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ENVIRONMENTAL STATEMENT 2016

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Page 1: ENVIRONMENTAL STATEMENT - Celsa Steel UKcelsauk.com/Pdf/CELSA Environmental Statement 2016.pdf · 28 Community & employee engagement 30 Community & stakeholder engagement 31 Health,

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2016 Environmental Statement CELSA Manufacturing

ENVIRONMENTAL STATEMENT

2016

Page 2: ENVIRONMENTAL STATEMENT - Celsa Steel UKcelsauk.com/Pdf/CELSA Environmental Statement 2016.pdf · 28 Community & employee engagement 30 Community & stakeholder engagement 31 Health,

CELSA Manufacturing UK Ltd. is one of the biggest recycling companies in the UK and is an environmentally focused steelmaking company.

This is demonstrated in our seventh Environmental Statement, following EMAS registration in 2009, and it covers the year of 2015.

Market conditions for the steel sector remain exceptionally challenging meaning operating a sustainable business is more crucial than ever before. Therefore, all business decision making takes into consideration the environmental, social and economic consequences of our day to day activities.

Most of the environmental objectives and targets set for 2015 have been met, which is a testament to the dedication of all of our employees and that of our service contractors. In addition, significant investment in environmental projects, such as hot charging has resulted in overall performance improvements.

CELSA is certified to a number of standards including ISO 14001, ISO 9001, OHSAS 18001, SustSteel, Eco-Reinforcement Responsible Sourcing Standard and BES 6001. All of these in conjunction with EMAS registration and the publication of this statement demonstrate our dedication to environmental management.

Through the implementation and use of best available techniques, strong leadership and an engaged work force, CELSA continue to strive towards environmental excellence.

WELCOME

FROM THE GENERAL MANAGER

Luis SanzGeneral ManagerAppointed November 2010

2016 Environmental Statement CELSA Manufacturing

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Luis SanzGeneral ManagerAppointed November 2010

2016 Environmental Statement CELSA Manufacturing

CONTENTS

1 Message from the general manager

2 Introduction

3 CELSA Group and CELSA Manufacturing

4 Our products

6 Environmental profile

7 Sustainability and sustainable manufacturing

8 Environmental policy & management systems

10 Case study Heads of the Valleys Road A465, Section – Brynmawr to Gilwern

12 Significant environmental aspects

14 Emissions and legal compliance

15 Performance against process emission limits

16 Environmental objectives and targets

18 Environmental performance indicators

20 Case study Made in the UK. To build the UK.

26 Transport impacts

27 Biodiversity

28 Community & employee engagement

30 Community & stakeholder engagement

31 Health, safety & employee engagement

32 EHS Profiles

33 Environmental Statement verification

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2016 Environmental Statement CELSA Manufacturing

EMASThis document has been prepared by CELSA Manufacturing UK Ltd (CELSA Steel UK) in accordance with the requirements of the Eco Management & Audit Scheme (EMAS) as set out in European Council Regulation 1221/2009.

EMAS is a voluntary scheme designed to recognise and reward those organisations that go beyond minimum legal compliance and continuously improve their environmental performance, therefore demonstrating "green" credentials. It was initially established by European Regulation 1836/93, although this has been replaced by Council Regulation 1221/2009.

It is a requirement of the scheme that participating organisations regularly produce a public Environmental Statement that reports the organisation's environmental performance clearly and accurately. The accuracy and reliability of the information in this voluntary publication must be checked and certified by an independent environmental verifier.

This document is the Environmental Statement of CELSA's environmental attributes and environmental performance for the period 2011 to 2015.

All the information is independently verified for accuracy, and a statement of confirmation is provided by the verifier at the end of the document.

Eco-Reinforcement & BES 6001As part of CELSA's contribution to sustainable construction practices and sustainable development objectives, CELSA's products are accredited to the Eco-Reinforcement Responsible Sourcing Standard and to the Eco-Reinforcement parent standard, BES 6001, the BRE Environmental & Sustainability Standard for the Responsible Sourcing of Construction Products. This Environmental Statement has also been written in accordance with the higher level requirements of both the Standards.

CELSA achieved a Eco-Reinforcement certification rating of "Very Good", whilst also attaining "Good" status in BES 6001 certification for all other steel products manufactured in Cardiff.

This is an indicator of the continual improvement CELSA has accomplished following its commitment to implementing EMAS, and the progress realised through certification to the Eco-Reinforcement standard.

SustSteel In July 2016, CELSA Manufacturing retained the SustSteel mark. Key Performance Indicators were measured, scored and verified. The KPIs encompass HR, Environmental, Health and Safety, Commercial, Finance and Quality aspects contributing to the sustainability of the company. CELSA Manufacturing achieved a KPI score of 82.61 in 2016 compared to a score of 80.08 in last year's audit. Both scores far exceed the 60 pass mark. This demonstrates our continual improvement and commitment to the sustainability of all aspects of our operations.

CELSA GROUPCELSA was founded in Barcelona in 1967 with its first rolling mill. A decade later an electric arc furnace started producing steel at the Barcelona plant. The CELSA GROUP™ grew through reinvestment and successive acquisitions to become a well recognised brand in steel manufacture.

CELSA has a diverse range of steel production and processing operations strategically positioned across Europe to both maximise our competitive spread and to reduce our transportation impacts.

The CELSA group of companies employ about 7000 people across Europe, operating from 8 steel plant locations and numerous downstream fabrication units.

We take our responsibilities seriously. We believe in people and are committed to the health, safety and development of our employees and communities in which we operate in. We believe in sustainable development and are committed toward the ongoing improvement in managing the environment and in supplying sustainable products. We believe in integrity and are committed to managing all aspects of our business with honesty and transparency.

We strive to be a global steel reference through a ground-breaking approach delivering best-in-class service to our clients.

INTRODUCTION

We believe in integrity and are committed to managing all aspects of our business with honesty and transparency.

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1. CELSA Barcelona, Barcelona, Spain

2. CELSA Nervacero, Vizcoya, Spain

3. CELSA Global Steel Wire, Santander, Spain

4. CELSA Atlantic, A Coruña, Spain

5. CELSA France, Bayonne, France

6. CELSA UK, Cardiff, Wales

7. CELSA Armeringsstål, Mo i Rana, Norway

8. CELSA Huta, Ostrowiec, Poland

BRC / Express Reinforcements / ROM Group

STEELMAKING SITES

UK FABRICATORS

CELSA Group MissionWe are the most diversified European private steelmaking group in long products.

Our purpose is:• To satisfy all our customers with

quality products and excellent and direct service.

• To be a competitive, profitable and innovative group leading our target markets and achieving sustained growth, by being an efficient, flexible and dynamic organisation.

We believe in:• Our people, their effort and

professional and personal development and teamwork.

• Continuously improving all our processes and activities and the permanent updating of our technology.

• Managing and operating our business in an ethical, safe and environmentally responsible manner.

By working together in this way, we will achieve a company with a sustainable activity and international presence for benefit of all concerned.

CELSA Group Vision• We live for our customers.• We feel like owners. • We respect people and teamwork.• We are sharp and flexible.• We lead as ground-breakers.• We fight for results • We lead by example.

CELSA Attitudes • Honesty• Humility• Creative perseverance• Groundbreaker• Team Work• Passion

CELSA Manufacturing UK (LTD)CELSA Manufacturing (UK) Ltd (CELSA) was acquired by the CELSA Group in 2003. CELSA is the largest producer of steel reinforcement in the United Kingdom and one of the largest producers of other long steel products.

Our facilities at Cardiff comprise a new state of the art melt shop built in 2006, and two hot rolling mills: one for rolling reinforcing products and wire rod, the other for rolling merchant bar and light sections.

We manufacture and deliver approximately 1 million tonnes of finished product annually, mostly for the UK and Irish markets.

We employ approximately 500 staff, as well as several hundred sub-contractors, in South Wales and see our business as an important supporter and member of the local community.

