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• Introduction
• The PZ Cussons Plc CSR Committee
• The Environment
• Health and Safety
• Development of staff & employment practices
• Local community and charitable activities
• Product safety and design
• Animal testing
• Everyday, good quality, affordable products
• Financial Performance

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The Environment

We take due account of the potential environmental impact of the Group's operations across the world and we are committed to protecting the environment, for the benefit of our employees and the wider community.

We believe that the identification, effective control and reduction of the environmental impact of business activities are integral elements of well-managed operations and we are committed to continuous measurement and improvement of environmental performance, through appropriate product design, the minimisation of waste, efficient use of resources, the prevention of pollution and the protection of the environment.

All PZ Cussons manufacturing facilities have ongoing energy reduction initiatives which reduce carbon dioxide output and limit the potentially damaging effects of climate change. The Group also continues to benefit from previous initiatives such as gas powered self-generation of electricity in Nigeria which significantly reduces greenhouse gas emissions. The carbon footprint of each operation is now routinely monitored and reported using internationally recognised protocols. The Group is also a participant in the Carbon Disclosure Project (the CDP is an independent not-for-profit organisation which holds one of the largest databases of corporate climate change information in the world and is considered the gold standard for carbon disclosure methodology and process).

We will:

• develop, implement and maintain effective procedures in order to set and review environmental objectives and targets;
• continue to review innovative approaches to reducing environmental impact from our products and processes;
• continue to minimise the consumption of energy and water, as well as minimising the production of trade waste and waste to landfill, through efficient practices in the office, factory and warehouse environments;
• continue to ensure, as a minimum standard, compliance with all environmental laws and regulations; and
• communicate environmental policy to employees, contractors and interested parties in order to establish an environmentally responsible attitude within our organisation.

Throughout the year, we have undertaken a number of projects and initiatives in order to reduce the impact of the Group's operations on the environment. For example:

• in the UK, the Group's £26 million Personal Wash Centre of Excellence (locating liquids manufacturing, research and development and perfumery capability on one site) was completed in February and is a flagship for the Group in respect of environmentally sensitive manufacturing processes
• in February, PZ Cussons Australia successfully launched to the market new super-concentrate laundry powders resulting in significant reductions in the use of chemicals, plastics and packaging with total estimated savings over a twelve month period of:
  - over 12,000 tonnes of chemicals
  - approximately 850,000kg of cardboard
  - approximately 18,400kg of plastics
  (through reduction in scoop size)
• in Thailand we have implemented modifications to our soap manufacturing process which have significantly reduced steam consumption. Together with a series of other energy improvements, this has reduced energy consumption per tonne of soap manufactured by over 40%. This initiative is now being shared with other Group soap manufacturing units
• our business in Kenya continued its successful implementation of energy efficiency measures and for the third year running has gained an award from the Kenya Association of Manufacturers in recognition of its attainment of savings through optimisation of energy use within its manufacturing processes
• in Poland, we implemented a pallet utilisation project resulting in a 14% reduction in the number of vehicles required to transport products between the production facility and distribution centres with consequential reductions in the number of journeys, mileage and thus carbon emissions
• in the UK we have continued our packaging minimisation programme. In our Original Source range we have changed from plastic bottles to a pouch format for some shower products delivering a reduction of over 75% in packaging materials. For other products, we continue to substitute traditional plastics, such as polyethylene, with PET which is highly recyclable. PZ Cussons UK also became a member of Business in the Community, an organisation which works with all companies which make a commitment to social issues and responsible business practice. As part of this, the UK business participates in the Prince's May Day Network which is the UK's largest group of businesses committed to taking action on climate change
• in Nigeria, Project Unity, a £39 million investment in manufacturing and supply chain, is well under way and involves significant investment in plant and machinery to enable power generation from gas rather than oil resulting in a reduction in energy usage and the move to a greener fossil fuel.

The Group Risk Committee, which was established as a standing committee of the Board during the course of the year (and in respect of which further details are provided at page 49), ensures that any environmental risks which the Group may face are properly identified, assessed and prioritised and that appropriate arrangements are in place to manage and mitigate those risks effectively.