Corporate Social Responsibility

Corporate Social Responsibility ("CSR")

We aim to provide excellent service to our customers, to provide a safe working environment for our employees and to create sustainable communities through long term investment.

The Company has been a member of the Kempen/SNS Smaller Europe Index since October 2003, membership being available only to companies with the very highest standards and practice in the three areas of business ethics, human resources and the environment. The Company is also a constituent member of the FTSE 4 Good Index.


HEALTH AND SAFETY

The health and safety of our employees and also visitors, contractors and members of the public who visit our places of business is of the utmost importance to us. Our safety culture is underpinned by the application of five strategic safety drivers: Simplification of safe systems of work, Education in safe working techniques for every employee, Engineering safety into our equipment and processes, Engagement on safety issues with all employees and Enforcement of safe systems of work through monitoring and audit.

A Group Strategic Health and Safety Plan for 2008-2010 aligned with the guidance contained in the Institute of Directors/Health and Safety Executive document “Leading Health and Safety at Work” was originally presented to the Board in October 2007 and is reviewed by the Directors and senior management at regular intervals for progress against the plan and targets achieved to date.

Group Accident/Incident Statistics

2009 versus 2008 Performance
  • 12% reduction in all accidents

  • 13% reduction in RIDDOR1 reportable accidents/incidents
1 Reporting of Injuries, Diseases and Dangerous Occurrence Regulations 1995 (“RIDDOR”)

Group - Year to Year Comparison - 2009 v 2008
 20092008% change
All RIDDOR Injuries/Incidents2630-13%
All Accidents105119-12%


The Group set a minimum target of overall reduction in accidents of 5% in 2009. This target was exceeded.

Trend Analysis 2003 – 2009 - (Includes Nordic from 2007 onwards)
  • 52% reduction in all accidents

  • 46% reduction in RIDDOR reportable accidents/incidents


Group - Year to Year Comparison - 2009 v 2003
 20092003% change
All RIDDOR Injuries/Incidents2648-46%
All Accidents105217-52%


Scottish Port Operations

The “Safety First For Forth” initiative, which focuses on behavioural safety, saw the launch of the safety awareness campaign of “We’re All On Board”. Employees were invited to have their photo placed on a site board depicting a ship to demonstrate their commitment to safety. The behavioural safety committee continues to meet providing input and guidance to the ports safety initiatives and campaigns.

Scottish Ports was part of the Group-wide implementation of the Internet based Control Of Substances Hazardous to Health (COSHH) management system called SYPOL CMS. This allows users to access up to the minute information on potentially harmful substances and to download COSHH risk assessments to allow the materials to be managed and used safely.

The Annual Health and Safety Forum took place in March 2009. Over 80 people attended including staff and health and safety representatives from across Scottish Ports. The Health and Safety Executive attended to support the event and gave a presentation on the role of the Regulator. The Head of Safety of Ports Skills and Safety was also in attendance. Staff representing each of the Scottish Ports delivered presentations on progress in a number of port safety improvement projects.

Port of Tilbury

The port launched the “Safety First for Tilbury” behavioural safety campaign in 2009. The campaign will be supported by a number of local safety initiatives to further engage our employees in improving safety across the Port operations. The progress of the campaign will be reviewed at the quarterly Strategic Health and Safety Meetings chaired by the Managing Director, Port of Tilbury.

The annual safety, health and environment forum took place in March 2009 and was attended by over 70 staff and safety representatives from the port. The event focused on sustainable improvement in health and safety performance and monitoring in partnership with the trade union health and safety representatives. Staff gave presentations on the progress being made in delivering safety and environmental objectives and the session was very interactive with engagement from all employees on ideas to further improve safety. The Head of Port Skills and Safety gave a presentation and the event closed with a keynote address by the Managing Director, Port of Tilbury.

Port of Tilbury and Unite signed a Safety Partnership Agreement for 2008-09. This document committed both parties to further improving safety standards and reducing accident rates by delivery of a series of objectives and initiatives including the key objectives of the industry wide Safer Ports Initiative 2.

An electronic integrated safety, environmental and quality management system was created at the port of Tilbury during 2009 enabling integration of key safety, quality and environmental processes. The system has been successfully audited to ISO 14001, ISO 9001 and OHSAS 18001 standards. The Port also implemented the SYPOL CMS management system.

