ENVIRONMENT AND SOCIETY 4 bauder. ie Economic growth Environmental protection Social progress Economic efficiency Social environmental Sustainability Social economic Job creation Skills enhancement Local economic impacts Social investments Business ethics Zero waste Emissions reduction Regulatory compliance Resourse efficiency Product stewardship Life cycle analysis Safety and health Local environment Global climate change Revenue earnings Net cash flow Shareholder return Diversity Employee opinion Human rights Conflict prevention Community outreach Indigenous communities Labour standards The Bauder Group is totally committed to reducing the impact its business has on the environment. Fully understanding the relationship between the protection of the environment, needs of society and the requirements of our shareholders to maintain a good return on capital invested is the holistic approach we adopt at Bauder and is the only true way we can ensure our business and products are truly sustainable. Bauder understands the importance in assisting our customers, specifiers and contractors, in achieving their own sustainable targets by providing them with informative, honest data to enable them to making an informed choice when choosing Bauder roofing systems. ENVIRONMENT Environmental Management To provide the business with a framework on which to manage our environmental initiatives Bauder has implemented an environmental management system. This will also help monitor that we continuously improve our environmental performance and meets the requirements of our ISO 14001accreditation. Under this framework Bauder is able to rigorously pursue the following objectives: n To reduce emissions and prevent pollution n To improve waste management practices n To reduce consumption of natural resources n To assist in the management of ecology n To make its environmental information readily available to interested parties The Environmental Policy and management system is of high strategic importance to the Company and therefore communicated to and championed by all Bauder personnel. BREEAM Bauder is able to provide systems that achieve an A+ rating in the new Building Research Establishment Green Guide. This assists clients in gaining additional credits under the relevant categories within BREEAM and the code for sustainable homes. SOCIETY Health and Safety Bauder is committed to providing a work environment that is safe and healthy for all employees and those affected by our activities. The Company's' operations shall be carried out so as to ensure that the Health, Safety or Conditions of any person or property will not be adversely affected. The requirements of the Health & Safety Policy are communicated to all employees and the involvement of all individuals within the Company in the management of health and safety is actively promoted through effective consultation, involvement and regular training sessions. COMMUNITIES Bauder believes the construction of high quality refurbished and new roofs is an important contributor to improving the quality of life in the communities in which we work. We look to engage locally so that safety, transport, noise and logistics are tackled in a practicable and sensible manner. This is good business as well as responsible business. Wherever possible we look to be a contributor to our communities, not merely a short- term inconvenience. By participating in Residents Meetings and local community jobs fairs Bauder actively generates employment opportunities for local people and supports our clients and contractors in community initiatives wherever possible. ( Source: Ree, H. J. van, and J. J. van Meel, 2007) Bauder sedum farm currently growing 150,000 m ² in Norfolk Bauder charity cycle ride. The team raised almost £ 20,000

MANUFACTURING Bauder's aim is to manufacture the highest quality flat roofing systems which offer the longest service life therefore providing lower whole life costs. However, by further focusing on improving our manufacturing processes for all our products Bauder is able to further reduce cost, raw material waste and emissions and dramatically reduce the energy and water requirements during production. For example, over a five year period Bauder has successfully reduced the energy consumption for the manufacture of bituminous membranes by over 20% and for the manufacture of PIR Insulation by 45%. The energy consumption is expected to be further reduced with further modernisation of batching and production lines during 2007- 2010. Good for the business, good for our clients and good for the environment. 5 bauder. co. uk OUR PRODUCTS IN USE Bauder membranes are responsible for protecting the building fabric as well as the contents and inhabitants of the buildings we provide roofs for. Thermal Efficiency It has long been recognised that upgrading the thermal insulation and regulations for buildings has an immediate and significant impact on CO 2 emissions in addition to improving quality of life and increasing productivity through better working conditions. The embodied energy of Bauder's rigid polyurethane ( PUR/ PIR) insulation accounts for as little as 4% of the energy the board can save during its serviceable life. With Buildings utilising 50% of the energy consumption in Europe the inclusion of insulation when installing new or refurbished roofs plays a significant part in reducing CO 2 emissions. By utilising thermographic imagery and sophisticated software Bauder is able to offer energy calculations for individual roofs providing the client with accurate costs and the savings that can be expected. Full energy comparison can be provided for Bauder systems including an Energy Performance Assessment Rating. The thermal performance of Bauder green roofs also plays a significant part in the reduction of energy required particularly in the cooling of buildings in the summer. An example being the installation of 850m ² of sedum blanket retro fitted to an area of the Canary Wharf development, London, saving approximately £ 5,000 a year in air conditioning cost. TRANSPORT The Company operates a fleet policy that ensures the correct choices are made with regards to vehicles, fuel type, route planning and alternative methods of business operation. Bauder haulage partners operate a modern fleet of vehicles that offer reduced fuel consumption and by utilising local distribution hubs Bauder is able to offer just in time deliveries in suitably sized vehicles and therefore further minimising the impact on both the environment and local communities. Bauder offer innovative solutions to off- set the carbon produced in the delivery of its materials for key projects. 2004200520062007 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Energy Reduction in the Production of Bituminous Membranes Energy Reduction in the Production of PIR Insulation 50 45 40 35 30 25 20 15 10 5 0200220032004200520062007 MANAGING OUR IMPACTS RECYCLED CONTENT Through working closely with our suppliers and through extensive research Bauder has steadily increased the recycled content of many of our products without any detrimental effect on their performance. Clients are able to specify Bauder membranes with recycled content of up to 25%. Other key Bauder products consist of shredded car tyres, recycled clothing, polystyrene and hard core and even organic waste. This enables us to offer complete green roof systems with 81% recycled content by volume. RECYCLING AND DOWN CYCLING OF BAUDER PRODUCTS The recycling of roofing membranes and insulation once they have reached the end of their serviceable life continues to be a challenge for all manufacturers due largely to the life expectancy of the systems and geographical spread of the roofs. However, Bauder has developed system options that significantly increase the opportunity to extend the life or to allow partial replacements of roofs once they reach the end of their serviceable life. Alliances with other forward thinking companies has resulted in innovative recycling opportunities such as the supply of PIR fragments for the use of hand cleaners as well as for the manufacture of decking boards. On site, working closely with recycling specialists Bauder been instrumental in successfully achieving recycling targets by reducing the volume of waste to landfill by 90%.