1. International Conference of Road Safety at Work February 16 – 18, 2009 Paul Gallemore European Head of HSEQ The Rationale for Implementing Fleet Safety Programs from a Broad Government / Policy Perspective

2. Contents › Introduction to Wolseley › Why Fleet Safety is a Key Priority for the Government and Businesses › Demonstrating how Policies and Guidance are used to Engage and Influence Businesses › Highlighting key UK Legislation and Government led Policies › Implementing internal Policies and Programs › The importance of Benchmarking and Measuring performance › How the Government and other Influencing bodies can help Businesses further Improve Fleet Safety Performance › Highlighting Success and Continuous Improvement

3. Operations in 30 countries Over 5,300 branches worldwide 70,000 Employees £16.9 billion of sales 22,500 Vehicles (Cars and Trucks) At least 25,000 Drivers At least 5,000 Collisions (3 rd Party) Wolseley Group – Facts & Figures

4. Each week in the UK 200 road deaths and serious injuries involve someone at work › Work-related Road Accidents are the Biggest cause of Work-related Fatalities › Between 800 and 1000 people are Killed annually in Work-related Road Traffic Accidents › 4 times more likely to be Involved with the Fatal Road Accident than in a Fatal Workplace Accident › Drivers completing more than 80% of mileage for work have over 50% more injury accidents than similar drivers with no work mileage › Business drivers have collision rates that are 30 – 40% higher than those of private drivers › 4 in 10 tiredness-related crashes involve someone driving a commercial vehicle Why Fleet Safety is a Key Priority

5. Perceived prevalence of dangerous driving behaviour Answers to:- “Have you ever done the following?” 74% 42% 38% 36% 28% 24% 17% 14% 12% 10% 6% 2% 1% Drive over the speed limit Drive at 90mph when there is no traffic Park on double yellow lines Carry on driving when too tired Drive too fast for the conditions Don't use seatbelts when sitting in the back of the car Use mobile phones while driving WITH a hands free kit Use m/phones while driving WITHOUT a hands free kit Driving unsure if over the legal alcohol limit Use a mobile phone to text whilst driving Don't use seatbelts when sitting in the front of the car Drive when over legal alcohol limit Drive without insurance/ MOT Drive after smoking cannabis Drive after taking class A drugs Ever done

6. Moral Financial Duty of Care Legal Engaging the Business

7. › Health & Safety at Work Act 1974 › Management of Health & Safety at Work Regulations 1999 › The Provision and Use of Work Equipment Regulations 1998 › The Road Safety Act 2006 › The Health Act 2006 › Corporate Manslaughter & Corporate Homicide Act 2007 › Health and Safety (Offences) Act 2008 › ACPO - Road Death Investigation Manual Key Legislation & Guidance (UK) ACPO – Association of Chief Police Officers

8. Requires employers to: › complete a risk assessment of all activities, including fleet › provide a duty of care to employees, and to the general public › establish and communicate a Health & Safety policy › provide safe handling and maintenance of work articles › provide necessary information & training on the above and requires employees to: › take reasonable care of their own health & safety › take reasonable care of others who may be affected by their actions Key Legislation & Guidance (UK)

9. › The Health and Safety Executive and the Department for Transport issued guidance for employers in September 2003 to help employers manage road risk › The guidance focuses on the following key points:  Assessing your risks  The driver  The vehicle  The journey http://www.hse.gov.uk/pubns/indg382.pdf Key Legislation & Guidance (UK)

10. The “risk” factors › Lack of top level commitment › No ownership of health and safety › Poor attitude to safety › Poor custom and practice › Policies and procedures outdated › Lack of risk assessments › Lack of resource › “Profit before safety” culture Key Legislation & Guidance (UK)

11. POLICY ORGANISATION PLANNING & IMPLEMENTATION MEASURING PERFORMANCE REVIEWING PERFORMANCE PROCEDURES CONTROLCO-OPERATIONCOMMUNICATIONCOMPETENCE CONTROL KEY RISKSASSESS KEY RISKSIDENTIFY KEY RISKS KEY PERFORMANCE INDICATORS INITIATIVES AUDITACTION Continuous Improvement Culture Development Added Value HS[G]65/ILO Model Applying Effective Safety Management Techniques

12. Others › Prevent / Reduce Reversing › Observations / Speed Limiters › Driver Workshops › Mobile Phones – Limit Use › Accountability - Corrective Action Policy › Post Incident Investigations and Calls › Pre and Post Vehicle Inspection › High Visibility Clothing › Banksman Training › Management Bonus/Objectives › Near Miss / Hazard Reports › Behaviour Observations › Agency & Delivery Driver Controls › Site Lighting › Driver Manager Training › Campaigns – including: Captain of the Ship, Reversing, A & D, Weather Conditions, Fatigue, Mobile Phones Both on-line and on the road Internal Policies and Programs

14. › Policy is starting point for effective program › Effective ‘living/breathing’ policy is also a ‘protection’ if anything goes wrong › Wolseley UK implemented a new Fleet Safety Policy:  Supported by Employee and Driver Handbooks  Evaluated understanding using Risk Foundation assessment  Achieved buy-in using online Road Safety Pledge Internal Policies and Programs

16. http://www.virtualriskmanager.net/main/ Internal Policies and Programs

18. Zurich audit outcomes2004 %2006 %All fleets Fleet safety policy398473 OHS policy and risk assessment477868 Legal compliance608876 Organisational leadership and culture488172 Journey/mobility planning627277 Driver recruitment and induction748670 Driver management618065 Driver wellbeing427362 Vehicle management588376 Claims reporting and investigation436964 Marketing and community involvement368246 Reversing497064 Cash for cars608062 Agency drivers506073 Overall537868 Benchmarking and Measuring Performance

19. www.drivingforbetterbusiness.com Government & Agencies Support › Provide further assistance, support and guidance to businesses › Consider financial incentives to encourage participation for medium & small size businesses › Encourage professional bodies to integrate fleet safety into course syllabus

20. Putting all the Pieces Together Gap Analysis & Identify Business Needs Complete Business Case Deploy Fleet Safety Program Identify Short, Medium & Long Term Objectives Measure Performance & Evaluate Results Cost or Ease of Implementation Competitive Advantage Reduces Risk Increases Value Increases ownership & accountability leading to improved cost control Delivers improved collision and injury performance Reduces costs associated with vehicle operating and maintenance costs Reduces risk to employees, customers and society in general Enforces employee contractual requirements and benefits Improves operational efficiency – less business disruption Reduces financial risk (e.g. Direct (insured) & Indirect (Un-insured) costs) Reduces reputational risk (e.g. CSR issues) & increases Company profile Improves compliance with legal and reporting standards Low cost, High Impact “Quick Wins” High Priority Complete Cost Benefit Analysis to Determine Program Impact & Priority Medium Priority High Cost, Low Impact Low Priority Low Priority Medium Priority High Priority Benefit and Impact Critical Program Elements Important Program Elements Benefits Process Approach Performance Measurement Performance Review Develop Policy Risk Assessment Fleet Safety Program Targets & Objectives Measure Performance Audit, Communicate Review Low Hard / Expensive High Easy / Low Cost

21. › Year on year reduction in injury (35%) and Collision rates (45%) since 2004 › 1,000 collisions avoided in 07/08, equal to £1.5 million of direct costs and significantly more indirect costs avoided › Occupational H & S and Fleet Safety Program has received national and international recognition Highlighting Success

22. › For more information, contact:  paul.gallemore@wolseley.co.uk  01926 705622  harnam.singhnijjar@wolseley.co.uk  01926 705320 › Or visit www.wolseley.co.uk Thank You