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WILLMOTT DIXON GROUP SUSTAINABLE PROCUREMENT POLICY

Effective Date: 1st July 2012

CONTENTS
1. SUSTAINABLE PROCUREMENT POLICY STATEMENT 2. SCOPE OF THIS POLICY 3. GOODS 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 RESPONSIBLE SOURCING EMBODIED IMPACTS RECYCLED CONTENT GLOBAL WARMING POTENTIAL (GWP) VOLATILE ORGANIC COMPOUNDS (VOCs) PAPER TIMBER POLYVINYL CHLORIDE (PVC) ENERGY SUPPLY 4 4 4 5 5 5 5 6 6 6 7 7 7 8 TRADE CONTRACTORS PROFESSIONAL SERVICES INFORMATION SYSTEMS WASTE CATERING AGENCY LABOUR AND SITE SECURITY 8 8 8 9 9 9 9 10 10 11 3 4

3.10 TRANSPORTATION 3.11 PACKAGING 3.12 PLANT 3.13 TEMPORARY AND FIXED OFFICES 4. WORKS 4.1 5.1 5.2 5.3 5.4 5.5 APPENDICES APPENDIX A SUSTAINABLE PROCUREMENT OF MATERIALS AND PRODUCTS, IMPLEMENTATION MATRIX APPENDIX B SUMMARY TABLE 5. SERVICES

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WILLMOTT DIXON GROUP SUSTAINABLE PROCUREMENT POLICY STATEMENT At Willmott Dixon we operate in an industry sector that selects and utilises significant quantities of resources in the creation and maintenance of the built environment. The choices we make can have direct and indirect effects on people, organisations and the wider environment. This policy outlines how we plan to influence the right choices in order to reduce the consumption of primary resources and using materials with fewer negative impacts on the environment. By operating in line with this policy we will play our part in safeguarding natural resources by improving efficiency, reducing waste and stemming the loss of biodiversity. Our approach to sustainable procurement is in line with the principles contained within BS 8903. This standard was created to help the construction industry pursue bestpractice sustainable procurement. It offers recommendations and guidance on how to adopt and embed sustainable procurement practices and principles across an organisation and its respective supply chains. The standard provides a framework against which we have set our measurable aims and objectives for improvement over the procurement of goods, works and services. Aims and objectives: Use fewer resources and less energy through designing buildings more efficiently. Specify and select materials and products that strike a responsible balance between social, economic and environmental factors. Incorporate recycled content, use resource-efficient products and give due consideration to end-of-life uses. Influence, specify and source increasing amounts of materials which can be reused and consider future deconstruction and recovery of them. These are the so-called cradle-to-cradle principles, which take account of the entire lifespan of buildings, products and materials. Ensure that fair contract prices and terms are applied and respected, and that ethical, human rights and employment standards are met, in line with the United Nations Global Compact principles. Where possible, provide opportunities for small and medium sized enterprises (SMEs); support local employment, diversity and training; and work collaboratively with the voluntary sector, especially those near to our offices and projects. Source goods, works and services that embody our environmental and health and safety policy.

This policy is one of a number of ways that Willmott Dixon and everyone within the company can demonstrate social, environmental and economic responsibility.

RICK WILLMOTT Group Chief Executive WILLMOTT DIXON HOLDINGS LIMITED

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2. SCOPE OF THIS POLICY


The procurement of goods, works and services is our main activity and so has a significant impact on our performance as a business. This policy applies to the Willmott Dixon Group, and covers: Goods The physical materials from manufacturers and suppliers (including energy) that are purchased by Willmott Dixon, either directly or on our behalf. Works The procurement of labour and subcontractors that work on our projects. Services The procurement of professional skills and expertise including design consultancy, site security, waste and information systems.

3. GOODS
Responsible sourcing prevents the exploitation of people and land. We require our supply chain to be able tell us where materials have come from and provide details of the processes and people employed in producing them. This is part of our effort to create more transparency throughout our supply chain. We have set out a clear strategy around responsible sourcing within our Sustainable Procurement of Materials and Products, Implementation Matrix (see Appendix A) to communicate our expectations for the short, medium and longer term in relation to the sourcing of all materials and products.

3.1

RESPONSIBLE SOURCING

3.2

All materials used can have negative impacts on the environment, including its climate, water, toxicity and depletable resources. To enable Willmott Dixon to effectively undertake environmental assessments of products and materials and to quantify these impacts, we have set out what we require from our supply chain within our Sustainable Procurement of Materials and Products, Implementation Matrix. Material suppliers and manufacturers will now have to provide declarations on the embodied impacts of their products. The declaration must provide quantified environmental data using predetermined parameters through a verified system based on the CEN/TC350 standard BS EN 15804 Sustainability of Construction Works Environmental Product Declarations. We will use this information to make balanced decisions based on sound principles about the different materials we use.