All of the steel we produce in our melt shop is produced from scrap metal using the electric arc furnace (EAF) process - we are a steel recycling plant.

2016 Environmental Statement CELSA Manufacturing

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2016 Environmental Statement CELSA Manufacturing

SOURCING, MANUFACTURE AND SUPPLY

Scrap Melting Refining Casting

FINISHED PRODUCTS

Reinforcing barsFor the reinforcement of concrete (Grade 500C)

High Yield CoilsFor the reinforcement of concrete (Grade 500C)

Flat barsWith various applications including construction, transport and machinery.

OUR PRODUCTS

Primary raw materialsThe primary raw material used in the production of our steel is ferrous scrap metal which contributes in excess of 98% of the constituent raw materials by mass and volume.

Secondary raw materialsOther consumables include the mineral additions of ferro-alloys, coke and lime, which are added to control the chemistry and remove impurities from the molten steel.

EnergyThe use of energy in the form of electricity, natural gas and carbon additions is significant and is central to the process of recycling steel.

By-productsBy-products formed during the melting process include lime slag which is utilised as a secondary aggregate, dust utilised for zinc extraction and mill scale which is used in the manufacture of ferro- alloys and cement.

WasteWhilst we generate large volumes of waste, both hazardous and non-hazardous we currently recycle or reuse over 95% of the wastes that we generate.

Emissions to airEmissions of CO2 are significant due to the combustion of carbon bearing sources such as natural gas, coke and carbon. Also, the consumption of natural gas in our processes results in the release of SOx, NOx, and CO.

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Rolling Finished products

Channels, Parallel, Tapered Flange & UPNTypically used in composite steel construction.

Wire RodFor the production of reinforcing mesh & other applications including wire drawing.

Plain round barsWith various applications including construction.

Equal & Unequal AnglesTypically used as a structural steel element in construction.

Emissions to waterThe water used in our cooling systems undergoes chemical treatment to prevent corrosion, the formation of legionella and to remove sludge. Stringent limits are placed on the quality of the water released from our systems and regular monitoring enables us to meet these requirements.

Finished productsWe produce a range of steel products predominantly for the construction sector, but also with various other applications.

TransportationOur raw materials and our finished products require transport either by road, rail or sea. We are constantly working on ways to minimise the impact of transport by using rail wherever possible.

2016 Environmental Statement CELSA Manufacturing

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1 CELSA Armeringsstål AS Mo I Rana Environmental Statement 2009 in accordance with EMAS Regulations2 CELSA Armeringsstål AS Mo I Rana Environmental Statement 2009 in accordance with EMAS Regulations 3 Source Eurofer Project number: 10.0148 "Verification Report for CO2 Benchmarking Data – Steel Sector – Summary Report Source Eurofer

Project number: 10.0148 "Verification Report for CO2 Benchmarking Data – Steel Sector – Summary Report4 Source Eurofer Project number: 10.0148 "Verification Report for CO2 Benchmarking Data – Steel Sector – Summary Report

ELECTRIC ARC FURNACE STEELTHE PROCESS

DIRECT AND INDIRECT EMISSIONS

ENVIRONMENTAL PROFILE

SCRAP BAY

COKE

ZINCREUSE IN FERRO- ALLOYS

ELECTRIC ARC

FURNACE

BILLETCASTER

SCRAPCHARGEBASKET

LADLEFURNACE BILLETS ROLLING

MILLS

STEELSCRAP

LIMEOXYGEN

NATURAL GASCARBON

ELECTRICITY

FERRO-ALLOYSARGON

ELECTRICITY

NATURAL GAS

NATURAL GAS

ELECTRICITY

EAF DUST MILLSCALE

AGGREGATE MATERIAL

SLAG HANDLING

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2016 Environmental Statement CELSA Manufacturing

Steel is almost 100% recyclable and can be recycled indefinitely without losing its quality, it can be efficiently and easily recovered for recycling from mixed waste streams.

There are currently two technologies for producing steel: that used in blast furnace plants which utilise iron ore to create new steel, and that used in electric furnaces which recycles steel scrap metal into new products.

One tonne of steel that is made from recycled scrap using an electric furnace, compared with primary steel manufacture saves:

• 1.350 tonnes of Iron ore;• 450kg of coal; and • 20kg of limestone compared to

primary steel manufacture from iron ore.1

Typically, the electric furnace process: • Emissions to air and water are

reduced by approximately 80%.2

CELSA has one of the lowest Carbon Dioxide per tonne of Carbon Steel (CO2 /tCs) rates for EAF steelmaking in Europe.

CELSA - 2015Direct emissions 0.115 tonne CO2 / tonne steel

Direct and Indirect emissions 0.264 tonne CO2 / tonne steel

The arithmetic average of the top 10% most efficient installations, after verification3, is as follows:

0.061 tonne CO2 / tonne steel for direct emissions

0.285 tonne CO2 / tonne steel for direct and indirect emissions4

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2016 Environmental Statement CELSA Manufacturing

CELSA UK MISSIONWe are a recycling, environmentally focused steelmaking company, part of CELSA UK Holdings.

Our mission is:• To be a profitable company • To be sustainable: economically,

socially and environmentally• To be ahead of our competitors.

We are all committed and believe in:• Working in a SAFE, ethical and

environmentally responsible manner

• Empowering PEOPLE by involvement, participation and teamwork

• Satisfying our CUSTOMERS by gaining a full understanding of their needs and providing an excellent service and a wide range of quality products

• Continuously improving our PROCESSES, ACTIVITIES and TECHNOLOGY in order to be COST COMPETITIVE.

Through this we will deliver a sustainable future for ALL our stakeholders.

CELSA UK VISIONTo be the first choice for the customers and other stakeholders; efficient with sustained profitability and leaders in safety and environment in our sector.

CELSA UK MANUFACTURING VALUES• We fight for results!• We live for our customers• We feel like owners• We respect people and teamwork• We are sharp and flexible• We lead as ground-breakers• We lead by example.

CELSA UK MANUFACTURING ATTITUDES• Honesty• Humility• Creative Perserverance• Groundbreaker• Team Work• Passion

SUSTAINABLE MANUFACTURING

To be the first choice for the customers and other stakeholders; efficient with sustained profitability and leaders in safety and environment in our sector.

WHAT IS SUSTAINABILITY?Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Sustainability focuses on the balance of three areas:• Maintenance of economic

growth and employment• Social progress, recognising

the needs of everyone (employees and community)

• Effective protection of the environment, now and in the future, including preserving natural resources for future generations.

WHAT DOES SUSTAINABILITY MEAN TO CELSA UK?For the companies operating under the CELSA GROUP™ brand it means taking into account the environmental, social and economic consequences of the strategic decisions taken in our day to day tasks.

The principles of sustainability have been adopted into the CELSA UK business strategy and are reflected in the CELSA UK Mission, Vision and Values.

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Sustainability & Responsible Sourcing PolicyEnvironmental Policy

CELSA Manufacturing (UK) Ltd

Sustainability and Responsible Sourcing Policy

Scope

CELSA Manufacturing (UK) Limited (CELSA) is a major supplier of reinforcement and structural steel to the construction industry. CELSA recycles steel scrap by use of an Electric Arc Furnace (EAF), continuous casting of billets and hot rolling to produce reinforcing bars and steel sections. Additional recycling is achieved through mineral extraction/reuse of the furnace slag. CELSA recognizes its business’ potential environmental and ethical impacts. Our aim, therefore, is to ensure that the constituent materials used within our products and the supply chains that provide them are sourced responsibly, in accordance with the guidelines set out by the BES 6001 and Eco-Reinforcement Responsible Sourcing Standards. CELSA is committed to preventing negative effects and continuously improving the company’s sustainability aspects, encompassing economic, environmental and social dimensions, to meet the requirements of Suststeel. The requirements of all standards require demonstration of a wide range of commitments. Many of these are covered in existing company policies. These commitments are not repeated here. As a result this policy document must be read in conjunction with CELSA Quality, Environmental and Health and Safety policy statements. CELSA commits to undertake the following: Policy

Economic

• CELSA understands its economic significance locally, nationally and internationally. Ethics

• Adopt and apply standards of ethical behaviour appropriate to our activities. Legal compliance

• Please refer to our Quality Policy (530.01.1), Environmental Policy (CP/A004) & Health & Safety Policy (CP/A003). Management systems

• Maintain our internal management systems, to internationally recognised standards where appropriate, to ensure we operate in a legal, efficient and financially sustainable manner with continual improvement in the management of quality, health and safety, the environment and human resources.

