volunteers at Stocksbridge took<br />

part in the Monmouth Raft Race for the 13th<br />

consecutive year, raising just over £5,000 for<br />

Weston Park Hospital, Sheffield.<br />

• Corus’ businesses in Wales, including those<br />

in Port Talbot, Llanwern in Newport and<br />

Trostre near Llanelli, are helping in the fight<br />

against Cystic Fibrosis by sponsoring and<br />

participating in the Great Welsh Run.<br />

• Staff in Trostre used the community award<br />

scheme to match funds raised for charity<br />

by their own employees, including teams in<br />

the Mumbles raft race and Swansea Bay<br />

10k race.<br />

• We provided sponsorship and our employees<br />

took part in a Sports Award Conference, to<br />

help recognise, reward and promote sporting<br />

achievement among the youth of Corby.<br />

• Employees from Workington participated<br />

in a charity walk to help raise money for<br />

organisations in the West Cumbria area.<br />

Many of our sites have educational liaison programmes.<br />

At Corus Colors, Shotton, UK, this covers local primary and<br />

senior schools and includes work experience, workshops,<br />

interviewing skills courses, industry days and the Engineering<br />

Education and Young Enterprise schemes.<br />

A successful Engineering Doctorate scheme has been<br />

running in Wales for over 10 years. The scheme forms a<br />

unique partnership between the University of Wales, the<br />

Engineering and Physical Sciences Research Council and<br />

Corus. Leading graduates, who aspire to key positions in<br />

industry, get the opportunity to gain experience in technical<br />

and engineering disciplines at Corus while pursuing doctorate<br />

research studies.<br />

In the Netherlands, we liaise with schools offering preparatory<br />

intermediate vocational education (VMBO). To encourage<br />

interest in technology, and to enable technical pupils and<br />

apprentices to find out about us, we have started an<br />

‘Adopt a School’ project. Schools are invited to visit our<br />

IJmuiden plant, where they receive materials, overalls and<br />

toolboxes. We have also joined JetNet (Jongeren en Techniek<br />

– Young People and Technology), a government initiative<br />

aimed at encouraging young people to choose a career<br />

in technology.<br />

In France, local schoolchildren have been given the<br />

opportunity to form a ‘Cadette Industrie’ (Junior Company)<br />

for a year. Pupils visit our Corus Colors, Myriad, plant,<br />

meeting and talking with operators to find out about our<br />

Company and the workers’ roles. The pupils can then<br />

produce items that are presented as prototypes and later<br />

sold to Myriad.<br />

Our people in action<br />

Our people are our ambassadors and it is their individual<br />

and collective efforts that continue to build and maintain<br />

our reputation. Our employees volunteer to assist in local<br />

initiatives and we are grateful for their continuing efforts.<br />

There are many examples of this, only a few of which are<br />

shown above.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 33


How do we<br />

safeguard our<br />

business?<br />

Business ethics are integral<br />

to the way we operate. We are<br />

strengthening our compliance<br />

culture and further embedding<br />

our business principles.<br />

34 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Business ethics<br />

A framework for business integrity<br />

Integrity and honesty are at the heart of our business dealings.<br />

We are constructing an improved framework for the conduct<br />

of our business generally and the strengthening of our<br />

business integrity processes in particular.<br />

We do not tolerate corrupt or fraudulent practices and<br />

expect transparency, integrity and honesty in all aspects<br />

of our business, from our employees, contractors and<br />

other business counterparts. The tone is set through the<br />

commitment made by our most senior management, and is<br />

integrated into the induction of new employees.<br />

Code of ethics and anti-fraud/anti-corruption<br />

programme<br />

This year, we are working on improving our Code of Ethics.<br />

This will be developed and delivered during the course of<br />

2006. It will build on the existing framework which focuses on<br />

the core principles of sound business decisions, compliance<br />

with laws and regulations, protection of company property,<br />

engaging in responsible trading practices, proactive<br />

communication with our stakeholders, valuing our employees<br />

and working in a sustainable environment. As part of the<br />

development of this improved Code of Ethics, we will<br />

introduce an augmented programme for combating fraud<br />

and corruption. This programme will use our successful<br />

competition law compliance programme (see case study<br />

on page 37) as a model and will include business-specific<br />

guidance notes and on-line training. The programme will<br />

incorporate our policy and procedures for combating bribery<br />

and corruption, dealing with agents and contractors,<br />

facilitating payments, gifts and entertainment.<br />

