Social responsibility

Environment
Bringing benefits to the environment
Many of the solutions delivered by Keller are intrinsically beneficial to the environment, including land reclamation schemes, soil erosion control, flood control, decontamination or containment of contamination and preparation of brownfield sites.

At Great Orton in Cumbria, Keller was employed during the year to assist in the design and build of a sealed foot-and-mouth disposal pit for DEFRA. Less high profile, but just as significant in terms of environmental benefits, are the many smaller, brownfield sites where Keller is regularly involved in bringing derelict land back into use. In the
UK, these included a site clean-up at Bristol, including the removal of contaminated soils and treatment of contaminated ground water; the construction of a slurry cut-off wall to enhance protection to a site of special scientific interest in Peterborough; and remedial works at a former gasworks site at Portadown. In Europe, Keller Grundbau used horizontal jet grouting to decontaminate subsoil, as part of a groundwater improvement scheme in Bruck, Austria, and in Slovakia and Poland we have installed miles of barriers in river dykes to prevent flooding. At Niagara Falls in North America, we sealed leaks in sewerage systems which prevented water entering the systems, thus reducing the volume of sewerage requiring treatment.

During the year, Keller continued its support for various environmental research projects. These included research into sustainable construction, through its sponsorship of a Queen’s University, Belfast, Ph.D programme. The Group is represented on the Industrial Advisory Board of the QUESTOR centre (Queen’s University Environmental Science and Technology Research Centre) and, in partnership with the Environmental Agency, the QUESTOR centre and others, Keller is involved in the development of permeable reactive barriers.

Our specialist services business, Makers, is working with local authorities and housing associations across the UK on the structural refurbishment of social housing, much of which was constructed in the 1960s and 1970s. As an alternative to demolition and rebuild, these projects are resource efficient and have fewer environmental impacts. In addition, they invariably bring thermal efficiency benefits, resulting in reduced energy consumption.

Environmental management systems
Notwithstanding the positive impacts of many of the schemes in which we are involved, we do recognise that many of our site activities have environmental effects. Most notably, these involve noise, dust and slurry emissions and the use of specialist products, such as grouts. We have a continuous programme of trying to mitigate these impacts by, for example, selecting new plant with reduced noise emissions, researching the viability of new, more benign materials and seeking better ways of capturing waste from drilling.

Our environmental management systems are not uniform across the Group. Our businesses, which have their own environmental policies, have each adopted a system that reflects local regulations, culture and business needs. Because of the differences in local conditions, we do not believe in imposing a “one size fits all” solution, but we do encourage a regular and open debate on environmental issues at the quarterly meetings of our Executive Committee to identify and, where appropriate, share best practice.

During the year, our UK businesses tested revised environmental management systems. These are now being integrated into more mature health and safety and quality assurance management systems. Both UK businesses have identified measurable targets, against which they will report in the current year. Makers intends to introduce an independent audit of its environmental system by 2003, with the aim of achieving ISO14001 accreditation.

Progress in developing environmental management systems in our UK businesses is ahead of other parts of the Group, mainly because of the business drivers which do not yet apply to the same degree elsewhere. However, as a UK based plc, we are committed to improving our environmental record in whichever part of the world we are operating. To this end, we plan to introduce during 2002 a system of reporting progress against environmental issues throughout the Group. Our emphasis will be on identifying targets which are appropriate to local conditions and are recognised by local government agencies as bringing benefits to the community.

Working with the community
Most projects in which Group companies are involved are located in remote areas away from local populations and therefore, there is usually little impact on, or relationship with, a local community. For most of our businesses, support for local community projects is indirect – by, for example, sponsoring or supporting the efforts of employees who are involved in charitable or community projects. At Hayward Baker, for example, this means a dollar-for-dollar matching of employees’ charitable donations.

A notable exception to this is Makers which, through its social housing refurbishment schemes, has significant interfaces with residents and community groups. Makers prides itself in having an effective dialogue with residents, which includes the distribution of site brochures, in four different languages in some cases, to advise residents on how they will be affected by the works. Typical community projects in which Makers gets involved include planting trees to mark the completion of a project and giving talks to local school children on the dangers of entering a construction site.

Health and safety
As with environmental management systems, there is no single health and safety management system across the Group, as each business is subject to different safety standards and regulations. There is, however, a strong safety culture within all the businesses, which means that safety features high on the senior management agenda, safety training at all levels is taken very seriously and, on the ground, significant resources are dedicated to inspecting job sites for potential hazards and giving on site “tool-box talks” to ensure that safety awareness governs the daily work activities.

In North America, a company’s safety record, relative to other businesses, is measured through the experience modification rating (EMR). A low score indicates a good safety record. The EMR for Hayward Baker and Case is 0.73, against an industry standard rating of 1.00. This reflects the effort and resources which are dedicated to improving safety performance. Both Hayward Baker and Case have full-time, dedicated safety professionals as well as regional safety officers and operate schemes through which employees are incentivised to come up with new ways of improving safety.

The key safety objective for our Franki operations in Australia is to achieve zero lost time injuries (LTIs) – that is, an injury that causes the employee to be away from work for the shift following the shift in which the injury occurred. LTIs numbered ten in 2001, the same level as the previous year, despite a 3% increase in the number of employees. The number of lost days, number of occurrences, incident rate and frequency rate were all down on the previous year, whilst the severity rate, calculated as work days lost per occurrence, was only slightly up.

In our Continental Europe and overseas operations, a procedure for on-site health and safety was introduced in January 2001 as part of a quality management system. In addition, operating units are required to respect and comply with all local regulations. To the extent feasible, training courses are held on a regular basis in order to improve risk awareness on site. Each business unit employs a safety officer, either on a full or part-time basis, according to the business need and local regulations. Performance is monitored by the divisional head office in Germany and compared to international standards. Rates of sick leave remain below the industry average. As a trend, it is apparent that the number of accidents on site declined in 2001 compared with the previous year. In view of the newness of the safety management system, a full year on year comparison of accident rates is not possible this year, but will be reported in future years.

In the UK, Makers recorded a reduction in the total number of accidents reported through the accident reporting procedure to 114 (2000: 127). The number of accidents reported to the Health & Safety Executive (“HSE”) showed little change at 14 (2000: 13). However, there has been a shift in the type of accidents reported, with the number of reportable accidents involving members of the public reducing from three to one and reportable accidents involving employees increasing from ten to 13. This is set against a 15% increase in the average number of employees. As the accident frequency rate (AFR) and accident incident rate (AIR) do not include reportable accidents to members of the public, the shift in reportable accident type has had an adverse effect on these statistics, with an AFR of 1.05 (2000: 0.93) and an AIR of 2,174 (2000:1,927). Keller Ground Engineering recorded an AFR of 12.5 (2000:14) and an AIR of 2,991 (2000:3,363). There were no HSE prosecutions brought against either of the UK businesses in 2001 and there are none pending.

Employees
Throughout the year our businesses continued to use a variety of media and forums for communicating with their employees including company newsletters, consultative councils, results presentations, suggestion schemes and informal channels, such as company-wide social events.

In addition to job-specific and safety training, in which considerable resource is invested by all our businesses, the Group has a three-tier management development programme. It comprises basic modules, which are offered locally in the main centres of operation; a strategic programme offered each year to some 20 managers from across the Group; and the further development of individuals at, or just below, board level through executive programmes at Insead and Harvard business schools.

It is our policy to employ and train disabled people wherever their skills and qualifications allow and when suitable vacancies are available. Disabled employees are encouraged to undertake training and career development to prepare them for promotion. Should existing employees become disabled, every effort is made to find appropriate work and training if appropriate.