2012 Annual Report - Spirax-Sarco Engineering plc

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Sustainability review continued US energy efficiency success Spirax Sarco Inc, in Blythewood, South Carolina was recently commended by the US Department of Energy for its energy efficiency accomplishments during 2012. Furthermore, as a founding partner of the US Department of Energy’s Better Buildings, Better Plants Program, Spirax Sarco has joined over 100 other industrial firms in the US in a voluntary pledge to reduce the energy intensity of their manufacturing operations by 25% in 10 years. Regional CO 2 e emission intensity in tonnes per £m of sales 54.6 tonnes 24.4 tonnes Steam specialties factory site Watson-Marlow factory site 31.7 tonnes Regional CO 2 e emission intensity The geographical distribution of our business operations predominantly accounts for regional variations in CO 2 e emission intensity. While we have major manufacturing plants strategically located in all market regions, EMEA contains eight of the Group’s 12 major manufacturing facilities, as well as significantly more operating companies than the other two regions. Packaging Spirax Sarco is successfully incorporating sustainability initiatives and reducing our environmental impact in innovative ways in the packaging of our products. Within the UK, environmentally friendly, 100% recyclable, inflatable AirPack protective packaging is now used wherever possible. AirPack reduces storage and shipping costs through its compact size and lightweight design and is fully recyclable or reusable by our customers. Throughout the Group we aim to ensure that all packaging is responsibly sourced. For example, most cardboard packaging is made from recycled material and is fully biodegradable so that it can be safely disposed of by the customer. In addition, wooden pallets used in the UK are produced using a species of fast growing northern European pine. Each pallet is designed to be collapsible, saving storage and transportation costs, and is nail-less, being constructed using stainless steel hinges, so that it can be assembled and disassembled for repeated use. 34 Spirax Sarco Engineering PLC Annual Report and Accounts 2012
35 Overview Saving energy and preventing landfill during a UK soil decontamination project When contaminated land specialist Provectus decided to take a novel approach to decontaminating the soil from an old printing works, Spirax Sarco provided the steam system expertise to turn their ideas into reality. Through many years of industrial use, the site in Somerset had been contaminated with toluene, a flammable solvent. Developers were looking to extract the chemical from the soil so that the land could be used safely for housing. Spirax Sarco engineers devised a series of trombone-shaped coils, laid flat across one of the old concrete factory floors. Several thousand metres of pipework were used to provide a heating area large enough to efficiently treat the batches of soil that were piled on top. The soil was heated using steam, and the vapour that was emitted was captured and passed through a system of activated carbon beds that absorbed the toluene and discharged clean air into the atmosphere. Our solution successfully decontaminated the site in only four weeks, prevented the soil being sent to landfill and had higher energy and water efficiency than traditional decontamination methods. ‘We’d never seen a project like this and neither had the Environment Agency personnel who inspected the operation’, explained Provectus Director, Steve Langford. ‘We had cleaned up the first batch of soil within two weeks and the site is now suitable for even the most sensitive developments – residential housing with gardens. I’m more than happy with the support we got from Spirax Sarco, which helped us to complete the project so quickly and efficiently.’ Strategy and performance Sustainability Waste management and recycling Reducing the amount of waste sent to landfill is essential for increasing sustainability. Recycling schemes are in operation across the Group and we have dedicated contractors to pro-actively manage waste, serving to minimise our environmental impact. Water management We recognise that clean water is a valuable resource that should be managed effectively to minimise our environmental impact. It is our aim to improve our water management across the Group. As part of this drive to use water more effectively, during the construction of the new Technology Centre in the UK, we installed a 2,000 litre rainwater harvesting tank which is used to flush lavatories at the site. ISO 14001:2004 certification ISO 14001:2004 is an international standard relating to environmental management. Certification to the standard provides assurance to the managers and employees of a company, as well as external stakeholders, that the environmental impact of a business is being managed and improved. The certification process is rigorous, requiring external auditing against prescribed standards, including waste management and energy consumption. During 2012, five additional operating companies achieved the certification, meaning that 59% of our employees now work in a location with ISO 14001:2004 in place, an increase from 47% in 2011. We are committed to increasing the number of our operations with ISO 14001:2004 approval, and a number of our operating companies are either awaiting certification or are implementing the procedures necessary to acquire it. Helping our customers to become more