Corporate responsibility report 2005 - Tata Steel
Corporate responsibility report 2005 - Tata Steel
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