Supply chain management

• Engage with suppliers of our constituent materials to ensure, where practicable, they maintain management systems appropriate to the needs of our activities, including adherence to this policy.

Stakeholder and local community engagement

• Identify and engage with stakeholders affected by our activities, including liaison with local community representatives. Complaints and prosecutions

• Maintain a transparent record of complaints and prosecutions and associated corrective actions, through our environmental management system.

Fundamental rights at work

• Operate within international norms concerning human rights and labour practices. Health and safety management systems

• Please refer to our Health and Safety Policy (CP/A003). Climate change & energy, resource use, site stewardship, water usage, waste management, transport impacts

• Please refer to our Environmental Policy Statement (CP/A004). Employment and skills

• Implement fair operating practices with regards to employment and economic activities, including development of a skilled and competent workforce.

Contribution to the built environment

• Aim to develop innovative & effective products that improve the quality and sustainability of the built environment.

Luis Sanz Villares General Manager

All applicable legal and other requirements to which CELSA subscribes related to sustainability are identified, monitored and complied with. Objectives of sustainability will be set on an annual basis and reviewed to evaluate performance. This policy shall be communicated to all persons working for or on behalf of CELSA (including contractors) as part of the company training programme and made available to the public on request via the company website.

Ref: CP/A006

Last Reviewed: January 2016

ENVIRONMENTAL POLICY& MANAGEMENT SYSTEMS

2016 Environmental Statement CELSA Manufacturing

At CELSA we see sustainability and sustainable practices as an integral part of our business strategy. We consider the environment, people and community in balance with the economics of our business and this is demonstrated in the following manner:

• CELSA is committed to continual improvements in all of it's activities, products and services to minimise or eliminate any adverse impacts to the environment. We have operated an Environmental Management System (EMS) certified to ISO 14001 since July 2005.

• CELSA is registered under the Eco-Management and Audit Scheme (EMAS), which is a voluntary scheme designed to improve companies' environmental performance.

• As a sustainable steel producer, CELSA is committed to responsible sourcing of constituent materials, by manufacturing and supplying products to customers in a responsible manner. Our merchant bar and light section products are certified to the BES 6001 standard, and our reinforcing products are certified to the Eco-Reinforcement Responsible Sourcing Standard both of which have been developed by the Building Research Establishment (BRE).

HOW DOES CELSA MEET THE REQUIREMENTS OF SUSTAINABILITY?

Ref: CP/A004

Last Reviewed

October 2015

CELSA Manufacturing (UK) Ltd Environmental Policy

Scope

CELSA Manufacturing (UK) Limited (CELSA) is a major supplier of reinforcement and structural steel to the construction industry. CELSA recycles steel scrap by use of an Electric Arc Furnace (EAF), continuous casting of billets and hot rolling to produce reinforcing bar and steel sections. Additional recycling is achieved through mineral extraction/reuse of the furnace slag. CELSA recognises its business’ potential environmental impact and the part it has to play in maintaining a clean and healthy environment.

Policy

CELSA is committed to continually improve and evaluate its Environmental Impact so that any adverse impacts (direct or indirect) on the environment are either minimised or eliminated.

CELSA will:-

• Establish and maintain an Environmental Management System complying with ISO 14001:2015 and the Eco-Management and Audit Scheme (EMAS).

• All applicable environmental legal and other requirements to which CELSA subscribes are identified, monitored and complied with.

• The direct and indirect environmental aspects of CELSA’s activities are identified and subject to appropriate controls to prevent pollution, with regular monitoring of emissions undertaken.

• The emissions of greenhouse gases from all our production processes are targeted for reduction/minimisation.

• The consumption of energy and water and the generation of waste is minimised as far as practicable.

• Wherever possible the resources used in the production process are from recycled/renewable sources, and utilised as efficiently as practical and in the case of natural resources are from sources that demonstrate their environmental stewardship.

• Waste in all its forms is recycled or reclaimed wherever practicable.

• The adverse impacts associated with the transportation of raw material to CELSA and deliveries of products to customers are targeted for minimisation.

• Aim to conserve and/or where practicable enhance the biodiversity on site and work in partnership with nature conservation organisations to improve biodiversity in the surrounding area.

• Objectives and targets will be set on an annual basis and reviewed to evaluate performance against targets.

• Through the committed support and participation of all those involved in its operations, CELSA will strive to achieve its environmental objectives in order to minimise the environmental impacts of the organisation.

• This policy shall be communicated to all persons working for or on behalf of CELSA (including contractors) as part of the company training programme and made available to the public on request via the company website.

Luis Sanz Villares General Manager

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Health & Safety Policy Quality Policy

2016 Environmental Statement CELSA Manufacturing

Luis Sanz, CELSA's General Manager

• CELSA are certified to to the EUROFER Suststeel mark. This recognises our commitment to sustainability issues within the reinforced steel product sector.

• CELSA recognises that it's people are paramount to the success of the company and are committed to ensuring the highest standards of health, safety and welfare for our employees.

We have operated a Safety Management System certified to British Standard (BS) OHSAS 18001 since March 2009.

• CELSA is committed to providing it's customers with a diverse range of high quality steel products. Each product and process is subject to stringent quality control to ensure that products conform to British and European Standards through CARES approval and CE marking. CELSA's Quality Management System is certified to ISO 9001.

Whereas achieving this accreditation was a long and sometimes arduous process, the ability to now differentiate ourselves as not just market leaders, but sustainable market leaders has put CELSA in a prized and invaluable position when it comes to winning major contracts in which sustainability and responsible sourcing are key drivers.

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2016 Environmental Statement CELSA Manufacturing

HEADS OF THE VALLEYS ROAD A465, SECTION – BRYNMAWR TO GILWERN

CASE STUDY

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All of the steel that BRC has supplied will have been produced by CELSA in their facilities in Cardiff, meaning

that the steel will be 100% UK sourced and will have travelled just over 60 miles from CELSA's Melt

Shop to construction site.

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2016 Environmental Statement CELSA Manufacturing

In 1995, the Welsh Government set out plans to update one of the busiest routes in South Wales in the hope of encouraging social and economic regeneration of the Heads of the Valleys area.

This project was identified as critical to the area, in order to improve access to key services, jobs and markets supporting inward investment to areas such as the Ebbw Vale Enterprise Zone.

In December 2014, the project entered its construction phase with Costain being appointed as the main contractor and another CELSA Group company, BRC, winning the contract to supply over 3000 tonnes of rebar and mesh to Section 2 of the project which is due to be completed in 2018.

Throughout the project there has been a significant commitment to reduce the overall CO2 production along the supply chain. The promotion and use of short, strong and local supply chains, as well as the specification of responsibly sourced steel have been critical to the overall reduction in emissions. All of the steel that BRC has supplied will have been produced by CELSA in their facilities in Cardiff, meaning that the steel will be 100% UK sourced and will have travelled just over 60 miles from CELSA's Melt Shop to construction site.

In conjunction with this, CELSA have been working with Costain, to help identify the ‘True Cost of Reinforcement'. This project specifically looks at lowering the amount of waste activities along the supply chain from fabricator to supplier. The study has looked at a variety of areas such as the impact of indirect work, internal logistics, planning, re-work, un-used time and interruptions, all of which if not properly managed can increase lead time, cost and CO2 production on a project.

