Throughout the business we apply a structured approach to minimising our environmental impact. This includes:

• Implementation and maintenance of formal environmental management systems registered to ISO 14001
• Measuring our consumption and emissions and setting targets to improve performance
• Carrying out environmental risk assessments and developing site management plans
• Delivering solutions to clients to enable them to minimise their environmental impact
• Providing training to employees and our supply chain to raise environmental awareness
• Providing facilities to segregate and reuse or recycle waste

Environmental Management Standard ISO 14001

ISO 14001 is the internationally recognised standard for EMSs. It specifies a process for controlling and improving a company's environmental performance and consists of:

• General requirements
• Environmental policy
• Planning
• Implementation and operation
• Checking and corrective action
• Management review

Project Services holds ISO 14001 registration for all of its main operations and in Facilities Services our contracts with the Metropolitan Police, Slough Borough Council, Office for National Statistics and North Cumbria Acute Hospital Trust are registered. A corporate EMS document was completed and launched on the Group's intranet in August 2006; we have designated, briefed and trained a number of EMS managers across the Group and are carrying out a series of BSI EMS audits.

Environmental impact

Alongside the need to manage the potential impact of our operations on the environment we have the opportunity to work with our customers to help deliver their environmental objectives and to provide environmentally innovative methods of working. For example, we have continued to play active roles in both the Westminster Sustainable Business Forum, where we are contributing to governmental working parties on sustainable development, and the Strategic Supply Chain Group, which is supported by ActionSustainability and helps to set the agenda for business and government activity in sustainable supply chain management.

The success of this approach is reflected in the awards we have received:

• A European Business Award for the Environment for our performance throughout our work on the Avon Causeway Bridge replacement. The project was also a "National Gold winner 2007" and we have received formal recognition as a "National Green Hero".
• Our renovation of the Grade-II-listed Victoria Footbridge suspension bridge on the over the River Wye won a Green Apple Environmental Award of National Champions as well as a Considerate Contractor award.
• Considerate Contractor awards for our work at Friarage Hospital, Lambeth Hospital and Hadley Learning Community.
• Interserve was highly commended in the "Most Considerate Commercial Contractor" category in the Considerate Constructors Awards.
• A Royal institute of Chartered Surveyors Renaissance Award for building conservation for its conversion of the Grade-II-listed Grand Assembly Rooms at Newcastle University into the "Culture Lab", a new facility where businesses and other organisations can work with the university.

We use a variety of indicators relevant to each of our operating companies to monitor environmental performance, but the following core impacts are identified for the Group as a whole:

• Greenhouse gas emissions from our use of energy, including electricity, gas, fuel in vehicles, transport and travel
• Use of resources including water and timber
• Generation and disposal of waste

Unless otherwise specified, the data cover the Group's UK-based operations.

Carbon footprint

A carbon tariff can be ascribed to the energy used in a wide range of activities associated with Interserve operations. The figures below are based on the actual or estimated impact associated with the core and fixed site service carried out under the full management control of Interserve within the UK. The principal constituents are:

• Fuel (diesel and petrol) consumption in company road vehicles and vehicles being used on company business, including cars, vans, lorries and site-based plant
• Electricity used at fixed sites – offices, branches etc. – for lighting, cooling, IT equipment, heating and process equipment
• Gas and oil used to heat premises
• Travel by employees on company business in the UK and overseas, including train journeys and flying

Our estimate of carbon dioxide emissions in 2007 is 20.4 tonnes per £million of revenue (2006: 22.0 tonnes per £million), a total of 35,461 tonnes (2006: 30,949 tonnes). This was apportioned:

Fuel use contributes the majority (83 per cent) of the Group carbon emissions. A number of initiatives were undertaken during the year to reduce them:

• We introduced a total of 20 LPG vehicles across a range of contracts including the Metropolitan Police, South East Regional Prime and UCLH and within our own operations. These should produce 10 per cent less CO2 than the equivalent petrol version.
• Video conferencing facilities have been installed in 25 locations. Each use represents a saving on potential distances travelled.
• A Green Travel Plan is in place within the Facilities Management division and is believed to have led to a 1 per cent reduction is fuel consumption in the first year of operation.

Resource use

Water is used mainly to provide welfare facilities in offices. A certain amount of process water is used in heating systems, cleaning operations and spray booth filters. For our fixed sites we used an estimated 27.8 m³ per £million of revenue (2006: 32.4m³ per £million) a total of 48,372 m³ (2006: 45,700 m³).

Timber scaffold boards and formwork panels are sold and hired out in our scaffolding and formwork operations, and we operate a small factory producing wood-based products in support of our shop-fitting activities. We have assurances from the suppliers of these products and of the timber for the factory that sources are registered with the Programme for the Endorsement of Forest Certification or certified with the Forest Stewardship Council.

Waste

All fixed and temporary sites operate procedures to stream and recycle waste wherever possible. In offices this includes recycling paper, printer cartridges and redundant equipment, and on sites can include timber, metals and inert hardcore etc.

An estimated 55,300 tonnes of waste was created as a direct result of Interserve activities. This includes office waste, construction site waste and waste we produce as a result of the services we provide to our clients. We calculate that approximately 19,500 tonnes (35 per cent) was reused or recycled.

Project Services operates a waste skip service and a waste transfer station. We collected a total of 68,361 tonnes from clients and processed 21,115 tonnes through the waste transfer station. A total of 2,135 tonnes of material was reclaimed including 353 tonnes of steel and 157 tonnes of timber.

Pollution

Arrangements are in place to record and address any pollution incidents and environmental near misses. No enforcement action was taken against Interserve or any Group company in 2007.

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