THE VALUE OF
LAYNE FISCAL YEAR 2015
OUR OPERATIONAL FOOTPRINT
Layne is a global water management, construction and drilling
company. We provide responsible solutions for water, mineral
and energy challenges on four continents and in 11 countries:
Australia, Burkina Faso, Brazil, Canada, Ethiopia, Guinea, Mali,
Mexico, Tanzania, United States and Zambia. Globally, we
employ more than 3,000 employees in over 70 offices.
Water + Mineral + Energy
At Layne, our integrated approach allows us to offer
more value to our customers. Our approach ensures
streamlined communications, expedited timelines
and a constant focus on our overriding values of
safety, sustainability, integrity and excellence.
Each day in the United States, nearly six billion
gallons of water are lost due to crumbling
infrastructure. This deficit is occurring at a time
when water demand is climbing due to population
growth, urbanization and increasing industrial
use. Throughout the United States and around the
world, Layne’s tailored, responsible and integrated
solutions help manage water in every phase of its
lifecycle, protecting this most precious of natural
resources for today and generations to come.
Combined with our foreign affiliates, Layne is one
of the three largest providers of drilling services
for the global mineral services industry, focusing
on exploration and water management needs. We
make safe, environmentally sound and socially
responsible decisions. With a focus on gold,
the universal metal, and copper, whose chief
commercial use is the delivery of electricity,
Layne is well-positioned in markets with positive,
Oil and gas exploration and production companies
use millions of barrels of water every day in their
energy activities. The rise of hydraulic fracturing
and horizontal drilling is further stressing water
availability, especially in areas of the country that
are already facing water access issues. Layne’s
Energy Services division provides cradle-to-cradle
water management solutions that allow energy
companies to source, transfer, store and recycle
water in a safe, sustainable and responsible manner.
STRATEGY & MANAGEMENT
At Layne, we are committed to a culture of honesty and
accountability. Our Code of Business Conduct and Ethics sets
high standards for our company, businesses and employees.
Policies help us reach our operating and financial goals with
integrity—a core value. Our Board of Directors follows our
Corporate Governance Guidelines as they work to serve
the best interests of the Company and our shareholders.
Board of Directors
The Board of Directors, the decision-making body of the Company, oversees management and governance
and advises the executive team. The Board and its committees—the Audit Committee, the Compensation
Committee, and the Nominating & Corporate Governance Committee—also select, evaluate and compensate
the CEO, oversee CEO succession planning and review financial and business strategies. Each committee
includes at least three solely independent directors. A Board-approved charter designates structure and
responsibilities. Visit www.layne.com/en/about/board-of-directors.aspx.
Sustainability Council &
Sustainability Site Coordinators
The Layne Sustainability Council, established in
2011, includes representatives from all divisions and
functional areas. In FY15, our Council did not meet
as frequently given the business priorities of the
company. Nevertheless, the Council’s previous work
of providing baselines for key metrics and tracking
sustainable solutions remain in place. The baselines
increased internal awareness of our own operational
impacts and the structure that the Council created
remains solid despite emphasis on other business
priorities. Similarly, our sustainability site coordinators
continued to collect data and provide on-site support
for sustainability initiatives.
Every day, Layne employees live our four core values of safety, sustainability, integrity and excellence. Our Code
of Conduct underscores our values. The Code outlines Layne’s policies for ethical behavior and legal compliance
and applies to all employees and certain third parties. The Code can be found online and on Layne’s intranet,
translated into languages of the countries where we operate.
As part of our commitment to promoting ethical behavior and integrity, we produced a video on ethics, compliance
and the Code for all our global operations. Management-level and administrative office employees use this video in
a training course for new hires. We have also designed and translated a program on anti-corruption and the Foreign
Corrupt Practices Act (FCPA) for corporate employees and target employees in international locations. An annual
training is required of all employees impacted by FCPA issues. These trainings are available in four different
languages: French, English, Spanish and Portuguese.
In FY15, Layne agreed to pay the U.S. Securities and Exchange Commission (SEC) $3,893,472.42 in disgorgement
plus $858,720 in prejudgment interest as well as a $375,000 penalty related to a U.S. Foreign Corrupt Practices Act
(FCPA) investigation. For a period of two years, the settlement requires the company to report to the SEC on the
status of its remediation and implementation of measures to comply with the FCPA. Layne consented to the order
without admitting or denying fault.
Through the Ethics Hotline, our employees can report violations of the Code or the law. The hotline (phone and
online) is managed by EthicsPoint and can be accessed anonymously. We also expect ethical behavior from our
agents, representatives and consultants. We conduct due diligence and background checks on third parties who
engage with foreign government entities on our behalf. All contract agreements contain termination clauses
At Layne, the experience of our employees directly
contributes to operating responsibly. From safety to energy
and everything in between, our employees execute their
roles with dedication and commitment and generate the
enduring performance of our company.