Using the methodology of onsite observations, time and motion studies and liaising with personnel, it was identified that one area where improvements could be made was to Costain's carbon consumption. By increasing the average load of rebar and mesh deliveries to site, from 19 tonnes to 25 tonnes, this would remove an extra 21 deliveries off the road, saving 28,203 kg of CO2.

This project is just one example of how CELSA Steel UK are working in line with our industry partners to reduce the environmental impacts of major construction projects and promoting the use of sustainable local suppliers throughout the entire supply chain.

Section 4 - Tredegar to Dowlais was the first to be started and completed opening to traffic in 2004.

The 8km long Section 2 is ironically the 4th section of the road upgrade to be progressed and will join the picturesque valley towns of Brynmawr and Gilwern. A virtual drive through of the new road can be seen if you scan the below QR code with your smartphone.

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TARGETING PERFECT SERVICEBRC

Note: ‘Using 2015 DEFRA Carbon Factor given for all HGV Articulated Lorries used.’

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2016 Environmental Statement CELSA Manufacturing

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SIGNIFICANT ENVIRONMENTAL ASPECTS

CELSA recognises that, like any manufacturing business, it's activities can have both direct and indirect impacts upon the environment and in some cases these impacts have the potential to be significant if not properly managed.

CELSA has carefully evaluated and identified through its ISO14001 Environmental Management System the aspects of its business activities that could have environmental impact(s). CELSA aspects are evaluated to determine their significance and reviewed on an ongoing basis. These are summarised as follows:

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USE OF RAW MATERIALSWe produce over 1,000,000 tonnes of steel every year and this utilises large volumes of raw materials in the process, including ferrous scrap, and mineral additions such as ferro-alloys and lime, as well as consumables such as refractories and electrodes. CELSA carefully manage their raw materials to ensure that they are responsibly sourced taking account of their environmental impact and used efficiently to avoid waste.

USE OF ENERGYAs part of the metal recycling process, a significant amount of energy is used in the form of electricity, natural gas and carbon additions. We are careful to ensure that our processes are efficient so as to minimise the use of energy and to avoid waste.

IMPACT OF NOISEOur processes are that of heavy industry and can generate some noise. We continuously work to reduce the impact of noise on the local community.

USE OF WATERDuring the production process of recycling steel water is used for process and product cooling. Some cooling water is lost by evaporation in cooling towers. This is an unavoidable loss but we work hard to minimise the use of water to ensure that we exceed the standards laid down for our processes, by harvesting as much rainwater as possible.

EMISSIONS TO AIRDuring the process of recycling steel scrap into new steel, large quantities of dust laden fume generated. These fumes are captured and filtered to remove as much dust as possible but some particles will escape to air. Natural gas is also used in our processes and products of combustion (SOX, NOx, and CO) are released to air.

EMISSIONS TO WATERProcess water cooling systems normally involves closed circuit cooling systems, which minimise releases to water. However these systems require the use of chemical treatment to prevent corrosion, stop the formation of legionella and allow the removal of sludge. Periodically we have to drain the systems down to the sewer system or to controlled waters which we try to keep to a minimum.

PRODUCTION OF CO2The on site production of CO2 is significant and comes from the combustion of carbon bearing sources, such as natural gas, coke and carbon. We also have to consider the CO2 that is created from the generation of the electricity that we use in our processes.

USE OF OILS AND GREASESAs with most mechanical processes, we have to use lubricants and hydraulic oils. As these are mostly hydrocarbon based we try to minimise their use to avoid the depletion of natural resources, and to avoid the disposal impact of hazardous waste.

GENERATION OF WASTEInvariably waste, both hazardous and non-hazardous, is generated from the processing of scrap metal. Over 95% of the wastes produced are recycled, recovered or re-used.

TRANSPORTATIONAll our raw materials and finished products require transport either by road or by rail. We continuously evaluate ways to minimise the impact of transport and use rail wherever possible.

SIGNIFICANT ENVIRONMENTAL ASPECTS

2016 Environmental Statement CELSA Manufacturing

New Melt Shop, Tremorfa Works

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Due to the nature of the manufacturing process there is a requirement for each operation to be permitted under the UK Environmental Permitting regime which is regulated by Natural Resources Wales. CELSA monitors it's compliance against the emission limit values and discharge consents in accordance with each of the permit requirements.

CELSA holds the following permits/authorisations:

MELT SHOP AND MINERAL SITE: Environmental Permit (EPR/TP3639BH)Trade Effluent Discharge Consent (TE147G) Licence to Abstract Water (21/57/25/78)

ROD AND BAR MILL: Environmental Permit (EPR/BV0759IC) Licence to Abstract Water (21/57/25/0048)

SECTIONS MILL: Environmental Permit (BV0767IT);Trade Effluent Discharge Consent (TE147F)

Whilst CELSA has not had any significant environmental incidents, there have been notifiable incidents which, in accordance with the Environmental Permits, require notification to the Natural Resources Wales In all cases, CELSA has been proactive in identifying the cause of such incidents and for investigating and implementing corrective measures.

CELSA are required under the EU Emissions Trading Scheme (EU ETS) to publish annual greenhouse gas emissions, following verification from a accredited body.

The EU ETS works on the ‘cap and trade' principle. The overall volume of greenhouse gases that can be emitted each year by the industrial facility covered by the system is subject to a cap set at EU level.

CELSA hold three Greenhouse Gas Permits: Melt Shop [UK-W-IN-11838] Sections Mill [UK-W-IN-12611] Rod and Bar Mill [UK-W-IN-12612].

For those aspects of CELSA's operations that represent the greatest potential for negative environmental interaction (emissions to air, land and water and energy consumption), the table adjacent shows typical levels of these emissions and discharges relative to our permitted limits.

14

2016 Environmental Statement CELSA Manufacturing

EMISSIONS AND LEGAL COMPLIANCE

View from Rod and Bar Mill, Castle Works

Further and more detailed technical information on the reports submitted to Natural Resources Wales are available at www.naturalresources.wales.

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2016 Environmental Statement CELSA Manufacturing

15

Note – the process averages indicated are derived from either the annual report or the quarterly report averages made to the Natural Resources Wales as required in the permits to operate.

A range of variables can affect the emissions including scrap grades and products being rolled and this combined with results reported being a spot sample, considerable differences year on year may occur.

Emissions to air

NOxSOx

Process Limit

400100

mg/m3

mg/m3

Units

266.353.65

2011

250.302.10

2012

167.1114.77

241.101.47

236.085.49

2013 2014 2015

Sections Mill

Emissions to water

Suspended solidsOils and greasespHClFeCrNiZn

805

6 to 90.1100.20.22

mg/lmg/l

no unitsmg/lmg/lmg/lmg/lmg/l

15.634.507.740.061.490.000.100.04

4.834.007.840.050.260.000.020.02

2.253.797.980.040.240.000.010.02

2.420.958.150.081.280.090.020.04

33.802.398.120.040.230.010.070.03

Emissions to air

NOx

Process Limit

400mg/m3

Units

255.20

2010

205.8

2011

224.68 229.31 266.0825

2012 2013 2014

Rod and Bar Mill

Emissions to air

ParticulatesCONOxSOxDioxinsVOC

Emissions to sewer

Suspended solidsOils and greasesIron compoundspH

1010025250.320

Process Limit

3055

6 to 10

mg/m3

mg/m3

mg/m3

mg/m3

ng/m3

mg/m3

Units

mg/lmg/lmg/l

no units

3.9056.0017.008.600.192.30

2011

11.784.000.008.72

2.3049.0016.009.500.262.10

2012

1.0015.002.4018.000.171.90

2.1078.0921.952.230.044.30

4.7316.742.551.230.020.66

2013 2014 2015

4.004.000.238.80

1.000.600.237.80

5.000.600.628.40

Steelmaking Typical emissions

10.004.000.238.70

PERFORMANCE AGAINST PROCESS EMISSION LIMITS

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As part of CELSA's Environmental Management System, CELSA has identified all of its potentially significant environmental aspects, whilst considering its legal requirements. Objectives and Targets are set on an annual basis to deliver continual improvement in the management of these environmental aspects.