Nordic Group

The integration of the Nordic Group into Forth Ports safety management system continues with the implementation of worker involvement in safety committees, audit and inspection programmes, fire management training, accident investigation training and engineering modifications to equipment to enhance safety.

A programme of safety committee meetings involving management, supervisors and employees was established in 2009 and has proved successful in driving safety initiatives within Nordic.


The “Safety First for Nordic” behavioural safety campaign was launched in 2009 and aligns Nordic with the rest of the Group in participating in our flagship safety campaign.

Nordic employees attended the annual safety forum held at Port of Tilbury in March 2009.

Nordic continue to support the Confederation of Paper Industries Bale Clamp Project in developing a modified “batwing” clamp for forklift trucks to further improve the safe movement of paper bales.

Property

During 2009 there were no Health and Safety incidents reportable by our principal contractor to the HSE under RIDDOR on any of our property development sites.

The overall number of accidents on all property development sites for the 2009 reporting period was 1 minor accident. The total accident figure from 2005 – 2009 was 5 (all minor and non-reportable) for all construction project works. This gave an accident frequency rate of 0.69 per 100,000 hours. This compares with an estimated construction sector average of reportable accidents of 1.9 per 100,000 hours.

Throughout 2009 the property group continued to promote Continuing Professional Development (“CPD”) for all staff by hosting a series of presentations and workshops.

Industry Engagement

Forth Ports PLC continues to be involved in all of the core activities of Port Skills and Safety, the industry body charged with promoting high standards of health and safety and skills competence. The Managing Director, Port of Tilbury continues to be a member of the PSS Management Board and Forth Ports is represented at the Port Safety Steering Group meetings where Health and Safety managers from across the ports industry meet and share best practice.

The Group continues to progress the safety and training objectives detailed in the industry wide Safer Ports 2 Initiative and fully supports the regional events organised to promote the initiative throughout the industry.

Forth Ports works actively with the Health and Safety Executive in improving safety standards within the ports industry and have facilitated familiarisation visits for HSE staff new to the ports industry both in Tilbury and the Scottish Ports.

The Group Health and Safety Manager sits on the Ports Skills and Safety Editorial Panel which is reviewing the Health and Safety Guidance Notes being developed by the industry in conjunction with the Health and Safety Executive. This panel comprises senior safety managers from the ports industry, Unite and the HSE.

Audit

The Group continues to use a hierarchical system of internal and external process safety audits to measure, monitor and demonstrate compliance with all relevant health and safety legislation and internal safety management procedures.

A revised programme of internal audits conducted by the Health and Safety departments were introduced across the Group in 2009. This programme is process based and audits safe systems of work in their entirety from the documentation of the processes through to the implementation and training of the safe systems of work to the employees carrying out the work activity.

The Group Chief Executive and the Managing Director, Port of Tilbury along with the senior management team continue to carry out safety tours at regular intervals to promote safe working practices and engage with employees on safety related issues.

A combined British Safety Council 5 Star and OHSAS 18001:2007 audit took place in January and February 2010 with a single BSC auditor auditing Scottish Ports and Tilbury over a period of 8 days. We are pleased to confirm that both Scottish Ports and Port of Tilbury have maintained 5 Star status and in addition have achieved the OHSAS 18001:2007 safety standard.

Nordic Recycling were externally audited by the British Standards Institute in 2009 and also achieved Safety Standard OHSAS 18001:2007. Subsequently Nordic were successful in achieving the Integrated Management Standard PAS99 for Safety, Quality and Environment management systems following an audit by the BSI in December 2009.

Health and Safety Training

An extensive programme of in-house training was delivered in 2009 with courses in subjects such as Lift Supervisor, Hazard Identification, Risk Assessment and Accident Investigation. In total 187 courses run during 2009 across the Group were entirely related to health and safety matters.


EMPLOYEES

Industrial Relations and Manpower


The group headcount decreased during the year by 43. At the end of the year the employee headcount figures were as follows:-

 20092008
   
Scottish Operation487504
Tilbury Group513547
Nordic Group125117
TOTAL1,1251,168


Good industrial relations are important to our business and there have been no days lost due to industrial disputes since 1989.

