1. EMS adding value IEMA regional workshop 07/07/10 Matthew Payne
Environmental Improvement Manager

2. Overview About Rolls-Royce Reasons for having an EMS
History of EMS in Rolls-Royce
Experience of benefits from having an EMS

3. Our four markets
Rolls-Royce proprietary information

4. Key statistics
Rolls-Royce proprietary information

5. Why have an “EMS”? “Tick in the box?” “Badge on the wall?”
Adding value to the business?

6. Benefits of an effective EMS
Assists in the protection of the environment
Helps in reducing potential business risks
Turn potential business threats resulting from environmental concerns into business opportunities

7. Areas an EMS can add value
Public Relations
Finance
Insurance
Cost Saving
Reputation
Competition
Customers
Liability Avoidance

8. History of EMS in Rolls-Royce
1994 HS&E Manual (mainly H&S)
1997 Main Board commitment to achieve ISO certification
1998–1999 EMS implementation programme
1999 Businesses certified to ISO 14001
2000 onwards - new businesses mandated to achieve certification
2009 Move to global certification contract

9. Our environment strategy
Rolls-Royce proprietary information

10. Scope of our EMS includes…
Activities
Manufacturing
Product test
Purchasing – supply chain management
Facilities management
Offices & support functions
Products
Design
Materials
R&D
Services
Field service

11. Governance EMS has assisted with governance
Focus on what is important (key risks)
Exec level responsibility
Management review
Supporting meeting structure
Communication
E.g public reporting
Independent assurance
Management systems
Performance data

12. Stakeholders & company reputation
EMS benefits
Customers
Increasingly requiring formal EMS
Ability to respond to technical questions
Assurance
Regulators
Maintain compliance, robust emergency arrangements
Public
Responsible and responsive neighbour
Benchmarking via indexes (BiTC, DJSI etc)

13. Efficiencies from integration of EMS
Combined HS&E management system
Synergies with
Management System documentation
O&T setting and tracking
Management review
Etc
Incorporated into QMS
Synergies with:
Audit process
Document & record control

14. EMS & maintaining legal compliance
Environmental law still developing
Licence to operate
E.g. Env. Permitting Regs
Keeping ahead
Maintain access to markets
Manage business continuity risks
E.g. REACH, RoHS etc
Maintain/enhance reputation
CRC – league tables
Negative publicity for incidents/ breaches of regulation

15. Continual improvement - performance

16. Waste reduction & product quality
EMS target to reduce waste
Foundry sand a dominant waste stream
Thermal reclamation plant installed at Bergen foundry ~ 2006
Benefits
Less raw materials needed
~ 50% reduction in landfilled sand
~ £350k savings/year
Improvements to casting quality

17. Recycling & resource efficiency
EMS target to increase recycling
Metal recycling
Manufacturing and scrap product
Segregation – better financial return
Move to closed loop recycling
Sustainability of limited resources
maintain continuity of access to specific materials
Feedstock back into product

18. Energy saving & productivity
Ceramic core manufacture
Change from conventional electric to microwave drying oven
90% reduction in energy use
33% reduction in drying cycle

19. Using EMS to influence behaviour
Energy saving (turn it off campaign)
Cost saving
Waste segregation
Easier to recycle
Lower disposal costs

20. EMS and influencing supply chain
Increasing stakeholder expectations
Journey – part of long term continual improvement
Benefits
Increased awareness of environmental issues
Risk management (e.g. REACH)
Business requirements
HS&E policy for suppliers
Technical issues
e.g. hazardous substance management
e.g. packaging requirements
Support
Supplier environmental workshops
Awareness materials

21. Questions
Further information