EMBODIED IMPACTS

3.3

Willmott Dixon wants to influence the market by increasing the recycled content of the buildings we construct and maintain. This will reduce both waste sent to landfill and the amount of virgin materials used. We have set progressive targets for recycled content levels on our construction projects which are measured through our 10-Point Sustainable Project Criteria. And we will pursue this strategy where it does not increase the overall embodied impacts of the materials we use.

RECYCLED CONTENT

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3.4

To reduce the contribution we make to climate change, we require our suppliers to specify and use substances, (including refrigerants and insulants) with a GWP of less than five, where technically feasible.

GLOBAL WARMING POTENTIAL (GWP)

3.5

Long-term exposure to VOCs can have a serious negative effect on human health. These chemicals are often found in paint, roofing products, sealants and internal finishes. To minimise the impact of materials containing VOCs, Willmott Dixon will directly, and through our supply chain: Use low- or zero-VOC paints and sealants. Design out the use of high-VOC products by selecting alternative materials and finishes where available. Ensure that all materials and substances used comply with relevant legislation. Not use paints or other applied finishes containing lead.

VOLATILE ORGANIC COMPOUNDS (VOCs)

All paper for printing, photocopying and external publications must contain recycled fibre and/or virgin fibre sourced under a certified chain of custody conforming to a certification scheme approved by Central Point of Expertise on Timber Procurement (CPET). All paper products must be produced using non-chlorinating bleaching methods: elemental chlorine free (ECF), processed chlorine free (PCF) and total chlorine free (TCF) including oxidising and reductive bleaching.

3.6

PAPER

3.7

Willmott Dixon is committed to sourcing forest products from well-managed sources. We specify timber in accordance with forest certification and subsequent chain of custody schemes. Evidence of compliance can be provided by a scheme recognised by CPET, which currently approves two certification schemes as being evidence of legal and sustainable sourcing: Certification Scheme Programme for the Endorsement of Forest Certification (PEFC)* Forest Stewardship Council (FSC) Sustainable Only products or product lines containing >70% certified or recycled raw material. Only products or product lines containing >70% certified or recycled raw material.

TIMBER

* The North American schemes Sustainable Forestry Initiative (SFI), the Canadian Standards Association (CSA), and the Malaysian Timber Certification scheme, are all PEFC-endorsed and are therefore also acceptable with the appropriate chain of custody documentation. Where the supplier or contractor is not certified, this is classed as being a broken chain of custody. In these cases an auditable trail to the certified supplier must be provided in line with our Environmental Guidance Note - Sustainable Timber or as CPET Category B.
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We have an agreed plan which sets out our requirements for the certification of timber within our Sustainable Procurement of Materials and Products, Implementation Matrix. This communicates our requirements for the short, medium and longer term. Willmott Dixon and our supply chain including designers, specifiers and suppliers of materials must comply with this policy.

3.8

The manufacture and disposal of PVC creates toxic chemicals as a by-product. We will therefore seek to identify viable alternatives and encourage their use. When PVC is specified by clients, we will suggest such alternatives for consideration. When considering alternatives to PVC, we must consider the economic, environmental and social impacts across their whole life cycle, including fitness for purpose, exposure, workability, maintenance, dismantling, and ease of recycling. Where PVC is required for performance-based reasons, and this can be justified, we will take a number of mitigating measures to ensure that it is responsibly manufactured and the waste responsibly disposed of. We seek to work with suppliers who minimise PVCs impacts by having the following processes in place: All our PVC manufacturers must have phased out, or be working towards and reporting on the phasing out of heavy metals such as lead, mercury or cadmium. They should provide a recycled content of at least 30% (including post-consumer and post-industrial waste) unless this is specifically precluded by third-party performance requirements, such as BBA, BS:EN etc. All chemicals used in the production of virgin PVC must be registered or preregistered for use under the regulations with the European Chemical Agency (REACH) otherwise they are banned from use

POLYVINYL CHLORIDE (PVC) POLICY

Our manufacturers must either operate a take-back scheme that offers a closed loop recycling system or identify a mechanical recycling system for post-consumer waste and ensure that adequate controls are in place to prevent persistent organic compounds from being released into the environment.

3.9

Willmott Dixon will evaluate the environmental impact of the available suppliers and sources when purchasing energy supply contracts. We have committed to being carbon neutral by 2012 for the direct emissions that we generate through our transport, offices and construction processes. We have a declared intent to be more energy efficient and, where possible, look to source energy from renewable and low carbon sources.