Employee Involvement

The seventh Group Wide Information and Consultation Forum took place during 2009. This Forum allows for matters of mutual interest to be discussed. The Forum is augmented by Local Communication Forums and regular meetings with recognised Trade Unions.

Training and Development

The Company remains committed to training for employees at all levels. During 2009, 131 employees achieved certificates or qualifications. These included NVQs at Levels 2/3, Higher National Certificates, IOSH Managing Safely, Higher National Certificates and Diploma in Port Management.

During 2009 the Executive Directors and all members of the senior management team took part in a leadership development programme led by the Centre for High Performance Development, a specialist management development consultancy. This is an on-going programme which will continue in 2010.

As well as leading internal programmes the Training Departments within the Scottish Operation and Tilbury continue to provide their expertise externally in supporting local schools, colleges, universities and government agencies.


ENVIRONMENT AND SUSTAINABILITY

Our Commitment to the Environment and Sustainability


As a responsible company we strive continuously to minimise our impact on the environment and operate efficiently; in doing so, the Group can also play its part in assisting the Governments of the UK and Scotland to achieve their ambitious climate change targets. Across the Group, the main potential environmental impacts are:
  • Climate change – from the combustion of fuels and the purchasing of energy.

  • Air quality – emissions from plant and the potential for dust from certain commodities. Dust suppression systems are utilised for potentially dusty commodities such as coal and cement

  • Water pollution – any oil or chemical spill associated with our activities or one of the vessels calling at our facilities could impact on water quality. We invest time and effort in ensuring contingency plans are up to date and exercised regularly

  • Conservation – all of our facilities are near to sites that have national or international level conservation designations. We engage with national organisations and local stakeholders to keep up to date with any potential impacts on these sites

  • Waste – we recycle as much as practicable
Environmental aspects, impacts and performance are dealt with via the appropriate senior management committees - in Scottish Ports at the Senior Management monthly review meetings, in Tilbury, Nordic and the Marine Divisions through the dedicated Environmental Management System Committees. This was enhanced in 2009 by the establishment of the Environment Integration Committee.

Climate Change

Climate change is a key issue for both the UK and Scottish Governments. Where relevant to our business, we aim to work with government in the development of new legislation either directly or through the UK Major Ports Group. During 2009, our legislative focus has been on the Carbon Reduction Commitment (“CRC”), the Water Framework Directive, the Scottish and UK Marine Bills and Climate Change Acts. During 2010, we anticipate our focus will remain on the CRC, the Marine Strategy Framework Directive and the implementation of the new UK and Scottish Marine legislation.

Previously we reported on the Climate Change Impact Assessments undertaken across the Group during 2007 and 2008. No further external assessments were undertaken during 2009. However, from internal analysis our carbon leverage remains in excess of 10:1 - we continue to save more than ten times the carbon that we emit as a Group through enabling the movement of goods by sea rather than on land. Indeed, the main divisions of our business deliver carbon savings, whether through the provision of port infrastructure and services to allow freight to move by sea, provision of recycling services and the development of renewable energy opportunities both through Forth Energy and as part of our sustainable approach to regeneration.

In our ports business, we provide rail opportunities in Grangemouth, Leith and Tilbury. At Tilbury we also provide facilities for movement of goods by barge. The provision of these services allows for a more carbon efficient method of moving goods to and or from our facilities than the traditional method of road transport.

We anticipate that the CRC will become law in the first half of 2010. The draft Order implementing this carbon cap and trade scheme currently makes landlords responsible for the carbon emissions of their tenants, where the tenants receive the electricity from their landlord. Until the draft Order is in final form we cannot quantify the impact on our business.

Renewable Energy and Resource Efficiency

The Ports, Marine Division and Nordic have all been working on resource efficiency. There is a variety of projects across the Group.

Through Forth Energy, our joint venture with SSE, we have a number of renewable energy projects progressing through the consenting process including four biomass plants and two wind projects in our Scottish Ports. We also continue to examine options for district heating for The Harbour development.

