IMI plc annual report 2012

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ENGINEERINGADVANTAGERESPONSIBLE BUSINESSOur responsible business prioritiesTo reflect the values and standards that underpin The IMIWay, we have chosen four responsible business priorities:It is our desire to become the most admired and innovativeengineering solutions business of our size anywhere in theworld. We want to be admired for what we do - creatingmarket leading products and solutions and for the way we doit - being a responsible business.In the running of our businesses we have a duty to behaveresponsibly to all our stakeholders, including our employees,our customers, our suppliers and the communities andthe environments we operate within. We believe that highstandards of responsibility impact positively on profitability,returns to shareholders, reputation and growth.Our commitment to responsible business starts withThe IMI Way, our code of conduct which sets out our corevalues of excellence, innovation and integrity and is part ofour roadmap to success. It directly supports our responsiblebusiness priorities, guides our decision making and helps usdo business in the right way so that we are focused on notonly what we want to achieve, but also on how we go aboutachieving it.The values of The IMI Way are reinforced by the face-to-faceIMI training we provide for more than 15,000 of ouremployees each year. On 13 June 2012; for the first timeever, all of our employees were given four hours of dedicatedIMI Way training on exactly the same day followed by anafternoon of voluntary work at a local charity or othercommunity projects.Health and safety promotes the importance of a safe culturewhich protects our people, the environment and adjacentcommunities. Over the last five years we have continued toimprove our key lost time accident measures. This year welaunched our ‘From Compliance to Competitive Advantage’campaign with the objective of reaching world class health,safety and environment (HS&E) status by the end of 2015.Supporting our customers’ responsible businesspriorities is essential if we are to continue to occupyleadership positions in global niche markets. We arecommitted to helping our customers meet their ownresponsible business objectives just as they value the highethical standards set out in The IMI Way.Supply chain risk management provides an opportunity towork in partnership with our suppliers to share best practiceand drive improvement. In 2012 we added a new process toour supplier risk management systems which is designed toensure that our suppliers remove ‘conflict minerals’ from oursupply chain.Energy efficiency and carbon management support ourgrowth drivers of climate change, resource scarcity andurbanisation; all of which are central to delivering responsiblesolutions. Integral to this is managing our own facilities andwe have various programmes in place to reduce energyconsumption and normalised CO 2 emissions across ourlocations around the world.Norgren employees training on The IMI Way Day in Osaka, JapanIt is our duty to manage our business in a responsibleand ethical way and in a manner in which IMI and ourstakeholders can be justifiably proud. The above prioritiesare reviewed annually by the Executive Committee to ensurethey remain relevant. In addition each of our businesses mustalign their management plans to address these priorities andany other responsible business objectives that are relevantto their operation and their local community. Typical localobjectives may include waste minimisation, increase inrecycling volumes and steps to gain relevant HS&E or qualityaccreditation in particular facilities.26 Responsible business
OUR prioritiesHealth and safetyOver the last five years our health and safety culture andperformance have both improved significantly. Since 2007the incidence of >3 day lost time accident rates per 100,000hours worked has improved by 78%. This performancedemonstrates our commitment to providing a safe workingenvironment throughout the entire Group. To achieve this weemploy more than 60 full-time health, safety and environmentalprofessionals across the Group, up 30% on 2011.This performance demonstrates the continued clear focuson and commitment to health and safety matters at all levelsacross the Group. Not only are we interested in the welfareof our employees but there is a clear business benefit frominvesting in health and safety as we reduced the numberof lost time days from 2,400 in 2010 to 850 in 2012, a 65%improvement over the past two years.A bus with the slogan ‘your safety is our goal’ travels to IMIemployees in Germany to offer advice on workplace safetyHealth and safety excellenceIn 2012, we launched an internal campaign called ‘FromCompliance to Competitive Advantage’ with the objective ofbecoming a world class HS&E operation by 2015. Our goalis to promote exceptional behaviours and to move from atop-down management approach to a culture where ourpeople not only look out for themselves but also watch outfor their colleagues.As part of the campaign, we launched a standardised HS&Emanagement framework alongside a set of group-widetargets. We also enhanced our HS&E web-based reportingtool to include dashboard capability and increasedresource across the organisation from 50 health and safetyprofessionals in 2011 to over 60 in 2012.The high standard and consistency of HS&E reporting andfeedback is driving considerable performance improvement.For instance, all of our businesses are now required to trackand report on hazards and near misses which has resulted inthe increase in reporting of such incidents from 9,500 in 2011to 14,800 in 2012. Tool box talks are also becoming morecommonplace at the start of shifts as a way of communicatingkey messages about health and safety to employees.In 2012, the campaign allowed us to focus on key safetyinitiatives but as we move towards our new target of 2015,we will focus on other important health-related initiatives suchas workplace well-being.Supporting our customers’ responsible business prioritiesWe place significant emphasis on helping our customers meettheir own responsible business commitments, which webelieve builds both long-term value and customer loyalty.Long-term global trends including climate change,urbanisation and resource scarcity, together with relatedlegislation, are driving customer demand for our productsand services, many of which are focused on achievingan energy efficient operation. Our customers also valuethe high standard of ethical business practices set out inThe IMI Way, which is particularly relevant in emergingmarkets where responsible business risks can be higher.HIGHLIGHTIMI Company: TA HydronicsTitle:Energy Insights launchUp to 40% of the world’s energy consumption occurs inbuildings and 50% of that is accounted for by heatingventilation and air conditioning (HVAC) systems. In 2012,TA Hydronics launched an ‘Energy Insights’ campaignto increase the awareness of the benefits of hydronicoptimisation which can reduce the energy consumption ofa building’s HVAC system by an average of 30%.Key elements of the campaign included:• a book incorporating 20 separate hydronic energy facts(each explaining how much energy can be saved as aresult of key specifications in a system);• evidence from real case studies and independent studies;• a three-hour seminar targeted at global sales teams toequip them with the skills and knowledge to engage localcustomers in the energy saving features of hydronicoptimisation.The ‘Energy Insights’ campaign built customer awareness ofthe products that are available to cut energy consumption inbuildings and promoted the benefits of optimised hydronicdistribution.BUSINESS OVERVIEW GROUP OPERATING REVIEW RESPONSIBLE BUSINESS BOARD REPORTSFINANCIAL STATEMENTSIMI plc Annual Report 201227
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IMI plc annual report 2012

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