Layne’s highest priority is safety. Our employees are the foundation of our business and keeping our employees safe
is everyone’s job—from the highest levels of the organization down to the newest person on a job site. Through
our fiscal challenges, our commitment to safety has never wavered. We have added new innovations and goals to
our safety processes and tools and reorganized safety coordinator responsibilities to enable Division Leadership
to ensure focus occurs where it will bring the highest value.
GoPro Cameras Shine a New Light on Safety
At Layne, we cultivate The Value of Experience by learning from each
other. We recognize that seeing and observing safety practices in the
field is extremely valuable. Many employees have stated that the best
way to stay safe is to learn from their experienced colleagues. Building
off that idea, we devised an innovative new plan for employees to watch
our procedures in jobsite situations through the use of GoPro cameras.
By using these cameras to record safety in action, we are enhancing
the safety training curriculum delivered across our company.
This is how it works: Layne employees participating in the training
demonstration attach the GoPro cameras to their helmets and then
perform a normal jobsite task. Through performing the task, the video
captures a first-person narrative of the steps taken to ensure the safe
execution of the task. Trainees see what they will eventually do in the field.
Additionally, they are able to ask more informed questions and develop
critical thinking around how they would address a safety problem in the
field. At Layne, we know that “seeing is believing” and there is no better
way to train our employees in our culture of safety than through
the lens of first-hand experience.
New Technology Enhances Safety Performance
Safety at Layne improves through information sharing, ultimately
supporting behavior-based prevention. In FY15, we took steps to enhance
safety data collection and sharing through the implementation of a
new company-wide software system. Through this system, we receive
raw data on a daily basis, enabling us to track trends and respond. Our
system is designed to make us even more proactive about the steps we
are taking to ensure the safety of our employees. We are in the process
of deploying the system throughout our divisions and look forward to
driving improvements in our safety performance throughout the months
and years ahead.
LAYNE OSHA SAFETY STATISTICS*
CY2014 CY2013 CY2012
Total Recordable Incident Rate (TRIR) 4.02 3.39 4.06
Lost Time Incident Rate 0.8 0.6 0.8
Lost Time Cases 22 16 26
*OSHA DATA ARE APPLICABLE TO U.S. OPERATIONS.
LAYNE GLOBAL CONSOLIDATED SAFETY STATISTICS*
CY2014 CY2013 CY2012
Total Recordable Incident Rate (TRIR) 2.79 2.37 2.93
Lost Time Incident Rate 0.56 0.52 0.66
Lost Time Cases 24 25 35
*CONSOLIDATED WORLDWIDE SAFETY DATA.
Energy & Carbon Footprint
Layne’s purpose as a company is to protect the world’s essential natural resources, and we strive to demonstrate
our responsibility through our daily operations. We are committed to lowering the use of diesel and gasoline fuel
at our job sites and electricity use at our facilities. For four years, we have reported on our carbon emissions and
climate change strategy, risk and opportunity through the Carbon Disclosure Project (CDP). Our CDP response is
available at www.cdp.net.
Our environmental performance in FY15 demonstrated improvements in performance, mainly resulting from
operational changes. Although we continue to measure our impact across all of our facilities, we have shifted
our reporting practices to capture the 10 facilities that represent the largest impact on our overall numbers.
We will continue to evaluate our reporting practices and make any additional changes as needed.
In FY15, our use of natural gas decreased at our 10 highest impact facilities by 12% over FY14 levels. Additionally,
we decreased our electrical use at our top 10 facilities by 21% in FY15 over FY14. Electricity use decreased by 26%
across these facilities between FY13 and FY15. This change was primarily due to the move to our new corporate
facilities and the phasing out of certain water treatment related activities in Phoenix.
GREENHOUSE GAS EMISSIONS + ENERGY CONSUMPTION
Emissions (MTCO 2
Scope 1 Scope 2 Scope 1 and 2
Natural Gas* Diesel Gasoline Propane* Total Electricity* Total
813 35,695 8,791 1,344 46,643 2,686 49,329
4,498 168,087 37,199 4,264 214,048 4,481 218,529
* NATURAL GAS AND ELECTRICITY USE IS FOR OUR 10 HIGHEST IMPACT U.S. FACILITIES. PROPANE IS FOR JOB-SITES AND DOES NOT INCLUDE PROPANE USED BY FACILITIES,
WHICH IS ESTIMATED TO BE LESS THAN TWO PERCENT OF TOTAL FOOTPRINT. WE EXTRAPOLATED TO CALCULATE OUR EMISSIONS FOR OUR “BULK FUEL” CONSUMPTION
BASED ON SPEND DURING THE REPORTING YEAR, AND USED ASSUMPTIONS BASED ON THE AVERAGE PRICE PER GALLON WE PAID FOR FUEL IN FISCAL YEAR 2015 FOR
FUEL PURCHASED THROUGH OUR CREDIT CARD VENDORS.