At Tilbury we have secured planning consent for four wind turbines, and we have entered into an agreement with SSE to develop the turbines and supply the port with all of the renewable energy generated. The turbines are anticipated to be operational in early 2011. Tilbury Green Power has permission for the construction of a 60MW biomass power station on the port estate, with an estimated 82.7% of carbon savings relative to conventional generation by coal or gas and disposal of waste to landfill. The UK climate change programme requires the energy sector to reduce CO2 emissions by up to 25% between 1990 and 2010 and 30% between 1990 and 2020. The saving from the Tilbury Green Power plant will contribute to this overall national reduction target. 70% of the raw material for the plant will arrive by sea. Construction work on this new facility will commence in the latter part of 2010.

Natural Environment

New legislation for the marine environment is being introduced in both England and Scotland. This will change the capital dredge disposal consenting regimes. The exact impact of this has not been quantified and we are working with the Scottish Government in relation to the draft regulations. The legislation introduces new networks of Marine Conservation Zones in English waters and Marine Protected Areas in Scottish waters. It is too early to know where these may be, or what, if any, the potential impacts could be to vessels calling at our ports. Aside from these forthcoming conservation designations, during 2009 a number of the islands in the Firth of Forth previously designated as Special Protection Areas for their bird interest had their protected areas extended to cover the waters adjacent to the islands. To date this has had no impact on our operations.

As statutory harbour authority for the Forth and the Tay environmental management forms part of our duties. We continue to be members of, and, engage with, the local conservation groups and stakeholders. Our Ph.D. student at Glasgow University has begun her second year studying the Common Tern colony in Leith Docks.

Forth Ports has statutory duties in relation to maintenance dredging. During 2009 our dredging volumes were around 10% lower than 2008, but broadly the same as the volumes for 2007. The dredging activity remains the same, but the rate of siltation was not as high as in 2008. In the Port of Tilbury we are currently examining various options for the disposal of silt which accumulates in the impounded dock.

Pollution Avoidance and Control

The annual testing of the ‘Clearwater Forth’ oil spill contingency plan took place in October. The exercise was titled ‘Black Beach’ and simulated a spill of fuel oil following a collision between a coastal tanker and a dredger in the approaches to Grangemouth. Participants in this year’s exercise included: Falkirk Council, BP, Targe Towing, UK Dredging, Marine Scotland, Scottish Natural Heritage, Scottish Environment Protection Agency and the Maritime and Coastguard Agency - Counter Pollution and Coastguard. In addition, where each of the ports has an individual plan, these were exercised within the agreed schedules. These exercises have included land based as well as marine scenarios. During 2010 we intend undertaking some minor revisions to the Port of Tilbury Oil Spill Contingency Plan and progressing with further exercises to test the revisions.

Waste Management

We have recycling facilities across all Group premises. Rates of recycling are in line with previous years and in some areas have increased slightly. Rates of contamination in our segregated waste facilities have reduced, with particularly impressive improvements in Tilbury. Investment in a new glass cleaning facility at NRL and changes to the metal sorting process have delivered benefits resulting in a significant reduction of end of Materials Recycling Facility (“MRF”) waste and improved recyclate quality. The waste services division of Nordic has been working with customers to improve their recycling figures. For many customers, in excess of 75% of collected waste is now recycled.

Environmental Management

During 2009 all asset areas in the Port of Tilbury were re-certified to the ISO14001:2004 standard and the ISO14001 systems in Nordic and the Marine Division in Scotland retained their certification. We are particularly proud that in the Marine Department, there were no observations, improvement points or non-conformities raised in the two surveillance audits through the year. During 2010, we aim to continue the work building ISO14001 compliant management systems in the Scottish Ports.

Security

After five years of implementation, the ISPS systems in our ports continue to work well under the guidance and direction of the Department for Transport. The EU Port Security Directive has now been implemented as part of UK law and we await the draft regulations which will be made.

Community Responsibility, Education and Involvement

The Port of Tilbury leads a consortium of Universities and FE Colleges which manages the Regional Logistics Academy, East of England. In line with the Government’s aim of raising skill levels within the region, the Academy provides a one stop shop for logistics skills development, as well as working with a range of private and public sector organisations in support of wider funded and non funded regional skills initiatives.

