Spectris operates from 160 offices in 29 countries around the world. The company’s products are used to monitor and control research and manufacturing processes, enhancing productivity and reducing environmental impact for customers in a wide range of industries. Spectris is committed to creating business growth through adding such value for its customers whilst also ensuring that its own impact on the environment is minimised.

Spectris continues to meet the criteria for membership of the FTSE4Good index, the leading responsible investment benchmark. The index series is designed to track the performance of companies meeting international corporate responsibility standards. The FTSE4Good inclusion criteria are enhanced regularly and demand continued improvement in order to maintain inclusion in the index. The criteria are assessed on a regular basis by the independent research organisation EIRIS.

The policies and information described below apply to all Spectris operations.

Policy setting and monitoring
Overall responsibility for developing corporate policies on environmental, social, ethical, and health and safety matters, and for reviewing their effectiveness, lies with the Spectris Board. These policies are mandated across all business units and applied within each particular business, taking account of local legislation and regulation. All policies are reviewed periodically and any updates are communicated to the operating companies.

Currently, operating companies may establish additional non-financial policies and appropriate key performance indicators relevant to the nature of their operations and their customers. However, in order to develop a more comprehensive approach to our sustainability worldwide, the Board is reviewing the feasibility and value of establishing group-wide metrics during 2010.

Reporting and compliance
Conformity with the above group policies is monitored by self-certification, on an annual basis, by the managing director and finance director of each operating company that their business has complied in full. Any instances of non-compliance must be reported.

Such certification forms an integral part of the company’s risk management and corporate governance processes, and is regularly reviewed by the group’s internal audit function and considered annually by the company’s external auditors. Compliance testing is a formal part of internal audit reviews. Through a structured review process, the internal audit function undertakes visits to group locations on a rotational basis. These visits involve an assessment of the business’ key internal controls as well as compliance with the group’s policies and procedures. The results of internal audits and any non-compliance events are reported to the Audit Committee.

Risk assessment
The key potential risks and uncertainties which could have a material impact on the group’s long-term performance are described here.

The group does not consider that there are any material environmental, social or governmental risks which may impact the business. Nevertheless, the process for identification of potential risks to the business and the procedures for their mitigation are regularly reviewed by the group’s internal audit function and the Audit Committee.

A very small proportion of our products and processes have potential environmental risks. The PANalytical business, which supplies instrumentation for X-ray analysis, makes limited use of beryllium in detector windows and X-ray tubes, whilst certain NDC Infrared Engineering products utilise low-level sealed radioactive sources. In all cases, the legal requirements for the correct handling and labelling of such products are documented and regularly audited for compliance. Procedures also exist for the disposal of contaminated waste and for recovering used products from customers and disposing of them safely. The Servomex gas analysis business requires the storage of flammable and toxic gases at its technical centre. Operating procedures for the movement and use of cylinders containing such gases are in accordance with the appropriate legal requirements and are inspected annually by an independent authority. Chemical and hazardous waste is disposed of in accordance with written procedures.