CELSA's governance of environmental issues goes beyond compliance with regulatory requirements and the company commitment to EMAS is evidence of this commitment to operate our business in an environmentally responsible manner. This is demonstrated through the setting of targets that deliver continued environmental performance.

ENVIRONMENTAL OBJECTIVES AND TARGETS

2016 Environmental Statement CELSA Manufacturing

2015 PERFORMANCEREVIEW

MELT SHOP• Reduce total energy (kWh/tonne) by

3%. The Melt Shop achieved a 2.1% reduction closely missing the target. Improvements have been made in regards to scrap screening and improving the efficiency of the process.

• Reduce general waste (tonnes) by 3%. A campaign was launched in 2015 including distribution of learning lessons to increase correct segregation of waste streams. CELSA also introduced mixed recycling receptacles applying the waste hierarchy. This enabled the Melt Shop to reduce general waste by 30%.

• Reduce water consumption (m3) by 4%. Unfortunately, the Melt Shop did not meet this target. However, as annual production tonnage increased in 2015 this is to be expected. If this is taken into consideration, the Melt Shop achieved a 10.3% reduction in water consumption versus tonnage in 2015 compared to 2014.

• CELSA are determined to comply with all relevant legislation including permit requirements. Due to process issues, a target was set to reduce the CO breaches per month. The Melt Shop exceeded this target reducing CO breaches by 33% in 2015.

• Monitor dust data and reduce complaints compared with 2014. The Melt Shop achieved a 50% reduction compared to 2014. CELSA continues to engage with the local residents and stakeholders in the surrounding area.

ROD & BAR MILL• Reduce oil consumption (litres) by 3%.

The RBM did not achieve the target.

• Reduce general waste disposal (tonnes) by 3%. The RBM far exceeded this target, achieving a 31% reduction.

• Reduce hazardous waste disposal (tonnes) by 3%. The RBM exceeded this target.

• Reduce water consumption (m3) by 3%. Unfortunately, the RBM did not meet this target.

• Consume no greater than 364 kWh/tonne of gas per month. Through the continued success of hot charging of billets reaching the reheat furnace, the RBM achieved the target overall for the year, consuming 354 kWh/tonne on average.

• Consume no more than 102 kWh/tonne of electricity per month. The RBM met this target in 2015.

SECTIONS MILL • Reduce hazardous waste (tonnes)

by 3%. The Sections Mill did not meet this target.

• Reduce electricity consumption (kWh/tonne) by 3%.The Sections Mill achieved a 1.4% reduction but were unable to meet the target.

• Reduce gas consumption (kWh/tonne) by 3.2%. A 0.86% reduction was achieved, however, the Sections Mill did not achieve the target.

• Closed system oil loss to be no more than 8000 litres per month. The Sections Mill met the target as a result of rapid reporting and responses to oil leaks by the engineers.

LOGISTICS• Increase delivery of scrap by rail.

Logistics achieved this target by increasing the rail delivered scrap by 38,491 tonnes in 2015, equating to a 18% increase.

16

Note - where a % reduction is stated this will be measured against the 2014 years performance, unless specified.

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Sections Mill Warehouse

2016 OBJECTIVES AND TARGETS

MELT SHOP• Reduce total energy (kWh/tonne)

by 4% based on the last 5 years.

• Reduce general waste (tonnes) by 5% based on the last 5 years.

• Reduce water consumption (m3) by 3% based on the last 5 years.

• Reduce total water consumption (m3/production tonnage) by 3% based on the last 5 years.

• Reduce number of emissions to air breaches per month.

• Train 100% of personnel utilising the new EHS Learning Booklet.

ROD & BAR MILL• Consume no greater than

345 kWh/tonne of gas per month.

• Consume no greater than 103 kWh/tonne of electricity per month.

• Reduce general waste (tonnes per month) by 5% based on average of 5 years.

• Improve hazardous waste management – improve inventory, management of area, increase bunding and signage in hazardous waste storage area.

• Reduce oil consumption (litres/tonne) by 5% based on 2015.

• Train 100% of personnel utilising the new EHS Learning Booklet.

SECTIONS MILL• Reduce waste production

(tonnes per month) by 3%.

• Reduce electricity consumption (kWh/tonne) by 2% based on the average of 5 years.

• Reduce gas consumption (kWh/tonnes) by 2%.

• Reduce oil consumption (l/tonne per month) by 3%.

• Train 100% of personnel utilising the new EHS Learning Booklet.

LOGISTICS• Increase Delivery of Scrap by Rail

The 2017 Objectives and Targets will be set at the next annual management review meeting which is scheduled for November 2016.

2016 Environmental Statement CELSA Manufacturing

17

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RAW MATERIALS EFFICIENCYCELSA's manufacturing operation is effectively a metal recycling process. The principal feedstock is steel scrap which is consumed in the process to make new steel, but there is a need to provide certain additives to achieve the right quality of new steel. The process is about 95% efficient with the only wastes being furnace flue dust, slag and millscale, each of which are materials that have other beneficial uses.

The raw materials data for the plant is summarised in the following graphs.

CO2 EMISSIONSCO2 is produced as a direct result of energy usage, together with the carbon sources used in the steelmaking process. The primary sources of CO2 are the use of electricity, natural gas and the carbon bearing materials used for steelmaking.

Emissions of CO2 are determined by a combination of the EU Emissions Trading Scheme (EU-ETS) verified reporting data for the Melt Shop carbon mass balance. The indirect emission of CO2 from the use of electricity is taken account of and included in the data shown.

2016 Environmental Statement CELSA Manufacturing

ENVIRONMENTAL PERFORMANCE INDICATORS

1. Materials efficiency Scrap (INEF) Raw materials Production

1,400

1,200

1,000

800

600

400

200

0

Tonnes ('000s)

2011 2012 2013 2014 2015

1,150

1,100

1,050

1,000

950

900

850

Tonnes ('000s)

2011 2012 2013 2014 2015

2. Melt Shop production

440,000

420,000

400,000

380,000

360,000

340,000

320,000

Tonnes CO2 Tonnes steel produced

2,200,000

2,100,000

2,000,000

1,900,000

1,800,000

1,700,000

1,600,000

1,500,000

1,400,000

1,300,000

1. Total CO2 (all processes) Tonnes CO2 Production

2011 2012 2013 2014 2015

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ENERGY EFFICIENCYThe use of energy is one of the greatest environmental impacts. Energy efficiency is therefore fundamental to the business strategy and consumption of electricity and natural gas is continuously monitored and measured. Approximately 15% of electricity supplied to the plant comes from renewable sources.

2016 Environmental Statement CELSA Manufacturing

Note – Melt Shop production is not displayed as energy per tonne as it is an intermediate product. Therefore the MWh/tonne for the Melt Shop is taken into account for the Rod & Bar Mill and Sections Mill products.

2011 2012 2013 2014 2015

3. Melt Shop energy consumption Electricity Natural gas

600

500

400

300

200

100

0

Mw/h ('000s)

2011 2012 2013 2014 2015

4. Rod & Bar Mill energy consumption Electricity Natural gas

350

300

250

200

150

100

50

0

Mw/h ('000s)

2011 2012 2013 2014 2015

5. Section Mill energy consumption Electricity Natural gas

140

120

100

80

60

40

20

0

Mw/h ('000s)

1200

1000

800

600

400

200

0

KWh/tonne

2. Sections Mill products energy usage Sections Mill Melt Shop

2011 2012 2013 2014 2015

1200

1000

800

600

400

200

0

KWh/tonne

1. Rod & Bar Mill products energy usage Rod & Bar Mill Melt Shop

2011 2012 2013 2014 2015

450

400

350

300

250

200

150

100

50

0

Kg CO2 / tonne

3. Emissions: Kg CO2 / tonne of steelRod & Bar Mill Products Rod & Bar Mill Melt Shop

2011 2012 2013 2014 2015

450

400

350

300

250

200

150

100

50

0

Kg CO2 / tonne

2. Emissions: Kg CO2 / tonne of steelSections Mill Products Sections Mill Melt Shop

2011 2012 2013 2014 2015

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Historically high swathes of non-European rebar imports, some of which had quality defects, left site personnel scrambling to identify the source of the material they had received on site. Until now the method for identification was not immediately clear, requiring the user to decode a pattern of dots and dashes. To help resolve this issue for construction sites, and to help the industry as a whole, CELSA UK has implemented an idea to help provide everyone in the supply chain with a quick reference to where their rebar has been sourced from.

