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sain t-gobain annu al report 2008 annual report

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<strong>2008</strong>-2010 OBJECTIVE<br />

ISO 14001 certification will be obtained for over 80%<br />

of concerned sites by 2010, with 46% <strong>al</strong>ready certified<br />

as of <strong>2008</strong>. The sites concerned have been designated<br />

by Sector/Division on the basis of their water use,<br />

energy use, emission levels, waste volumes<br />

and other environment<strong>al</strong> criteria (see Reporting<br />

Methodology).<br />

Substanti<strong>al</strong> financi<strong>al</strong> resources<br />

Environment<strong>al</strong> spending in <strong>2008</strong> tot<strong>al</strong>ed €100 million,<br />

including the following outlays:<br />

• €22.3 million in personnel costs for environment<strong>al</strong><br />

management staff. This does not include s<strong>al</strong>aries<br />

of employees in charge of waste sorting, water treatment<br />

activities or maintenance of gas treatment equipment.<br />

• €1.7 million to obtain or renew ISO 14001 or EMAS<br />

environment<strong>al</strong> certification. This includes <strong>al</strong>l certificationrelated<br />

expenses and charges for outside consultants,<br />

intern<strong>al</strong> and extern<strong>al</strong> training, the development and upkeep<br />

of EMS and ISO 14001 systems, audits, and meetings<br />

on the topic of certification coordination and review.<br />

• €4.8 million for environment<strong>al</strong> taxes, including<br />

<strong>al</strong>l environment<strong>al</strong> management taxes and levies paid to loc<strong>al</strong><br />

authorities or associations such as water management<br />

boards.<br />

• €4.5 million for insurance and warranties, comprising<br />

<strong>al</strong>l insurance premiums covering accidents and pollution<br />

with a potenti<strong>al</strong> environment<strong>al</strong> impact – including pollution<br />

beyond the company’s property – and warranties<br />

for environment<strong>al</strong> risks such as soil pollution.<br />

• €0.3 million for environment-related fines, including<br />

<strong>al</strong>l fines levied by authorities as a result of regulatory<br />

non-compliance or recent environment<strong>al</strong> incidents.<br />

• €2 million to cover the cost of environment<strong>al</strong> incidents,<br />

including the cost of making good environment<strong>al</strong> damage<br />

arising from recent incidents and, where applicable,<br />

the cost of restoring compliance.<br />

• €6.2 million for technic<strong>al</strong> measures, including the cost<br />

of measuring air, groundwater and noise pollution<br />

and other emission levels, the cost of measurements<br />

carried out by independent laboratories, and the cost<br />

of impact and hazard assessments requested by authorities<br />

prior to granting operating permits and environment<strong>al</strong><br />

authorizations.<br />

• €16.7 million to cover the cost of soil decontamination,<br />

rehabilitation of decommissioned sites and miscellaneous<br />

items.<br />

• €41.5 million in environment-related Research<br />

and Development spending.<br />

Capit<strong>al</strong> expenditure on environment<strong>al</strong> protection measures,<br />

including spending on both compliance programs<br />

and voluntary initiatives, tot<strong>al</strong>ed €94.5 million in <strong>2008</strong>.<br />

When the Group believes that it is exposed to an<br />

environment<strong>al</strong> risk, a provision for the estimated future<br />

cost is recorded in provisions for other liabilities. These<br />

provisions tot<strong>al</strong>ed €158 million at December 31, <strong>2008</strong>.<br />

Comprehensive training<br />

Training offers a unique opportunity to provide employees<br />

at <strong>al</strong>l levels in the organization with the knowledge<br />

they need to fulfill EHS policy objectives. Environment,<br />

he<strong>al</strong>th and safety matters accounted for 24,6% of training<br />

hours provided in <strong>2008</strong>.<br />

The Group is actively defining a core EHS curriculum covering<br />

essenti<strong>al</strong> and recommended training topics for each function.<br />

This training is provided at loc<strong>al</strong> level with help from<br />

the various Delegations. The courses address gener<strong>al</strong><br />

management issues as well as key areas such as risk<br />

identification, industri<strong>al</strong> hygiene and environment<strong>al</strong><br />

compliance techniques, and audit procedures and feedback.<br />

Group-wide SMAT training began during <strong>2008</strong> as well.<br />

SMAT<br />

SMAT (for Safety / Senior Management Audit Tool) is a<br />

system that uses observation and discussion to raise<br />

awareness among employees about how their behavior<br />

impacts their own safety and that of their co-workers.<br />

The Gypsum Division has been using SMAT for sever<strong>al</strong><br />

years and has made significant strides in establishing<br />

a safe workplace, prompting the Group’s senior<br />

management to decide to extend its use to <strong>al</strong>l Sectors<br />

in <strong>2008</strong>. The CEO and Senior Vice President for Human<br />

Resources received training in SMAT upon its initi<strong>al</strong><br />

deployment, and in <strong>2008</strong> nearly 12,670 employees<br />

with direct supervisory responsibilities and more than<br />

2,300 managers and members of executive committees<br />

were trained in the method.<br />

Each Delegation uses a loc<strong>al</strong> service provider to conduct<br />

the training, based on the Saint-Gobain SMAT standard,<br />

which is available for consultation online on the EHS<br />

intranet.<br />

For Internation<strong>al</strong> Environment, He<strong>al</strong>th and Safety Day,<br />

Saint-Gobain’s Chief Executive Officer and numerous<br />

other executives, including Gener<strong>al</strong> Delegates, Sector<br />

and company directors, referred to SMAT in their<br />

videotaped addresses to employees. A selection of their<br />

comments regarding SMAT can be viewed on the EHS<br />

intranet, and is available for use during training sessions.<br />

In addition, a SMAT module has been included in various<br />

courses offered by the Group’s Training Department.<br />

MANAGEMENT REPORT<br />

47<br />

Saint-Gobain - <strong>2008</strong> Annu<strong>al</strong> Report

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