As signatories to the Government’s National Skills Pledge, the Port of Tilbury works closely with the Learning Skills Council as a member of the Essex Skills Pledge Club in helping to raise awareness of skills education amongst employers and supporting the drive to raise skill levels throughout the region. The port also works with Thurrock Council through the Thurrock Learning Partnership and the Thurrock Workforce Development Groups. Other projects have included the Thurrock 14-19 Strategic Partnership, a Council-sponsored project to encourage employer support for schools in delivering the Government’s new 14-19 Diploma.

We continue to fund two Ph.D.’s; one at Dundee University, examining relative sea level changes at our ports in Scotland and the other at Glasgow University examining the ecology of the Common Tern colony at Leith Docks.

In 2009 Scottish Ports sponsored a new educational syllabus at Grangemouth High School and have been involved in a challenge day examining international trade. We have also participated in interview skills development events. In Tilbury we continue our extensive engagement with 11 local primary and secondary schools in the Thurrock area, with interview skills, career fairs and work placements. Tilbury also supports the Trident Work Experience Programme for school pupils.

As in previous years, the Cruise Terminal at Tilbury has hosted a number of local school events. Amongst other events, the Terminal also hosted an event and lunch for the Women’s International Shipping and Trading Association, who held their annual conference in London and the ‘Turf Cutting’ reception for the commencement of construction of the new set building and rehearsal facilities of the Royal Opera House.

This year has seen a number of local community and charitable organisations holding events at our ports. For the second year running the Spirit of Fairbridge berthed at Prince of Wales Dock, Leith. The Fairbridge charity undertakes work with underprivileged children in the community. We also hosted the Zapcats National Championship, the world’s largest one design power boat Championship at Western Harbour in front of Ocean Terminal in August which attracted over 40,000 spectators. In the same month Edinburgh Inspiring Capital, the Edinburgh entry in the Clipper 09-10 Round the World Yacht Race, was berthed alongside the Royal Yacht Britannia for a week.

The annual Charity football match between Tilbury and Scottish ports was held this year at Tilbury Football Club. The match raised over £2,000. The beneficiaries are chosen by the port staff hosting the event. In Scotland, £5,000 was donated to a variety of charities by the Health and Safety Committees and the senior management team. The beneficiaries included Help for Heroes, Sick Kids Friends Foundation, MacMillan Nurses, Strathcarron Hospice and Mission to Seafarers amongst others.

Management Involvement
  • Charles Hammond, Group Chief Executive, is a member of the Scottish Government Energy Advisory Board

  • Perry Glading, the Managing Director, Port of Tilbury, is a senior member of the Management Committee of Port Skills and Safety and a Director of Skills for Logistics

  • Morag McNeill, the Group Company Secretary, is a Director of the Court of The Edinburgh Academy

  • Bob Baker, the Chief Harbour Master, is a member of the Executive Council of the UK Harbour Masters Association, a member of the Executive of the British Tug Owners Association, a member of the Expert Panel set up by port industry to review National Occupational Standards and Certificates of Competency for Harbour Masters and Trustee of the Pilots National Pension Fund

  • Derek McGlashan, the Environment Manager, is a Director of the Forth Estuary Forum, is Chair of the joint UK Major Ports Group and British Ports Association Environment Policy Group and represents the UK Major Ports Group on the Scottish Government’s Marine Strategy Forum

  • Frank Monaghan, the Group Safety Manager, sits on the Editorial Panel of Port Skills and Safety. This group oversees and issues the Health and Safety guidance notes issues in conjunction with the Health and Safety Executive

  • Michaela Sullivan, the Head of Planning, undertook her final year as an external examiner on the Master of Urban and Regional Planning at Heriot Watt University during 2009

  • Mark Tonge, the Operations and Resource Director, Port of Tilbury, is a member of Cranfield University Agile Supply Chain Research Group

  • Bob Cowan, the Group Financial Accountant, is a member of the Audit Committee of Mercy Corp Scotland, an International Aid and Development Charity that exists to alleviate suffering, poverty and oppression by helping people to build secure, productive and just communities

  • Simon Harper, Training and Development Manager, Port of Tilbury, sits on the Board of Governors at Havering College of Further & Higher Education and is the port’s representative as Trustee of two local schools
As at 22nd March 2010