Suppliers and contractors<br />

We encourage our suppliers and contractors to operate to<br />

the same standards as Corus.<br />

Independent financial audit<br />

All business transactions on behalf of Corus are reflected<br />

accurately and honestly in our accounts in accordance with<br />

established practices and these are subject to independent<br />

audit and review.<br />

Operating model<br />

During <strong>2005</strong>, we conducted a thorough review of our Group<br />

Policy Documents – the policies that underpin our operating<br />

model. These cover the essential elements of our operating<br />

procedures and the way we wish to conduct our business –<br />

including financial policies, processes for committing to sales<br />

and purchases, compliance with laws and regulations, the<br />

development of our employees, our identity as a Company,<br />

and the security of our operations. Each policy document has<br />

been rewritten in clear, concise language to allow easier and<br />

more consistent deployment throughout the Group.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 35


How do we safeguard our business?<br />

‘Whistleblowing’ system<br />

In <strong>2005</strong> we also improved the management of our<br />

confidential <strong>report</strong>ing (‘whistleblowing’) procedure. We have<br />

raised employees’ awareness of its availability and have a<br />

programme to refresh awareness, through articles in the<br />

company magazine for employees and other communication<br />

methods, as well as to improve ease of access to this<br />

confidential system.<br />

The underlying matters identified through the whistleblowing<br />

line, and <strong>report</strong>s received through other confidential channels,<br />

are regularly reviewed so that the lessons learned can be<br />

incorporated into improved working practices. In response<br />

to some of the confidential matters <strong>report</strong>ed, our internal<br />

audit and asset protection units carry out investigations<br />

as required.<br />

An independent review is assured through a quarterly <strong>report</strong><br />

to our Board Audit Committee, which comprises four<br />

independent non-executive directors.<br />

Political activities and contributions<br />

We do not contribute to political parties or funds, nor do we<br />

take part in party politics.<br />

Risk management<br />

We take an integrated approach to the management<br />

of the diverse risks which might affect our business.<br />

Potential risks are identified through techniques such as<br />

auditing, near-miss <strong>report</strong>ing and risk assessments.<br />

The process of minimising and managing risks is built<br />

into our management and <strong>report</strong>ing systems.<br />

Our internal audit programme, our policies and our standards<br />

provide a framework for a healthy compliance culture which<br />

we believe will become even stronger as they become further<br />

integrated into our working practices.<br />

Policy and guidance<br />

For each potential risk that we have identified as material,<br />

we are working to ensure that we have a clear policy<br />

and strategy in place and that we understand its relevance<br />

to our business.<br />

Assurance<br />

Internal assurance is built into our approach through an<br />

audit process aimed at strengthening our controls and<br />

ensuring the completeness and accuracy of information.<br />

External assurance is obtained through our financial auditors,<br />

PricewaterhouseCoopers, through accredited external<br />

verification bodies in relation to standards such as ISO 9001,<br />

ISO 14001, OHSAS 18001 and ISRS and through the<br />

validation of this <strong>report</strong> by Enviros (see page 40).<br />

36 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


How do we safeguard our business?<br />

The framework for our business principles<br />

1. General conduct<br />

Business decisions should be made<br />

objectively, based on facts, and free from<br />

any bias or conflict of interest.<br />

3. Protection of Company property<br />

Employees are expected to respect and<br />

protect Corus’ property from damage, theft<br />

and misuse.<br />

6. Good employment practices<br />

Every manager is responsible for creating a<br />

work environment in which employees are<br />

safe, feel valued and are able to contribute.<br />

2. Compliance with legal and financial<br />

regulations<br />

Corus expects its managers and employees<br />

to comply with all applicable government<br />

laws, rules and regulations in each<br />

jurisdiction in which it does business.<br />

4. Responsible trading practices<br />

Corus will not tolerate unlawful or unethical<br />

business practices.<br />

5. Proactive employment practices<br />

Corus will communicate in a clear, consistent<br />

and timely manner with all its stakeholders.<br />

7. Concern for the environment<br />

Corus will adopt sustainable practices and<br />

continuously improve its environmental<br />

performance.<br />

Case study<br />

A model for compliance<br />

During <strong>2005</strong> we developed and implemented an improved Groupwide<br />