* ELECTRICITY USE DATA REPRESENTS LAYNE’S 10 FACILITIES WITH THE HIGHEST
ELECTRICITY USE ACROSS OUR OPERATIONS FOR FY13 TO FY15.
Electricity use at our 10 highest impact facilities decreased by 26% between
FY13 and FY15.
Waste & Recycling
Last year, Layne began partnering with Waste
Management to provide a centralized waste disposal
process across our U.S. operations. By using a single
provider, we aim to better manage costs, optimize
recycling efforts and standardize U.S. waste streams.
Our partnership has enabled us to report our waste
data for the first time in this year’s report.
WASTE TO LANDFILLS
Layne recycled 4.3% of our waste
* U.S. OPERATIONS ONLY
Layne tracks our water use across all facilities and
divisions. For FY15, we are reporting on the 10
facilities with the largest water use. Our water use
decreased by over 50% between FY14 and FY15,
which is primarily due to changes in our water
treatment business in Phoenix, Arizona.
MUNICIPAL WATER CONSUMPTION BY DIVISION
Gallons 3,301,712 1,203,004 297,325 427,000 5,229,041
Cubic Meters 12,498 4,554 1,125 1,616 19,794
* WATER USE IS FOR OUR 10 HIGHEST IMPACT U.S. FACILITIES ONLY. EXCLUDES JOB-SITE WATER USE AND FACILITIES WITH ON-SITE WELLS.
Layne reduced our water use at our
10 highest impact facilities by over
50% between FY14 and FY15.
SUSTAINABLE PRODUCTS & SERVICES
At Layne, we share The Value of Experience through sustainable
solutions. In FY15, we refined our definition of Sustainable
Solutions and developed a methodology for determining the
percentage of each of our products and services that is
sustainable. We engaged project managers to determine the
extent to which core Layne services minimize client energy
use, water use or waste. By using this system, we enable
more accurate tracking of our direct business contributions
to sustainable and responsible operations.
Over the last two years, we saw significant increases in our Inliner cured in place pipe (CIPP) liner, recovery
wells and water transfer services. Additionally, we experienced a remarkable 40% increase in our water supply
identification and development business. This increase was primarily due to alternate water supply development
in the Louisiana industrial corridor between Baton Rouge and New Orleans, a water stressed region, as well
as an increase in mine dewatering work.
Aeration and Innovation in Rockford, IL
Layne strives to deliver value to our customers
by finding cost effective solutions to aging
infrastructure. Sustainable solutions enable
our customers, especially municipalities with
tight budgets, to benefit from our innovative
solutions to even their largest problems. In
Rockford, Illinois, our Water Resources team
designed a solution to revamp a water source
that was exhibiting high levels of volatile
organic compounds (VOCs). Layne employees
determined that the well in question, Rockford
UW6, was a likely site candidate to have an
aeration process installed to remove the VOCs.
Layne installed six cone-like aerators and
it was precisely the right solution for the
situation. As a result, the level of VOCs in the
water decreased dramatically and Rockford
was able to save the well. The source is
projected to pump 475 million gallons in 2015.
Layne presented the findings of the project
alongside Rockford at a recent American Water
Works Association conference in Illinois. We
are very pleased that a simple, cost effective
solution provided such a useful end result.
REVENUE FROM SUSTAINABLE SOLUTIONS
% of Revenue from Sustainable Solutions
Layne Inliner STX (UV Cured CIPP)
At Layne, our employees recognize the value of connecting innovation
with sustainability. At our Orleans, Indiana facility, we are working on
an exciting new line of products that demonstrate our commitment to
both principles. In FY15, our Inliner division based in Orleans launched
a new type of solution called the STX (UV Cured CIPP). This product is
revolutionary in terms of how it can be stored, transported and handled by
our customers. Other Inliner solutions, including many of our most popular
products, require heat to enable the correct reaction for installation. With
the UV Cured CIPP, the material responds to UV light to enable that same
reaction. This advancement has many benefits. For example, the product
does not need to be kept refrigerated in order to maintain its usefulness.
As a result, it has a longer shelf life of six weeks (compared to 10 days
for heat-reactive inliner products), so it can be shipped farther distances.
Additionally, Layne is saving fuel costs by being able to ship the product
with non-refrigerated storage containers. Through this new product, we
are serving customers as far away as Alaska and the U.S. Virgin Islands,
while boasting a lower environmental footprint.
1800 Hughes Landing Boulevard
The Woodlands, TX 77380