ENERGY SUPPLY

Willmott Dixon has a Group Sustainable Transport Policy to reduce CO2 emissions, distances travelled and to procure a more efficient fleet. As part of this we now measure and monitor business-related miles online. We use a GPS-based telemetry system to keep track of our commercial vehicles.

3.10 TRANSPORTATION

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We have set maximum emissions for all company cars procured:


From July 2011 less than 140 g/km of CO2 From July 2012 less than 130 g/km of CO2

3.11 PACKAGING

Willmott Dixon is committed to reducing our packaging waste and to send zero waste to landfill by 2012. We will engage with manufacturers, suppliers and contractors to jointly develop strategy in reducing packaging on our projects. Manufacturers and suppliers must apply the waste hierarchy to packaging. This dictates that it should first be reduced in quantity, then considered for reuse and collection and, if this is not possible, then recycled. The actions listed below are considered best practice: Use of larger pack sizes to reduce the amount of packaging per unit; Using cardboard wrapping instead of bubble wrap; Collect and reuse packaging as many times as possible; Improving transport efficiency by ensuring that packaging shapes and sizes maximise the use of pallets; Supplying products that are available in concentrated forms to reduce weight and providing products that can be delivered in returnable boxes or pallets; Promote and increase pallet repatriation by ensuring clear ownership and awareness of responsibilities; Polystyrene should be avoided as it cannot be easily recycled or reused.

Willmott Dixon may require manufacturers, suppliers or subcontractors to take back any packaging for subsequent reuse or recycling at their own expense.

To ensure we are using the most efficient plant and generators, we will endeavour to procure all plant and equipment efficiently-sized for the task in hand and no more than 18 months old. This plant is more energy efficient and cost-effective to run and radically reduces particulates and NOx and CO2 emissions from engines. We encourage our supply chain to do the same. Our policy on plant is in line with European emission standards for new non-road diesel engines agreed in 2010. These apply to any machine either built in or imported for sale into the UK and have been developed to radically reduce particulates, CO2 and NOX emissions from engines.

3.12 PLANT

3.13 OFFICES

When temporary accommodation units (TAUs) are provided by Willmott Dixon on projects which are expected to last eight weeks or more, these will be fitted with energy and water-saving measures and have an EPC rating of B or higher.

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When seeking to identify a new fixed office premises, we will give consideration to the likely energy performance of the building and its proximity to public transport networks. All white goods purchased for use in fixed or temporary offices must be a minimum of Arated under the EU Energy Efficiency Labelling Scheme. With regard to new or renewal leases for our fixed offices we will seek to incorporate the recommendations set out in the Better Buildings Partnership: Green Lease Toolkit by agreeing a memorandum of understanding (MoU) with our landlords covering energy and environmental issues, with particular focus on the following: Separate metering facilities for individual utilities, individual occupiers (in a multilet building) and special uses (e.g. data centres). Consideration must be given to smart-metering technology that can automatically send data on a half-hourly basis for all fuel sources and water use. Joint targets should be set for energy/CO2 reductions which could be linked to specific EPC/DEC ratings. The appointment of a suitably qualified person to undertake an audit or assessment of the environmental performance of the building and premises and to advise upon a strategy for implementing the aims and objectives.

4. WORKS
Willmott Dixon has processes in place that ensure collaboration and integration for best practice and to deliver innovative solutions. Willmott Dixon will evaluate and procure work through its supply chain members to the extent that they: Demonstrate continuous development and improvement. Have a full and relevant environmental policy. Have or be meaningfully working towards a full accredited environmental management system e.g. EMAS, ISO 14001 or BS8555 with targets, objectives and an improvement programme. Are receptive to the promotion and management of apprenticeship opportunities and/or training and development of site operatives.

4.1

TRADE CONTRACTORS

5. SERVICES 5.1
We rely on our professional service providers to help deliver sustainable procurement and development. All providers and their employees must comply with the principles and objectives set out within our procurement policy. We require that all personnel and key stakeholders involved have the necessary skills, knowledge and experience. We will verify the credentials of any organisation or individual before we appoint them to ensure that they are suitably qualified and competent.
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PROFESSIONAL SERVICES

5.2

Willmott Dixon will ensure that, when purchasing or leasing IT equipment, the following objectives are met: Photocopiers and networked printers must all be capable of double-sided printing. Products must be rated low energy consumption as recognised by Energy Star or a similar standard. Products must include built-in power management features with automatic switch off (or low-power mode) when not in use, apart from equipment that needs to run all the time, such as servers. The full life-cycle performance of a product is considered during procurement. Equipment manufacturers must have a managed asset recovery service to take back and recycle equipment.