compliance system to further raise awareness of competition<br />

laws and regulatory practice. An initial phase of internal stakeholder<br />

engagement identified the particular areas of risk for each of the<br />

diverse businesses in the Group. These stakeholders reviewed and<br />

contributed to the package of compliance materials, which included<br />

the overall policy document, guidance notes for conduct in various<br />

business situations, case studies relevant to the businesses, and<br />

procedures for response to an investigation. These written materials<br />

are supported by presentations made to employees relating to law,<br />

practice and personal conduct.<br />

Employees are also required to complete an on-line training<br />

programme. The on-line programme, available in the main<br />

languages in which the Company operates, focuses on<br />

realistic scenarios and ends with a series of test questions.<br />

Successful completion of the on-line training programme is<br />

followed by certification of compliance with the policy.<br />

The methodology used in the development of the new programme<br />

allowed a variety of people from a broad range of activities to<br />

contribute and participate. The successful deployment of this<br />

compliance programme will be used as a model for other systems<br />

of training and compliance, in subjects such as the combating of<br />

fraud and corruption and other areas of legal risk.<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 37


Progress against targets<br />

Category<br />

People<br />

Health and safety<br />

People<br />

Valuing our workforce<br />

Environment<br />

Target<br />

Further substantially improve mean lost time injury frequency in <strong>2005</strong><br />

compared to 2004<br />

Measure employee commitment by regularly conducting employee<br />

surveys and focus groups.<br />

Achieve at least 99% compliance with formal regulatory emission limits for<br />

both emissions to air and releases to water by the end of <strong>2005</strong><br />

Achieve 100% certification to ISO 14001 for all Corus European manufacturing<br />

sites (excluding interim mergers and acquisitions and sites with fewer than<br />

50 employees) by the middle of 2006<br />

Reduce total energy consumption in the UK by 11.5% compared to 1997,<br />

by 2010 and become one of the world's top steelmakers and primary aluminium<br />

producers (in the comparable technology class) in terms of energy use in<br />

the Netherlands by 2012<br />

Reduce emissions of perfluorocarbons (PFCs) from the primary aluminium<br />

production process by 50% compared to 1990, by the end of <strong>2005</strong><br />

Identify and assess our contribution to ambient air concentrations of fine and<br />

ultrafine dust particles (PM2.5s and PM0.1s) and evaluate options for<br />

improvement where necessary by the end of 2006<br />

Reduce the number of complaints from the public related to our activities by 10%<br />

compared to 2003 by the end of 2006<br />

Reduce waste to landfill by 10% from 2003 levels by the end of <strong>2005</strong><br />

Carry out life-cycle studies to ensure that LCI (life-cycle inventory) data to the<br />

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

Increase the steel packaging recycling rate in the UK to 54% by 2008 (compared<br />

with 46% in 2004) and continue to work with organisations such<br />

as Nederland Schoon to reduce litter from packaging in the Netherlands<br />

Launch an intranet site to improve the dissemination of environmental good<br />

practices across Corus business units and manufacturing sites<br />

Community<br />

Business ethics<br />

Establish additional key performance indicators related to social and ethical<br />

issues during <strong>2005</strong><br />

Deliver a strengthened Code of Ethics in 2006<br />

38 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Status Comments Forward action<br />

