Environmental

Grafton Merchanting GB has always attached a high importance to environmental issues. Our Health, Safety, Quality & Environmental department is a dedicated team of qualified and experienced people working on many related issues, including:

• ISO 14001 Environmental Management System
• ISO 14064 Carbon Trust Standard
• ISO 9001 Quality Management System
• The Carbon Reduction Commitment Energy Efficiency Scheme
• Packaging and Waste
• Pollution Prevention

We have set ourselves a target to reduce carbon emissions by 3% a year. Indeed, our tonnes of emissions per £m reduced by 6% from 2009 to 2010. The chart below shows our progress for the last two years, and 2011 thus far is also looking favourable.

In April 2011 we introduced a new company car fleet based on low emission cars and about 75% of staff have chosen a very low emission car, demonstrating our culture and commitment to be an environmentally friendly company.

Each of our branches has a Branch Environmental Champion and external and internal audits have shown improvements every year.

Holding ISO 9001 Quality Management System accreditation in some of our businesses also enables us to see that documentation, records, procedures, progress chasing and continual improvement are constantly monitored.

The way we deal with our waste and recycling is also very important to us and our partnership with Biffa has enabled us to reduce our waste to land fill by 9%. and increase our recycling rates for the last couple of years.

Environmental Policy

It has over recent years become increasingly evident that the continuing pollution of the environment could endanger the quality of life of future generations.

Governments and other organisations in many countries are now more aware of the impact of past ignorance regarding environmental matters and increasingly have become more environmentally active.

In recognition of this, Grafton Merchanting GB (GMGB) has developed this Environmental Strategy which indicates the policy and proposals regarding conservation for the future, throughout its operations.

ENVIRONMENTAL STRATEGY STATEMENT

GMGB are committed to the prevention and reduction of pollution and to continual improvement of its environmental management system. This will include an ongoing programme to reduce carbon emissions and reduce energy consumption in our premises.

• We are committed to complying with all applicable legislation and other requirements related to environmental aspects.

• We will review all policies, programmes and services and undertake wherever necessary to improve environmental standards to the benefit of the community as a whole.

• We will continue to promote the conservation and sustainable use of natural resources, to minimise environmental pollution in all of our own activities and through our influence, over others, whenever possible. We will also promote and make our customers aware of any environmentally friendly products we sell.

• We will always work towards maximising our procedures with regard to reducing, reusing and recycling waste.

RESPONSIBILITIES

The GMGB Director responsible for Health, Safety and Environmental issues will:

• Ensure so far as is reasonably practicable, the necessary training is carried out to ensure compliance within Grafton Merchanting operations.

• Ensure that subcontractors working for Grafton Merchanting are made aware of the Environmental Policy and the requirements for its implementation

• Audit the policy on a regular basis and report the results of any such audit to the Board of Directors.

The GMGB Head of Health, Safety and Environment will:

• Ensure, so far as is reasonably practicable, the necessary information, training and instruction on environmental issues and report to the Health & Safety Director. GMGB branches, in conjunction with the Health, Safety and Environmental manager and Branch

Environmental Champions will:

• Maintain an energy conservation policy to reduce the consumption of non-renewable resources.

• Minimise all waste and reduce, reuse, and recycle wastes whenever possible.

• Take part in recycling by whatever means practical to achieve substantial increases in the reuse of waste materials.

• Purchase items using recycled materials wherever possible.

• Only buy products which use non-renewable resources, if suitable equivalents are not available.

• Avoid the purchase of any product, wherever possible, the production or use of which pollutes the environment.

• Extend the training programmes of Grafton Merchanting to include elements which educate the staff, contractors and others in environmental protection and ecological matters.

February 2011