All diameters of steel reinforcement bar and coil now have ‘UK’ rolled into the surface of the product in order to aid the identification process, and give on-site personnel extra assurance that they are using sustainable, local and responsibly sourced material.

CELSA UK can give their customers, and their customers' customers, full supply chain traceability. From recycled scrap metal processor to construction site all material is completely traceable.

This, combined with the fact that CELSA UK products contain a 98% recycled content and are all produced from 100% UK sourced recycled scrap metal, guarantees the most responsibly sourced and produced reinforcing steel for the UK construction industry.

In 2015, the on-site identification of reinforcing steel was one of the most hotly debated topics within the UK construction industry.

MADE IN THE UK. TO BUILD THE UK.

CASE STUDY

2016 Environmental Statement CELSA Manufacturing

We have seen an increase in the number of customers requesting our sustainable business credentials. Through our external certifications and visible UK marked steel, we are clearly demonstrating our

commitment to source UK scrap which is then recycled in our process. Within the current challenging market, it is vital CELSA promote UK sourced and produced steel

for UK construction projects. Stuart Thomas, Quality Manager at CELSA Manufacturing.

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2016 Environmental Statement CELSA Manufacturing

ATMOSPHERIC EMISSIONSCELSA recognises that it's processes have the potential for significant releases of atmospheric emissions, and it is an aspect of the business that is monitored and controlled very carefully. Potentially significant emissions are regulated through each of the Environmental Permits and measured and monitored to ensure that they do not exceed the maximum permitted emission limit values specified in the Environmental Permits which are determined in accordance with prevailing legislation.

The Environmental Permits were granted and are rigorously enforced by the Natural Resources Wales.

The total annual air emissions for NO2, SOx, Carbon Monoxide CO, Total Particulates (PM10) and CO2 from 2011 are summarised in the graphs:

ENVIRONMENTAL PERFORMANCE INDICATORS

2. Sections Mill air emissions SOx CO Particulates

30,000

25,000

20,000

15,000

10,000

5,000

0

Kg per year

2011 2012 2013 2014 2015

1. Melt Shop air emissions SOx CO Particulates NOx

900

800

700

600

500

400

300

200

100

0

Kg per year ('000s)

2011 2012 2013 2014 2015

PM10(g) per tonne

45

40

35

30

25

20

15

10

5

0

4. Emissions of PM10 per tonne of steel – Melt Shop PM10

2011 2012 2013 2014 2015

80

70

60

50

40

30

20

10

0

Kg per year ('000s)

5. Rod & Bar Mill NOx air emissions NOx

2011 2012 2013 2014 2015

160

140

120

100

80

60

40

20

0

Kg per year ('000s)

6. Sections Mill NOx air emissions NOx

2011 2011 2013 2014 2015

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2016 Environmental Statement CELSA Manufacturing

WATER USAGECELSA recognises water is a precious resource and the manner in which it is consumed and treated can impact directly on the natural environment.

Water is used on the plants primarily for cooling purposes both in the making of steel and the re-rolling of it. All of our

cooling systems are closed loop re-circulatory systems which minimise water usage, with the main losses being evaporation.

We also harvest water extensively by collecting rainwater from the building roofs to supplement the use of treated raw water from the city water supplies.

CELSA takes it's responsibility regarding water management very seriously to ensure that the use and consumption of water is controlled and minimised.

ENVIRONMENTAL PERFORMANCE INDICATORS

0.90

0.80

0.70

0.60

0.50

0.40

0.30

0.20

0.10

0

m3/tonne

2. Annual water consumption total m3/tonne byproduction unit Melt Shop Rod & Bar Mill Sections Mill

2011 2012 2013 2014 2015

1. Annual water consumption total m3 by production unit Melt Shop Rod & Bar Mill Sections Mill Total water usage (m3)

800

700

600

500

400

300

200

100

0

total m3 ('000s)

2011 2012 2013 2014 2015

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2016 Environmental Statement CELSA Manufacturing

Lisvane Reservoir, CELSA's primary source of cooling water

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

* Kilograms discharged per year (average)

3. Melt Shop wastewater quality suspended solids and oils Suspended solids Oils and greases

2011 2012 2013 2014 2015

1,400

1,200

1,000

800

600

400

200

0

* Kilograms discharged per year (average)

4. Rod & Bar Mill wastewater quality –suspended solids Suspended solids

2011 2012 2013 2014 2015

5. Sections Mill wastewater quality –suspended solids and oil Suspended solids Free oil

80

70

60

50

40

30

20

10

0

* Kilograms discharged per year (average)

2011 2012 2013 2014 2015

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2016 Environmental Statement CELSA Manufacturing

WATER QUALITYWater used on the plants for cooling purposes requires treatment in order to prevent legionella, it is necessary to treat the water we use with biocides, as well as corrosion inhibitors and flocculants to aid in the removal of solids from the water. Stringent limits are set in the Environmental Permits and/or Consents to Discharge on the quality of the water that we can release from the systems. In order to meet these requirements we undertake regular monitoring of the effluent streams.

ENVIRONMENTAL PERFORMANCE INDICATORS

Note: Anomaly sample reading in April has resulted in a high annual figure. pH measured in pH units.

6. Melt Shop wastewater quality –iron compounds and pH pH Iron compounds

2011 2012 2013 2014 2015

300 280 260 240 220200180160140120100806040200

* Kilograms discharged per year (average)

8. Sections Mill wastewater quality –suspended solids & oil Suspended solids Oil

2011 2012 2013 2014 2015

80

70

60

50

40

30

20

10

0

* Kilograms discharged per year (average)

7. Rod & Bar Mill wastewater quality Oils and greases Chloride Total metals

120

100

80

60

40

20

0

* Kilograms discharged per year (average)

2011 2012 2013 2014 2015

9. Melt Shop wastewater discharged

105

90

75

60

45

30

15

0

Cubic metres ('000s)

2011 2012 2013 2014 2015

10. Rod & Bar Mill wastewater discharged

40

35

30

25

20

15

10

5

0

Cubic metres ('000s)

2011 2012 2013 2014 2015

11. Sections Mill wastewater discharged

30

25

20

15

10

5

0

Cubic metres ('00s)

2011 2012 2013 2014 2015

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2016 Environmental Statement CELSA Manufacturing

WASTE MANAGEMENTWaste by-products are inevitably generated from the processing of metal scrap to new steel. These by-products are targeted for reduction as part of our resource efficiency.

As well as targeting reduction, CELSA endeavour to recover or reuse any waste generated where practicable. All wastes are appropriately segregated. Currently CELSA recover or reuse over 95% of waste generated.

220,000

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Tonnes ('000s)

2. Melt Shop waste Non-hazardous Hazardous

2011 2012 2013 2014 2015

Tonnes hazardous

240,000220,000200,000180,000160,000140,000120,000100,00080,00060,00040,00020,0000

300,000

250,000

200,000

150,000

100,000

50,000

0

Waste (tonnes) Production (tonnes)

2,150,000

2,100,000

2,050,000

2,000,000

1,950,000

1,900,000

1,850,000

1,800,000

1. Total waste (all processes) Non-hazardous Hazardous Production

2011 2012 2013 2014 2015

25,000

20,000

15,000

10,000

5,000

0

Tonnes non-hazardous Tonnes hazardous

4. Sections Mill waste Non-hazardous Hazardous

400

350

300

250

200

150

100

50

02011 2012 2013 2014 2015

3. Rod & Bar Mill waste Non-hazardous Hazardous

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Tonnes non-hazardous Tonnes hazardous

700

600

500

400

300

200

100

02011 2012 2013 2014 2015

Currently CELSA recover or reuse over 95% of waste generated.