Achieved<br />

Our lost time injury frequency improved to 2.9 per<br />

million hours worked in <strong>2005</strong> (compared to 3.8 in 2004)<br />

New target – Further substantially improve<br />

mean lost time injury frequency in 2006<br />

compared to <strong>2005</strong><br />

– –<br />

New target<br />

Substantially<br />

achieved<br />

On target<br />

At the end of <strong>2005</strong>, our results were: spot measurements<br />

98.85%; continuous measurements 99.98%<br />

86% of our sites are currently certified. Our operations<br />

at Voerde (Germany), Delfzijl (the Netherlands)<br />

and Durango (Spain) are on schedule to be certified<br />

New target - Achieve at least 99%<br />

compliance with formal regulatory emission<br />

limits by the end of 2006<br />

Target carried forward<br />

On target<br />

In the UK we achieved our 2004 Climate Change Agreement<br />

milestone target to reduce energy and we are on target to<br />

achieve the target for 2010. In the Netherlands we currently<br />

outperform the best international standard in energy use<br />

Achieved PFC emissions have been reduced by more than 90%<br />

(from 170 tonnes in 1990 to less than 10 tonnes in <strong>2005</strong>)<br />

Target carried forward<br />

–<br />

On target<br />

We have established a strategic R&D project to identify<br />

and assess our fine and ultrafine dust emissions<br />

Target carried forward<br />

On target<br />

Substantially<br />

achieved<br />

<strong>2005</strong> complaints were 26% below 2003 levels, well ahead<br />

of target<br />

Our waste to landfill, excluding exceptional items was<br />

11.5% lower in <strong>2005</strong>, compared to 2003<br />

Target carried forward<br />

New target - Reduce production waste to<br />

landfill by 10% from <strong>2005</strong> levels by the end<br />

of 2007<br />

On target Life-cycle inventory data is now available for 88%<br />

of our products<br />

Target carried forward<br />

On target 51.4% of steel packaging in the UK was recycled in <strong>2005</strong> Target carried forward<br />

On target This will be launched later in 2006 Target carried forward<br />

Achieved<br />

We will <strong>report</strong> in more detail on corporate giving<br />

from 2006<br />

–<br />

– – New target<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 39


Validation statement<br />

Enviros has conducted an independent validation of<br />

the Corus <strong>Corporate</strong> Responsibility (CR) Report <strong>2005</strong><br />

to provide assurance on the completeness, transparency<br />

and accuracy of the <strong>report</strong> and to review systems for data<br />

collection. The validation process was conducted through<br />

interviews with staff responsible for the data collection and<br />

<strong>report</strong>ing at a central corporate level and from a selection<br />

of representative sites.<br />

Opinion<br />

We consider that the text and data in the <strong>report</strong> represent an<br />

accurate and materially complete account of Corus’ health,<br />

safety, environmental and social performance during <strong>2005</strong>.<br />

There has been a structured framework for collating and<br />

<strong>report</strong>ing health and safety data for a number of years and<br />

the environmental data and employee related data collection<br />

processes now provide transparency throughout the <strong>report</strong>ing<br />

process. Consistency in presentation facilitates easy year on<br />

year comparison and in particular the environmental data is clear<br />

concerning thresholds of materiality.<br />

It is noted that the CR <strong>report</strong> has more visible ownership at<br />

the Corus executive level. Corus is currently identifying the<br />

future material issues to be <strong>report</strong>ed in respect of employees,<br />

community and ethical business practices to further<br />

strengthen the <strong>report</strong> in these areas. There is as yet no<br />

formalised mechanism for engagement with stakeholders to<br />

help identify material issues to be <strong>report</strong>ed.<br />

Corus has started to address the need to provide written<br />

guidance for the data collection and <strong>report</strong>ing processes in<br />

respect of the CR Report requirements. To date this has been<br />

developed for some of the environmental parameters and is<br />

now being extended.<br />

The environment and health and safety targets set last<br />

year have been largely achieved. Corus has acknowledged<br />

the need to further consider appropriate targets in the<br />

consideration of presenting employee and community<br />

data and data around ethical business practices.<br />

Recommendations for future <strong>report</strong>s<br />

We recommend that Corus develops further internal<br />

guidelines which clearly set out the methodology and<br />

responsibilities for all areas of CR data collection.<br />

Corus needs to set out a framework for developing targets<br />

in the social and community impacts of its business activities.<br />

It is recommended that consideration is given to the<br />

appropriate level for setting these targets which may be at a<br />

business unit or site level rather than for Corus as a whole.<br />

Corus needs to continue to evolve its CR <strong>report</strong>ing strategy<br />

and needs to consider the role of its stakeholders in helping<br />

to define material issues to <strong>report</strong> on, and appropriate future<br />

improvement targets and indicators.<br />

It is encouraging that Corus considers the impact of its<br />

suppliers, contractors and customers within the scope of<br />

Corus’ corporate <strong>responsibility</strong> although it is acknowledged<br />

that it is difficult to <strong>report</strong> quantitative data on these impacts.<br />

Peter J Young<br />

Strategy Director<br />

40 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Validation statement<br />

