1. Environmental Management in Severn Trent Sue Painting Severn Trent Plc

2. Environmental Management in Severn Trent Agenda 1. The Severn Trent Group 2. Positioning 3. Background to EMS 4. EMS framework 5. How it works in practice 6. Conclusion

3. SEVERN TRENT PROPERTY Environmental Management in Severn Trent

4. Severn Trent Positioning Environmental Management in Severn Trent Our corporate vision is to be at the forefront of the environmental services industry. Our corporate values of Environmental Leadership, Service and Quality, enshrined in our Code of Conduct, define our business culture and guide our strategies.

5. Background 1992 Group CEO appointed as Board member responsible for environmental matters and Environmental Directorate created 1993First environmental report following review of performance. EMS developed to BS 7750 standard 1999Group EMS revised and awarded ISO 14001 certification Environmental Management in Severn Trent

6. Severn Trent Board Corporate Responsibility Advisory Committee Biffa Severn Trent Water Severn Trent Laboratories Other Group Companies Corporate Affairs Director Group Corporate Responsibility Team Corporate Responsibility Forum Commitment Policy Protocols Aspects Objectives Targets Audits Review Environmental Management System Environmental Management in Severn Trent

7. Board Corporate Responsibility Committee – Terms of Reference Provide policy guidance in relation to the following key corporate responsibility issues facing the Company: - The development, review and promulgation of environmental policies particularly those that relate to the activities where the Group has its most significant environmental impacts in respect of energy management and climate change, waste and resource productivity and biodiversity and land use; - The maintenance and continuing effectiveness of the Group’s ISO14001 certified environmental management system and review of the annual cycle of environmental audits to ensure compliance with Group protocols; Environmental Management in Severn Trent

8. Severn Trent Board Corporate Responsibility Advisory Committee Biffa Severn Trent Water Severn Trent Laboratories Other Group Companies Corporate Affairs Director Group Corporate Responsibility Team Corporate Responsibility Forum Commitment Policy Protocols Aspects Objectives Targets Audits Review Environmental Management System Environmental Management in Severn Trent

9. Corporate Responsibility Policy Environmental Management in Severn Trent

10. Simple Minimal documentation and bureaucracy Integral part of ‘the business’ Transparency Encourages innovation Our EMS Environmental Management in Severn Trent

11. Severn Trent Board Corporate Responsibility Advisory Committee Biffa Severn Trent Water Severn Trent Laboratories Other Group Companies Corporate Affairs Director Group Corporate Responsibility Team Corporate Responsibility Forum Commitment Policy Protocols Aspects Objectives Targets Audits Review Environmental Management System Environmental Management in Severn Trent

12. Environmental Management Protocols Establish the standard to which the business units should operate Allows flexibility to meet the needs of the businesses Implementation of the protocols are audited on a regular basis Environmental Management in Severn Trent

13. Protocols 1. Roles and responsibilities 2. Environmental aspects, objectives and targets 3. Legal and other requirements 4. Corporate reporting 5. Audit of operating companies 6. Staff awareness 7. Operations 8. Acquisitions and divestitures 9. Document control 10. Environmental claims 11. Emergency preparedness 12. Reporting of environmental incidents 13. Supply Chain Management Environmental Management in Severn Trent

14. Operation or Activity Significance Score Gaseous emissions to atmosphere 55 Effluent emissions to water 50 Transport of materials and personnel 50 Fuel consumption 50 Generation of all solid waste 40 Generation of liquid waste 36 Purchased electricity consumption 36 Disruption of habitats and ecosystems 32 Environmental Management in Severn Trent Severn Trent Group – Significant Aspects

15. Reporting Performance - Stewardship 2004 12th year of reporting environmental performance Group-wide data and targets Key performance indicators covering: –Environment –Workplace –Community –Marketplace and Economic Environmental Management in Severn Trent

16. Climate change Objective To pursue a group-wide carbon management strategy that tackles climate change in the longer term Adaptation - adapting to threats and opportunities Mitigation - minimising our impacts Energy management Transport Environmental Management in Severn Trent

17. Climate Change – Managing Greenhouse Gas Emissions Biffa Increase energy generation capacity to 100 MW by 2005/06 Continue the programme to reduce fuel consumption compared to business activity Laboratories Stabilise travel by air and road-based transport at current levels relative to business activity STW Generate at least 7% of total energy use from renewable sources by 2005

18. We generate from renewable sources the equivalent of over 40% of our total electricity needs Climate change Environmental Management in Severn Trent

19. EMS Audit Process Annual self-assessment questionnaire to all business units. - Trends in performance monitored Independent audit by Severn Trent Plc -Frequency defined by environmental significance of activities and previous performance -Sites audited on a sample basis -Auditors from other business units support Plc Auditor Reported to Board Corporate Responsibility Committee Environmental Management in Severn Trent

20. Benefits of Group EMS Provides a framework for environmental management across the group Ensures designation of responsibility and accountability for management of environmental matters Requires measurement of environmental impacts, hence management information Establishes commitment to continual improvement Management of environmental risk Environmental Management in Severn Trent