Prevention

Preparing for reuse

Recycling

Other recovery

Disposal

CELSA adhere to the waste hierarchy where practicable:

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2016 Environmental Statement CELSA Manufacturing

Rotterdam

Zeebrugge

Felixstowe

ZeebruggeOostende

Birmingham

Swansea Newport

ManchesterLiverpool

Holyhead

Hull

Cardiff Bristol

Portsmouth

LondonDover

Plymouth

Edinburgh

Aberdeen

Newcastle upon Tyne

Dublin

BelfastCarlisle

Cork

Cherbourg

Fishguard

Rosslare

Glasgow

A55

M62

M5

M6

M4

SangatteBoulogne-sur-Mere

CalaisFolkestone

W

al

es

E n g l a n d

S c o t l a n d

I r e

la

nd

N . I r e l an

d

F r an

ce

Irish Sea

TRANSPORT IMPACTS

The data for all years has been prepared in accordance with the Guidelines to Defra/DECC's GHG Conversion Factors for Company Reporting (2016).

2011 2012 2013 2014 2015

140

120

100

80

60

40

20

0

g CO2 /tonne/km

1. Transport CO2 emissons associated with Reinforcing products UK Reinforcing products All finished product

CELSA is committed to incorporating sustainability considerations into all of its manufacturing and business activities and recognises the need to balance the requirements of environmental, social and economic obligations with business growth aspirations.

Transportation and logistics is a key area where CELSA seeks to continuously improve and adopt more sustainable transportation options. CELSA utilises a range of transport methodologies including road, sea and rail, depending on the geographical location of its customers and transport network availability. Where possible more sustainable methods of transport such as rail and sea are adopted as the preferred method of moving our raw materials and finished products.

As part of the BES6001 and Eco-Reinforcement Standard requirements, CELSA calculates the transport mileage and CO2 emissions by mode of transport for both its raw materials and finished reinforcing product deliveries. This data is presented in the following graph.

CELSA Endeavor - new 08 loco

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BIODIVERSITY

CELSA inherited an already heavily industrialised portfolio of sites with little or no green space and hence very limited opportunities for enhancement of biodiversity. Consequently this is not a key indicator for CELSA.

The approximate areas for each site are:

• Rod & Bar Mill (Castle Works) 184,244 m2

• Melt Shop and Sections Mill (Tremorfa Steel Works) 324,344 m2

Of these areas it is estimated that <1.0% are un-surfaced. As such, biodiversity at these sites is very limited and the sites have not been identified as important habitat sites. However, CELSA does contribute to local projects where biodiversity enhancement is a key component.

WILDLIFE TRUST OF SOUTH AND WEST WALESCELSA continue their partnership with the Wildlife Trust of South and West Wales (WTSWW) as a way of meeting a number of its corporate social responsibility objectives. Our Gold membership supports conservation work, thereby helping to offset CELSA's impact on biodiversity.

Jon Cooper, Membership Development Manager at the Wildlife Trust expressed his thanks:

"Your partnership with the Wildlife Trusts Wales is appreciated on so many levels. By supporting our Wildlife Partnerships scheme you are not only directly helping the Wildlife Trust to preserve fragile native species and inspire new generations Wales-wide, you are also creating an important link between your employees and the astounding Welsh environment which surrounds us all."

2016 Environmental Statement CELSA Manufacturing

27

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2016 Environmental Statement CELSA Manufacturing

STAR COMMUNITIES 1ST CELSA is a member of the Local Partnership Group (LPG) for Splott, Tremorfa, Adamsdown and Roath Communities 1st which is a Welsh Assembly Government flagship programme to improve the living conditions and prospects for people in the most disadvantaged communities across Wales.

CARDIFF SE NEIGHBOURHOOD MANAGEMENT TEAMWe are a member of the Cardiff SE Neighbourhood Management Team which provides a coherent structure for allowing organisations to work together within local areas.

We attend both quarterly strategic and working group meetings for ‘Promoting a Clean and Attractive Environment' in Cardiff. A range of community members attend including representatives from local businesses, the police, NHS, NGOs and the council.

This means that a range of expertise from across different help to tackle the on-going issues that really matter to communities.

WILLOWS HIGH SCHOOL

CAREER DAY On 19th January 2016, six CELSA employees from different departments participated in Willows High School career day.

This was part of the MAT system which introduces additional opportunities to encourage children to maximise their potential.

Each CELSA employee presented to four classes each consisting of 30 children, discussing their background, education and career. The presentations focused on increasing awareness of the world of work and what it takes to achieve.

Marcello Lo Celso, Lead Practitioner for Maths and Numeracy at Willows High School expressed his gratitude: "Thanks to CELSA for incredible presentations on career day to inspire our students".

The Business Development and Marketing Officer of Cardiff Council said the talks "captured the children's attention. They were very different stories with the same message that education is key. It's great to see CELSA getting actively involved with the school."

OUTDOOR SEATING PROJECT In January 2016, Dawnus Construction approached CELSA regarding a project to build an outdoor seating area in Willows High School using recycled material.

Having close links with the school, CELSA were eager to become a partner. We donated 80 wooden pallets which were used to build the outdoor furniture.

The seating area accommodates over 30 students and encourages them to interact and engage with the natural environment.

COMMUNITY ENGAGEMENT

We understand the effect that our operations may have on our local community.

We have a plan to engage in a number of community and stakeholder initiatives and projects as part of EMAS.

CELSA employees presenting to Willows High School pupils on Career Day.

Willows High School students creating benches for the outdoor seating area using CELSA’s donated wooden pallets.

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EMPLOYEE ENGAGEMENT

CELSA CYCLE TO WORK SCHEMEFor a number of years, CELSA have offered the Cycle To Work Scheme in association with CycleSolutions to all employees. Those who sign up can purchase push bikes tax free. This encourages employees to cycle to work as it makes purchasing a bike much more affordable. It also reduces the vehicle emissions produced travelling to and from the workplace. Over 40 employees are currently signed up to the scheme.

CELSA'S ANNUAL CHARITYEach year, CELSA has an annual dedicated charity which is nominated by and voted for by CELSA employees.

TY HAFANThe chosen charity for 2014 and 2015 was Tyy^ Hafan, the only children's hospice in Wales.

Numerous awareness and fundraising activities were launched by CELSA over the two years.

This included:

• 3 raffles held with prizes donated by contractors.

• 70 protective goggles donated for the Ty Hafan Rainbow Run

• Direct donations from the Mills

• Sections Mill team completed the Ty Hafan Taff Trail Cycle Challenge,

• Attended Ty Hafan Hilton Ball

• A huge selection of brand new presents donated to the hospice at Christmas.

• 7 employees visited the hospice for a tour and to present a cheque of the money raised.

In total, CELSA raised £3, 265 for Ty Hafan and the interaction and support from all employees was phenomenal.

VELINDRE CANCER CENTRE At the end of 2015, employees were asked to nominate a charity for 2016. All employees were then able to vote for the six proposed charities.

Velindre Cancer Centre was chosen having received the highest number of votes.

There is a strong personal connection to this charity as a number of employees and family members have received treatment and support at Velindre.

MARATHON SPONSORSHIPThe first fundraising for Velindre was the sponsorship of Matt Allen, Melt Shop Process Manager, for undertaking the Bath Half and Cardiff Half Marathons in March 2016.Total raised was over £800.

SUMMER RAFFLE A company wide raffle was held with 13 prizes donated by our contractors including a night stay and 3 course meal at a hotel.

The winning tickets were chosen at random by Luis Sanz and a total of £810 was donated to the charity.