Enviros has conducted an independent validation of<br />

the Corus <strong>Corporate</strong> Responsibility (CR) Report <strong>2005</strong><br />

to provide assurance on the completeness, transparency<br />

and accuracy of the <strong>report</strong> and to review systems for data<br />

collection. The validation process was conducted through<br />

interviews with staff responsible for the data collection and<br />

<strong>report</strong>ing at a central corporate level and from a selection<br />

of representative sites.<br />

Opinion<br />

We consider that the text and data in the <strong>report</strong> represent an<br />

accurate and materially complete account of Corus’ health,<br />

safety, environmental and social performance during <strong>2005</strong>.<br />

There has been a structured framework for collating and<br />

<strong>report</strong>ing health and safety data for a number of years and<br />

the environmental data and employee related data collection<br />

processes now provide transparency throughout the <strong>report</strong>ing<br />

process. Consistency in presentation facilitates easy year on<br />

year comparison and in particular the environmental data is clear<br />

concerning thresholds of materiality.<br />

It is noted that the CR <strong>report</strong> has more visible ownership at<br />

the Corus executive level. Corus is currently identifying the<br />

future material issues to be <strong>report</strong>ed in respect of employees,<br />

community and ethical business practices to further<br />

strengthen the <strong>report</strong> in these areas. There is as yet no<br />

formalised mechanism for engagement with stakeholders to<br />

help identify material issues to be <strong>report</strong>ed.<br />

Corus has started to address the need to provide written<br />

guidance for the data collection and <strong>report</strong>ing processes in<br />

respect of the CR Report requirements. To date this has been<br />

developed for some of the environmental parameters and is<br />

now being extended.<br />

The environment and health and safety targets set last<br />

year have been largely achieved. Corus has acknowledged<br />

the need to further consider appropriate targets in the<br />

consideration of presenting employee and community<br />

data and data around ethical business practices.<br />

Recommendations for future <strong>report</strong>s<br />

We recommend that Corus develops further internal<br />

guidelines which clearly set out the methodology and<br />

responsibilities for all areas of CR data collection.<br />

Corus needs to set out a framework for developing targets<br />

in the social and community impacts of its business activities.<br />

It is recommended that consideration is given to the<br />

appropriate level for setting these targets which may be at a<br />

business unit or site level rather than for Corus as a whole.<br />

Corus needs to continue to evolve its CR <strong>report</strong>ing strategy<br />

and needs to consider the role of its stakeholders in helping<br />

to define material issues to <strong>report</strong> on, and appropriate future<br />

improvement targets and indicators.<br />

It is encouraging that Corus considers the impact of its<br />

suppliers, contractors and customers within the scope of<br />

Corus’ corporate <strong>responsibility</strong> although it is acknowledged<br />

that it is difficult to <strong>report</strong> quantitative data on these impacts.<br />