environmentally sustainable Our primary contribution to sustainability is to develop technologies and products with an increasingly lower environmental impact. We have the capability to respond to several of the major environmental challenges, through the provision of low-emissions, low-carbon and renewable energy solutions. We use methodology, externally verified by AEA Group, to calculate the quantity of CO 2 e emissions saved by our customers as a result of purchasing our energy saving products. We calculate that the energy saving products we sold during 2012 will save our customers approximately 4.9 million tonnes of CO 2 e annually. Put another way, for every tonne of CO 2 e emissions (scope 1 and 2) that we produced during our business operations in 2012, our customers could save as much as 187 tonnes of CO 2 e annually. The Group is dedicated to supplying exceptional quality products and solutions which meet the requirements of our customers in a manner consistent with high environmental and ethical standards. These principles form an integral part of the Group’s management processes and operations throughout the world. Employees working in operations with ISO 14001:2004 certification % 2011 47 2012 59 Energy savings at Northumbrian Water Spirax Sarco recently helped Northumbrian Water to halve the energy it uses to raise steam at its Bran Sands anaerobic digestion plant in Teesside, UK. Mr Errington, of Northumbrian Water, stated, ‘Spirax Sarco are very good at what they do. They’re very helpful and very knowledgeable and we get a good response from them. The energy savings equate to about 50%.’ Northumbrian Water was so impressed by the service and solution provided by Spirax Sarco that they plan to work with us while constructing a new plant at Howden. Spirax-Sarco Engineering plc Annual Report and Accounts 2012 35
Page 1 and 2: The Business of Solutions 2012 Spir
Page 3 and 4: Performance highlights Revenue £m
Page 5 and 6: 3 Overview Chairman’s statement p
Page 7 and 8: Our businesses We comprise two worl
Page 9 and 10: 7 Overview Group structure Spirax-S
Page 11 and 12: 9 Overview EMEA 44% 2011: 48% Emerg
Page 13 and 14: 11 Overview Foods Brewing and disti
Page 15 and 16: 13 Overview Customer value Customer
Page 17 and 18: Aligning results and reward 15 Over
Page 19 and 20: The Business of Solutions We are a
Page 21 and 22: Strategies for growth Our understan
Page 23 and 24: Strategies for growth We provide ou
Page 25 and 26: Strategies for growth We have stron
Page 27 and 28: Strategies for growth We see furthe
Page 29 and 30: Strategies for growth We create con
Page 31 and 32: Business review 17 Overview We have
Page 33 and 34: 19 Overview Revenue £232.8m 2011:
Page 41 and 42: 27 Overview Strategy and performanc
Page 43 and 44: 29 Overview Return on capital emplo
Page 47: 33 Overview UK Supply factory reduc
Page 51 and 52: 37 Overview Watson-Marlow sponsors
Page 53 and 54: 39 Overview Engaging with our staff
Page 55 and 56: 41 Overview Employment practices Th
Page 59 and 60: 45 Overview The Boardroom Chairman
Page 61 and 62: 47 Overview David Meredith FCMA, CG
Page 63 and 64: 49 Overview Approach to governance
Page 65 and 66: 51 Overview Governance structure Th
Page 67 and 68: 53 Overview To assess the effective
Page 69 and 70: Risk management and principal risks
Page 71 and 72: 57 Overview Important developments
Page 73 and 74: 59 Overview There may be other risk
Page 75 and 76: 61 Overview Appointment of new Exec
Page 77 and 78: 63 Overview 2.1.2 Variable elements
Page 79 and 80: 65 Overview 2.3 Directors’ servic
Page 81 and 82: 67 Overview 3.2 Annual bonus The an
Page 83 and 84: 69 Overview 3.3.2 Awards made for 2
Page 85 and 86: 71 Overview 3.6 Total remuneration
Page 87 and 88: 73 Overview 4.1.2 Spirax-Sarco Engi
Page 89 and 90: Statement of compliance 75 Overview
Page 91 and 92: 77 Overview COMPLIANCE WITH THE UK
Page 93 and 94: 79 Overview COMPLIANCE WITH THE UK
Page 95 and 96: 81 Overview Share capital As at 28t
Page 97 and 98: Statement of Directors’ responsib
Page 99 and 100:
Statements of financial position at
Page 101 and 102:
Consolidated statement of comprehen
Page 103 and 104:
Cash flow statements for the year e
Page 105 and 106:
91 Overview 1 Accounting policies c
Page 107 and 108:
93 Overview 1 Accounting policies c
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95 Overview 2 Segmental reporting 2
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97 Overview 4 Staff costs and numbe
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99 Overview 10 Earnings per share P
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101 Overview 13 Goodwill and other
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103 Overview 13 Goodwill and other
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105 Overview 17 Deferred tax assets
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107 Overview 21 Obligations under f
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109 Overview 27 Employee benefits P
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111 Overview 27 Employee benefits c
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119 Overview 30 Purchase of busines
Page 135 and 136:
121 Overview 31 Derivatives and oth
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127 Overview 2006 £000 2007 £000
Page 143 and 144:
Spirax Sarco worldwide Steam specia
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2012 Annual Report - Spirax-Sarco Engineering plc

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