A visit to Velindre hospital is to be arranged to present a cheque of the total money raised in 2016.

2016 Environmental Statement CELSA Manufacturing

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Velindre Cancer Centre

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2016 Environmental Statement CELSA Manufacturing

COMMUNICATION CELSA's website hosts a corporate responsibility page. We have also included on the website an email address of CELSA's General Manager for local stakeholders to communicate any concerns or issues to the most senior manager in the CELSA business [email protected]

NOISE & COMPLAINTS

LOCAL RESIDENTSCELSA is committed to being a good neighbour. The views and opinions of local residents are extremely valuable to us and we take them very seriously. Any issues raised by local residents relating to Environmental, Health & Safety are investigated fully by our senior EHS team and where appropriate preventative measures are implemented and feedback is provided to the concerned party.

NOISEWe have been working with the Natural Resources Wales to reduce the noise impact on local residents from the steelmaking process and have noise management procedures in place to manage site activities that can give rise to noise.

DUST CELSA continue to work closely with Natural Resources Wales and local residents to try to determine the cause of any complaint and take any remedial action if required.

CONTACT US If you are a member of our local community and have a query, or would like to know more about us, please contact us by sending an email to [email protected], and we will respond as soon as possible.

Following on from the success of last year's calendar, we continued with the CELSA calendar competition.

The theme for the 2016 calendar was ‘Wales through the Seasons' celebrating the beauty of the Welsh countryside and culture during the different times of year.

Over 70 photographs were entered by CELSA employees and 14 winning pictures were chosen!

The 2016 calendar was distributed to all employees at the start of the year

2016 EMPLOYEE CALENDAR COMPETITION

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COMMUNITY ANDSTAKEHOLDER ENGAGEMENT

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HEALTH, SAFETY ANDEMPLOYEE ENGAGEMENT

2016 Environmental Statement CELSA Manufacturing

HEALTH & SAFETYCELSA is aware that its activities that can not only lead to significant environmental impacts but can have Health and Safety implications for employees and visitors. Consequently, there is a strong linkage between health, safety and employee welfare culture at CELSA and the environmental management and sustainability culture of the business.

HEALTH & SAFETY CAMPAIGNCELSA is continuing with its Strategic Objective to focus on Health & Safety with the aim to become the sector leader in safety.

We are committed to achieving a target of zero accidents as no one should suffer any loss or injury as a result of our activities.

70

60

50

40

30

20

10

0

No. of accidents per 1,000,000 hours worked

1. Employee accident rates All injury frequency rates Lost time frequency rates

2011 2012 2013 2014 2015

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2016 Environmental Statement CELSA Manufacturing

EHS PROFILES

Richard Lewis Environmental ManagerAs the Environmental Manager at CELSA, my role involves communicating on all environmental compliance matters to over 500 employees at all levels, to ultimately ensure that continual environmental improvement is achieved. I graduated from Cardiff University in July 2006 with a BSc Honours degree in Environmental Geoscience. The three year course motivated me to pursue a career within the environmental sector, more specifically within compliance and regulation. I have worked at three manufacturing facilities within South Wales with my main responsibilities in relation to any associated permits and consents, providing expert regulatory advice to the business, engaging with local regulators and interested stakeholders and ensuring sufficient investment is factored into business decisions to prolong the long term sustainability of the plant.

Sara Jones Environmental Advisor I am an environmental specialist providing direct support to the Tremorfa and Castle Works sites to ensure high standards of environmental management are upheld and CELSA continue to reduce the environmental impact from our processes. My role involves undertaking monitoring analysis and reporting of direct environmental aspects, participating in operational control audits and monthly meetings. I also maintain our environmental management system, numerous certifications and facilitate internal, 2nd party and external environmental audits. This includes writing and producing this Environmental Statement. I am a BSc Physical Geography graduate with interests in environmental geochemistry and the anthropogenic influence on our environment and associated earth systems.

Richard Bowen Health and Safety Manager I am responsible for managing a team of health and safety advisors and occupational hygienists, supporting our operations in achieving the company goal of zero accidents. Before joining the company in April 2015, I spent 17 years in the oil and gas industry, working across the world in safety management roles for companies that included British Gas, ENI Agip and Perenco British Army. Following this, I graduated from Cardiff Met University with a BSc (Hons) degree in Environmental Health before joining CELSA in the Summer of 2016.

Patricia Carranceja Environment, Heath and Safety Advisor I joined the CELSA Group in 2008 as the Safety Advisor at CELSA Global Steel Wire in Santander, Spain. I moved to Environment, Health and Safety Manager at CELSA Atlantic before being appointed Environment, Health and Safety Advisor here in Cardiff in 2012. I am a 2nd Party Auditor and have undertaken numerous EHS audits at different CELSA sites. My role focuses on legal compliance, maintaining OHSAS 18001 certification and co-ordinating project deployments.

Shaun Oldfield Health and Safety Advisor (Sections Mill)One of my main roles is to advise managers in all areas of health and safety and to provide the necessary support for them to achieve a safe working environment for their teams. It is equally important that I maintain a positive and proactive engagement. My background is ground engineering predominantly as a surface finishing technician within the Royal Air Force (RAF) for 31 years, where I gained a lot of experience in health and safety through various management roles.

Joel Goodchild Health and Safety Advisor (Rod and Bar Mill)I will be assisting accident investigations, ensuring legal compliance and seeking to develop a proactive interdependent culture. I have a Masters in Safety, Health and Environmental Management from the University of South Wales and I am currently working towards becoming a chartered health and safety practitioner. I am fully committed to the ethos of “Challenge to Change”.

Michael Gray Health and Safety Advisor (Melt Shop)My employment in the steel industry has spanned 20 years, predominately in fire safety, where I have extensive knowledge of the requirements and in supporting the manufacturing function. At CELSA, I support and advise on numerous safety aspects, such as safe systems of work, PSOT Compliance, SOP reviews and training competency and compliance requirements. My aspirations are to continue my journey within Fire, Health & Safety and gain more experience and qualifications within this field.

David Millerchip Graduate Occupational HygienistOccupational hygiene involves the assessment and protection of workers exposure to physical, chemical, biological and psychosocial hazards. My specific interests within this role are in education and awareness of these hazards, and promoting well-being in the work environment. I moved to Cardiff to study a BSc in Environmental Health and I hope to continue academic research as part of my professional career.

Lionel Makunde Project Co-ordinatorI’m the Project Coordinator for the new CELSA control of contractors project working in the EHS Team. I served 5 years as a regular soldier in the Royal Logistics Corp in the British Army. Following this, I graduated from Cardiff Met University with a BSc (Hons) degree in Environmental Health before joining CELSA in the Summer of 2016.

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Image above supplied by Wildlife Trust of South and West Wales, photographer Emma Bradshaw.

Some of the photographs contained in this statement have been taken and provided by Tim Bowers, from our IT department. Tim is a keen amateur photographer, and we are grateful for his contributions.

Bureau Veritas Certification with EMAS environmental verifier registration number UK.V.003 accredited or licensed for the scope 24.10 declares to have verified whether the site(s) or the whole organisation as indicated in the environmental statement of the organisation, CELSA Manufacturing (UK) Ltd., meet all requirements of Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organisation in a community eco-management and auditscheme (EMAS).

By signing this declaration, I declare that:• The verification and validation has been carried out in full compliance

with the requirements of Regulation (EC) No 1221/2009,• The outcome of the verification and validation confirms that there is

no evidence of non-compliance with applicable legal requirements relating to the environment,

• The data and information of the environmental statement reflect a reliable, credible and correct image of all the sites activities, within the scope mentioned in the environmental statement.

Environmental statement verification

Signed:Carl Rogers

Date: 11 November 2016Bureau Veritas Certification, United Kingdom, UK.V.0003

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CELSA Manufacturing (UK) Limited, Building 58, East Moors Road, Cardiff CF24 5NN

Tel: 02920 [email protected]

For CELSA GROUP information please visit www.celsagroup.com