Peter J Young<br />

Strategy Director<br />

40 Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong>


Glossary<br />

APEAL The European steel packaging trade association<br />

Assure A pre-finished steel with antibacterial protection<br />

BOS Basic oxygen steelmaking<br />

Benzene, toluene and xylene By-products from cokemaking<br />

BF Blast furnace<br />

CO Carbon monoxide<br />

CO 2<br />

Carbon dioxide, a gas released in combustion and<br />

other industrial processes, which contributes to the enhanced<br />

greenhouse effect<br />

Colorcoat HPS200 A pre-finished steel product for roof and<br />

wall cladding<br />

Corus <strong>Steel</strong> Packaging Recycling A Corus department<br />

dedicated to promoting recycling of steel packaging in the UK<br />

CR <strong>Corporate</strong> <strong>responsibility</strong><br />

CSR <strong>Corporate</strong> social <strong>responsibility</strong><br />

Dioxins A group of organic compounds formed in industrial<br />

and combustion processes<br />

Dross Secondary products from galvanising and other metal<br />

coating processes<br />

EAF Electric arc furnace<br />

Ecolite A strong, lightweight aluminium product for the<br />

automobile sector<br />

EMS Environmental management system<br />

EU European Union<br />

Ferrous chloride solution Residual material from the steel<br />

acid-pickling process<br />

Fluorides Fluorine-containing compounds<br />

Fugitive Releases from non-stack sources<br />

Greenhouse gases Gases which contribute to global warming<br />

GSM Group senior manager<br />

Heavy metals Metals such as cadmium, copper, mercury,<br />

nickel, chromium, lead and zinc<br />

IISI International Iron and <strong>Steel</strong> Institute<br />

IMDS International material database system<br />

ISO 14001 International environmental management<br />

system standard<br />

ISO 9001 International quality management system standard<br />

ISRS International safety rating system<br />

JAPAC Joint Accident Prevention Advisory Committee<br />

Key performance indicators Parameters which are important<br />

indicators of how well we perform<br />

GRI (Global Reporting Initiative)<br />

performance indicators<br />

This <strong>report</strong> includes data for performance indicators in line<br />

with the GRI core elements for the mining and metals sectors<br />

where available and appropriate. More detailed financial data<br />

is available separately in our Annual Report. This <strong>report</strong> and a<br />

full checklist against the GRI core elements are available on<br />

our website (www.corusgroup.com).<br />

Landfill Tax A UK tax on materials which are landfilled<br />

LCA Life cycle assessment, a method of identifying the<br />

environmental impact of a product. The whole life cycle of a<br />

product is considered<br />

LCI Life cycle inventory, a part of LCA<br />

LTIF Lost time injury frequency, the number of lost time<br />

incidents per million hours worked<br />

NMVOCs VOCs excluding methane<br />

NO x<br />

Oxides of nitrogen, compounds that contribute<br />

to acidification<br />

NO 2<br />

Nitrogen dioxide, one of the oxides of nitrogen<br />

OHSAS 18001 International occupational health and safety<br />

management system standard<br />

PAHs Polycyclic aromatic hydrocarbons, a collective term<br />

for tar-like compounds<br />

PFCs Perfluorocarbons, a family of greenhouse gases<br />

PM10 Particulate matter less than 10 microns in diameter<br />

PM2.5 Fine particulate matter less than 2.5 microns<br />

in diameter<br />

PM0.1 Ultrafine particulate matter less than 0.1 microns<br />

in diameter<br />

RD&T Corus Research, Development and Technology<br />

REACH Proposal for a European regulation on the<br />

registration, evaluation and authorisation of chemicals<br />

Sickness absence rate The number of hours lost as a result<br />

of sickness or injury, <strong>report</strong>ed as the number of hours<br />

sickness absence as a % of the number of hours scheduled<br />

Slags Secondary products from ironmaking and steelmaking<br />

SO 2<br />

Sulphur dioxide, a compound that contributes<br />

to acidification<br />

SSSI Site of special scientific interest<br />

TNO A Netherlands organisation for applied<br />

scientific research<br />

ULCOS Ultra-low CO 2<br />

steelmaking<br />

ULSAB-AVC Ultra light steel auto body – advanced<br />

vehicle concept<br />

Urea An ammonia-based compound, which is often used<br />

in fertilisers<br />

VOCs Volatile organic compounds, such as solvents.<br />

WEEE Waste Electrical and Electronic Equipment – an<br />

EU Directive<br />

What do you think?<br />

This <strong>report</strong> has been designed to meet the anticipated<br />

needs of our stakeholders and we encourage feedback<br />

on the <strong>report</strong>, including suggestions on where and how<br />

we can make improvements. Please contact us by email<br />

at feedback@corusgroup.com<br />

Corus <strong>Corporate</strong> Responsibility Report <strong>2005</strong> 41


www.corusgroup.com<br />

Care has been taken to ensure that this information<br />

is accurate, but Corus Group plc, and its subsidiaries,<br />

does not accept <strong>responsibility</strong> or liability for errors or<br />

information which is found to be misleading.<br />

Copyright 2006<br />

Corus<br />

This <strong>report</strong> is printed on Revive Special Silk which is produced<br />

from pulp containing a minimum of 30% post-consumer and<br />

10% pre-consumer recovered fibre. A further 30% of the fibre<br />

comes from well-managed forests independently verified<br />

according to the rules of the Forest Stewardship Council.<br />

Designed and produced by Radley Yeldar (London)<br />

Corus<br />

30 Millbank<br />

London<br />

SW1P 4WY<br />

United Kingdom<br />

T +44 (0) 20 7717 4444<br />

T +44 (0) 20 7717 4455

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