INFORMATION SYSTEMS

5.3

Willmott Dixon carries out regular audits of waste contractors to ensure that they have advanced waste management capabilities that guarantee maximum segregation and recovery to support our zero waste to landfill target. We work with waste service providers who report in accordance with PAS 402: Waste Resource Management Specification for Performance Reporting, or are working towards this standard. This helps us provide certainty in our waste management performance calculations, including diversion from landfill and material recovery rates. We require that trade contractors employing their own waste contractors to remove waste material from our projects operate to the same standard.

WASTE

5.4

Willmott Dixon has an established process for the procurement of catering services delivered across our sites, offices, events and conferences. Our supply chain caterers are required to select food from pre-set menus using Fairtrade produce and food currently in season. These menus have been designed to promote good nutrition. All tea and coffee products to be either Fairtrade or Rainforest Alliance certified.

CATERING

5.5

We will ensure that the employment of agency staff, cleaners, site labour or site security personnel, meets employment regulations including the National Minimum Wage and the Agency Worker Regulations 2011. For the procurement of site security services, we will seek to use companies approved by the Security Industry Authority (SIA) which is the organisation responsible for regulating the private security industry. All security guard personnel on our projects must have a current SIA licence.

AGENCY LABOUR & SITE SECURITY

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APPENDIX A. SUSTAINABLE PROCUREMENT OF MATERIALS AND PRODUCTS, IMPLEMENTATION MATRIX

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APPENDIX B.
Ref

SUMMARY TABLE
Description Mandatory Preference Where technically feasibly

3.1 3.1 3.2 3.3 3.4 3.5 3.5 3.6 3.6 3.7 3.7 3.7 3.8 3.8 3.8 3.8 3.9 3.10 3.11 3.12 3.13 3.13 3.13 3.13 3.13 3.13 3.13 4.1 4.1 4.1 5.1 5.2 5.2 5.2 5.2 5.3 5.4 5.4 5.5 5.5 5.5

Responsible sourcing of materials to ISO 14001 Responsible sourcing of materials to BES 6001, BS 8902 Embodied impacts of materials (CEN/TC 350, EPDs to EN 15804) Recycled content Global warming potential of less than five Use low or zero VOC paints and sealants No paints or other finishes to contain lead Paper must contain recycled and/or virgin fibre sourced under a certified chain of custody Paper must be: elemental chlorine-free (ECF), processed chlorine-free (PCF) and total chlorine-free (TCF) All fixed timber and hoarding to be PEFC or FSC Timber used for temporary works to be PEFC or FSC All timber pallets to be PEFC or FSC PVC manufacturers to have phased out, or be working towards and reporting on the phasing out of heavy metals Manufacturers to ensure PVC has a recycled content of at least 30% All chemicals used in manufacture of PVC to be registered under REACH Manufacture of PVC to operate a take-back scheme or identify a mechanical recycling system for waste Willmott Dixon to evaluate the environmental impact of the available suppliers and sources when purchasing energy supply contracts. Maximum emissions for all company cars procured: from July 2011 to be less than 140 g/km and July 2012 less than 130 g/km of CO2 All manufacturers, suppliers and subcontractors must apply the waste hierarchy to packaging No site plant or equipment including generators to be no more than 18 months old Temporary accommodation units (TAUs) to have an EPC rating of B or higher The procurement of fixed offices, to give consideration to the likely energy performance of the building and its proximity to public transport networks All white goods to be a minimum of A-rated Willmott Dixon must seek to incorporate a Green Lease for our leased offices Separate metering facilities for individual utilities for our leased offices Consideration to smart-metering for our leased offices Undertake an assessment of the environmental performance for our leased offices Trade contractors to have a full and relevant environmental policy Trade contractors to have or be working towards a full environmental management system e.g. EMAS, ISO 14001 or BS8555. Trade contractors to be receptive to the promotion and management of apprenticeship opportunities and/or training and development of site operatives. All providers of professional services and their employees to comply with the principles and objectives set out within our procurement policy. Photocopiers and networked printers to be capable of double-sided printing Products to be rated low energy consumption as recognised by Energy Star or similar The full life-cycle performance of a product to be considered during procurement IT equipment manufacturers to have a managed asset recovery service to take back and recycle equipment Waste service providers to report in accordance with PAS 402 Supply chain caterers to select food from pre-set menus using Fairtrade produce and food currently in season All tea and coffee to be either Fairtrade or Rainforest Alliance certified The employment of all personnel to meet employment regulations including the National Minimum Wage and the Agency Worker Regulations 2011 For the procurement of site security services, to use companies approved by the Security Industry Authority (SIA) All security guard personnel on our projects to have a current SIA licence

2013

2012 X X X X

X X X X X 2013 2016 X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

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