Environment
Our core business of providing instruments and controls for the design and manufacturing processes of major industrial companies helps our customers to reduce their environmental impact in a number of ways. We offer our customers products and technologies to reduce energy consumption, make more efficient use of resources, and control emissions. A number of our products are used in the development, manufacture and maintenance of renewable energy generation technologies such as wind turbine generators and solar panels. For example, our Brüel & Kjær Vibro business has developed a remote monitoring solution for wind farm operators enabling them to minimise maintenance downtime and prevent breakdown. Our test and measurement segment is a leader in providing test equipment to develop the transport vehicles of the future, with energy efficiency and emissions reduction being critical design constraints. Many of our businesses are engaged in the optimisation of manufacturing processes, resulting in a beneficial impact on the environment. For example, Servomex supplies analysers which are used to monitor exhaust gases. The information these analysers provide enables customers to enhance the efficiency of their combustion processes and thus reduce emissions of pollutants and harmful gases. Further examples of the use of Spectris’ products having a direct beneficial contribution to the environment are shown on our website and we will continue to work with our customers to develop new products which will deliver renewable energy in the future.

We also take our own environmental impact seriously, endeavouring to employ non-polluting technology wherever possible in our operations and taking steps to reduce our energy consumption. Design processes take into account the operational lifetime of every product and end-of-life removal or disposal. Consideration is also given to environment-friendly production, packaging and shipping. Our environmental policy is published on our website here.

We further recognise that our strategy of outsourcing non-core manufacturing does not absolve us from responsibility for the environmental impact of our suppliers and we work to help them reduce their impact on the environment and ensure that their products meet relevant legislation. Supplier audits are regularly undertaken by operating company managements and the group’s strategic sourcing team.

Carbon management
Overall, Spectris has a low climate change impact, as our products do not require substantial manufacturing processes. Nevertheless, we recognise the importance of carbon management and are conscious of the growing requirement for reporting greenhouse gas emissions. Whilst we are below the threshold for participation in the UK CRC Energy Efficiency Scheme, we do take seriously the need to manage our carbon emissions and we have therefore established a project to determine a medium-term socially responsible investment strategy and the performance indicators and data which will be required to support this in a way which complements our businesses’ focus on day-to-day operations. We expect to be in a position to provide further details in the 2010 corporate social responsibility statement.

As a result of the divergent manufacturing processes across our various businesses, there are currently no group-wide metrics in place. However, local initiatives are in place at a number of sites to reduce energy and water consumption and minimise wastage. For example at our principal site in the Netherlands, despite a doubling of production volumes over the past ten years, the company’s overall energy usage has decreased by around 10%. Within our Danish operation, as a result of an energy saving programme launched in 2008, total electricity consumption had reduced by 17% by the end of 2009. At our main German facility, electricity usage has been reduced by over 5% over the past two years, and water consumption by over 35%. Our largest site in the UK has put in place a number of initiatives which resulted in electricity consumption reducing by 15% in 2009 and gas by 5%. The new technical centre for our Gas Analysis business in the UK, opened at the end of 2008, has been designed and built to the latest environmental standards, including the use of heat exchangers to maximise heating efficiency. Most sites have facilities for recycling waste paper, cardboard, glass, aluminium cans, plastic and reusing packaging materials.

Spectris complies with the UK Producer Responsibility Obligations (Packaging Waste) Regulations which set targets for the recovery and recycling of packaging waste.

Environmental management systems
Approximately half of Spectris’ manufacturing operations (by turnover) have now received accreditation to the environmental standard ISO14001.

During 2009 no significant environmental incidents were recorded.